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Pureprofile (ASX:PPL) halts trade ahead of fresh cap raise

The Market Online Deal Room
ASX:PPL      MCAP $18.55M
14 October 2020 11:15 (AEST)

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Survey company Pureprofile (PPL) has entered a trading halt today ahead of an upcoming capital raise and debt restructure.

The company has not let on how much it plans to raise or exactly where the new funds will go, but Pureprofile said shares will be back up for trade on Friday, October 16.

Essentially, Pureprofile collects market research by rewarding consumers for filling out surveys. Users simply need to fill out their profile to receive surveys which, after completion, reward them in redeemable cash payments.

Of course, the upcoming raise comes soon after Pureprofile’s Martin Filz completed his first three months as CEO.

Martin was appointed head of the company in July and began his work at Pureprofile on August 3. According to Chairman Andrew Edwards, Martin has extensive experiences in the market research industry.

Taking a look at the company’s financials, Pureprofile had around $1.3 million in the bank at the end of June 2020 and $3.7 million in trade and other receivables.

However, this came after a $9.8 million loss for the 2020 financial year — an improvement on 2019’s $14.4 million loss, to be sure, but a loss nonetheless.

This result was underpinned by a 35.9 per cent drop in revenue to $24.2 million for the full year.

However, despite the revenue fall and the annual loss, Pureprofile managed to post earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.46 million for the financial year — a neat 303.9 per cent increase on the previous year $714,000 EBITDA loss.

Nevertheless, it seems the company’s new management feels now is a prudent time to raise some fresh funds.

Shares in Pureprofile last traded for 2.4 cents each before entering their trading halt. The company has a $2.82 million market cap.

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