- Eco-conscious materials stock SECOS (SES) has locked up its shares as it prepares to undertake a capital raise
- Shareholders won’t find out how much the sustainable packaging manufacturer wants to raise or what it’ll put the funding towards until Thursday, September 10
- Recently, SECOS has been focussed on marketing its MyEcoBag compostable bin liner range
- Back in July, the company announced 86 Woolworths stores had picked up two of SECOS’ eco-friendly products
- Over FY20, the materials stock reduced its loss margins by a significant 71.6 per cent
- And while the company still went cashflow negative by around $650,000 during the financial year, it’s a marked improvement on FY19’s $3.12 million net cash outflow
- SECOS shares last traded for 19.5 cents on Monday, September 7
Eco-conscious materials stock SECOS (SES) has locked up its shares as it prepares to undertake a capital raise.
Shareholders won’t find out how much the sustainable packaging manufacturer wants to raise or what it’ll put the funding towards until Thursday, September 10 — unless SECOS can make an announcement before that date.
Recently, SECOS has been focussed on marketing its MyEcoBag compostable bin liner range. Back in July, the company announced 86 Woolworths stores had picked up two of SECOS’ eco-friendly products.
Just last week, the materials stock announced its advertising campaign — leading with the slogan “Finally, the garbage bag that isn’t garbage” — had started to appear on social media and in select Woolworths stores.
The 13-week marketing operation has already begun bearing fruit: SECOS believes it’s reached over 300,000 potential consumers, with the posts netting a 13 per cent engagement rate on social media channels.
Less than a fortnight ago, SECOS also released its FY20 annual report. While the company’s revenue growth for the period totalled less than one per cent, SECOS reduced its loss margin by 71.6 per cent. It means the materials stock tabled a $1.19 million loss for FY20, compared to $4.17 million in FY19.
Despite the loss consolidation, SECOS’ operating cash outflow remained in the red over FY20. However, the company only went cashflow-negative by $650,380 during the period — a marked improvement on FY19’s $3.12 million net cash outflow.
By June 30, 2020, SECOS had $2.87 million in the bank — around the same amount it reported at the end of FY19.
SECOS shares last traded for 19.5 cents on Monday, September 7.