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

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.