Livium Ltd (ASX:LIT) Secures A$5.0M Recycling Agreement with Sell & Parker
New Recycling Agreement
Livium Ltd has signed a recycling agreement with Sell & Parker, valued at over A$5.0 million. The agreement is expected to generate A$3.0 million in revenue over the next 12 months, accounting for 45% of total FY24 revenues.
Financial Impact
The contract represents Livium’s largest recycling agreement to date and is anticipated to increase gross profits without significant changes to operating costs. The agreement has a three-year term, with initial volumes expected in May 2025 and continued deliveries through FY26 and FY27.
Executive Comments
CEO and Managing Director Simon Linge stated, “This Agreement with Sell & Parker has the potential to be Envirostream’s largest ever recycling contract on a revenue basis. Project agreements, such as this one, are important to deliver volumes whilst e-mobility and energy storage volumes grow year on year.
“Securing this contact demonstrates Sell & Parker’s confidence in our governance and safety standards. Livium’s recycling business will continue to build the pipeline of quality customers and channels to grow its top and bottom line as we scale operations nationally.
“We thank Sell & Parker for extending our longstanding relationship through this new contract and look forward to providing quality services for them.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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