Carbonxt Group (ASX:CG1) has achieved revenue of $5.1 million in the March 2019 quarter – an astounding 191 percent increase on the prior March 2018 quarter.
This result brings revenue for the nine months to $13.1 million, which is more than a 200 percent increase on the comparable nine-month period and sets the company up for a stellar 2019 financial year.
The company has also achieved a “substantial improvement in operating performance” reducing its loss from operations to $0.5 million from $2.4 million in the same quarter last year.
The loss included $0.45 million of inventory that was not used in production during the quarter.
The company is forecasting cash flow positive by June 2019.
Commenting on the result, Carbonxt Managing Director, Warren Murphy said that the company is “very pleased to see operating cashflow improve significantly in the quarter.”
“Operating costs have decreased as we planned and we believe further improvements can be made in the near future,” he said.
Growth to continue supported by increasing sales and demand
Driving the growth in revenue has been the strong sales of its activated carbon (AC) pellet product being manufactured at its Arden Hills facility and continued demand for its powdered AC product.
Its unique selling point is its exclusion of bromine in its products that causes corrosion to plant equipment, which is becoming an increasing concern for potential customers that are now turning to alternative solutions, such as Carbonxt’s products.
To further support its growth, Carbonxt has secured additional funding of $3 million through a new finance facility with provider of hybrid growth capital to ASX small cap companies, PURE Asset Management, and Skye Alba.
The new funding facility is for $5.5 million and also refinances the existing $2.5 million convertible note facility.
“The new facility arranged by PURE provides the Company with operational flexibility,” said Murphy.
The company says it is continuing “to focus on operational improvements to lower its cost of production and achieve the targeted move into profitability.”
The demand for its AC pellets is supporting the growth and Carbonxt is expecting “a significant sales contract during the quarter.”
This content is produced by Star Investing in commercial partnership with Carbonxt. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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