Key Highlights

  • Product sales revenue was $5.63 million in Q1 FY27, up 8.3% on the prior corresponding period.
  • Normalised gross margin was 50.8% against 49.1%, while the reported margin under the new accounting policy was 47.1%.
  • Cash and cash equivalents were $7.30 million at 30 September 2026, up from $5.63 million at 30 June 2026.
  • The company recorded an unaudited net loss before tax of $0.24 million, compared with a $0.35 million profit a year earlier.

Advanced Braking Technology Ltd (ASX:ABV) released its quarterly activities report and Appendix 4C for the quarter ended 30 September 2026 (Q1 FY27) on 19 October 2026. The Perth-based company designs, manufactures and distributes braking systems, and the report covered revenue, margins, cash flow, product testing and international activity.

Revenue and gross margin

Product sales revenue was $5.63 million, up 8.3% from $5.20 million in the prior corresponding period (pcp). Sales covered light and heavy vehicle brake systems, spares and consumables.

Normalised gross margin rose to 50.8% from 49.1%. ABT changed its accounting policy in FY27 to include labour and overhead costs in cost of goods sold. The normalised figure excludes those costs, which were $0.21 million in the quarter, to allow a like-for-like comparison with FY26. Under the new policy the reported gross margin was 47.1%.

Earnings and cash position

ABT recorded an unaudited net loss before tax of $0.24 million, compared with a net profit before tax of $0.35 million in the pcp. The company linked the result to continued investment in capability and product development, together with the timing and mix of revenue across the quarter.

Cash and cash equivalents were $7.30 million at 30 September 2026, an increase of 29.7% on the 30 June balance and 152.6% on the $2.89 million held a year earlier. Net cash from operating activities was $1.80 million, against $0.29 million in the pcp, and included a $0.68 million R&D tax incentive refund from the Australian Taxation Office.

Appendix 4C cash flow detail

Receipts from customers totalled $7.054 million. Payments included $3.294 million for product manufacturing and operating costs, $1.290 million for staff, $1.169 million for administration and corporate costs, $85,000 for research and development and $64,000 for advertising and marketing.

Investing outflows were $10,000 for property, plant and equipment, and financing outflows were $116,000 for repayment of borrowings. Payments to related parties were $71,000 for non-executive director fees and superannuation. The company holds a $194,000 unsecured insurance premium funding facility with Momentum Premium Funding at a flat rate of 3.98%, with $193,857 outstanding and five months remaining.

Because operating cash flow was positive, the estimated quarters of funding item in the Appendix 4C was reported as not applicable.

BRAKEiQ testing and international activity

In August 2026, independent testing at the University of Pretoria confirmed that BRAKEiQ meets the MOSH TRL4 ISO 21815 specification, part of a traffic management program mandated by the Minerals Council South Africa. ABT described the result as a step toward CAS Level 9 certification, with the compliance pathway now moving to real-world machine testing.

During the quarter ABT exhibited at the Electra Mining Conference in Africa and reported opportunities across South Africa, Zimbabwe, Botswana, Ghana and Namibia. It also reported trials and deployment opportunities with mining operators and contractors in Australia and Papua New Guinea, along with structured BRAKEiQ pilot programs.

ABT also progressed development and validation work across its vehicle-safety portfolio, including driveline braking applications, control-system development and cost-reduction initiatives. It said customer engagement increasingly extends beyond initial vehicle installations to fleet standardisation, contractor adoption, spares, training and lifecycle support, and described Ghana as an important growth market, with developing opportunities in Botswana, South Africa and Namibia.