Ladies and gentlemen, welcome everyone and thank you for joining Xref's Investor Update Conference Call. At the conclusion of the presentation, you will have the opportunity to ask questions by pressing 0 followed by 1 on your telephone keypad. I must advise that this conference is being recorded today, Tuesday, July 6, 2021.
I would now like to hand
the conference over to your speaker, Neiman Seymore, CEO and Founder, please go ahead.
Thanks, James, and good morning. Thank you for joining the Xref Limited Investor update call is Lee Martin Seymour. I'm the CEO, Co Founder and Director of Xrefs. I'll be providing an update on Q4 results for about 20 minutes this morning, and we'll then open the floor to any questions. We've got quite a few people joining us today.
So make sure you press the button and ask a question. And if we don't have time, then just contact me following the call. A big thanks to our wonderful CFO, James Solomon and his team For making sure that the 4 C is out fast, it certainly echoes the internal clarity that we have as a business on our critical metrics And allows us to get the update out to you all very quickly so that we can get on with running the business. Great effort, and thanks to James and his team. So let's start with a few highlights.
As a team here at Xref, we are very happy To announce that Xref has reached a cash flow breakeven, the expectation was certainly for Q4 this year, And we've signaled it most of this year. However, we have been very close all year. So the $5,800,000 in collections, together with flat costs, means that We have achieved a $1,900,000 cash flow surplus for Q4, and that has contributed to an overall cash surplus for the full financial year of FY 2021 of $250,000 So let's break out the P words this morning. We reported 800,000 in profit before tax for Q4. Obviously, unaudited, of course, until our annual report is out in Q1.
So a record $6,400,000 in sales in the quarter, together with a record revenues of $3,700,000 Overall, for the full financial year, costs are 33% less than last year and sales are 66% higher. But let's for a moment remove FY 2020 from our comparison and instead compare growth to that of 2019, which for us at the time It was a strong year. Xref has still grown 40% on 2019 results. Rapid ID has grown 2,200 percent since the day we bought it on the 1st July 2019. But the real kicker for us is that we have done this in FY 2021 with 26% less Expenditure across the whole year compared to 2019.
So where does that leave us? Well, Our bank balance today is $8,100,000 Our trade debtors left over from Q4 rolling into Q1 of FY 'twenty two of $1,900,000 So a cracking star for us over Q1. And the pipeline It's very strong leading into the Q1 of this financial year. So you might be thinking, well, what's happened? What's changed in the Xrefs business?
Well, recruiters and employers are simply searching now for better ways to verify candidates. Globally, people have a heightened sense of knowing who people are and where they've been, especially if they're So I thought I'd share quickly a journey of a new client So that you get to understand how these new clients are getting to us. Over the last few years, we as a business have Built a wealth of online assets such as free tools, thought leadership content that help Ask the business be found online by new clients. Once found, clients tend to, especially in North America, They tend to not contact us, but they check out our business with other platforms to check out our credibility, which We have focused on over the last few years platforms like G2, Capterra and Google. We're now the highest rated platform on all of those areas globally, and we're actually a leader within the G2 in North America.
So once these clients are satisfied by what they see, they may self serve their way into Xreflight Well, they might start to use our free tools like Template Builder. This is how we've been able to win and continue to attract some of the largest organizations in the world. We've been working on our digital first or you might call it marketing led strategy now for a few years and have proven this has proven critical as the world returns to work as we start to see, hopefully, the end of the pandemic. So let's turn now to a bit of outlook. What does our outlook look and feel like?
Well, The key focus for 2022 is a 3 parter: sustained profitability, extended product offering And further growth. Really nice to understand. So let me pick that apart a little bit further. In terms of sustained profitability, Keep in mind that when a client tops up with us, they are, in a way, forecasting their hires into the coming year. They predict our revenue for the following year and at the same time predict our Sales of those replaced credits once they're used.
