Fintech
HIRE Technologies Announces Financial Results for the First Quarter of 2020
For Immediate Release
- HIRE achieved its best quarterly financial results to date with adjusted EBITDA(1) of $50,019 and adjusted net earnings(2) of $12,566, during the three months ended March 31, 2020. Net loss for the quarter was $744,865, or 0.02 per share.
- HIRE’s revenue and profitability is proving to be highly resilient throughout the COVID-19 pandemic with only a 3.6% YoY decrease in revenue for the quarter ended March 31, 2020, offset by a 3.8% YoY increase in gross profit compared to the quarter ended March 31, 2019.
- HIRE has made key changes to its leadership team to enhance and execute on its strategic plan, promoting Simon Dealy to CEO and Eric Loree to Chief Legal Officer while adding Dan Teguh as VP, Finance.
Toronto, Ontario–(Newsfile Corp. – June 1, 2020) – HIRE Technologies Inc. (TSXV: HIRE) (“HIRE” or the “Company”) announces financial results for the quarter ended March 31, 2020.
“While the COVID-19 pandemic has created a high degree of uncertainty for many people, we feel truly fortunate that our operations were uninterrupted and that we continue to provide a high level of service in support of our clients. As we evolve our business, we are leveraging our expertise in flexible staffing solutions to keep the businesses of our clients operating during these challenging times,” said Simon Dealy, Chief Executive Officer.
COVID-19 did not have a material financial impact on HIRE for the quarter ended March 31, 2020. This demonstrated the resiliency of HIRE’s recurring temporary placement revenues. Given the measures taken by all levels of government to slow the spread of COVID-19 and the consequent impact on the economy, the Company continues to be vigilant and focused on opportunities where it can help clients.
“Organizations rely on us to provide qualified IT, finance and back-office staff,” continued Mr. Dealy. “With a focus on technology-driven solutions, HIRE is well-positioned to help re-engage impacted workers as the economy transitions out of the lock-down phase of the pandemic.”
First Quarter Highlights
- For the quarter ended March 31, 2020, the Company’s revenue was $2,902,786, slightly lower than $3,011,887 for the quarter ended March 31, 2019, a difference of $109,101.
- Gross profit as a percentage of revenue for the quarter ended March 31, 2020, was 23.8%, up from 22.1% for the quarter ended March 31, 2019.
- Adjusted EBITDA was $50,019 for the quarter ended March 31, 2020 versus ($330,926) in 2019.
- Net loss for the period was $744,965 or 0.02 per share (March 31, 2019 – $849,938 or 0.01 per share). Adjusted net earnings were $12,566 (March 31, 2019 – adjusted net loss of $432,156 or 0.01 per share).
- A comprehensive reorganization was initiated by management at the end of the quarter, which will result in significant expense reductions going forward.
- The Company’s cash flow from operations was a net cash outflow of $1,599,453 for the quarter ended March 31, 2020 (March 31, 2019 – $1,060,850).
- The Company has a revolving demand operating facility with a credit limit of the lesser of $1,700,000 and the percentages of certain qualified receivables. As at March 31, 2020, the balance outstanding on the facility was $nil (March 31, 2019 – $1,425,000).
- On February 20, 2020, HIRE and RSI International Systems Inc. (NEX: RSY.H) (“RSI”) entered into a letter of intent pursuant to which the Company and RSI have agreed to amalgamate with the combined entity continuing operations under the name of HIRE.
Outlook
For the remainder of 2020, the Company plans to focus on the following objectives:
- Follow a disciplined acquisition and capital allocation strategy,
- Achieve organic growth for its existing operating businesses,
- Complete the reorganization of HIRE’s current operations, and
- Increase awareness of HIRE and its unique value proposition.
Selected Financial Highlights
Please see SEDAR for complete copies of the Company’s unaudited condensed consolidated interim financial statements and MD&A for the three months ended March 31, 2020.
