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.
Source: Optuma
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.
Source: Optuma
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.
Regards,
Carl Wittkopp,
For Money Morning
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