Loss-making Ecoya says it doesn't need to raise more cash despite chewing through more than $5 million in its last financial year and delaying its debt repayments.
Full year accounts for the scented candle maker show most of the $2.66 million it raised was eaten up through its acquisition of beauty products firm Trilogy. The company also drew down $2.7 million on a Bank of New Zealand loan bringing the $9.5 million loan facility up to $8.1 million.
But Ecoya chief executive Geoff Ross says the company has enough cash to fund its operations and growth.
"Ecoya does not have the need to raise more capital to fund it's existing business operations but will consider further capital raises in the future as the need dictates."
Ross said since the end of its financial year the company had raised $2 million through an investment by Milford Asset Management and Pie Funds which was used to pay down some of the $8.1 million debt.
The accounts show Ecoya renegotiated its loan with the BNZ on March 29 - just two days before the end of its financial year. The facility wasn't due to expire until September 17 next year. Ecoya had been paying $62,500 a month in principal repayments on the loan and was due to increase payments to $162,500 from April 30.
The bank agreed to allow Ecoya to make no repayments on $2 million of the loan until its expiry in April 30, 2015, and delay repayment of a further $7 million until April 1 next year.
Its accounts also reveal the group and its parent have been "subject to externally imposed capital requirements regarding interest cover since September 10, 2010 in relation to the facility with Bank of New Zealand".
The company said in its accounts that group and parent had complied with the requirements for the entire period reported.
The accounts show there was also an increase in money owed to Ecoya for its products, particularly debt that was overdue by more than two months.
Past due receivables crept up from $765,000 to $1,059,000. In particular, those more than 61 days late doubled from $150,000 to $320,000.
Ross said of the $320,000 owed, $140,000 related to one customer, a big retailer that was granted a longer payment term, and the company had subsequently paid up.
A further $80,000 related to another customer that had since paid in full under revised terms, he said.
"The remaining debtors' balance [$100,000] is made up of a number of other customers who we consider collectible."
Ross said he expected debtor balances to continue to grow as the business grew.
Ecoya reported a $218,000 net loss for the year, down from the previous year's $4 million loss. Annual sales rose to $22.6 million from $14.3 million the previous year, which had included seven months of Trilogy sales.
Profit after interest costs, but before tax and non-recurring accounting adjustments relating to the Trilogy earn-out provisions, was $204,000 in the year ended March 31 compared with a $3.6 million loss the previous year.
Ecoya paid $10 million for Trilogy and settled the earn-out provisions at the end of March by paying $4.6 million in cash and issuing 4.6 million new shares to Trilogy's former owners.