| Three months ended March 31, 2020 |
Three months ended March 31, 2019 |
|
| $ | $ | |
| Net loss | (744,965) | (849,938) |
| Interest | 16,559 | 57,974 |
| Amortization | 22,650 | 22,650 |
| Depreciation | 69,452 | 47,231 |
| Tax | (4,660) | (4,373) |
| EBITDA | (640,964) | (726,456) |
| Add: | ||
| Restructuring and other non-recurring items | 717,531 | 417,782 |
| Rent expense | (26,548) | (22,252) |
| Adjusted EBITDA | 50,019 | (330,926) |
| Three months ended March 31, 2020 |
Three months ended March 31, 2019 |
|
| $ | $ | |
| Net loss | (744,965) | (849,938) |
| Add: | ||
| Restructuring and other non-recurring items | 717,531 | 417,782 |
| Non-recurring rent | 40,000 | – |
| Adjusted net earnings (loss) | 12,566 | (432,156) |
Footnotes:
(1) EBITDA and adjusted EBITDA are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS. EBITDA is defined as net income/loss adjusted to exclude interest, taxes, depreciation, and amortization, and provides management with insight into the operating performance of HIRE and its operating subsidiaries without the impact of significant accounting policies on depreciation and amortization, financing, and tax implications. Adjusted EBITDA is defined as EBITDA, excluding restructuring and other non-recurring items. Adjusted EBITDA is also adjusted to include rent payments, which are not accounted for in EBITDA following the adoption of IFRS 16 Leases. Management believes that EBITDA and adjusted EBITDA are useful measures in evaluating the performance of the Company.
(2) Adjusted net earnings (loss) is a non-IFRS measure that does not have a standardized meaning prescribed by IFRS. The Company defines net earnings (loss) as net earnings (loss) excluding restructuring and other non-recurring items. Management believes that adjusted net earnings (loss) is a meaningful metric in assessing the Company’s financial performance.
About HIRE Technologies
HIRE is focused on the acquisition of information technology, staffing, and HR consulting firms. We provide our partners with meaningful cross-selling opportunities, access to leading technology, and a centralized back-office system to support growth.
For further information, please contact:
HIRE Technologies Inc.
Simon Dealy, Chief Executive Officer
Phone: (647) 868-9611
Email: [email protected]
Web: hire.company
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forward Looking Information
This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to hereafter as “forward-looking statements”) within the meaning of applicable Canadian securities legislation.
All statements that address activities, events or developments that HIRE Technologies expects or anticipates will, or may, occur in the future, including statements about HIRE’s business prospects, future trends, plans, strategies, including, in particular, HIRE’s acquisition strategy and expense reductions, and the expected benefits thereof, are forward-looking statements. In some cases, forward-looking statements are preceded by, followed by or include words such as “may”, “will”, “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “proposes”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, or the negative of those words or other similar or comparable words.
Although the management of HIRE believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement herein will prove to be accurate.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of HIRE to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: risks related to the recent outbreak of COVID-19, which may have material adverse effects on the global financial markets, and its business, financial position, financial performance, and cash flows; the impact on the business of broader economic factors; alignment of HIRE’s’ cost structure with revenue; HIRE’s limited operating history and needs for additional capital; uncertainty relating to liquidity and capital requirements; risks inherent in HIRE’s acquisition strategy; HIRE may not be able to obtain financing necessary to implement HIRE’s business plan; HIRE may not be able to obtain access to technology necessary to compete in the recruiting industry; HIRE operates in a highly competitive industry and may be unable to retain clients or market share; barriers to client portability are low; reliance on key management; and compliance with financial reporting and other requirements as a public company. Additional risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting it and the staffing industry can be found in the Company’s continuous disclosure record available on SEDAR including the Company’s Management’s Discussion and Analysis dated June 1, 2020, and the Company’s Filing Statement dated November 26, 2019, and in particular, the sections entitled “Risk Factors” and “Narrative Description of the BTG Business – Regulatory and Trends.” Although HIRE has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.
Such cautionary statements qualify all forward-looking statements made in this press release. HIRE undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/56967
Fintech
Fintech Pulse: Your Daily Industry Brief – January 24, 2025 (Pomelo Group, Arrow Checkout, Open Payments, HSBC, Zing, DoubleCheck)
The fintech landscape is buzzing with activity today as innovative startups and seasoned industry leaders make headlines. From acquisitions to groundbreaking launches and funding rounds, these developments underscore the relentless pace of innovation in the financial technology sector. Here’s your comprehensive daily fintech briefing, featuring the latest updates and analysis.
Pomelo Group Acquires Arrow Checkout: A Power Play in Singapore Fintech
Pomelo Group, a leading name in the payment technology space, has announced its acquisition of Arrow Checkout, a fellow Singapore-based fintech company specializing in seamless online payment solutions. This strategic move not only strengthens Pomelo’s portfolio but also signals its commitment to becoming a dominant force in the Asian payment ecosystem.
Why This Matters:
Consolidation in fintech is nothing new, but this acquisition highlights how regional players are vying for dominance in Asia’s burgeoning e-commerce market. Singapore’s fintech scene has been thriving, and with this merger, Pomelo Group is poised to offer a more comprehensive suite of services to merchants looking for efficient, secure, and scalable payment solutions.
