As per an ASX announcement today, Alterra Limited (ASX: 1AG), previously Carbon Conscious Ltd, announced its annual financial results for the year ending September 2018. The company enjoyed a first-mover advantage in its business segments which include: Agri-Forestry and carbon market.
Carbon business segment
Alterra is engaged in managing agro-forestry projects in Western Australia to generate Australian Carbon Credit Units (ACCUs) and Voluntary Carbon Offset.
As stated in the company’s financial report, the company managed several carbon offsets generating projects registered under the Carbon Farming Initiative Act during 2018. The field work included tree measurements, plantation monitoring, and financial modelling. The contracts relating to the CFI Act and Voluntary Carbon Offset projects stayed strong.
The company conducted an annual science program across 30 properties which added further depth to the understanding of the performance of offset projects based on reforestation in the WA wheatbelt. Its reputation continued strong by maintaining its full compliance with the Clean Energy Regulator. It became a foundation party of the Carbon Farming Industry Code of Conduct, which is administered by the Carbon Market Institute.
Dairy business segment
Alterra current strategy in the dairy segment include conducting viability tests on several prospective sites for a huge dairy project in Western Australia. It is in discussion with several parties such as landlords, suppliers, government regulators, customers.
In March 2017, Alterra purchased a property “Dambadgee Springs” near Dandaragan as a potential dairy site. The feasibility trials for the site are under process, expecting positive cash flow from the site.
The Company has conducted water exploration drilling, environmental analysis, and crop productivity study on Dambadgee. It is currently targeting on obtaining water access and a milk off-take contract. It is currently studying dairy potential in Queensland and is anticipating establishing a significant dairy operation for milk supply to the area.
Alterra has two major long-term contracts with strong stakeholders for the continued provision of agro-forestry offerings that generate revenue out till September 2027 in Australia.
As per recent news on 20th December, Alterra announced securing shareholder support for demerging its carbon business.
The company posted an after-tax profit of $342,112 for the year ending September 2018 as compared to the previous year’s loss of $2,038,701. An increase in the company’s total net assets from $11,005,671 last year to $11,173,486 this year was reported. Operating cash inflow of $1.4 million, investing cash inflow of 0.24 million and financing cash outflow of $58,993 was reflected in the company’s income statement. Cash and cash equivalents stand at 2.4 million by the end of September 2018.
Post the annual financial update by Alterra; the shares are currently trading high at around AUD 0.46, up by 4.6% (as at 2:20 pm, 24th December 2018). The company’s stock has demonstrated impressive performance in the market, with YTD yield of 37.50%. The current price-earnings ratio for the company stands at 18.33 with earnings per share of AUD 0.002.