The Advance Nanotek Ltd (ASX: ANO) share price has plunged 27% to $4.01 today after the sun screen material manufacturer revealed its financial results for the year ending June 30, 2019. The group posted a net profit of $3.38 million before an income tax benefit around $6.23 million that took net profit to $9.6 million.
However, operating cash flow came in at just $261,933 and after we account for $2.67 million in investing cash outflows offset by $1.64 million raised by share issues net cash actually decreased by $768,863 over the year.
The company had $352,533 cash on hand as at period end.
It also appeared to release its accounts today without any accompanying explanation or explanations over the numerical notes to the financial statements.
Therefore it's hard to speculate as to why the stock has plunged today other than to suggest the cash flows do not meet investors' expectations given how the company has consistently boasted of huge sales growth for its sun screen ingredient over FY 2019.
Other small cap darlings that have come back to earth recently include Nanosoncis Ltd (ASX: NAN) and Superloop Ltd (ASX: SLC).
