logo-loader
Tech
CML Group Ltd

CML Group enters ASX trading halt pending capital raising

The company is growing rapidly and only has 15% market share.

concept of growth with money in jars and growing plant
Shares have run from $0.20 to $0.50 over the past 12 months

CML Group Ltd (ASX:CGR) has been granted an ASX trading halt pending the release of details regarding a capital raising.

Industry sources suggest the company is looking to raise up to $13 million in new funding through a share placement.

CML Group’s core business is invoice factoring or debtor finance.

What this means is that it provides its clients with access to cash while they are waiting for their clients to pay invoices.

The company charges an admin fee of around 1.2% of the total invoice amount and interest on the invoices funded at around 10% per annum.

Risen to #2 in the space through growth

The company has established itself as the clear number two in the non-bank invoice factoring business in Australia.

This is a result of strong organic growth and the acquisition of three competitors within 2.5 years.

The recent acquisition of Thorn Group’s (ASX:TGA) trade and debtor finance division further strengthens this position.

On track to exceed $1.1 billion in invoice turnover

Invoice turnover for FY17 exceeded $1 billion, representing 15% market share and this is tracking to exceed $1.1 billion in FY18.

The company has guided FY18 EBITDA to over $15.5 million, which does not include the recent Thorn Group acquisition.

Quick facts: CML Group Ltd

Price: $0.49

Market: ASX
Market Cap: $98.68 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Altech Chemicals progresses HPA plant construction in...

Altech Chemicals Ltd (ASX:ATC) managing director Iggy Tan updates Proactive on HPA plant construction activities at the company’s high purity alumina (HPA) plant site in Johor, Malaysia. The majority of Stage 1 construction is nearly complete, the workshop building and OSD Tank walls have...

8 hours, 36 minutes ago

2 min read