# RFL - Rubik Financial



## Waspi914 (19 January 2008)

Any ideas behind this Perth company providing low cost, hosted ‘bank in a box’ services.

Board includes Craig Coleman (Director) who was a former Managing Director, and current Non-Executive Director, of Home Building Society Limited and now a Senior Advisor and Director of the Wyllie Group Limited, Chairman of boutique fund manager Viburnum Funds Pty Ltd and Executive Director of Bell Potter Group Limited.

Also Ian Hunter (Director) who was a founding and ongoing Non-Executive Director of E*TRADE Australia Limited, a wholly-owned subsidiary of ANZ Bank who has over 25 years experience in banking including Director and Executive Vice President of Bankers Trust Australia.


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## springhill (20 April 2011)

Have taken a look at RFL, no post here since '08.

The 2 directors mentioned by waspi haven't changed, but Andrew Moffat is also on the board, who has experience in mergers and acquisitions, and also equity raising. He is a non-executive director of Cash Converters.
There seems to be some smart heads steering this one.
Interstingly, his wife(?) has been buying 500,000 shares on-market recently.
http://www.asx.com.au/asxpdf/20110408/pdf/41xygx9m6nmqy0.pdf
http://www.asx.com.au/asxpdf/20110407/pdf/41xxjmlf4dk23c.pdf

RFL has also completed an on-market share buy back of 16m shares, between the prices of 6.5-5.4c.
http://www.asx.com.au/asxpdf/20110324/pdf/41xn1dtq7bftmy.pdf

They have a current cash backing of 7.5cps, with a strong cash position of $17.2m.

Major Activities for the half are (from the half yearly report),

At calendar year end Rubik had completed the development of its new generation collections and
internet banking systems and implemented its first bank-in-a-box customer.
The post – GFC environment has seen a subdued level of capital investment spend from within our core customer base of credit unions, building societies and banks. Notwithstanding this, revenue levels were in line with the previous corresponding period.
In January, with the completion of major development initiatives, Rubik has restructured by reducing development resources and increasing the number of staff allocated to sales and customer support.
During the first half Rubik also profitably exited two listed equity investments

Is anyone else watching this?


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## springhill (20 May 2011)

Rubik has appointed John Giddings as interim Chief Financial Officer and Company
Secretary. Mr Giddings has significant experience as a CFO of ASX listed software
companies, having served 6 years with VeCommerce and 3 years with Objective
Corporation. Vecommerce, in partnership with Telstra were successful in selling a speech recognition service to NAB.
Articles here.
http://www.financialstandard.com.au/news/view/25203/
http://speech.salmat.com.au/be-educated/nab-selects-vecommerce

Good to see them add someone who has experience in getting technology into the banks.
ASX anny here.
http://www.asx.com.au/asxpdf/20110509/pdf/41yjwy2f6wt3zs.pdf


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## Julia (20 May 2011)

With apologies for interrupting this thread, springhill, can you clear your PM Inbox please.


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## springhill (16 May 2012)

Have continued to hold RFL and slow accumulated a few more over the past few months. My faith in Rubik finding customers for their technology product finally looks to be paying dividends.
Hopefully more of this in the future and look forward to finding out who the undisclosed customer is.
Still below cash value ATM, with projected increased revenue due to this contract!

http://www.asx.com.au/asxpdf/20120516/pdf/42698106bqhljg.pdf


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## springhill (25 May 2012)

Has RFL appeared on anyone's radar lately, considering the first major sales announcement, buyer volume increase, volume of share turnover up, SP increase to 6.7c, potential future earnings increase, announcement of sale customer to come and potential future sales?
All good reasons to investigate this company


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## springhill (6 June 2012)

RFL released sales disclosure on 1st June (apologies for tardiness, been OS) regarding a system upgrade to an Indonesian based top-10 financial institution.

http://www.asx.com.au/asxpdf/20120601/pdf/426lvf8s8gfb32.pdf


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## springhill (13 June 2012)

RFL has entered into a trading halt regarding a potential acquisition.
http://www.asx.com.au/asxpdf/20120613/pdf/426svgfg7jghx1.pdf

Last closing price 8.5c. Now marginally above cash value, with sales in the bank and potentially more to come


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## springhill (14 June 2012)

RFL release out today on the potential acquisition, seems as though terms are still under negotiation so a resumption of trade tomorrow is unlikely.
Their target is a financial services software company with a *strong market position and existing customer base*.

http://www.asx.com.au/asxpdf/20120614/pdf/426v2d4hrnjh9n.pdf


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## skc (14 June 2012)

Hi springhill, thks for alerting me to this little company. I took a small position last month after some research. 

I like this company because it was trading below cash backing yet has a profitable and growing business on top. It was pretty low risk even in the current market climate. 

The acquisition news has too little detail now to make any judgement, although I do note that the Share price jump before the halt means someone leaked something...


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## burglar (14 June 2012)

So surprised that no one has posted a chart!


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## herzy (15 June 2012)

damn seems like i missed the ball on this one...


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## springhill (15 June 2012)

herzy said:


> damn seems like i missed the ball on this one...




 Honestly dont believe this to be the case. The long time flatness of the SP has been due to long term product development and minimal market penetration. Sales have just started to roll, revenues from these sales will not roll in until Q3 FY 2013. Only just above cash value with future revenue increase. Further potential product acquisition plus the hope of further market penetration. That all stacks up quite nicely.
Just because you didnt buy at the bottom doesnt mean you cant catch any further potential SP increase. Are you better off buying at 5c with no positive news, or 8.5c with positive news rolling in? Have you really missed it?


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## herzy (15 June 2012)

Haha not sure - haven't looked at this stock, the chart above just scared me  

I'll do some research and get back to you - good on you for maintaining this thread by the way! All kudos to you.


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## springhill (15 June 2012)

herzy said:


> Haha not sure - haven't looked at this stock, the chart above just scared me
> 
> I'll do some research and get back to you - good on you for maintaining this thread by the way! All kudos to you.




I look forward to hearing your thoughts. Best of luck!


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## herzy (16 June 2012)

I'm not particularly good at evaluating the market need for internet banking systems, but it seems the team at RFL is... So happy enough to take your and their word for it. Cash backing in December was 7.5c which is quite nice, consider as you say that it seems much of their revenue will be coming through in FY13. I especially like how much they were able to reduce their operating costs. Everything I've seen so far looks positive - any chance you could point me in the right direction for researching more into this company? I find it quite hard to evaluate their competitive value/future prospects and determine an IV. 

Thanks again, certainly seems like a very good company to get at least a small stake in.


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## springhill (16 June 2012)

herzy said:


> I'm not particularly good at evaluating the market need for internet banking systems, but it seems the team at RFL is... So happy enough to take your and their word for it. Cash backing in December was 7.5c which is quite nice, consider as you say that it seems much of their revenue will be coming through in FY13. I especially like how much they were able to reduce their operating costs. Everything I've seen so far looks positive - any chance you could point me in the right direction for researching more into this company? I find it quite hard to evaluate their competitive value/future prospects and determine an IV.
> 
> Thanks again, certainly seems like a very good company to get at least a small stake in.




I am not sure if this is the area you are talking about, but if looking for free information on RFL and a small market comparison you can try www.investsmart.com.au you will need to sign up to a free membership. Or proactiveinvestor has some decent information too.


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## springhill (16 June 2012)

An article depicting the potential increase in retail banking spend over the next 4 years. Nothing directly linking RFL but looks to be a favourable growth area.
http://www.bicsi.com.au/index.php?o...amid-economic-turmoil&catid=1:enews&Itemid=18


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## burglar (16 June 2012)

herzy said:


> Haha not sure - haven't looked at this stock, the chart above just scared me
> ...




Oh, how I lament the passing of semilog scaling on financial charts. 
They look so much more appealing (less scary) to buyers!


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## springhill (19 June 2012)

RFL has provided an update on their potential acquisition. The target is Coin Software Pty Ltd.
Rubik now in exclusive negotiations with Macquarie's Banking and Finance Services Group for the purchase of Coin.

http://www.asx.com.au/asxpdf/20120619/pdf/426x4qgfxzg9rk.pdf

A quick google search of Coin turned up the following links;

http://www.macquarie.com.au/mgl/au/advisers/grow-business/planning-software/coin

http://services.coinsoftware.com.au/press-hub.html

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=22388464

http://www.financialstandard.com.au/news/view/21653


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## springhill (2 July 2012)

