ABN 37 008 670 102
Appendix 4D
Half year report for the six months ended 31 December 2024
Reporting period
Report for the half year ended 31 December 2024
Previous corresponding period is the financial year ended 30 June 2024 and the half year ended 31 December 2023
Results for announcement to the market | ||||
31 Dec 2024 | 31 Dec 2023 | Change | Change | |
$M | $M | $M | % | |
Revenue from ordinary operations | 184.7 | 185.7 | (1.0) | -0.5% |
Underlying EBITDA1 | 9.9 | 9.8 | 0.1 | 1.0% |
Net loss after tax from ordinary operations | (0.7) | (0.4) | (0.3) | -75.0% |
attributable to members | ||||
1. Underlying EBITDA is earnings before interest, tax, depreciation, amortisation and has been adjusted to exclude the impact of AASB 16 Leases and significant items. Underlying EBITDA is a non-IFRS measure and reflects how management measures performance of the Group.
Dividends
No dividends have been declared in relation to the half year ended 31 December 2024.
A final dividend of $4.4 million was paid during the period in relation to the financial year ended 30 June 2024.
Amount of dividend per security
Amount per | Franked amount | ||
per security at | |||
security | |||
30% tax | |||
Interim dividend | current year | Nil | Nil |
previous year | Nil | Nil | |
Final dividend | current year | 3.75 cents | 3.75 cents |
previous year | 3.5 cents | 3.5 cents |
The Company's Dividend Reinvestment Plan has been reinstated. | |
Net Tangible Assets Per Security | |
As at 31 December 2024 | 0.27 |
As at 31 December 2023 | 0.38 |
The financial information provided in Appendix 4D is based on the half year condensed consolidated financial report (attached).
The attached financial statements and Directors' declaration have been subject to an independent review.
31 DECEMBER 2024 HALF YEAR REPORT
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VALUES
AT COVENTRY GROUP, OUR VALUES ARE
SAFETY FIRST
We place the health, safety and wellbeing of our people first
DO THE RIGHT THING - FAIRNESS, INTEGRITY & RESPECT
We treat everyone equally, we operate with competence and we treat everyone with respect
WORK AS A TEAM
We work with strength and resilience together
BE THE BEST AT EVERYTHING WE DO
We strive to be better every day, finding new ways to grow our Company and each other
OUR PEOPLE we trust and empower our people
OUR CUSTOMERS we are dedicated to our customer's needs
OUR SUPPLIERS we work in partnership with our suppliers
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CONTENTS
Directors' Report | 4 |
Lead Auditor's Independence Declaration under S307C of the Corporations Act 2001 | 8 |
Condensed consolidated statement of profit or loss | 10 |
Condensed consolidated statement of comprehensive income | 11 |
Condensed consolidated statement of financial position | 12 |
Condensed consolidated statement of changes in equity | 14 |
Condensed consolidated statement of cash flows | 16 |
Notes to the condensed consolidated half year financial statements | 17 |
Directors' Declaration | 26 |
Independent Auditor's Review Report | 27 |
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DIRECTORS' REPORT
The Directors present their report on the Consolidated entity consisting of Coventry Group Ltd and controlled entities at the end of, or during, the half year ended 31 December 2024.
Throughout the report, the Consolidated entity is referred to as the Group.
Our vision at Coventry is to be a leading industrial supply and services group in Australia and New Zealand.
DIRECTORS
The Directors of the Company at any time during the half year ended 31 December 2024 and up to the date of this report are:
Neil George Cathie, Chairman
Robert James Bulluss, Managing Director and Chief Executive Officer
James Scott Charles Todd
Anthony John Howarth
Alexander James White
Rob Martino
Daniel Palumbo
REVIEW OF OPERATIONS
Group had Sales for H1 FY25 down -0.0% to $185.2m ($185.3m H1 FY24). Group underlying EBITDA¹ up +0.8% to $9.9m ($9.8m H1 FY24). Group underlying EBIT² of $7.8m ($7.8m H1 FY24). Statutory net loss for the half of $0.7m (-$0.4m H1 FY24). NPAT impacted by $5.2m of costs relating to the ERP project.
