Published on: November 18, 2016
Strategy credible; delivery ahead of track
We initiate coverage on Crossrider following a period of significant change for the Group which has brought new management and a new strategy. The Group remains well-funded with cash of U$70.2 million as at the end of June 2016. We suggest that investors take time to view the considerable changes at Crossrider and its focused strategy for organic and acquisitive growth. Recently, Crossrider announced the purchase of DriverAgent for U$1 million – a product already successfully promoted on Crossrider’s app distribution platform. This bolt-on acquisition is the first under the new
management team with more such deals likely. Crossrider’s management have suggested that any subsequent large acquisitions will be of businesses which are generating profits. This, along with the recent H1 results, points the way to a clearly-defined, well-articulated strategy that is already being delivered at a rapid pace.