• Avionics business segment experienced 32% revenue growth
• Contract manufacturing revenue declined 23% as focus shifted to higher margin Avionics
• CVM™ sensor solution certification process with FAA advanced, awaiting final approval
• Company raised $8.7m through share placement and SPP, funds to be used for product development and capacity expansion

Structural Monitoring Systems Plc ('SMS' or 'the Company') (ASX: SMN) reported a review of operations by business segment for the half-year period ended 31 December 2024. The Avionics business segment generated gross revenue of $5.93 million, an increase of 32% from the prior period's $4.51 million, driven by key milestones and growth in the Special Mission Aviation Sector. The Contract Manufacturing segment recorded revenue of $6.70 million, a decrease of 23% from the prior period's $8.66 million, as the company shifted focus towards higher margin Avionics. The certification process for the Company's CVM™ sensor solution for Aft Pressure Bulkhead (APB) inspections advanced significantly, with the FAA finalizing its certification requirements in January 2025. During the half-year, the Company successfully raised $5.00 million through a share placement and a further $2.20 million through a Securities Purchase Plan, with the funds to be used for product development, manufacturing capacity expansion, and general working capital. The Group incurred an after-tax loss of $2.31 million for the half-year, an increase of 112% on the prior period, due to costs associated with operating an ASX-listed company, share-based expenses, and restructuring costs related to the wholly-owned subsidiary, AEM.

The Company will continue its focus on avionics product development and commercialization, leveraging strong intellectual property and market expertise. Efforts will also continue in commercializing CVM™ technology and securing FAA approval for the APB application in 2025.