ASX Small Cap News 17 February 2025

Results season is in full swing on the ASX as we enter the second half of February. We detail some of the most interesting results that were released from small caps on the ASX.

Audinate Group Limited (AD8)

Market Cap: $799.3m

Share price gain: +26.5%

Audinate’s result handsomely beat expectations of the market despite challenges arising from OEM inventory overstocking. For first half 2025 period, Audinate reported a gross profit of US$16 million, a 29% decrease compared to the same period last year, largely due to reduced demand for hardware products. However, the company saw an improvement gross profit margin from 72% to 82%, driven by a shift towards higher-margin software solutions. The CEO, Aidan Williams, expressed confidence in the company’s business model and ongoing investments in both audio and emerging video software markets. Key metrics showed 61 design wins during the period, a 15% increase from the previous year, and software revenue grew by 13%. The outlook remains cautiously optimistic, expecting a return to more typical order patterns by FY26 as inventory levels normalize.

Neurizon Therapeutics Limted (NUZ)

Market cap: $78 million

Share price movements: +23.1%

Neurizon Therapeutics Limited has received guidance from the US FDA regarding its Investigational New Drug (IND) application for NUZ-001, a potential treatment for Amyotrophic Lateral Sclerosis (ALS). The FDA has placed the application under clinical hold but has requested only one additional piece of information: further animal exposure data. This request aims to assess the adequacy of systemic exposure to NUZ-001 during previous studies. Importantly, the FDA has not raised any safety concerns regarding past clinical studies involving NUZ-001. Neurizon is currently evaluating the impact of this request on its planned clinical trial timeline while expressing confidence in its ability to meet the FDA’s requirements. The company is committed to advancing NUZ-001 for ALS and exploring its potential applications for other neurodegenerative diseases.

NUZ also released its half yearly result for 2025, with a loss widening significantly, but as a pre-revenue pharmaceutical company, the market was more concerned about the progress of the FDA application.

Findi Limited (FND)

Market cap: $249.0 million

Share price movement: 10.8%

Findi announced significant developments including the acquisition of an additional 2,293 ATMs from the State Bank of India (SBI), the appointment of Rothschild & Co for an upcoming Indian IPO in 2026, and a revision to its FY25 revenue guidance. The new ATM agreement with SBI is expected to generate substantial revenue and EBITDA over a ten-year period, funded by the company’s free cash flow and new bank facilities. However, the company has adjusted its revenue expectations due to delays in obtaining a White Label ATM license, resulting in a revised revenue guidance of $68-70 million for FY25, down from the previous $80-90 million estimate. Despite this, Findi maintains a positive outlook on its operational performance and strategic initiatives, anticipating strong contributions from both organic growth and acquisitions.

Fiducian Group Ltd (FID)

Market cap: $316.4 million

Share price movement: +9.8%

Fiducian’s half-year 2025 result showed significant growth in platform administration and funds management, resulting in strong group financial performance. The report details impressive net inflows, increases in funds under management, administration, and advice (FUMAA), alongside advancements in technology and enhancements to service offerings. The presentation emphasizes the company’s strategic approach to financial planning, its competitive positioning against disruptor platforms, and the ongoing commitment to innovation and client service. Key financial metrics reveal a solid dividend payout policy, consistent revenue growth, and a focus on staff development to support business expansion. Overall, the results reflect the company’s robust operational performance and commitment to delivering value to clients and stakeholders.

Sprintex Limited (SIX)

Market cap: $33.3 million

Share price movement: +9.3%

Sprintex Limited, an Australian clean air compressor engineering company, has made significant strides in its collaboration with Mest Water, a leading European environmental technology firm. The commissioning of the Sprintex-Mest compressor system has been completed successfully, resulting in a substantial first large-scale purchase order from Mest Water for 200 compressor units, valued at €3.8 million (A$6.3 million). This marks a pivotal moment for Sprintex, as it opens the door to a considerable revenue stream and validates the company’s innovative technology aimed at reducing ammonia emissions in agriculture. The production of these units is set to commence at Mest Water’s new manufacturing facility in the Netherlands, with an initial output of 30 units per month and expectations for significant increases thereafter. The partnership is positioned not only to address stringent EU regulations concerning ammonia emissions but also to enhance Sprintex’s market presence across various industries where their compressor technology can be applied.

