• Strong closing cash at bank and total available funding
• Increase in quarterly collections and reduction in trade receivables
• Reduction in trade payables
• Reduction in capital investment program during the quarter
• Income tax payments of $1.2m

AVADA Group Limited (ASX: AVD) has released its quarterly activities report and Appendix 4C cash flow report for the three-month period ended 31 December 2024. The company reported strong closing cash at bank and total available funding, an increase in quarterly collections and reduction in trade receivables, a reduction in trade payables, a reduction in capital investment program during the quarter, and income tax payments of $1.2m. Operationally, the Group has focused on the consolidation of the independent trading operations into the single operating structure and brand, AVADA Traffic, which has provided opportunities to leverage work with clients on a national scale and optimize the operational base. However, the last quarter saw the continued redirection of government funding to manage cost-of-living pressures, resulting in delays in maintenance work streams and project commencement dates. Union activity continues to challenge the right to tender for Victorian infrastructure projects, while the Queensland Government has suspended the Best Practice Industry Conditions (BPIC) for new government projects. The New South Wales market shows good prospects with several high value rail and road infrastructure tenders recently entering the market, and the Group anticipates these infrastructure maintenance programs will be awarded during the second half of the financial year. New Zealand is currently in recession with commercial confidence low and funding allocation to only critical infrastructure maintenance works to be awarded before the end of the financial year.