Intelligent Monitoring Group (IMB) H1 2025 earnings summary

Executive summary

• Adjusted EBITDA reached AUD 17.5 million for the half, up 22-23% year-over-year, with margin at 22% and revenue growth of 43-45% driven by acquisitions and organic expansion.

• Guidance for FY25 adjusted EBITDA reaffirmed at over AUD 38 million (pre-acquisitions) and over AUD 40 million including acquisitions, representing a 48.7% increase from FY24.

• Major refinancing reduced funding costs from 15% to under 7% per annum, with a new NAB facility and AUD 35 million acquisition facility available.

• Net loss after tax widened to AUD 9.1 million, impacted by non-cash impairments and acquisition-related costs.

• Business transformation from turnaround to growth phase, now the largest security monitoring service in Australasia with over 210,000 customers and nearly 600 staff.

Financial highlights

• Revenue for 1H25 was AUD 80.8 million, up from AUD 55.7 million year-over-year; gross profit rose to AUD 30.6 million but was impacted by higher costs and amortisation.

• Adjusted EBITDA increased to AUD 17.5 million (from AUD 14.2-14.3 million), with a margin of 22%.

• Net loss reported at AUD 9.1 million, impacted by AUD 7.6 million in non-recurring items and AUD 9.0 million in amortisation.

• Net debt at AUD 57.1 million, with net debt to EBITDA at 1.4x, down from 5.5x in Feb 2023.

• Operating cash flow before non-recurring items was AUD 7.5 million, up 44% year-over-year.

Outlook and guidance

• FY25 adjusted EBITDA guidance reaffirmed at over AUD 38 million (pre-acquisitions) and over AUD 40 million including acquisitions.

• Finance costs expected to materially decrease following refinancing, reducing annual interest by over AUD 6.5 million.

• Focus on organic growth, pipeline expansion, and further margin improvement toward 25-30% EBITDA margin over time.

• Commercial business and new video guarding service expected to drive significant group-level growth in the next 6-12 months.