Real Estate Investar Group Limited (ASX:REV), a leading provider of online services to Australian and New Zealand property investors to help simplify their acquisition and management of residential investment property, has released its 4C quarterly cash flow statement for the quarter ended 31 December 2015.
During the December quarter, receipts from customers were $1,003,600, an increase of 23.2% over the previous quarter in which receipts were $814,293. The key driver of this grow was a strong increase in the referral revenue generated through marketing efforts to its existing membership base.
The Real Estate Investar Group raised $5.15 million in financing during the December Quarter, primarily from the Initial Public Offering (IPO).
There was a significant increase in payments for staff costs and other working capital during the period. This can be directly attributed to Initial Public Offering related costs, historic amounts owed to staff members, and the strengthening of the balance sheet through the payment of historic accounts payable.
Clint Greaves, the CEO of the Real Estate Investar Group, commented; “we were very pleased to complete the IPO in December and raise $5.0 million. These funds have helped us significantly improve our balance sheet and we are now well funded to drive strong growth of the business.”
“Our short term focus is on improving the quality and quantity of the team, especially in the sales and marketing areas. Specifically, we are putting teams in place to increase the number of members using Real Estate Investar services, and to convert these members to paying customers either through the purchase of a subscription or through the purchase of referral products and services.”
Simon Baker, Chairman of the Group, also commented; “having seen off the IPO and the Christmas period, we are now able to focus on one thing, the operational growth of the business. We have a strong Board in place, a good management team, an excellent product and a clear strategic direction."