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Nutritional Growth Solutions Ltd (ASX:NGS)

ALERT: Price-sensitive ASX Announcement for NGS
Current share price for NGS : $0.019 -0.006 (-24%)+
Announcement
Release
31 Aug 2026 12:51PM
Price at Release
$0.025
Full Release
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Summary
Nutritional Growth Solutions Ltd’s Appendix 4D and half-year report for the six months ended 30 June 2026 show revenue of US$706,000, down 18.57% from US$867,000 in the prior corresponding period, but a marked improvement in profitability with net profit after tax of US$120,000 versus a US$1.178 million loss in 1H FY25 and operating profit of US$56,000 versus a US$909,000 operating loss, reflecting lower cost of revenue and tighter cost control; net tangible assets per security improved to 0.036 US cents from negative 0.016 cents, total equity rose to US$409,000 from US$289,000 at 31 December 2025, cash and cash equivalents were US$290,000, total current assets US$988,000, and total current liabilities US$579,000, with the company highlighting replenished inventory, a new digital platform, and a debt-free balance sheet after repaying all legacy financing facilities, while also disclosing a material uncertainty related to going concern due to an accumulated deficit of US$20.588 million and negative operating cash flow of US$100,000 for the half; the reviewed, not audited, IAS 34 financial statements received an unmodified review conclusion from BDO Ziv Haft, and subsequent events include the announced acquisition of Sprout Organic Pty Ltd for about A$8.0 million to be mainly satisfied in NGS shares, approved by shareholders on 10 August 2026, alongside a A$2.5 million placement at A$0.02 per share to support working capital, inventory, sales and marketing, and integration costs.
Key Points
  • Appendix 4D and half-year report cover the six months ended 30 June 2026 for Nutritional Growth Solutions Ltd.
  • Revenue from ordinary activities was US$706,000, down 18.57% from US$867,000 in the prior corresponding period.
  • Net profit after tax was US$120,000 compared with a US$1.178 million loss in 1H FY25.
  • Operating profit was US$56,000 versus an operating loss of US$909,000 in the prior period.
  • Net tangible assets per security improved to 0.036 US cents from negative 0.016 cents.
  • Cash and cash equivalents at 30 June 2026 were US$290,000.
  • Total current assets were US$988,000 and total current liabilities were US$579,000.
  • Total equity increased to US$409,000 from US$289,000 at 31 December 2025.
  • The company stated inventory was fully replenished and a new e-commerce platform had gone live.
  • NGS reported that all legacy financing facilities had been fully repaid and closed, leaving the balance sheet debt-free at 30 June 2026.
  • On 4 March 2026 the company incorporated Better Brands Global Pty Ltd as a wholly owned Australian subsidiary.
  • No dividend or distribution was proposed or declared for the reporting period.
  • The half-year financial statements were reviewed, not audited, and the auditor’s review conclusion was unmodified.
  • The auditor highlighted a material uncertainty related to going concern due to the accumulated deficit of US$20.588 million and negative operating cash flows of US$100,000 for the half year.
  • On 25 May 2026 NGS entered a binding agreement to acquire 100% of Sprout Organic Pty Ltd for about A$8.0 million, mainly through the issue of NGS shares.
  • Shareholders approved the Sprout Organic transaction at the Annual General Meeting on 10 August 2026, with completion expected on or about 1 September 2026 subject to remaining conditions.
  • The company also announced a A$2.5 million placement at A$0.02 per share, approved after period end, to fund working capital, inventory expansion, sales and marketing, and integration costs.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.