Today, our annual revenue run rate is 15,000,000 In terms of client retention, it's also worth noting that in the quarter, 75% of our sales In Q4, we're from our legacy clients topping up and 25% was from new client acquisition during the quarter. This shows not only our level of retention and ability to continually grow our clients over time, but also The sophistication around how we are acquiring clients through various channels. Moving on to product. As detailed in the June presentation, we updated it again this morning with the fresh figures. And in our June presentation, we signaled that we would be launching a new platform that will include things like Internal pulse checking, exit survey tools and additional global checking services from partners that we've got around the world.
The new platform and its extended product suite is fully self-service and will, In fact, offer be offered via subscription, but will still include the pre- and postpaid credit models that you know and love. A staged product release will begin within Q1 to our 1300 customers around the world and then on to full production release within H1. You will find in the 4C that we continue to capitalize debt costs as we build out New platform and you will note that 30% of our headcount at Xref falls under the management of our CTO, Sharon Blesson. If you don't already know Sharon, Sharon has run our development team since 2016. She leads DevOps, Our development team, data science, testing and project management and also takes a lead in our R and D, our ISO Certification and our DBS Governance.
Sharon has managed numerous rebuilds of Xref, RapidID. She's built Xref Lite, Template Builder and People Search. She also has led the regionalization of our platform, including multi regional data centers and multi including multi regional data centers and multi language capabilities. So once launched, Sharon and I would be delighted to be able to showcase the middle offering to you once live with a few clients. Let's now move to growth.
What does this look like? I actually spoke late last night to one of our shareholders that was saying, it'd be really good to understand, Is the world just returning back to work? What is actually happening within the talent market? Well, I'm here to tell you that If you Googled it, you'd find a plethora of information right now. And in fact, the early 2020 will probably witness one of the biggest migrations of talent the world's ever seen.
Forbes Currently, we're calling it the talent revolution. I'll walk you through a few components to this. Yes, we are going to have Record returning workers. The UN has quoted that currently we have 200,000,000 unemployed globally that we have to work and getting back to work. Once our borders open, we will see a migration of talent.
Countries are getting on to the front foot of this. The EU campaign over the last month has been launched To attract talent into Europe post pandemic, the U. S. Chamber of Commerce has just launched a huge campaign to revise immigration or to help with the huge skills gap that exists within the U. S.
We're going to see record job movers. So people that have been in their roles throughout COVID I'm going to start to look. In fact, it's expected that 80% of employees will quit once restrictions lift. And salary pressure and pandemic proofing are signaled as major reasons for this. If you don't know what pandemic proofing means, It means that if you are currently working in a nonessential industry or nonessential part of the market within the pandemic, you may be looking to move to an organization that is a little bit more pandemic proof, such as government, health, not for profit, education, etcetera.
McKinsey, in the last few weeks, have said that 29% of employees won't return if they are asked to go back to the office full time. So companies need to get far more competitive in the war for talent. Remote hiring of remote workers in what has been coined Zoom towns. In terms of Zoom Town, if you haven't heard that phrase, it's very new. It means remote Affordable places to live but with city size salaries.
So recruitment will remain Very much remote. And for us, we have a long journey ahead, and the focus is certainly on talent. So how to wrap that up? How are we going to capture all of this growth? So you've heard me talk a lot over the last few years about Xref as a business changing from a sales led business to being more marketing led.
This gives us simply scale and speed to make a step change. Sales via channel partners has grown 110% this year, and in fact, it's now 31% of revenue. So there are 31% Our revenue comes from integrated clients that don't actually use our platform directly, but use us via their businesses, the usual platform. Our product launch, what does our product launch or our product extension mean to us? Well, it means that we are able to expand Our current addressable market, 10x, offering tools to check and measure feedback throughout the hire to retire journey Instead of simply sitting at that pre employment level and creating far more self-service features, including subscriptions that allow our customer success teams around the world to focus more on what's important when growing and Account.
So to summarize all of that, we at Xref are at inception point In product, marketing, cost base, addressable market, 0 cash burn and 1 almighty opportunity that As a team, we are very excited about. So I'd like to allow us time this morning for some questions. So if everyone is ready, I'd like to open the floor, James, to some shareholder questions.
Thank you very much. Ladies and gentlemen, we will now begin and answer session. There may be a short silence whilst participants register and names are captured. Once again, that's 01 to register and 2 if you wish to cancel. Our first question is from Stella Wang.
