• Revenue down 10.5% to $183.1m
• Net loss of $17.6m, including $14.8m in impairments
• New Zealand operations impacted by weak economic conditions

Avada Group Limited (the Company) has reported a net loss of $17.6m for the year ended 30 June 2025, compared to a profit of $1.5m in the prior year. The statutory loss includes impairments of $14.8m in relation to the carrying value of subsidiary companies in New Zealand and New South Wales, reflecting their financial performance in the year. Total revenue for the Group was $183.1m, down 10.5% from $204.5m in the prior year. The Group encountered challenging trading conditions across its operations during the year, including severe weather events, project delays, margin compression due to intense price competition, and economic weakness in New Zealand reducing the volume of government funded projects. The Company completed the consolidation and re-branding of eleven Australian businesses into a single operating platform, AVADA Traffic, to strengthen its competitive advantages. New senior management appointments were also made during the financial year. The Group has undertaken a strategic review of its New Zealand operations, which resulted in a $9.7m write-down in the valuation of the business and a management restructure. The transformation of the Group's operations has created a solid operating platform and delivered initial efficiency improvements, and the Group remains cautiously optimistic about revenue and earnings momentum going forward.

The underlying drivers of demand for traffic management services remain positive, underpinned by a substantial pipeline of infrastructure development and maintenance projects in the Group's core markets. The transformation of the Group's operations has created a solid operating platform and delivered initial efficiency improvements. The Group is well-positioned and cautiously optimistic about revenue and earnings momentum going forward.