Coventry Group (CYG) investor relations material

Executive summary

• Achieved a significant turnaround in FY26 with a strong second-half earnings recovery, $10m in annualized cost savings, and a materially improved exit run rate.

• Revenue grew 2.8% year-over-year to $375.3m, with 94 branches across Australia and New Zealand.

• Statutory net loss narrowed to $15.2m from $29.6m in FY25, after significant items totaling $15.7m, mostly non-cash.

• Branch optimisation led to three closures and remediation plans for underperforming sites, improving network profitability.

• Strategic review remains ongoing, with non-binding offers for divisions exceeding market capitalization but not accepted.

Financial highlights

• Revenue: $375.3m (+2.8% vs FY25); Adjusted EBITDA: $9.4m (-23.6% vs FY25); Net assets: $104.1m.

• EBITDA nearly doubled in 2H ($6.2m) compared to 1H ($3.2m), with Q4 EBITDA of $4.1m, the strongest in 18 months.

• Net debt at June 30, 2026 was $55.2m, down $1.1m year-over-year, with available liquidity of $14.8m.

• Net tangible assets stood at $22.2m and net assets at $104.1m.

• Significant items totaled $15.7m, mostly non-cash, including accounting estimate changes, inventory adjustments, and ERP write-offs.

Outlook and guidance

• FY27 priorities include revenue and market share growth, margin improvement, operational efficiency, and debt reduction.

• July FY27 trading showed revenue up 1.3% and EBITDA up 79.3% year-over-year, with momentum building into August.

• Medium-term objectives: EBITDA margin >10%, cash conversion >80%, gross leverage <2.0x.

• Capital expenditure to be held below $3m, with free cash flow directed to balance sheet improvement.