Revenue continues to grow

We are very pleased to announce that fee revenue for the three months ended 31 December 2022 was $996,000, a $534,000 (116%) increase from the $462,000 for the three months to 30 September 2022 and a $743,000 (294%) increase from the $253,000 for the three months ended 31 December 2021.

Expenditure levels remain contained

In accordance with ASX Listing Rule 4.7C the Company provides the following additional commentary relating to the financial results included in the Appendix 4C for the quarter ended 31 December 2022.

Payment of remuneration to executive and non-executive directors and their related parties amounted to $240,000 during the quarter ended 31 December 2022. In addition, a net amount of $4,000 was paid for expenses incurred on behalf of the related party DomaCom Fund.

DomaCom continued to carefully monitor costs during the quarter. Expenditure within ‘cash flows from operating activities’ for the quarter ended 31 December 2022 totalled $1,170,000, a decrease of $169,000 from the previous quarter. The decrease is partly due to the timing of payments. However, the impact of cost saving measures have seen reductions on an expense basis across a number of categories, including staff-related costs and occupancy costs compared to the previous quarter.

Transaction costs related to issues of equity securities or convertible debt securities were $358,000 for the quarter ended 31 December 2022, representing a decrease of $98,000 on the equivalent figure in the previous quarter. The fees relate to the waiving of the Thundering Herd Convertible Notes default provision linked to not being quoted on the ASX and the fee paid to extend the Convertible Notes to 1 February 2024.

A recovery strategy delivering on stated corporate objectives

The Company continues to target strong growth in its business operations over the balance of the 2023 financial year (FY23) and beyond. This growth will be premised on enhanced client engagement, strong risk and governance controls and a rapid improvement in the Company’s financial position. Much of the groundwork for a successful delivery of this recovery plan has already been laid via the completed and in train initiatives outlined in the following figure.

The abovementioned priority tasks align with the four broad corporate objectives central to the Company’s growth strategy. In short, these objectives are to:

• Ensure capital sustainability and deployment to meet corporate objectives and shareholder return and liquidity expectations.
• Drive connectivity and collaboration with distribution and commercial partners. • Deliver broader, innovative and differentiated digital value propositions to diversify revenue base, increase market share and improve client experience.
• As an employer of choice, attract, develop and retain top talent who are innovative and collaborative.

DomaCom CEO John Elkovich said: “We are thrilled by the sustained growth in funds under management achieved by the DomaCom platform over the December 2022 quarter. It has been ably assisted by our continued ability to expand both customer accounts and the number of sub-funds on the platform. Together, these strong performance metrics demonstrate that our product offering is continuing to gain traction, as investors seek to enter additional asset classes that deliver them much sought after portfolio diversification. But importantly, these growth figures are also attributable to the DomaCom team’s unwavering efforts to reinvigorate our sales and marketing tools, redefine our target markets and successfully reconnect with key distribution and commercial partners

Another significant achievement over the December 2022 quarter was our recent relisting on the ASX. This event, which has been months in the making, sees the removal of a key obstacle to DomaCom’s recovery process. It means we can without any distraction focus on rebuilding trust. The relisting will also be a clear positive as we pursue some exciting third party deals, which include partnerships and the potential for new products. I personally want to thank shareholders for their patience while our staff worked diligently towards the goal of getting the Company back on the boards

Looking ahead, the DomaCom senior leadership team continues to implement a wide-ranging growth strategy that is targeting much more than just top-line revenue growth. It is also about delivering a cost base discipline that will deliver an additional boost to earnings performance over the balance of our FY23. Over coming months I look forward to updating investors on the range of initiatives we are now undertaking to turn DomaCom into a profitable business.”