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11 November 2019 | Buy

Advanced Braking Technologies Update

Update - Advanced Braking Technologies

Under a new management team Advance Braking Technologies (ABV.ASX) has been executing a turnaround plan since late last year which is increasingly gaining traction. Driven predominantly through increased adoption of the businesses lead “Failsafe” brake ABV recently reported a 71% lift in sales in the latest quarter relative to the previous corresponding period (pcp) and 12% growth quarter on quarter (qoq). The increased sales have lifted gross margins in the business to 47% and the bottom line into profitability. The business is now cash-flow positive with a range of new opportunities ahead of it to drive further strong growth through 2020. Today ABV has announced that the majority of Convertible note holders who were being paid interest at a rate of 15% p.a. have elected to convert those notes into equity at $0.02 per security. The small balance of convertible notes remaining will be finalised next month leaving the business debt free.

With annualised sales revenue at $9m p.a., positive cash-flow, a debt free balance sheet and a range of new product’s being finalised for roll out the ABV business is now well placed to deliver substantial returns to investors in future years. (supplied by Mark Potter)