*RUBIK ENTERS INTO A CONDITIONAL AGREEMENT TO ACQUIRE COIN SOFTWARE PTY LTD – LEADING PROVIDER OF FINANCIAL PLANNING SOFTWARE
*http://www.asx.com.au/asxpdf/20120702/pdf/42754q3wb8l23y.pdf
● STRONGLY EARNINGS ACCRETIVE
● BROADENS RUBIK’S POSITION IN THE FINANCIAL TECHNOLOGY MARKET
Rubik Financial Limited (ASX: RFL) today announced a significant expansion of its activities in Australia by entering into a conditional agreement to acquire COIN Software Pty Ltd from Macquarie’s Banking and Financial Services Group (Macquarie).
COIN is a respected technology service provider in the Australian financial planning software market with an established client base and leading position in the institutional segment of this market. As part of the agreement, Macquarie will continue to service the majority of COIN’s boutique (independent financial advice) clients, under a licence from COIN.
COIN expands Rubik’s wealth offering to the financial institution market and creates significant scale across the group. Rubik sees advantages that come with scale both for its own operations, as well as the benefits that will accrue to COIN’s institutional clients through focused product development.
Craig Coleman, Chairman of Rubik, said, “For some time, Rubik has been assessing acquisition opportunities and with COIN found an opportunity that provided the combination of first class products, clients, and capability that fitted within our market.
“COIN is an industry leader in financial planning software for financial institutions in Australia due to its client base, breadth of product, dedication to support and innovation. We expect that as a result of this acquisition we will be able to expand our overall offering and allow us to leverage our strengths in mobile and internet into
COIN’s financial planning software offerings.
“Our initial focus will be on delivering already committed product development programs and preparing our products for changes that flow from the Future of Financial Advice (FoFA) reforms. Beyond this, we will review technology opportunities based on customer feedback and market opportunity, whilst ensuring
ongoing support to clients,” Mr. Coleman said.
Tony Graham, Head of Macquarie Adviser Services, said: “We believe the proposed separation of COIN to focus on institutional and boutique businesses as two distinct and independent offerings, creates a great opportunity for the growth of both of these specialist financial planning software businesses.
*Strategic Highlights*
The acquisition:
- expands Rubik’s product offering in wealth to our target customers, institutional banks; and
- provides significant customer, earnings and staff expansion to Rubik’s existing business, which will add scale to the group.
*Structure*
Rubik has entered into a conditional agreement to purchase 100% of the share capital of COIN Software Pty Ltd, the owner of COIN Software and all associated intellectual property rights, from Macquarie’s Banking and Financial Services Group.
Macquarie will retain the contracts with boutique financial planners for the distribution and ongoing development of financial planning software to this segment, under a licence from COIN.
Rubik, at completion, will pay $23.75m in cash to Macquarie, which shall be funded through a combination of existing cash reserves and bank debt. In addition, Rubik will pay, 12 months after completion, a further amount equal to COIN’s net tangible assets (NTA) at completion, which is not expected to exceed $3.0m.
*Financial Considerations*
1. Existing COIN pro-forma EBITDA $5.2m (year ending March 2012) *
2. COIN recurring revenue of 85% will lift Rubik’s overall recurrent revenue base from 45% to 67% *
3. The purchase price paid at completion, may be subject to completion adjustments, but will not exceed $23.75m. In addition there will be a further NTA adjustment payable in cash 12 months after completion
4. Rubik will fund this acquisition through existing cash reserves and bank debt

* Financial metrics are for the Coin institutional business being acquired including pro-forma expenses for corporate costs but excluding the boutique business not acquired


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## springhill (3 July 2012)

News of RFL's acquisition hitting the media.
http://www.investordaily.com/cps/rde/xchg/id/style/14578.htm?rdeCOQ=SID-0A3D9633-47F36CB9

Interestingly,
"As well as making offers to existing Coin staff, he said Rubik would also announce a new hire to head up its part of Coin.
'We're in discussions and close to finalising that and that will be a well-recognised name in the industry,'"
​


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## springhill (7 August 2012)

*Agreement reached for Bank-in-a-Box system

*
Rubik today signed a contract to provide a Bank-in-a-Box hosted core banking system to a specialist provider of finance. The client reviewed all major core banking offerings available in Australia, and determined that Rubik would be a trusted partner to deliver a complex project moving from an inhouse developed system to a world class banking package.


Contract confidentiality precludes specific detail, but Rubik advises that:
- Implementation will start after a design phase that commences this quarter, and system ‘go live’ is planned for November 2013.
- The deal size will make them one of our top 20 customers during the project.
- The client will be using a variety of consumer and commercial banking modules and products.

Rubik CEO, Brent Jackson says “We are glad to welcome another Bank-in-a-Box customer and we look forward to making it easier for their customers to bank with them.”


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## burglar (8 August 2012)

springhill said:


> Agreement reached for Bank-in-a-Box system




Going hard today!!


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## springhill (8 August 2012)

burglar said:


> Going hard today!!




The concern with RFL may have been the debt being undertaken to acquire COIN. Further sales news will increase RFLs bottom line, hence increasing their ability to fund the debt, mitigating concerns.
We still have no knowledge of who the last 3 sales have been to due to confidentiality. Will be interesting to find out.


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## herzy (8 August 2012)

terrible timing! i have been watching this company for a little while, and was intending to buy in but didn't have the cash! sold off another share today in order to get some cash for this company, only to see it jump by 20%... sigh back to waiting...


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## springhill (8 August 2012)

herzy said:


> terrible timing! i have been watching this company for a little while, and was intending to buy in but didn't have the cash! sold off another share today in order to get some cash for this company, only to see it jump by 20%... sigh back to waiting...




Sorry to hear that mate. Sales from RFL pretty much come from out of the blue so this stock can be unpredictable. The question is will it hold these gains? Each sale must put further confidence in holders, possibly forcing floor price up permanently.
What would be an acceptable price for entry for you?
Are you buying to trade or for value?


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## springhill (8 August 2012)

RUBIK COMPLETES ACQUISTION OF LEADING PROVIDER OF FINANCIALPLANNING SOFTWARE - COIN SOFTWARE PTY LTD


 ●  BROADENS RUBIK’S POSITION IN THE FINANCIAL TECHNOLOGY MARKET

 ●  STRONGLY EARNINGS ACCRETIVE

 ●  ALL KEY STAFF SIGNED ON

 ●  ALL CUSTOMERS GIVEN NECESSARY CONSENT

 ●  TRANSITION PLAN AGREED AND IN PLACE

Rubik Financial Limited (ASX:RFL) today announced the completion of its purchaseof COIN Software Pty Ltd (COIN) from Macquarie’s Banking and Financial ServicesGroup (Macquarie).
The acquisition of COIN, which has a leading position in the Australian institutionalfinancial planning software market, marks a significant milestone for Rubik’sextension into wealth management.
COIN is a high-performing company with outstanding people who are a strongaddition to Rubik. All key staff have signed employment contracts and continue tosupport the customer base with new release delivery.
COIN adds to Rubik’s strong annuity revenue base and will contribute to Rubik’searnings.
Craig Coleman, Chairman of Rubik, said: “This is a strategic and financially soundacquisition that extends Rubik’s software capabilities in the growing wealth market,and will establish Rubik Financial as a leader in financial planning software.”
“We are looking forward to working with COIN’s staff and customers.”
COIN has an established, loyal customer base for its software. More than 15 ofAustralia's largest banks and financial institutions use COIN as part of the financialplanning systems. All key clients have provided the necessary consents needed tocomplete the transaction.


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## springhill (9 August 2012)

Chart shows what a sale can do for RFL, remains to be seen if gains are held.


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## herzy (9 August 2012)

springhill said:


> Sorry to hear that mate. Sales from RFL pretty much come from out of the blue so this stock can be unpredictable. The question is will it hold these gains? Each sale must put further confidence in holders, possibly forcing floor price up permanently.
> What would be an acceptable price for entry for you?
> Are you buying to trade or for value?




Value - i know it's cheap (even now) but seeing it mid 5s quite recently makes me reluctant to pay above 6. Would like to see 5.5. Should come down again, and you're right - long term it's a good one as they keep gaining sales. I hate to think what loss of a contract would do though!


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## herzy (9 August 2012)

** I'm not quite at the point where I decide on an entry point based purely on value, so I tend to judge entry price based on semi-recent price action, once I've decided I like the company and its ball-park price.


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## springhill (10 August 2012)

An article from the Investor Daily with what I think are the key points.
http://www.investordaily.com.au/cps/rde/xchg/id/style/14885.htm?rdeCOQ=SID-0A3D9633-4B08EA27

- "We ended up with all of the key staff coming across to us," Rubik chief executive Brent Jackson told _InvestorDaily_.

- As Coin offered good capability, Rubik was aware of others interested in buying the business, Jackson said, adding that it specifically sought consent from Coin customers. "There was noise that IRESS would try, but our main intent was to make sure customers were going to be happy with the service they were going to get from us," he said.

- More than 15 of Australia's largest banks and financial institutions use Coin as part of their financial planning systems.

Staff retention, getting the jump on a major competitor. Getting their foot in the door to show the majors other products and services is an invaluable asset.

If RFL starts becoming a threat, is it possible IRESS would take them out?


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## springhill (13 August 2012)

Rubik appoints Wayne Wilson as head of COIN

Rubik Financial Limited, the ASX-listed provider of financial technology and software to over 200 financial sector clients, today strengthened its expertise in wealth management with the appointment of Wayne Wilson as Managing Director – Wealth with immediate responsibility to head up COIN.
Mr Wilson, who has 25 years’ experience in the wealth management industry, will as part of his responsibilities oversee the day-to-day running and operations of the COIN business. His appointment marks the next step of Rubik’s expansion into the wealth management, following its recently completed purchase of leading wealth management software company, COIN.
Craig Coleman, Chairman of Rubik, said: “Wayne brings a unique skill set and depth of knowledge of the wealth management, advice technology and platform markets to the role. He is well-known and well respected in the wealth management industry. His experience and expertise will ensure we manage the COIN acquisition well and enhance our position in this segment”.
“Wayne was instrumental in the development of a number of platform and software solutions over recent years including Asgard’s AdviserNETgain and Infinity Platform.”
Mr Wilson has held a number of roles, most recently as a consultant with WRW Consulting. From 2009 – 2010 he was head of Asgard and Advance at BT Financial Group, and he has held various senior positions in wealth management at St George Bank from 2005 – 2009. He was Group Executive, Private Clients, with Perpetual Trustees from 1996 to 2000.
Speaking about his appointment, Mr Wilson said: “Rubik has a reputation for quality, reliability and security and I am excited to be joining the company at this new stage in its development. My experience in the wealth management, advice technology and platform space is a good complement to Rubik’s core banking technology expertise in the financial sector.
“We are committed to Rubik being a leading provider of independent wealth technology in the Austraasian market place.”


