• Completed $8.7 million capital raise to fund growth
• Restructured operations to deliver $2.5 million in annualized savings
• Achieved $2 million in incremental Forest Radio sales

Structural Monitoring Systems Plc (ASX:SMN) reported its Q4 2024 results, highlighting three critical developments that will underpin the company's profitable growth. Firstly, the company completed a $8.7 million capital raise, including a $5 million institutional and sophisticated investor placement, a $2.2 million security purchase plan, and additional director and investor placements. Secondly, the company undertook a substantial restructuring of its operating costs, which is expected to deliver over $2.5 million in annualized savings starting in Q3 FY2025. Thirdly, the company achieved over $2 million in incremental Forest Radio sales through a successful year-end sales campaign. The company remains on track to achieve the lower end of its revenue forecast for the current financial year and generate positive free cash flow of more than $2 million. The company also made progress on key milestones, including advanced negotiations with CalFire for a significant 150-radio order and the certification process for its CVM sensor solution for Aft Pressure Bulkhead inspections. The company's restructuring and capital raise have positioned it well to focus on high-margin avionics products and markets that deliver the strongest financial returns.

The company remains on track to achieve, at minimum, the lower bound of its revenue forecast for the current financial year and a positive free cash flow of more than $2 million for the full year.

The company is focused on optimizing operational efficiencies and cost control while expanding its high-value avionics segment in the US, Canada, and globally. The anticipated approval by the United States Forest Service for the company's aerial firefighting products is expected to generate exponential growth, and the company has imminent key new product approvals that are also expected to contribute to strong financial results in 2025 and beyond.