Opyl Ltd (ASX:OPL) has reported a positive cash flow of $26,000 for the quarter ended December 31, 2020, along with an R&D refund of $249,000 thus increasing the overall net cash balance from $704,000 to $730,000.
During the quarter, receipts from customers were $117,000 with trade receivables increasing by $171,000 to around $297,000.
Sales have continued to accelerate reflective of a solid business development pipeline delivering social media management and deep listening and insights projects.
Sales in the quarter were $317,000 up by 82% or 140,000 as compared to the previous quarter.
All of the retainer clients initially lost in June/July 2020 due to COVID19 have re-signed with Opyl for 2021.
“Continues to realise growth”
Opyl CEO Michelle Gallaher said: “Opyl continues to realise growth in demand for deep social media listening and insights projects from local and international markets, higher profit margins, and projects with higher price points as noted in the September Quarter Activity Report.
“The scale alliance with huumun (UK-based collaborator) has been instrumental in driving revenue and market growth, helping Opyl to secure six new revenue projects in the past seven months with a global pharmaceutical client highlighting our ability to provide a unique value-adding extendable service.”
Interest in Opyl’s specialist clinical trial recruitment services using social media channels and insights data (consulting model) escalated in the past period as COVID-19 infections eased in Australia, particularly Victoria and clinical trial recruitment into hospital sites resumed.
This revenue stream will become a key focus for Opyl in the coming periods with the development and beta launch of the Opyl trial recruitment platform scheduled in Q4 FY2021.
During the period, Opyl recruited three strategic hires to help expand its deep social media listening and insights as well as clinical trial recruitment services.
The company recruited a general manager of sales and marketing, an analytics and insights manager and a social media technology specialist.
Each brings new capabilities and broadens Opyl’s ability to penetrate the market and support its client engagements.
In addition to the R&D tax rebate, Opyl also received various COVID-19 support incentives provided by both federal and state governments amounting to $38,000.
Research and Development
Opyl has continued to invest in its clinical trial prediction/protocol design platform and the clinical trial recruitment platform, which will complement the existing consulting service the company offers to the market.
Clinical trial recruitment will be a strategic focus for the company over the next six months moving the platform into a beta launch and focussing on securing strategic alliances, contracts, and revenue.
The prediction/ protocol design platform continued to pass through the development pathway, as expected, increasing the specificity and reliability of the tool.