Exxe Group's Reports Over 600% Increase in Annual Revenue and 111% in Net Income
- Revenue of $15.3 million for year ended March 31, 2020 versus $2.1 million a year ago
- Net income for the year was $3.6 million as compared with $1.7 million last year
- Shareholder's equity leaped to $116. 2 million, up from $37.8 million
NEW YORK, Aug. 27, 2020 /PRNewswire/ -- Exxe Group, Inc. (OTC PINK: AXXA), a diversified company focused on synergistic acquisitions in financial services, real estate, sustainable technology, and agribusiness, is pleased to announce that its financial results for the year ended March 31, 2020 were substantially higher than results from the previous year. Revenue of $15,341,001 was over 620% higher than the $2,102,415 reported for the year ended March 31, 2019. Net income gains were also very strong, rising over 111% to $3,556,558 from $1,686,106.
Shareholder's equity jumped by over 207% to $116.2 million, up from $37.8 million, aided by a large increase in assets from $65.3 million in the previous year to $192.8 million in assets as of March 2020. Based on the shares outstanding at the end of the period, book value per AXXA share was $0.29, a level many times greater than the stock's recent share price.
Fiscal Year Highlights
While growth in revenue was diverse and across multiple holdings, the primary drivers of the sales growth included new holdings closed during the fiscal year, including the Company's agribusinesses holdings and our Myle-One Beteiligungen AG automotive sector including engine repair and car parts ecommerce business among others. Despite the current COVID-19 pandemic, sales momentum is growing in our key holdings and we expect to continue to generate strong gains in revenue, going forward.
In addition to closing several transactions in the agribusiness, automotive, real estate, venture capital and fintech segments, management made steps to improve shareholder value. Exxe Group entered into a share agreement with its largest shareholder which had a very positive impact on our total share count. A shareholder agreed to convert 50 million common AXXA shares into Series B preferred on a dollar for dollar basis, thereby reducing shares outstanding by over 10%.
Our Future
While we will always have an eye to growing shareholder's equity, management is more focused than ever on producing consistently strong operating results. We believe that above-average operating performance should generate shareholder value reflective of our $15 million revenue base and $3+ million net income mark. Thus, as the integration of recently closed transactions continues, we plan to produce high top-line growth rates, with measurable cross-sales in various industries. Moreover, our plan to layer unique innovation on top of our promising financial services and real estate businesses should begin to bear significant fruit in the coming months and add high value to AXXA.
In conjunction with the operating performance, management will continue to explore alternative financing sources to reduce our financing costs, and thus raise the value of our income statement and balance sheet. In addition, we continue to monitor potential public spin-off opportunities for our group of companies and early-stage firms in the AXXA Venture Fund.
Eduard Nazmiev, CEO and President of Exxe Group commented on the quarter and the future for AXXA: "We are very proud of the incredible financial performance for the year ended March 2020. Very few companies can produce the type of revenue and net income growth that we generated and it is a testament to the entire Exxe Group of companies and employees. Still, we are not resting on our laurels. Instead, we are hyper-focused on achieving shareholder value that corresponds with and reflects our operating results and growth. As we continue to outperform financially and strategically by layering innovation on top of our core businesses, it should have a uniquely positive impact on AXXA, and raise our profile."
About Exxe Group, Inc. Exxe Group is a diversified corporation focusing on acquisitions in the following sectors: real estate, sustainable technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise. For additional information go to www.exxegroup.com.
CONTACT: Exxe Group IR: [email protected], +1-855-285-2285
Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release.
About Exxe Group, Inc. Exxe Group is a diversified corporation focusing on acquisitions in the following sectors: real estate, sustainable technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise. For additional information go to www.exxegroup.com.
SOURCE Exxe Group, Inc.
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