- 01Raised $8.15m; quarter-end cash was $3m.
- 02First US deliveries targeted next quarter.
- 03Secured $11m finance facilities post-quarter.
Janus Electric Holdings (ASX: JNS) strengthened its financial position and advanced its North American diesel-to-electric Class 8 heavy-duty truck delivery program in the three months to end September.
The company conducted a $7.68 million share placement in July and raised a further $470,000 from the exercise of options to leave it with $3m cash at hand for the quarter.
Net operating cash outflow of $5.9m included a $1.24m build of inventory and components ahead of US deliveries, $720,000 in payments to creditors and $230,000 in payment plan instalments to the Australian Taxation Office to cover historical liabilities.
Staff costs of $1.64m reflected the addition of dedicated North American resources and a strengthening of its Australian-based leadership, engineering and manufacturing teams with new executive appointments taking effect from July.
A total $380,000 was paid to US battery manufacturer and technology partner Electrovaya for the production of customised Janus battery packs in North America under a recent three-year commercial supply agreement.
First US Truck Deliveries
$136,000 in receipts from customers for the period were primarily related to Janus’ domestic customers, with North American receipts expected to begin in the next quarter as first US truck conversions are delivered.
Net cash used for operating activities totalled $5.89m, including a $1.24m build of inventory and components ahead of customer deliveries and $390,000 in accrued interest on refinanced borrowings.
The company outlayed $96,000 on research and development activities during the quarter, $2.01m on product manufacturing and operating expenses, $198,000 on advertising and marketing, and $1.48m on administration and corporate costs.
Payments to related parties and their associates totalled $133,000 comprising director salaries and superannuation, as well as director fees paid to a related entity on normal commercial terms.
Next Phase of Growth
Janus managing director Ben Hutt said the September quarter had laid the foundations for the company’s next phase of growth.
“Our focus is on turning the strong demand we are seeing in North America into trucks on the road,” he said.
“We have made good progress towards our first US deliveries targeted for the next quarter and are working closely with our supply chain partners to have the facilities in place to convert our current North American order book before the end of the financial year.”
“As deliveries ramp up, we expect customer receipts to increase and our net operating cash outflows to reduce.”
Subsequent to the quarter, Janus secured a $10m revolving trade finance facility and a $1m asset finance facility to support production and delivery of its North American order book.
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