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LPE close out cash after transformative year

24 January 2023 10:28
ASX: LPE

After a turbulent year on the market, embedded energy provider Locality Planning Energy finished 2022 strong, bringing in $1.8m in positive cash flow and remaining on track to hit a $40 million revenue guidance in FY23.

LPE has been able to lower pressure on margins, which continue to reduce as operating costs fell 16 per cent this quarter while it continues to benefit from a major restructuring undertaken late last year, retiring all debt while moving up to $3 million in net cash.

Alongside the significant operating cost reduction, the company now has access to a $10 million credit facility for a three-year term, which will be used to grow its embedded network business through upgrades to strata communities’ capital work at no upfront cost to the community.

And due to the volatility of the cryptocurrency market, LPE has also opted to not exercise its option to acquire a 50 per cent stake in STAK mining, with the company now working with Bundaberg BioHub to secure early repayment of the $5 million capital works fund.

The company said it plans to provide full clarity and a clear path to create significant value for shareholders.

“LPE’s performance continued to excel in the second quarter, with positive operating cashflow reflective of ongoing improvements in the core embedded network business, moderating operating costs and securing new customers in 2HFY23 should enable LPE to transition to profitability in FY24,” chairman Justin Pettett said.

“While improvements in the operating performance are readily apparent, the Board is open to acquiring complementary, value-adding bolt-on businesses, to drive forward growth,”

LPE’s Australian Stock Exchange-listed share price has risen 5.66 per cent today, currently trading at 5.6c (10.02 am UTC+ 8 hours).

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