Spenda Limited

Okay. Thanks, everybody, for joining us today. We've got Corey Hassan, the current CEO of SpendEther today, and Karim Razak, the exec chairman, joining us to give us an update on the March or Q3 quarterly. I'm going to hand over to Corey to take us through that quarterly by this presentation. We'll be doing the Q&A at the end of the presentation. We've had quite a few questions, so we'll be covering, as mentioned, the pre-submitted questions. But, Corrie, over to you. Thanks.

Thanks, Rich. Hi, everyone. So, thank you for joining today. Firstly, a huge apology for postponing yesterday. It's not something that we really wanted to do, but as you may have seen this morning, there has been a major transaction that's just been finalized and it was really important for that announcement to go out so that we could talk to that today and sort of take you through what's happened there. I'll talk a little bit more about that during the presentation. So I'll just kick off by giving a brief update for the last quarter. I feel like we've reached a real inflection point now as a business. We're operating fundamentally at a higher speed. We're starting to transition more into a high-intensity sales and marketing execution model, and it's definitely a big jump, which is really good to see. That was the plan, and we're heading in the right direction. Cost savings have remained a firm focus. So we finished the quarter at 4.3 mil per annum. Last quarter was 3.85. So another jump in cost savings, which is great, as at the end of March. Strategy remains consistent and clear. I tend to just always show this slide to reiterate the strategy whenever I can, just to ensure that everyone is very clear on our products and they can see that we are remaining focused. and consistent on our core strategy, which is spender pay, spender retail, and spender ledger. We have a quick look at the quarterly results. So payment volumes, they were up compared to the comparable quarter last year. However, they were down compared to the previous quarter. That simply is seasonality. January is a pretty flat month for most industries, as you know. So just analysing those three months, Jan, Feb, March, most of all of the downturn is in Jan and then it bounced back February and March as expected. So this will just return to normal and the growth should continue for this next quarter. And same for the cash receipts. They were down about 13% from last quarter on. But again, that full 13% was equated to January. So back to normal for this next quarter, and we should continue to see that positive trend continue to grow. So dipping into our product, where are we now? So Spender Pay, we delivered that this quarter, which was really exciting. So that's the new combined Swiss statement and spender pay offering, and that's been received really positively in the market. As I explained at the previous quarter, the first cab off the rank was to start converting existing Capricorn members using Swiss statements. So this quarter saw that trial roll up to that first charge, and we had a really strong uptake. We went out with 50 customs to start with, And we are continuing to scale these numbers over the next quarter. So at about 50%, 90% upgrade and 30% are starting to transact, which is really positive. So now we've sort of proven that we can start to scale quicker for this next quarter and already I'm seeing those numbers escalate. Yes, as I mentioned, we have now really validated and concluded the validation. So our marketing team are starting to activate the planned automated comms, the conversion-led landing pages, and starting to drive that volume. So you can see in this slide the existing opportunity just with our Cornerstone customer here, 1.5 mil per month. And then on to the bigger SME market. Obviously, there's a lot of opportunity there. Again, in the background, our marketing team are also working on a structured growth engine ready to deploy when SpenderPay is ready to expand beyond our immediate customer to the next stage. And that's when we really expect to see that the numbers hardly stick from there. Spender retail. Momentum is finally starting to happen here. I've been analysing why it was going a little slower than I was hoping, but it's a real large enterprise-grade product. So engagements with each new store does tend to surface additional requirements that ultimately strengthen the solution and ensure it will scale effectively across the network. But it does mean it's more of a discovery-led approach in the early rollout phase, and then it starts to sort of gain momentum once you've sort of started to deal with 10, 15, 20 stores and you've captured all of those requirements, which I'm finding now are starting to come to fruition. So we've got a pretty good blueprint now on all of the requirements for that product and it's now starting to gain the momentum that we were hoping for, which is exciting. This month we are attending the Carthage Court Conference. That happens every two years and we do expect to see a big uplift on the back of that conference. We've got a good team going over and pretty much every single member does attend that conference every two years. So hopefully we will see some acceleration on the back of that. We are seeing some leads come in naturally now from other verticals. So that is something that we are now starting to expand and our sales team are starting to look at the next vertical that we can start to work with. Okay, so most of you will have seen this morning's announcements. So we have been working on a transaction that's a really great outcome both for Spender and for APG. So I guess this transaction is the completion of a broader strategic reset and it brings a further massive 45% cost reduction across the whole business. So that would leave us with $7 million per annum cost savings. It moves us into more of a licensing type of arrangement, which is a much more efficient structure for Spender at this stage. So if we break down what the transaction is, it's simply a sale of a non-core piece of Spender technology that's been sold to APG. The team that are running that technology are also moving over to APG. It means there'll be a cash injection into the business of 1.8 billion, which will obviously assist spenders' cash flow in the near term. And it also means an immediate staff and infrastructure saving of 2.7 million per annum. All staff entitlements or exit costs around the transaction are covered by APG, so that 1.8 million is the amount that remains in the business and can be utilised for spenders' cash flow. So along with that transaction, I will be exiting Spender very soon. It's just being finalised now, but it's highly likely that I will also be moving over to APC to focus on lending. So lending does remain a huge important part of Spender's strategy, as I've talked about in the past. So I will continue to work very closely with Karim. Spender is a major partner of APG. There's a very close relationship there. So as part of this transaction, Spender will deliver the APG supply chain lending product to its customers via Spender Pay. So it's a really good fit for both parties. So my background, as you know, is 30 years in lending. So this is a really good fit for me and my operational experience. And now that Spender is moving into a high-intensity sales phase, Karim is probably a better place to lead Spender through to the next phase. Karim and I will continue to work really closely together as partners to drive business across both businesses. I would like to say, again, there is nothing weird going on here. This is a joint decision and a transaction that we're all very happy with and really makes sense for the future of Spender and for us. So, yeah, we are excited to have concluded this transaction so quickly. It's been a good process. Do you have anything to add here, Karim?

Thanks, Corey. No, probably just a quick thank you to Corey for taking over during a very difficult time for the company and a very critical and important time. And I think we all do have Corey to thank for this last period, getting the business to a point where I can come in and do the thing that I do best, which is scaling. But Corey has really brought the business to a point where it's capable of doing that. Thank you very much for that, Corey, and I think as a shareholder myself and all the shareholders do owe you that.