• Revenue declined 10% to $91.06m due to project and budget delays
• Statutory loss of $9.57m includes $9.72m impairment of NZ business
• Consolidated 11 Australian businesses under AVADA Traffic brand
• Outlook remains positive with strong pipeline of maintenance and civil projects

AVADA Group Limited reported a 10% decline in revenue to $91.06m for the half-year ended 31 December 2024, compared to $101.63m in the prior corresponding period. The statutory loss for the period amounted to $9.57m, which included a $483,975 gain from a reduction in the fair value of the contingent consideration for the STA Traffic Management acquisition, offset by a $9.72m impairment of the New Zealand Cash Generating Unit. The impairment reflects the wider economic and market conditions, including cuts in government funding for infrastructure projects and maintenance works programs, impacting commercial confidence in the New Zealand market. The Group has been focused on consolidating its independent trading operations into a single operating structure and brand, AVADA Traffic, integrating 11 Australian businesses. This has provided opportunities to leverage a national footprint and preferred supplier arrangements, while also managing an efficient organisational cost structure. While gross margins have remained consistent, the Group has faced challenges from competitors reducing schedules of rates to secure work, particularly in New South Wales and Victoria. The Group has responded by focusing on fleet utilisation and cost control measures.Looking ahead, the pipeline for maintenance projects and civil services work remains strong due to recurring maintenance requirements of essential infrastructure and government funding of new projects. Early indicators suggest positive momentum and an improvement in revenue performance in the second half of the financial year. The Group continues to deliver industry best practice and public accountability standards for safety, governance and reporting across its operations.

The Group expects revenue and profit growth in the second half of FY25 driven by a strong pipeline of maintenance and civil projects. No further details provided.

The Group remains optimistic about its future prospects, with a strong pipeline of maintenance and civil projects expected to drive revenue and profit growth in the second half of FY25. The Group is focused on delivering industry-leading standards for safety, governance and reporting, and evaluating future acquisition and diversification opportunities.