Software technology group 8common Ltd (ASX:8CO) has completed a small capital raising of $200,016 via placement of shares at $0.18 each.
The company is looking to capture a slice of the large travel and expense management market via its software as a service and cloud-based technology.
The funding from the placement will accelerate the sales growth and fulfilment capacity of the Expense8 business.
Expense8 is a software solution for organisations, providing them with the tools needed for employees to plan and book business trips; and reconcile travel and corporate expenses.
The company has won new Expense8 contracts in both the government and corporate sectors worth over $1.7 million during the first 9 months of FY2016.
Expense8’s government clients include Woolworths, the Federal Department of Finance, NSW Department of Education, NSW Police, and the Northern Territory Government.
Expense8 is continuing to build momentum with a 60.2% increase in monthly recurring revenues on a year-on-year basis for the quarter ended March 2016.
Significantly, a long term existing customer - the Federal Department of Treasury, is migrating to the Expense8 management platform.
The three year contract with the Federal Department of Treasury will provide a positive impact to 8common’s revenue to the next financial year and beyond.
The market may be overlooking steadily increasing monthly recurring income generated by 8common from its cloud-based delivery model as more and more customers are migrated at lower cost to the cloud.
This should result in more consistent cash flows. Cash receipts for the nine months to March 31, 2016 were $2.7 million which should, increase in 2016/17.
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