Victor Group Holdings Limited (ASX:VIG) Reports December Quarter Cash Flow
Victor Group Holdings Limited (ASX:VIG) has released its cash flow report for the quarter ending 31 December 2024. The company reported total cash inflows of approximately $5.46 million from its IaaS, SaaS, and PaaS services.
Financial Performance Highlights
For the December quarter, VIG reported net cash used in operating activities of $216,000, reflecting a negative operating cash flow primarily due to inventory purchases for both software and online course packages. The cash and cash equivalents at the end of this quarter amounted to $842,000, up $292,000 from the previous quarter.
Operational Developments
VIG’s subsidiary, Shenghan, contributed the majority of trade receivables during the quarter, indicating a strong performance in the cloud services domain. The management anticipates improved operating cash flows in the upcoming quarter due to strategic operational adjustments.
The report noted that while no payments were made to related parties during this period, there’s assurance from major shareholders regarding financial support, reinforcing the company’s financial position to mitigate any potential defaults.
Future Outlook
Management remains positive about the future as the e-learning segment continues to develop, with collaborations with various stable e-learning providers. They expect further growth in line with government initiatives aimed at reducing educational burdens and increasing vocational training opportunities.
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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