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## springhill (21 August 2012)

*Appointment of new Non-Executive Director*

Rubik today appointed John Wilson as an independent non executive director. This appointment recognises the increased scale of the enlarged Rubik group since its recent acquisition of COIN Software Pty Limited and the desire to strengthen the technology experience on our Board.
John’s career spans more than 25 years' in information technology, management, sales and marketing, treasury and financial risk management. John is currently an Executive General Manager at data intelligence company Veda where he is Executive General Manager, Market and Product Development, responsible for a number of business lines, as well as marketing, mergers and acquisitions and innovation.
John is an experienced financial technology executives. He has extensive vendor and professional services experience, and has held finance and treasury management roles for major organisations. John has lived and worked in Australia and Asia and was previously Asia Pacific President for SunGard, where he managed a large team across 14 offices in 11 countries. He was responsible for SunGard's business activities across the Asia Pacific region during a period of strong growth for the firm. He grew the business successfully year-on-year, including undertaking a number of strategic acquisitions for SunGard.
John was the first Australian executive to acquire a financial technology company in China.
He joined SunGard in 2000 from KPMG where he was a Partner. At KPMG, he had responsibility for the Treasury software and consulting practice built around the Quantum Treasury Management system.
John holds a Business Degree in Accountancy, is a CPA and has a Master of Applied Finance from Macquarie University.
Rubik Chairman, Craig Coleman, says “We welcome John to Rubik and look forward to leveraging his extensive Financial Technology experience.”


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## springhill (24 August 2012)

Buyers have started lining up at +6c for RFL again, last time this happened a couple of weeks ago, a sales announcement followed soon after


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## springhill (31 August 2012)

springhill said:


> Buyers have started lining up at +6c for RFL again, last time this happened a couple of weeks ago, a sales announcement followed soon after




1.1m RFL @ 6.5c traded in quick succession, with another single bid of 500k shares @ 6.2c
Something in the wind? Hoping so.


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## springhill (5 September 2012)

springhill said:


> 1.1m RFL @ 6.5c traded in quick succession, with another single bid of 500k shares @ 6.2c
> Something in the wind? Hoping so.




Look like a Director involved here. Notice out 1m shares @6.5c on market trade


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## springhill (10 September 2012)

ASX listed Rubik Financial Limited said today that its updated financial planning software, COIN version 4.0 is compliment with the Future of Financial Advice (FoFA) reforms.

New functions have been included that allow users to meet the fee disclosure and opt in requirements of the new legislation.

"Extensive changes have been implemented into COIN Office 4.0 with a focus on FoFA readiness, office efficiency and client management whilst delivering an improved user experience," said Wayne Wilson, Rubik managing director - Wealth.

"The changes will assist planners in being FoFA ready as efficiently as possible, and include improvements to workflows and client management as well as monitoring and reporting," he said.

Advisers can now record and keep track of packages and services offered to clients, the fees charged for those services and the amounts paid by clients, said Rubik.

Planners and network administrators will also be able to conduct in-depth analysis and product reporting using a number of new filters such as service acceptance date (opt-in), fee statement date and services provided.

Services offered and taken; client package type; opt in date; and fee disclosure dates can now be recorded.

Workflow changes have been made to help network administrators improve FoFA efficiencies. Large scale batch updating functionality has also been implemented.


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## springhill (11 September 2012)

Another 1.137mill traded today, with exactly 1 million of that at 2:33pm.
Did Coleman pick up another 1mill today for the Coleman Family A/c?


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## springhill (11 September 2012)

Excerpts from the Chairman's Report. Underlined segments are mine. Judging from the boldened part in New Contracts, there are further potential sales news contracts in the pipeline.
The latest customers to sign on have not even been divulged to the market yet.

Dear Shareholders,
The financial performance of the company improved marginally in the year ended 30 June 2012. It is worth noting that all of our software products achieved higher revenues and are now making a profitable contribution.
Adjusting for one off transaction costs relating to our acquisition of COIN (of just over $1m) the company made a small underlying profit.
Looking forward, the future earnings outlook for the company is much stronger as a result of achieving some of our long term objectives. We have recently been successful in winning some significant new contracts, we have completed the acquisition of the COIN business and we have made some important people appointments. All of these achievements position the company to deliver future earnings growth and shareholder value. I would now like to briefly expand on each of these three points.

*New Contracts*
Last year I mentioned that we had effectively completed the capital and operating investment required to support all of our Bank software products and therefore our operating earnings were highly leveraged to additional sales. During the period, we increased our sales staff and developed stronger sales systems. I am pleased to report that we have been able to secure new business in each of our key software products and *have a number of advanced opportunities in negotiation.*
Importantly we have secured two new Bank-in-a-Box clients (one during the reporting period and one shortly after) which will increase future recurring revenues. We recognise that the pace of sales of this service has been slower than we would like, however it is a complex and major purchase undertaken by a financial institution very rarely. The Bank-in-a-Box product had very slight positive earnings in 2012, but with these new contracts and a large addressable market, this business will become an important source of revenue and profit growth in the coming years.

*The COIN Acquisition*
We recently announced the acquisition of COIN software from Macquarie Bank. COIN provides mission critical financial planning software, is already a profitable business and has an established blue chip client base. It has enabled Rubik to move into the adjacent wealth management segment and thereby broaden our financial technology offer. We see the ability to improve our wealth service offering and cross sell other services to this client base. We look forward to providing you more information and understanding of this business as the year progresses.

*Our People*
The Board has worked with our CEO Brent Jackson to invest in our senior management and improve the culture of the business. Since our last annual report, we have externally recruited a CFO, a Sales Director, an experienced executive to head our Wealth business and appointed a new Non- Executive Director with a proven track record in technology related businesses.
- Our CFO, Paula Kensington comes to us with a background at AWA and Keycorp with the ability to rapidly distil the financials and provide sound advice to business units. The Board would like to acknowledge the improvement in quality of reporting and the enhanced controls over utilisation and budgets.
- John Duggan, our Sales Director, comes to us from Oracle and Sun. He has helped us recruit and manage an expanded sales team and driven the company wide use of our sales methodologies.
- Wayne Wilson joined us as Managing Director Wealth Management to head our move into wealth management software following our acquisition of COIN. Wayne is a highly experienced wealth executive with a background in Asgard, St George and BT.
- Recognising the increased scale and breadth of the business we have recently appointed John Wilson as a Non Executive Director (appointment effective 21 August 2012). John has many years experience and a proven track record in financial technology businesses, including serving as the APAC head of business for SunGard, where he managed a large team across 14 offices and 11 countries. He will be able to provide guidance and contacts as we extend our offerings in Asia.
The key to a successful technology business is developing a culture where people strive to understand client needs and deliver on our promises. Our team aims to deliver trusted, secure, reliable services to our clients, and it is clear this culture is highly valued by our Banking and Wealth Management clients.

*Key Numbers*
• Revenue in Technology segment improved by 10% to $8.9m (2011: $8.1m)
• Staff – 60 (2011: 56), has increased to 100 post COIN acquisition
• Cash from operations has improved to ($0.6m) in 2012 from ($2.5m) in 2011
• Employment costs have reduced year on year by over $1m

*Business Structure*
The changes last financial year to create Lines of Business with direct Profit and Loss responsibility has been successful. Each business unit has had a significant lift in underlying profitability, and an improved focus on delivering sales that will lead to profitable growth.
We have had positive customer engagement and new work in all product lines, and this year has seen the promise in our Bank-in-a-Box offering starting to be realised.
The range of capabilities provided by Rubik and our partners now allows us the ability to offer a complete universal banking capability to any financial institution. This ability to operate world class banking services on demand, pay-as-you-go is unmatched in the Australian marketplace.

*Engage*
This year we became better at engaging with our customers. We became better at understanding their needs and offering proposals that met both their budget and requirements. This was evidenced by sales highlights that included:
● Our Sales team reached their forecast, with half of our business developers achieving quota, this will deliver a ‘tail’ of revenue of approximately $2.2m in 2013
● 117 individual sales, with 11 of these over $100k
● 6 new ‘name’ customers including an Abu Dhabi based Bank for CWX, an Australian Church fund for Bank-in-a-Box, 3 scoping exercises for Australian Bank-in-a-Box implementations, a NZ Government organisation for CWX, and SMS top-ups and mobile banking for an overseas Bank.
We also have seen improvements to the sales cycle; while this is still slow it is possible that it will improve over the next year as clients access to capital improves.

