Alexium International (ASX:AJX) significantly reduces its loss in 1H FY21

  • February 24, 2021 01:59 PM AEDT
  • Aayush
    Aayush
    Research Analyst Aayush
    41 Posts

    Aayush is a Research Analyst at Kalkine, with rich experience of over 3 years catering to capital markets. He has been a sell side equity advisor for two years and is currently dwelling deep into the equity research. He holds MBA in finance degree an...

Alexium International (ASX:AJX) significantly reduces its loss in 1H FY21

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Summary

  • Alexium International reported a net loss after tax of $1.79 million.
  • During the reported period, the group entered into a 6% coupon convertible note for A$5.15 million.
  • The company’s share price is trading 3.39 per cent down at A$0.057 (as at 1:36 PM AEDT).

On 24 February 2021, Alexium International Group Limited (ASX:AJX) released its earnings update for the half-year ended 31 December 2020. The revenue from ordinary activities has increased over the prior year by 13.7% from increased sales in the PCM product line. For the reported period, revenue stood at $3.6 million, compared to $3.1 million in 1H FY20.

The company experienced a seven-percentage point decline in margin due to the customer-product mix. The loss before finance costs of $1.6 million was up 8.2% versus the comparative period primarily due to increased cost of sales.

Operating expenses have remained within 1.0% of the prior period with continued monitoring of costs. Total loss for the period stood at $1.79 million, which was a 59.0% improvement over the comparative period as total finance costs were reduced by 92.8% with the extinguishment of the previous convertible note after a successful equity offering.

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Interest expense for the period was also down by 80.0%, or $1.3 million after the previous convertible note's maturity in December 2019. At maturity, the group realised a $1.5 million loss on the extinguishment of the debt facility along with a $0.2 million gain on the fair value of the embedded derivative, both of which were non-cash accounting items.

During the same period, the group entered into a 6% coupon convertible note for A$5.15 million with a four-year-term. The capital raised with funds was used to retire the higher interest debt facility. The balance of the funds was employed for working capital to support the growth of the group.

Read More: Alexium Receives EPA Approval for Alexiflam® NF

Stock Performance

Alexium International’s share price is trading 3.39 per cent down at A$0.057 (as at 1:36 PM AEDT). The stock has given a negative return of 9.5 per cent over the last three months. The one-year return stands at 14 per cent.

 

 


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