- Stemcell United (SCU) slumps on the ASX after revealing soft quarter-on-quarter earnings in its latest financial report
- The company says quarterly customer receipts came in at $1.2 million, taking full-year earnings to roughly $7.8 million
- However, the fourth quarter result is lower than Stemcell’s customer receipts from the March 2021 and December 2020 quarters
- For reference, Stemcell’s cash receipts for March and December quarters were $3.7 million and $2.8 million, respectively
- Shares in Stemcell United closed 11.11 per cent lower at 1.6 cents each this afternoon
Biotech company Stemcell United (SCU) has slumped on the ASX today after revealing soft quarter-on-quarter earnings in its latest financial report.
The company reported $1.2 million in customer receipts over the three months to the end of June, though net cash outflows were around $617,000 for the quarter.
Still, thanks to a $3.8 million capital raise in April, Stemcell grew its cash position from $2.6 million at the end of March to $5.3 million at the end of June.
Stemcell management said the quarterly result brings its total customer receipts for the 2021 financial year came to roughly $7.8 million, which is a major increase on the $800,000 in cash receipts from the financial year before.
However, though full-year earnings grew, shareholders seemed disappointed by declining quarterly earnings. For reference, customer receipts were $3.7 million for the December 2020 quarter and $2.8 million for the March 2021 quarter.
In light of this, Stemcell said while its full-year customer receipts were a positive reflection on the implementation of its strategies and operational plans, it remains conservative with is research and development spending.
“Cost management remains a key priority for the business,” Stemcell said today.
Stemcell creates plant-based food, nutrition, healthcare and cosmetics products in the Asia-Pacific region.
The company’s main products are derived from hemp, which Stemcell claims has been cultivated in Asia for millennia, and sea grapes, also known as green caviar.
Stemcell is busy building a mass cultivation aquaculture facility in Singapore from which it plans to produce its plant-based health and beauty products.
Over the June quarter, Stemcell struck two key collaboration deals — one with the University of Malaysia Sabah and one with Temasek Polytechnic. Both deals will aim to see Stemcell ramp up its commercial product development work and build new plant-based products.
Shares in Stemcell United closed 11.11 per cent lower at 1.6 cents each this afternoon. The company has a $15 million market cap.