In recent weeks, we’ve seen the human and economic effects of COVID-19 — but we’ve also seen the best of each other.
We see it in doctors, nurses, and first responders who are on the front lines helping people directly affected by this situation. We see it in grocery store clerks, sanitation workers and good neighbours. Most importantly we are seeing it in partners and clients who are helping to keep us all moving forward. Thank you to everyone for doing their part to get us through this challenging time.
Of course, we also understand that the current situation may be causing anxiety in your clients, so we’d like to play our part in fostering stability during this difficult period by reassuring you of how we’re operating day-to-day despite the circumstances we’re all in.
First of all, we want you to know we’re here for you. These are uncharted waters, so if you want to reach out to anyone here at OneVue, please don’t hesitate.
We also wanted to give you comfort around our ability to respond and adapt to the extraordinary and unprecedented economic, logistical and market challenges we are all facing in dealing with COVID-19.
Our primary focus is continuity of client service and the health and wellbeing of our staff. Crucially, to date, our core businesses of Fund Services and Platform Services have continued to operate on a business-as-usual basis, except in the customer service centres as a result of the most recent pension and superannuation changes which has resulted in high volumes of calls and unprecedented levels of inquiry.
We know you may have a lot to manage right now, so our teams are working as quickly as we can to meet your and your clients’ needs, including reallocating staff to our customer service centres.
Fortunately, we were already well-prepared for a pandemic response, as a client base including high-quality institutional clients necessitates a robust business continuity plan (BCP) as part of their due diligence process. Because of this, we are now 100% BCP-ready, and the OneVue BCP team continues to meet daily.
In terms of our business:
- our balance sheet and cash position is the best it has been in over 12 months – in addition to the $8 million in net cash reported at 31 December 2019, we have since then received $4.4m from the sale of the Sequioa shares (part of OneVue’s Sargon security), paid out $ 1.5m for Contingent consideration and added $4m of debt capability. Further cash recoveries from the Sargon receivable will bolster this position
- 96% of our total Group revenues are based on recurring revenues backed by medium to long term contracts
- 63% of total Group revenues are generated by the Fund Services business. This business is not impacted by significant market volatility, with revenues primarily based on processing volumes and superannuation member numbers
- new client transitions in Fund Services are continuing as planned and two new clients have recently been secured
- 37% of our revenues are generated by Platform Services. This business has exposure to market volatility, with the majority of revenues derived from FUA-based fees. At this stage it is clear there will be an adverse impact on revenues and earnings, but it’s not possible to reliably quantify the impact yet as markets remain extremely volatile
- additional initiatives are being taken to manage costs effectively, prioritise capital allocation and support operating cash flow generation
In terms of progress on the Sargon receivable recovery, the sale of Madison Financial Group continues; formal offers have been received and the final level of due diligence is likely to get underway next week.
As we work with all of our clients and partners to address their pressing concerns, our hope is that we’re able to make the short-term better, while we plan together for the long term. I’d like to recognize our team members, as they are working long hours on your behalf.
I also want to publicly thank all of our partners and clients for their professionalism and support, and for working with us to remain calm in the midst of a storm.
We are committed to standing by you in these very difficult times. Take care of yourself and each other.
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