The Cirralto (ASX:CRO) share price is hitting 52-week highs today

The Cirralto Ltd (ASX: CRO) share price is hitting a new 52-week high today, but with no news out, we take a look at what's going on.

Mitchell Lawler

Mitchell stumbled upon the concept of investing when in high school, devotedly urging his parents to put some money into a handful of technology companies with increasingly popular products among his demographic – many of which have gone on to great success. It wouldn’t be until 2017, some five years later, that Mitchell became an investor of his own money. Having studied and worked as a mechanical engineer in the building services industry, Mitchell takes a methodical and analytical approach to evaluating businesses. Rather than relying purely on numbers, Mitchell drills beyond a company’s metaphorical mantle to unearth obscure patterns or competitive advantages that would go otherwise unnoticed. His expertise resides within areas such as software, consumer goods, and building services equipment. However, his quest to find quality companies that set the industry standard and flex some degree of an impenetrable position has no limits – small cap to mega cap, cosmetics to healthcare – if it’s an exceptional business it’s on his radar.

Published February 16, 2021 3:43 pm AEDT

The Cirralto Ltd (ASX: CRO) share price is setting 52-week highs today, even though there are no fresh announcements from the company. There appears to be a huge inflow of interest, demonstrated by the volume traded today. Currently, the number of shares traded is sitting around 198 million, which is nearly sixfold the monthly average.

With no news out from the company, let's take a look at recent announcements and the space that Cirralto operates in.

Rocket shooting out of investors outstretched hands to signify fast growth of ASX tech share — Image source: Getty Images

Buy now, pay later boom!

You guessed it! Cirralto is another high flying buy now, pay later (BNPL) provider. Over the last couple of days, a number of ASX-listed BNPL shares have received an influx in interest. Whether the market has a new-found spur in optimism for the sector or just pure speculation, we have now seen the following shares race to new heights:

IOUpay Ltd (ASX: IOU) – a recent BNPL entrant to Malaysia, up 259% in the last month
Fatfish Group Ltd (ASX: FFG) – a tech investment firm that holds a stake in a recent Singaporean-based BNPL entrant, up 156% in the last month.
Zip Co Ltd (ASX: Z1P) – Afterpay competitor with global operations, up 126% in the last month.

Cirralto offers digital payment services for business to business (B2B) transactions. One of these offerings is an instalment payment service that is essentially a BNPL between businesses, rather than for consumers. The product at the forefront of Cirralto's campaign is its 'Spenda' software solution – integrated with Xero, Myob, Quickbooks, WooCommerce, and more.

Recent Cirralto business activities

The company provided its quarterly activities report for the December ending quarter on 28 January. Cirralto reported quarterly revenue of $329,943 – an increase of 84% from the prior period.

Additionally, Cirralto highlighted agreements made in December with global payment providers Fiserv, Visa, and Mastercard.

As a result of the low cash flows from operating activities, Cirralto also tapped the market for a capital raise of $2.8 million during the period, bringing its cash balance to $3.95 million as of 31 December 2020.

Cirralto share price snapshot

The Cirralto share price at the time of writing is up 29.8%, trading at 8.7 cents a share. In the last 12 months, the share price has appreciated by 1800%. For comparison, the biggest ASX-listed BNPL player, Afterpay Ltd (ASX: APT) increased 284% during the same time frame.

Cirralto's market capitalisation is now $115 million, making it a small-cap stock.

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