Energy Action Limited - Quarterly Cash Flow Report - 30 June 2024
ENERGY ACTION LIMITED (EAX) Share Update July 2024 Wednesday 24th
Energy Action Limited Reports Quarterly Cash Flow Update
Energy Action Limited (ASX: EAX) has released its quarterly cash flow report for the period ending 30 June 2024, showing a positive net cash flow from operating activities despite some challenges in investing and financing activities.
Instant Summary:
- Net cash flow from operating activities: $657,000
- Total cash and cash equivalents at end of period: $1,455,000
- Payments for product development capitalised: $220,000
- Proceeds from equity securities: $1,004,000
- Repayment of borrowings: $1,000,000
Operating Activities
Energy Action Limited reported a net cash inflow of $657,000 from operating activities for the quarter. This was primarily driven by receipts from customers totaling $3.588 million, offset by payments for product manufacturing and operating costs ($1.250 million) and staff costs ($1.505 million).
Other significant operating expenses included advertising and marketing ($75,000) and interest payments ($110,000). Despite these expenses, the company managed to maintain a positive cash flow from its core operations.
Investing Activities
In terms of investing activities, Energy Action Limited spent $220,000 on product development capitalised and $6,000 on property, plant, and equipment. There were no proceeds from the disposal of assets or investments during this period, leading to a net cash outflow of $226,000 from investing activities.
Financing Activities
The company raised $1.004 million from the issuance of equity securities. However, this was offset by significant repayments of borrowings amounting to $1 million and repayment of lease liabilities totaling $61,000. The net cash flow from financing activities was a modest inflow of $15,000.
Cash Position
At the end of the quarter, Energy Action Limited had cash and cash equivalents totaling $1.455 million, an increase from $1.009 million at the beginning of the period. This improvement in cash position reflects the company's ability to generate positive cash flow from its operations despite challenges in other areas.
The positive net cash flow from operating activities is a strong indicator of Energy Action Limited's operational efficiency and ability to generate revenue. However, the net outflows in investing and financing activities highlight areas where the company needs to manage its resources carefully. The overall increase in cash and cash equivalents is a positive sign, but investors should keep an eye on the company's future financing and investment strategies.
Investor Reaction:
Analysts have noted the positive net cash flow from operating activities as a good sign of the company's financial health. However, there are concerns about the ongoing expenses in product development and the significant repayments of borrowings. Investor sentiment remains cautiously optimistic, with a focus on the company's ability to maintain positive cash flows in future quarters.
Conclusion:
Investors should monitor Energy Action Limited's future cash flow reports and strategic decisions regarding financing and investments. The company's ability to sustain positive operational cash flow will be crucial in maintaining investor confidence and supporting long-term growth.