Holista CollTech needs to sell more noodles to get back on track

Holista CollTech needs to start selling more of its low-GI noodles, after unveiling some paper-thin figures.

The health and nutraceuticals business (ASX:HCT) reported a cash balance of just $92,000 at the end of March.

It plans to spend $2.5 million in the next three months.

It’s also maxed out two credit lines worth $794,000. However, a “controlled placement” facility gives the company access to $2 million over the next two years.

The company has a tendency to run on very low cash balances, with the lowest amount of money available in the last six quarters coming in the June quarter last year, when it only had $34,000. They pared spending right back and came through in the black the following period.

This has been the worst quarterly result in six quarters.

Holista had positive operating cash flows from December 2016 until the start of this year, when the balance tipped over to a $378,000 dip into negative spending.

Holista CollTech shares (ASX:HCT) over the past year.

Receipts from customers have moved between $1.25 million and $2.9 million. This quarter was $1.5 million.

They didn’t make much less than in previous quarters, but costs have risen and the company received no tax refunds or other income that helped to bolster rough quarters in the last 18 months.