AVADA Reports 317% Jump in Net Operating Cash Flow for Q3 FY25
AVADA Group Limited reported a strong quarter with positive operating cash flows and significant debt reduction, while initiating a strategic review of its New Zealand operations amid challenging market conditions.
- 26.5% increase in cash receipts for Q3 FY25
- 317.1% surge in net operating cash flow compared to prior quarter
- Ongoing strategic review and cost-saving initiatives in New Zealand
- Debt repayment of $3.4 million during the quarter
- Completion of first phase of finance system consolidation
Strong Quarterly Cash Flow Performance
AVADA Group Limited (ASX – AVD), a leading traffic management operator across Australia and New Zealand, has delivered a robust financial performance for the quarter ended 30 June 2025. The company reported a 26.5% increase in cash receipts and a remarkable 317.1% rise in net operating cash flow compared to the previous quarter, reflecting strong trading activity and improved operational efficiencies.
Operating cash expenditures also rose by 13.1%, driven by the company’s expanding commercial operations. Despite higher spending, AVADA managed to maintain positive cash flow, underscoring effective cost management and revenue growth.
Strategic Review and Cost Controls in New Zealand
AVADA’s New Zealand operations continue to face economic pressures, prompting the company to undertake a strategic review aimed at enhancing profitability and sustainability. A recent management restructure has already reduced overhead costs, and further cost-saving measures are planned for fiscal year 2026. The Board is scheduled to receive a comprehensive update on the full-year performance and strategic direction in August 2025.
Systems Consolidation and Debt Reduction
The Group is progressing with its systems consolidation strategy, having completed the first phase of a new finance system implementation. This initiative is expected to drive further operational efficiencies and productivity gains in the coming year.
In line with its deleveraging strategy, AVADA repaid $3.4 million in debt during the quarter, reducing financial risk and strengthening its balance sheet. The company also maintains unused financing facilities of $10.2 million, providing liquidity flexibility.
Governance and Related Party Payments
Payments to related parties, including directors’ fees, salaries, and superannuation, amounted to $258,000 for the quarter, reflecting standard governance disclosures. CEO Donald Montgomery affirmed the company’s commitment to transparency and operational discipline.
Overall, AVADA’s quarterly results demonstrate resilience and strategic focus amid challenging market conditions, particularly in New Zealand, while positioning the company for continued growth and efficiency improvements.
Bottom Line?
AVADA’s next steps in New Zealand and ongoing efficiency drives will be critical to sustaining momentum into FY26.
Questions in the middle?
- What specific outcomes will the August board update reveal about the New Zealand strategic review?
- How will the new finance system impact AVADA’s operational costs and productivity long term?
- What are the company’s plans for further debt reduction or capital management beyond the recent $3.4 million repayment?
