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Papyrus Australia Limited (ASX:PPY)

ALERT: Price-sensitive ASX Announcement for PPY
Current share price for PPY : $0.008 -0.002 (-20%)+
Announcement
Release
31 Aug 2026 10:13AM
Price at Release
$0.010
Full Release
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Summary
Papyrus Australia Limited’s unaudited Appendix 4E Preliminary Final Report for the financial year ended 30 June 2026 reports a reduced full-year loss after tax attributable to shareholders of $1,476,778, down 47.8% from FY2025, with no revenue from ordinary activities, no dividend declared, and net tangible assets per share falling to negative 0.05 cents; the report outlines Papyrus’s transition from technology development to early-stage commercialisation, highlighting commissioning and operation of its Adelaide Rapid Prototyping & R&D Facility, progress toward an Adelaide commercial production facility, a Vietnam board production contract supporting its supply chain, and advancement of the TBS Mining Solutions Collar Keeper® contract with estimated revenue of $4.2 million over 3.5 years subject to final product acceptance, while also noting support from government programs including the R&D Tax Incentive and Industry Growth Program grant, continued capital raising, a going concern material uncertainty despite director support and expected funding pathways, and ongoing interests in Egypt through Papyrus Egypt LLC and Egyptian Banana Fiber Company, whose carrying values remain nil after prior impairment.
Key Points
  • Appendix 4E preliminary final report for the year ended 30 June 2026 was signed on 31 August 2026 and is unaudited.
  • Papyrus Australia Limited reported a loss after tax of $1,476,778 for FY2026, improved from $2,830,599 in FY2025.
  • There was no revenue from ordinary activities and no dividends were paid, recommended or declared.
  • Net tangible assets per ordinary security declined to negative 0.05 cents from positive 0.05 cents in the prior year.
  • Other income of $636,810 was mainly from the R&D Tax Incentive and an Industry Growth Program grant.
  • Papyrus described FY2026 as a transition year from technology development and validation into early-stage commercialisation.
  • The Adelaide Rapid Prototyping & R&D Facility was commissioned and moved into full operation for fibre extraction, pulp validation, board trials and moulded tray production.
  • Papyrus progressed planning for an Adelaide commercial production facility, including lease negotiations and orders for long-lead equipment.
  • Papyrus executed a binding board production contract with a Vietnam-based paperboard manufacturer to support supply under the TBS contract.
  • The TBS Mining Solutions Collar Keeper® contract was executed on 27 November 2025 and has estimated revenue of $4.2 million over an initial 3.5-year term.
  • Initial commercial-scale product samples were delivered to TBS during the June 2026 quarter, with further testing and refinement continuing before full launch.
  • Papyrus continued advancing its intellectual property portfolio for mouldable cellulosic fibrous pulp technology.
  • The company received a $505,721 FY2025 R&D tax refund and secured an R&DTI-backed loan facility of up to $500,000, with $166,335 drawn by 30 June 2026.
  • Papyrus received a $250,000 Early-Stage Commercialisation Grant under the Industry Growth Program, with $235,000 received during the year.
  • Investors and directors provided about $1.247 million in equity, convertible note, loan and option-exercise funding during FY2026.
  • Cash at 30 June 2026 was $257,077, including $228,168 restricted in Egypt.
  • Net assets moved to a deficiency of $323,287 at 30 June 2026 from net assets of $307,713 a year earlier.
  • The financial statements note a material uncertainty regarding going concern, although directors believe continued funding can support operations.
  • Papyrus holds a 50% interest in Papyrus Egypt LLC and a 39.22% interest in Egyptian Banana Fiber Company, but both investments remained at nil carrying value after prior impairment.
  • Subsequent to year end, Papyrus announced further proposed and executed loan funding arrangements to support capital raising and convertible note funding.
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.