iCar Asia Ltd (ASX:ICQ) has achieved record quarterly cash receipts of $4.2 million for Q4 2019, up $1.2 million or 39% compared to Q4 2018.
Headquartered in Kuala Lumpur, Malaysia, the company is focused on developing and operating automotive portals in Malaysia, Indonesia and Thailand.
iCar Asia’s growth in Q4 was driven by strong cash collections in all business units including Used Car and New Car across all three countries.
Full-year net operating cash flow improved by 37%
Strong cash receipts growth and lower expenditure led to a significant decrease in net operating cash flow by 25% over Q4 2018 and 37% on an annual basis versus 2018.
This is a result of iCar Asia’s operations in Malaysia and Thailand now consistently being positive cash contributors, Indonesia halving its net cash outflow and corporate costs remaining stable versus 2018.
Carmudi Indonesia acquisition
The company completed the acquisition of Carmudi Indonesia in late 2019.
The combined Indonesian business is expected to more than double iCar Asia’s Indonesian revenues, increasing the overall contribution of Indonesia to the group’s revenues from about 12% to 22%.
Importantly, the identified synergies are expected to result in the combined Indonesian businesses breaking even in 2020.
Outlook for 2020
Following the group reaching EBITDA breakeven in November 2019, the outlook for 2020 remains very positive.
iCar Asia is on track to have a strong year with revenue currently expected to grow by 50% or more on a year to year basis.
Based on this current outlook, the group is expected to become cash-flow positive in the second half of 2020 as per its previous guidance and be EBITDA positive in aggregate for the entire year.
Big plans for 2020
iCar Asia CEO Hamish Stone said: “The year of 2019 was a highly successful year for the Group as we achieved run rate EBITDA breakeven for the Group in November 2019, one month ahead of our guidance.
“With the acquisition of Carmudi Indonesia now completed, we look forward to an even more successful year in 2020 where we will leverage on our leadership positions in all 3 countries to further grow our business portfolio into greater profitability.”