Online ASX-listed cash management platform Cashwerkz Limited has reported a rise in revenues as a result of recent strategic initiatives in an update provided today to the market.
The company disclosed the following trading update with comment from chief executive Jon Lechte.
Group Revenues
The company announced significant month-on-month growth in revenue during the first quarter and into October (to date) as a result of new strategic initiatives, particularly the launch of the Bond Income business.
Monthly revenue has started to materially increase since the launch of the Bond Income business in August. October revenue is on track to be more than three times the average monthly revenue of previous months.
Cashwerkz CEO Jon Lechte said: “We are seeing this upward trend as a result of the new initiatives and business model we have innovated, and while it is only just the start, the increase in revenue, deal flow, and brand awareness places us well to grow into 2020/21.
“We expect to be able to provide further updates including further; revenue, FUM and client acquisition growth in the coming period.”
Bond Income Update
Cashwerkz launched its Bond Income business in August to provide bond and fixed income solutions to wholesale investors and financial advisers. Bond Income offers direct access to bonds in parcels of $50,000 minimum; a multi-currency bond offering and foreign exchange execution service; ASX-listed bond and hybrid execution; and portfolio optimisation capability through its state-of-the-art technology platform.
Since the launch of the business new client acquisition has been in line with company forecasts. The company is signing up an average of five new clients every day with its streamlined on-boarding process. To assist this momentum, Bond Income is currently waiving all custody fees forever, for new customers who onboard before the end of 2020.
Cashwerkz CEO Jon Lechte said: “We are delighted with the progress made by the Bond Income team. Our technology has enabled us to onboard new customers within minutes and we have secured a diverse mix of clients ranging from direct investors to financial advisors, family offices and institutional investors.
“All are welcoming our fresh approach of offering a transparent dealing platform, utilising the highest standards from partners such as Bloomberg, Bond Advisor, Mainstream and BondIT.”
Earlier in October, Bloomberg announced that Bond Income had adopted Bloomberg’s Trade Order Management System supports the business with an integrated fixed income execution and order management platform across OTC, ASX-listed and hybrid instruments.
Fund Income Update
Cashwerkz created Fund Income earlier this year as a wholly-owned subsidiary to help facilitate the establishment and growth of innovative new fund managers. After completing all necessary compliance requirements, the company expects to launch its first Fund soon and will update the market accordingly.
