Selfwealth (ASX: SWF) – client-oriented low fee stockbroker
COMPANY SCOREBOARD
| Pro Plus | Pro | Con Plus | Con |
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ABOUT COMPANY
SelfWealth (SWF) (https://www.selfwealth.com.au/) offers a flat-fee share trading platform to retail investors, and it is Australia’s first peer-to-peer investing solution. The platform features members access to “follow” top investors to help them outperform.
Currently, the company ranks as the fourth player in the online retail broking market.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| SWF | 0.135 | 234304132 | 31631057.82 | 12.4/0 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 3754 | 51.74% | 46.94% | 13.52% | 6550491 | last raise $11.7m@39c |
During FY21, the outgoing founder, Andrew Ward, has sold 9.3m out of 18.3m as of 20 August 2021. By 1 February 2022, he ceased to be a substantial holder.
In February 2022, Andrew Ward noticed to the board his intention of coming back with the support of some 16% of the top 20 holders including himself. In May/June 2023, both the CEO and the Chair have stepped down from the board. In July 2023, CEO resigned as well. In Oct 2023, the company arguably hired a wrong CEO.
BUSINESS
Below is the company’s past five years performance:
| SWF | 2023 | 2022 | 2021 | 2020 | 2019 |
| Operation Revenue | 8993 | 14404 | 14494 | 5251 | |
| Cost of Sale | -9103 | -10678 | -10766 | -5211 | |
| Gross Revenue | -110 | 3726 | 3728 | 40 | 0 |
| Gross Margin | -0.0122 | 0.2587 | 0.2572 | 0.0076 | 0 |
| Overheads | -17459 | -15856 | -8483 | -6032 | |
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -17459 | -15856 | -8483 | -6032 | 0 |
| Operation Profit | -17569 | -12130 | -4755 | -5992 | 0 |
| Other Revenue | -2920 | 226 | 378 | ||
| Interest Expense | 20581 | 5866 | 3883 | 2569 | |
| D&A | |||||
| Income Tax | 0 | 0 | |||
| Net Profit | 92 | -6264 | -646 | -3045 | 0 |
| NOTES | Interest Income $20.3m; paid membership $0.5m; $2.9m impairment | Interest Income $5.85m; paid membership $0.5m | Interest Income $3.86m; paid membership $0.6m | Interest Income $2.57m |
The company will be in an immediate financial difficulty if traders start withdrawing cash.
SUMMARY
The fact the company intentionally doesn’t break down its quarterly receipt between trading, membership, and interest displays an arrogant and untrustworthy management team and the board.