Genetic Signatures

9 Genetic Signatures has reported its first full year Net Profit of $1.8m compared to a Net Loss of $2.1m in FY2020. Cost of materials increased in line with increased sales volumes though the gross profit on materials improved to 70% up from 67% in FY2020. Freight and warehousing are significant costs now from increased inventory levels and the higher proportion of shipments going overseas. Expenses grew by $5.2m (43%) overall, driven primarily by growth in employee benefits expense, scientific consumables and depreciation & amortisation expense. Employee benefits reflects the appointment of additional people across the organisation but particularly in sales and production, but also includes share-based payments expense of $1.5m that is a non cash item. Scientific consumables comprises R&D expenditure and costs associated with clinical trials. 31.2 30.1 30.0 (28.7) (4.7) (0.3) (0.3) 2.6 0.3 0.2 Op. bal Customer receipts Supplier payments Other R&D tax refund Purchase of P&E Purchase of Intangibles Option exercise Lease principal CI. bal FY21 financial highlights ($m) Cash movements ($m) Sales revenue Cost of materials & freight Other income Other expenses (incl overhead) Net profit 1.8 28.3 (9.8) 0.4 (17.2) Cash balance at 30 June 2021 was $30.1m. Net operating cash inflows for the year were $4.2m. Gross outflows included investments in inventory which increased to $12.1m from $7.3m at 30 June 2020 to ensure that demand from customers could be met, and purchases of capital equipment for placement at customer sites or to expand the Group’s production capacity. The R&D tax refund will not be available as a cash item in future years due to sales exceeding the $20m threshold.