Annual Results29 Jan 2025 07:21
A very positive set of results and about time in my view. Continued good fortune to all HDD holders, those considering getting in and to those just watching. Onwards and upwards!!!
An encouraging recovery in the second half year, with H2 revenues of £2.6m compared with H1 revenues of £2.1m.
· Strong H2 gross margin of 54% (H1: 41%), enabling full year margins of 48% to recover to be in line with the prior year.
· Improved H2 profitability, with a positive adjusted EBITDA of £0.5m (H2 FY23: -£0.1m) at a margin of 19% which reflects the gains achieved from internal efficiency, pricing and cost-reduction actions.
· The business became cash flow positive towards the end of the financial year, benefiting from a reduction of 30% in the cash break-even level of sales since FY22 to just over £5m of revenue per year.
· Management expects strong revenue growth in FY25. Q1 FY25 revenues of £1.3m were ahead of the prior Q1 of £1.1m, in line with expectations, with Q2 expected to benefit from the new aerospace work won recently.
· The year-end cash balance was £0.7m (30 September 2023: £0.7m). This subsequently increased to £1.0m at 31 December 2024 reflecting EBITDA positive trading and working capital benefits. The Board is not currently seeking further funding.
Rgds, S