Enviro-Hub (L23) H1 2023 earnings summary

Executive summary

• 1H 2023 revenue was $20.634m, up 1% YoY, while gross profit fell 31% to $4.245m; net loss attributable to owners was $416k versus profit of $739k.

• Adjusted for foreign exchange losses, attributable net profit was $0.3m; strategic focus is shifting toward Recycling and Healthcare as Construction and selected Property assets are divested.

Financial highlights

• Revenue was $20.634m versus $20.514m; gross profit was $4.245m versus $6.114m, and gross margin declined to 20.4% from 29.8%.

• Operating profit was $1.316m versus $3.186m; continuing-operations loss before tax was $292k versus profit of $2.327m.

• Net loss was $74k versus profit of $1.650m; continuing operations recorded a $305k loss, partly offset by $231k profit from discontinued operations.

• Net finance costs increased to $1.240m from $786k; finance costs rose to $1.475m from $795k, mainly due to higher rates and loans drawn in June 2022.

• Net cash from operating activities was $4.696m versus $1.850m cash used, mainly reflecting working-capital movements.

Outlook and guidance

• Recycling is expected to sustain strong performance; e-waste trading sales at HLS were positive, Cimelia restructuring was nearing completion, and semiconductor-related demand in Malaysia was expected to rise.

• Healthcare retail expansion is intended to broaden product offerings; the outlook also cites strategic healthcare collaborations and anticipated recovery in glove prices.

• Construction is being phased out, with its deconsolidation expected to improve results; property and equipment disposals are expected to support cash flow and reduce operating costs.

• Liquidity and expenses, including rising interest costs, will be managed through expense rationalisation and exploration of loan repricing and refinancing.