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(Sharecast News) - Seed Innovations said in an update on Friday that its portfolio company Little Green Pharma (LGP) reported a strong performance for the quarter ended 30 June, including record cash receipts and a return to positive operating cash flow.
LGP, which is listed on the ASX in Sydney, recorded unaudited quarterly revenue of AUD 9.1m (£4.42m), up more than 20% on the same period last year, and cash receipts of AUD 12m, marking a near 50% year-on-year increase.
Operating cash flow for the quarter was AUD 0.5m, and total cash on hand rose to AUD 2.5m, supported by more than AUD 5m in unused financing facilities.
"LGP has delivered another compelling quarter, achieving record cash receipts of AUD 12m and a turnaround to a positive net operating cash inflow of AUD 0.5m," said Alfredo Pascual, executive director at Seed Innovations.
"This positive cash flow trend, combined with cash in bank of AUD 2.5m and over AUD 5m in unused financing facilities, enhances LGP's financial flexibility."
He also highlighted the company's growing international presence.
"We are particularly encouraged by the over 70% increase in Danish facility sales into Germany and over AUD 2m in new UK purchase orders for the second and third quarters of 2026, which reinforce our confidence in LGP's strategic focus and growth trajectory in key international markets."
LGP's full-year audited financial statements for the year ended 31 March showed revenue of AUD 36.8m, adjusted EBITDA of AUD 2.9m, and net profit after tax of AUD 3.3m.
The company also launched its first branded products in Germany, and said it was expanding capacity at its Danish production site, which would soon total 10.9 tonnes per annum.
New laws coming into effect in 2026 would allow the Danish facility to serve as an import, packing, and distribution hub for cannabis products.
Seed said it holds 7,324,796 ordinary shares in LGP, representing 2.4% of its issued share capital.
At 1511 BST, shares in Seed Innovations were up 13.85% at 2.22p.
Reporting by Josh White for Sharecast.com.
