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- Sports technology company Catapult Group International (CAT) has recorded $9 million in net free cash for the 2020 financial year
- This is a massive $24.1 million improvement on the 2019 financial year result and means CAT became cash-flow positive a year earlier than forecast
- Additionally, Catapult expects to report annual revenue between $100 million and $101 million, while the earnings before interest, taxes, depreciation, and amortisation (EBITDA) is expected to hit between $11.5 million and $12.5 million
- Crucially, the company says it has continued to win new customers and keep existing clients during lockdowns around the world
- On market close, Catapult is up 10.6 per cent and is trading for $1.41 per share
Sports technology company Catapult Group International (CAT) has recorded $9 million in net free cash for the 2020 financial year.
This result is a massive $24.1 million improvement on the 2019 financial year result and means CAT became cash-flow positive a year earlier than forecast.
The group’s revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) also continued to grow despite sporting games around the world being postponed.
Additionally, Catapult expects to report annual revenue between $100 million and $101 million, while the (EBITDA) is expected to hit between $11.5 million and $12.5 million.
The company finished off the financial year with $27.5 million cash in the bank.
In the early stages of COVID-19, Catapult management started to conserve its cash by implementing measures and managing working capital. This helped the company maintain a strong cash position.
Customer demand
Many sport teams are back at work and continue to use Catapult’s technologies. Leagues such as K-League, Bundesliga, Championship League, NRL and AFL have all restarted in their respective countries.
Catapult has continued to win new customers and keep existing clients during the lockdowns around the world. It is expecting revenue that was expected to be made in the last quarter of FY20, is now expected to be made in the first half of FY21.
CEO Will Lopes is pleased with the positive free cash flow year.
“These results demonstrate that we can control costs and investment to generate cash, and the potential this gives the company as we grow. As I stated when presenting our 1H20 results, we will continue to invest in customer solutions with a lens that maximises long-term free cash flow,” he said.
“While we expect the sales impact of COVID-19 to continue for some time, our pipeline remains strong for FY21,” he added.
On market close, Catapult is up 10.6 per cent and is trading for $1.41 per share.
