CAP-XX Reports Improved Half-Year Results with Revenue Growth and Reduced Losses
Why we think this is good
CAP-XX has demonstrated significant financial improvements in its half-year results. The company reported a 6.8% increase in revenue, a substantial reduction in losses, and an improved gross margin. The successful capital raise and strong cash position provide a solid foundation for future growth. New partnerships with SCHURTER and DigiKey are showing early positive results, with January 2025 billings up 62% year-on-year. However, the company is still operating at a loss, and the book to bill ratio below 1.0 suggests potential growth challenges ahead.
Key Points
- Revenue increased by 6.8% to A$2.4m in H1FY25
- Gross margin improved to 35.0% from 30.0% in FY24
- Loss after tax reduced from A$3.4m to A$1.7m
- Successful capital raise with net proceeds of A$5.7m
- Cash position improved to A$4.2m at 31 December 2024
- January 2025 billings increased by 62% year-on-year
- New partnerships with SCHURTER and DigiKey showing positive early impact
- Book to bill ratio of 0.88 as at 31 January 2025
- Operating costs reduced by 30% during the comparative period
Summary
CAP-XX Limited has released its half-year results for the period ended 31 December 2024, showing notable improvements in financial performance. Revenue increased by 6.8% to A$2.4m, while the gross margin improved to 35.0% from 30.0% in FY24. The company significantly reduced its loss after tax from A$3.4m to A$1.7m. A successful capital raise strengthened the cash position to A$4.2m. New partnerships with SCHURTER and DigiKey are yielding positive early results, with January 2025 billings up 62% year-on-year. However, the company continues to operate at a loss, and the book to bill ratio of 0.88 suggests potential growth challenges. The improved financial performance and strong cash position provide a solid foundation for future growth, but achieving sustained profitability remains a key objective.