Structural Monitoring Systems (ASX: $SMN) Quarterly Update

Structural Monitoring Systems Plc (ASX: $SMN) has reported a maiden quarterly profit before tax of $0.51m for the quarter ended 30 June 2024, driven by the launch of the new MTP136D forest service radio product. The Group also recorded EBITDA of $1.21m for the June quarter, marking a 123% increase from the prior year. Additionally, the Group achieved gross revenue of $7.97m for the quarter, up 34% from the prior year. The positive cashflow from operating activities for the year was $1.01m. The board and management team have finalized the budget and plan for 2024/2025 and will be reporting on this in the coming weeks.

Executive Commentary

The June quarter has again seen solid progress for SMS, notwithstanding the continuing delays in final Boeing approval for the Aft Pressure Bulkhead CVM™ application which we have outlined above and in prior announcements during the quarter. Recording a maiden profit before tax in excess of half a million dollars rounds off a much-improved year for the Group in which significant growth in both revenue and profitability has been achieved. The contract manufacturing business segment continues to perform very solidly with the team focused on manufacturing products that deliver high value back to the company. Our Special Missions Avionics segment continues to experience ongoing growth, especially in relation to the Forest Radio product, which is now certified in Canada and on track for formal acceptance in the United States. As we have communicated previously, we remain confident about the progress of the CVM™ certification and its ability to meet the demands of both the FAA and the market, albeit remaining adherent to the timelines imposed by Boeing in relation to this process. We expect to update the market further on this following the meeting scheduled with Boeing and our team for August 1.

Summary of Quarterly Update

Structural Monitoring Systems Plc (ASX: $SMN) achieved a maiden quarterly profit before tax of $0.51m, driven by the launch of the new MTP136D forest service radio product. The Group also recorded EBITDA of $1.21m for the June quarter, marking a 123% increase from the prior year. The positive cashflow from operating activities for the year was $1.01m. AEM achieved critical FCC and ISED certifications for the new MTP136D forest service radio and submitted a new STC application for the AS350/H125 aircraft to Transport Canada. The Group's focus remains on achieving growth in key international markets for the company's avionics products, as well as satisfying the final testing requirements for its CVM™ smart sensors to Boeing's ultimate satisfaction. The company also launched a new SMS investor-relations focused website and domain during the period, further integrating the related entities. The Group anticipates providing a more detailed analysis of financial performance across each business segment, as well as an outlook for FY2025, in forthcoming announcements to the market.