Hi all,
The early release of this half yearly was more impressive than I could have expected.
Let's not forget that this time last year, 3DP was looking very shaky and desperate. So what an amazing turn-around! Its one thing to get the business model and cash flow back on track...but there are other signs within this half yearly balance sheet that show some real corporate focus and strength.
-Trade receivables at only $77k. What! This incredibly, amazingly low figure says to me that their clients paid them whenever they asked this last qtr. This is a very strong sign of good (much, much improved) client relations and the strength/value of their service offerings. It also helps explain the jump in cash receipts (cleaning this closet added a net $1.75m and explains a bit more than 50% of the additional cash receipts in 2/2HC24 Vs 1/2HC24). (I am intrigued why they pulled receivables down so low...they absolutely drained it! They didn't have to as its 'normal' to have 4-6 weeks ($0.7-0.9m) worth left in. This also means that the next qtr receipts may be held back a bit as receivables naturally rebuild.
- Trade payables down $0.8m to $2.1m. They very prudently used about half of their receivables cash to pay down their trade liabilities...But they could have done more...if they wanted.
Contract Liabilities: (one of my favs for new/small coys). This actually came down $0.45m to $1.3m...suggesting they were able to
execute/complete on the additional work flow quickly...a good sign the coy has sufficient resources to complete contracts in a timely manner. This, to me, was a potential concern given they 'downsized' for survival reasons in the first half of 2024.
So this is all very good. Well done IO.
(BUT...I'm still wondering why Olsen raided the receivable jar to the degree that he did. I'm tempted to suggest a small acquisition but more likely to boost balance sheet credentials for larger contracts).
and who said half-yearly's were boring!!
Cheers.
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