Ayondo records zero revenue, posts S$350,000 in Q3 loss
The woeful financial performance of Catalist-listed Ayondo continued in the third quarter ending September 30, 2021. The embattled trading firm posted $0 in revenue for the reported period, the same as it had been in the previous year.
Ayondo had minimal operating activities following the disposal of its key operating subsidiary ayondo Markets and the insolvency of its other subsidiaries ayondo GmbH and AHAG.
However, the firm reported nearly S$350,000 in operational expenses, which was then reflected as a net loss for the third quarter. Though its bottom line remains in red, Ayondo mitigated its losses from S$1.3 million in the counterpart quarter of 2020, per its latest filing with the Singapore Exchange (SGX).
Notably, Ayondo was in a negative working capital position of approximately S$3.4 million and S$2.9 million as of September 2021 and December 2020, respectively.
Explaining further, the report revealed that the firm was in a negative equity position of S$4.8 million as its net liabilities increased by S$1.2 million in the 9 months through September 2021. The company in its filing with the bourse operator attributes this to (1) the recognition of the equity component of the convertible notes of approximately S$0.2 million; and (2) offset by losses incurred for the 9 months approximately S$1.4 million.
Ayondo said in October that it is reviewing a notice of delisting from the Singapore Exchange (SGX) and intends to make an appeal.
The SGX is proceeding to delist Ayondo following its failure to comply with criteria to exit from the bourse’s watchlist. However, Ayondo explained that it has not received any proposal or exit offer, nor it has the cash resources to consider making such an offer to its shareholders.
Ayondo, which was the first fintech company to IPO on the Singapore Stock Exchange (SGX), faced working capital deficiency from continued losses. According to its filings, the business was hit hard by regulatory changes relating to product intervention imposed by European and UK regulators.
Shares of Ayondo were halted and then suspended from trading since January 2019, after it faced intense scrutiny over its financial situation, business viability issues, and concerns raised by regulators over its compliance requirements in the UK.
To resolve these issues, Ayondo tried to reduce its liabilities through the sale of its UK unit Ayondo Markets Limited (AML) for £5.7 million to its Netherlands-based white label partner, BUX Holdings.