Stock of the month: Plexure Group Limited PLX.NZ|
What does Plexure do?
Plexure Group Limited (PLX.NZ) is a mobile engagement software company which engages consumers on mobile devices and drive them to store with personalised offers, mobile order and pay and loyalty. Some of its clients include McDonald’s, White Castle (USA), Super Indo (Indonesia) and Loyalty New Zealand. The Company now has over 191 million end users on its platform in 60 countries.
Why is Plexure our Stock of the month?
Since McDonald’s purchased a 9.9% equity stake in Plexure in April 2019, the relationship between the two companies has continued to strengthen. Plexure continues to broaden its scope of offering for the fast food giant including AI enabled fraud detection.COVID-19 has increased the requirement for customers to shop at distance, which has accelerated the adoption of products like Mobile Order and Pay, that Plexure has deployed across 2,700 McDonald’s stores in Japan.
Plexure also announced it’s intention to investigate undertaking an initial public offering (IPO) on the Australian Securities Exchange (ASX). ASX listing would expose the Company to a larger shareholder pool which worked out positively for Xero after delisting from NZX.
Recent stock news
Since the 23 March Covid related share price drop, Plexure’s share price bounced up by 231% from $0.49 to $1.39 on September 30th.
For the year ended 31 March 2020, the Company has achieved the following:
• Revenue increased by 50% ($8.4 million) to $25.3 million from FY19
• Net profit increased by 243% to $1.0 million from the FY19 loss of $0.7 million
• $14.2 million cash on hand at balance date and cashflow positive from operating activities for the third successive year