After shooting up by 30.7% yesterday on the back of a business update, the Family Insights Group Ltd (ASX: FAM) share price has since plummeted by 20.59% at the time of writing, dropping back to $0.027 in morning trade.
Yesterday's announcement included an update on the company's business development, commercialisation activities and its retail data platform capabilities.
What was included in the Family Insights announcement?
The announcement outlined that Family Insights Group had successfully completed a comprehensive retail data project with leading online pet supplies company, Pet Circle. While the project was not financially material according to Family Insight Group's directors, they did consider it a milestone for the company. Following the successful completion of this project, Family Insights Group has been invited to submit a further project proposal to Pet Circle with the prospect of ongoing commercial work.
Family Insights Group also announced that it is involved in multiple tender processes with major Australian grocery retailers for the provision of retail data.
Additionally, the company announced that it had received grocery and product pricing from Coles and Woolworths for a period of 12 months, allowing for critical year-on-year pricing and promotional analytics.
Family Insights Group CEO Mr Sean Smith stated:
With data acquisition activities having commenced in June last year the company has now acquired over 12 months of grocery product and pricing data from Coles and Woolworths. This plays critical importance in the commercialisation of the company's grocery pricing and promotional analytics capability as retailers and suppliers planning activities and pricing strategies are often structured based on year on year cycles. We are delighted with the results of our first trial and are now ideally positioned to expand business development activities.
The company also confirmed that its main analytics product, Infocus Analytics, continues to be developed and improved in tandem with Family Insights' commercial activities.
About the Family Insights share price
The Family Insights Group provides data driven products, insights and behavioural research through cloud based mobile and web solutions.
The group released a business update in April outlining the recent performance of the business. It reported that its grocery comparison app 'frugl' was market ready and indicated that it believed frugl's cost-savings ability will be highly relevant during the developing economic crisis engulfing Australia.
It also announced that the company was undergoing a restructure and had implemented austerity measures in order to strengthen its ability to continue operations during the economic fallout of the COVID-19 pandemic. The group indicated that it expected its austerity measures to reduce monthly operational expenditure by approximately $93,000 per month.
The company's cash balance was down $448,000 in the March quarter to $198,000. Family Insights has since raised $660,000 in a capital raising at $0.02 cents per share, which took place in April.
The Family Insights Group share price is up 35% from its 52 week low of $0.02, but is down 46% since the beginning of the year. The Family Insights Group share price is also down 46% since this time last year.
