Advanced Braking Technology - Q4 FY24 Financial Results and Activities Report
ADVANCED BRAKING TECHNOLOGY LTD (ABV) Share Update July 2024 Monday 29th
Advanced Braking Technology Reports Strong Q4 FY24 Results
Advanced Braking Technology Ltd (ASX: ABV), a leading supplier of fail-safe brakes for commercial vehicles, has reported impressive unaudited results for Q4 FY24, showcasing substantial growth in revenue, profit, and overall financial health.
Instant Summary:
- Q4 Revenue from Product Sales: $4.37 million (+24.0% vs. pcp)
- Q4 Gross Margin from Product Sales: 50% (vs. 48.9% pcp)
- Closing cash position: $2.4 million (+17.5% vs. pcp)
- YTD Revenue from Product Sales: $14.72 million (+15.0% vs. pcp)
- YTD Net profit after tax: $1.70 million (+10.6% vs pcp)
Financial Performance
Advanced Braking Technology Ltd (ABT) has reported a robust financial performance for Q4 FY24. The company achieved a revenue of $4.37 million from product sales, marking a 24.0% increase compared to the previous corresponding period (pcp). This growth was driven by strong performance across brake systems and recurring sales of spare parts and consumables.
The gross margin from product sales improved to 50%, up from 48.9% in the pcp, reflecting effective cost and supply chain management. The closing cash position stood at $2.4 million, a 17.5% increase compared to the pcp.
Year-to-Date Performance
For the full year, ABT reported a revenue of $14.72 million from product sales, a 15.0% increase compared to the previous year. The net profit after tax for the year was $1.70 million, up 10.6% from the prior year. The company's focus on customer engagement and expansion in key international markets such as South Africa, Asia, and North America has contributed to these positive results.
Product Launch and Market Expansion
Recently, ABT announced the launch of the Failsafe Sealed Integrated Brake System (SIBS) for the Toyota Hilux light vehicle. This new product is expected to offer mine fleet operators significant benefits, including ABT's market-leading failsafe technology and a total cost of ownership benefit of approximately 23% over the vehicle's useful life compared to standard brakes.
ABT continues to invest in mine safety technology, which is in high demand due to increasing safety regulations and the need for collision avoidance technology. The company's innovation roadmap emphasizes the interoperable relationship between failsafe brake systems and collision avoidance technology.
Financial Update
For the quarter, ABT achieved normalised revenue of $4.52 million, a 22% increase compared to the prior year. The full-year revenue increased to $15.2 million, a 14.2% rise from the previous year's $13.3 million. The overall product sales margin for the quarter was 50.0%, driven by cost management and product mix.
The company reported a net operating cash outflow of $465k for the quarter, with an unaudited quarter-end cash balance of $2.4 million. ABT continues to reinvest resources into R&D activities, contributing to a 13.3% increase in YTD net profit after tax compared to the pcp.
The positive financial results and strategic product launches are likely to boost investor confidence in ABT. The significant revenue and profit growth, along with the strong cash position, indicate a healthy financial outlook for the company. The launch of the new brake system for the Toyota Hilux and the focus on mine safety technology could drive further growth and market expansion.
Investor Reaction:
Analysts are expected to react positively to ABT's strong financial performance and strategic initiatives. The company's ability to achieve significant revenue and profit growth, along with the successful launch of new products, is likely to be well-received by investors.
Conclusion:
Investors should keep an eye on ABT's continued growth and strategic initiatives. The company's strong financial performance and focus on innovation position it well for future success. Subscribe to our newsletter for regular updates on ABT and other stock market news.