3D Metalforge reports a half-year of continued growth and development
The six months to 30 June (1H 2021) was a period of continued growth and development for additive manufacturing business 3D Metalforge (ASX: 3MF) which culminated in $645,000 in revenue and other income.
While revenue was $161,000 lower than the $806,000 recorded in the previous corresponding period, the company said it was buoyed by “strengthening fundamentals” underpinned by an order book of more than $1 million.
During 1H 2021, 3D Metalforge’s sales pipeline continued to expand, with a number of parts being subject to field tests (considered a “must do” step to achieving adoption) with existing and potential customers.
3D Metalforge incurred a net loss after tax of $2 million for the period and maintained a net current asset position of $3.6 million.
A cash balance of $6.1 million at the end of June has provided a solid foundation for the company to pursue commercialisation opportunities.
Establishment and evolution
Managing director Matthew Waterhouse said he was pleased with the company’s half-year performance.
“It has been a period of establishment and evolution,” he said.
“We have a unique business model, we understand the additive manufacturing market extremely well, and we have entered the second half of the year well positioned to add continued value to our clients.”
Growing the revenue base
Following its ASX debut in March, 3D Metalforge used the IPO funds on initiatives to further grow its revenue base including increased production capacity in Singapore and an expansion into the US.
“Overseas expansion is our big growth opportunity, and we decided to build a presence in Houston to be closer to key decision makers and to be at the centre of the oil and gas industry,” Mr Waterhouse said.
“We have received encouraging interest from our flagship centre [in Houston] with prospective clients particularly interested in the benefits of additive manufacturing which include considerably lower carbon dioxide emissions … we are confident it will be a differentiator towards clients transitioning to greener manufacturing.”
The 1,858 square metre Houston facility is designed to accelerate engagements in the largest global market for additive manufacturing within the oil and gas sector.
3D Metalforge has entered the second half of the financial year in a solid position, with commercialisation and business development activities underway and a number of parts involved in field testing.
Mr Waterhouse said the company would continue to expand its presence in Asia, the US and Australia to enable it to be “fully entrenched” in the main hubs for the industries it services and where the largest opportunities for additive manufacturing exist.
Plans are also in place to embed its solutions into client facilities, providing a ‘shop in a shop’ functionality and building on-demand and customised parts directly at the clients’ point of use.