• Consolidation and transformation of acquired businesses into a single operating structure
• Reduction in recordable injuries, but continued focus on safety
• Business transformation streamlined processes, reduced costs and enhanced client service
• Challenging trading conditions affected financial results, with strategic review and restructuring undertaken

The 2025 financial year was a difficult period but nonetheless one of consolidation and transformation for AVADA Group. The company managed the consolidation of its acquired businesses into a single operating structure, bringing together 11 Australian businesses into a single operating platform under the AVADA Traffic brand. Safety for the company's people, other workers on its sites, and road users remained a critical priority, with the company reporting a reduction in recordable injuries for the year. To strengthen its competitive position under the new Group operating structure, AVADA also undertook a business reporting transformation, moving its operations onto a single ERP platform that provided improved and consistent information and insights. These initiatives have created a robust competitive foundation for the business, with more than 1,650 traffic controllers in 22 depots across Queensland, New South Wales, Victoria, and the South Island of New Zealand. The Group also welcomed new leadership, with the appointments of Donald Montgomery as Chief Executive Officer, Ben-Louis Ludik as Chief Financial Officer, and Rhys Attwood as EGM Strategic Execution and Operations. However, the company's financial results were directly affected by a range of market factors, including the effects of severe weather events and delays to the commencement of government infrastructure projects. This resulted in a 10.5% decline in revenue and a statutory net loss after tax of $15.6 million. The company's New Zealand business continued to be affected by the weak national economic outlook, leading to an operating loss of $11.8 million and a $9.7 million write-down in the carrying value of the business. The Group undertook a strategic review to consider all options for the future of the business, including selling and closing its New Zealand operations. After the review, the Board continues to support the current operations and the Group's improvement plans to restore profitability.

The market outlook for traffic management services remains positive, with substantial planned investments in infrastructure development and maintenance projects in the company's major markets. However, the industry is highly fragmented and continues to face a range of risks, including project delays, pricing pressures, weather disruptions, and trade union activity. AVADA is increasingly seen as a leader in the traffic management industry due to its national brand, the scale of its operations, and its demonstrated commitment to best practices in safety, client service, and governance. The Board believes that the continuing transformation of the business is strengthening the company's competitive position and its ability to effectively respond to market challenges.