*Serve*
There has been a lot of work behind the scenes in Rubik over the last year improving our quality of processes and delivery. This has been manifested in lower levels of “Blocker - Severity 1” and “Critical - Severity 2” issues for our clients (a decrease of 77%) and a corresponding improvement in our ability to deliver on Service Level Agreement.
We have also focussed on hardening our clients’ systems, with more work on security and the ability for clients (and their customers) to choose appropriate levels of security that balance usability and access.
We have also spent significant time building and testing our Disaster Recovery and Business Continuity capabilities, to ensure we can rapidly move capabilities when the unexpected occurs.
Between our technologies, infrastructure and design approach we aim to have the highest level of reliability of systems in our industry.
This year we invested in technical training, with our team being benchmarked for their IT skill and then we held a series of focussed training sessions on key areas to improve productivity and the quality of our work – this program will continue in 2013.

*Grow*
We have an existing level of sales pipeline that is stretching the resources of our sales team; this team will grow with additional business developers, account managers and support staff over this year to accommodate this demand. We also have existing customers demanding more services and seeking to use our products across multiple countries. At the same time, we have significant interest from potential international partners in extending our product offerings to new locations. We will review these opportunities carefully and invest wisely in increased sales and channel capability, but it is promising that there is demand for growth.

*The Future*
We go into 2013 with a new business capability in Wealth, and a range of clients who expect and demand the best. Our priority will be to ensure that we stay focussed on delivering high quality services to all of our customers, while still seeking the new business to grow our business

*Also, something to keep in mind when trying to gauge future revenues from ASX announcements.*
The Board has endorsed a Sales Disclosure policy to define when a signed customer contract should be disclosed to the market as a material item. All contracts worth more than $1M in year 1 income will be disclosed to market on signing. Contracts between $250K and $1M will be reviewed against the following criteria:
● First sale of a new product
● Sale to a significant (i.e. Top 100 ASX or equivalent) company
● Sale that is a precursor to a significant second sale
● Strategically important


----------



## springhill (12 September 2012)

springhill said:


> Another 1.137mill traded today, with exactly 1 million of that at 2:33pm.
> Did Coleman pick up another 1mill today for the Coleman Family A/c?




Director Andrew Moffat picked up the volume of around 1mill in the above post.
2 directors. 1 million on market shares purchased each within a week. 
Pretty big vote of confidence


----------



## springhill (14 September 2012)

Announcement out today Andrew Moffat adds another 67,103 shares purchased on-market


----------



## springhill (14 September 2012)

*SADIF Analytics upgraded Rubik Financial*

http://reports.pr-inside.com/sadif-analytics-upgraded-rubik-financial-limited-r3377723.htm


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## springhill (15 October 2012)

*Agreement reached for Collections and Recoveries system*

Rubik has signed a contract to provide a new Collections and Recoveries system for the retail business of one of Indonesia’s top four financial institutions. This government bank is a new client for Rubik.
Rubik advises that:
- This customer will be replacing their current, separate technology platforms with the latest version of CWX, our flagship collections product, which will include the new integrated, web-based agency management module.
- CWX will manage collections operations for more than 2,000 staff and 50 third-party agencies located in many of Indonesia’s cites and islands.
- Implementation will start in October and the system ‘go live’ is planned for mid 2013.
- This is the second use of the new module, which has potential with 20 existing customers in high-volume environments such as SE Asia, Pakistan and Australia.

Rubik CEO, Brent Jackson says “We are pleased to build long-term relationships with new customers, especially when we provide a product which will meet and cater for their projected portfolio growth over the next few years.”


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## skc (15 October 2012)

springhill said:


> *Agreement reached for Collections and Recoveries system*




I haven't looked at RFL for some time. Looks like you did very well holding. Great work. 

What's your expectation for the quarterly?


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## springhill (18 October 2012)

skc said:


> I haven't looked at RFL for some time. Looks like you did very well holding. Great work.
> 
> What's your expectation for the quarterly?




Nothing earth shattering this quarter, an overview of recent sales.

Next quarterly should be the one to watch more closely as RFL head towards the 'go live' point of this years sales to date.

Hoping they can maintain or increase pattern of sales leading up to end of year, still plenty of upside here IMO


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## springhill (22 October 2012)

http://www.investordaily.com.au/15392.htm

*Rubik strikes technology deal with offshore bank*

Rubik Financial has signed a new financial agreement to provide services for the retail business of one of Indonesia's top four financial institutions, the company has revealed.

Rubik, an Australian-based provider of financial technology, will provide a new collections and recoveries system to the Indonesian client, who could not be named as it remained under confidentiality, Rubik chief executive Brent Jackson told InvestorDaily.

"We are pleased to build long-term relationships with new customers, especially when we provide a product which will meet and cater for their projected portfolio growth over the next few years," Mr Jackson said.

Implementation has already begun, with a go-live date for the system planned for mid 2013.

The bank would replace its current separate technology platforms with the latest version of Rubik's CWX system, which includes a new integrated, web-based agency management module, managing the collection operations of more than 2,000 staff and 50 third-party agencies in Indonesia.

The CWX system ran on customer-based collections rather than product-based collections, allowing banks to see the complete customer relationship in one spot, Mr Jackson said.

"The CWX system allows you to see all the products used by the customer so you can make a single call to them about all their issues in a single view, thus [communicate] with them more effectively, rather than not understand all the different relationships they have with the organisation," he said.

In addition, many Australian banking institutions still functioned on product-based collections but were beginning to push towards customer-based systems, Mr Jackson said.

"If you had a credit card and a mortgage with the same bank, they may have two different collections systems making calls to you about the problems with the two accounts.

"Australian banks have very large product-based systems and they're all trying very hard to move across to customer aggregation in a way that allows them to deal with a customer, rather than a product but they all have different levels of difficulty given their existing systems."

Rubik was continuing its discussions with banks in the Middle East and Singapore about changing over to newer capabilities.


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## springhill (26 October 2012)

Rubik's new COIN acquisition gets a mention here.
http://www.moneymanagement.com.au/a...oftware-major-benefits-for-financial-planners

COIN has 23% market share, RFL obviously think they are able to lift this with better management of the system. Can it make headway into Iress' XPlan with a 37% market share?


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## springhill (30 October 2012)

For the first time in a long time RFL have reported a decent positive Net Operating Cash Flow for this quarter of $1.21m.

Previous results have been,
31/7/12 - ($199k)
19/4/12 - ($44k)
24/1/12 - $160k
26/10/11 - $226k
28/7/11 - $102k
20/4/11 - ($751k)
28/1/11 - ($696k)

Good to see them heading in the right direction, I will be watching the next quarterly cashflow report closely.


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## springhill (3 November 2012)

The vast majority of RFLs sell side was cleaned up yesterday. Started the day with approx 1.1m sell, ended the day with just over 300k sell. Around 480k of those were cleaned up after the bell.
I am working off memory here guys so those figures are approximations.
Looking for RFL to break the 12c mark next week.

Best of luck to holders.


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## springhill (5 November 2012)

springhill said:


> The vast majority of RFLs sell side was cleaned up yesterday. Started the day with approx 1.1m sell, ended the day with just over 300k sell. Around 480k of those were cleaned up after the bell.
> I am working off memory here guys so those figures are approximations.
> Looking for RFL to break the 12c mark next week.
> 
> Best of luck to holders.




RFL touched that 12c figure today but fell back to 11/11.5c. Buy side had 600k evaporate near close of play.


----------



## springhill (13 November 2012)

http://afr.com/p/technology/rubik_on_hunt_for_more_acquisitions_S8APPLRbQPm0qt2evcMQaI

RFL on the look out again. As they seem retiscent to issue further shares to fund acquisitions, I am guessing further debt is on the cards.


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## springhill (15 November 2012)

Rubik Financial Limited, the ASX-listed provider of wealth management software COIN, is pressing on with new initiatives in response to adviser demand.

Rubik managing director of Wealth, with immediate responsibility for COIN, Wayne Wilson, explained that scoped advice is driving the need for planners to prepare a plan for a client quickly and efficiently.

In response to this need Rubik is developing a roadmap for its COIN program, which it expects to sign off before Christmas.

Further information in the link below.

http://www.investordaily.com.au/15522.htm


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## springhill (29 December 2012)

It has been a rather languid time for RFL over the last month and a half. I have taken profits recently in the interests of financial responsibility, but still hold a nice parcel of shares which I expect to perform well over the next 12 months.
As always sales are the key to RFL success, hopefully we will see some increased action on this front in the New Year.
RFL are ever moving towards 'go live' status on some recent sales, and the purchasers of said products are still to be revealed.
Could be a period of interesting announcements in the next 3 months and the financial gains reaped from new customers should see a markedly improved bottom line for RFL at EOFY13.
An entry during times of lull in activity can be an opportunity to reap rewards during times of strong activity.


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## springhill (30 January 2013)

springhill said:


> For the first time in a long time RFL have reported a decent positive Net Operating Cash Flow for this quarter of $1.21m.
> 
> Previous results have been,
> 31/7/12 - ($199k)
> ...




Following up on this post, net operating cashflow for this quarter was just under $1.5m.


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## herzy (30 January 2013)

springhill said:


> Following up on this post, net operating cashflow for this quarter was just under $1.5m.




If I may ask, what is your desired outcome for this stock? At what point would you sell out? I understand you are a long-term holder?


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## springhill (30 January 2013)

herzy said:


> If I may ask, what is your desired outcome for this stock? At what point would you sell out? I understand you are a long-term holder?




I unloaded a few more today @ 11c, at this point RFL owes me nothing.

I don't have a desired outcome herzy, except to see increase in the value of my holdings. 

The direction I take with  RFL holdings will be based on further sales disclosures and a steady continuation/increase in net cash flow.

