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.