Stella, your line is open.
Hi, good morning. Great results considering how much The company has been challenged as well as benefiting from COVID. And then just going forward, are you comfortable to give the
Ladies and gentlemen, we've just lost the line of Lee Martin Seymour. Please continue to stand by, and the conference will resume very shortly. We now have Lee Martin Seymour back online. Please resume.
Hi, there. Sorry, for some reason, I got cut off. But we're just waiting on questions, James.
Thank you. The first question was from Stella Wang. Stella, would you be able to repeat your question, please?
Sure. Hi, Lee. Welcome back. I was just saying, in the table, you're considering You guys suffered as well as benefited from COVID. So my question was, are you Comfortable in giving a sustainable growth rate through next 3 years of Hi, pushing you guys forward and backwards on the balance.
Are you comfortable to give us a rent?
I think whilst the Europe and North American Regions are still very much in the grip of a pandemic. And even Australia now Have, again, further restrictions. I think, albeit, Yes, we are delighted with the great results that have been released this morning. I think it would be premature To really be bold and beautiful to give 3 year growth rates moving forward, I think it would be prudent to continue to make the decisions that we've been making. And let's revisit that question, Stella, when the world returns to somewhat Normality or a level of certainty, but certainly, we have growth as A major factor of the business, I think, as I said, we're at inception, and I think that we're looking forward to obviously continuing that step change.
Thanks. That's very nice. I just got another two questions, if I may. The first one is to understand the current labor market situation a bit better. Do you see a client struggling to find the desired number of candidates?
For example, they normally want 10 candidates to choose from for 1 position. At the current stage, do you see them have to just live with 5 or 6 instead of the 10?
What a great question. I've been recruiting for 25 years, Stella, and I've never had 10 candidates for a role. So I think at the moment, what we can say is that It's neither a candidate led market or a client led market. It is a confused market. And if you do have a line of candidates waiting to be interviewed for a role, some of those will be Current job seekers that have not worked or been let go for various reasons through COVID.
Some are
current workers that are looking to make A change now that the market has become a little bit more certain. The challenge actually to an employer is to work out Who's who in Brazil? The only way they can do that with the amount of candidates on the market is to take proper references. So the only way you can make sure a candidate can do the job you're hiring them to do is to check whether They have done it in the past. Now the unfortunate thing is that there are candidates that aren't working right now who lost their roles, Not because of the job they did, they were probably incredible, but they lost their roles because the company they worked for could simply not survive in the market, and so they are available.
But there are also candidates on the market that got let go because of their performance. And then there are people that have been retained throughout COVID for various reasons. So it's really tricky right now on the labor market to understand who you should actually hire. And to be honest with you, Xref loves the underdog. Xref loves the candidate that Has had a long tenure, has not been on interviews for 10 years, hasn't got an up to date resume, but It's an absolute diamond in the rough.
And the way that we can bring those underdogs to the surface and allow them to shine It's to bring their references to the employer as fast as we can and to make sure that they can make an insightful hiring decision on that person. So Does that sort of give you an idea of what recruiters and employees are going through right now?
Okay. Thanks for that insight. The last one is about the subscription model you're going to add. So currently your subscription revenue is on from People Search, I assume. And going forward, so what's your pitch to your customers to change from topping up as you go credit model to a fixed,
Okay. Great question. Stella, we have We've been playing with subscriptions now for a couple of years. We have an array of clients that pay us a subscription to gain access to the client Sorry, to the platform. We reverse engineer our credit caps into a subscription to allow them to do that.
It really does suit the recruitment market where you might have 15 or 20 people recruiting 1,000 people a year. They would certainly like to pay as they go. So we have been playing with subscriptions. The new platform will have Additional services such as exit checks exit surveys and post checks built within it as well as additional checking services. So my answer is that we'd be supplying a client anyway for them to interact with us.
