Join our daily newsletter At The Bell to receive exclusive market insights
- Smart tech company Buddy Technologies (BUD) has announced it’s on track to record its best quarter in history, on an earnings before interest, taxes, depreciation and amortisation (EBITDA) basis
- Buddy has recorded an 88 per cent reduction in its losses in the last year, from $1.5 million in May, 2019, to $176,000 in May, 2020
- The company has achieved the record despite the closure of brick and motor stores, who’re impacted by COVID-19
- However, Buddy also announced it has seen an 18 per cent reduction in consolidated revenue over the month of May
- The company said it was committed to keeping costs low throughout the pandemic, primarily by reducing staff wages
- Buddy shares are trading grey, at 1.3 cents per share
Smart tech company Buddy Technologies (BUD) has announced it’s well on track to record its best quarter in history, on an earnings before interest, taxes, depreciation and amortisation (EBITDA) basis.
May was also the company’s second-best month in its history, as losses of only $176,000 were recorded, down from $1.5 million in losses the same time last year.
That equates to an 88 per cent reduction in losses, which has been labelled “remarkable” by the CEO David P. McLauchlan.
“For these ‘middle of the year’ months, these are remarkable figures to be reporting, and demonstrate that our efforts to overhaul the business and reach the efficiencies needed to be profitable at scale, are working,” he wrote in today’s letter to shareholders.
COVID-19 closures
The Buddy CEO also said it was an amazing achievement to make amid the coronavirus pandemic, which has seen many brick and mortar stores shut up shop.
But COVID-19 continues to wreak havoc on the company’s revenue, with consolidated revenue down 18 per cent from April, at $1.8 million.
Amongst that number, $300,000 comes from Government subsidies related to the coronavirus pandemic.
In particular, Buddy today signalled supply chains have begun to be affected by the virus.
To offset the effects of COVID-19, the company has committed to an expense reduction program, which has been in effect since April 2020.
Amongst the measures are a reduction in staff wages and research and development costs.
More cash on hand
Today’s update also revealed the amount of cash on hand Buddy has is also on the rise, up 17 per cent from April, at $2.6 million.
Meanwhile, accounts receivable for the company totalled $3.2 million and inventories were at $9.5 million because of growth in work-in-process and vendor payables.
Buddy has been trading grey, after a slight rise in the morning, before the share price dipped in the afternoon.
Stocks are being traded at 1.3 cents each.
