Servtech sells rent roll for $1.5m

Osborne Park-based software-as-a-service provider Servtech Global has agreed to sell its rent roll business in two parcels totalling $1.5 million.

The sales will be to Summit Development Corporation, part of the Summit Homes Group, and Housemart Real Estate.

Servtech said the move would lower costs and enable it to focus on providing back office transaction technology services.

About 80 per cent of the cash will flow in October, with the remainder to take place within the next six months.

After repaying loans and referral fees, the company will have make about $750,000 cash, according to an ASX announcement today.

ServTech managing director Brett Quinn said the sale had been part of the company’s corporate strategy, to realise value created in one part of the business to fund growth elsewhere.

“We are positioning our brand and our business to develop a more geographically diverse revenue base across multiple industries and products,” he said.

“This sale will free up capital to facilitate continued growth in our business.

“We are a growth business.

“We are growing our revenue, we are growing our product range, we are growing our industry reach and we are growing our market share and the overall size of our markets.

“We are primarily focused on increasing our profit margins through the deployment of back-office transaction technology, so the sale of the rent roll business is a real positive for us, improving our margins and facilitating greater alignment to our core business.”

Servtech shares were up 9.5 per cent to 11.5 cents each at the time of writing.