So you will be able to subscribe to gain access to the platform. As part of that subscription, you will have a capped amount of Referencing credits, you will be able to use the exit and survey tools as part of your subscription. And for any additional checks that you take along the way, they'll be charged to you in a postpaid fashion. So Really, with a platform that is being extended like ours, current clients will move across Pretty easy, in fact, we've already been demoing the new platform to current enterprise clients around the world who I've already shown a strong appetite to move straight into it. To move from A prepaid credit scenario to a subscription agreement means that they are, in fact, getting Far more products to use, they will have a cap, but they also have access to far more additional services for additional checks.
So really, we're doing all of it stellar. However you want to Interact with Xrefs and however you want your commercial agreement to be set up, we'll be able to handle it. It's certainly something we've been playing with around the traps. We've been postpaid for checks for a while now. We have subscription clients.
We have prepaid clients. And it's something we understand very, very well. In fact, as part of The new build of the new platform, we are we have architected a brand new billing system to run alongside it to cater for Whatever anybody wants to do, hopefully, that answers your question.
It does. Thanks a lot.
No problem. Thanks, Stella.
Our next question is from Jonathan Shane. Jonathan, your line is open. Good morning, Lee. Firstly, congratulations A phenomenal result. You guys have done an awesome job over the last 12 months.
Just looking at the numbers, Australia seems to be going extremely well with some terrific richer customers that you Have signed recently and more importantly than year to year revenue we continue to generate. So my question, which I believe will To have a significant impact for the company in the long term is how you grow the international business and Isn't now the time and the opportunity with the realignment of jobs within Europe and the U. S. A huge opportunity to Rune, you kick the business along.
Yes. I've got little to say about that. You encapsulated it beautifully. Our reason for growing globally has always been Because we have an appetite to sell to clients that are an awful lot larger than they are at home in Australia, We have an average employee rate of anywhere between 5,000 9,000 employees in Australia For the big end of town, if you include small businesses, we're about 1600 employees. But if you move to Europe, you're about 12,000 average employees.
And if you move to the U. S, you're about 16,000 average, including small businesses. So really, for us, the opportunity growing globally has always been to be able to sell in exactly the same way The markets in the Northern Hemisphere work very differently. They certainly focus on the belt service. In North America, if you have appetite to change the way your business is doing references, Then you will Google.
It's important then for Xref to be found, as I said. And then you will certainly check That technology platform on a referral site, and if you please do go and have a look at us on G2 and Capterra today, Have a look at how Google reviews. This is very meaningful because what it does for us is turn that online customer into a lead. And then that lead can be converted if it's enterprise by one of our sales Sales account execs around the world or even the thousands of sales execs within our channel partnerships that might get that lead because that customer that's looking is current customer. So You're absolutely right, Jonathan.
We are leveraging the head out of our channel in North America and Europe to make sure that we're accessing those opportunities. We're making sure that we're now and we're making sure that despite having competitors, a couple of competitors in North America, We're making sure that we're the highest rated, and we're lowering the barriers to entry. We have you know, we have some significant clients in North America who we worked alongside to build the exit survey tools. So I think that it's going to be very exciting to be able to offer the North American and European market Far more schools as they emerge out of pandemic. I've sat for 3 months during COVID In the office I'm sitting in now with papers all over the floor, sketching out the new product And how it would work in terms of workflow.
And I handed it over to Sharon and the dev team last September, and it's been a mammoth build. So we haven't been sitting on our hands just looking at the figures during COVID. We've been preparing Tools and products that have never been seen in the market that will bring insights to the market that have never been seen before. And we bring it at a time where it's most meaningful and those clients that have let go an awful lot of people through the pandemic and looking at better ways to understand the skills in their business, the skills that are leaving their business and the skills that they could possibly attract back. So it's a very exciting time for us.
I think July 1 was day 1 for the business, and we are right on
Thanks, Suneet. Thanks, Jonathan. Our next question is from Craig Chapman. Craig, your line is open. Thank you.
Thanks, Lee, and congratulations on the milestone. Just on capital management, you're obviously seeing on about $8,000,000 in cash now. Do you have ideas of What you're looking at doing? Obviously, you're rolling out overseas and there's expenditure involved with that, but Probably too premature to pay dividends because you got no franking credits, but is there a use of the capital It is beneficial. I don't know if you can offset some of the debt or repay some without penalty or Looking at maybe a wholesale partner or a competitor in terms of an acquisition.
