BPP’s Shares Uplifted On ASX After Releasing Additional Information Regarding $1.3M Asset Finance Facility

Specialist resources services provider, Babylon Pump & Power Limited’s (ASX: BPP) shares uplifted by 11.111 percent on 3 January 2019, after the company released some additional information regarding the asset finance facility in which  BPP has secured asset finance facility with National Australia Bank (NAB).

Earlier on 5 October 2018, the company had announced that it has been awarded the contract to supply power generation and dewatering pumping equipment for BHP Billiton.

To support this contract, the company has secured a stand-alone asset finance facility of circa $1.3 million. The company disclosed that NAB has financed $1,304,480 to BBN with a loan term of 12 months and Interest rate of 9.49% per annum.

In FY 2018, the company generated revenue of $1.628 million and incurred a loss of $1.12 million. The company finished it's FY 2018 with an underlying revenue run rate of over $4 million per annum.

As at 30 September 2018, BPP was having net debt of around $3.53 million which is inclusive of the convertible loans issue. In the first quarter of FY 2019, the company was having a cash receipt of $1.01 million and reported revenue of around $1.41 million.

In the September quarter, the company secured various purchase orders for new engines and component rebuilds and the company also expanded its asset base of specialized rental equipment to meet clients’ needs. In the first quarter of FY 2019, the Company has spent around $2.5 million in the acquisition of equipment which is related to current dewatering and power generation contracts.

As at 30 September 2018, the company was having net cash used in operating activities of $1.959 million, Net cash used in investing activities of $2.49 million and Net cash used in financing activities of $5.88 million. At the end of September quarter, the company was having Cash and cash equivalents $1.928 million.

The company has witnessed a strong start for FY 2019 due to which the operating revenue forecast for FY 2019 has been increased by 52 percent from the Prospectus indication to circa $7.0 million. The improved outlook of the Australian mining sector is one of the main reason behind the company’s Positive growth trajectory. Further, the company has also witnessed growth in its underlying business due to high levels of client satisfaction. During FY 2018, the company was able to establish new client relationships, and it also increased its level of client engagement and service inquiry.

Many clients are seeking Babylon’s services due to its technical expertise and ability to supply and support specialized equipment. The management of the company is actively pursuing further growth opportunities in new domestic and international markets.

Meanwhile, in the last six months, the share price of the company increased by 12.50 percent as on 2 January 2019. BPP’s shares traded at $0.020 with a market capitalization of circa $6.7 million as on 3 January 2019 (AEST 3:15 PM).


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