The telco expects to realise an $833,000 monthly improvement in its net cash flow.
The post ‘New era’: Why this ASX telco share is soaring 22% appeared first on The Motley Fool Australia. –
The All Ordinaries IndexÂ (ASX: XAO) is up 0.3% today, but one ASX telco share is leaving those gains in the dust, up a whopping 22.1%.
And no, itâs not Telstra Corporation Ltd (ASX: TLS), which is up 1.3%.
The ASX telco share in question is Vonex Ltd (ASX: VN8).
The microcap company closed yesterday trading for 7.7 cents and is currently trading for 9.4 cents, giving it a market cap just north of $31 million.
So, whatâs piquing ASX investor interest today?
ASX telco share soars on cash flow outlook
The final payment sees Vonex complete the full $31 million in consideration payable to Symbio.
The ASX telco share reported this will result in an $833,000 monthly improvement of its net cash flow.
Commenting on the milestone, Vonex CEO Matt Fahey said:
Our completion of the deferred acquisition payments to Symbio Ltd marks the beginning of a new era for Vonex with greater financial flexibility.
We are excited to deliver further growth in the year ahead, fully unencumbered by deferred acquisition payments, as we continue to advance M&A pipeline opportunities which offer the potential to expand Vonexâs customer base, geographic presence and product suite.
Vonex listed on the ASX on 13 June 2018.
How has Vonex been performing?
With todayâs intraday leap factored in, the ASX telco share is down 15% year to date. That compares to a 9% loss posted by the All Ordinaries so far in 2022.
Vonex reported some strong quarterly results on 29 July, which saw shares close 1% higher on the day. Highlights included record quarterly gross unaudited revenue of $10.5 million, which was up 81% from the prior corresponding period.
The post ‘New era’: Why this ASX telco share is soaring 22% appeared first on The Motley Fool Australia.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Symbio Holdings Limited. The Motley Fool Australia has positions in and has recommended Symbio Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.