Progressive Planet Solutions Inc (TSX-V:PLAN) has reported a more than five-fold increase in revenue for its 2023 financial year in what it described as a foundational year in the cleantech solutions company’s growth strategy.
Revenue for the year to April 30, 2023, increased by 410% to $3.83 million and operating cash flow rose by $3.8 million to $1.61 million generated by operations from $2.19 million used the previous year. The company also highlighted an improvement in its gross margin to 26.2% from 12.6% in 2022.
"We delivered four major milestones in the past fiscal year: (i) successfully integrated a strong base business with 50 employees to accelerate commercialization of our innovations, (ii) increased gross margin of the base business by 13.6% while growing revenues, (iii) established $3.6 million in available debt facilities that can be strategically used to fund growth, and (iv) developed major partnerships for commercializing our technologies - including the biggest cement company in Canada and major agricultural players,” CEO Steve Harpur commented in a statement.
Other financial highlights were a net loss of $1.16 million including $0.87 million in research and development expenditures, the repayment in full of the line of credit balance of $1.48 million, and the repayment in full of two variable interest rate bank loans, related to the acquisition of its base business, of $0.97 million and $0.71 million, respectively.
It ended April with cash on hand of $0.7 million.
Following the end of its financial year, the company noted that in June it reduced fertilizer use by an estimated 50% on 617 acres with a new, proprietary natural fertilizer under the brand CARBON PK.
Also in June, the company finalized a PozGlass 100G sales and purchase agreement with Lafarge Canada for a pilot plant that is expected to begin operations in 2024.
In July, it received a reorder for its Wundercat cat litter which is expected to add $1.2 million in new annual revenues.
Contact the author at stephen.gunnion@proactiveinvestors.com