Ann: Half Yearly Report and Accounts, page-2

Nothing really new in these half year results, as the company had already disclosed a lot in their quarterly results.

Reminder of the main element (for me) : despite a 22 % revenue decrease, the company was able to improve its adjusted EBITDA (from 0.6 m NZD in H1 23 to 1.7 m NZD in H1 24). Thanks to an increase of its gross margin (by 530 bp) and a decrease of its operating costs (by 11 %).
The company was able to generate 1.8 m NZD of free cash flow (after lease) thanks to the EBITDA improvement and a large decrease of its working capital (which had a positive impact of 1.6 m on their cash flow from operation).

New elements disclosed in these presentations :
- profit improvement in North America with a loss of 0.2 m vs a loss of 1.4 m pcp,
- subscription revenues* (= 11 % of total revenues) decreased by 11 % (vs - 22 % for total revenues) which may also explain the improvement of gross margin,
- impairment of 1.4 m NZD on the acquisition of IDEST.


* from North America only