• Total revenue of $91m, down from $101m in prior year
• Underlying EBITDA of $6.2m, statutory loss of $9.6m
• Ongoing operational consolidation driving efficiencies

AVADA Group Limited (ASX: AVD), a leading independent Australian traffic management operator, has announced its half-year results for the period ended 31 December 2024. The Group's total revenue was $91 million, compared to $101 million in the prior year (1H FY24), due to challenging operating conditions. The company reported an underlying EBITDA of $6.2 million, excluding an impairment adjustment. While gross margins for the Group have remained relatively consistent, there was a statutory loss of $9.6 million. This loss reflects a gain of $0.5 million from reducing the estimated liability for future consideration payments related to the STA Traffic Management acquisition, and an impairment loss of $9.7 million resulting from the write-down of the Group's New Zealand operations, which have been negatively impacted by economic conditions. The Group continues to focus on operational consolidation, having consolidated 11 Australian businesses while rebranding the New Zealand operations under AVADA Traffic NZ. This consolidation is driving efficiencies throughout the Group. Looking ahead, the company remains optimistic about the future, with the outlook for maintenance projects and civil services work remaining strong, driven by the ongoing upkeep of essential infrastructure and government investment in new projects. Despite delays in government funding and shifting project priorities in the first half, the Group expects strong growth opportunities in the second half of the financial year.

While revenue growth was subdued during the reporting period, AVADA remains optimistic about the future. The outlook for maintenance projects and civil services work remains strong, driven by the ongoing upkeep of essential infrastructure and government investment in new projects. Despite delays in government funding and shifting project priorities in the first half, strong growth opportunities remain for the second half.