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9 Spokes International highlights cost savings and upcoming V2 launch at AGM

The company has answered shareholders with a refocused vision founded on a nearer-term path to profitability.

three hands dropping coins into three jars
The company has grown revenue while removing $3 million in costs from the business

9 Spokes International Ltd (ASX:9SP) has told shareholders at its AGM that it continues to re-shape and re-prioritise its business to focus on profitability.

The company provided an estimate for its June quarter operating net cash burn which is down to between $1.1 and $1.3 million.

Notably, the reduction in cash burn has been achieved while cash receipts are growing.

With solid progress made on taking costs out of the business, 9 Spokes now sees revenue growth as the operational lever that will progress it towards break-even status.

The company’s second key strategic objective remains launching its next-generation platform called V2.

The new V2 platform aims to deliver improved speed and flexibility in connecting new apps and customers.

Following the launch, 9 Spokes plans to progressively move towards an open platform, enabling third party developers, including app partners and banking partners, to integrate into V2 further driving eco-system engagement.

The objective is to own the development of the core platform whilst opening up the interaction layer to drive greater scale and innovation.

Other priorities for the company after profitability, and the V2 launch include strengthening its distribution channels and securing entry into the US market.

9 Spokes’ co-founder and CEO Adrian Grant said: “I am confident that once V2 is launched, and you see increasing evidence of our business and partnership development efforts, our ability to deliver against our stated objectives will be clearly demonstrated.”

READ: 9 Spokes clears path to pursue new global banking opportunities

9 Spokes’ chairman Paul Reynolds said: “We made good progress by increasing revenues and developing new account relationships with banks around the world while very significantly reducing our monthly cash burn.

“Re-structuring on this scale is painful but the overall result has been to take a large step towards our ultimate goal of profitability.

“There’s no doubt that this made 2019 the most demanding year yet for our young company.”

Proactive caught up with 9 Spokes in May 2019 for an update.

Quick facts: 9 Spokes International Ltd

Price: 0.017 AUD

ASX:9SP
Market: ASX
Market Cap: $16.13 m
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