IMEXHS Half-Year Revenue Holds at $13.7M; ARR Climbs 11%, Loss Widens

Financial Overview

IMEXHS Limited has released its half-year results for the period ending 30 June 2025, revealing a nuanced financial picture. The company reported revenue of $13.66 million, a marginal 0.9% decline compared to the previous corresponding period, but a 4% increase when excluding a prior period one-off sale. Despite this steady top-line performance, the group recorded a net loss after tax of $3 million, nearly double the $1.52 million loss from the prior year. This deterioration was largely attributable to a non-cash goodwill impairment charge of $1.75 million related to the Radiology cash generating unit.

Operational Highlights and Segment Performance

The company operates two complementary segments – a medical imaging software business and a radiology services business operating primarily in Colombia and Spain. Both segments demonstrated steady revenue growth, with software revenue increasing 11% on a constant currency basis and radiology services revenue up 1%. Annualised Recurring Revenue (ARR), a key metric for subscription-based businesses, rose 11% to $32.8 million, underscoring the strength of recurring contracts that accounted for 100% of revenue.

Operationally, IMEXHS advanced its Aquila+ software platform, securing new contracts and expanding its partner program to 25 partners across 15 countries. The radiology services unit focused on profitability improvements through disciplined cost control, contract repricing, and automation initiatives including AI-driven workflow optimizations. These efforts helped maintain underlying EBITDA at a positive $0.3 million, flat compared to the prior year when excluding impairment and other non-operating expenses.

Capital and Liquidity Position

To support ongoing growth and operational initiatives, IMEXHS completed a $2.6 million capital raise during the half-year, comprising institutional placements, directors’ placements, and a share purchase plan. At period end, the company held $2.5 million in cash against $1.3 million in debt, with net current assets of $4.38 million. Despite these positive liquidity indicators, the auditor’s report highlighted material uncertainty regarding the company’s ability to continue as a going concern, reflecting the challenges posed by losses and cash outflows.

Outlook and Strategic Focus

Looking ahead, IMEXHS projects full-year 2025 revenue between $27.5 million and $28.2 million, representing growth of 4% to 6.6% over the prior year. Underlying EBITDA is expected to improve to a range of $1.3 million to $1.6 million, up from $0.5 million in 2024. The company’s strategy centers on expanding its software sales pipeline, further cost optimisation, and leveraging AI-driven automation to enhance operational efficiency. However, currency fluctuations, particularly the weakening Colombian Peso against the Australian Dollar, remain a factor influencing reported results.

While the goodwill impairment signals caution, the board maintains confidence in the long-term prospects of the radiology business and the broader group. Continued execution on cost controls and revenue growth will be critical to restoring profitability and strengthening the balance sheet.