MOQ sees revenue stagnation after "transitionary" 2017

MOQ sees revenue stagnation after "transitionary" 2017

The publicly-listed provider refocuses on business development and client engagement

MOQ Limited (ASX:MOQ) net profit after tax dropped 55.8 per cent for the first half of the 2018 financial year posting $382,644, according to latest financials, released on 28 February.

In the last previous corresponding period the company had posted a 929 per cent increase in NPAT, with $862,610.

MOQ’s revenue showed stagnation, as it revealed a 1.5 per cent decrease in 1H18, as opposed to a 75 per cent increase experienced in same period the previous year. Total revenue for the first half of 2018 was 28.9 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were down 36.2 per cent to $997,268.

"During the H1 FY18 reporting period, MOQ Limited moved into a period of refocus on business development and client engagement after a transitionary FY17, which had provided mixed results with H1 FY17 featuring some major success and then H2 FY17 dominated by the integration and restructuring effort resulting from the Tetran acquisition," the company told shareholders. 

A change in the latest financials from previous results was seen in the MOQdigital business, a subsidiary of MOQ Limited, with the New South Wales business for the first time being responsible for the majority of new business won in December 2017.

"For MOQdigital, H1 FY18 represents a period where business stability and positive momentum was re-established and this groundwork started to reflect in the financial results and a growing market presence," the company told shareholders on 28 February.

MOQ was born out of the merger between Technology Effect and Breeze linting with the Australian Securities Exchange in June 2015 as Montech Holdings.

MOQ closed the 2017 financial year with a 62 per cent year-on-year increase in revenue, to $54.9 million. However, after costs, the company posted net profit after tax (NPAT) of $100,976. It should be noted that this result was a substantial turnaround from the previous year’s NPAT loss of $534,604.

At the time, it was also revealed that the company spent more than $1 million on integration and restructuring costs during the financial year ending June, following its acquisitions of Tetran Group and SkoolBag last year.

In October, the company revealed two new partnerships with software-as-a-service (SaaS) vendors Literatu and Unit4.

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