Camplify Holdings Limited

Good morning everyone and welcome to the Camplify Holdings FY25 results call. I'd like to pay our respects to the traditional owners and elders past and present. Camplify Holdings is a proud Newcastle original company built on the lands of the Awabakal people. I'm Justin Hales, CEO and founder of Camplify. Joining me today is Brett Edwards, our CFO. FY25 was a truly pivotal year for Camplify Holdings, marking a decisive strategic refocus to ensure future sustainable profitability. After facing challenges in the first half, we implemented a clear strategic focus on marketing spend efficiency, automation for reduced employee costs, and greater control over our insurance products. This has led to a significant improvement in the second half of FY25, demonstrating an enhanced operational efficiency and stabilised cost base. Our achievements in the second half are clear indicators of our strategic effectiveness. We have dramatically improved our marketing efficiency, reducing our spend from 27% of revenue in H1 to a highly efficient 9% in H2. We have also optimised our operational structure and reduced our employee costs, which decreased from 42% of revenue in H1 to 35%. in H2, a result of automation and centralised roles, with further reductions to be realised in 26. Furthermore, we successfully rolled out our new insurance mutual program, MyWay Mutual, in Australia and New Zealand. This program has already shown significant cost savings in the first two months and is poised to be a material improvement in gross profit margin for FY26 for member-related revenue. In the German market, we've seen a more predictable performance in market revenue during the second half of the year, with an uplift in take rate following rectified migration issues. These efforts include a group-wide cost reduction program that delivered $4.6 million in annualized cost savings, created a leaner operational model. Importantly to note, Paul Cooper, GTV and revenue grew in H2. Australian GTV grew in H2 despite reduction in the temporary accommodation program. New Zealand grew GTV and revenue across the whole year. We also focused on strengthening our leadership team and board, bringing new resources with significant experience across technology, marketing, finance and insurance. This has already been reflected in our H2 positive results. I'm particularly pleased to highlight that John Myler joins the board as a non-executive director. John's extensive experience as CEO of major insurance companies like Auto & General, ROCQ Insurance and Allianz Worldwide Partners is providing an instrumental guiding piece to Camplify towards becoming a member-led business. His expertise is valuable as we expand our member-led products globally. I'll now hand over to our CFO, Brett Edwards, to walk you through a detailed financial performance for FY25. Thanks, Brett.

Thanks, Justin. Morning, everybody. FY25 is indeed a period of strategic transition and consolidation. We have done some significant foundational work to unify the technology platform, streamline the cost base and launch the new products with the MyWay Mutual. Gross transaction value for the year was $139.5 million. It was a 15% decrease on the prior year's $165 million. This is mainly attributable to three areas. First, the TAP program in New South Wales came to a conclusion. We've wound down the older areas of that. That was about $11.3 million reduction in GTV. We also had the final phases of our poor camper integration and our planned exit from van sales that took place during the prior year. So for half year FY25-2, GTD did increase to 74 million. So we're up from 65 million in the prior year, sorry, the prior half year. One of the things to note is that Paul Camper actually saw growth of 6% in the second half on a prior comparison period basis and 10% up in revenue for the same period compared to last year. This growth and improvement has been achieved while we've been cutting the marketing spend and really due to the much better operational focus that we've had in the Paul Camper market for the second half. Total revenue for the year was $42 million. That's down compared to $47.8 million last year. For the first half, we had 20 million, but we've grown that to 22.1 for the second half. Our take rate's also been fairly steadily improving, up from 27.8% in the prior year to 28.82% in FY25, mainly driven by an increase in the accident excess reduction schemes. We've been boosting sales, particularly in the German market. We're pleased to report a quite substantial improvement in EBITDA in the second half of the year. We moved from an EBITDA loss of $6.8 million in the first half to only a $2.6 million EBITDA loss in the second half, a $3.7 million improvement. This clearly reflects the focus we've had on expenses, particularly marketing employment costs. We've seen significant reductions. Our gross profit margin also improved. It's up 61.8% in the second half compared to 58.5% in the first half. And the full year gross profit margin came in at 60.2%. The senior employee cost decreased from 42% of revenue in the first half to only 35% in the second half. And look, we expect the continued savings from there will bring us into around 30% revenue for FY26. Marketing spend was also dramatically reduced from the first half to the second half, down from 27% to 9%. We expect that to be stabilised. Our longer-term aim is around 12%. We've also had some one-off costs in the second half. We spent over half a million dollars in the final establishment of the MyWay Mutual, and we've took up some additional debt provisioning, up about a million dollars extra there. So for the full year, CHL recorded the net loss after tax of $15.8 million. That includes a one-off non-cash impairment of goodwill, which would total $6 million. We've taken that against the marketplace business, really addressing some of the issues we're seeing in the Netherlands and Austria, as well as the final transition of the Paul Camper platform. We're now completely on a global platform. It's important to note this adjustment didn't reflect in the cash number of the underlying operational progress. It is mainly just an accounting adjustment against goodwill. Cash and cash equivalents close a year at 8.4 million. That's providing sufficient liquidity as we come into the FY26 year operations. Market-wise, the total number of RVs on the platform grew by 5%, so we're up at 35,398. And the number of owners subscribing to our premium membership increased by 9% to 5,360. This is a key pillar for the future revenue and margin expansion, so we're pleased that we've Moving in the right direction and we've now got the MyWay protection product to particularly launch that into the next year. While new paying hirers did increase by 19% and bookings store 10% declined, leveraging our key platform, the global platform, should allow us to improve that metric as we go into FY26. Market-wise, most of GTV continues to be in the Australian market at 49.9%. Germany is now a strong second at 25.3% of the market. And New Zealand increased its share of the overall Camplify earnings to 15.6%. and our future bookings excluding tap at last week stood at 22.9 million that's about an eight percent increase over the prior comparative period so it's a strong pipeline indicator that the revenue growth is coming through so in summary with the poor care for market showing that improvement in performance on the second half and the future bookings showing improvement versus the prior comparative period and with that cost savings program pretty much already realized we're in a much stronger position than we were in the first half. So I'll hand back to Justin now to talk through the outlook and priorities for FY26.