At 31 December 2024, the Group has Net Assets of $140.8m, Current Assets exceeding Current Liabilities by $31.5m and Net Tangible Assets of $32.0m.
Note 1: All references to EBITDA are to Pre AASB16 before Significant Items
Note 2: All references to EBIT are before Significant Items
SALES AND UNDERLYING EBITDA1 GROWTH
Percentage sales and underlying EBITDA1 growth change for H1 FY25 when compared with the prior corresponding period is shown below:
Reportable segments
Fluid Systems (FS)
Trade Distribution (TD)
H1 FY25 vs H1 FY24 | H1 FY25 vs H1 FY24 |
% sales change | % underlying EBITDA1 change |
-5.4% | -23.0% |
+3.9% | +19.0% |
Consolidated Group | -0.0% | +0.8% |
Note 1: Underlying EBITDA excludes the impact of AASB 16 Leases and significant items.
Fluid Systems (FS) sales for the half year of $73.3m down -5.4% on the prior year. FS EBITDA¹ down -23.0% to $7.2m compared to $9.4m in H1 FY24. Trade Distribution (TD) sales for the half year of $111.9m up 3.9% on the prior year. TD EBITDA¹ up +19.0% to $10.1m compared to $8.5m in H1 FY24.
ERP UPGRADE PROJECT
The ERP upgrade has been successfully completed, with all business units in scope, Fluid Systems (FS), Konnect Australia (KA), Konnect New Zealand (KNZ) and Finance, operating successfully on the system.
The ERP upgrade has been completed broadly to plan, schedule and budget. We do not expect any further material costs in relation to the project in 2025.
The Microsoft D365 ERP system utilises the latest technology and will deliver significant customer service and productivity improvements. Whilst customer service and productivity benefits are already evident, we expect to realise the full benefits during calendar year 2025.
NET DEBT POSITION
Net debt at 31 December 2024 of $52.9m (Net debt at 30 June 2024 of $47.3m). This was higher than planned but was impacted by some larger customer payments ($2.3m) which were not received at the end of the half as expected, but were collected in January 2025, and the balance of the ERP project costs ($5.2m).
BALANCE SHEET
At 31 December 2024, the Group has Net Assets of $140.8m, Current Assets exceeding Current Liabilities by $31.5m and Net Tangible Assets of $32.0m.
DIVIDENDS
The Board has determined that no interim dividend be declared.
OUTLOOK
Demand remains positive in the mining and resources sector in Western Australia and Queensland. There is some short-term softening in the other Australian states. Economic conditions remain challenging in the short term in New Zealand.
The Group operates in multi-billion-dollar fragmented markets and has very modest market shares. With its latest technology ERP platform now fully operational, the number one priority for the Group is profitable sales growth. In order to achieve this, our plans are geared to increasing market share via new branch openings, branch refurbishments, business development, product range expansion and additional targeted marketing.
LEAD AUDITOR'S INDEPENDENCE DECLARATION
The lead auditor's independence declaration is set out on page 8 and forms part of the directors' report for the six months ended 31 December 2024.
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ROUNDING OF AMOUNTS
The Company is of a kind referred to in the ASIC Corporations (Rounding in Financial/Directors' Report) Instrument 2016/191 and in accordance with that instrument, amount in the condensed consolidated half year financial statements and directors' report have been rounded off to the nearest thousand dollars, unless otherwise stated.
This report is made in accordance with a resolution of Directors.
N.G. Cathie | R.J. Bulluss |
Chairman | Chief Executive Officer and Managing Director |
Melbourne | Melbourne |
18 February 2025 | 18 February 2025 |
KPMG
LEAD AUDITOR'S INDEPENDENCE DECLARATION
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