Half Year 2025 results presentation
| Stock | Avada Group Ltd (AVD.ASX) |
|---|---|
| Release Time | 24 Feb 2025, 7:12 p.m. |
| Price Sensitive | Yes |
AVADA reports H1 FY2025 results
- Revenue decreased 10% to $91.1m
- Underlying EBITDA of $6.2m, down from $9.3m in H1 FY24
- Statutory loss of $9.6m due to $9.7m impairment of NZ operations
AVADA Group Limited reported its financial results for the half year ended 30 June 2025 (H1 FY2025). Revenue decreased 10% to $91.1m, compared to $101.3m in H1 FY2024, due to challenging economic and market conditions impacting a wide range of industries. Underlying gross margin was 21.6%, down from 22.8% in the prior period, while underlying EBITDA was $6.2m, compared to $9.3m in H1 FY2024. The company reported a statutory loss of $9.6m, which included a $9.7m impairment loss from the write-down of the Group's New Zealand operations.The company has focused on executing its strategy to strengthen its market proposition and position itself for future growth opportunities. This includes consolidating into a single operating structure and brand, AVADA Traffic, improving back-office processes and systems, and strengthening senior leadership. AVADA continues to lead the industry in safety, governance, and reporting, and is allocating dedicated resources to generate preferred supplier agreements.Looking ahead, AVADA expects to see positive momentum in H2 FY2025, with postponed government projects resuming and maintenance projects and civil services pipelines remaining strong. However, union activity will remain a challenge in the Victorian market. The company will also conduct a strategic review of its New Zealand operations, with an update expected by 30 June 2025. The focus for the second half of the year is to recover profit margins and obtain further preferred supplier arrangements.
AVADA expects to see positive momentum in H2 FY2025, with postponed government projects resuming and maintenance projects and civil services pipelines remaining strong. However, union activity will remain a challenge in the Victorian market.
AVADA remains market leading in the $2 billion Australian traffic management industry and has strong short and long-term growth opportunities. The company will conduct a strategic review of its New Zealand operations, with an update expected by 30 June 2025. The focus for the second half of the year is to recover profit margins and obtain further preferred supplier arrangements.