The Melbourne-based technology company jumped up over 27% on the back of strong performance.
Trading at $0.037 at the time of writing, the AD1 Holdings Ltd [ASX:AD1] share price retraced following an announcement at the start of this month.
What’s happening at AD1 Holdings?
Specialising in customer-branded recruitment platforms, software billing services, and management platforms, AD1 recently announced their first cash flow positive quarter.
They generated $217,000 in net cash from operating activities.
The company achieved this by securing a variety of new government contracts with both the New South Wales and Victorian governments.
This was coupled with the announcement of a renewal with AD1’s oldest customer — the New South Wales Government — for a further two years.
The company also achieved a significant reduction in out flows compared to last year.
This was on the back of cost savings for the company of approximately $5 million per year.
Where to from here for AD1 Holdings?
Today’s announcement is a strong positive for the nearly $16 million market-capped business,
The company announced a 52% increase in cash receipts compared to the same time last year, up to $3.648 million.
With the government contracts in place and a string of other opportunities in advanced stages of discussion, AD1 news flow could potentially drive its share price higher.
Looking at the charts you can see these levels.
The AD1 share price is sitting at $0.037, and on the back of a lot of good news for the company the next level in focus is $0.039.
Should the price be able to push through this, the level of $0.045 may provide future resistance.
On the downside if the price were to fall back again, then levels of $0.027 and $0.022 may provide support in the future.
For Money Morning