Highlights

•  Another strong sales result of $7.5 million in the March 2021 quarter up 33% YoY with Biopolymer sales up 75% in the same period. Sales were 5.5% lower than December quarter reflecting the annual Lunar New Year plant shut down in China, a 13% decline in traditional film sales due to equipment repairs and global shipping delays
•  Cash receipts for the quarter were $7.1 million, up 8.5% from previous quarter and 12.2% from the corresponding prior year period
•  Net operating cash outflow of $1.6 million for the quarter reflecting a $2.0 million investment in working capital to support increasing sales volumes
•  Capex investment continues with additional extrusion and bagging capacity established during the quarter in China and commencement of significant expansion in Malaysia to support increased demand
•  The Balance Sheet remains strong with $12.5 million in cash and no debt

Disc: I hold

Financial Highlights

•  Positive EBITDA $576K and NPAT $66K
•  Revenue up 30.5% vs PCP
•  Biopolymer sales up 129% vs PCP
•  Gross profit margin 18.2% vs 14.2% PCP
•  Strong balance sheet: $14.3m cash with no debt

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02344062-3A561828?access_token=83ff96335c2d45a094df02a206a39ff4

DISC: I hold

Financial Highlights

• December quarterly sales of $7.9m were up by 50.1% vs the corresponding December 2019 quarter, and increased 34.2% vs the preceding September 2020 quarter,

• Biopolymer sales were up 71.1% from the September 2020 quarter and now represent over 73.3% of total sales,

• Driven by record biopolymer sales, SECOS expects to report a maiden profit for the first half for FY21,

• SECOS reported a net operating cash outflow of $1.4 million in December 2020 quarter after investing over $2.6 million in new working capital to support increasing sales volumes,

• The Balance Sheet remains strong with $14.3 million in cash and no debt,

• Capex investment continues with additional extrusion and bagging lines in China and Malaysia to support increased demand.

Disc : I hold on Strawman and TRW