Syntara Limited - Quarterly Cash Flow Report - June 2024
SYNTARA LIMITED (SNT) Share Update July 2024 Tuesday 30th
Syntara Limited Reports Quarterly Cash Flow for June 2024
Syntara Limited (ASX: SYT) has released its quarterly cash flow report for the period ending 30 June 2024, providing investors with a detailed look at the company's financial activities and cash position.
Instant Summary:
- Net cash used in operating activities: $4.236 million.
- Net cash from investing activities: $892,000.
- Net cash from financing activities: -$345,000.
- Cash and cash equivalents at the end of the quarter: $3.52 million.
- Expected R&D tax credit of ~$3.6 million and other significant receipts in the next two quarters.
Operating Activities
During the quarter, Syntara Limited reported a net cash outflow of $4.236 million from operating activities. This includes receipts from customers totaling $116,000 and significant expenditures on research and development ($2.097 million) and staff costs ($1.838 million).
Other notable items include an R&D tax incentive of $5.193 million and discontinued operations leading to a cash outflow of $110,000.
Investing Activities
The company reported a net cash inflow of $892,000 from investing activities. This was primarily due to proceeds from the disposal of businesses amounting to $899,000.
Financing Activities
Syntara Limited experienced a net cash outflow of $345,000 from financing activities. This includes the repayment of borrowings related to discontinued operations ($345,000).
Cash Position
At the end of the quarter, Syntara Limited had cash and cash equivalents totaling $3.52 million. This is a decrease from the previous quarter's $7.154 million.
Future Funding and Cash Flow
The company expects to receive a 2024 R&D tax credit of approximately $3.6 million and the return of a security deposit of $929,000. Additionally, Syntara announced a placement to raise $5 million, which is expected to significantly boost its cash position.
The cash flow report highlights significant cash outflows, particularly in research and development and staff costs. However, the expected future receipts and the recent placement announcement are positive indicators for the company's cash position. Investors may react cautiously to the current cash outflows but could be optimistic about the future inflows and funding.
Investor Reaction:
Analysts are likely to have mixed reactions. While the current cash outflows may raise concerns, the anticipated R&D tax credit and other receipts could mitigate these worries. The successful placement announcement is also a positive sign for the company's financial health.
Conclusion:
Investors should closely monitor Syntara Limited's upcoming financial activities, including the receipt of the R&D tax credit and the return of the security deposit. These developments, along with the recent placement, could significantly impact the company's cash position and overall financial health.