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Highlights:

  • Intelligent Monitoring reports AUD 17 million Q4 operating cash flow, ends FY25 with AUD 24 million cash
  • IMB FY25 unaudited EBITDA of AUD 38.6 million; underlying earnings up 8.2% year on year
  • IMB On-market share buy-back facility to be prepared; AUD 35 million acquisition facility remains available

ntelligent Monitoring Group Limited (ASX:IMB) has released its quarterly market activity update, reporting an operating cash flow of AUD 17.0 million for the fourth quarter of FY25. The update marks the company’s first quarter following the completion of refinancing and recent acquisitions, providing a clearer view of ongoing business performance. For the full year FY25, unaudited underlying EBITDA was AUD 38.6 million, which falls within the previously provided guidance range of AUD 38–40 million. The result reflects the timing impact of several large service contracts that are now expected to contribute in early FY26. Underlying earnings grew by 8.2% compared to the prior year, adjusted for acquisitions and capitalisation policies.

Operating cash flow for the full financial year stood at AUD 32.4 million, excluding costs associated with refinancing, acquisitions, and the transition of operations from ADT and JCI. The company closed the period with AUD 24.0 million in cash, supplemented by an undrawn AUD 35 million acquisition facility. Cash in the bank increased by AUD 11.1 million during the quarter. In light of consistent cash generation, Intelligent Monitoring’s board has initiated preparations for an on-market share buy-back. Morgans Financial has been appointed to manage the facility. The board will assess its use relative to other capital allocation options as part of its long-term approach to value creation.

Capital expenditure during the quarter totalled AUD 4.0 million, with approximately 75% attributed to the peak of the company’s 4G telephony upgrade in New Zealand. Other spending included IT investments of less than AUD 0.5 million. IMG noted that the Q4 performance benefitted from improved earnings momentum and a reduction in non-recurring expenses tied to refinancing, integration, and acquisition activity. Recent acquisitions, including DVL (completed in December) and Kobe (March), contributed more than initially anticipated.

The company refined its market approach under three strategic channels:

  • ADT Direct for direct customer services
  • Signature  for industry partnerships
  • IMS (Intelligent Monitoring Solutions)  as a wholesale provider of monitoring services

A key operational initiative during the quarter was the unification of the service and installation technician base across Australia under the "#techsunite" program. This created one of the largest networks of security technicians in the Australia–New Zealand region. Additionally, IMG launched ADT Guard, a real-time site monitoring and response service now covering over 300 locations. The system, credited with assisting law enforcement in over 30 arrests during criminal incidents, is now integrated across the Australian and New Zealand ADT business units.

IMG subsidiary Intelligent Monitoring Solutions (IMS) received ASIAL certification for A1/R1A redundant grading for both of its control rooms. This certification allows for automatic operational continuity between control centres in the event of disruption at one site. Few providers in the industry have this level of redundancy, giving IMS a differentiating factor in servicing security partners. The company plans to build on this advantage with the upcoming launch of its Signature Security partner program, expected in August. This initiative will target selective collaboration with industry partners supported by IMS infrastructure.

Looking ahead, IMG anticipates that operating cash flow and EBITDA will converge more closely in FY26 as transition-related and one-off costs decline. The company has signalled continued investment in new service lines and targeted growth via acquisitions and partnerships. Further FY26 guidance is expected to be provided at the company’s Annual General Meeting in late October. In the meantime, the full-year results for FY25 are scheduled for release on 26 August 2025.

IMB trading at 28.87% higher at AUD 0.62 per share as on 25 july 2025.