Ann: Q4 FY24 Quarterly Activities Report and Appendix 4C, page-4

Things are looking good at ALC, very happy with these turn of events.

Looking at the report, they’ve had a solid performance and made some smart moves that set them up nicely for the future. Cash flow is looking good - for Q4, they reported a positive cash flow of $5.6 million, and $4.3 million for the second half of FY24.

They also had record cash receipts of $18.6 million this quarter, which is higher than the same period last year (didn't expect that). This shows they’re doing a great job with existing revenue. They’ve also done a great job managing costs, which was obviously a concern a while back. Staff costs were reduced to $6.3 million from $8.1 million in Q3.

Most importantly with regards to cost controls, it's actually strengthen their financial health imo. Reported new sales of $5.0 million in Q4, for the full year, new sales totaled $35.3 million with $6.2 million recognized. They expect FY24 revenue to be between $37.0 million and $37.5 million, with a 74% being recurring revenue. So there's no doubt that existing customers is a huge driver here and it's essentially creating a stable income. Add in the mix North Cumbria with the 40 million or so coming over 10 years, this is scaling up nicely.

Only small concern I can see is only $0.9M of new sales in Q4 was recognised as revenue this year.

For me anyway the biggest takeaways is that they're financially extremely healthy from both positive operating cash flow and cost-saving initiaves. And of course securing major contracts has now created a very stable base (lots of recurring revenue).

I have no doubts this is going back above 0.100, just a matter of when. Will be interesting to see how the amount of selling in next few weeks. Hopefully ppl hold and don't take too many profits, but there are a lot of people in red who will probably cash out.