ASX Earnings Wrap: Mosaic Brands triples earnings; Elsight and Zeotech forge ahead rapidly
It’s the half yearly season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
Highlights for the December quarter:
During the quarter, Elsight added 11 new ‘Design Win’ partners, bringing the total number to 78 partners including one of the largest worldwide defence contractors.
Nine of those partners have placed repeat orders during the period totalling ~US$196k.
Design Win is the company’s strategy to allow drone manufacturers to base their drone’s connectivity around Elsight’s Halo solution.
The company continues to see significant Q over Q growth in recurring revenues as more Halos are deployed with new and existing customers.
Unaudited recurring income totalled approximately ~US$52k during the quarter, up from ~US$13k at September 2022 quarter.
In the US, Elsight is working closely with DroneUp to continue the deployment of services required for Walmart’s staged rollout of drone delivery services in North America.
Elsewhere, the company was selected for a grant of US$450k by the Israel Innovation Authority.
The grant was approved for the second phase of NAAMA Initiative pilot project to examine use cases of large drones to carry passengers and heavy cargo in Israel’s National airspace.
The company says this grant will help finance the expansion of the Halo BVLOS connectivity system roadmap.
Turning to financials, Elsight received commitments to raise $8 million in November by selling secured convertible notes to Australian institutions and sophisticated investors.
Cash at bank at 31 December 2022 totalled US$5.195m.
The company says these funds will enable Elsight to continue to execute its growth strategy as the unmanned market continues to move into mainstream commercial adaptation.
Highlights for Quarter ended 31 December:
During the quarter, the mineral processing tech company executed a 12-month multi-stage targeted research program with Griffith Uni to develop and validate the application of Zeotech products for controlling landfill methane emissions.
The program is scheduled to commence from February 2023, and will be undertaken in collaboration with ASX-listed company, Cleanaway.
ZeoTech also concluded its pilot research program for its proprietary mineral processing technology with UQ School of Chemical Engineering and UniQuest, UQ’s commercialisation company.
The pilot has been in operation at UQ since February 2021, and has achieved its principal objectives by demonstrating a continuous closed-loop circuit from lithium by-product (leached spodumene) and kaolin feedstock options, providing process validation of the patent-pending technology.
The development of this mineral processing technology will be accelerated under parallel work streams, with the Trailblazer program being the primary one.
The objective of Trailblazer is to advance the technology from pilot through to factory acceptance of a large-scale commercial demonstration plant.
During the quarter, ZeoTech also executed land purchase agreements and completed settlement of the freehold land underlying the company’s approved Mining Lease (ML 80126) at the high-grade Toondoon kaolin project.
In December, samples of its manufactured zeolite product were dispatched to a North American company following ongoing correspondence with the counterparty over the last 12 months.
To oversee the next phase of the company’s growth, Alister Morrison was appointed as the new CEO.
Morrison is a senior executive with 25 years of strategic international experience across energy, natural resources and early-stage technology commercialisation.
ZeoTech is also well funded, with a cash position of $2.152m as 31 December.
Highlights for Q2 FY23:
BlueBet had a good quarter despite increased market competition, with continued market share gains in Australia driven by strong growth in its sportsbook.
The company says its Australian business is expected to return to generating positive operating cash flow as Bluebet continues to gain market share.
In the US, ClutchBet is now live in Iowa, having taken first bets in late August, and the early response from customers has been very positive.
“We are now focused on enhancing our product to fit the US market, as we progress towards an expected go-live in Colorado in mid-March,” said BlueBet CEO, Bill Richmond.
During the quarter, the company made significant investment in marketing and its Cost per FTD (CFTD) of $447 or 2.0x Annual Customer Value (ACV), continues to provide attractive returns on marketing investment to acquire quality customers.
Bluebet has also continued to invest in product enhancement, particularly the BlueBet Global Platform (BGP) which will enable the business to scale and provide its full Sportsbook-as-a-Solution B2B offer.
As of 31 December 2022, the company’s cash balance was $32.2 million, including customer deposits of $3.7 million.
Highlights for H1 FY23:
Mosaic’s trading rebound continues to gain momentum as customers increasingly return to in-store shopping, following three years heavily impacted by COVID.
This resulted in the company nearly tripling its first half EBITDA to $15.8 million, despite absorbing a $5.1 million foreign exchange impact from the lower Australian dollar.
“This result highlights how Mosaic has changed enormously to not only come out the other side of COVID, but to become a stronger and more sustainable business in what is a very different retail environment from just three years ago,” said CEO, Scott Evans.
The company says it intends to open up to 130 new stores in the next 12 months.
“We believe our group strategy positions Mosaic’s 900 plus stores and 14 online businesses, with over six million products, as a true omni-channel retailer,” said Evans.
At Stockhead we tell it like it is. While Elsight and ZeoTech are Stockhead advertisers, they did not sponsor this article.