Whilst I am not a big fan of the way IMG present their results (too many adjustments to present a more glowing result) when in fact they will report a statutory loss for the half year, I am prepared to stay the distance as we are ready to rumble, which I cautiously predict will be in FY26.

The good thing is they have the cash reserves to go the distance and with the refinancing to a Big 4 Bank very imminent (deal done, just the paperwork required), the interest rate will drop from an horrendous 15% back to commercial levels of around 7% to 9%.

We end the 1HFY25 with $26.2m in the bank (up by $14.9m on 1Q from the $23.7m raised as additional capital - which means we spent $8.8m investing in the biz- acquisitions & capital-raising costs). This should give us a clear runway to bed down the recent acquisitions. So, this is a good financial position to encourage organic growth, which appears to be very plentiful. 

The most encouraging ‘proof of concept’ mentioned in the report & as alluded to by Dennison in his presentation was the massive success of the video guarding & verification platform(s) in this current month (January). It detected 5 separate break-ins & with speedy info passed to the Police, arrests were made on the spot! This is unheard of in the old world of security.

Surely, this has got to be HUGE for future promotion…to the point where Dennison said they won’t push it right now because they will get swamped. He is still concentrating in putting the systems in place and that potential has no one else who can do it.

Given that monitoring is currently 65% of our revenue base, this can go nuts when we can handle the opportunity properly.  I like Dennison’s concluding comments <quote> “IMG is now positioned to disrupt the traditional security industry and looks forward to accelerating the rollout of these services during 2025.”

 For mine, this is validation of the business model and IMG are easily market leaders in Australia/NZ with a reasonable moat.