Rubik financial Ltd (Rubik) (ASX:RFL), a leading fintech company delivering innovative banking, wealth and mortgage solutions to the financial services industry today announced its full year results for the financial year ended 30 June 2016.
Revenue for FY2016 was $43.3 million, an increase of $4.5 million or 11.4 per cent over FY2015, with recurring revenues contributing 73 per cent. Underlying EBITDA for FY2016 was $6.5 million, compared with $4.9 million in FY2015. Operating cash flow saw a return to positive $1.0 million, and net loss after tax (NLAT) was $2.7 million in FY2016, compared to a NLAT of $14.1 million in FY2015.
FY2016 internal research and development (R&D) spend was $3.4 million ($0.8 million of which was expensed). $1.4 million of internal R&D was invested in Coin and Provisio to build additional features and functionality to better service the needs of our wealth clients. Internal R&D of $1.5 million was invested in Rubik Model Bank, with an additional $1.6 million invested in outsourced development and $3.9 million in license fees for this new product. The balance of internal R&D was invested in building out our mortgages product functionality.
Looking back over the past year, Rubik Chairman Craig Coleman commented, “Rubik has delivered on performance expectations whilst also undergoing a period of significant transition and investing in growth for the future. Revenues have continued to grow, resulting in strong EBITDA growth in our underlying business. At the same time, the company has managed to transition to a blended on- shore and off-shore development and testing capability, has consolidated its data centre infrastructure and rationalised its corporate structure.
“We’ve achieved this whilst investing in our people and our product capabilities, with a key focus on transforming our products in to integrated solution platforms, providing customers with access to best practice foundations, innovation and scale regardless of their size,” said Coleman.
As the markets Rubik operates in continue to evolve, and in some instances converge, the company has undertaken a change in its operating structure segments from 1 July 2016. Moving forward, Rubik will focus on the areas of Financial Services, Banking, and Collections & International. This change reflects the ongoing transformation of Rubik and its transition from a product focused business to a platform solution focus – with dedicated resources to further enhance its offerings. It also highlights the growing traction of Rubik’s CWX platform, and the chance to leverage this class leading software across the globe.
Commenting on the past year, Rubik CEO Iain Dunstan said that he is pleased with the results. “Building on the previous financial year, which focused on ensuring all key financial measures and strategies were in place, we have steadily improved our financial performance. We have seen not just a stronger year than last, but a heightened stability instilled across the business, leaving us on an excellent footing going into the new financial year.
