Intelligent Monitoring Group Limited (IMG) has reaffirmed its FY25 EBITDA guidance above $38 million, completed the strategic Kobe acquisition, and reported a solid operating cash flow of $6.7 million pre-non-recurring items in Q3 FY25.
- Operating cash flow pre-non-recurring items of $6.7 million in Q3 FY25
- Completion of Kobe acquisition and positive contributions from DVL and Kobe
- Debt refinancing completed with $17.2 million cash on hand and $30 million acquisition facility
- Reaffirmed FY25 EBITDA guidance above $38 million pre-acquisitions and $40 million post-acquisitions
- Strong Q4 revenue and profitability growth expected, supported by operational streamlining and technology investments
Steady Financial Performance Amid Strategic Moves
Intelligent Monitoring Group Limited (ASX: IMB) has delivered a steady third quarter for FY25, maintaining revenue and EBITDA in line with expectations despite seasonal headwinds in January. The company reported an operating cash flow of $6.7 million before non-recurring items, underscoring a resilient core business performance.
Significantly, IMG completed the acquisition of Kobe in March 2025, adding to its portfolio alongside the earlier DVL acquisition in December 2024. Both acquisitions have contributed positively to the quarter’s results, with Kobe integrating smoothly and validating IMG’s strategy of growth through targeted acquisitions.
Balance Sheet Strengthened by Debt Refinancing
During the quarter, IMG undertook a major refinancing of its debt facilities with National Australia Bank, incurring non-recurring charges totaling $13.5 million, including fees and interest. Despite these one-off costs, the refinancing has positioned the company with a stronger balance sheet, featuring $17.2 million in cash as of late April and access to a $30 million acquisition facility. This financial flexibility supports IMG’s ambitions for further growth and acquisition opportunities.
Operational Efficiencies and Growth Outlook
IMG has focused considerable effort on streamlining its Australian operations, targeting central functions such as Finance, HR, Payroll, Procurement, and IT. These initiatives are expected to enhance productivity and accelerate growth into FY26. The company also highlighted strong momentum in customer wins and contract renewals, setting a positive tone for the upcoming quarter.
Looking ahead, IMG reaffirmed its FY25 earnings guidance, targeting underlying EBITDA exceeding $38 million before acquisitions and surpassing $40 million post-acquisitions. The company anticipates a robust Q4 with strong revenue and profitability growth, driven by an expanding pipeline and operational improvements.
Technology Validation Through Law Enforcement Success
Beyond financial metrics, IMG’s video guarding and verification technology has demonstrated tangible impact, with police engagement leading to the apprehension of twelve individuals on-site during 2025. This operational success validates IMG’s multi-year investment in technology and reinforces its competitive positioning in the security technology sector.
With a refinanced balance sheet, positive underlying cash flows, and a clear strategic focus, Intelligent Monitoring Group is well placed to capitalize on market opportunities and deliver increasing shareholder value in FY26 and beyond.
Bottom Line?
IMG’s strategic acquisitions and refinancing set the stage for accelerated growth, but integration and execution will be key to sustaining momentum.
Questions in the middle?
- How will IMG integrate Kobe and DVL acquisitions operationally to maximize synergies?
- What specific contracts or customer wins are expected to drive Q4 revenue growth?
- How sustainable are the underlying cash flows once non-recurring refinancing costs are excluded?