• Trading Revenue of $77.9m, up 6.0% on prior corresponding period
• Pro forma EBITDA of $8.2m, down 16.9% on prior corresponding period
• Positive cashflow from operations of $10.1m; 123% cash conversion ratio

Adrad Holdings Ltd reported a 6.0% increase in trading revenue to $77.9m for the first half of FY25, driven by growth in both the Heat Transfer Solutions (HTS) and Distribution segments. HTS witnessed increasing demand for cooling solutions in the powergen market, specifically growth in projects relating to backup generators in the data centre sector, as well as increased sales volumes for off-highway (e.g. mining vehicles) cooling units. The Distribution segment delivered a 4.6% increase in revenue as it continued to grow new sales channels. However, pro forma EBITDA declined 16.9% to $8.2m due to increases in materials and consumable costs, employee costs, doubtful debt provisions, foreign exchange losses, and insurance costs. The company responded by adjusting selling prices, renegotiating an OEM contract, implementing a freight cost reduction program, and deploying more active foreign currency exposure management. Adrad declared an interim dividend of 1.40 cents per share, fully franked, which equates to 40% of statutory half year net profit after tax.

The company is confident of achieving continued revenue growth, with significant progress made in positioning the business for long-term growth across its core markets. The Heat Transfer Solutions segment is experiencing ongoing demand for its bespoke engineered solutions across the Australian and Asian markets, while the Distribution segment will continue to focus on extracting value through ongoing improvement initiatives.

Adrad is confident that full year revenue will continue to grow off the back of actions taken and a strong order book, particularly in data centre backup powergen, industrial service and maintenance activity in rail and powergen sectors. The company is also investing in product development for the Heat Transfer Solutions business segment and targeting new areas for growth in the Distribution segment, such as the crash repair sector.