Capital Market Research: Jayride Group Limited Share Price Analysis

This report provides a comprehensive analysis of Jayride Group Limited's financial performance, focusing on its share price movements and market capitalization. The study examines the company's operations in the e-commerce marketplace, particularly in online travel booking and ground transportation. The report analyzes data from various journal articles, highlighting the company's international expansion, revenue growth, and competitive advantages. The analysis includes a two-year share price trend, revealing fluctuations and the impact of financial performance on share value. The report also discusses the company's challenges, such as negative earnings and cash flow, while acknowledging its growth potential and strategic initiatives. The conclusion summarizes the key findings and offers recommendations based on the financial analysis, providing insights into the company's future prospects and investment considerations.

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
Name of the Student:
Name of the University:
Authors Note:

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Executive Summary:
The paper elucidates the performance of Jayride Group limited by reviewing its recent
performance and movement of the share price. The details obtained from the summary of
some journal article depicting the performance of company has been demonstrated in the
paper. IT has been ascertained from the overall analysis of the share price movement that
there was a decline in the share price in the financial year 2018 as against 2017 when the
share price increased as depicted from the upward movement. In addition to this, it has also
been found that the company is expanding its operations in different countries which is
pushing the growth trajectory.

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Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Analysis of articles:....................................................................................................................3
Conclusion and recommendations:............................................................................................7
References:.................................................................................................................................8

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Introduction:
The report demonstrate the capital market research evaluating the performance of one
of the companies listed on Australian stock exchange. The movement of the share price of
organization has been analysed by collecting the data and gathering the information that is
published in various journal articles and such analysis helped in evaluating the relationship
between the performance and share price of the company. The chosen company for
evaluating the performance is Jayride Group limited which is company based in Australia and
carrying out its operation in e commerce market place. Some of the activities of Jayride
involves providing channel partner with the platforms of travel technology, agencies, travel
brands and access to wholesalers for booking the ground transfer information through its
offering of application programming interface. The organization provide assistance to
travellers in booking ground passenger transport and allowing travellers to compare share
airport shuttles, airport transfers, online booking at fixed price and private transfer
(Jayride.com 2019).
The company was incorporated in the year 2012 which has the platform of providing
seamless channel for travellers to directly connect with more than 3000 transfer companies
and serves customer worldwide (Jayride.com 2019). It is viewed by the managing director
that the company is well positioned for the continuous growth and the strategy framed can be
executed with the help of new funding towards the profitability.

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Discussion:
Analysis of articles:
It was announced by e commerce marketplace that the customers can book online
travel packages and this service is provided in a total of 44 countries in addition to 13
countries across Europe, Asia Pacific and Caribbean. In the latest launch, customers will be
provided with 119 new airport companies and 86 new airports along with scaling up all the
major airports in 44 countries which services 4.6 billion of the total airport passenger trip of
the world. Jayride has been placed on one of the leading airport transport aggregators for the
travellers because of its performance in recent months and they covered 95% of the
destination of travellers (Ercan and Önder 2016).
The international expansion by Jayride would be continued and launching in multiple
new countries. A strong commercial future of the organization is indicated by the amiable
performance figures and the performance is further boosted by the incremental growth. The
total value of transaction of Jayride was up by 13% that is an increase to $ 3.6 million and
this increase was marked due to increase in revenue from the booked passengers trips in the
second quarter of the financial year 2019. A $ 1.7 million of placement of sophisticated
investors was completed at $ 0.43 per share for boosting its chance to sustain the recent
growth experienced by the organization. Existing shareholders as well as institutional
investors supported the placement as it implied that the proceeds would help in accelerating
the growth in the international markets, increase marketing and building technology. In
addition to this, in the past quarter, revenues from fees booked and from commission grew to
almost $ 1 million and thereby registering 93% growth rate as against previous year. The
growth and development in online travel bookings marked a consistent upward trajectory in
the 22nd consecutive quarter of growth of revenue (Schaltegger and Burritt 2017).

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The addressable market of company is increased due to bringing of new airport online
using its roll out strategy. There is consistent growth and increase in momentum of delivery
due to passenger demand. The key driver of growth of revenue of Jayride is booking of
passenger trips which is declaring that the fastest growing segment is marked by the new
destinations. The presence of Jayride in the past year has been expanded from five to eighty
one countries that has helped in accelerated growth of revenue and diversifying channel mix
of revenue. The competitive advantage of Jayride over other aggregators is the contracted
agreements as such aggregators typically do not have direct relationship with most of their
suppliers. Over the past twelve month, there has been an increase number of commercial
agreements by the company with the transport company. Furthermore, without an increase in
the marketing spend by the company, it is expected by the company to experience growth in
revenue from the passenger trips. There has been dramatic increase in the value of Jayride
after the ambition of the complete global expansion is received by the company.
Figure 1: Share price trend of AGL Energy Limited for the past 2 years
(Source: Finance.yahoo.com 2019)

