Peppermint Innovation (ASX: $PIL) Half-Year Report Overview

Peppermint Innovation Limited (ASX: $PIL) has reported its half-year results for the period ending 31 December 2023. The company acquired the established and proven 'Application Modernisation' business division, focused on Artificial Intelligence and Customer Experience (AI & CX), from ASX-listed XPON Technologies. The acquisition included Xpon Digital Limited (renamed Peppermint Intelligence Limited 'PINT') and Holoscribe Australia Pty Ltd (renamed Peppermint Intelligence Pty Ltd 'PIPL'). Peppermint also secured contracts worth approximately AUD$365,000 in Q423, with a forecast sales pipeline of around AUD $1 million. The company ended the half-year with $1.93 million cash at bank.

Executive Commentary on Acquisition and Strategic Growth

The acquisition of the AI & CX business division from XPON Technologies has been transformational for Peppermint Innovation. It aligns with our growth strategy to pursue strategic M&A opportunities that add value and extract additional revenue from our established EMI licensed technology platform and loan book operations in the Philippines. This acquisition has the potential to turbo charge our revenue growth in a short space of time, especially given the forecasted global economic 'super cycle' with artificial intelligence and decarbonisation as significant driving factors. The acquisition allows us to accelerate our AI transformation across our bizmoLoan operations, particularly in the areas of loan origination, credit scoring, management, and collections, to become a leading automated lending business for the financially underserved.

Outlook and Future Developments

Peppermint Innovation's acquisition of the AI & CX business division from XPON Technologies marks a significant milestone in the company's growth strategy. The forecasted global economic 'super cycle' with artificial intelligence and decarbonisation as driving factors presents an exciting opportunity for Peppermint to leverage its newly acquired AI and CX capabilities. The company aims to continue scaling automation and advancing the future roadmap of core technologies. With a strong cash position at the end of the half-year, Peppermint is well-positioned to further develop and deploy additional enhancements to improve its bizmoLoan operations and achieve higher profitability.