Cirralto (CRO.ASX)

“We make it easy to transform your business”
Mission: To make software that makes data sharing and collaboration so simple, our customers demand their trading partners use our applications.
Vision: To fundamentally change the way businesses transact by delivering software solutions that enable data sharing and collaboration without paper, transcription or human error.
Cirralto LTD is a software and I.T services company which increases efficiency by combining corporate functions under one integrated cloud platform. Cirralto provides modernization and integration technology, enabling client firms to monitor sales, payment, inventory, warehousing, etc. in real time through an internal platform.

Cirralto

Making sense of the small business nightmare in 2020.

From email and TXT to counter sales and fax, small business has a staggering amount of communication scenarios to manage. They need to log everything within the business to keep it running smoothly. The more staff and sites they trade from the harder it becomes. There is an enormous amount to keep track of and reconcile across numerous business functions. Just simple compliance with the ATO is weeks of data entry in any small to medium business.

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The answer to the small business nightmare lies in Cirralto’s patented Spenda software solution.

Cirralto’s IP enables the migration of legacy data to contemporary cloud software applications, therefore enabling businesses to undergo digital collaborative trade.

spenda

Cirralto has the ability to:

– Integrate e-commerce processes to better drive sales results
– Connect a client’s POS to other sales channels to become an OMNI channel business
– Integrate dropship supply and fulfilment to expand a client’s range and drive down costs
– Provide management with an internal platform to promote visibility and enable instant corporate governance

Cirralto solves four fundamental business problems:

1. A lack of established processes
2. Lack of synchronization between buyers, suppliers, manufacturers, accounts payable, and others
3. Growing complexity in buying channels and catalogues
4. Lack of definition between internal and external business functions

Cirralto’s data management system allows insight into all business functions at any given time, saving the client hours of work each week.

Highly Scalable Business Model

Cirralto has a well thought out and proven business model. The firm provides essential Software-as-a-service (SaaS) capabilities, and caters to established demand within the market. Cirralto enables firms to migrate their legacy data into contemporary cloud applications, this is a function that will scale with business growth.

Intellectual Property

With the acquisition of Appstablishment (subject to shareholder approval) Ciralto will become the IP owner and exclusive provider of the Spenda and SYNK’D platforms. The Spenda platform is an integrated, multi-purpose, cloud point of sale (POS) platform that allows businesses to eliminate manual data entry and simplify external processes, therefore saving time and money.

SYNK’D Enables customers to “Synk” data across their cloud eco app system, into their accounting and ERP Software. SYNK’D can push, pull, and persist business data such as debtors, creditors and inventory as well as transactions (purchase orders, invoices, credit notes, etc) in real times or based on user driven events. SYNK’D allows clients to connect to their customers to quickly share data.

Agile route to market

The ability to transcend all levels of the value chain gives Cirralto significant agility in their route to market and revenue sources. From buying-groups, marketplaces, and the customers themselves, Cirralto has the capacity to grow rapidly.

With the launch of Spenda and payments in the Xero App marketplace, this sector represents a significant opportunity to acquire customers and revenue from the Company’s products and services within Australia.

Cirralto intends to conduct targeted marketing campaigns to acquire Spenda customers from Xero’s ~1.2m (and growing) customer base that would readily adopt the Company’s integrated Spenda capabilities, including payments.

Established and Proven Management Team

With a vastly experienced team led by the Chairman Peter Richards and Managing Director Adrian Floate Ciralto has the ASX expertise and industry knowhow to maximise shareholder value.

Sources of Revenue

 Software subscriptions

○ Standard POS: $49 (per month)
○ Value add modules: $49 – $199 (per month)

Merchant fees on payment services

○ Payment margin on card transactions: 0.35% – 1.5%

Implementation & Project fees

○ Standardised implementation: $1,000 – $20,000
○ Project: >$25,000

Support fees

○ Support packs:
■ 1 hour – $125
■ 10 hours – $750

Revenue Metrics

Current:

● Average Revenue per user (ARPU)
● Total SaaS Revenue / Number of customers
● Customer conversion rate
● Total number of customers / Total addressable customers

Future:

● Attributable transactional value / Gross transaction value
● Merchant fee income / attributable transaction value
● Card transaction value / Gross revenue per customer
● Merchant fee income / Number of customers

To discuss this opportunity please contact us

UNIQUE PATENTED TECHNOLOGY

K2fly own a patented Software as a Service solution (SaaS) called Infoscope. Tenement management is an expensive, complex and risky process. Infoscope provides holistic tenement management seamlessly throughout the whole organisation ensuring critical tasks are being monitored and completed on time. This mitigates the risks mining companies face of losing their key assets because of activities or requirements being overlooked. The SaaS software has been ported onto the SAP S/4HANA cloud based enterprise resource planning (ERP) ecosystem. In June 2018, Infoscope became available on the SAP App Centre so around 70 global SAP sales staff in the mining sector can now sell the solution to their resource clients around the world. Each sale will deliver substantial recurring monthly revenue to K2fly.

LICENSING PARTNERSHIPS WITH GLOBAL COMPANIES

K2fly has negotiated reseller agreements with major global companies including General Electric, ABB, Kony and AMT-Sybex part of Capita.

LOW MARKET CAPITALISATION

The current EV of $24m for K2F is low relative to its growth potential, especially given the Infoscope tenement management system is now included as a solution for tenement management within the SAP S/4HANA cloud based ERP system.

SCALABLE, HIGH MARGIN BUSINESS

Now Infoscope has been ported to the SAP S/4HANA, sales can begin to flow. Currently 17 of the top 20 global mining companies run SAP. If we look more broadly at the mining sector, more than 770 mining companies in 71 countries run SAP. Each sale for K2F is expected to generate significant monthly recurring SaaS revenue with tier one mining clients likely to generate $50K+ revenue per month.

GLOBAL CUSTOMERS

Current customers of K2fly include large resource, infrastructure and utility companies.

PROVEN MANAGEMENT TEAM

Brian Miller was a co-founder of AMT-Sybex in Europe which turned over €55m per year with a profit of €16m. The company was taken over by Capita for €127m in April 2014. He has the relevant knowledge and experience to make K2fly a success. His fellow board members, Neil Canby and James Deacon, also have extensive experience in asset intensive sectors and essential industries.

FUTURE OPPORTUNITIES

Now that Infoscope has been ported onto the SAP S/4 Hana ecosystem, there will be other opportunities for K2fly such as porting ADAM (Asset Data Analysis Management) to the SAP S/4HANA ecosystem or through further acquisitions.