Camplify Holdings Limited

12 months ago, we told the market that FY26 would be about one thing, becoming a profit-focused organisation first and foremost. Today's result shows that we delivered on that commitment. FY26 was a year of two halves. In the first half, we completed the hard structural work, the cost reduction programs and scaling of the MyWayMutual. In the second half, the reset business delivered. Here are the headline numbers. Full year, group EBITDA of $0.3 million. A $10.6 million turnaround from the $10.4 million loss in FY25. Importantly, half two at EBITDA of $3.5 million and a H2 net profit after tax of $2.3 million. a $6.3 million EBITDA improvement from the prior corresponding half. Statutory net loss after tax reduced 96% to $0.8 million from a restated $16.5 million loss PCP. We closed with cash of $10 million, no debt. PCP cash increased from $8.4 million in FY25. Importantly, the second half was profitable through the most significant external shock this business has faced. The June quarter escalation in the Middle East and the fuel volatility followed cut forward bookings by 29% within weeks. We stepped down cost immediately, held our margins and remained profitable through the quarter. Our most profitable half as a listed company was also one of our most difficult quarters. This is clearly evidence that our strategy is working. Beyond the financial results, the FY26 delivered structural improvements across the business. We launched and scaled the MyWay Mutual, moving owner protection in-house, now our single largest driver of our margin transformation. We executed the JB Group strategic investment with a placement of $3.2 million and a board improvement of share and zero. We went from a 12-month product backlog to a 45-day product cycle delivery team, shipping more product changes in 12 months than we have in our previous three years combined. We improved customer satisfaction, retention and higher conversion rates. We launched our Camplify Exchange RV sales marketplace. We permanently reduced our cost base. Employee costs down $3.7 million and marketing down $3.2 million. I want to hand over to Brett to walk you through our financial results and business metrics.

Thanks, Justin. So despite those testing global conditions, it was a transitional year for Camplify. As a group EBITDA is positive 0.3 mil, that 10.6 mil turnaround. And with the statutory loss narrowed to 8 million, importantly, the group was profitable through that entire second half. I won't say the second half was, by no account, smooth. The Middle East fuel line certainly cut forward bookings by that 29%. What we've seen since then, Australia's fairly much recovered and is moving back ahead, and we've managed to close the year with $10 million in cash and no debt. The next slide shows well the half-year trends. This one slide goes back three full financial years, just splitting into the two halves. It shows that, as I said, we've been working steadily to close that EBITDA loss. So it's now a 3.5 mil profit in the last half on revenue that's fairly stable. The revenue has been jumping around over those six halves due to the TAP program in New South Wales closing down. That was quite a big number in the early halves. That's pretty much stopped. It was now moved into other areas with that. What really changed was the cost base beneath the numbers. The cost of sales dropped down to $5.9 million in the last half, really with the benefit of MyWay Mutual Protection now fully in-house. We've also taken close management of the employee cost down to $5.8 million and kept marketing quite tight at 2.1 for the last three halves, basically. That's helped improve that EBITDA margin from a negative 13% a year ago to now a positive 17% for the half. I do want to allay some investor concerns that we've been too harsh on marketing. In some good news, we have actually been focused more on the top of funnel and through the whole marketing funnel rather than just on the social medias. And we had enough budget to actually release our first TV commercial in Australia, which is now live on Channel 7. and we've included the link on the YouTube video. So I do recommend everyone to have a look at that and like it later on. Back to the numbers. So the three drivers that are behind the financial result, really the first is that margin, the gross margin rose to 63%. It was tracking at 58% last financial year. And as I said, it's really moved forward, particularly in the last half. Secondly is that cost discipline, staff cost down 3.7 million year on year, the market down 3.2 million year on year. The third driver is the revenue mix. Whilst revenue was 6.8% lower, we have tried to really push out the lower margin volumes that were Good for GTV, but not so good for EBITDA. And now focus on growing that recurring revenue. And there's premium membership fees. Now we've got a full year of the mutual under our belt. We're seeing a more normalized pattern there. So the revenue from subscriptions is up about 30%. Cash flow wise, we now move to quarterly cash flow reporting. So we are quite transparent how that cash cycle moves. We closed the financial year at $10 million up from $8.4 million. That includes a $3.2 million placement back in November for the JB Group. Operating cash outflows narrowed from $4.5 million the prior year to $1.2 million. and with the seasonality we expect the cash to start building again as we move in towards summer in Australia and New Zealand and then unwind fairly quickly afterwards and as I said now on with the quarterly ASX reporting we're quite transparent how that cycle works on the balance sheet side net assets stands at 41.3 mil um A critical thing has been getting the net current liability position moving forward to 6.4 million, somewhat better than last year. And 5.9 million of that is actually deferred fees, which as long as there's no cancellations, we'll pick that up through profit at a later point. So overall, the net assets are trending in a positive direction and that's been assisted by the capital raise and moving the business back into profitability. On the segment side, Each of our markets were fairly impacted by the Middle East war and the global headwinds. You can see in the quarterly figures that pretty much all numbers dropped in the fourth quarter. But as I said, we are tracking better locally. There was quite a strong tailwind in the summer bookings here in Australia and New Zealand, which did help us. So Q3 was very strong, but as I said, Q4 was quite dramatic shutdown. But as I said, the business has responded quickly on margins and has held well. Moving to future bookings, the pipeline is recovering. We've had solid bookings in the Australian market. New Zealand is quite late in their booking trends, a lot of last-minute bookings, and Europe is now the back end with their summer season basically over, so we expect a few months to be very quiet in Europe. But as I said, forward bookings are back up again which is good news. So a solid close to the financial year despite those global headwinds and very pleasing to see the second half figures back into a profit. I'll hand back to Justin now.

