Novatti’s cashflow continued to strengthen over the FY20 year. Product manufacturing and operating costs as a percentage of receipts from customers reduced from 75.9% in FY19 to 68.5% in FY20, reflecting the lower direct costs to deliver its increased processing revenue. Novatti was almost cashflow positive as net cash used in operations for the quarter narrowed to just $16,000, down from $543,000 in the March 2020 quarter.
While Novatti held $2.6 million in cash at the end of the June quarter, this does not include the $10.2 million raised through a share placement announced at the end of the quarter. Going forward, Novatti’s management will continue to prudently balance cashflow to navigate the challenges of COVID-19 while pursuing its growth strategy.
Revenue Despite the widespread disruption caused by COVID-19 during the June quarter, Novatti maintained record operating revenue of $3.05 million (unaudited), slightly higher than its March 2020 quarter result.
This result furthers Novatti’s record of delivering consistent, long-term revenue growth with the FY20 total revenue increasing more than 33 per cent on the previous financial year's $8.9m to $11.86 million (unaudited).
NOV Price at posting:
23.5¢ Sentiment: Buy Disclosure: Held
