Titomic Limited (ASX: TTT) is an additive manufacturing specialist. The company is focussed on the usage of advanced materials in the various product applications. These include sports parts, aeroplane components, surgical implants, medical equipment and naval vessels. It serves in the aerospace, automotive, construction, marine, and military industries across Australia, Europe and the United States of America and is headquartered in Melbourne, Australia.
On 6th May 2019, TTT announced that Titomic Limited and The Boeing Company have signed an agreement to deliver add-on manufacturing test parts required for the planes. Boeing is the world leader in the aerospace business and the initial agreement signed is for AUD$170,000.
Titomic Kinetic Fusion (TKF) industrial-scale AM systems are capable of manufacturing parts of up to 9m X 3m. Traditional forms of manufacturing processes consist of material waste of about 80% and lead time of up to six months. It is anticipated that Titomic Kinetic Fusion (TKF) would allow Boeing a notable reduction in lead-times and yield better performance for composite part production and cycle times.
Earlier this year in March, the company executed a Memorandum of Understanding with two Japanese companies, Osaka Titanium Technologies Co. Ltd. and Marubeni Corporation for the distribution of TKF systems in Japan and South Korea. The company stated that it would also supply aerospace-grade gas-atomised titanium metal powders globally.
For the quarter ended 31st March 2019, TTT released its quarterly cash flow report in April 2019. According to the report, net cash used in the operating activities was A$1,675k. The net cash used in investing activities was recorded at A$689k. Net cash used in financing activities for the quarter was A$1k. The cash and cash equivalents for the quarter amounted to A$4,364k. The estimated cash outflows for the next quarter stood at A$2,916k. With the estimate of R&D tax refund cash inflow FY2018 at A$2000k, the net cash movement is estimated at a worth of A$916k.
In March 2019, the company received ISO9001:2015, making it an internationally recognised ‘Quality Management System’. This ensures that the company is working towards process repeatability, quality control and continuous improvement within the organisation, delivering a consistent performance of products and services for its customers.
For its half-yearly report published in February 2019 for the year ending Ended 31 December 2018, the highlights consist of:
- The revenue for ordinary activities soared up 1,083.04% to $171,967 from pcp, where it was $14,536.
- Net loss from ordinary activities after tax attributable to members was up 130.35% to $3,581,142 from pcp, where it was $1,554,638.
- The net assets held had a drop from $15,222,899 (in June 2018) to $11,762,579 (In December 2018).
- The total liabilities were $1,282,860, more than the last half-yearly record ($807,254 in June 2018).
- Net cash outflow from operating activities amounted to $2,373,375. This amount was $1,726,123 in pcp (2017).
- Net cash outflow from investing activities was $1,244,433 (pcp- $1,888,851).
- Net decrease in cash and cash equivalents amounted to $3,617,808, though there was an increase $2,817,020 in pcp.
- Cash and cash equivalents at end of period increased to $6,729,360 from pcp $3,174,164.
Share Price Information:
As on 6th May 2019, the stock closed at A$2.500, up 2.459% compared to its last traded price, which was clocked at A$2.440. TTT has provided a YTD return of 4.31%.
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