• Verbrec produced highest gross margins since 2015 in FY2025 at 37.3%
• Verbrec produced highest Adjusted EBITDA margin since 2013 in FY2025 at 10.3%
• Verbrec has agreed to acquire Alliance Automation, a leading industrial automation provider

Verbrec Ltd's Annual General Meeting presentation provides a comprehensive overview of the company's performance and strategic initiatives. The key highlights include Verbrec producing the highest gross margins since 2015 in FY2025 at 37.3% and the highest Adjusted EBITDA margin since 2013 at 10.3%. The company has also announced the acquisition of Alliance Automation, a leading industrial automation provider, for $5.5 million upfront cash consideration. This acquisition is expected to add over $60 million in annualized revenue and approximately 700 team members across 18 locations in Australia and New Zealand. The transaction is seen as a strategic fit, enhancing Verbrec's digital capability and providing opportunities to grow revenues through expanded services to a common client base. Verbrec's management team has a strong track record of improving business performance and is confident of improving the merged group's EBITDA margins in the near term. The presentation also covers Verbrec's partnership model, core services and capability, industry drivers, and the combined financial metrics of Verbrec (excluding the divested Competency Training business) and Alliance Automation.

Verbrec's FY2025 financial guidance includes revenue of $85.6 million, gross profit of $32.0 million (37.3% gross margin), and Adjusted EBITDA of $8.8 million (10.3% Adjusted EBITDA margin). The company has also re-established a dividend program, with a final FY2025 dividend of 0.1 cents per share, fully franked.

The acquisition of Alliance Automation is expected to provide growth opportunities and synergies to the combined group, with Verbrec aiming to increase revenues, enhance project delivery to reduce cost of goods sold, and realize synergies in expenses to bring the combined group's EBITDA margin to 8.0% - 10.0%. The combined group is well-positioned to benefit from industry trends, such as the increasing demand for industrial automation, cybersecurity, and artificial intelligence solutions.