Rule 4.7B
For personal use only
OVATO LIMITED
ABN 39 050 148 644
Appendix 4C - 31 DECEMBER 2021
Company Update & Quarterly cash flow report
for entities
subject to Listing Rule 4.7B
27 January 2022: Ovato Limited ("Ovato") (ASX: OVT) lodges the attached Appendix 4C for the three-month period ended 31 December 2021.
About Ovato Limited
The principal activity of Ovato is commercial printing and associated services.
Activities update
Following extensive restructuring initiatives, which included the sale of the Marketing Services and Retail Distribution businesses and the closure of the Residential Distribution business last year, the primary focus of Ovato continues to be on driving further cost efficiencies in its core printing operations. This has resulted in a positive impact on cash flows from operating activities for the current quarter, with the net cash loss of $4.3M being significantly lower than the prior quarter of $23.2M.
Ovato continues to be adversely impacted financially and operationally by the ongoing COVID-19 restrictions in Australia and in New Zealand. This has had a significant effect on retail activity and supply chain management.
The impacts of COVID are also flowing through to our retail customers, where continuity of supply is likely to influence their future advertising decisions.
Delivery timelines for both paper and ink supplies for Ovato have also been disrupted as well, with significant price increases being incurred for these materials. These disruptions and price increases have had an adverse effect on operating cash flow.
During the last quarter, Ovato undertook the capital management initiatives of a minimum holding share buyback and a share consolidation.
ASX Listing Rules Appendix 4C (17/07/20) | Page 1 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
For personal use only
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Ovato continues to be grateful for the continued support of its customers and suppliers, and are pleased that major recurring contracts have been renewed.
Cashflow commentary
Cash from operations for the second quarter of FY22 was negative A$4.3M and net cashflow from investing activities was positive A$0.8M.
Cash and equivalents at December 31 2021 was $9.3M.
Name of entity
Ovato Limited
ABN | Quarter ended ("current quarter") |
39 050 148 644 | 31 December 2021 |
Consolidated statement of cash flows | Current quarter | Year to date (6 | ||
$A'000 | months) | |||
$A'000 | ||||
1. | Cash flows from operating activities | |||
1.1 | Receipts from customers | 91,775 | 215,931 | |
1.2 | Payments for | |||
(a) | research and development | - | - | |
(b) product manufacturing and operating | (60,101) | (160,217) | ||
costs | ||||
(c) | advertising and marketing | (36) | (72) | |
(d) | leased assets | (3,443) | (4,991) | |
(e) | staff costs | (27,325) | (63,392) | |
(f) administration and corporate costs | (2,844) | (5,551) | ||
1.3 | Dividends received (see note 3) | - | - | |
1.4 | Interest received | 215 | 323 | |
1.5 | Interest and other costs of finance paid | (1,049) | (2,047) | |
1.6 | Income taxes paid/received | (13) | (39) | |
1.7 | Government grants and tax incentives | - | - | |
1.8 | Other | - | - | |
(a) | AASB16 lease interest payments | (1,514) | (3,154) | |
1.9 | Net cash from / (used in) operating | (4,335) | (23,209) | |
activities |
ASX Listing Rules Appendix 4C (17/07/20) | Page 2 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
For personal use only
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Consolidated statement of cash flows | Current quarter | Year to date (6 | ||
$A'000 | months) | |||
$A'000 | ||||
2. | Cash flows from investing activities | |||
2.1 | Payments to acquire or for: | |||
(a) | entities | - | - | |
(b) | businesses (cash in liquidated entities) | - | - | |
(c) property, plant and equipment | (292) | (557) | ||
(d) | investments | - | - | |
(e) | intellectual property | - | (16) | |
(f) | other non-current assets | - | - | |
2.2 | Proceeds from disposal of: | |||
(a) | entities | - | - | |
(b) | businesses | - | - | |
(c) property, plant and equipment | 140 | 218 | ||
(d) | investments | - | - | |
(e) | intellectual property | - | - | |
(f) | other non-current assets | - | - | |
2.3 | Proceeds from Sales of Non-core | - | 27,515 | |
Business's | ||||
2.4 | Dividends received (see note 3) | - | - | |
2.5 | Other (Receipts from sub-leases excluding financing | 998 | 1,507 | |
component) | ||||
2.6 | Net cash from / (used in) investing | 847 | 28,668 | |
activities | ||||
3. | Cash flows from financing activities | |||
3.1 | Proceeds from issues of equity securities | - | - | |
(excluding convertible debt securities) | ||||
3.2 | Proceeds from issue of convertible debt | - | - | |
securities | ||||
3.3 | Proceeds from exercise of options | - | - | |
3.4 | Share Buy-back | (129) | (129) | |
3.5 | Proceeds from borrowings | 4,435 | 4,435 | |
3.6 | Repayment of borrowings | (1,253) | (9,847) | |
3.7 | Transaction costs related to loans and | - | - | |
borrowings | ||||
3.8 | Dividends paid | - | - |
ASX Listing Rules Appendix 4C (17/07/20) | Page 3 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B
For personal use only
Consolidated statement of cash flows | Current quarter | Year to date (6 |
$A'000 | months) | |
$A'000 |
3.9 Other
(a) | AASB 16 lease principal payments | (4508) | (9,236) |
(b) | Cash backing ANZ G'tee's and other | 1,431 | 1,676 |
facilities | |||
3.10 Net cash from / (used in) financing | (24) | (13,101) | |
activities |
- Proceeds & Repayments for the Receivables Facility are determined by the net movement in the quarter of the receivables funding.
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 | Cash and cash equivalents at beginning of | 12,836 | 16,852 |
period | |||
4.2 | Net cash from / (used in) operating | (4,335) | (23,209) |
activities (item 1.9 above) | |||
4.3 | Net cash from / (used in) investing activities | 847 | 28,668 |
(item 2.6 above) | |||
4.4 | Net cash from / (used in) financing activities | (24) | (13,101) |
(item 3.10 above) | |||
4.5 | Effect of movement in exchange rates on | (59) | 55 |
cash held | |||
4.6 | Cash and cash equivalents at end of | 9,264 | 9,264 |
period |
5. | Reconciliation of cash and cash | Current quarter | Previous quarter |
equivalents | $A'000 | $A'000 | |
at the end of the quarter (as shown in the | |||
consolidated statement of cash flows) to the | |||
related items in the accounts | |||
5.1 | Bank balances | 9,264 | 12,836 |
5.2 | Call deposits | - | - |
5.3 | Bank overdrafts | - | - |
5.4 | Other (provide details) | - | - |
5.5 | Cash and cash equivalents at end of | 9,264 | 12,836 |
quarter (should equal item 4.6 above) |
ASX Listing Rules Appendix 4C (17/07/20) | Page 4 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
For personal use only
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
6. | Payments to related parties of the entity and their | Current quarter |
associates | $A'000 | |
6.1 | Aggregate amount of payments to related parties and their | 976 |
associates included in item 1 | ||
6.2 | Aggregate amount of payments to related parties and their | - |
associates included in item 2 |
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.
Included in the cash flow report are payments made to Rathdrum Properties Pty Ltd (Rathdrum) and SBM Group of companies (SBM) of which a Non-Executive Director and Managing Director are related parties. The company leases properties from Rathdrum and obtain marketing services from SBM.
Payments for the quarter ended 31st December 2021 excluding GST;
- | Rathdrum | $0.75M |
- | SBM | $0.06M |
Salaries and superannuation paid to related parties and their associates $0.17M.
ASX Listing Rules Appendix 4C (17/07/20) | Page 5 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
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Ovato Limited published this content on 26 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 00:08:04 UTC.