Total
0
Shares
Spectur (ASX:SP3) delivers best quarterly cash flow performance
  • Solar powered security system provider, Spectur (SP3) has delivered the best quarterly cash performance in the Company’s corporate history and its maiden positive cash flow quarter
  • $79,000 was generated in the second quarter of the 2020 financial year
  • Spectur says the positive quarterly performance follows a sustained period of financial improvement compared to 2018
  • The cash flow exceeds their own internal forecast
  • Spectur (SP3) closed in the green a healthy 7.14 percent today, trading at 10.5 cents apiece

Solar Deterrence security system Spectur (SP3) has delivered it's best-ever quarterly cash flow performance.

$79,000 was generated in Q2FY20 which provided Spectur's first positive cash flow quarter.

On October 1, 2019 Spectur had cash at bank of $2.008 million, while as of January first, 2020, that figure was up to $2.619 million.

Background

Spectur Limited is a Perth based company, first listing on the ASX on August first, 2017, operating in Australia and New Zealand.

The company provides deterrence and surveillance systems with an associated cloud based platform, which is remotely accessed and connected via 3G/4G technology.

This includes solar powered security cameras, which is describes as a "computer with a lens."

The camera's record in high definition and include features such as pre-recorded spoken word warnings to criminals, once they step into the camera's field of view.

The system also incorporates AI, lighting and a hardware Internet of Things (IoT) platform.

The system has the ability to report any activation instantly to a monitoring station, and sends emails and app alerts.

Spectur is currently implementing a strategic growth plan to build market dominance in the Australian government and utilities sector, while also expanding it's existing position in the building/construction/civil industry.

Cash Performance

Spectur says the positive quarterly performance follows a sustained period of financial improvement compared to 2018.

It says as a result, the cash flow performance is well ahead of their own internal forecast.

The net cash inflow of $79,000 for Q2 FY20 is on the back of operating cash flow receipts from customers of $1.493 million and net operating cash inflow of $140,000.

The company's net operating cash outflow for Q2 FY19 was $544,000, a $684,000 improvement on the FY19 comparative quarter.

The Q1 FY20 net operating cash outflow was $530,000, a $670,000 quarterly improvement.

In Q2FY20, Spectur received a $332,000 Research and Development (R&D) tax refund, which was substantially less than the Q2FY19 R&D tax refund of $464,000.

Excluding the R&D tax refund, underlying operating cash outflow was approximately $64,000 per month, $113,000 a month less than Q1FY20

The company says they're taking a prudent approach to cash control, improving cash flow dynamics over the historic and forecast consumption rates.

In addition to the company's improving cash flow performance, Spectur says it has also maintained healthy growth during the period with revenue increasing to $1.362 million for the quarter; $2.619 million for the half year.

Speaking about the positive cash flow performance, Spectur Managing Director, Gerard Dyson said the company's prudent position on cash and business management assisted in delivering a strong quarterly and half yearly result.

"The cash result is particularly pleasing as we have had a normalising of inventory stocking levels compared with prior periods, as well as additional recruiting and R&D costs in the period," Gerard said.

“We will continue to take a prudent approach to managing cash on our journey to our key milestones of consistently positive earnings and cash flow, while maintaining and building on the top line growth that Spectur can deliver as the premium brand in solar cameras with AI and IoT," he told the market.

Spectur says it continues to expect future positive earnings and operating cash flow.

Spectur (SP3) closed in the green a healthy 7.14 percent today, trading at 10.5 cents apiece.


Subscribe


SP3 by the numbers
More From The Market Herald
M.Power (ASX:MPW) sells iSeekGolf.com to NBC Sports

" M.Power (ASX:MPW) sells iSeekGolf.com to NBC Sports

Operational software provider M.Power (ASX:MPW), or MSL for short, is selling its tee time booking platform iSeekGolf.
Wisr (ASX:WZR) raises $33.5M to accelerate growth

" Wisr (ASX:WZR) raises $33.5M to accelerate growth

Wisr (WZR) has received commitments to raise $33.5 million to accelerate the company’s growth.
LawFinance (ASX:LAW) announces entitlement offer to raise more than $35M

" LawFinance (ASX:LAW) announces entitlement offer to raise more than $35M

On January 14, 2020, LawFinance (LAW) announced a partially underwritten 1 for 1 non-renounceable entitlement offer to raise more than $35 million.
Zip Co (ASX:Z1P) hits 2020 high after strong quarterly report

" Zip Co (ASX:Z1P) hits 2020 high after strong quarterly report

Fintech darling Zip Co (Z1P) has climbed to a 2020 high after releasing its trading report for the December 2019 quarter.