Enviro-Hub (L23) H1 2024 earnings summary

Executive summary

• H1 revenue declined 29% YoY to $14.6m, while gross margin improved to 26% from 21%; the period loss narrowed to $64k from $74k.

• Continuing operations recorded a $33k loss before tax, compared with a $292k loss in 1H 2023; liquidity tightened to net current liabilities of $16.455m.

Financial highlights

• Revenue fell to $14.567m from $20.634m YoY; gross profit decreased 12% to $3.722m from $4.245m.

• Gross margin rose to 26% from 21%, mainly due to a $1.198m reversal of inventory write-downs following sales of aged healthcare inventories.

• Continuing operating results were $1.353m, up 3% YoY; net finance costs fell 18% to $1.017m, mainly following term-loan repayments.

• Loss for the period was $64k versus $74k; basic and diluted EPS from continuing operations was (0.01) cents versus (0.04) cents.

Outlook and guidance

• Plans include exploring business opportunities, managing liquidity, rationalizing expenses and streamlining core operations, including restructuring underperforming areas where needed.

• Refinancing discussions are underway for institutional loans; on 5 August 2024, the lender indicated a positive stance, subject to satisfactory repayment conduct and no covenant breaches.