Commentary:
This acquisition could set the stage for further M&A activity in Southeast Asia, as fintech firms race to gain competitive advantages. Pomelo’s move shows that innovation and growth in fintech aren’t confined to the West—Asia remains a hotbed for cutting-edge developments.
Source: Fintech Finance News
The Gender Gap in European Fintech Funding: A Glimmer of Progress?
Stockholm-based Open Payments has raised €3 million in its latest funding round, marking a significant milestone for female founders in European fintech. Led by Louise Brandt, the company’s API-driven platform empowers businesses to integrate banking and payment systems seamlessly.
Why This Matters:
Despite ongoing challenges, Open Payments’ success reflects a slow but encouraging shift toward better funding opportunities for female-led fintech companies in Europe. Historically, women founders have faced an uphill battle in securing venture capital, but this story highlights that persistence and innovation are winning out.
Commentary:
Louise Brandt’s leadership and the company’s ability to raise €3 million indicate a turning point for underrepresented groups in fintech. While Europe still has a long way to go, Open Payments’ triumph serves as a testament to the growing appetite for diversity and inclusion in financial technology.
Source: Tech Funding News, EU-Startups
HSBC’s Closure of Zing Marks a Stark Warning for Neobanks
HSBC recently announced the closure of Zing, its digital-first challenger bank, due to profitability challenges. The news comes as a blow to neobank enthusiasts and raises questions about the viability of digital-only banking ventures in today’s competitive environment.
Why This Matters:
The closure highlights a recurring theme in fintech: profitability versus innovation. While neobanks have disrupted traditional banking, the struggle to maintain sustainable business models is evident. HSBC’s decision to wind down Zing underscores the difficulties of scaling digital-only offerings while competing against established players.
Commentary:
For startups, HSBC’s retreat may serve as a cautionary tale. Neobanks must focus on diversifying their revenue streams and offering unique value propositions to thrive in an increasingly saturated market.
Source: Sifted
DoubleCheck Names New CEO Amid Strategic Expansion
DoubleCheck, a fintech company revolutionizing overdraft management, has appointed Bryan Weatherford as its new CEO. With his extensive background in financial services and leadership, Weatherford is expected to drive the company’s growth and further establish its market presence.
Why This Matters:
Leadership transitions often signal new phases of growth and strategic shifts. DoubleCheck’s appointment of Weatherford highlights its ambition to expand its offerings and increase adoption of its innovative approach to managing overdrafts—a long-overlooked pain point in consumer banking.
Commentary:
With financial inclusion and customer-centricity becoming critical pillars of fintech innovation, DoubleCheck’s leadership shake-up may pave the way for broader adoption of fair and transparent financial tools.
Source: Fintech Finance News
SC Ventures and kiya.ai Unveil Akashaverse for Inclusive Digital Experiences
SC Ventures, the innovation arm of Standard Chartered, and fintech innovator kiya.ai have teamed up to launch Akashaverse, a digital ecosystem designed to promote inclusivity in financial services. The platform leverages the latest in AI, blockchain, and metaverse technologies to create immersive digital experiences tailored to a wide range of users.
Why This Matters:
Akashaverse represents a significant leap in bridging digital divides and making financial services accessible to underserved populations. By integrating cutting-edge technology into a user-friendly platform, SC Ventures and kiya.ai aim to redefine how financial services are consumed.
Commentary:
The launch of Akashaverse demonstrates the growing importance of collaboration in fintech. It’s a prime example of how partnerships between established financial institutions and nimble fintech startups can lead to transformative solutions.
Source: IBS Intelligence
Open Payments Secures €3 Million to Accelerate Growth
In addition to its groundbreaking impact on diversity in fintech, Open Payments’ €3 million funding round is set to drive its ambitious growth strategy. The company plans to enhance its API-driven platform, which streamlines bank and payment system integrations, and expand its reach across Europe.
Why This Matters:
As APIs continue to be the backbone of fintech innovation, Open Payments is positioning itself as a leader in this space. With fresh funding, the company can accelerate its mission to make financial services integration seamless and efficient.
Commentary:
This funding round not only validates Open Payments’ business model but also signals growing investor confidence in fintech infrastructure companies. As open banking gains traction, solutions like Open Payments are becoming increasingly vital.
Source: EU-Startups
From strategic acquisitions and funding milestones to leadership transitions and digital ecosystem launches, today’s fintech stories showcase the resilience and innovation driving the industry forward. As the sector evolves, certain key themes emerge:
- Regional Focus: Stories like Pomelo Group’s acquisition and Akashaverse’s launch highlight how regional initiatives are shaping global trends.
- Diversity and Inclusion: Open Payments’ success underscores the growing importance of leveling the playing field for underrepresented groups in fintech.
