Energy Action Reports $1.076M Net Operating Cash Inflow for December Quarter
Energy Action Limited reported a positive net cash inflow from operating activities of $1.076 million for the December quarter, maintaining a solid cash position amid ongoing financing arrangements.
- Net operating cash inflow of $1.076 million for Q4 2024
- Closing cash balance of $1.48 million
- Total financing facilities of $4.306 million, with $3.956 million drawn
- Repayment of $345,000 in financing activities during the quarter
- No dividends paid or equity raised in the period
Quarterly Cash Flow Highlights
Energy Action Limited (ASX: EAX) has released its Appendix 4C quarterly cash flow report for the period ending 31 December 2024, revealing a net positive cash flow from operating activities of $1.076 million. This marks a continuation of the company’s ability to generate cash from its core operations, a critical metric for investors assessing financial health and operational sustainability.
The company closed the quarter with $1.48 million in cash and cash equivalents, slightly up from the previous quarter’s $1.472 million. This stable cash position provides a buffer as Energy Action navigates its ongoing business activities and investment commitments.
Investing and Financing Activities
On the investing front, Energy Action reported cash outflows of $186,000, primarily related to product development capitalised as other non-current assets. This investment underscores the company’s commitment to innovation and product enhancement, which could drive future growth.
Financing activities saw a net cash outflow of $345,000, largely due to repayment of borrowings and lease liabilities. The company’s total financing facilities stand at $4.306 million, with $3.956 million currently drawn. These facilities include a secured $2.75 million loan from Commonwealth Bank at a variable rate plus 4.2%, and unsecured loans from directors totaling approximately $1.42 million at 12% interest, maturing in 2026.
Operational and Financial Outlook
Energy Action’s cash flow report indicates no equity raisings or dividends paid during the quarter, suggesting a focus on maintaining liquidity and funding operations internally. Payments to related parties amounted to $132,000, consistent with prior periods and disclosed transparently in the report.
The company’s management, authorised by the board, affirmed that the financial records are properly maintained and the report provides a true and fair view of cash flows. With positive operating cash flow and a solid cash runway, Energy Action appears positioned to continue its operational momentum into 2025.
However, the company’s reliance on drawn debt facilities and director loans highlights the importance of monitoring future financing needs and cash flow sustainability, especially as product development investments continue.
Bottom Line?
Energy Action’s positive operating cash flow and stable liquidity set the stage for cautious optimism, but upcoming quarters will be key to confirming sustainable growth.
Questions in the middle?
- Will Energy Action reduce reliance on director loans or seek new equity funding?
- How will ongoing product development investments impact future cash flows?
- What are the company’s plans to manage debt maturities and interest costs beyond 2026?
