Adrad Holdings Limited (ASX: $AHL) 1H FY24 Results Overview

Adrad Holdings Limited (ASX: $AHL) has reported its half year results for the period ending 31 December 2023, showing a 7.6% increase in trading revenue to $73.5 million and an 8.4% rise in pro forma EBITDA to $9.9 million. The company's Heat Transfer Solutions (HTS) business segment achieved 8% year-on-year revenue growth, while the Adrad Distribution business segment saw a 7% increase in revenue. The directors have declared an interim dividend of 1.33 cents per share declared, fully franked.

Executive Commentary on 1H FY24 Results

Adrad CEO, Darryl Abotomey, expressed satisfaction with the company's performance, highlighting the 7.6% revenue and 8.4% pro forma EBITDA growth, which exceeded the forecast range of 5%-8%. Abotomey also mentioned the completion of a suite of executive appointments, positioning the company to harness the potential of its two business segments and become the 1st choice in Asia Pacific for industrial engine and cooling solutions.

Summary of 1H FY24 Results and Outlook

Adrad's 1H FY24 results showcased positive growth in trading revenue and pro forma EBITDA, driven by the HTS and Adrad Distribution segments. The company's outlook for FY24 includes a focus on expanding revenues in the Asian market, completing the re-lay of factory equipment and processes in the Thailand manufacturing plant, and strengthening relationships with OE customers. Additionally, Adrad Distribution will concentrate on extracting value from its infrastructure with an emphasis on cooling and associated products. The company maintains its outlook for year-on-year revenue and EBITDA growth in the range of 5%-8% and plans to present its long-term strategic plan at an investor day in May/June 2024.