RC365 Holding PLC (LSE:RCGH) saw a near threefold increase in top-line revenues in its half-year ending September 30, 2022, boosted by the two key acquisitions of Hong Kong-based RCPAY Limited and Singapore-based Regal Crown Technology.
The company reported revenues of HK$7.9mln (£840,000) for the six-month period, against HK$2.7mln in the 2021 half-year (H1 2021).
But with the cost of sales coming in at HK$5.5mln, pre-tax losses for the period stretched to HK$3mln (or -2.28 cents per share) compared to HK$501,000 in H1 2021.
RC365 had a cash balance at the end of the period of HK$16.6mln following HK$6mln in outflows associated with the two acquisitions. The company’s cash position is still a 46% improvement year on year.
Post-period end, the company highlighted completion of the acquisition of RCPay UK, as well as opportunities to enter into a cooperation agreement with a leading Hong Kong-based software and application development firm.
“These acquisitions offer an abundance of growth opportunities for the group by expanding the presence in Hong Kong, Singapore, UK and other ASEAN countries and offering local and cross-border payment solutions to existing and potential clients located in those regions,” said the company in the results statement.