Energy Action Posts $1.08M Operating Cash Flow, Eyes Growth via AI Platform
Energy Action Limited reports a strong positive operating cash flow of $1.08 million in Q2 FY25, boosted by customer receipts and an R&D tax rebate, while advancing its AI-driven energy platform Utilibox to fuel future growth.
- Net operating cash inflow of $1.08 million for Q2 FY25
- Cash balance increased 58% to $1.48 million quarter-on-quarter
- Received $0.616 million R&D tax incentive rebate for FY24 innovation
- Early $0.3 million loan repayment to Commonwealth Bank due to bank error
- Continued investment in Utilibox AI energy and emissions management platform
Robust Cash Flow Signals Business Strength
Energy Action Limited (ASX:EAX) has delivered a positive operating cash flow of $1.08 million for the quarter ended 31 December 2024, marking a solid financial footing for the energy services provider. This inflow was driven by strong customer receipts totaling $3.24 million, offset by supplier payments of $2.72 million, alongside the receipt of a $0.616 million R&D tax incentive rebate linked to the company’s FY24 innovation efforts.
The company’s cash position improved markedly, closing the quarter with $1.48 million on hand, a 58% increase from the previous quarter’s $0.935 million. Excluding an early $0.3 million loan repayment to Commonwealth Bank of Australia (CBA) caused by a banking system error, the adjusted cash balance would have been even higher at $1.78 million.
Strategic Investments in Technology and Growth
Energy Action continues to invest in its AI-driven energy and emissions management platform, Utilibox, reflecting a strategic focus on leveraging technology to expand its service offerings. The quarter saw $0.186 million spent on property, plant, equipment, and further development of Utilibox, underscoring the company’s commitment to innovation in energy procurement, carbon reporting, and solar PV procurement services.
CEO Derek Myers highlighted the quarter’s results as evidence of the company’s resilient business model and growth potential. "This quarter's operating cash flow demonstrates the strength of Energy Action's business model. We remain focused on efficient growth investments, leveraging technology and energy expertise to increase revenue," Myers said.
Financial Discipline Amid Operational Expansion
Despite the early loan repayment to CBA, which was an unintended deduction due to a direct debit setup error, Energy Action maintains a disciplined approach to financing. The loan balance reduced by $0.3 million to $2.45 million, with the facility still available to redraw up to $2.75 million. Lease liabilities related to the Parramatta head office were also serviced with a $0.045 million payment during the quarter.
Payments to related parties, including directors’ remuneration and consulting fees, amounted to $0.132 million, reflecting ongoing governance transparency as per ASX Listing Rule 4.7C.
Outlook: Capitalising on Market Opportunities
Energy Action’s core revenue streams remain steady, focusing on energy procurement, carbon emissions reporting and trading, and solar PV procurement for Australian businesses. The company’s competitive positioning and continued investment in AI technology position it well to capture near-term growth opportunities in the evolving energy services market.
As the energy sector increasingly embraces digital solutions and sustainability mandates, Energy Action’s Utilibox platform could become a key differentiator, enabling clients to better manage energy consumption and emissions.
Bottom Line?
Energy Action’s strong cash flow and tech investments set the stage for accelerated growth, but watch for how effectively it converts innovation into revenue.
Questions in the middle?
- How will the Utilibox platform impact revenue growth in the coming quarters?
- What are the implications of the early loan repayment error on cash management practices?
- Can Energy Action sustain positive operating cash flow amid increased investment spending?
