ZOOM2U TECHNOLOGIES LIMITED For personal use only
For personal use only
onlyZoom2u Technologies Limited
ABN 23 636 364 246
useInterim Report for the half-year period ended 31 December 2021 personalFor
Zoom2u Technologies Limited
Directors' report
For the half-year period ended 31 December 2021
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity' or the "Group") consisting of Zoom2u Technologies Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021..
onlyDirectors
The following persons were directors of Zoom2u Technologies Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:
Drew Kelton (appointed 30 July 2021)
Steve Orenstein
Mike Rosenbaum (appointed 23 July 2021)
Michael Gayst (appointed 23 July 2021)
Terry Sinclair (resigned 26 July 2021)
usePrincipal activities
During the financial half-year, the principal continuing activities of the consolidated entity consisted of:
●
●
Review of operations
The loss after income tax expense for the consolidated entity for the half-year ended 31 December 2021 amounted to $1,767,512 (31 December 2020: profit after income tax $257,144).
A reconciliation of loss after income tax to Earnings Before Interest, Tax, Depreciation and Amortisation ('EBITDA') is set out bel w:
Consolidated
personal
Lo s after tax
Add: Finance costs
Add: Depreciation and amortization
L ss: Finance and interest income
EBITDA
Add: IPO costs
Normalised EBITDA
ForThe EBITDA for the consolidated entity for the half-year ended 31 December 2021 was a loss of $1,740,475. This was impacted by costs associated with the IPO of $418,134. Excluding these costs, EBITDA for the half-year ended 31 December 2021 was a loss of $1,322,341.
1
Zoom2u Technologies Limited
Directors' report
For the half-year period ended 31 December 2021
The Zoom2u business grew strongly during the half-year ended 31 December 2021, recording GMV1 of $10.9m, representing growth of 54% over the prior corresponding period ("pcp") when GMV of $7.0 million was reported. Growth in GMV was assisted by winning a number of new customers (including Telstra, Bing Lee, PwC, 99 Bikes and Best & Less) plus growing GMV from a number of existing customers.
onlyThe impact of the Coronavirus (COVID-19) pandemic up to 31 December 2021 has been financially positive for the Zoom2u business. Revenue has benefited as consumers have accelerated the trend towards on-line shopping driven by recent lock downs in Sydney and Melbourne and businesses have responded to changed operating conditions by promoting contactless delivery of products.
During the period, the consolidated entity invested significantly in growing the Locate2u sales team, with a head of sales and a number of new sales representatives commencing in the half-year ended 31 December 2021. This investment has included establishing a small sales team as a trial in India, which is showing encouraging early signs. A number of new enterprise customers were secured for the product in the period and sales revenue, whilst still small, is growing strongly. The Company
useis confident that sales from this product will continue to accelerate in future periods.
In December 2021, the Local Delivery Shopify App was acquired for cash consideration of $880,000 (including GST). Local Delivery allows e-commerce businesses, utilising the Shopify platform, to embed functionality to enable their customers to elect a desired delivery date and time into their check out process. The assets associated with the transaction include all intellectual property associated with Local Delivery, and existing customer relationships of approximately 570 e-commerce
b sinesses in over 45 countries.
Local Delivery has approximately 270 existing customers in North America, 50 in the United Kingdom and 60 in Australia / personalNew Zealand. Customers acquired via the transaction will aid in increasing penetration into the North American and United
Kingdom markets for Locate2u and provide additional sales leads for the Australian based Locate2u sales team.
The financial position of the consolidated entity was strengthened during the half year ended 31 December 2021 by the $8,000,000 (before costs) raised from the Company's Initial Public Offering in September 2021. As at 31 December 2021 the Company was in a sound financial position with $6,477,894 in cash (30 June 2021: $2,446,484) and no borrowings.
Significant changes in the state of affairs
On 8 July 2021, the shareholders of the Company passed a resolution to approve a share split on the basis that each hareholder would receive 128.7 shares for each share held (Share Split). Where a revised shareholding results in a fractional number of shares, it was to be rounded down to the closest whole number. The Share Split increased the
number of shares on issue from 906,498 to 116,666,278.
On 22 July 2021, the Company changed its status from a proprietary company to an unlisted public company and changed its name from Zoom2u Technologies Pty Ltd to Zoom2u Technologies Limited.
On 2 August 2021, the Company lodged a prospectus with ASIC in relation to a proposed Initial Public Offering of shares on the ASX. The Offer raised $8,000,000 from the issue of 40,000,000 new ordinary shares at a price of $0.20 per share. Settlement of the capital raising occurred on 6 September 2021 with shares commencing trading on the ASX on 11
ForSeptember 2021.
On 7 September 2021, convertible notes with a face value of approximately $2,500,000 were converted to ordinary shares at a price of $0.15 per share as all conditions for conversion had been satisfied. The conversion of these convertible notes resulted in 16,666,654 ordinary shares being issued.
On 9 December 2021, the Company announced the acquisition of the assets associated with the Local Delivery Shopify App for a cash consideration of A$880,000 (including GST), which was paid on completion of the transaction.
Other than the above, there were no other significant changes in the state of affairs of the consolidated entity during the financial half-year.
1 GMV - Gross Marketplace Value, representing the total price of all Deliveries completed through the Platform after cancellations, inclusive of fees paid by
Customers to Zoom2u, but excludes any applicable GST
2
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Zoom2u Technologies Ltd. published this content on 22 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 February 2022 22:57:56 UTC.
