Uniti Wireless says its has had a strong first quarter as a listed entity

Uniti Wireless says it is in a “strong cash position” with positive operating cash flow in its first quarter as a listed entity.

Uniti Wireless says it is in a “strong cash position” with positive operating cash flow in its first quarter as a listed entity.

The Adelaide-based internet service provider said it had generated positive net operating cash flow of $672,000 for the March quarter, once one-off items associated with grants and costs associated with restructuring were factored in.

The quarter did not included a full three months contribution from FuzeNet, which Uniti acquired as part of the listing process.

Separate to the $672,000 in net cash flow, the company received a $750,000 grant from the South Australian State Government.

Going forward, Uniti said “substantial cost reduction” would benefit future periods.

“Operating cash flow will benefit from a full quarter’s contribution from FuzeNet as well as expected reductions in operating cash costs providing an expectation of further improvement in net operating cash flow,’’ the company said in its quarterly report.

“The anticipated June 2019 quarter net operating cash flow is $830,000 assuming receipts from customers of $5.85 million and operating cash outflows of $5.02 million (excluding any one-off costs incurred in the June quarter).

“The forecast net operating cash flow for the June quarter represents an estimated quarter on quarter improvement of 23.5 per cent from normal operations of the business and excludes any contribution from the completion of recent and expected businesses acquisitions in the quarter.’’

Uniti said earlier this month would pay about $450,000 for Queensland company Pivit, which would deliver earnings per share accretion of greater than 20 per cent by next financial year.

Uniti’s report shows it had $5.89 million in cash at the end of March.

“Uniti’s cash position is strong and is in line with the expectations of management and the board,’’ the quarterly says.

“The strong cash position is expected to continue into the following quarters with expected top line growth, tight control of costs and capital expenditure and expected contribution from cash generative businesses acquired and expected to be acquired.’’

Uniti listed on the ASX in February and has reshaped its management team with a focus on growing through acquisitions.

The company’s shares were up 4 per cent to 52c in early trade.