Quick growth for QuickFee
Fintech debutant, QuickFee Ltd [ASX:QFE] is soaring today as traders pile in. At time of writing, the share price is up 15.6% to 37 cents. Though it peaked as high as 40 cents (25%) in earlier trading.
The strong price surge has come on the back of an operations update from management. An announcement that highlighted its strong lending growth (sales) for last month (July).
Growing locally and abroad
Compared to last year, overall lending in the local market is up 62%. Their running total is now sitting at a promising $3.6 million.
Meanwhile, stateside the company is also doing well. Lending in the US is also up year-on-year by 54%.
This growth is coming off a far smaller base, however. Total lending for QuickFee in the US is just US$729,000 ($1.07 million).
Still, CEO Bruce Coombes had every reason to be chuffed with the result, as he commented:
‘QuickFee’s proven business model in the Australian market, built over the past ten years, continues to gain momentum. We are delighted to announce that we achieved a strong month of lending in both countries, with the investment in our sales capabilities and marketing continuing.
‘We are also pleased with the continued traction we are making in the US market. The US market represents a huge market opportunity for QuickFee, where the professional services fee funding model is largely untapped’.
A reprieve for investors, but questions still loom
While today’s result will please early investors, the share price is still noticeably down from its debut.
Having listed in mid-July, QuickFee closed at 50 cents on its first day of trading. A result that netted those lucky enough to get in during the IPO a 150% return.
In the weeks since though, shares have been gradually sliding back down. So, this sugar hit from management was very timely indeed.
Some investors may be left with more questions than answers. For instance, how much did this ‘investment’ in sales and marketing actually cost? A detail that was conveniently absent from the business update.
We’ll have to wait for more detailed results till we get the full picture. Something that we’ll be keeping an eye out for.
Hot or not?
At the end of the day, it’s up to individuals to make a call on QuickFee.
While they have some incredible potential, they also have a lot to prove. Being lumped in the incredibly hot sector of ‘fintech’ is also hard to make heads or tails of. Especially as QuickFee is quite different to more established companies like Afterpay Touch Group Ltd [ASX:APT] and Zip Co Ltd [ASX:Z1P].
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For Money Morning