Dyesol finished the first quarter of the financial year with cash reserves of $10.54 million and controlled cash flow, as planned for the period.
The September 2008 quarter demonstrated that Dyesol has achieved its goals to stabilise operational spending while increasing revenue. In fact, revenue increased by 387% to $1.29M (including $359K in R&D tax rebate). Consequently nett operational spend was down 40% to $2.092 Million. Expenses for all operational activities are steady. It is noted that all Dyesol’s cash is held as current and short term deposits in top trading banks in Australia (CBA and St George), UK (HSBC), Switzerland (Raiffeisen), and Italy (BPM). Dyesol’s investment in our joint venture with Timo Technologies in Korea of US$490,000 was made at an exchange rate of 0.8986 ($US/$A).
During the quarter, Dyesol completed commitments for equipment for the new facilities in St Asaph, Shotton and Queanbeyan. Total investment was $2.165M with creditors outstanding of less than $400K. The Dyesol facility in St Asaph is the company’s demonstration laboratory facility and is used for R&D and materials approval and complements our joint prototyping facility at University of Rome Tor Vergata (formally opened this quarter). Since the cash report date, Dyesol has opened the new materials manufacturing and engineering facilities in Queanbeyan and received excellent acclaim for the quality and professionalism of this initiative. Dyesol’s commitments to facilities with Corus at Shotton have now been finalised with equipment produced in Queanbeyan currently being installed in Wales. Further expansion of facilities will depend on new business opportunities.
Since the cash report date, the company has received formal confirmation that cash payments due from the Welsh Government and from Tor Vergata University totalling over A$1.25M have been authorised. Existing contracts in Korea and Taiwan due for completion early in the new year will generate revenue exceeding $1.1 Million on completion of project milestones.
Expenditure in UK and Italy is backed by the company’s holdings in Sterling and Euros. Expenditure in Switzerland is subject to exchange rate fluctuations.
Dyesol has no debt and capital lease liabilities of only $29K. In Australia, the company has invested in long shelf life raw materials inventory for potential materials contracts – stock level is over $800K. The company has a robust balance sheet with over $23M nett assets.
Authorised by: Dr Gavin Tulloch (Managing Director Dyesol) +61 (0)2 6299 1592