AD1 Appendix 4D & December 2024 Half Yearly Report
Key points
- Revenue down 4% to $2.1 million
- Net loss after tax up 33% to $3.4 million
- Acquisition of Oliver Grace Pty Ltd completed in August 2024
- Strategic cost reduction of $1.5 million executed in January 2025
Full summary
AD1 Holdings Ltd (now known as AdNeo Limited) reported a 4% decline in revenue to $2.1 million and a 33% increase in net loss after tax to $3.4 million for the half year ended 31 December 2024. The decrease in revenue was primarily due to the discontinuation of the Utility Software Services (USS) business, lower revenue from ApplyDirect, and flat revenue from the Art of Mentoring business. The company completed the acquisition of Oliver Grace Pty Ltd in August 2024, which contributed $503k in new revenue. Management undertook cost-saving initiatives that resulted in an 8.21% reduction in consolidated expenses. In January 2025, the company received $780k from the ATO's Research and Development tax incentive and executed a strategic cost reduction of an annualised $1.5 million, strengthening AdNeo's cash flow position and setting the business up for future M&A opportunities.
Guidance
AdNeo expects to receive additional development engagements in the coming months as it completes the migration of customers to the new 'Gen3' platform. The company also anticipates several new business opportunities and reactivations in March and April 2025, which are expected to contribute positively to the Group's financial position.
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