Vonex is actively pursuing acquisitions and has appointed independent finance firm Tor Corporate Advisory to formulate a strategy.
The publicly listed telco service provider said it has spotted attractive opportunities among sub-$10 million revenue targets.
Off the back of its 2SG Wholesale acquisition last year, Vonex said it is now able to integrate these types of companies into its operation.
As of 1 January, Vonex Wholesale and 2SG Wholesale will come together under the 2SG Wholesale banner, which recently gained a commitment from Optus for 5G network services.
In an update to shareholders, Vonex said its retail operations were continuing to expand with total contract value of new customer sales in the first 11 months of 2020 totalling $6.6 million, an increase of 32 per cent on the same time last year.
Vonex’s SME user numbers were also growing thanks to its partnership with Qantas Business Rewards and also has 42,000 registered active users on its PBX cloud-based phone service.
“Vonex continues to see a positive outlook for business development across its retail and wholesale divisions, having identified significant organic and inorganic growth opportunities,” the company said.
“There’s clearly an unmet need among Australian SMEs for telco services that are reliable, affordable, flexible, scalable and friendly to the ‘work from home’ paradigm. Vonex’s strong focus on product-market fit, efficiency and customer satisfaction strongly resonates with SME customers.”
The appointment comes months after the telco raised $1.4 million to put towards acquisitions and marketing initiatives.
During FY20 Vonex shrunk its net loss from $2.79 million last year to $596,000 in FY20, ending June 30.
Revenue grew 67 per cent, from $9.2 million to $15.4 million, while underlying earnings before tax returned to the black, to $25,237 from $454,332 in the red in FY19, and $4.8 million cash at bank. Annualised recurring revenue grew 89 per cent to $16.4 million.
In a letter to shareholders, Vonex non-executive chairman Nicholas Ong said its achievements during the year were incredible considering the challenges faced by many businesses in the wake of COVID-19, particularly highlighting its June quarter as its “best quarter since becoming a listed company.”