PARKD’s Rising Losses Highlight Risks in National Expansion Strategy
PARKD Limited reported a 37% revenue decline to $3.88 million for H1 FY2026, driven by the winding down of its flagship Audi Centre Myaree project. The company posted a $1.03 million loss as it invests in East Coast growth and commissions a new prefabrication facility in Penrith, NSW.
- Revenue down 37% to $3.88 million due to project completion
- Loss before tax widened to $1.03 million from $82,000 prior year
- East Coast expansion underway with Penrith prefabrication facility operational
- Exclusive national prefabrication license secured with Fielders (BlueScope Steel)
- Raised $1 million via placement and share purchase plan to fund growth
Revenue Decline Reflects Project Wind-Down
PARKD Limited’s half-year results for the period ending 31 December 2025 reveal a significant 37% drop in revenue to $3.88 million, primarily attributed to the nearing completion of the Audi Centre Myaree dealership construction project in Western Australia. This project, which had been a major revenue driver, is now in its final stages, naturally reducing construction-related income.
Losses Increase Amid Strategic Investments
The group recorded a loss before tax of $1.03 million, a substantial increase from the prior period’s $82,252 loss. This widening loss reflects lower construction activity volumes and the costs associated with commissioning the new Penrith prefabrication facility in New South Wales, part of PARKD’s strategic East Coast expansion. The gross margin turned negative, underscoring the transitional phase the company is navigating.
East Coast Expansion and Operational Milestones
Despite the financial setbacks, PARKD has made significant strides in establishing a national footprint. The company secured an exclusive prefabrication license agreement with Fielders, a division of BlueScope Steel, positioning PARKD as the sole provider of prefabricated SlimDek210® and MDSB® modules across Australia. This partnership supports an asset-light rollout strategy, leveraging Fielders’ manufacturing scale and distribution network.
In addition, PARKD commissioned its first East Coast prefabrication facility in Penrith, NSW, with an annual production capacity of approximately 65,000 square metres of modules. The facility became operational in Q2, with initial modules successfully prefabricated and delivered, validating the company’s supply chain and operational capabilities on the East Coast.
Pilot Projects and Growing Technical Advisory Work
The company also completed its first East Coast pilot project with McNab Group, demonstrating the effectiveness of its modular construction system and safety innovations. Meanwhile, technical advisory and design services have expanded, including engagements with high-profile clients such as Sydney Airport, contributing to a growing pipeline of future projects.
Financial Position and Outlook
PARKD’s cash position improved slightly to $799,106, supported by a $1 million capital raise through a placement and share purchase plan. The funds have been allocated towards the Penrith facility fit-out, working capital, and project mobilisation. The directors remain confident in the company’s ability to continue as a going concern, citing ongoing contracts, a positive cash flow forecast, and the capacity to manage costs or raise additional capital if necessary.
However, the company faces challenges, including negative gross margins and net current liabilities, reflecting the costs of scaling operations and transitioning markets. The anticipated Research and Development tax rebate, still under assessment, may provide some financial relief in the second half of the fiscal year.
Bottom Line?
PARKD’s transition from project completion to national expansion is costly but lays groundwork for future growth, investors will watch closely for contract wins and margin improvements.
Questions in the middle?
- How quickly will revenue from East Coast operations ramp up to offset declining project income?
- What impact will the pending R&D tax rebate have on the company’s financial health?
- Can PARKD sustain its cash flow and secure additional funding if needed to support expansion?
