- YPB Group (YPB) posts its lowest operating cash consumption in its history in its quarterly report for the three months to the end of December 2022
- The tight cost control, combined with a 20 per cent quarter-on-quarter increase in cash receipts, resulted in the “best ever” operating cashflow quarter for YPB
- Net cash used in operations came in 36 per cent lower than the September quarter
- The company continued to progress its anti-counterfeit and consumer engagement technologies during the quarter
- YPB Executive Chairman and Group CEO John Houston says the company is preparing for “strong” revenue growth in 2023 and beyond
- YPB ended the trading day up 33.3 per cent at 4 cents per share
Shares in anti-counterfeit technology company YPB Group (YPB) soared more than 30 per cent on Tuesday following the release of its quarterly report for the three months to December 31, 2022.
The company posted its lowest operating cash consumption in its history during Q4 2022. What’s more, this came amid a lift in cash receipts compared to the September quarter.
YPB also said this was partly due to COVID sales impacts starting to ease.
Receipts from customers rose 20 per cent on Q3 2022 but still sat almost 40 per cent lower than receipts posted in Q1 and Q2 in 2022.
However, cash consumption in Q4 was 10 per cent lower than Q1 in 2022, which was YPB’s previous best quarter.
Gross cash operating costs sank 32 per cent compared to Q3’s figures. R&D and staff costs, as well as admin and corporate fees, were all down during the quarter.
YPB continued to progress its new business development but was unable to close some deals before the quarter’s end. Despite this, the company said it remained in a strong position to secure new significant customers in 2023 and beyond.
The company progressed its anti-counterfeit and consumer engagement technologies during the quarter, with further innovations adding to its revenue opportunities moving forward.
YPB’s MotifMicro app underwent upgrades and further testing during the December quarter.
The company said its focus in 2023 was to capitalise on the progress made in 2022, refining its products and greater sales effectiveness to drive revenues well above costs.
YPB Executive Chairman and Group CEO John Houston expressed his delight at being able to put the COVID-riddled times behind the group.
“Despite enormous frustration at ongoing COVID detriments to orders and new business, I’m delighted by the progress YPB has made over the past two years,” Mr Houston said.
“My tight-knit, top-class team and I are excited about demonstrating the benefits of our enormous progress in the form of strong revenue growth and greatly enhanced financial performance over the course of 2023 and beyond.”
Shareholders approved a $1 million convertible note facility from Executive Chairman John Houston in December 2022.
YPB held $666,000 in cash and cash equivalents to end the quarter — a rise from $541,000 at the end of September 2022.
YPB ended the trading day up 33.3 per cent at 4 cents per share.