How Did IMG Boost Revenue 44% While Navigating a $17.5M Loss?

Strong Revenue Growth Amid Strategic Expansion

Intelligent Monitoring Group Limited (ASX – IMB) has unveiled its preliminary full-year results for FY25, showcasing a robust 44% increase in revenue to $174.9 million. This growth was underpinned by four strategic acquisitions, ACG Integration, Everjazz, Dataline Visual Link, and KOBE, which have significantly broadened IMG's commercial security capabilities and geographic reach across Australia and New Zealand.

Organic growth also contributed, with an 8% increase in underlying business activity. The company now operates through three focused business units – ADT Australia and New Zealand, Signature Security Group, and Intelligent Monitoring Solutions, each targeting distinct market segments from direct-to-market services to wholesale monitoring and industry partnerships.

Profitability and Cash Flow Dynamics

Adjusted EBITDA climbed to $38.4 million, comfortably within the guidance range of $38-40 million, reflecting improved operational performance and integration benefits from acquisitions. However, the group recorded a net loss after tax of $17.5 million, a significant increase from the prior year’s $3.1 million loss. This was primarily driven by elevated finance costs following increased borrowings, higher depreciation and amortisation expenses linked to acquired assets, and impairment charges, notably a $4.3 million goodwill impairment related to Signature Security Group.

Despite the net loss, IMG generated strong operating cash flow of $10.6 million, supported by a successful refinancing of its debt facility with National Australia Bank. The new NAB facility replaced a higher-cost debt package, effectively halving finance costs and providing greater financial flexibility to support future growth initiatives.

Strategic Acquisitions and Market Positioning

The acquisitions completed during FY25 have been pivotal in establishing IMG as Australasia's leading security services provider. Each acquisition brought specialized expertise and expanded IMG’s footprint, particularly in commercial and enterprise security sectors. The company’s recent purchase of KOBE, a Queensland-based advanced security systems supplier, exemplifies its strategy to deepen presence in key regional markets.

Looking ahead, IMG is investing heavily in next-generation AI-driven video monitoring solutions. These technologies enable proactive, real-time threat detection and intervention, positioning IMG at the forefront of transforming traditional alarm monitoring into a video-first security model. The company’s ability to apprehend criminals in the act, leveraging its advanced video systems, underscores the tangible benefits of this innovation.

Outlook and Future Prospects

With a strengthened balance sheet, a refined operating structure, and a clear strategic focus, IMG’s board and management express confidence in delivering material progress in FY26. The company aims to capitalize on the growing market opportunity driven by AI and video monitoring technologies, while continuing to integrate its acquisitions and optimize cash flow generation.

Shareholders can expect further updates on the company’s expansion plans, including the imminent acquisition of Western Advanced Pty Ltd, a specialist in surveillance and threat detection solutions in Western Australia’s Oil & Gas sector. This deal will further consolidate IMG’s leadership in the region.