At this point I am looking no further than the end of this financial year, I will assess my options as the year progresses.


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## springhill (7 February 2013)

RFL closed at a 4.5 year high yesterday of 13c.

IMO mostly based on a transition to better, and hopefully sustained profitability.

Would like to see another sale soon.

Then again, maybe the recent volume and SP increase is based around that.


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## springhill (22 February 2013)

With the sale of 16m shares in an XT yesterday, a Ceasing to be Substantial Holder notice has been issued bringing to a close the unloading of nearly 20m shares.
The positive being that this many shares being sold has not dented the RFL share price.

I am curious if the buyer of the 16m parcel was the Wylie family?

We may see some nice accumulation ahead of some positive announcements occurring in the next month.


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## pods (26 March 2013)

springhill said:


> With the sale of 16m shares in an XT yesterday, a Ceasing to be Substantial Holder notice has been issued bringing to a close the unloading of nearly 20m shares.
> The positive being that this many shares being sold has not dented the RFL share price.
> 
> I am curious if the buyer of the 16m parcel was the Wylie family?
> ...





springhill, what do you think about this stock from a technical analysis point of view? at the 14.5/15c mark, it seems to have started to break through it's resistance level. If it does and does well, it could go well above 20c given a few weeks, as breakouts are usually followed by a step rise/decline in that direction. Do you see this breakout from the resistance level as being meaningful?


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## springhill (27 March 2013)

pods said:


> springhill, what do you think about this stock from a technical analysis point of view? at the 14.5/15c mark, it seems to have started to break through it's resistance level. If it does and does well, it could go well above 20c given a few weeks, as breakouts are usually followed by a step rise/decline in that direction. Do you see this breakout from the resistance level as being meaningful?




Hi pods, sorry I can't help you with any tech analysis or target prices. It would be nothing more than an uneducated guess.
What is blantantly obvious is the demand. Large sell orders being taken out in one hit has only been happening for around 4-6 months.

Hopefully some of the tech guys on here will see this and oblige.

All the best.


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## springhill (2 April 2013)

I should have my right to post charts revoked after this effort, but there could be a distinct pattern emerging with the rise in SP.

Anyone else think a retreat is the case based on chart pattern or breaking this set up and heading stronger for longer?

Sellers not swamping buyers.


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## burglar (2 April 2013)

springhill said:


> I should have my right to post charts revoked after this effort, but there could be a distinct pattern emerging with the rise in SP.
> 
> Anyone else think a retreat is the case based on chart pattern or breaking this set up and heading stronger for longer?
> 
> Sellers not swamping buyers.




Who detailed your chart, springhill?


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## springhill (2 April 2013)

burglar said:


> Who detailed your chart, springhill?




Sadly, I did.


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## burglar (2 April 2013)

springhill said:


> Sadly, I did.




You can't challenge a chartist to do a chart! 
I can't challenge a Value Investor to do a valuation!

Doubly sad!!

Edit: Looks like Elliott Waves, does it not? (low volume on wave 5, then ...)


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## VSntchr (4 April 2013)

Bit of weakness today adding to the charts validity lol.

Had my eye on this one for a while but never pulled the trigger. Recently had some spare time and did some futher analysis, Im hoping that the pull back goes a little further so I finally can. Have an order in so lets see how she goes!


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## VSntchr (6 April 2013)

springhill said:


> Honestly dont believe this to be the case. The long time flatness of the SP has been due to long term product development and minimal market penetration. Sales have just started to roll, revenues from these sales will not roll in until Q3 FY 2013. Only just above cash value with future revenue increase. Further potential product acquisition plus the hope of further market penetration. That all stacks up quite nicely.
> Just because you didnt buy at the bottom doesnt mean you cant catch any further potential SP increase. Are you better off buying at 5c with no positive news, or 8.5c with positive news rolling in? Have you really missed it?




A good post to reflect on. 

The price has since peaked at $0.16, an almost 100% increase since the poster thought he had 'missed the boat'. This shows the importance of doing the research and digging down, rather than assuming a big run in price has caused the valuation to become expensive.


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## springhill (8 April 2013)

VSntchr said:


> A good post to reflect on.
> 
> The price has since peaked at $0.16, an almost 100% increase since the poster thought he had 'missed the boat'. This shows the importance of doing the research and digging down, rather than assuming a big run in price has caused the valuation to become expensive.




Well spotted VSntchr, admittedly once a stock goes on a run I tend to avoid them. My aim is to attempt to pre-empt that run.
Having said that 5c to 8c probably isn't enough to scare me off, I didn't think that RFL would have reached 16c at this point.

Reviewing older RFL announcements I picked up on this.

There has been no further news on the acqusition status of the target mentioned in the announcement below. There is a mention of the final hurdle to complete takeover is an audit on the FY13 accounts of Proviso. As there are several stages of action before that, and it now being April, I am assuming that announcements on the prliminary payments involved would have to be made in the next month.

See under financial considerations, I wonder if existing holders will be given the option to be involved in a cap raising, or it will be another private placement?

I am a big fam of RFL amd it has performed admirably for me. If they have manage any debt taken on and keep the issuance of shares to a minimal nature this has the potential to be a remarkable company.

$RFL ENTERS INTO A CONDITIONAL AGREEMENT TO ACQUIRE LEADER IN SCALED ADVICE

Acquisition of Provisio Software, a leader in scaled and online wealth advice

EXPANDS RUBIK’S PRODUCT SUITE IN THE GROWING SCALED ADVICE MARKET
BROADENS RUBIK’S LEADERSHIP POSITION IN THE INSTITUTIONAL WEALTH MARKET
EARNINGS ACCRETIVE
Rubik, at completion, will pay $0.29m in cash to the Vendors and issue them 2.1m shares at $0.10 each. Rubik will make a further payment once the FY13 accounts have been audited, which is expected to total $1.0m, being 3.0 times FY13 EBITDA less the completion payment. This payment shall be a mixture of cash and shares in Rubik, again issued at $0.10 per share. Both the FY14 and FY15 payments may contain scrip, which may be issued at Rubik’s option at the 5 day VWAP immediately following the announcement of RFL's FY14 and FY15 annual results

Financial Considerations

Forecast normalised Provisio EBITDA is $0.5m (year ending June 2013);
Provisio’s revenues are expected to exceed $1.6m in FY13, with strong growth expected in FY14 and FY15
Purchase price is 3.0 times FY15 EBITDA, with a cap of $20.0m, which would require FY15 EBITDA to exceed $6.67m.
Rubik will fund this acquisition through existing cash reserves and issuance of equity.


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## springhill (18 April 2013)

A small article mentioning RFL's new services as part of the Provisio acquisition.

http://www.financialstandard.com.au/news/view/26860202

Made a new high of 17c this morn, low volume so far.


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## VSntchr (18 April 2013)

Doing some further work on these guys tonight.

According to the FY12 result, they are carrying $79m of operating losses! 
They certainly won't be paying tax for a while....


Looking at the latest half yearly the operating margin has jumped to a little over 10% now.
Will be good to get the FY results to see if it continues to rise and how the major acquisition will alter the revenue numbers going forward. 

One of the rarer stocks that has been holding/performing well this week!


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## springhill (18 April 2013)

VSntchr said:


> Doing some further work on these guys tonight.
> 
> According to the FY12 result, they are carrying $79m of operating losses!
> They certainly won't be paying tax for a while....
> ...




Or a dividend either.... 

Look forward to hearing your thoughts once the FY results are out.

With mining (temporarily?) on the nose and the more speculative mineral explorers not getting the attention and support they have had in the past, do you see that speculative interest transferring to other areas like financials, software, telecommunications & information technology services? 

Those with high risk tolerance, like myself, will surely still be looking for something to invest in?

NEA was one that pulled a lot of attention over the past couple of days.

I am not that across the sectors mentioned above, any other RFL style stocks out there worth investigating?


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## VSntchr (18 April 2013)

springhill said:


> Or a dividend either....
> 
> Look forward to hearing your thoughts once the FY results are out.
> 
> ...




Havent really been looking for anything new.
Ive been brushing up on my valuation skills (very time consuming lately!)..and have been trying to keep up with my current watchlist.
The only stock ive been keeping up with that you might be interested in is GRB. Funnily enough it also trades at $0.17. Its not a bargain anymore but it might still be a growth play..
Went into a trading halt yesterday for a CR, might be worth you checking out.

Anyway - looking forward to some more updates from RFL...but in the meatime, your comments about a shift of risk appetite has me thinking. I hope your right, because my portfolio is already positioned to benefit from such a shift (and I think this really has already occured over the last 4 months TBH..but could keep going)


----------



## Ves (18 April 2013)

VSntchr said:


> The only stock ive been keeping up with that you might be interested in is GRB. Funnily enough it also trades at $0.17. Its not a bargain anymore but it might still be a growth play..
> Went into a trading halt yesterday for a CR, might be worth you checking out.



I think this one has massive earnings risk, and is conveniently also very capital intensive.   Has some things going for it, but the same things could turn out to be their biggest weaknesses  (ie.  similar to JIN).  I think it's an earnings re-rating play (in this case future earnings) that has, or will, run out of steam very soon.  Just my opinion, too risky for me. 

Same with RFL unfortunately.


