Adrad Holdings reports 7.6% revenue growth in 1H FY24

Adrad Holdings Limited (ASX: $AHL) has reported a 7.6% increase in statutory revenue for the first half of the financial year 2024, reaching $73.5 million. This growth was driven by both segments, with Heat Transfer Solutions (HTS) up 8.2% and Adrad Distribution up 7.0%. The pro forma earnings before interest, taxes, depreciation, and amortization (EBITDA) for 1H FY24 increased by 8.4% to $9.9 million, despite facing inflationary pressures on raw materials, salaries and wages, IT, insurance, and lease costs.

Executive Commentary on 1H FY24 Performance

The company's focus on cost management and strong year-on-year growth in underlying business operations has led to an 8.4% increase in pro forma EBITDA, reflecting the resilience of our business in the face of inflationary pressures. While HTS experienced a modest increase, Adrad Distribution benefitted from higher volumes while limiting cost base increases. The positive cash flow generated from operating activities, amounting to $11.1 million, reflects the concerted focus on inventory management, with further reductions in inventory expected. The company remains optimistic about its outlook and is pleased to announce the appointment of Mr. Kevin Boyle as the new Chief Executive Officer, effective April 2024, to lead the company forward.

Summary of 1H FY24 Results and Outlook

Adrad Holdings Limited has delivered a strong performance in the first half of the financial year 2024, with a 7.6% increase in statutory revenue and an 8.4% rise in pro forma EBITDA, despite facing inflationary pressures. The company's proactive cost management and focus on inventory reduction have contributed to positive cash flow from operating activities. The appointment of Mr. Kevin Boyle as the new Chief Executive Officer signals the company's commitment to continued growth and success. With a robust outlook and ongoing strategic appointments, Adrad Holdings remains well-positioned to capitalize on future opportunities and drive further value for its stakeholders.