Envirosuite released Quarter 4 results - 8 Jul 2021

They will provide full year results on 18th Aug 2021.

Key take aways are:

- Low customer churn of 2%

- Annual recuring revenue of $46.5m

Total annual revenue should be around $54.5m ($2.4m in non-recurring revenue this quarter).  With market capitalisation of $118m the company appears inexpensive from a price to sales perspective.

However, I am keen to see the full year results in relation to free cash flow and earnings. With the recent capital raising of 14m, the company should have around 25m in cash on hand. Based on previous years earnings (-$19.5m) the company would need to improve profit margins or another capital raising may be on the cards in 1.5years.

Overall, I am a holder of EVS in my personal portfolio. There is strong ESG tailwinds for this company if they continue to execute.

QoQ metrics are attached here.

Envirosuite successfully raises $3.80m under the retail entitlement offer.

This totals to approx $14m in the recent capital raising (June 2021).

The company will be using proceeds to:

1) Strategically accelerate the development and distribution of EVS Water.

2) Expeditie Envirosuite’s product roadmap.

3) Invest into the North American region to grow the Company’s market position

4) Improve the operating model through investment intro transformation projects.

5) Strengthening the balance sheet to support the growth in underlying sales.