Quarterly Activities/Appendix 4C Cash Flow Report
| Stock | TZ Ltd (TZL.ASX) |
|---|---|
| Release Time | 31 Jan 2025, 8:48 a.m. |
| Price Sensitive | Yes |
TZ Ltd Reports Q2 FY2025 Results
- Revenue of $2.33M, below expectations due to delayed US project commencements
- Post-election recovery in the US, with December sales rebounding to $1.17M
- Net operating cash outflow of $529K, with continued debt reduction
TZ Limited (ASX: TZL) released its Appendix 4C - Quarterly Cash Flow Report for the quarter ended 31 December 2024. The company reported quarterly revenue of $2.33M, which was below plan expectations, primarily due to delayed project commencements in the US, attributed to economic uncertainty ahead of the US election. However, with the US election concluded, government and corporate spending has resumed, driving increased activity, and December sales rebounded to AUD $1.17M, aligning with planned expectations. The net cash outflow from operating activities for the quarter was $529K. The company made an additional repayment of $500K to its debt facility, reducing the outstanding balance from $3.3M to $2.8M. While the US subsidiary underperformed relative to plan, both ANZ and ASIA outperformed expectations, mitigating some of the revenue shortfall. Operating expenditure remains tightly managed and is significantly below budgeted spending levels. Annuity revenue remains stable at an annualised $3.9M, with forecasted growth of 20% over the 2025 fiscal year. The proposed acquisition of Keyvision Holdings Pty Limited, announced in October 2024, is now expected to complete due diligence and conclude by the end of February 2025. Additionally, the company remains optimistic about growth in the data centre security segment, driven by AI-related demand.
The company expects to recover lost ground over the next six months, with forecasted annuity revenue growth of 20% over the 2025 fiscal year.
The calendar year 2025 is set to be a year of strategic growth for TZ, with the acquisition of Keyvision, the expansion of the US market, and investments in licensing and new distribution channels underpinning the company's key objectives. The robust sales pipeline and strong market demand position TZ well for a strong second half of the 2025 financial year.