NGS Charts Leaner Path to Growth with $2m Capital Raise and New CEO

Quarterly Performance and Financial Health

Nutritional Growth Solutions (ASX, NGS), a US-based health and nutrition company, has released its Q4 FY25 results, revealing a modest revenue dip to US$362,000 (A$517,000). Despite this slight decline, the company achieved a significant 59% improvement in operating cash flow, reducing net cash used in operations to US$181,000 (A$258,000). This progress was largely driven by aggressive cost-cutting measures, including staff reductions and streamlined administration expenses.

Leadership Overhaul and Strategic Focus

The quarter saw a pivotal leadership reshuffle with the appointment of Andrew Grover as interim CEO and Chair, following the departure of Stephen Turner. Grover brings over 25 years of experience in scaling businesses and financial governance, signaling a renewed emphasis on operational efficiency and disciplined growth. Alongside this, the company appointed Manik Pujara as an Executive Director, reinforcing the management team’s financial oversight.

Capital Raising and Cash Position

NGS secured firm commitments for a A$2.0 million placement, subject to shareholder approval, aimed at bolstering working capital and supporting sales and marketing initiatives. Complementing this, an interim interest-free loan facility of up to A$250,000 was arranged to bridge short-term funding needs. As of 31 December 2025, the company held US$518,000 in cash and equivalents, with additional funds expected post-placement, positioning NGS with approximately 3.5 quarters of funding runway.

Operational Efficiencies and Growth Outlook

Following a comprehensive operational audit, NGS identified structural cost savings of around US$600,000 annually through workforce rationalisation, inventory optimisation, and a transition to a shared services model. These changes, effective from February FY26, are designed to underpin scalable growth without a proportional increase in fixed costs. Marketing activities, paused during the quarter due to low stock levels, are set to resume mid-February, expected to drive revenue growth by targeting existing customers with cost-effective campaigns.

Strategic Positioning and Future Prospects

NGS is positioning itself for near-term cash flow breakeven, leveraging improved capital discipline and operational efficiencies. The company also established a shared services platform to support disciplined evaluation and integration of selective, value-accretive mergers and acquisitions, aiming to expand its product portfolio and market footprint without inflating overheads. With a leaner cost base and strengthened leadership, NGS is focused on transitioning into a sustainable and scalable phase of growth.