Australian telecommunications company Vonex, which is in the midst of fundraising as part of a float on the ASX, has posted an impressive trading update securing substantial profits from its retail and wholesale divisions.
The company reports unaudited figures during the 9-month period to the end of March of $5.953 million in sales, translating into a net profit of $959,000 for the combined divisions.
Both profits and sales figures were increased across Vonex’s two sales arms.
The company’s retail division has collected the lion’s share of Vonex’s sales, recording $5.163 million in sales over the period – an increase of over $700,000 for the same period last year.
The retail division provides hosted PBX services, internet and NBN, as well as mobile and landline telephone packages.
Vonex has been acquiring retail customers, predominantly small to medium enterprises, through a channel partner network which operates like a sales force and is particularly active as customers look for updated NBN contracts.
The company’s wholesale division reported an estimated 13% increase in sales over the period, totaling $0.790 million in sales and a net profit of $106,000.
The financial performance of Vonex’s wholesale and retail divisions continues to reflect the strength of our innovative technology and the market’s expanding appetite for solutions that are able to deliver significant cost savings,” Vonex chairman Nicholas Ong said.
“Both divisions recorded an increase in sales figures, and even more pleasingly, produced a net profit.
“As the Company heads towards its listing on the ASX, it is fantastic to know that the core operations of Vonex are continuing to perform healthily despite limited funding. We believe that with additional marketing resources after the IPO, the business will have greater capacity to grow,” Mr Ong said.
Vonex continues to close in on an ASX debut, with a prospectus lodged to issue up to 35 million shares at a price of $0.20 per share to raise up to $7 million before costs.