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Swift Media (ASX:SW1) - CEO, Pippa Leary - The Market Herald
CEO, Pippa Leary
Source: The Australian
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  • Entertainment system specialist Swift Media (SW1) ended the June quarter with a stronger cash balance than March despite some tough COVID-19 challenges
  • Swift CEO Pippa Leary and CFO Geoff Greenberg provided some extra details to last month's June quarterly financial report today
  • The company's top management said despite the challenges brought on by the pandemic, it was able to win $3.2 million worth of contracts and increase its cash position by $550,000 over the June quarter
  • Part of the bolstered balance sheet comes from an entitlement offer completed over the quarter
  • However, the company said it expects September quarter costs to be lower
  • Yet, despite the optimistic outlook from Swift company shares closed 3.03 per cent lower at 3.2 cents each.

Entertainment system specialist Swift Media (SW1) ended the June quarter with a stronger cash balance than March despite some tough COVID-19 challenges.

The company provided some extra details to its latest quarterly financial report from late-July in an investor presentation today.

Swift CEO Pippa Leary said the company was initially planning to cut annual costs by around $8 million as COVID-19 impacted business, but the company then ended up landing $3.2 million worth of contracts despite the pandemic. As such, the company needed to spend a bit more than planned over the quarter to deliver on those contracts.

Swift provides on-site entertainment and communication systems for various sectors, including mining and resources, aged care, and more.

A major contributor to the contract wins was the launch of the Swift Plus product, designed for aged care customers. Despite lockdowns around the country, Swift was able to install the Swift Plus system into over 600 new rooms over the June quarter, Pippa said.

"[Swift Plus] solves both the social isolation problems for residents and their families that COVIDD is highlighting, as well as helping the facilities meet their communication and OHS compliance requirements across multiple sites," she said.

Importantly, she told shareholders the company was able to "fix" its Medical Media business, which until the end of the June quarter has been burning cash. With a new sales model and restructured business, the medical entertainment arm is now profitable.

Meanwhile, Chief Financial Officer Geoff Greenberg, who only stepped into the role last month, explained that though cash receipts were down 18 per cent for the quarter, Swift actually has more cash on hand than it did at the end of March.

The company pulled in $3.3 million through an entitlement offer over the June quarter and was able to use the cash to pay off some important debt. This, combined with other proceeds from investing activities and JobKeeper payments, meant Swift's $2.4 million cash on hand at the end of June was $550,000 more than March's cash balance.

Finally, Geoff said several one-off costs brought quarterly cashflow down, meaning it's likely the company won't' spend as much over the September quarter.

Despite the optimistic outlook from Swift's top management, company shares closed 3.03 per cent lower at 3.2 cents.

SW1 by the numbers
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