Structural Monitoring Systems Plc (ASX:SMN) Secures $8.7M Capital Raise and Achieves $2M Sales Growth
Capital Raise
Structural Monitoring Systems Plc raised $8.7 million before issue costs during the quarter. The capital was sourced from a $5.0 million institutional share placement, a $2.2 million Security Purchase Plan, a $0.2 million director placement to Heinrich Loechteken, and a $1.3 million share placement to Drake Private Investments LLC. Eighty percent of these funds are now available for new investment purposes.
Cost Restructuring
The company has restructured its operations, achieving annualised savings of over $2.5 million, which are being realised in the current quarter.
Sales Growth
A successful year-end sales campaign generated over $2 million in incremental Forest Radio sales. Additionally, negotiations with CalFire for a significant order of 150 radios are well advanced, highlighting the importance of SMS’s products in essential services.
Future Outlook
SMS is potentially on track to meet its revenue forecast and expects a positive free cash flow of more than $2 million for the full year. Progress continues on major milestones, including FAA certification for CVM sensor technology and expanding the high-margin avionics segment.
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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