----------



## springhill (18 April 2013)

Ves said:


> I think this one has massive earnings risk, and is conveniently also very capital intensive.   Has some things going for it, but the same things could turn out to be their biggest weaknesses  (ie.  similar to JIN).  I think it's an earnings re-rating play (in this case future earnings) that has, or will, run out of steam very soon.  Just my opinion, too risky for me.
> 
> Same with RFL unfortunately.




Do you see future sales mitigating this risk somewhat? It has been a long time in between sales announcements, which I have flagged as a concern in the past.

From memory there was a previous post that had something like 20 potential customers at various stages of product assessment and possible uptake.


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## Ves (19 April 2013)

springhill said:


> Do you see future sales mitigating this risk somewhat? It has been a long time in between sales announcements, which I have flagged as a concern in the past.
> 
> From memory there was a previous post that had something like 20 potential customers at various stages of product assessment and possible uptake.



Springhill my response was more to do with GRB.   Happy for a moderator to move it if it is causing confusion.


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## springhill (30 April 2013)

*Rubik Financial Limited sells Shelf Companies Australia Pty Ltd*

Rubik Financial Limited ("Rubik") today entered into an agreement to sell, and completed settlement on the sale of Shelf Companies Australia Pty Ltd ("Shelf Companies"). The cash consideration on disposal is $830,000, with a net asset value at date of sale of $297,000.
Shelf Companies is a provider of company incorporation and trust deed establishment services to a predominantly West Australian customer base.
Rubik's Chairman, Craig Coleman commented on the sale "Shelf Companies Australia provides its customers with a premium company and trust establishment service. However following Rubik's acquisition of COIN Software last year, the Board has determined to focus Rubik's resources in our two core divisions being Banking Software and Wealth Management Software. As a result Shelf was considered non- core to Rubik and we recognise that new ownership would be good for Shelf Companies Australia, its employees and customers."


----------



## VSntchr (30 April 2013)

Good to see they are showing confidence in their main ventures.

The latest cash flow report slipped under my radar, was very busy last friday and only saw it now


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## springhill (30 April 2013)

VSntchr said:


> Good to see they are showing confidence in their main ventures.
> 
> The latest cash flow report slipped under my radar, was very busy last friday and only saw it now




The cash injection doesn't hurt either.

Thoughts on their quarterly VS?

Net Operating Cash flow for this quarter $964k (down from $1.2m previous quarter)


----------



## VSntchr (1 May 2013)

springhill said:


> The cash injection doesn't hurt either.
> 
> Thoughts on their quarterly VS?
> 
> Net Operating Cash flow for this quarter $964k (down from $1.2m previous quarter)




It doesn't scream high growth is my first impression. Lots of activity within the company so will have to wait for more commentary before thinking to deeply about it IMO


----------



## VSntchr (2 May 2013)

From Iress market update with relevance to their wealth management division:


> An excellent result for 2012 particularly given the environment with revenue up 9.7% and segment profit up 15.2%
> 
> - Regulatory changes are driving technology and solution demand, particularly integrated remuneration management. Specifically FoFA compliance is pushing implementations across the client base.




Keeping in mind that Iress owns XPLAN, the main competitor to COIN.

What I like about the COIN acquisition is that at the moment, XPLAN has a bigger market share. This does not mean that COIN is a minnow however, as it does have some very high profile clients - i.e. I know that a big 4 bank uses it. This leaves COIN with room to grow as both the market grows and potentially if they can gain market share - which hopefully RFL management can.


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## springhill (31 May 2013)

RUBIK COMPLETES ACQUISTION OF LEADING PROVIDER OF FINANCIAL PLANNING SOFTWARE – VISOR DESKTOP

● BROADENS RUBIK’S POSITION IN THE IFA WEALTH TECHNOLOGY MARKET
Rubik Financial Limited (ASX: RFL) today announced the completion of its purchase of Visor Desktop (Visor) from Macquarie’s Banking and Financial Services Group (Macquarie).
The acquisition of Visor, which has a leading position in the independent financial advisor (IFA) financial planning software market, marks an expansion of Rubik’s presence in wealth management.
Visor:
● has an established, loyal customer base for its software, with more than 300 IFAs using Visor as part of their financial planning systems;
● adds to Rubik’s strong annuity revenue base, generating in excess of $3.5m in recurring revenues
The Visor service is predominantly provided via a hosted offering, which will be transitioned to Rubik, following completion. A transition process has been agreed with Macquarie that will provide service continuity for Visor’s customers.
Wayne Wilson, Managing Director Wealth at Rubik, said: “This is a strategic and financially sound acquisition that extends Rubik’s customer base in the growing wealth market. We are looking forward to working with Visor’s staff and cstomers.”


----------



## piggybank (20 September 2013)

springhill said:


> RUBIK COMPLETES ACQUISITION OF LEADING PROVIDER OF FINANCIAL PLANNING SOFTWARE – VISOR DESKTOP
> 
> Wayne Wilson, Managing Director Wealth at Rubik, said: “This is a strategic and financially sound acquisition that extends Rubik’s customer base in the growing wealth market. We are looking forward to working with Visor’s staff and customers.”




And the market likes what it sees with a close today of 24 cents, up 14% on the day.


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## springhill (7 October 2013)

RFL at an all time high of 28.5c with buyers pushing up and sellers at the lowest volume I have ever seen.

Exciting times!


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## Crows (15 October 2013)

springhill has exceeded their stored private messages quota and cannot accept further messages until they clear some space.

^ Might wanna check that out mate. Tried to send you a message but got this in reply!

Anyway, nice work on picking this one up when you did.. Seems to have a nice trend up for the moment. Wonder what it'll do once this US jazz has been sorted!


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## VSntchr (26 November 2013)

Presentation out today and all I can say is WOW!

Springhill you certainly picked an early winner here. I remember being alerted to this little GEM by you when it was sub 10c.
I sold out a little while ago when I felt it had reached value...I certainly did underestimate its earning potential.

Congratulations to all who held through the formative years - it looks like this one is destined to keep going.

For anyone interested in this company I thoroughly recommend reading the preso - its lengthy but worthwhile.
Of note to me was the substantial operating leverage that management are confident they can achieve (i.e. 10% revenue growth converting to potentially 30% EBITDA growth), sticky recurring revenue and the confidence of management in their product.


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## ricee007 (26 November 2013)

I had the chance to buy at $.255 and regret not doing so... Might see if I can jump in around $.26 or so, but the depth doesn't look like that will be likely.

I didn't like all the choices of words by management though - many growth targets are described as "plausible" not "expected"... for example.


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## VSntchr (26 November 2013)

ricee007 said:


> I had the chance to buy at $.255 and regret not doing so... Might see if I can jump in around $.26 or so, but the depth doesn't look like that will be likely.
> 
> I didn't like all the choices of words by management though - many growth targets are described as "plausible" not "expected"... for example.




If you are investing based on an understanding of the business model and like those running the company - I wouldn't let a couple of cents here or there cause any major heartache. I think its in "Common Stocks and Uncommon Profits" by Phil Fisher where he talks about avoiding squabbling over small amounts once you have done the research and are committed to the investment.

Personally I don't have a problem with the targets and the terminology used. When your talking about targets that are 2.5 years away you really can't be certain. Its the advantages of the business and its model that got me excited...
*Sticky customers* - CBA for example is not leaving COIN any time soon. The amount of changes that FOFA has enforced on the financial planning industry has left many planners at these big institutions very frustrated and the last thing I can see them doing is to change the provider of the BACKBONE of their operations.
*Operating leverage* - as the company has a 85%+ fixed cost base, incremental revenue is very valuable to the bottom line.


----------



## ricee007 (26 November 2013)

Hmm, going through my records, it was .245 i could have got in at.

EDIT:-Yes, you do make a good point about quibbling over a few cents... though, 24.5c to a high of 28c is a nice 14% capital gain I missed out on.

But you are right, the difference between 27c (being first in line) and 26c (behind 7 buyers) isn't massive... okay, I've put in a medium size buy (in the context of my portfolio).

Cheers mate


----------



## springhill (13 December 2013)

*ASX Announcement – Sales Disclosure - New contract for “Bank-in-a Box” core banking system *

Rubik Financial Ltd (ASX:RFL), the ASX listed global provider of financial technology and software, today 
announces a new contract to provide a “Bank-in-a Box” (“BIAB”) hosted core banking solution to a specialist 
client, operating in Australian and Global markets. 

Whilst contract confidentiality precludes specific detail, Rubik advises that; 
- Implementation has started and the system is planned to go live in the 2014 calendar year 
- The system includes Rubik’s internet, mobile banking, internet security and cards management 
software integrated with the Temenos T24 core banking system 
- The contract is a multi-year contract of 5-8 years. It does not impact on FY13/14 earnings guidance 
but could have a material effect on FY14/15 earnings. 
Dr Ken Carr, Managing Director, Banking said, “our hosted bank-in-a- box offer is unique and we believe 
attractive to existing Approved Deposit Institutions as well as new or specialist participants in the Australian 
Financial Services industry. It is pleasing therefore to enter into our first contract for a specialist entrant. The 
rapid deployment and pay as you go fee structure enabled by our hosted software as a service represent 
important benefits to our client’s growth plan.”


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## piggybank (8 February 2014)

Daily P&F Update:-


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## springhill (15 February 2014)

RFL hit an all time high of 36c today and closed just off its peak at 35.5c.

RFL has provided spectacular returns since its identification at the 5c range.

The SP rise has been steady and consistent, rather than a meteoric rise - followed by an equally spectacular crash.

