How good is the bottom line.Only exceptionally profitable, debt...

How good is the bottom line.

Only exceptionally profitable, debt free businesses can survive a 50% drop in sales.

We were expecting the Crap Sales but how good is the bottom line.

Negative operational cash flow ( $295K ) Brilliant its impossibly hard to go broke doing that when you have a strong balance sheet.

The forecast gives us confidence that it's not likely to get worse.

I can stop worrying about them having to sell assets to survive.

$39.2m in the bank to fund Cap X expanding the operations in anticipation of the market recovery and minimal to no cash losses from operations forecast.

Profit forecast

With a profit forecast issued they are duty bound to let us know of any events that are likely to change the forecast by more than 15%.

We can look forward to regular updates if things improve or deteriorate.

Next year is certainly looking more rosy.

While there is differing opinion about the possibility of interest rate cuts this year, there appears to be concensus that rates will drop next year.


Financials
The Company’s balance sheet remains strong, with a closing cash position of A$39.2 million as at 31 March 2024.
During 1Q24, the Company recorded a negative operational cash flow of A$295k for 1Q24 due to lower-than expected sales orders and higher operational costs.

Due to continuing volatile global economic conditions especially in Europe and China, lower-than-expected sales orders and increase in operational costs resulting from new direct subsidiaries in Europe, the Company expects to report a net loss after tax in the range of A$3.3 million and A$3.6 million for financial year ending 31 December 2024 ("FY24").