Thanks Brett. Entering FY26, Kipfy Holdings is on a clear path to profitability with a stabilised cost base and significant upside potential for revenue growth in our core markets. Our focus for FY26 includes delivering profitability, achieving cost effective growth in core markets, generating positive cash flow, further rollout and cost reduction in the insurance program into the northern hemisphere, achieving an EBITDA-positive result for the four-year FY26. Our successful rollout of the MyWay Mutual in ANZ is a cornerstone of our strategy, dramatically improving gross profit margins for membership-related revenue. This captive-backed mutual allows us to centralise all risk and insurance assets under the MyWay entity structure and allows us to enable reinsurance to cap our market exposure. This strategic control library insurance product is a key advantage, providing better governance, improved margins, and the ability to offer a broader range of membership types, including personal use members. It allows us to create a retail member offering, enabling customers to start their journey with Camplify as a member first, with the full protection for their RV, allowing for the nurture funnel to the marketplace. This significantly reduces our owner customer acquisition costs through leveraging channel partnerships and provides a scalable model for other regions. It deepens our expertise. We deepen our expertise notably with John Myler joining our board as we run this transition into a member led business for the period. For FY25, the CHL closed the period with 5,360 paid members. Our operational framework is significantly improved compared to the first half. The decisive action taken in H2 includes strategic refocus on marketing efficiency and employee cost reduction. We've stabilised our cost base. CHL will undertake a full strategic review of all European markets with a focus on efficient operation and profitability for each market in 26. We'll continue to scale our program for MyWay membership model and maintain disciplined cost management, leveraging our investment in automation and AI for continuous operational efficiency. A technology improvement such as AI for ticket resolution, which now resolves over 90% of customer tickets in ANZ and a new search algorithm with increased customer conversion from traffic requests are fundamentally reducing manual tasks and customer acquisition costs. These combined with successful global implementation of CMS, CRM and finance systems will enable more efficient business in FY26. I'm also excited to share on the business to business front that CHL will begin the second phase of the temporary accommodation program with the New South Wales government. You may have seen our release earlier in the week in regards to this. New South Wales has restarted and expanded the recently completed TAP program to 26 newly affected LGAs with a program relaunching earlier this week. So we'll start to see that program being rolled out to those customers in those affected regions in the coming weeks and months. In summary, for the second half of FY25, CHL improved results in Port Camper, improved results in Australia, saw continued growth in New Zealand, delivered a significant cost-saving program across the business, providing a new leaner operational framework, delivered on the MyWay Mutual, allowing for member-first protection products to be implemented ANZ with a rollout plan for the Northern Hemisphere, improved our leadership team, improved our systems and cooperation platform, positioned the business well for FY26 and beyond, and now in the process of restarting the temporary accommodation program, which accounted for a significant amount of GTB and revenue in prior years. We remain committed to our plan and positive about the ability to deliver against these objectives, ensuring long-term profitability and sustainable growth. So now have a look at some of the questions coming through. Firstly, Brett, I guess just a question in regards to cash position and any change in cash receivables. If you can just give a little bit more colour on cash at the moment.