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Orcoda (ASX:ODA) celebrates positive cashflow and higher earnings

Industrial
ASX:ODA      MCAP $37.21M
26 October 2021 15:30 (AEST)

Source: Orcoda

Orcoda (ODA) has experienced its fifth consecutive cashflow positive quarter for the three months ending September 30 2021.

The resources, healthcare and transport logistics company generated $779,000 from operating activities on the back of customer receipts as well as research and development grants and tax incentives.

Customer receipts grew 37 per cent from $3.35 million in the June quarter to $4.58 million in the September quarter. Further, unaudited consolidated revenue increased 42 per cent quarter-on-quarter to $4.66 million.

Across its resource, transport and healthcare divisions, Orcoda’s unaudited earnings before interest, tax, depreciation and amortisation (EBITDA) came to $1.26 million, delivering a 27 per cent operating margin.

According to the company, its resource division is the current ‘standout’ as it generated strong revenue growth in the September quarter. The division has a strong pipeline of potential contracts and a current order book of more than $7 million.

Similarly, the healthcare division has continued to grow and entered into two small contracts that may grow into substantial sources of revenue for the division. Orcoda said there were some ‘exciting opportunities’ it’s currently working on which will be announced in due course.

Unfortunately, Orcoda’s transport division is still feeling the affects of COVID-19 but the company remains optimistic and said it was pleased to have the loyalty of existing customers.

Managing Director Geoff Jamieson commented on the quarterly performance.

“The first quarter of FY22 has yet further growth, with solid growth in all key metrics and business units. We are pleased to have a strong pipeline of projects for future revenue and an excellent current order book,” Mr Jamieson said.

Orcoda ended the quarter with about $2.8 million in cash which is a slight increase from the $2.47 million it started with.

Company shares were up 7.14 per cent to trade at 15 cents at 12:49 pm AEDT.

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