There is still much upside potential to RFL, with the companies having signed contracts for products yet to be known publicly.

Recent acquisitions look to be providing RFL the ability to approach small, medium & large financial institutions with a multi-faceted package of banking/technology software products.

RFL has stated ambitions of being in the ASX300 within a 3 year period. This would require, at current share issuance levels, a share price of $3.

What are the catalysts for such a scenario? A contract with one of Australia's big 4 banks (possibly, but less likely a major international financial institution) or a rapidly accelarating profit - leading to removal of current debt and an increasing cash reserve.

Speaking hypothetically, if memory serves me correctly RFL to count CBA as one of their cliental with a small product line - this could provide the foot in the door for a larger system (more earnings accreditive) to be pitched to CBA.

Would love to hear others' thoughts on my musings, or their own opinions on where major share price increases coulod be realised from.....


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## ricee007 (15 February 2014)

Yep, look, I'm a believer in RFL.

I did just sell out though... made my 25% gain in a reasonably short period of time.... noticed no news released lately and a very significant increase in SP..... so I ran.

Can definitely see it higher by the time the next AGM comes around.... but would be surprised if it didn't at some stage get below $.355.

I'd look at getting back in at, say, 28c if possible... but I doubt I'll ever get the chance.


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## springhill (18 February 2014)

RFL hits a new all-time high intraday of 39c, pre this annoucement. End of day close was still a respectable 36c.

*Collaboration Between Advisers and Mortgage Brokers *

Rubik Financial Limited (Rubik, ASX:RFL) today announced a new interface that integrates its wealth planning software COIN with Stargate Technologies’ loan management tool, SymmetryCRM, used by over 2,500 Australian mortgage brokers. 
The interface will initially allow financial planners using COIN and mortgage brokers using Symmetry to push client information to each other’s respective platform. 
It will include over 100 data fields, allowing for simple cross-referrals, saved data entry time and a seamless financial management experience for the customer. Access to the interface will depend on collaboration agreements in place between planners and brokers. 
Wayne Wilson, Rubik Managing Director Wealth, said the specially developed interface reflects the more holistic approach to debt management applied by brokers, and the increased focus on client acquisition for planning groups. 
“We are delighted to work with Stargate Technologies to allow greater collaboration between advisers and mortgage brokers that enhances their ability to target, qualify and service clients,” Mr Wilson said. 
“This is the first initiative that we and Stargate Technologies have developed for our combined market of professionals who operate highly complimentary businesses, and are likely to work more closely in the future as markets evolve.” 
Brett Spencer, Stargate Technologies CEO, said the interface marks a big step in connecting two distinct segments of the financial services sector. 
“We have worked effectively with the Rubik team to build a solution that brings together financial planning and mortgage broking through the sharing of critical information that would otherwise remain underutilised in siloes,” Mr Spencer said. 
“We look forward to potential future projects with Rubik that allow for further collaboration between financial services segments.” 

Are there any members on this forum who work in these fields that would care to share an opinion?
Any opinions are welcome, whether they have employment in this field, or not.......


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## VSntchr (18 February 2014)

springhill said:


> RFL hits a new all-time high intraday of 39c, pre this annoucement. End of day close was still a respectable 36c.
> 
> 
> Are there any members on this forum who work in these fields that would care to share an opinion?
> Any opinions are welcome, whether they have employment in this field, or not.......




Spent a year working with COIN, and the firm I was working for utilised it as a key part of their operation. In saying that however, the company and the employees barely scratched the surface of what the software is capable of....


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## piggybank (4 March 2014)

Closed today @ 40.5c (up just over 5%) on volume of 1.5 million.

*Rubik and Stargate’s COIN/SymmetryCRM Interface Allows Collaboration Between Advisers and Mortgage Brokers*

Sydney, 14 February 2014 - Rubik Financial Limited (Rubik, ASX:RFL) today announced a new interface that integrates its wealth planning software COIN with Stargate Technologies’ loan management tool, SymmetryCRM, used by over 2,500 Australian mortgage brokers. The interface will initially allow financial planners using COIN and mortgage brokers using Symmetry to push client information to each other’s respective platform.

It will include over 100 data fields, allowing for simple cross-referrals, saved data entry time and a seamless financial management experience for the customer. Access to the interface will depend on collaboration agreements in place between planners and brokers. Wayne Wilson, Rubik Managing Director Wealth, said the specially developed interface reflects the more holistic approach to debt management applied by brokers, and the increased focus on...

The remainder of the announcement can be read here:- http://stocknessmonster.com/news-item?S=RFL&E=ASX&N=667792 

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## piggybank (14 March 2014)

P&F Daily Update:-

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## piggybank (1 April 2014)

Broke out of recent resistance (of 45c) today. It eventually closed at 50c - it hasn't been this high in 12 years so something must be going right

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## VSntchr (1 April 2014)

Yep, the presentation last night (not market sensitive ) states they are looking closely at two mortgage selling platforms. This has come due to their clientelle asking for this functionality. 

They are positioning themselves as a flexible provider of financial services software and the string of acquisitions recently is increasing bolt-on customers which hopefully will become part of their recurring revenue base over time. 

Broker coverage has been increasing and the run of presentations has some hints that a capital raising may not be too far away (assuming the mortgage acquisitions are material in size - which I am not too sure).

The only thing I hate about this stock is the poor way I have managed my capital regarding my investment in it!


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## springhill (1 April 2014)

VSntchr said:


> The only thing I hate about this stock is the poor way I have managed my capital regarding my investment in it!




What would you have done differently VS?

Most having been in this stock at some time or another would have some kind of regret, unless they bought at sub 5c and have held right through.

My average purchase was just over 5c and I thought I was pretty clever selling half at 12c-ish.

Have held the free carry ever since.

Am I happy I am in the position that I am in now, of course.

Do I have regrets? In hindsight, it is easy to ponder variables.

My other question , how do you plan to proceed from here?


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## herzy (2 April 2014)

springhill said:


> What would you have done differently VS?
> 
> Most having been in this stock at some time or another would have some kind of regret, unless they bought at sub 5c and have held right through.
> 
> ...




Thanks for the honest answer. I'm relatively inexperienced, so it's nice to know not everybody does everything perfectly every time - which is the impression you can get sometimes on these forums. 

I bought in hesitantly (due to the recent jump from 5) at about 8 cents. Still holding. Bought another parcel at 26 or so, when it seemed ot be ranging between 26 and 30 - the logic was if it goes back to 30 I'll sell and have 10% extra free carry (which I did) and I didn't think it would go down / was happy to hold long term anyway. 

I regretted selling at 30c for a quick buck almost as soon as I did, but even in hindsight it was the right decision, followed my plan, added to my holdings a little, etc...


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## herzy (2 April 2014)

springhill said:


> RFL hit an all time high of 36c today and closed just off its peak at 35.5c.
> 
> RFL has provided spectacular returns since its identification at the 5c range.
> 
> ...




Agree with the post as it was then. I don't think this sharp rise will last, but that's a pure guess. Longer term, I find this a very difficult company to predict. I accept that their existing clients will be happy with increased offerings, and new clients will come. How much will they spend for extra services? How many will come later? Can they earn $60 mill a year to justify this? Ambitious, but perhaps management know more than I do about the potential. They said they're aiming for 40% EBITDA increase, which is a big claim...


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## springhill (2 April 2014)

herzy said:


> Agree with the post as it was then. I don't think this sharp rise will last, but that's a pure guess. Longer term, I find this a very difficult company to predict. I accept that their existing clients will be happy with increased offerings, and new clients will come. How much will they spend for extra services? How many will come later? Can they earn $60 mill a year to justify this? Ambitious, but perhaps management know more than I do about the potential. They said they're aiming for 40% EBITDA increase, which is a big claim...




All pertinent questions and without the luxury of a crystal ball, ones that remain unanswered.

What can be said is that managements track record of acquisitions and the terms of them have been well received by the market to date.

RFL show the ability to pay off debt quickly.

Forward projections from the presentation show that the 2 mortgage platforms will complete their strategic offerings to current/new clientele right up until 2016.

The terms will obviously dictate the need for a cap raising or not, but RFL have shown an inclination not to unnecessarily dilute & proceed in that manner despite a share price increase from 5 to 50c.
Not many ASX listed companies would resist the urge to do so.

However, if the acquisitions are on favourable terms and RFL would prefer to knock the majority of the debt on the head, would that be such a bad thing?
Any dilution could be offset by potential fast tracked dividend payments.

Food for thought, or to throw in the bin....


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## springhill (3 April 2014)

For those not up to speed on why RFL has ticked up to the 50c mark yesterday, here are the 3 latest announcements for your convenience.

Investor Presentation
http://www.asx.com.au/asxpdf/20140331/pdf/42nqh05q4qm5h4.pdf

Rubik Business Update
http://www.asx.com.au/asxpdf/20140328/pdf/42np5lq86msrp7.pdf

Rubik Completes Acquisition
http://www.asx.com.au/asxpdf/20140328/pdf/42np1px69xfw4j.pdf

Considering the 12% rise yesterday, I was curious as to how today's trading would pan out.

Those taking profits/trading were unable to overwhelm buyers and I consider today's action of a half cent fall with volume of over 1.1m traded as a success.

Any thoughts on when/if RFL may become a takeover target? Possibly after the addition of the 2 prospective mortgage platforms?

Just opening this up for consideration.


