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The Index of all ordinaries (ASX: XAO) is up 0.3% today, but one ASX telecoms company is leaving those gains in the dust with a whopping 22.1% gain.
And no, it’s not Telstra Corporation Ltd (ASX: TLS)which increased by 1.3%.
The ASX telco share in question Company Vonex Ltd (ASX: VN8).
The microcap closed yesterday at 7.7 cents and is currently trading at 9.4 cents, giving it market capitalization north of $31 million.
So what’s getting ASX investors interested today?
ASX telco shares soar on cash flow outlook
As a result of the final payment, Vonex pays Symbio $31 million in full.
The ASX telco said it would improve net cash flow by $833,000 per month.
Commenting on the milestone, Vonex CEO Matt Fahey said:
Our completion of the deferred payment acquisition of Symbio Ltd marks the beginning of a new era for Vonex with greater financial flexibility.
We are excited to deliver further growth next year, completely unencumbered by deferred acquisition payments, as we continue to develop M&A opportunities that offer the potential to expand Vonex’s customer base, geographic presence and product mix.
Vonex listed on the ASX on 13 June 2018.
How does Vonex work?
Including today’s intraday jump, the ASX telco is down 15% year-to-date. This compares with the 9% loss posted by All Ordinaries so far in 2022.
Vonex reported several strong quarterly results on July 29, causing the stock to close 1% higher for the day. Highlights included record quarterly gross unaudited revenue of $10.5 million, an 81% increase over the prior corresponding period.