• Seasonally low cash flow quarter with positive operating cash flows achieved
• Reduction in operating cash expenditures in response to seasonal trading conditions
• Ongoing capital investment program funded from internal cash reserves

AVADA Group Limited (ASX: AVD) has reported its quarterly cash flow for the period ended 31 March 2025. The company achieved positive operating cash flows during the seasonally low quarter, with a reduction in operating cash expenditures as a response to seasonal trading conditions. The Group continued its ongoing capital investment program, funded from internal cash reserves. An expected seasonal reduction in trading performance was attributed to slower activity in January across the country due to a prolonged summer holiday season, as well as extraordinary rains in Queensland causing delays in contracted and pipeline road and infrastructure works. The New Zealand economy remains challenging due to the protracted recession, and the company's new CEO, Mr. Donald Montgomery, is undertaking a strategic review of operations and market positioning in New Zealand. The process to centralize and consolidate core operating systems continues, with the integrated payroll system at an advanced stage and finance system implementation in final stages of go-live, expected to drive further efficiencies and greater productivity for the Group.

The company expects June quarter revenues to improve due to timing delays and seasonally higher volumes of activity.