- Sustainability of Business Models: The closure of Zing serves as a reminder that profitability must go hand in hand with disruption.
For stakeholders, staying ahead requires a keen eye on these trends and a willingness to adapt. As fintech continues to redefine traditional financial services, one thing remains clear: innovation is the heartbeat of this industry.
Fintech Pulse will return tomorrow with more insights, updates, and analysis.
The post Fintech Pulse: Your Daily Industry Brief – January 24, 2025 (Pomelo Group, Arrow Checkout, Open Payments, HSBC, Zing, DoubleCheck) appeared first on News, Events, Advertising Options.
Fintech
Fintech Pulse: Your Daily Industry Brief (Kingdee Credit Tech, Jar, Neonomics, Ordo, Pomelo Group, Arrow Checkout, Clutch)
Fourth Consecutive Recognition for Kingdee Credit Tech on KPMG’s China Fintech 50
In a remarkable feat that underscores its consistency and innovation, Kingdee Credit Tech has secured its place on the 2024 KPMG China Fintech 50 list for the fourth consecutive year. This recognition is a testament to the company’s robust financial solutions and unwavering commitment to digital transformation.
Kingdee Credit Tech’s platform integrates big data, cloud computing, and AI to provide intelligent credit and risk management solutions. With a strong focus on enabling small and medium enterprises (SMEs), the company has carved a niche in empowering businesses to navigate complex financial landscapes seamlessly. The KPMG recognition highlights Kingdee’s ability to address industry challenges while maintaining its competitive edge in China’s rapidly evolving fintech ecosystem.
Source: PR Newswire
Indian Fintech Jar Turns Cash Flow Positive
In a significant milestone for the Indian fintech ecosystem, savings and investment platform Jar has announced achieving cash flow positivity. This accomplishment sets Jar apart in a market often criticized for prioritizing growth over profitability.
Jar’s journey began with the aim of simplifying savings for the everyday user by leveraging India’s love for gold. Over time, the platform diversified its offerings to include mutual funds and other financial products, attracting a wide user base. The company’s transition to profitability reflects its efficient business model, operational discipline, and customer-centric approach.
In an era where venture funding has become selective, Jar’s achievement sends a strong signal to the fintech community: sustainability is the new growth metric.
Source: TechCrunch
Neonomics Accelerates UK Expansion with Ordo Acquisition
Neonomics, a leading open banking platform, has strengthened its footprint in the UK by acquiring payments fintech Ordo. This strategic move underscores Neonomics’ ambition to dominate the open banking payments space while expanding its services in one of Europe’s most competitive financial markets.
Ordo, known for its innovative payment solutions, aligns seamlessly with Neonomics’ mission to make financial transactions faster, cheaper, and more secure. The acquisition will enhance Neonomics’ product portfolio and provide a gateway to a larger customer base in the UK. As open banking gains traction globally, this partnership is expected to set new benchmarks in digital payments.
Source: Fintech Futures
Pomelo Group Acquires Singaporean Fintech Arrow Checkout
Singapore-based fintech Pomelo Group has announced the acquisition of Arrow Checkout, another prominent player in the region’s fintech landscape. This deal highlights the growing consolidation trend in Southeast Asia’s fintech industry as companies seek synergies to scale operations and expand market reach.
Arrow Checkout’s expertise in providing seamless payment solutions will complement Pomelo’s existing offerings, creating a more comprehensive suite of services for merchants and consumers alike. The acquisition is also expected to bolster Pomelo’s technological capabilities, enabling it to innovate and stay ahead in the competitive payments market.
Source: PRWeb
Clutch Secures $65M Series B Funding to Empower Credit Unions
Fintech startup Clutch has raised $65 million in a Series B funding round, aiming to revolutionize the way credit unions operate in the digital age. The funding, led by prominent venture capital firms, will be used to enhance Clutch’s platform and expand its market presence.
Clutch’s platform focuses on modernizing credit union operations by providing tools for digital onboarding, member engagement, and personalized financial services. The infusion of capital will enable Clutch to accelerate its mission of bridging the gap between traditional financial institutions and cutting-edge fintech solutions. As credit unions face increasing pressure to adapt to digital-first preferences, Clutch’s solutions are poised to become indispensable.
Source: PR Newswire
The post Fintech Pulse: Your Daily Industry Brief (Kingdee Credit Tech, Jar, Neonomics, Ordo, Pomelo Group, Arrow Checkout, Clutch) appeared first on News, Events, Advertising Options.
