Forum Topics WRK WRK Financials

Pinned straw:

Last edited a month ago

After nearly a decade Wrkr is unexpectedly EBITDA positive

Was expecting to be breakeven. So this was an unexpected surprise even though 500K is not much.74927d46c26215fb6b7a8ed5a52fc68c300a0d.png

This result puts a new perspective on the upcoming SPP for retail for 500K with 6.6m placed already. Suddenly the raise looks "interesting" and appears to be reasonable in size to get resources for potential new business.

Not many shares for retail as well. Was planning to sit this one out but now have to pull out the booklet again.

With the above in mind, there are a number of things to consider

  • Strength of the moat. Wrkr platform is one of 9 gateway providers for the STN (Superannuation Transaction Network) under the name Suprestream that communicate with the ATO. In addition, their software is licensed to Precision administration under the name Beam https://www.gngb.com.au/list-of-gateway-operators-and-contacts/


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  • Need to see if Xero, MYOB etc provides the same functionality below which is being done with KPMG and Workday

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  • Growth of the Wrkr Pay business which is the clearinghouse for super transactions and compliance. Will ignore Wrkr ready and Benefits as they appear to have gone backward.

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  • Further reduction in cost to income ratio which has been declining for the last 2 years.
  • The large amount of work that may come from the MUFG and Link Group contract to get their customers onboarded (currently still in trial phase I believe)

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  • Other trails going on such as MUFG HK pension

.

CR presso

[held]

edgescape
a month ago

The fair value movement of embedded derivatives drove the EBITDA to positive territory

I'm holding off on taking my rights till I know more about this and putting a sell on Strawman as a result. Still will hold though as it's not much

Also appears there is some pushback from Xero and MYOB in implementing payday super for SMEs.

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edgescape
a month ago

Note 22 puts more colour on the fair value recognition of embedded derivatives which are the conversion notes. Therefore a one off

Not sure why this EBITDA news is being bought. Too lazy to go through the ann report? Anyway will view the numbers in a different light to make sure I haven't missed anything

Will also need to practice timing my sells better here.

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edgescape
a month ago

Think. I made an error selling out here in SRL (still hold in IRL)

Ignoring the EBITDA figure if those convertible notes did not exist then the NPAT loss will not be 3.8m but more like 2m. So they effectively halved the loss this year

Regards to forward outlook I believe there will be a bit of lumpiness in operating cash before there could be some return after 1 year.

With only 500k to retail this could be oversubscribed. Probably explains why share price went up to 3.7c so holders can get fully allocated?

However we haven't seen any announcements of the SPP closing early

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edgescape
a month ago

After crunching some numbers took up my SPP

Even though I expect it will be still a loss next year there shouldn't be much downside being 2.5c where the share price is 4c

Don't expect to get a full allocation.

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