Addvalue Technologies (A31) H1 2024 earnings summary

Executive summary

• 1H2024 revenue rose 87.8% YoY to US$4.619m; net loss narrowed to US$639k from US$1.005m, with positive EBITDA of US$170k versus negative US$149k.

• Operating cash flow swung to US$1.094m inflow from US$2.909m outflow; net current assets were US$1.2m at 30 Sep 2023.

Financial highlights

• Gross profit increased 45.9% YoY to US$2.244m, while gross margin declined to 49% from 63% due to sales mix.

• Operating loss was US$239k versus US$649k; finance expenses rose 12.4% to US$400k, and net loss was US$639k.

• Selling and distribution expenses fell 13.1% to US$271k; administrative expenses increased 21.2% to US$1.771m.

Outlook and guidance

• Management expects revenue momentum to continue over the next 12 months and expects FY2024 performance to improve versus FY2023, barring unforeseen circumstances.

• Significantly more SPC terminal deliveries are expected in 2H than 1H, with further customer launches anticipated over the next 12 months.

• ADR sales leads are being converted into orders; ADRS1000 module demand is progressing through customer orders and enquiries from anti-drone and smart RF sensing markets.