So I think All certainly conversations that are regularly had throughout the business. I think, again, I'll press I'll press the button on the pandemic. We are certainly not out of the pandemic. And I think it's a time to Be prudent and be laser focused on what we need to achieve. I think with our Cost based with our marketing strategy, with our product release, We have a very clear, probably the clearest strategy that we have ever had leading into FY 'twenty two and 'twenty three.
We know exactly our 3 sensitivity budgets have been written, and we know exactly What we are set to achieve this year, and it's about execution and keeping focused. It's Very good to have those resources behind us. We took on the debt in June In July last year, in a time where the market was very uncertain, in fact, We haven't utilized any of that debt and the $250,000 of cash surplus across the financial year is On top of that, you'll see that we noted our bank balance movement in the commentary this morning. So it hasn't been used, and it was put there as a real safety measure because globally, the market just didn't know what was happening. So I'm very fortunate to be partnered with the team over at Pure.
They've helped our business in great ways since we partnered with them. Yes, although we service the debt very well, the debt was structured exceptionally well at a premium to market. Yes, obviously, the conversation always happens around reducing that debt on the books. Right now, it's about executing on our agenda for the year. And I think as we move through each quarter, We're very excited about what's to come.
Okay. Thank you. Thank you, Kai.
Our next question comes from Luke Winchester.
Hi, Lee. Hope you're doing well, mate. Thank you, everyone. Fantastic result. It blew my expectations down a little water, so congratulations there.
Just a couple from me.
First one, look, I did have to duck away at the start. So if you've commented on this, I apologize. But you gave the April Dave, and then obviously working back from the result you've given, my rough numbers are sort of like 50% month on month growth. Like What were you seeing in May June there? Was it new customers?
Was it existing customers expanding? Was it a bit of end of financial year, use of budgets? Just a little bit more because that growth rate is obviously very impressive. Yes. Look, I think I sort of touched on it.
75% of the sales that were done in Q4 were from clients that we have had for beyond 2 3 years, which is really where you want to see it. During COVID, we separated our business into 2 very distinct groups, nonessential and essential. Nonessential being travel, hospitality, retail and essential being Health, Government, Education. At the depth of our of Code of the COVID pandemic in May 2020, the essential businesses accounted for About 60% of revenue and nonessential was about 40%. And overall, the usage of credits reduced to about $500,000 across each month or across May.
Wind that forward to the June figure. We're now seeing about $1,100,000 $1,200,000 worth Credit being used. 60% now is coming from nonessential businesses, which is great because that tells us as Civilians that our organizations are getting back to work and 40% is still coming from nonessential. However, that nonessential business has grown 25% to 30% during that time. The companies such as Qantas and Crown Casinos and these non essential services hotel groups that we have I've come back to work.
So I think the new business has still been Exceptionally strong. And during the quarter, we had between 80 90 New clients. We don't count our Express Light customers in there. We wait until they become Substantial Payers. So the clients that we're attracting, as described in the 4C, are far more enterprise.
And around the business, we are now actually connecting the dots. So we're seeing companies such as Capgemini use us in Three regions around the world. Now their talent acquisition managers might not be connected. So we are going out there and And while you're using this in Norway and the U. K.
And Australia, could you use us in your business in Sri Lanka? So We are really focusing on connecting the dots with large global customers that are using this in certain regions and building that growth out from there. What you're seeing is the business is just maturing on the foundation that we've built over the last 11 years. Hopefully, that answered your question. Yes.
No, fantastic. And just a second one for me on the cost side of the business. You've obviously done a fantastic job of rightsizing that and maintaining that growth, which is fantastic. You've sort of been around that $3,500,000 a quarter now for a couple of quarters. There's been a few comments on the call about new products and international What do you see that doing to the cost side?
Do you think you'll be around that 3.5% for the foreseeable future? Obviously, the business Right. And you'll have some incremental stuff there, but just as a general comment. I can certainly suggest to you that our cost will remain flat and our focus is to bring in and 2022, again, in a cash surplus in a way. So I think that you can assume that they all remain flat.
