VIP Gloves Limited (ASX:VIP) Reports December 2024 Quarterly Update
Operations Overview
VIP Gloves Limited (‘VIP’) reported total receipts from customers of $0.214 million for the quarter ending December 31, 2024. This is a decrease compared to $0.993 million from the previous quarter, primarily attributed to reduced sales activities as the year concluded. Management’s focus during this period was on preparing for the re-commencement of glove manufacturing operations.
Manufacturing Preparations
Preparations for the glove manufacturing facility involved significant expenses of about $500,000, predominantly classified as capital expenditure. This covered the overhaul of machinery and replacement of essential consumable parts. The company aims to resume full production of nitrile gloves, with plans to operate one single-former line starting in late December 2024. The second line is expected to resume in early January 2025, with a total production capacity of up to 40 million gloves per month once fully operational.
Financial Activities
VIP’s financial strategy includes the redemption of a mortgage facility valued at $1.314 million for vacant land, facilitating an upcoming land disposal. The buyer is expected to complete ownership transfer in early February 2025. The company’s cash flow statement indicates a net cash decrease from operating activities of $354,000 and a net cash inflow from investing activities of $1.479 million due to the disposal of assets.
Legal Updates and Future Outlook
Ongoing legal action against the company remains a priority, with the trial postponed to March 2025. Despite this, the company is optimistic about its future, including expected proceeds from land sales, which will aid in addressing outstanding creditors and facilitating future operations.
The announcement was authorised for release by Mr Chin Kar (Jimmy) YANG, on behalf of the VIP Board.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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