Liontown Grants Due Diligence Extension as Redbubble Reports Positive Q1

In recent developments, Liontown Resources Limited has allowed an extension to Albemarle Corporation's due diligence period for its proposed acquisition, while Redbubble Limited has shared an optimistic trading update for the first quarter of FY24, showcasing a return to positive underlying cash flow and impressive financial metrics. These two companies, operating in different sectors, bring forth distinct yet noteworthy updates.

Liontown Grants Extension to Albemarle

Liontown Resources Limited (ASX: LTR) has granted a seven-day extension to Albemarle Corporation's due diligence period, in response to Albemarle's request. This extension relates to Albemarle's proposal to acquire all outstanding ordinary shares in Liontown for AU$3.00 per share in cash.

Positive Q1 for Redbubble Limited

Redbubble Limited (ASX: RBL) has released its first-quarter trading update for FY24, reporting a return to positive underlying cash flow.

Impressive Q1 Financial Metrics

In the first quarter of FY24, Redbubble achieved positive underlying cash flow of AU$0.7 million, a substantial increase from the previous year. Additionally, the cash balance as of September 30, 2023, stood at AU$39.9 million, showing an AU$4.2 million increase from June 30, 2023.

Gross Profit and Margin Growth

Redbubble delivered a Gross Profit After Paid Acquisition (GPAPA) of AU$26.5 million, a 14% increase from the prior year. The GPAPA margin also improved, reaching 28.0%, a 490 basis point rise from the previous year.

Focus on Cost Optimization

The Group's focus on cost optimization included introducing artist account tiers, implementing a

dynamic order routing system, and reducing product return rates. These initiatives contributed to the growth in gross profit.

Outlook and Guidance

Despite challenging trading conditions, particularly in the US, Redbubble reaffirmed its FY24 guidance. It expects a GPAPA margin between 23% and 26% and operating expenditure ranging from AU$92 million to AU$100 million for FY24.

Annual General Meeting

Redbubble Limited will hold its Annual General Meeting on October 24, 2023, at the Melbourne Convention Centre. Shareholders can also participate online.

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