Zurich-based fintech Crealogix (website) is almost systemically crucial for the financial centre. From Aargauische Kantonalbank to Cler, Credit Suisse and Julius Bär to Raiffeisen and ZKB, all have ebanking solutions from the fintech. Now they may be worried about the company’s financial situation. As of June 30, revenues are down 15%, with a loss of 13 million francs. The cash position halved to 14 million franc.
The development of the cash position is theatrical. This has halved compared to 2020-21: from 28 to 14 million. This is reflected in the operating cash flow. Here, the company shows a minus of 13 million for the 12 months of the reported fiscal year.
In other words: Month after month, an average of more than one million in cash flowed out of the supposed super-fintech’s coffers. The loss of blood is becoming dramatic. Software companies should always have a cash reserve of at least three months of sales to absorb setbacks.
For Crealogix, that would be about 25 million. If the company continued to lose a million in cash per month from July to September, its cash balance would be just over 10 million. The situation is serious. Especially if you look at the balance sheet. There, a goodwill mountain of 57 million is piling up. How Crealogix intends to write off this sum remains a mystery.
After all, the write-offs go against equity. But equity is melting like butter in the climatic midsummer: from 44 million to 22 million.