Butn Limited Reports Record Revenue and Positive Cashflow in Q4 FY24
BTN (BTN) Share Update July 2024 Sunday 21st
Butn Limited Achieves Record Revenue and Positive Cashflow in Q4 FY24
Butn Limited (ASX: BTN) has announced record revenue and positive operating cashflow for the fourth quarter of FY24, marking a significant milestone for the company.
Instant Summary:
- Record quarterly revenue of $3.5 million, up 7% from the previous corresponding period (pcp).
- Positive net operating cashflow of $0.2 million.
- Improved revenue margins of 3.0%, up from 2.8% in the pcp.
- Record cash receipts of $3.5 million, up 7% from last quarter.
- Successful business optimization program completed, resulting in significant cost savings.
- $5.0 million of additional equity raised in the quarter.
- Closing cash position of $13.3 million, up 35% from Q3.
Record Revenue and Positive Cashflow
Butn Limited has reported record revenue of $3.5 million for Q4 FY24, a 7% increase from the previous corresponding period (pcp). This marks two consecutive quarters of growth, driven by improved revenue margins and strong platform originations.
The company also achieved a positive net operating cashflow of $0.2 million, a significant milestone given the seasonally slow month of June. This was supported by record cash receipts of $3.5 million, up 7% from the last quarter.
Business Optimization and Cost Savings
Management's focus on business optimization has resulted in significant cost reductions at staff, administration, and corporate levels. This has contributed to the company's improved financial performance and positive cashflow.
Butn successfully raised $5.0 million of new equity through an equity rights issue, fully underwritten by one of the company's largest shareholders. This capital raise will support further growth initiatives and provide financial flexibility.
Platform Growth and Strategic Partnerships
Butn's platform achieved record quarterly originations, up 32% on pcp, highlighting the strong endorsement and adoption of its product offering by the SME community. Platform originations accounted for approximately 35% of total Q4 originations.
The company also reported record user transactions and engagement for the third consecutive quarter, driven by strategic partnerships with major shareholders like MYOB and others. This reinforces the significant benefits and utilization of Butn's embedded funding technology.
Future Focus
With the business optimization program largely complete, Butn is now intensifying its focus on new organic and inorganic growth opportunities. The company aims to leverage its operating leverage and strong relationships with strategic partners to drive revenue growth and cash generation in FY25.
The record revenue and positive cashflow are likely to boost investor confidence in Butn Limited. The successful business optimization program and strategic partnerships position the company well for future growth. The additional equity raised provides financial flexibility, which could support further expansion and innovation.
Investor Reaction:
Investors and analysts have reacted positively to the announcement, highlighting the company's strong financial performance and growth potential. The successful capital raise and strategic partnerships are seen as key drivers of future growth.
Conclusion:
Investors should keep an eye on Butn Limited's future growth initiatives and strategic partnerships. The company's strong financial performance and positive cashflow position it well for continued success in FY25. Subscribe to our newsletter for regular updates on Butn Limited and other stock market news.