- Wellness and Beauty Solutions’ (WNB) is set to ramp up sales of its anti-bacterial product MICRO19 to increase its cashflow during the last quarter of the financial year after entering into a joint venture (JV)
- WNB signed an agreement with Piggott Investments and Glegra to form the JV company, MICRO 19, last month
- The JV is producing $0.5 million worth of MICRO19 orders, which will be recognised in the final quarter, with more expected from domestic and international retailers
- WNB reported lower cash receipts in the third quarter, as a result of the retail sector being hit by the recent bushfire and current COVID-19 crisis
- However, the company managed to reduce cash outflow by more than 11 per cent, despite lower sales
- WNB finished on Friday in the grey, with shares trading for 1.1 cents each
Wellness and Beauty Solutions (WNB) is ramping up its joint venture product MICRO19, to increase its cashflow into next quarter.
WNB signed an agreement with Piggott Investments and Glegra to form the JV company, MICRO 19, last month. The company is producing half a million dollars worth of its anti-bacterial MICRO19 product which will be recognised in the final quarter, with more expected from domestic and international retailers.
WNB today released its quarterly update, the third for the 2020 financial year, and reported lower cash receipts as a result of the recent bushfire crisis and current COVID-19 pandemic.
Despite lower third-quarter sales figures of just over $3 million, down from $3.8 million, WNB slashed its cash outflow by more than 11 per cent. This came after the company trimmed costs across product manufacturing and operating, staff, administration and corporate expenditure.
The company reports it has less than $300,000 cash in hand to start the final quarter, however, there are finance facilities available in excess of $3 million to WNB if MICRO19 sales don’t take off as quickly as they’d hoped.
New chairman, Julian Glynn, has been installed with the tasks of guiding WNB through their uncertain future and ensuring maximum profits are gained from the MICRO19 JV.
If the latest announcement is anything to go by, Mr Glynn is well on track to deliver, particularly if sales take off.
WNB finished on Friday in the grey, with shares trading for 1.1 cents each.