There may be fluctuations throughout the year, but ultimately, Our strategy includes things like self-service, where our customer success team can remain the same size but get involved in far better areas of growth with our clients. And an example of that is that we currently build Our bespoke questionnaires on behalf of our clients. However, with the new platform, our clients will be given not only the ability They'll be able to build their own custom questions. I know that sounds simple, but We deliver our service in every language around the world. So there's technical complications with that.
But what that means is that it will free up thousands of hours per year for our customer success team to really do a deep dive on ways to Grow those clients in more meaningful ways over time. And then in terms of being marketing led, We're not going to need an army of salespeople that knock on the door and pound the pavement. We're doing it in a far more sophisticated way now. And that's why I urge you, please, Google reference templates or Google Reference collection or automated reference check, check us out on those referral sites. We are our return on investment and the amount it Costs us to acquire every client these days far outweighs what it used to.
That's helped along by the market waking up to what we do as a business and the value we add. And it certainly is driven by the amazing work that Karina, our Global Marketing Director and the marketing team do to get our brand out there and to bring home A record number of leads every month. Yes, that's brilliant. I mean, I've done that before. I've Googled the template Questionnaire, you do come up as the top results, so that's still great.
Just one last quick one for me and then Jump off just on the Rapid ID. Now I remember the crypto know your customer AML stuff was a big boon for that. Off the top of your head, do you know the split in crypto v, non crypto in Rapid IB this quarter? Look, I think that it's been a very interesting time watching Elon Musk on Saturday Night Live Announced his love of a particular cryptocurrency, and then all of a sudden in Australia, people are Running to 2 of our clients to get ID checked and open their accounts and then that echoes in the revenue that RapidID are doing. I It's been tremendous to see that.
I think the job is actually not to get too excited over that particular market, But to trend very carefully in the amount and investment that you put around it, I think we're making the right about RapidID. We've really enjoyed the growth. We brought RapidID to answer a big question for the HR clients out there. And that was to check if somebody is, in fact, who they say they are. And that has been a great growth within our business.
And companies around the world are becoming far more have far more appetite to So we were very before Before we go or ahead of time, bringing in ID Services into HR, I think it's certainly going to grow for us as we move through and out of the pandemic. But on the side, we have this API driven link into the DVS within Australia, we're one of a handful of Supplies the DBS in Australia. We're enjoying that on a few different levels. We're wholesaling it out to partners of ours. We're using a direct product through RapidID, and we're also integrating it into Xref.
RapidID will be further and more richly integrated with the new platform with Xref because there's far more checks that we could do Apart from ID through that business, and I think you'll find that RapidIB as a product We'll become far more holistic within the Xref brand. And we will put crypto on a watch list and we'll enjoy it and Monastery as we have been doing over the last 18 months, but in a very prudent way, leveraging it as much as we can and at Same time, certainly, managing it in a very prudent fashion. Does that answer your question? Yes. No, it doesn't.
And that's fantastic. It's probably how I would handle as well. Obviously, it's a space where you can have very differing views on the future, but I sort of agree with that approach. I'll say congratulations again and leave it there mate. Let someone else take it.
Thank you very much.
Thank you. Our next question is from Mark Wenzel. Mark, your line is open.
Good morning, Mark. Congratulations on the result. I was going to ask about the Rapid ID as well. But obviously, that was well answered in the previous question. So we just want to see I mean, if these conditions are the same, I guess, for the next the next couple of quarters.
I mean, again, we didn't want to sort of talk about the 2 year growth rate. But what about over the next couple of quarters? Is it going to be sort of similar Right. So what we've had, I've said this in the last quarter? Or how do you sort of say that?
So I sort of indicated to it, I think, what we've really got to remember is That $6,000,000 in revenue was not postpaid. That was clients paying for credits for next year. So they literally just waved the flag and said, we are on a hiring Upturn for 2022. You've got clients really sort of sitting down and Figuring out what their hiring levels are going to be for next year and buying credit to match that. That's the biggest indication I can give you to the level of growth.
