It’s been a mixed year for Respiri Ltd [ASX:RSH].
With markets gripped by the COVID-19 pandemic, shares in the company took a hit. But that didn’t stop the ongoing development of their respiratory monitoring device: wheezo.
As we reported last month, Respiri has actually been making significant headway.
Landing a major partner in the form of Cipla Ltd. You can read about that, here.
Since then they’ve had a few minor updates. Furthering the optimism and potential surrounding this stock.
Now though, with their full-year accounts published, investors got to see under the hood a little better. And the verdict is fairly positive if the market reaction is any indication…
Revenue up, expenditure down
The big news was the 113.98% increase in revenue for FY20.
Totalling $2.2 million, Respiri more than doubled its sales for the prior financial year. A decent result, but still not enough to offset the net $7.2 million loss.
However, the other silver lining is that costs were also down 26.88%. Clocking in at $4.6 million for the year.
Suffice to say, it at least paints a picture of a company that is heading in the right direction.
And, as Respiri made sure to mention, the launch of wheezo is still slated for the end of 2020. Meaning, they could see a far stronger second half of this financial year if all goes to plan.
Plus, with a $5.1 million raised from a placement and SPP earlier in the year, Respiri is fairly well capitalised. At the very least they have the cash to see through the launch of wheezo, and cover ongoing costs moving into next year.
For that reason, another top up may not be in the works anytime soon. Which should ensure shareholders don’t have their stake diluted any more than it already has been.
So, while the company still has a long road ahead, they are certainly in a decent spot.
This is definitely one stock to keep an eye on as the launch of their flagship product draws closer.
Now, whether Respiri will be buoyed by a post-lockdown boom is hard to say.
We don’t even know what the coming weeks or months will bring. Let alone how it will impact this individual small-cap.
However, there are certainly signs that some sectors will outpace others.
We’ve even flagged four ‘innovator stocks’ that we believe could play a crucial part in this potential post-lockdown bonanza. A look at some of the most exciting, but potentially valuable small-caps on the market right now.
For Money Morning