Subiaco-based Capital Intelligence Ltd plans to raise $2 million through a share placement, with funds to be used for working capital and expansion strategies.
Capital Intelligence, through its wholly owned subsidiary HomeTrader Pty Ltd operates an education business which provides retail traders and investors with the knowledge and tools to successfully engage financial markets.
The HomeTrader business has been operating since May 2000 delivering membership based education products and services to many thousands of customers. HomeTrader has established training centres in all major Australian capital cities.
The company's strategy is to utilise its large customer base and education based infrastructure as a platform from which its range of products and services can be expanded.
Transaction Services Business
In December 2007 Capital Intelligence expanded its operations to include the provision of Contracts For Difference (CFD) to its existing clients and the wider market. HomeTrader Financial Markets Pty Ltd (HTFM) provides clients with a CFD trading platform backed up by a dedicated team of qualified dealers.
The transaction services business currently has approximately 700 customer accounts, which in the last three months have collectively made over 16,000 CFD transactions. The Company has been extremely pleased with the growth experienced in the CFD business to date, in what has been a difficult period for the financial markets.
The Company intends to focus on further developing its transaction services business through:
- Broadening the range of instruments available to trade - HTFM currently offers CFDs but plans to expand into equities and exchange traded options in the coming months.
- Provide value added services to standard broking -The Company is well positioned to add value to its transactional business through its educational product offerings in order to create a competitive advantage in this market.
- Strategic acquisitions - the Company is investigating synergistic acquisition opportunities of equities and/or derivatives broking firms to expand its transactions services business
