TASK Group (TSK) develops and deploys cloud-based, transactional management and mobile customer engagement solutions, primarily for the hospitality sector, that offers clients a single solution for all customer interactions. Operating cash flows for the first half ending September 2023 fell, due to timing factors and additional investment incurred in the development of Task’s proprietary payments solution, TASK Pay. The payments solution has achieved certification in New Zealand and is now 70% complete in Australia. We see the payments solution as a natural extension of TASK’s loyalty, mobile ordering/payment and enterprise management offering. We have increased operating cost assumptions to allow for TASK’s accelerated progress in developing the technology, which reduces our FY24 EBITDA expectations.
The company has cash of $31 million, zero debt and a positive operating and free cash flow outlook. This solid balance sheet position supports the capacity to invest in adjacent solutions and functionality to grow capturable revenues with existing and new customers. TASK also extended the McDonald’s agreement into Taiwan during the half, taking its global agreement to 67 markets. The new contract is further evidence that the McDonald’s agreement is growing. New, likely smaller, customer signings also occurred in Australia and North America during the quarter.