19 August 2020Nearmap group cash balance at 30 June 2020 is $33.8 million, down 55% from FY19. Group cash is down due to Nearmap’s stepped up investment across all areas of the business to build saleable foundations for future growth. Importantly, in April, Nearmap deployed prudent cost management to preserve cash, maintain a strong balance sheet and maximise flexibility for the future. The cost management initiatives include reduction of board and chief executive officer compensation of 25%, reduction of all other employee remuneration of 20% and deferral of FY20 short-term inventive bonus schemes and reductions in permanent headcount equivalent to 10% of the company’s cost base. As of today, Nearmap has not announced any capital raising plans.
What is the outlook forNearmap?
The outlook for Nearmap is potentially positive as Nearmap could become the global leader within the market of location intelligence.
Nearmap’s Chief Executive and Managing Director Dr Newman mentioned that Nearmap is still in a strong position to maintain growth and is remained focused on its customers and core growth verticals in FY21. It is also noted that Nearmap’s cash management initiatives announced in April should not impact the company’s key growth initiatives.
https://www.australianstockreport.com.au/insights/nearmap-ltd-fy20-results-share-price-down-12
