One of the biggest movers on the market today has been the Catapult Group International Ltd (ASX: CAT) share price.
At the time of writing the sports analytics and wearables company's shares are up 11% to $1.71.
Why are its shares higher?
This morning Catapult provided the market with its first-quarter update for FY 2018.
That update revealed a 23% increase in group cash receipts on the first-quarter of FY 2017 to $27.8 million. A key driver of this growth was its Elite Wearable business which saw cash receipts rise an impressive 80% on the prior corresponding period to $10.1 million.
This ultimately led to Catapult reporting a net operating cash flow of $8.3 million for the quarter and a 20% increase in its cash balance to $20.1 million.
Cash outflows are forecast to be $21.8 million in the next quarter, up from approximately $19.5 million this quarter. This appears to be down to a rise in staff costs potentially as a result of its acquisition of the SportsMed Elite and Baseline Athlete Management System from SMG Technologies.
I believe that Catapult has a sufficient cash balance to cope with this increase and feel it is unlikely that it will need to raise capital this year.
Should you invest?
While I am a big fan of the company and its technology, I'm still not yet a buyer of its shares.
As the first-quarter is a seasonally strong quarter for the company, I'd like to see how it performs in the upcoming quarters before making an investment.
