EP&T Global Boosts Cash Flow, Raises $1M to Fuel Growth Ambitions

Strong Cash Flow Momentum

EP&T Global Limited (ASX: EPX), a leader in building efficiency technology, reported a solid financial performance for the December 2024 quarter, continuing its recent trend of positive operating cash flows. The company generated a net operating cash inflow of $0.4 million, a notable achievement given the traditionally challenging nature of the quarter as customers often delay payments until after year-end reporting.

Customer cash receipts for the quarter reached $4.5 million, marking an 11% increase compared to the same period in 2023 and a 68% jump from December 2022. This growth underscores the company’s improving market traction and operational execution.

Year-to-Date Growth and Operational Discipline

Over the first six months of the fiscal year, EP&T Global’s net operating cash inflow rose 37% year-on-year to $0.9 million, while cash receipts climbed 18% to $9.4 million. The company’s cash receipts to people cost multiple remained healthy at 1.53x, reflecting efficient cost management alongside revenue growth.

Patrick Harsas, CFO, highlighted the company’s enhanced operating model and disciplined cash management, noting that the December quarter included $0.2 million in costs related to the recent Coda acquisition and pre-revenue operating expenses. Despite these investments, the company maintained positive cash flow, signaling a balanced approach between growth and financial prudence.

Capital Raise to Support Expansion

To further fuel its growth trajectory, EP&T Global successfully raised $1 million through a private placement to institutional shareholders. This capital injection is intended to support ongoing expansion initiatives, including technology development and customer project rollouts.

The company ended the quarter with $2 million in cash on hand, providing a solid liquidity buffer as it invests in new hardware and installation projects. These investments, totaling $0.5 million in the quarter, are expected to convert into recurring revenue streams in subsequent periods.

Outlook and Strategic Positioning

EP&T Global’s proprietary EDGE Intelligent System, which leverages over 20 years of building energy efficiency data and advanced analytics, positions the company well to capitalize on growing demand for energy cost reduction solutions across global markets. With operations spanning five continents and servicing over 7 million square meters of floorspace, the company’s technology platform remains a key differentiator.

CEO John Balassis and CFO Patrick Harsas have emphasized the company’s commitment to maintaining operational discipline while investing strategically in growth. The recent financial results and capital raise suggest EP&T Global is on a steady path to scaling its business and enhancing shareholder value.