PARKD’s Narrowing Losses Mask Going Concern Risks Ahead

Robust Revenue Growth Amid Operational Milestones

PARKD Limited has delivered a significant financial turnaround for the year ended 30 June 2025, with revenues soaring 218% to $11.83 million. This surge is largely attributed to the successful execution of two major construction projects – the completed John Hughes Forward Street multi-level car park and the near-final stages of the Audi Centre Myaree dealership. These projects have showcased the practical application and benefits of PARKD’s patented modular car park system, including its metal decking support system (MDSS®) and metal decking support bracket (MDSB®).

Narrowing Losses and Improved Financial Position

Despite still reporting a net loss of $76,132, PARKD has reduced its loss by 74% compared to the previous year’s $294,117 deficit. The company’s cash position improved modestly to nearly $675,000, and net assets increased slightly to $14,576. These figures reflect operational efficiencies gained from the construction activities and a disciplined approach to managing costs.

Strategic Licensing and Supply Agreements

A key highlight for PARKD this year was securing a five-year licensing agreement with Fielders Steel, a division of BlueScope Steel Limited, for its MDSS® and MDSB® technologies. This partnership not only validates PARKD’s innovative modular construction solutions but also integrates its products into Fielders’ established SlimDek 210® steel decking range, enhancing market reach and credibility.

Complementing this, PARKD inked a national supply agreement with Delta Corporation, a leading precast supplier in Western Australia. This alliance aims to streamline supply chain efficiencies and support the company’s ambition to scale its modular solutions across Australia’s diverse construction sectors, including emerging markets like data centres and self-storage facilities.

Innovation and Market Expansion

Beyond project delivery, PARKD continues to invest in research and development, notably advancing its PARKD Instant Edge Protection System (PIEPS), a modular safety technology designed to enhance onsite safety and productivity. The company’s patented metal decking support bracket is progressing through patent applications both domestically and internationally, underscoring its commitment to protecting and commercialising its intellectual property.

With modular construction gaining traction for its efficiency and safety benefits, PARKD is positioning itself to capitalize on a growing pipeline of projects, particularly in sectors demanding rapid, scalable building solutions.

Governance and Leadership Stability

The company’s leadership team, including Managing Director Peter McUtchen and Non-executive Chairman Bronte Howson, remains focused on operational execution and strategic growth. The board’s remuneration policies continue to align management incentives with shareholder interests, with share options forming a key component of executive and director compensation.

While the financial statements were audited with an unmodified opinion, the auditor noted a material uncertainty regarding PARKD’s ability to continue as a going concern, reflecting the company’s modest net asset base and ongoing losses. The directors remain confident in their strategy to generate positive cash flows and secure additional funding if necessary.