Babylon Pump & Power (ASX:$BPP) Trading Update and Agreement Variation

Babylon Pump & Power Limited (ASX:BPP) has released a positive trading update and announced a variation to the payment terms for the acquisition of Resource Water Group. The company has made significant progress in reducing deferred consideration for its latest two acquisitions and has commissioned additional hybrid power units for its rental fleet, aiming to meet customer demands in the new calendar year.

Executive Commentary on Strategic Initiatives and Earnings Growth

I am pleased that Babylon has delivered on its commitment to strengthening test pumping capabilities as well as growing its rental fleet. I'm confident the strategic initiatives will continue to deliver earnings growth for the Company and am enthusiastic about the opportunities ahead. We are working on a number of technology partner innovations, which we aim to offer (via test pumping and rental services) to our clients within the next 12 months. As a vested stakeholder, I am excited about the strategic direction of Babylon to continue the earnings growth and business momentum.

Summary of Positive Trading Update and Future Outlook

Babylon Pump & Power Limited (ASX:BPP) has shown positive progress in reducing deferred consideration for its latest acquisitions and has extended the final payment date for the acquisition consideration of Resource Water Group. The company has also commissioned additional hybrid power units for its rental fleet, aiming to meet customer demands in the new calendar year. The executive commentary reflects confidence in the strategic initiatives and the potential for continued earnings growth. Babylon is also fielding inbound interest in relation to the hybrid units and continues technical discussions with new clients looking to incorporate low carbon footprint technology on a rental basis. The unaudited management accounts for the four months ended 31 October 2023 reflect EBITDA equating to approximately 62% of the full FY23 normalised EBITDA of $2.8M, indicating positive performance. The company's focus on reducing emissions and expanding its technological offerings positions it for potential growth and continued success in the future.