(MENAFN- ProactiveInvestors)
’ () strategic investment arm continues to perform strongly with the valuation of its portfolio investee companies continuing to grow.
Its investment in xTV Networks Limited () in particular has seen considerable growth over the past three months rising to $0.03 from its initial IPO price of $0.02.
The company has also taken steps to improve the efficiencies and competitiveness of its Fee for Service division.
With $2.5 million in cash and over $1.5 million in tradeable listed equity investments the company is well positioned to take advantage of the numerous opportunities in the technology sector that it continues to review.
Strategic Investment Division
Based on last share price the current value of Applabs interest in xTV Networks Ltd is $1.5 million.
Its interest in () is worth $360000 while RosterElf is valued at $450000.
Other investments are worth:
- Epat: $250000;
- Pay2Day: $390000;
- Chat Centre: $65000;
- Context Plane: $65000;
- Loyalty App: $75000;
- Ltd (): $75000; and
- Positiv Flo: $50000.
Fee for Service Division
In response to a poor quarterly performance the company has taken steps to significantly improve the efficiencies and competitiveness of the Fee for Service Division.
While the division has seen impressive growth over the past twelve months it has struggled to address the continued cost pressures associated with a large Australian workforce.
The restructure currently underway will significantly reduce costs by off-shoring all design technical and development roles with an aim to strengthen the company’s competitiveness.
This will result in a significantly streamlined and responsive business with a more sustainable cost base. It is anticipated that the initial restructure will bring cost savings of approximately $600000 per annum from 1st June 2015.
Home Open
Applabs continues to undertake development work on the Home Open portal.
Given the increased competition in the sector over the past six months including an industry portal and several well-funded new portals the company is focused on continuing its quest to integrate new initiatives which will provide a point of difference for Home Open.
The company has undertaken steps to switch to offshore sales teams to drive the portal which will provide a more cost effective alternative with mass volume capabilities.
This is expected to bring cost savings of $150000 per annum from 1st June 2015.
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