CleanSpace eyes sustained growth after delivering strong H1 FY25 performance
Premium respiratory protection solutions business CleanSpace Holdings (ASX: CSX) is confident it can maintain its current strong growth, forecasting an increase in sales in the 2025 financial year and beyond.
CleanSpace reported revenue of $9.2 million for H1 FY25, representing growth of 26% compared to the previous corresponding period (pcp).
The company’s gross margin increased 3% to 74% due to a positive mix and manufacturing efficiencies, with a 6% fall in expenses reflecting consistent cost control.
Broad-based growth
The company said it registered broad-based growth in all regions and focus countries.
Sales from Europe contributed 58% of total revenue, with growth of 11% on the pcp, while France remained CleanSpace’s largest-selling country despite recording slower growth of 2% due to the impact of the Olympics and Paralympics.
The UK recorded 44% growth, while the Nordics (+28%) also grew significantly.
Australia solid
Revenue in the Asia-Pacific and Rest of the World divisions was up 37% sequentially against the prior half.
Growth was driven by a solid result in Australia (+8% versus the pcp), while the company’s strategy to expand into Asia delivered a $0.4m sales increase.
North America contributed 13% of H1 FY25 revenue, with 31% growth on the pcp.
The company noted that its balance sheet remains strong, with $8.3m cash on hand as of 31 December 2024 and anticipates receipt of a research and development rebate in the vicinity of $1m sometime during the second half.
Continued growth outlook
CleanSpace remains confident that the current outlook for revenue growth and cost/cash initiatives will support profitable growth and positive cash flow in the medium term.
“CleanSpace is well positioned to continue sales growth of 25-30% in FY25 and beyond, focused on our priority markets, with strong revenue momentum expected in all three regions,” the company stated.
The company estimates its total addressable market currently sits at $3b, with an estimated annual growth rate of between 6% and 8%.