Ottawa-based Ackroo boosts annual revenues 63% in fiscal 2018

ackroo

Ackroo (TSX-V:AKR) announced Monday it set a revenue record in 2018 thanks to what the Ottawa firm’s CEO is calling a “transformational year” for the company.

In unaudited financial statements, the Ottawa-based gift card and loyalty program provider reported revenues of $4.5 million for fiscal 2018. That’s an increase of roughly 63 per cent over sales in 2017, which were also up 23 per cent from the year before. This past fiscal year also marked Ackroo’s first positive EBITDA.

Driving the growth at Ackroo has been a deal made in October 2016 to acquire M3 Rebel’s loyalty program solution KESM/LoyalMark. CEO Steve Levely told OBJ last year that the acquisition “instantly made the business profitable.”

In addition to bringing in more sales through the acquired company, Ackroo has been cutting margins and paying down its debt, also announcing Monday that it has paid off its debt on assets acquired from Dealer Rewards Canada in 2015 and is close to paying off what it owes to M3 Rebel for KESM/LoyalMark.

In a statement, Ackroo said it is on course to hit $10 million in revenue and get its platform into more than 10,000 locations by 2022.

In a statement released Monday, Levely called 2018 a “transformational year” for Ackroo, which he believes is now set up to scale.

“For several years we have been working towards evolving from being a startup company dependent on investor capital to fund our operations to a growth-stage company that is self-funded and poised for scale,” he said.

“We still have plenty to accomplish in the years ahead. However, we are quite proud of reaching this tipping point for the company and are very excited for our investors, customers and employees for what lies ahead.”

Shares of Ackroo were up two cents on the TSX Venture exchange Monday, trading around 13 cents in the mid-afternoon.