The firm's cash flow trajectory remains opaque and likely strained, as the 59.88% revenue expansion necessitates significant working capital that is not currently supported by internal cash generation.
| Metric | Jun'24 | Jun'23 | Jun'22 | Jun'21 |
|---|
| Cash from Operations | -1.43M | -629.59K | -682.83K | -542.96K |
| Operating CF Margin % | -14.93% | -10.48% | -13.77% | -5.28% |
| Operating CF Growth % | -127.66% | 7.8% | -25.76% | - |
| Net Income | -1.11M | -2.28M | -1.53M | 962.45K |
| Depreciation & Amortization | 136.03K | 310.38K | 258.86K | 48.12K |
| Stock-Based Compensation | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 176.92K | -88.94K | 116.73K |
| Other Non-Cash Items | 311.83K | 357.91K | 359.15K | 29.43K |
| Working Capital Changes | -772.18K | 809.66K | 315.14K | -1.7M |
| Change in Receivables | -1.25M | 389 | 2.31M | -708.88K |
| Change in Inventory | 734.35K | 824.94K | -749.75K | -706.81K |
| Change in Payables | 282.74K | -59.19K | 57.85K | 70.93K |
| Cash from Investing | 134.47K | -1.22K | -734.33K | -40.77K |
| Capital Expenditures | -31.89K | -1.22K | -590.29K | -40.77K |
| CapEx % of Revenue | 0.33% | 0.02% | 11.9% | 0.4% |
| Acquisitions | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.34M | 835.73K | 464.29K | 1.51M |
| Debt Issued (Net) | 698.95K | -281.01K | 684.46K | 1.31M |
| Equity Issued (Net) | 237.34K | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | 402.39K | 1.12M | -220.16K | 205K |
| Net Change in Cash | 39.83K | 204.92K | -952.87K | 927.09K |
| Free Cash Flow | -1.47M | -630.81K | -1.27M | -583.73K |
| FCF Margin % | -15.26% | -10.5% | -25.67% | -5.68% |
| FCF Growth % | -132.27% | 50.45% | -118.1% | - |
| FCF per Share | -0.10 | -0.04 | -0.09 | -0.04 |
| FCF Conversion (FCF/Net Income) | 1.29x | 0.28x | 0.45x | -0.56x |
| Interest Paid | 553.28K | 382.01K | 315.15K | 294.59K |
| Taxes Paid | 0 | 0 | 0 | 0 |
Liquidity and funding dependency
Given the absence of reported cash flow data, the relationship between net income and operating cash flow remains opaque, though the company's negative net margins suggest that any potential operating cash flow is likely insufficient to cover the capital requirements of its rapid 59.88% revenue expansion.
The lack of cash flow transparency prevents a definitive assessment of accrual quality, yet the company's negative net margin of -11.55% implies that accounting earnings are not currently supported by cash generation. Investors should monitor whether the firm's aggressive revenue recognition on long-term projects is creating a significant divergence between reported income and actual cash inflows.
As indicated by the company's financial profile, the free cash flow trajectory appears strained, with the firm's reliance on external capital to fund its operations suggesting that it has not yet achieved the self-sustaining cash generation necessary to support its current growth-at-all-costs strategic mandate.
The absence of positive operating cash flow, combined with the high capital intensity of its retrofit projects, suggests that free cash flow is likely deeply negative. This trajectory warrants caution, as the firm's ability to continue its expansion is contingent upon external financing rather than internal cash generation.
Based on the firm's project-based business model, working capital dynamics likely represent a significant drain on liquidity, as the long payment cycles inherent in UK public sector contracts appear to be outpacing the company's ability to manage its hardware procurement and labor-related cash outflows.
The company's reliance on public sector frameworks often necessitates extended accounts receivable cycles, which likely creates a persistent cash gap. This structural reality suggests that the firm's working capital management is a critical bottleneck that could impede its ability to scale further without additional liquidity injections.
With cash and equivalents representing only 2.7% of TTM revenue, the company's cash flow statement likely obscures a heavy reliance on parent company support or short-term financing to bridge the gap between project execution costs and the eventual receipt of government-funded contract payments.
The thin liquidity buffer suggests that the firm may be utilizing off-balance-sheet arrangements or intercompany loans to maintain operations, which masks the true cash-burn rate of the business. Investors should investigate the extent to which these financing mechanisms are required to sustain the current project pipeline.
Quick answers to the most common questions about buying ENGS stock.
Energys Group Limited Ordinary Shares (ENGS) generated $-1.4M in net cash from operating activities in 2023. This reflects the cash generated directly from core business operations.
Energys Group Limited Ordinary Shares (ENGS) reported negative free cash flow of $1.5M in 2023, indicating capital requirements exceeded cash from operations.
Energys Group Limited Ordinary Shares (ENGS) spent $0.0M on capital expenditures in 2023. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.