Specialist resources services provider Babylon Pump & Power Limited (ASX: BPP) has achieved a strong performance for the quarter ended 31st March 2023 based on strategic initiatives which continue to accelerate EBITDA growth.
The company is further expected to deliver record EBITDA for the full year.
Improved profitability has increased operational cash flow for the quarter by 238% to $2.4m and resulted in a year-to date net operational cash flow of $1.8m.
A reduction in cash on hand is a direct result of $2.3m cash used in investing activities during the quarter as the Company grew its rental fleet to accommodate growth. The Company continues to hold $3.7m of cash and undrawn debt facilities with an additional $4.3m of receivables from blue-chip client base at the end of March.
Earnings momentum is increasing as we execute our strategy focused on growing our rental fleet,” Managing Director, Michael Shelby, said.
“We have successfully integrated our latest acquisition and continue to see high levels of utilisation across the segment. We have settled into our new workshop with our maintenance segment reaping efficiencies of the purpose-built facility.
“It is an exciting time as our operational performance and financial results are significantly improving over our historical position.
“Operational cash flow has benefitted from record collections during the quarter and the timing of certain payments. We will continue to focus available cash toward investing in our specialist rental fleet.”