Clock ticking for loss-making Aspermont
Loss-making resources B2B publisher Aspermont is burning cash at a steady rate, with its latest quarterly accounts showing just over a year of funding left unless it lifts revenue, reins in costs, or engineers some other intervention.
Aspermont is the publisher of Australia’s Mining Monthly and Miningnews.net, as well as the venerable Mining Journal and various other international resources titles.
The company, which is listed on the ASX and the Frankfurt Stock Exchange, has offices in Perth, Singapore and London and several other international cities. It describes itself as “the leading media services provider to the global resource industries”.
In its latest annual financial reporting (Aspermont’s FY runs October 1 – September 30), the company reported an EBITDA loss of just over $1m (see graph below and Unmade’s reporting). ASX reporting rules on businesses with ongoing negative cashflow required Aspermont to shift to quarterly reporting this year.
The accounts released on the ASX today are the first of this new regime. They paint a picture of a business that burned $100k of a cash reserve of $525k in the three months, giving it an operating runway of just over 5 quarters.
Aspermont’s revenue and EBITDA as tracked by Unmade
The statement of cash flows lists receipts from customers of $4.3 million and outflows of $3.6 million, the largest component being staff costs of $2.64 million, or over 60% of revenue.
In a separate trading update, Aspermont reported that subscriptions revenue was up 6% year-on-year and that it now comprised a greater proportion of total revenue (72%). EBITDA was still showing a loss of $600k, “reflecting strategic investment into high-growth areas”.
Managing director Alex Kent was quoted as saying: “Aspermont is proud to report its 36th consecutive quarter of subscription growth, with a 6% year-on-year increase— a testament to the strength of our recurring revenue model and of the sustained demand for our premium content. With over 70% of total revenue now derived from subscriptions, our business benefits from a more stable, resilient, and less volatile income stream.”
Kent said the business expected to meet its prior financial guidance for the fiscal year. Mumbrella has contacted Aspermont for direct comment.
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Australian Mining Monthly
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