Respiri Limited's FY 2024 Financial Results: Revenue Grows, Losses Increase
RESPIRI LIMITED (RSH) Share Update August 2024 Tuesday 27th
Respiri Limited Reports Increased Revenue but Higher Losses for FY 2024
Respiri Limited (ASX: RSH) has announced its financial results for the year ended 30 June 2024. While the company experienced a significant increase in revenue, it also reported a larger net loss compared to the previous year.
Instant Summary:
- Revenue and other income increased by 56.85% to $1,038,517.
- Net loss after tax attributable to members rose by 28.76% to $7,436,218.
- Operating cash outflow increased by 47.91% to $6,641,348.
- No dividends were paid or recommended for the financial year.
- Net tangible assets decreased from $826,890 to $597,449.
Financial Performance
Respiri Limited reported a 56.85% increase in revenue and other income for the financial year ended 30 June 2024, totaling $1,038,517. This growth was driven by increased operating revenue from RPM, devices, and subscription fees, which amounted to $456,914.
Despite the revenue growth, the company reported a net loss after tax of $7,436,218, up 28.76% from the previous year's loss of $5,775,290. The increase in losses is attributed to higher consulting, employee, and director expenses, which totaled $3,908,544, as well as corporate administration expenses of $2,795,572.
Operating Cash Flow
The net cash used in operating activities rose by 47.91% to $6,641,348. This increase is due to higher payments to suppliers and employees, which amounted to $7,357,505, compared to receipts from customers of $130,994.
Assets and Liabilities
As of 30 June 2024, Respiri Limited held $2,751,565 in inventories and $762,875 in cash on hand. The company's net tangible assets decreased to $597,449, down from $826,890 in the previous year. This decline is reflected in the net tangible assets per share, which fell from 0.10 cents to 0.05 cents.
Dividends and Loss Per Share
The company did not pay any dividends during the financial year, and the directors do not recommend the payment of a dividend for FY 2024. The basic and diluted loss per share increased slightly to 0.73 cents, compared to 0.72 cents in the previous year.
The increase in revenue is a positive sign for Respiri Limited, indicating growth in its core business segments. However, the significant rise in net loss and operating cash outflow may raise concerns among investors about the company's financial health and sustainability. The decrease in net tangible assets also suggests a weakening balance sheet, which could impact investor confidence.
Investor Reaction:
Analysts are likely to have mixed reactions to Respiri Limited's financial results. While the revenue growth is promising, the higher losses and increased cash outflow may lead to caution among investors. The company's ability to manage its expenses and improve profitability will be crucial in maintaining investor trust.
Conclusion:
Investors should closely monitor Respiri Limited's strategic initiatives to control costs and enhance revenue growth. The company's performance in the coming quarters will be vital in determining its long-term prospects. Staying informed about Respiri Limited's updates and market trends will help investors make well-informed decisions.