Quarterly Activity Report and Appendix 4C
Quarter ended 30 June 2025 – Intelligent Monitoring Group Limited (“Intelligent Monitoring”, “IMG” or “the Company”) (ASX: IMB) is pleased to provide its Quarterly Market Activity Update.
Highlights
- Reported net operating cash flow of $17.0m for 4Q 2025
- First “clean” quarter post-debt refinance and acquisitions.
- Underlying operating cash flow for FY25 of $32.4m pre-refinancing, acquisition, and ADT/JCI transition costs
- Unaudited EBITDA for FY25 $38.6m – timing of several large service contracts outstanding and expected early in FY26. Between $38-40m guidance
- Unaudited underlying earnings growth of +8.2% for FY25
- $24.0m cash in bank plus $35m acquisition facility available
- IMG to prepare an on-market share buy-back capability
Financial Update
IMG is pleased to report an operating cash flow of $17.0m for 4Q FY25. This result confirms and validates the inherent cash flow strength of IMG.
Cash in the bank grew $11.1m in the quarter.
As expected, Q4 saw a strong step upward, driven by growth in underlying earnings and the cessation of non-recurring costs, including the earlier refinancing, ADT transition, and M&A-related costs and working capital drags.
Unaudited underlying full year EBITDA of $38.6m, whilst around the middle of the guidance range, was a little behind the company's target as some work under discussion and pending award took longer than expected to be realised. Whilst disappointing, the shortfall is primarily timing related, and this work contributes to a healthy and growing pipeline for FY26. The acquisition of DVL (Dec) and Kobe (March) contributed above expectations.
Underlying earnings growth on FY24 (i.e. before acquisitions and adjusted for prior period capitalisation policies) was 8.2%. The business run rate in Q4, combined with the pipeline in hand, anticipates a strong growth result in FY26.
The company will give further FY26 guidance at its AGM in late October.
The underlying operating cash flow for the year was $32.4m, reflecting a year of investment in new service lines (and related products) and working capital, as DVL and Kobe were acquired and integrated into the IMG fold.
Outside of further inventory or growth investments, EBITDA and operating cash flow are expected to converge closer to each other during FY26.
Investing cashflow for the quarter was $4.0m with the majority (75%) relating to the NZ 4G telephony upgrade program (which was at its peak level during the half and is expected to tail off over the next six months). Other capital expenditures were less than $1m including project-related IT costs of $0.5m.
In light of the strong and reliable cash flows and growing cash balance, the IMG board has determined to put in place the mechanics for an on-market share buyback, with Morgans Financial to be appointed as manager. It will assess the use of this facility against all other capital allocation options over coming periods to maximise shareholder returns and value creation.
Operational and Management Comment
The business remained highly productive during the fourth quarter.
During Q4:
IMG refined its go-to-market strategy in Australia to ADT: Direct, Signature: Industry Partnerships, and IMS: Bureau/Wholesale provider of monitoring services.
Combined its service and installation tech base in Australia under a program #techsunite. Creating one of, if not the biggest, groupings of security technicians across Australia and NZ.
Created a new internal service and operational model in Australia around shared HR, IT, Monitoring, and operations, employing new leaders in HR and Procurement, in particular.
Completed the successful introduction of ADT Guard across the Australian and NZ ADT business. The group has assisted the police in apprehending over 30 criminals in the act, due to this new, highly effective service. It is now protecting over 300 sites around Australia.
We are also immensely proud to announce that, after three years of hard work and platform investment and integration, IMG subsidiary Intelligent Monitoring Solutions (IMS) has achieved an ASIAL certified A1/R1A redundant grading in both its IMS control rooms.
With instantaneous backup in case one room fails, IMS is at the top of the industry and in a position that few will be able to match. This provides a critical advantage to all IMS security partners, and we will seek to utilise this further with the launch of the Signature Security partner program for select partners in August.
IMG has had a remarkable 2025 financial year. With a refinanced balance sheet, positive operational cash flow, clear target markets, and a strong competitive position, IMG is now well positioned to grow and generate increasing returns for shareholders in FY26 and beyond.
We look forward to providing further details at the full-year results release and presentation, scheduled for 26 August 2025.
For more information please visit: https://intelligentmonitoringgroup.com