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engage:BDR has robust cash balance following strong quarter and record first half

Proactive measures implemented in early March reduced operating expenses in preparation for potential COVID-19 revenue impact.

engage:BDR Ltd - Engage:BDR reports robust cash balance following record first half revenue
The advertising industry traditionally expects 65-70% of its revenues from July to December

engage:BDR Ltd (ASX:EN1) is in a strong financial position with a cash balance of $1.7 million at the end of the June quarter, around $320,000 or a 23% improvement over the ending cash balance of the first quarter of 2020 of $1.38 million.

This was also 21% greater than the average cash balance of 2019 of $1.4 million.

These positive results come after the company recently reported its best first-half revenue on record with $9.04 million, representing a 44% growth rate year-on-year.

After the strong start to 2020, the company is expecting an even better second half as the advertising industry traditionally expects 65-70% of its revenues from July to December.

Operating net cash

Net operating cash in the quarter grew to positive $4,000, which the company puts down to proactive measures implemented in early March.

These considerably reduced all operating expense categories in preparation for potential COVID-19 revenue impact.

Expense categories include:

  • Staff costs were reduced by $310,000 or 30%;
  • Administrative and corporate costs were reduced by $573,000 or 51%;
  • Prepaid ad inventory payments were reduced by $554,000 or 69%;  
  • Legal and publisher settlements were reduced by $599,000 or 94%; and
  • Directors (related parties) payments were reduced by $46,000 or 19%.

During the quarter, there were payments of $204,244 associated with executive and non-executive fees paid to directors for the June 2020 quarter.

Quick facts: engage:BDR Ltd

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Price: 0.005 AUD

Market Cap: $12.76 m

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