K2Fly (K2F.ASX)

K2fly’s vision is to be a “digital enabling partner” for Tier 1 asset-intensive clients whose challenges can only be solved with technology use.

They help clients optimise their physical and data asset values with innovative, tailored software solutions and consulting services.

Their integrated approach uses in-house solutions and a suite of licensed technology from leading global companies.

key investment insights

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.

infoscope now integrated within the sap s/4hana erp ecosystem

K2Fly benefits with a wider product offering and significant sales opportunities to large, global resources companies.

K2F infoscope
INFOSCOPE’S BENEFITS
K2FLY ACQUIRES RCUBED

In mid 2019, K2fly acquired RCubed, a resource and reserves reporting software solution from Prodmark Pty Ltd. This significantly strengthens K2fly’s existing SaaS offerings and complements Infoscope by helping mining and resource companies comply with their regulatory reporting obligations. This acquisition will increase K2fly’s major international mining customers. Read more.

INFOSCOPE PORTED ONTO SAP S/4HANA

Through the Co-Innovation Lab (COIL) program with SAP SE (Germany), Infoscope was integrated within SAP S4/HANA during April 2018.

SOLUTION DELIVERY

Infoscope is delivering a holistic solution for mining companies to manage their tenements on the SAP Cloud Platform.

INFOSCOPE AVAILABLE ON SAP APP CENTER

In June 2018, the Infoscope tenement management solution was added to the SAP App store meaning that 70+ mining sales execs at SAP can now sell the software.

k2fly-sap-app-center
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) or other solutions which may be acquired through further acquisitions.

Learn more about K2Fly’s innovative Infoscope Land Access System

Some of our happy global clients

clients are from asset intensive industries

To discuss this opportunity please contact us