Spenda Ltd delivered a transformative March quarter, underpinned by the sale of its invoice finance loan book, strong April momentum, and early signs of scale-up in flagship partnerships. Despite a sequential dip in revenue from the December quarter, cash receipts rose 160% year-on-year to A$2.37 million, with Q4 receipts forecast to reach A$4 million. The company also secured a A$3 million loan facility with Capricorn Society and ended the quarter with A$1.25 million in cash.
Management expects to build on this foundation, forecasting FY25 total cash receipts of A$12 million—approximately 120% growth year-on-year.
“The business is performing well with triple digit annual growth in cash receipts and strong, growing diversified income streams. I couldn’t ask for more from the team, who have performed well. This quarter should see us take a leap forward as we aim to post a record quarter for cash receipts from customers based on strong performance in the month of April,” managing director, Adrian Floate said.
Strategic reset: Sale of invoice finance loan book
Spenda’s key strategic milestone for the quarter was the divestment of its invoice finance loan book via a transaction with Grapple Invoice Finance Fund Pty Ltd. This asset sale involved a total consideration of A$2 million—A$500,000 paid upfront and A$1.5 million in deferred instalments and a balloon payment, contingent on customer retention. The divestment returned A$2.3 million in committed first-loss capital and reduced Spenda’s monthly gross profit by A$50,000, offset by operating cost savings and a reduction in staff-related expenses.
As part of the transition, several employees moved to Grapple, resulting in an estimated annual cost reduction of A$500,000. A two-year referral agreement was also signed, enabling Spenda to earn commission on future deals referred to Grapple.
Software rollouts: SwiftStatement and Carpet Court programs gain traction
Operationally, the company advanced deployments under key commercial agreements with Capricorn and Carpet Court. For the SwiftStatement platform, the rollout continued across Capricorn’s membership base, aided by the launch of self-onboarding functionality that reduced setup times to under 30 minutes. The platform can now support up to 2,000 installations weekly. With approximately 1,100 leads and 100 active customers, the company is focused on accelerating adoption with additional AI features, targeted sales engagement, and product refinements.
Meanwhile, Carpet Court’s State of Execution (SOE) platform expanded its reach across stores. The Q3 focus was on refining core functionalities such as inventory, procurement, invoicing, and account management. A broader rollout is expected through Q4 FY25.
Financial performance and capital management
Cash receipts for the quarter totalled A$2.37 million, up 160% on the prior corresponding period but down 35% on the December quarter. This was attributed to seasonality and the revenue impact from the invoice finance loan book divestment. Operating expenditure included A$450,000 in one-off costs relating to the sale, AFSL establishment, and ISO 27001 certification. Staff and administrative costs saw sequential declines, with the average operating burn rate falling to A$420,000.
At quarter-end, the company held A$1.25 million in cash and reported no drawn financing facilities. Post-quarter, a A$3 million term facility was secured with Capricorn Society to provide working capital flexibility. It features a three-year term, with repayments commencing in year three.
The company had a cash and cash equivalents position of $1.25 million as of March 31, 2025.
Outlook: Momentum building into Q4 FY25
April 2025 receipts of approximately A$1.5 million signal a strong start to the June quarter. Spenda anticipates Q4 receipts of around A$4 million, driven by platform growth, commercial implementations, and virtual card expansion. The company is targeting a commercial release of Carpet Court SOE v1.0 and continued scaling of its core payment products—SpendaAR, SpendaAP, and the Payment Widget.
ISO 27001 certification was also completed during the quarter, enhancing Spenda’s appeal to enterprise customers through bolstered cybersecurity credentials.