Big data software vendor Invigor Group has posted small signs of recovery after reducing its losses by six per cent for the full year ending 31 December 2018.
The Sydney-based company closed the year with a net loss after tax of $12.3 million, down from $13.1 at the end of 2017.
Although Invigor increased its revenue by 84 per cent to $3.4 million, it remained in the red due to higher operational costs of $5.1 million and liabilities of $9.8 million.
The company sold its Germany-based subsidiary Condat AG for $3.75 million last May. However, the amount came up as a loss of $3.7 million, including transaction costs, on the final balance sheet.
Further costs were accrued from a $1.5 million additional amortisation charge after reviewing its software’s life and “capitalised development intangible assets from five years to three years”.
Following the sale of Condat, Invigor set up a new company named Tillerstack, into which it transferred Condat’s workforce management division, Skyware.
On the final balance sheet, Tillerstack contributed $1.06 million in revenue, while Invigor’s core business, loyalty and pricing divisions generated $1.25 million, a 74 per cent rise from the previous figure of $721,000.
Looking ahead, the company said it had established a ‘major growth channel’ after signing a deal with Winning Group, a partner of Chinese internet giant Tencent, in September.
The deal will allow Invigor to distribute and expand Tencent’s messaging and payment app WeChat Pay in South East Asia, starting with Singapore, Hong Kong and Japan.
The company also pointed to its year-old co-sell deal with Microsoft, which includes the optimisation of Invigor shopper insights on Microsoft Azure, as enabling it to ‘tap into Microsoft’s wide network of customers and partners globally’.
“In 2018, we worked hard to significantly improve the company’s financial position by strengthening the balance sheet, growing revenue streams and broadening the contract base in our core loyalty and pricing business,” Invigor CEO Gary Cohen said.
“The technology underpinning our core operations has been the key catalyst to establish the Winning Group partnership with WeChat Pay and expanding our loyalty offering in Asia. This is a major opportunity for Invigor.”