Australia-based AD1 Holdings (AD1:AU), announced a business update for the fourth quarter and full year ended June 2022, reporting group unaudited total revenue of approximately AUD 7 million (USD 4.7 million) for the year.

The group’s Art of Mentoring (AoM) division reported revenue increased 34% year-on-year. ApplyDirect revenue reported an increased 10% over the year.

Cash receipts for the quarter stood at AUD 2.3 million (USD 1.5 million), a 16% improvement on the prior corresponding period. Cash receipts for the full year totalled AUD 7.3 million (USD 4.9 million).

AD1 Holdings Chief Executive Officer Brendan Kavenagh said, “We are pleased to have accomplished another quarter of steady growth across the group securing key target customer wins, achieving valuable customer renewals and delivering a significant increase in cash receipts. Our cost reduction strategy has identified and delivered significant cost savings, with an 83% reduction in expenses on the prior corresponding period.

Kavenagh added, “Our AoM and ApplyDirect divisions have been tracking particularly well. We are in advanced discussions with existing and new customers to further expand our offerings across both divisions. AoM predominantly has a strong pipeline of targets set for FY24, with exciting new opportunities emerging in Australia and North America.”

During the quarter, AD1 continued to see steady growth across the group with the addition of new customers across all divisions.

Art of Mentoring continues to report growth in the US, after having only entered the US market 12 months ago.

ApplyDirect witnessed continued momentum in Q4 with new customer integrations and significant project investment from key customers requiring platform enhancements.

The group also said the Utility Software Services (USS) business will be discontinued under the agreed and completed sub-licensing agreement with BlueNRG from 1 September 2023. ApplyDirect acquired USS in January 2019.

Looking ahead, the group stated, “As we commence FY24, AD1 has shifted into a strong sales and revenue growth focus across the group and will continue to improve its robust product offerings and manage costs effectively.”

“The company commenced FY24 with a minor restructure to its operations, and a clear objective to target profitability in FY24,” AD1 Holdings stated. “The group’s outlook is positive leading into FY24, with a robust North American sales pipeline, strong customer retention from ApplyDirect and continued cost reduction.”

AD1 Holdings shares closed at AUD 0.007 (USD 0.0047), up 40% on the day and 75.00% above the 52 week low of AUD 0.004 (USD 0.0027) set on 10 July 2023. The company has a market cap of AUD 4.11 million (USD 2.8 million).