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## VSntchr (3 April 2014)

springhill said:


> Any thoughts on when/if RFL may become a takeover target? Possibly after the addition of the 2 prospective mortgage platforms?
> 
> Just opening this up for consideration.




I agree about yesterday's trading, I was thinking how resilient it was to hold its ground after such a strong run the day before. 

As for a takeover, can you think of the potential suitors? I really doubt that Iress could do it, ACCC would surely block that with XPLAN and COIN making up a very large majority of the fin planning software market.


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## herzy (8 April 2014)

springhill said:


> All pertinent questions and without the luxury of a crystal ball, ones that remain unanswered.
> 
> 
> RFL show the ability to pay off debt quickly.
> ...




Good work Springhill! Cap raising coming up...


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## springhill (8 April 2014)

herzy said:


> Good work Springhill! Cap raising coming up...




I am thinking that an announcement regarding the potential acquisition of the mortgage platforms may not be far behind this cap raising announcement.

If this pans out along similar parallels as I am thinking out aloud, then as a shareholder I would rather capital was raised in this fashion than extra debt taken aboard.

However, pure speculation at this point and a lot more information to be released before a successful pathway forward is defined


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## springhill (20 May 2014)

*Rubik Share Purchase Plan Results *

Rubik Financial Limited (ASX: RFL) is pleased to advise that its share purchase plan (SPP) has received strong support from its retail shareholders. Applications of $10.8million were received from 963 shareholders. 

As a result of the high level of SPP demand, the Rubik board of directors has decided to increase the maximum amount raised to $8million (from the previously advised $3million). This enables existing shareholders to more fully and equitably participate whilst modestly impacting the overall capital raised. The total company capital raising will now increase from $28million to $33million, the additional $5million representing 11,363,637 additional shares to be issued (or 3% of the expanded shares on issue).

The $8million issue limit will result in applications being scaled back as follows; 
● Applications for amounts up to $5,000 will be allotted in full 
● Application amounts in excess of $5,000 will be scaled back by 44.5%. 
Therefore all applications will receive full allocation up to $5,000 with only the amount in excess of $5,000 being scaled back.

Allotment and issue of share purchase plan shares is scheduled for 22 May, 2014. 

Rubik's Chairman, Craig Coleman, said “We are extremely pleased with the high level of shareholder participation in our equity raising. Retail shareholders have previously given the Board feedback on their desire to have an equitable participation in equity raisings. Accordingly we have increased the SPP raising amount to reduce the level of scale back necessary. The overall scale back level of 44.5% is consistent with the 46% institutional placement scale back." 
Rubik's Chief Executive Officer, Niek Hoogenhout, said "The executive team are grateful of the support shown by institutions and retail shareholders alike. The $5million increase in the SPP raising amount will initially be applied to retirement of debt and will provide Rubik with greater financial flexibility with respect to future acquisition funding or associated earn out payments. We look forward to rewarding the support shown by shareholders."


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## westboy (28 June 2014)

Just on the debt position of the company , It has very high recurring revenues and debt is cheap ATM so I hope the next acquisition has a bit of modest leverage in it. This adds to the EPS and ROE figures and as long as it's modest, wont add significantly to the risks IMHO


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## Linkes (4 July 2014)

following


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## Miner (1 September 2014)

any  current follower of RFL please share how come market flogged RFL after such an oustanding result published ?
How the recent SPP holders being treated by RFL and they are treating RFL after such a drastic fall since the SPP was closed ?

Cheers


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## skc (1 September 2014)

Miner said:


> any  current follower of RFL please share how come market flogged RFL* after such an oustanding result published* ?




I haven't follow RFL for some time, but it looks like it made a loss of ~$300k before significant items? The headline figure of $6.35m is mostly due to the recognition of DTA (deferred tax assets). Yes that has real value in the future but only to the extent that RFL make an operating profit. 

It made a pretty significant acquisition in June so none of those benefits have come through yet. They paid $22.4m at 5.9x EBITDA so you'd expect that to add ~$3.8m EBITDA for FY15. RFL claimed that their own underlying EBITDA was $8.2m, but that excluded ~$4.5-5m of expensed and capitalised R&D, plus ~$4m in investment amortisation (I don't know what that entails). There isn't enough history to know what is RFL's "sustaining" R&D spend so the true underlying FY15 EBITDA could be as low as $7-8m (again ignoring the investment amortisation). 

I have no idea how to value this company but at current market cap of ~$130m, the valuation has priced in some pretty good things in the coming years. If they don't come to bear at the implied expectation the share price could go anywhere.

P.S. I've only spent 10 minutes on this so others who are more knowledgeable will definitely give better answers.


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## Miner (3 September 2014)

skc said:


> I haven't follow RFL for some time, but it looks like it made a loss of ~$300k before significant items? The headline figure of $6.35m is mostly due to the recognition of DTA (deferred tax assets). Yes that has real value in the future but only to the extent that RFL make an operating profit.
> 
> It made a pretty significant acquisition in June so none of those benefits have come through yet. They paid $22.4m at 5.9x EBITDA so you'd expect that to add ~$3.8m EBITDA for FY15. RFL claimed that their own underlying EBITDA was $8.2m, but that excluded ~$4.5-5m of expensed and capitalised R&D, plus ~$4m in investment amortisation (I don't know what that entails). There isn't enough history to know what is RFL's "sustaining" R&D spend so the true underlying FY15 EBITDA could be as low as $7-8m (again ignoring the investment amortisation).
> 
> ...



Dear SKC 

Many thanks for your thought provoking note and it is encouraging.
RFL shed some feathers today only to fly soon and I am waiting.
I also got a PM from a learned poster on RFL. I thank him very much too
With a bit dip RFL probably setting itself and I will watch actively.
BTW your ten minutes calculation  quality and worth is more than my couple of hours efforts to reach onto same conclusion. So thanks a lot .


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## Rinsewind (1 December 2014)

I thought I read somewhere (here? on  another thread) that Rubik owned 20 % of  FINZOFT  FIN.NZX.  Does anyone know if that is true.  FIN.NZX  up 41% today.  DISC.  Holding.  If this is true I may pick up a few more!


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## Miner (1 December 2014)

Rinsewind said:


> I thought I read somewhere (here? on  another thread) that Rubik owned 20 % of  FINZOFT  FIN.NZX.  Does anyone know if that is true.  FIN.NZX  up 41% today.  DISC.  Holding.  If this is true I may pick up a few more!



Just Googled to get an answer of your query.
Whereas FIN went up by 41 % but the same search says there is no major holder for FIN.NZX

http://finance.yahoo.com/q/mh?s=fin.nz&ql=1


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## Rinsewind (2 December 2014)

No worries.  Found it.  'Shares in listed entity at 30 June 2014 relate to Finzsoft Solutions Limited (NZSX: FIN).  (Value  = $1,115,000 @ 0.50).   1 Dec 14 - now 3.98.   Not sure what this means though? ....for shares in listed entity at fair value, an increase of 1 percent in the share price as at the reporting date would have increased other comprehensive income by $11,000 (2013: $6,000). A decrease of 1 percent in the share price would have decreased other comprehensive income by the same amount.   http://clients2.weblink.com.au/clients/Rubik/article.asp?asx=RFL&view=6693018   P72.


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## Rinsewind (2 December 2014)

Sorry Miner.  Overlooked your post.  Thanks for the effort.   Still fairly new to this so still not all that good at doing my own research.


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## Rinsewind (4 December 2014)

Sorry that should be page 70.


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## Rinsewind (4 December 2014)

Can any one translate this into newbie-speak. Thanks.

"For the above financial assets, fair value movements are recognised in other comprehensive income through the
fair value reserve in equity.   Shares in listed entity at 30 June 2014 relate to Finzsoft Solutions Limited (NZSX: FIN). The remaining equityinvestment relates to CCK Financial Solutions Ltd.

For shares in listed entity at fair value, an increase of 1 percent in the share price as at the reporting date would
have increased other comprehensive income by $11,000 (2013: $6,000). A decrease of 1 percent in the share
price would have decreased other comprehensive income by the same amount."

Does this mean that changes in Share Price for NZSX:FIN  will be reported as revenue - other comprehensive income?


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## Ves (4 December 2014)

Rinsewind said:


> Does this mean that changes in Share Price for NZSX:FIN  will be reported as revenue - other comprehensive income?



If you go to the ASX website and open up the 2014 Preliminary Final Report & Appendix 4E and go to page 13 of the PDF there will be a statement of profit and loss.

There is a line item in bold that says something like the Profit after income tax benefit for the year attributable to owners of RFL.  It's 6,346.

Directly under this is a bolded line item that says Other Comprehensive Income.    In this section is the Net change in fair value of investments  524.

There is a reserves line item under Equity on the balance sheet too where any movement is reflected year on year.

If you want to read further the relevant notes to the accounts are 12 and 23. 

Be careful not to mix up any Other Comprehensive Income with operating profits / cash flow if you wish to value the business.


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## Rinsewind (4 December 2014)

Thanks for that  - much appreciated.  Makes more sense now.


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## System (24 May 2017)

On May 23rd, 2017, Rubik Financial Limited (RFL) was removed from the ASX's official list at the request of the Company, pursuant to Listing Rule 17.11, following implementation of the scheme of arrangement by which Temenos Group AG (via its indirectly wholly-owned subsidiary Temenos Solutions Australia Pty Ltd) acquired all of the issued shares in the Company.


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