Shares in energy saving technology company Vivid Technology (ASX: VIV) have soared after the company announced much stronger cash flow and a positive market outlook.
Just moments after releasing quarterly cash receipts from customers had risen strongly to $4.8 million, Vivid shares rose more than 66 per cent or 3c a share to 7.5c and were maintaining that rise.
Vivid’s managing director, Mr Samuel Marks, said he was delighted that the company had generated positive operating cash flow for the first half and now had $3.9 million of cash on hand.
Technology driving sales growth
“This result is clear evidence that the work and foundations which Vivid Technology has been building around technology, capability, efficiency, product differentiation and commitment to deliver quantifiable and measurable energy savings, are proving providing results for both our domestic and international customers,’’ said Mr Marks.
“Our business is at an exciting stage with Q2 cash flow reflecting the execution of our planned strategy.’’
Mr Marks said Vivid had finally reached a growth stage and would continue updating shareholders during the year as it continued to expand its innovative technology and business models locally and overseas.
Mr Marks said order book momentum which was building at the start of the financial year had continued into the December quarter.
Energy savings driving repeat business
Vivid’s advanced energy saving lighting solutions were working so well that many customers were lodging repeat orders with some prepaying part of their orders value.
Cumulative customer orders for financial year 2018 continued to grow and were above $6 million by the end of December.
Area using Vivid’s lighting continues to grow
More than 732,000 square metres of client area was now operating using Vivid’s energy efficient lighting technology and key customer sites had successfully transitioned to multi-year service agreements.
Mr Marks said the company was well placed to continue evolving its technology using advanced systems design encompassing data, communications, analytics, algorithms and the internet of things to continually improve operational performance and efficiencies across customer’s businesses.
International sales were also improving with another successful smart lighting system contract win in Hong Kong for Kerry Logistics.
Vivid’s passive technology investment in NewCO2 fuels, which is based in Israel, continues to develop well with a potential commercialisation agreement for the Chinese market and other opportunities being looked at in the related hydrogen conversion market.