Key points
- Improved net operating cash flow of $0.3m vs $0.9m outflow in 1Q25
- Significant reduction in monthly and annual cost base
- Sales of core BLC Cosmetics business largely unaffected by restructuring
Full summary
Anagenics Limited (ASX:AN1) has provided an update on its activities for the quarter ended 31 December 2024 (2Q25). The key highlights include an improved net operating cash flow of $0.3 million, compared to an outflow of $0.9 million in the previous quarter (1Q25). This improvement was driven by a large reduction in cash payments to suppliers and employees as a result of the previously-disclosed business restructuring, which took effect from late October 2024. The company has achieved significant cost reductions, including a 45% decrease in advertising and marketing expenses, a 42% reduction in staff and director costs, and a 66% decrease in administrative and corporate costs. The full benefits of the restructure will be realized in 3Q25. Sales of the core BLC Cosmetics business have continued largely unaffected by the restructuring activities. The company also provided an update on payments to related parties, with an aggregate amount of $65,000 paid to related parties and their associates during 2Q25, which includes wages and fees inclusive of GST paid to former directors and their associates. Additionally, the company's efforts to enable the reinstatement of its securities to quotation continue, and this process is expected to be completed by the end of February 2025.