-- Second consecutive positive operating cash flow quarter ($240k)
-- Quarterly customer receipts of A$4.9m – equal to prior quarter, and up 39% from same period year ago. First half 2022 revenues for Carbonxt were at a record level.
-- Sales of AC Pellets and PAC both growing strongly driven by US business activity normalising and continued/increased focus on renewable technologies
-- New customer acquisitions in both AC Pellets and PAC segments. CG1 is well positioned for continued growth while increasing margins
-- Letter of intent signed with US water filtration company (Glanris) to develop and manufacture biocarbon pellet derived from rice husks
-- Strong trading to continue in Q3 and beyond
Carbonxt Group Ltd (ASX:CG1) (“Carbonxt” or “the Company”) has released its Appendix 4C Report for the December 2021 Quarter and provides the following update on the key areas of activity for the period. All numbers reported are in A$ unless stated otherwise.
Carbonxt is a cleantech company that develops and manufactures environmental technologies to maintain compliance with air and water emission requirements and to remove harmful pollutants. The Company’s primary operations are in the US and include a significant R&D focus as well as manufacturing plants for activated carbon pellets and powder activated carbon. Carbonxt continues to expand its pellet product portfolio to address numerous industrial applications.
-- Customer receipts were $4.9m (September 2021 quarter: $4.9m) and up ~39% on the prior corresponding quarterly receipts of $3.5m for December 2020.
-- Activated Carbon Pellet (ACP) revenue was up by 23% quarter-on-quarter and 171% compared to the prior half year, due to strong demand from our largest customer stemming from economic factors related to natural gas pricing. Carbonxt Group Limited. Level 12, 225 George Street, Sydney NSW 2000
-- Powdered Activated Carbon (PAC) revenue was down by 69% quarter-on-quarter due to a warmer start to winter, scheduled maintenance outages at customer plants, and primarily due to the Company concluding a marginally profitable customer contract. This has subsequently been replaced with a higher-priced contract with first sales anticipated in the third quarter of the 2022 financial year. Notwithstanding, PAC sales were up 6% compared with the prior half year.
-- Underlying Operating Cash Flow was an inflow of $240k, a continued trend upward compared to the prior quarter, as well as the second consecutive quarter of positive underlying operation cash flow.
-- Net cash outflows from investing activities were $371k reflecting continued investment in equipment and technology to increase manufacturing capacity primarily for the new PAC contracts starting in 3QFY22.
-- The Company ended the quarter with $1.2m of cash after the repayment of $0.4m in debt on the finance lease for Black Birch which continues to reduce materially quarter-on-quarter to less than $1m.
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