Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-65

Thanks for this post. XTE wasn't on my radar, but a quick look shows that it is an interesting stock, and provides an interesting comparison with DRO.

XTE is a couple of years ahead of DRO (it's been profitable for the last 2 years, and about break even the 2 before). It has higher sales, is profitable (6 M), but with a market cap of only around 50 M (P/E of 8). The Directors issued themselves zero options or shares this year despite increasing both revenue and profit. Having a former federal minister on the board can't hurt either. Superficially XTE looks much cheaper than DRO, though DRO's sales appear to be on a much steeper trajectory which it needs to maintain to retain the generous treatment in the market place compared to XTE.

The accounts of XTE look fine, except a quick look reveals that the cash balance dropped massively during the year. Though the CEO explains this and says:

"The cash balance on 30 June 23 was $6.9m, compared with $36.2m at 30 June 2022. The FY22 cash balance included a $33.4m customer advance received from a large European customer, for goods delivered during FY23."

So adjusting for the customer advance its cash increased from $2.8 to $6.9 M an increase of $4.1 M. It looks like XTE tried really hard to avoid a CR and cut it pretty fine. If they can avoid one in the next six months and continue to increase their profit as they are expected to do, their cash should approach $10 M and they should be in the clear. Kudos to XTE management on looking after their shareholders.

XTE is going straight to the pool room... I mean the watchlist.