engage:BDR Ltd (ASX:EN1) has ended 2020 strongly, completing a heavily oversubscribed shareholder purchase plan (SPP) in conjunction with a placement, which raised $3,243,275, allowing the company to retire outstanding payments owed to service & inventory providers that accrued during the COVID-19 pandemic.
Cash balance improved by 29% year-on-year from $2.43 million to $3.14 million.
In 2020, the company also significantly reduced its staff costs and other recurring expenses without a significant impact on revenue.
2021 focus
The board focused on the booming connected TV (CTV) advertising industry in the second half of 2020.
CTV advertising is highly lucrative, adding incremental, recurring revenue for each new client the company signs on.
The company announced five new CTV programmatic customers in November 2020 and looks forward to updating the market on the impact revenue derived from programmatic sources has in due course.
CTV programmatic advertising revenue is rapidly scalable and therefore, will be the primary focus of the board in 2021.
Talks to retire Alto facility
Early in the COVID pandemic, the board chose to negotiate with outside service providers to defer payments where possible.
These outstanding payments have now been paid in full.
In addition, the Alto ZCS Facility has been further reduced to US$59,000 net during the quarter, and Alto has been advised that all future payments will be made using available cash reserves.
Negotiations are ongoing with Alto to retire this facility entirely over the coming weeks.
Liabilities reduced
As planned, liabilities have now been reduced on the company’s balance sheet for the calendar year 2020 period and revenue-generating publishers, who were paused due to deferrals, are now on and producing revenue.
These one-time payments irregularly and disproportionally increased overall cash outflow for the fourth quarter.