High energy costs have spared no one, neither customers nor companies. That’s why it has become integral to keep tabs on what’s emptying the corporate wallet and reign in the costs. To help with that, smart energy SaaS company Simble (ASX: SIS) is offering data analysis and carbon emission tracking platforms to help companies review its operations.
The Company has two primary products—CarbonView and Simble Energy. CarbonView is its carbon and sustainability reporting platform, helping measure carbon emissions and devise reduction strategies. Simble Energy, or SimbleSense, is a more comprehensive solution, helping with carbon data collection, ESG reporting, residential applications and energy optimisation for businesses.
Even though its solution is timely and relevant, Simble’s financials left much to be desired, compelling the Company to review its balance sheet.
Simble has undertaken a few board changes this quarter, with Dr Daniel Tillett and Darryl Flukes having resigned as Non-Executive Directors. Steve Thornhill has joined as Non-Executive Director. Each of these role changes will be effective starting July 3, 2023.
Thornhill is a recent Simble investor and shareholder based in the UK, and, over the past year, he has helped Simble gain referrals to customers and offered market penetration strategies in the UK and Europe. Thornhill is an investor in, and director of, numerous industrial companies in the UK and has a background in corporate finance.
Tillett joined the board in February 2022 and led a strategic review of the Company at that time with the executive directors. Tillett will continue being a shareholder in the Company. Flukes joined the board in December 2020 and contributed to the strategic redirection of the business over the past two and a half years. He provided insight into the energy market in which Simble operates. He also remains a shareholder while he pursues other business interests and board positions.
Moreover, part-time CFO Ronen Ghosh will step down on July 25, 2023, following his upcoming appointment as full-time CFO for a media & entertainment company. The CFO function has been outsourced on a part-time basis with ongoing requirements to be reviewed.
Chairman, Ben Loiterton, said, “These changes are a positive evolution for the Company’s board and team, following a long period of consolidation and internal restructuring, which is now yielding results. It has always been clear that the United Kingdom and Europe are important growth markets for the Company and therefore the appointment of a UK-based director is the right step, as demonstrated by the growing pipeline and revenue opportunities.”
Plus, the board changes also act as a cost-cutting measure. The Company has reduced the size of the board from four to three directors to save on governance costs. In the March 2023 quarter, the Company saw lower cash receipts and higher operating cash burn due to a range of factors, both seasonal and non-recurring. This is not atypical, as Simble reported that the March quarter characteristically witnesses lower revenues. However, it got worse due to slower corporate client decision making at that time, and additional costs and unexpected purchase order delays. It resulted in an “unacceptable March Quarter result”.
The June quarter provided some relief, as the Company’s cash receipts from customers was up 184% to $633.2k, compared to $223k in the prior quarter.
To bolster its financials, the Company has implemented cost efficiencies including a significant reduction in operational headcount as well as reducing other costs. The limited seats at the directorial table, money saved across operations and increasing demand for more cost-efficient products across industries might help Simble return to form before the end of CY23. From August, the Company anticipates that the monthly fixed overhead of the group will be approximately 30% lower than the recent average.
Alinda is a Business Reporter for The Sentiment
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