• Q2 FY25 sales of $3.6M
• Q2 FY25 net operating cash flow of $0.2M
• $1.1M cash on hand and $5.9M undrawn on financing facility
• $3.6M of inventory on hand (including $2.8M purchased in Q2 FY25)

Harris Technology Group Limited (ASX: HT8) has presented its activity report for the December 2024 quarter (Q2 FY25). The company generated sales revenue of $3.6M and delivered a net positive operating cash flow of $183K, capitalising on the retail holiday season with high-margin seasonal products. Sales of refurbished tech products have continued to perform well, with the division reaching 12 months of operation during the quarter and consistently delivering better margins. The household category has performed well over the past two years, but due to the cyclical nature of its seasonal products, Harris Technology will be downscaling its inventory of household products to pivot resources towards the better-performing refurbished tech category. The company has also undertaken reviews of its M2C (Manufacturer to Consumer) business to further improve sales of some strong niche product lines. As of 31 December 2024, inventory on hand was $3.6M, slightly up from the $3.4M reported at the end of September, including $2.8M of purchased inventory during the December quarter. Harris Technology maintained $1.1M of cash on hand with $5.9M undrawn on its finance facility.

Despite the difficult retail trading conditions persisting through 2024, the year was a transformational one for Harris Technology. The company has seen sustained growth in its refurbished tech business, which it looks forward to scaling up further in 2025.