Simble Reports $463k Q4 Receipts and 67% Cut in Operating Cash Burn

Strong Financial Momentum in Q4

Simble Solutions Limited (ASX:SIS), a player in the energy and sustainability software sector, has delivered a marked improvement in its financial performance for the December quarter of FY24. Customer receipts surged to $463,000, a 117% increase compared to the previous quarter, signaling accelerating demand for its energy intelligence and carbon reporting solutions. Although this figure represents a slight 5% dip year-on-year, the quarter-on-quarter growth underscores a positive trajectory.

Operational cash flow management also improved significantly, with net cash used in operating activities dropping 67% to $174,000. This reduction reflects tighter cost controls and growing revenue streams, despite the absence of government grants and tax incentives that buoyed the prior corresponding period.

Capital Raising and Investor Confidence

Simble has bolstered its balance sheet by securing a binding commitment for a $280,000 placement at $0.007 per share. This price represents a substantial 75% premium to the closing price on 30 January 2025, indicating strong investor confidence in the company’s growth prospects. The placement is expected to provide essential liquidity, extending the company’s runway beyond the current estimated 1.86 quarters of funding.

Expanding Footprint in Australia and the UK

Operationally, Simble has expanded its meter management in Australia through Intellihub, adding nearly 1,900 meters and reaching over 5,800 meters under management. The company also launched a white-label ESG Scorecard solution targeting the Australian and Asia Pacific markets, complementing its CarbonView platform for carbon accounting and sustainability reporting.

In the UK, Simble’s partnership with Nisa Retail Group stands out as a significant growth driver. Nisa, a $2.8 billion turnover wholesaler with over 4,000 locations, has adopted SimbleSense as its energy intelligence solution. During Q4, Simble received orders for 21 Nisa customer sites, with expectations for further expansion as the platform rolls out across the network.

Strategic Move into Renewable Energy Development

Beyond software, Simble is strategically positioning itself as a renewable energy developer. The company signed a Memorandum of Understanding for a renewable energy project at Gladstone’s Green Industrial Park, engaging international engineering consultants to advance feasibility studies. While commercial terms remain under negotiation, this initiative aligns with Australia’s ambition to become a green energy superpower and taps into growing hydrogen export markets.

Outlook and Operational Efficiency

Simble’s headcount remains lean at 15 full-time equivalents, with a distributed team across Australia, the UK, and Vietnam. The company anticipates continued order growth, particularly from the UK market, and is actively pursuing additional capital and debt funding to support its expansion. Fixed operating costs have been reduced, and the company is optimistic about improved business performance in the coming quarters.