And When you look at the cohort analysis, you'll see that we have very even revenue throughout all of the cohorts Stretching back to 2014, we retain our clients really well. And For the Australian clients, they tend to top up at the end of financial year because they're using their budget. They don't lose it, and that they can use it on a service that benefits their next financial year. So we all might do very well in this quarter. However, I can tell you, looking forward, and I've already indicated that the pipeline looks very strong, The lead flow is very strong.
And the reason we get these figures out and have these discussions early on is so that the rest of us can get back to run-in the business because it's a very busy time here at the moment. But in terms of forecasting, That's as much as I can say at the moment. No problem. I appreciate it. Thank you.
That's all right. Thank you.
Thanks a lot. Our next question is from Yuri Feltz. Yuri, your line is open.
Thank you, and hello, everybody. I've had a few questions on Potential litigation on overhang and also on the exceptionality again of the last quarter, please. Can I please start with A question regarding Tim Griffith? He left your company, I think, in March. And I think he want to obtain the external legal adviser.
So So I don't know if you've done that and if you could update us on that. So is there any is that legally everything is clear? Or is there some Litigation pending or in the pipeline, could you please start with that? And then connected with that, if a board member leaves, it's not unusual for him to So are you aware of any things going on happening or that may happen? Is there an overhang with regard to what happened in the last quarter.
Noah Henglisk, if you could take that question, please. Sure. Great question. So as everybody is aware, Tim and I built the business over the last 10 years. Tim is a friend of mine, and We had a scenario in March, which you can all go back and have a read of.
At the time, We demonstrated the how well the Board has been put together because the decision making at the time was Flawless, and I can confirm that as of the 30th March, There is no overhang of any litigation. Tim was good enough to escrow his shared until next year. So I wouldn't worry about any overhang. In fact, It was nice to communicate with Tim an update of our figures. Tim's remains, together with myself, a major shareholder in the business.
And so hopefully, that settles anything there. But we documented what has happened within March, and certainly, the business has moved on since then. Okay. That's helpful. Thank you very much.
And the second question on the Well, on a huge cash receipt jump you observed in the last quarter, we've been holding at €2,500,000,000 $3,000,000 and now starting with €6,000,000 I have understood your arguments with regard to postpaid earnings, not postpaid. But maybe you can elaborate a little bit more, analyze a little More on how exceptional that was, maybe indicate what your best guess for the current quarter is, If that is extendable or repeatable or may normalize to solve a little bit, I'd like to understand, for example, if these cash receipts, if there was a concentration Strong concentration on one specific customer that is likely not repeatable in the current quarter Or if there have been cash receipts from non customers in incubator debt Or is there seasonality or anything else analytically that gives us a clue about is that the new normal All that may go down a little bit in the next 5 or 2 quarters. Okay. So when we left March 30, We rolled into Q4 with about 1,300,000 in debtors. So obviously, that gave us a head start for the month.
What you also need to realize is that when we invoice a client, they don't actually receive their credits until they pay. So our collections are can be as quick as 7 to 14 days. So when we're making a sale, We're receiving the cash very quickly. We're very good at collections. And then moving into next quarter, I've already Indicated that we've got 1.9 in trade debtors moving into Q1 as a result of sales made in the last few weeks.
So and tied into that also is, yes, a seasonal a small seasonal Fluctuation in Australia and New Zealand of people topping up before the end of financial year so that they can utilize their budgets and purchase credits for use next financial year. But in terms of any major client payments, no, not So we do not have any, I suppose, in class and as FATCA clients, we don't have any of those within our business. I think that you explained it well from the follow-up. Thank you very much for Thank you. Thanks for your questions.
Thank you, Yuri. Final question at this time is a follow-up from Craig Chapman. Craig, your line is open. Thank you. Sorry, Liam.
I might have misheard that the debt you put in place as a safety measure in June and July last year. Did you say you hadn't used any yet?
Well, our balance is 8.1 We received 4.7 after costs without debt. So it would you could just assume that it's still sitting in the bank balance. Okay. So it is drawn? It's there.
Yes, absolutely. It's part of our bank balance, yes. Yes. Okay. And it's fully drawn down?
Correct. Correct. Yes. No, that's fine. My pleasure.
Thank you. We appear to have no further questions at this time.
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