Dear fellow Shareholders,
It brings me great pleasure to present your Annual Report, which showcases a period of remarkable achievements and a Group performance that exceeded our stated target of transitioning to adjusted EBITDA positive during the year – in fact we were adjusted EBITDA positive for the full financial year. FY23 was the first full financial year in my tenure, free of major corporate events, that gave us a clear runway to focus on the business and build some serious momentum. We look ahead to FY24 with optimism as we maintain a sustained profitable outlook, with over 85% recurring revenue – a testament to the strength of our business.
Envirosuite continues to solidify its position as a global market leader in environmental intelligence. While we may not have coined the phrase “environmental intelligence,” it is at the heart of everything we do. We firmly believe that it is key to the well-being of people and the planet, which drives and guides our incredible team of elite professionals as we serve our diverse portfolio of global customers, positively impacting the lives of hundreds of millions of people every year through the application of environmental intelligence.
Environmental intelligence entails the ability to collect, analyse, and comprehend data related to the natural environment and industrial activities within that environment. With our networks of sensors, software applications, data analytics, and decision-making processes, our clients address environmental challenges, enhance sustainability, improve community relations, meet compliance obligations, and optimise operational productivity. Our solutions are fundamental to our customer’s core business, as many cannot or simply will not operate without them due to regulatory requirements, environmental and community risk management, or productivity demands.
Our business comprises three core product groups, each at a different stage of its business cycle. EVS Aviation, which dates back to the 1990s, has set the industry standard for airport noise and operations management and remains the industry gold standard. Without Envirosuite, our major airport customers cannot operate. We track thousands of flights daily, providing critical environmental and operational impact insights. With long-term contracts and a market- leading position, we anticipate significant growth potential in aviation, especially as airports seek to address new challenges including climate impact while delivering better community outcomes following the pause in investment during the COVID years and the evolving community expectations.
EVS Industrial, our expansion stage solution, boasts a diverse client base, ranging from mining to Formula 1 racing, waste management to manufacturing. As our original Envirosuite business, it has grown and evolved year after year, gaining critical mass in many regions and industries. Our largest historical competitor of “do nothing” is rapidly fading in the face of evolving regulatory requirements and community expectations, while customer productivity demands only increase. Our record growth in EVS Industrial and the diversity of opportunities across various industries and global regions are a testament to the tremendous size of the addressable market.
EVS Water holds the promise of being the jewel in our product portfolio crown in the future. EVS Water has specific offerings to water treatment plant designers, operators and distributors to optimise their three most important elements: productivity, resource use and asset life. In its infancy, it has been slower than we would have liked as we bring the revolutionary technology to life as a product suite and then seek to attract large water utilities and associated groups to take it on. However, we have been surely treading the necessary steps to achieve industry acceptance and adoption, with major groups now signed on in Australia, North America, Europe and the Middle East. A testimony to the potential of EVS Water is the talent and credentials of the people and groups it continues to attract who want to join us directly or work in partnership.
I am proud to report that the Company has not just achieved its stated target of transitioning to adjusted EBITDA positive for the financial year, we have achieved an ever better result in being adjusted EBITDA positive for the full financial year. The Company’s disciplined financial management and cost restructuring program during the year leave investors with an insightful view of our operational position in addition to the statutory accounts. Furthermore, the Company has also achieved positive statutory operating cash flow for FY23, signifying the positive direction of the business as we move into FY24.
In June, I announced my intention to step down as Chair in FY24, subject to a suitable successor joining the board. After six years and a significant shareholding that I have acquired along the way, I want to ensure and demonstrate that the board is open to receiving and appointing the best people it can to guide us into the future. We are actively assessing candidates with impeccable industry and board credentials, and we hope to make an announcement ahead of the Company’s Annual General Meeting in November.
I extend my heartfelt gratitude to our incredible team of Environauts across the globe who continue to work tirelessly, breathing life into our vision and mission. We have over ten different first languages spoken across our team, which gives us the commercial reach and cultural insight to address local issues in every corner of the globe.
Our Company’s strength and future rest in our team’s capable hands, and I have unwavering faith in their ability to achieve our objectives.
To all our shareholders, I extend my sincerest thanks. This is undeniably the most exciting time in Envirosuite’s history and your continued support and interest in the company are both welcomed and highly valued.
Access our FY23 Annual Report
Click here to access our FY23 Annual Report on the ASX.