(MENAFN- ProactiveInvestors)
’ () Fee for Service division has grown from strength to strength recording a 500% increase in revenue and doubling its contract work on hand.
Revenue for the quarter ending 31st December 2014 increased by about 500% from the previous quarter to about $300000.
It has also increased contracts executed during the financial year to date to $920000 from $460000 in August 2014.
The company currently has 21 projects underway with varying completion dates and payments based on development milestones.
There is room for more growth with over $1.1 million in potential new contracts already quoted.
“The growth achieved in the Fee for Service division is an excellent result for shareholders as the company continues to build on the Applabs brand” managing director Patrick Glovac said.
“Importantly with over $1100000 in additional new contracts quoted we are confident that the record accelerated growth can continue through the first half of 2015.“
Recent Activity
In December Applabs’ investee company xTV (ASX:XTV) raised $6 million through a heavily oversubscribed offer of shares demonstrating interest in its xTV offering.
Adding to the interest U.S. technology giant UST Global and Chinese Incubator Inno Valley remain notable significant shareholders of xTV.
Closing of the capital raising is one of the final conditions precedent to completion of the acquisition of MppApps Inc one of Applab’s portfolio investment companies.
xTV has entered into discussions with Chinese incubator and accelerator Inno Valley regarding their intentions to establish a joint venture to launch the xTV network directly into the Chinese market.
Inno Valley is one of China's best known incubators and accelerators with a key focus on the TMT and mobile Internet industry and has invested US$500000 to date into xTV as an equity partner.
Inno Valley covers the founders of China's leading internet enterprises such as Tencent (HKG:0700) 360 (NYSE:QIHU) and UCweb - which was acquired by Alibaba (NYSE:BABA).
Applabs is also raising up to $100000 through the issue of up to 10 million options priced at $0.01 each as part consideration to consultants of the company.
Analysis
The strong revenue and contract growth demonstrates the capabilities of Applab’s Fee for Service division.
There is potential for the accelerated growth to continue with over $1100000 in additional new contracts quoted.
Applabs had $3.8 million in cash at the end of September 2014.
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