Once valued at $500m, Till Payments is teetering on the brink

afr.com:

Till Payments is in trouble, the latest in a string of local payment companies teetering on the brink. Its board, however, is confident that existing shareholders will step up to keep Till afloat as its fast-growing revenues turn into profit. Without additional funding, it has little chance.

“I’ve seen this story a number of times. When the market no longer supports the venture capital side of the business, which is fast-growing revenue but an unprofitable business, it puts these companies in a difficult spot,” said Matt Davey, the Las Vegas-based Australian entrepreneur who has found himself on the board, and a major investor in, Till.

Investor and board member Matt Davey says Till is considering another capital raise and is hopeful existing shareholders will “re-underwrite” if required. 

“Loss-making businesses survive on support from their shareholders, both current and future investors, and that is where Till is today. It enjoys that support, and so we are comfortable it is a going concern.”

The company’s accounts, on the other hand, paint a bleaker picture. Till posted a loss of almost $141 million in the 12 months to the end of June last year, according to filings recently lodged with the corporate regulator. Revenues rose 253 per cent to $51.2 million, but expenses grew faster, widening the loss from $136 million recorded one year earlier.

The accounts show Till had $36 million in cash, and had burnt through $55 million on day-to-day operations in 12 months. It is already cutting costs by around $8 million a year, but warned that there was “material uncertainty related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern”.

Till is a processing platform for