Multistack International Limited (ASX: MSL) has released its preliminary final report for the year ended 31 December 2024, revealing a significant downturn in its financial performance. Revenue from ordinary activities plunged by 78.79% to just $374,032, primarily due to a sharp decline in the sale of goods. This contributed to an 88.24% increase in the net loss attributable to members, which stood at $1,679,290.
The trading entity, Multistack Australia Pty Ltd, also incurred substantial losses of $502,248 for the year. The company attributed this to reduced sales of chillers and flat overheads. Moreover, the ongoing economic uncertainties, including consumer prudence and cautiousness about capital spending, had a major impact on the air conditioning industry.
Despite the challenges, the company remains optimistic about the long-term prospects of its ORC technology and has continued to invest in its re-engineering. It also announced the resolution of its arbitration with Danfoss through a settlement agreement, paving the way for continued access to engineering and technical components.
However, the company acknowledges the risks associated with its business, including the inability to commercialize its ORC technology and potential downturns in customer demand. Additionally, the consolidated financial statements show a negative net asset position of $3,857,672 and net cash outflow from operating activities of $499,970, raising concerns about the company’s ability to continue as a going concern. The auditor’s report is also expected to emphasize this matter.