Trump Meme Coin Sparks Debate on Crypto’s Role in Political Movements
The launch of a Trump-inspired meme coin has reignited discussions about the intersection of cryptocurrency and political movements. While some view this as an innovative way to engage supporters and raise funds, others criticize it as a volatile and unregulated medium.
This development reflects the broader trend of using blockchain for political and social causes, raising questions about regulation, ethics, and the long-term implications of such initiatives.
Source: Axios.com
Central Banks and Stablecoins: A Shifting Landscape
As central banks continue to explore digital currencies, the role of stablecoins in the global financial system is undergoing rapid evolution. According to recent reports, central banks are considering partnerships with private sector players to accelerate the adoption of digital currencies while addressing regulatory concerns.
This collaboration could redefine cross-border payments and financial inclusion, offering a more efficient and accessible alternative to traditional banking systems.
Source: FT.com
Blockchain as a Trust Mechanism in AI
Blockchain technology is emerging as a key tool for building customer trust in AI. By ensuring transparency and traceability in AI decision-making processes, blockchain can address concerns about bias and accountability.
Organizations leveraging blockchain to validate AI outputs are setting new standards for ethical AI, demonstrating how the two technologies can complement each other to foster trust and innovation.
Source: HBR.org
Blockchain’s Role in Global Economies
Blockchain is increasingly being recognized as a transformative force in global economies. From enhancing supply chain transparency to enabling decentralized finance, the technology is reshaping how businesses and governments operate.
Thought leaders emphasize the importance of regulatory frameworks and international cooperation to maximize blockchain’s potential while mitigating risks such as fraud and misuse.
Source: FinanceMagnates.com
True I/O and OroBit: Transforming Real-World Asset Markets
True I/O and OroBit have announced a groundbreaking partnership to bring blockchain security to Bitcoin Layer 2, aiming to revolutionize real-world asset markets. By integrating blockchain’s transparency with Bitcoin’s robust network, the collaboration seeks to create a more secure and efficient market for tokenized assets.
This initiative highlights the growing trend of integrating blockchain with traditional asset markets to enhance security, liquidity, and accessibility.
Source: GlobeNewswire.com
Analysis and Implications
Political Cryptocurrency: A Double-Edged Sword
The Trump meme coin exemplifies how cryptocurrencies can be harnessed for political and social engagement. However, the lack of regulation and high volatility associated with such projects pose significant risks. Policymakers must address these challenges to ensure a balanced approach to innovation and security.
Stablecoins and CBDCs: Partners or Competitors?
The collaboration between central banks and stablecoin providers underscores the need for synergy in the digital currency ecosystem. By working together, they can leverage each other’s strengths to create a more inclusive and efficient global financial system.
Blockchain + AI: A Recipe for Trust
The integration of blockchain with AI represents a promising solution to address issues of transparency and accountability. This synergy could redefine how businesses and consumers perceive and interact with AI technologies, paving the way for broader adoption.
Blockchain’s Economic Impact
The transformative potential of blockchain in global economies cannot be overstated. As adoption grows, it is crucial to establish robust regulatory frameworks to harness its benefits while minimizing risks.
Revolutionizing Asset Markets
The True I/O and OroBit partnership is a testament to blockchain’s ability to disrupt traditional markets. By enhancing security and liquidity, such initiatives can unlock new opportunities for investors and issuers alike.
The post Blocks & Headlines: Today in Blockchain appeared first on News, Events, Advertising Options.
-
Fintech4 days agoFintech Pulse: Your Daily Industry Brief (Paytm, KKR, Maya, TransUnion, Monevo, WeBank)
-
Fintech3 days agoFintech Pulse: Your Daily Industry Brief (Complii FinTech Solutions, Gate City Bank, LeapXpert)
-
Fintech2 days agoFintech Pulse: Your Daily Industry Brief (Monzo, 24SevenOffice Group AB, Nordiska Kreditmarknadsaktiebolaget, Acquired.com, Swifin, Foxway)
-
Fintech1 day agoFintech Pulse: Your Daily Industry Brief (Kingdee Credit Tech, Jar, Neonomics, Ordo, Pomelo Group, Arrow Checkout, Clutch)
-
Fintech PR6 days agoKantar Group announces the proposed sale of Kantar Media
-
Fintech PR4 days agoCityBee, the UK office joint venture between Europi Property Group and Trinova Real Estate, has secured two lease extensions comprising c.60,000 sq. ft at Cuprum, Glasgow
-
Fintech2 days agoSimplifying VAT Reclaims with AI: A Conversation with Shawn Du, CEO & Founder of Revenir
-
Fintech PR5 days agoManifest Global Launches as a Visionary Education Investment Firm with Strategic Investment in Kaaiser