Fastbrick’s ‘move fast and build things’ strategy seems to be working

Pic: Morsa Images / DigitalVision via Getty Images
Robot brick-layer Fastbrick (ASX:FBR) has rapidly cut its losses this year, after landing an $8 million capital raising in December.
Fastbrick, which listed via reverse takeover of ex-wine merchant DMY Capital in 2015, doesn’t yet have a commercial product.
It reduced its full year loss to $1.3 million, from $5.8 million.
Last year Fastbrick undertook an $8 million capital raising, at 8.1c a share, from Hunter Hall Investment Management as a cornerstone investor.
This left the company with $8.7 million in cash by June 30.
An equity placement in July from Caterpillar provided another $2 million, with an option to invest another $8 million if shareholders approve.
While research costs on the company’s flagship Hadrian X were no longer a longer factor this year, staff and supplier costs blew out by 172 per cent to just over $2 million.
It’s been a big year for Fastbrick. The deal with Caterpillar means the Hadrian X can capitalise on the international company’s brand, a factor in another deal signed this month to supply 55,000 houses in Saudi Arabia.
“Scaling up to a new facility, appointing a high calibre COO and the signing of two material MOUs, have given Fastbrick a solid foundation heading into FY18,” said Fastbrick Robotics CEO Mike Pivac in a statement.
“Fastbrick’s key FY18 objectives include completion and demonstration of the Hadrian X construction robot, advancing the Caterpillar commercial relationship and continuing our customer discovery process with a pre-launch order book.”
UNLOCK INSIGHTS
Discover the untold stories of emerging ASX stocks.
Daily news and expert analysis, it's free to subscribe.
By proceeding, you confirm you understand that we handle personal information in accordance with our Privacy Policy.