Smart Parking Limited reports strong financial performance in H1 FY24

Smart Parking Limited (ASX: $SPZ) has reported a 44% increase in Adjusted EBITDA in the first half of the financial year 2024. The company's revenue for the half-year ended 31 December 2023 was up 21% to $26.7m compared to the same period in 2022. The Group's net profit after income tax increased by 20% to $2.3m for the half-year ended 31 December 2023. Smart Parking Limited operates three divisions: Parking Management, Technology, and Research and Development.

Executive Commentary on Financial Performance and Business Operations

The excellent results from the underlying business reflect the increased sites under management in various countries. The Group's Adjusted EBITDA is $7.6m after non-recurring/non-operating items, an increase from the prior period of 44%. The Parking Management division's revenue of $25.0m was up 25% due to the increased sites under management. The Technology Division's Adjusted EBITDA profit was a pleasing $2.1m, an improvement of 155% from the previous period. The company spent $2.0m on capital expenditure which will drive revenue and earnings growth in future periods. The UK Coronavirus Business Interruption Loan is due to be fully repaid in September 2024. The Group acquired 100% of the issued shares in ParkInnovation GmbH, an unlisted company based in Germany for cash consideration of $2.0m.

Summary of Financial Results and Future Outlook

Smart Parking Limited has demonstrated strong financial performance in the first half of the financial year 2024, with a significant increase in Adjusted EBITDA and revenue growth. The company's expansion of parking management businesses in various countries has contributed to the positive results. The Group's focus on higher margin products and growing the Parking Management division has led to improved profitability. With a strong balance sheet, the company is well positioned to take advantage of further acquisition opportunities and explore new territories suitable for its technology and commercial model. Smart Parking Limited remains focused on its strategy of growing the installed number of group ANPR sites to 1,500 by 31 December 2024, which is expected to drive increased revenue and operating leverage, delivering earnings growth. The company has not paid or recommended any dividends since the commencement of the financial year.