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The above chart depicts the movement in the share price of Jayride Group Ltd for a
time frame of two years. It can be observed from the chart above that there has been wide
fluctuation in the movement of the share price and the highest price reached at .5200 on 2nd of
December, 2018. The price of shares of Jayride group limited continued to fell from the first
quarter of 2018 and reached the lowest at $ 0.25 on 27th June, 2019. The loss making streak
was continued by the company as for the latest financial year, it announced its negative
earnings. It is required by the investors to conduct a reassessment of the loss making
companies more frequently and they should be informed about the cash position of the
business. The cash holding of the company in the last year was $ 4.5 million and this has
resulted in the generation of negative cash flow from day to day activities of amount -$ 3.11
million. Jayride operates in the direct marketing retail industry and internet and such industry
on average generating a positive earnings per share and this implies that the majority of the
peers earning is positive.
However, after witnessing a continuous decline in the recent months, the share price
started rising continuously and reached at its maximum of $ 0.48 on 29th July, 2019. It can be
inferred that the share price fell continuously in the initial year of analysis and thereafter it
started rising and reached at its highest during the last month of the current financial year (St
2018).
The loss attributable to Jayride group can be ascertained by evaluating what is been
experienced by the industry in which the company operates over the last few years. The top
line of Jayride over the past half a decade has risen on average by 61.76% on average and this
is indicative of the fact that the company is in a period of high growth. However, expenses is
much higher than the revenues which leads to annual losses. The online retail industry of
Australia is growing with its average earning of double digit at 14.31% in the past twelve

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months (Matsubara and Endo 2017). This is indicative of the fact that Jayride has not been
able to reap as much as its average peer who are deriving the benefits.
Nevertheless, during the period, there has been rapid growth in the company as it is
focused strongly on building long term performance and future capability. The growth in the
current financial year that is 2018 was delivered within the existing destination only by
expanding the market share. It is observed that Jayride is positioned in the manner that
would result in expansion of the international destinations and continued growth in the
existing destination.
The opportunity to make investment in the country is looked as a value addition in
relation to the share price of the company at the time of investment. In the short term,
additional investment is not actively pursued by the company as it continued to take efforts to
grow its existing business and integration for maximization of synergies. A trade-off is faced
between the risk falling and the risk of depletion of cash reserve and in such situation, it is
required by Jayride to make up the necessary cost in order to keep the business running
(Asx.com.au 2019). There has been significant changes in the state of affairs of the company
as for the market expansion, additional amount of cash has been raised along with the further
development of the technology. No additional circumstances has been risen that would
impact the company significantly for the operations.
Conclusion and recommendations:
From the analysis of the facts presented concerning the performance of Jayride Group
limited, it has been ascertained that although there has been extensive expansion, the overall
performance has not been up to mark due to falling share price in the last year. Company do
not have adherence to strict debt covenants and substantial financial stability is provided by
zero debt. The expanded operations of the company would generate strong cash flow that

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would help in meeting or covering the losses that is made by the organization due to different
activities.

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References list:
Asx.com.au., 2019. [online] Available at:
https://www.asx.com.au/asx/share-price-research/company/JAY/statistics/shares [Accessed
20 Aug. 2019].
Chenhall, R.H. and Moers, F., 2015. The role of innovation in the evolution of management
accounting and its integration into management control. Accounting, organizations and
society, 47, pp.1-13.
Ercan, M. and Önder, E., 2016, April. An Identification of the Accounting Topical Areas and
Quantitative Techniques Used in Three Accounting Journals. In Proceedings of 34th
International Business Research Conference (pp. 4-5).
Finance.yahoo.com., 2019. Yahoo is now part of Oath. [online] Available at:
https://finance.yahoo.com/news/jayride-group-limited-asx-jay-031347787.html [Accessed 20
Aug. 2019].
GmbH, f., 2019. Jayride Group Financials | Markets Insider. [online]
markets.businessinsider.com. Available at:
https://markets.businessinsider.com/stocks/jayride_group/financials [Accessed 20 Aug.
2019].
Jayride.com., 2019. [online] Available at: https://www.jayride.com/wp-content/uploads/asx-
announcements/FY18-Annual-Report.pdf [Accessed 20 Aug. 2019].
Matsubara, S. and Endo, T., 2017. 14 The change and continuity of accounting
professionals. Japanese Management in Evolution: New Directions, Breaks, and Emerging
Practices, p.278.

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Proactiveinvestors UK., 2019. Jayride Group to list on the ASX, aims to expand airport
transport offering. [online] Available at:
https://www.proactiveinvestors.co.uk/companies/news/190664/jayride-group-to-list-on-the-
asx-aims-to-expand-airport-transport-offering-190664.html [Accessed 20 Aug. 2019].
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues,
concepts and practice. Routledge.
St, S., 2018. Should Jayride Group Limited’s (ASX:JAY) Recent Earnings Decline Worry
You?. [online] Simply Wall St. Available at:
https://simplywall.st/stocks/au/retail/asx-jay/jayride-group-shares/news/should-jayride-
group-limiteds-asxjay-recent-earnings-decline-worry-you/ [Accessed 20 Aug. 2019].
van Helden, J. and Reichard, C., 2016. Commonalities and Differences in Public and Private
Sector Performance Management Practices: A Literature Review', Performance
Measurement and Management Control: Contemporary Issues (Studies in Managerial and
Financial Accounting, Volume 31).