Babylon Pump & Power Achieves Record Revenue and First Full Year NPAT
BPP (BPP) Share Update July 2024 Monday 29th
Babylon Pump & Power Reports Record Revenue and First Full Year NPAT
Babylon Pump & Power Limited (ASX: BPP) has announced record revenue and its first full year net profit after tax (NPAT) for the fiscal year 2024, marking a significant milestone for the company.
Instant Summary:
- Record revenue of $41.7M for FY24, representing ~30% compound revenue growth since FY18.
- First full year NPAT of $0.5M for FY24.
- Positive operating cashflow of $7.5M for the full financial year.
- FY24 EBITDA of $6.1M, a 118% increase year on year.
- All deferred consideration for historical acquisitions paid, freeing $2.4M annually for growth initiatives.
- $4.2M of funding available, plus $4.6M receivables due from blue-chip clients.
Financial Performance
Babylon Pump & Power Limited has reported record revenue of $41.7 million for the fiscal year 2024, achieving a compound revenue growth of approximately 30% since its ASX listing in FY18. The company also delivered its first full year NPAT of $0.5 million.
The company recorded positive operating cashflow of $7.5 million for the full financial year. Babylon's FY24 EBITDA was $6.1 million, an impressive 118% increase from the previous year.
Operational Highlights
During the quarter, Babylon completed all outstanding deferred consideration payments for previous acquisitions from operational cashflow, freeing up $2.4 million annually for growth initiatives. The company also secured an additional $1 million in its invoice finance facility with National Australia Bank, bringing the total to $5.1 million.
Segment Performance
Babylon's specialty rental segment saw significant growth, driven by strong demand for vacuum loading and high-pressure industrial pumping services. The maintenance segment also performed well, with a high level of customer enquiries and a strong order book from recurring and new clients.
Health, Safety, and Environmental Initiatives
Babylon completed the year with a Total Recordable Injury Frequency Rate (TRFIR) of 0 and achieved carbon neutrality by offsetting its business operations' emissions through the purchase of carbon offsets.
Outlook
The Board is pleased with the continued improvements in business performance, cash flow, safety, and strategy execution. Babylon plans to continue growing its rental fleet and remains alert for potential acquisitions to expand its capabilities in the mining services sector.
The announcement of record revenue and first full year NPAT is a significant milestone for Babylon Pump & Power. This positive financial performance is likely to boost investor confidence and could lead to an increase in the company's stock price. The completion of deferred consideration payments and the additional funding secured will provide financial flexibility for future growth initiatives.
Investor Reaction:
Investors and analysts have reacted positively to the news, highlighting the company's strong financial performance and strategic execution. The achievement of record revenue and first full year NPAT is seen as a testament to the hard work of the Babylon operational team.
Conclusion:
Investors should keep an eye on Babylon Pump & Power's future growth initiatives and strategic plans. The company's strong financial performance and positive outlook make it an attractive investment opportunity in the mining services sector.