Kina Securities Limited (KSL)

Market cap: $336.9 million 

Share price movement: +1.7% 

Kina Securities has provided an update on its expected financial performance for the year 2024, projecting a net profit after tax (NPAT) between PGK 109.5 million and PGK 111.2 million. This guidance accounts for a financial hit of PGK 12.0 million to PGK 15.0 million due to a customer fraud incident announced earlier in June 2024. Additionally, a recent adjustment in the PNG tax rate for smaller banks—decreasing from 45% in 2024 to 40% in 2025 and 35% in 2026—has led to a reduction in the carrying value of deferred tax assets by PGK 9.4 million. Consequently, this adjustment will result in a non-cash charge that reduces the company’s statutory profit for 2024 to between PGK 100.0 million and PGK 102.0 million, pending final audit confirmation.

Smark Parking Limited (SPZ)

Market cap: $338.8 million

Share price movement: trading halt 

Smart Parking Limited has announced a significant expansion into the United States through the acquisition of Peak Parking, a boutique parking operator that manages 134 locations across six states. The acquisition, valued at up to US$36 million, involves an upfront payment of USD $32 million and an earnout contingent on Peak Parking achieving specific EBITDA targets. This strategic move is expected to enhance Smart Parking’s earnings per share (EPS) by over 25% in FY25 and offers potential for revenue and margin growth through the implementation of Smart Parking’s proprietary technology. The acquisition will be funded through a fully underwritten equity raising of approximately A$45 million and an expanded debt facility. The integration of Peak Parking is anticipated to accelerate growth in the US parking market, leveraging Smart Parking’s advanced technology and experience in the sector.

Smart Parking also released their half year 2025 result, reporting 20% growth in revenue to $31.9m and adjusted EBITDA up 12% to $8.4m.

AMA Group Limited (AMA)

Market Cap: $253.5 million

Share price movement: flat

AMA Group has successfully secured binding credit commitments amounting to $110 million from two major Australian banks for a three-year term. This new debt facility will replace the existing $97.5 million debt, which is set to expire on December 31, 2025, and will provide necessary funding for the company’s operational and growth initiatives. The facility comprises $80 million in revolving working capital and $30 million in bank guarantee lines, with improved terms that include a reduced cost of funds and a flexible covenant structure. Group CEO Mathew Cooper emphasized the significance of this recapitalization in enabling AMA to pursue growth opportunities in the collision repair sector, reflecting the confidence of the banking syndicate in AMA’s future prospects.

Simonds Group (SIO)

Market cap: $68.4 million

Share price movement: flat

Simonds Group released its financial results for the first half of the fiscal year 2025, covering the period ending December 31, 2024. The report highlighted an Earnings Before Tax Depreciation and Amortisation (EBITDA) of $13.6 million and a net profit after tax (NPAT) of $1.9 million. Despite facing a challenging trading environment characterized by decreased demand and reduced site starts in Victoria’s residential market, the company managed to improve its NPAT from continuing operations. This performance was attributed to higher site start values and improved margins. Additionally, the company announced plans to acquire Dennis Family Homes Pty Ltd, which is expected to enhance long-term profitability.

Adore Beauty (ABY)

Market cap: $78.5m

Share price movement: flat

Adore Beauty released its financial results for the first half 2025 period, demonstrating significant growth and a successful strategy refresh. The company’s reported EBITDA surged by 98%, reaching $4.7 million, while its revenue increased by 2.3% to $103.0 million. Notably, Adore Beauty achieved a record gross margin of 36.2%, reflecting its focus on enhancing the quality of earnings and maintaining disciplined cost management. The company has also completed the initial integration of iKOU and is well-positioned for growth with a robust cash balance of $11.7 million and no debt. CEO Sacha Laing expressed optimism about the company’s brand strength and upcoming retail expansion, aiming to establish a national store network and continue growing its online presence. The strategic initiatives are designed to achieve a 30% revenue growth target and double EBIT margins over the next three years.