ASX:WRK
WRKR Ltd
Investment Summary
The fund managers believe WRKR Ltd. presents a compelling growth opportunity, driven by its innovative regulatory technology solutions aimed at simplifying workforce compliance for Australian businesses. In their opinion, WRKR’s integrated platform, which streamlines everything from onboarding to payroll and superannuation contributions, is well-positioned to benefit from significant regulatory reforms, particularly in the superannuation and payroll sectors. The fund managers are particularly optimistic about WRKR’s expanding partnerships, especially its recent collaboration with MUFG Retirement Solutions, which provides access to a vast network of potential users, including major Australian super funds. This partnership, along with increased regulatory scrutiny, is expected to drive higher transaction volumes and greater demand for WRKR’s compliance automation services, which should result in a substantial increase in average revenue per user (ARPU).
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Manager
Saville Capital
Date
30 Sept 2024
Price
$0.05
Medium
Monthly Report
Commentary
Saville Capital Emerging Companies Fund believes WRKR Ltd presents a compelling investment opportunity due to its innovative regulatory technology solutions that streamline workforce compliance for Australian businesses. The fund manager initiated a position following WRK's successful $6.6 million placement, recognizing its significant revenue growth of 45% to $9.6 million in FY24, driven by expanding SaaS licensing and transaction-based services. WRK's recent partnership with MUFG Retirement Solutions enhances its access to major super funds and aligns with upcoming regulatory changes, positioning the company to benefit from increased transaction volumes and compliance automation. With over 500,000 users on its platform and potential access to 7 million more, WRK aims to drive recurring revenue growth while targeting sustainable positive cash flows by FY26. The recent capital infusion will accelerate contract delivery and support organic growth initiatives, further solidifying WRK’s competitive standing in the regulatory landscape. Given its strong management team and favorable industry tailwinds, the fund manager sees significant potential for share price appreciation and growing institutional interest.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.