One of the best performers on the local market on Wednesday was the iSignthis Ltd (ASX: ISX) share price.
The neobank and regtech company's shares raced 20% higher to an all-time high of $1.24.
This latest gain means the fast-growing company's shares have now gained a remarkable 725% since the start of the year. To put that into context, a $10,000 investment on January 1 would now be worth $82,500.
Why did the iSignthis share price rocket higher?
Investors were buying the company's shares on Wednesday following the release of its half year results.
During the six months to June 30, iSignthis achieved operating revenue of $7.5 million and total revenue including other income of $8.2 million. This was a 49% and 48% increase, respectively, on the prior corresponding period.
The company reported a loss before interest and tax of $0.3 million and a loss after tax of $0.7 million.
However, its profitability is expected to improve significantly in the second half. So much so, management has maintained its EBIT guidance for FY 2019 of $10.7 million.
This is expected to be driven by strong Gross Processed Turnover Volume (GPTV) growth, merchant service fees, and increasing approvals. In fact, as of July 31, actual annualised monthly GPTV stood at ~$830 million, which was almost double what it achieved just one month earlier.
Given this impressive growth, I think the company has a very good chance of hitting its guidance for the full year.
Should you invest?
I've been very impressed with the company's performance this year and believe it has significant potential. Especially after the recent appointment of a National Australia Bank Ltd (ASX: NAB) executive as its chief financial officer. This could make it a real force in the industry in the coming years if all goes to plan.
However, it is a high risk investment option and largely unsuitable for the majority of investors. So I would suggest you approach with caution.