Thanks Brett. Just to stay with forward bookings for a moment I know that's a number that many of you watch closely. Future bookings sits at 19 million as Brett mentioned just below the 22.9 million PCP The context that matters there is that number fell 29% within weeks of the June shock, since recovered by 2.25 million, so 13%. Our data shows that customers aren't cancelling their holidays, they are booking closer to travel date, and the momentum and trend that we have in that number we're very confident on. We're now seeing not only domestic in Australia but a bit more return to action in the last couple of weeks in international trips as well, particularly for Australia and New Zealand. So we believe that with an elevated fuel price and general aviation costs in the Australian market that a domestic road trip will become more appealing this year and we're very confident on that number moving in for the rest of the year. I want to spend a moment on the MyWay Mutual because it really is a defining structural achievement of the year. FY26 owner protection move from an external insurer to a member owned mutual. Members get broader coverage and faster claims decisions. Shareholders get the protection margin retained inside the group rather than that paid to an insurer as profit. Year one performance, $2.7 million paid out across 2,447 claims to a 99% approval rate on decided claims and a 68% loss ratio. Inside our target range for the full first year funded. The fund paid its own claims and cleared a surplus and our exposure is capped through an excess of loss reinsurance. The fund carries attritional claims reinsurance through that process as well. Claims turnaround at 85 days is not what we want and it is our clearest improvement target for FY27. With claims capacity resourced ahead of the January peak, a wider repair network and a new member claims benefits all coming, we are really confident about the ability for us to really deliver with that product and create a real innovation in what we can do with that overall protection product as we continue to roll it out in both Australia and New Zealand as a number one focus. On the JB Group, this partnership has gone well beyond the placement. Just recently, we've agreed that all new vans across the five JB Group brands, including JB, New Age, Network RV, Victory and Traveller, now include a complimentary Club Camplify membership for 12 months as part of a bundle. New vehicle supply flows directly into our membership ecosystem and also has the ability to look at managed services pilot being able to be further rolled out with JB in FY27. Our unwavering focus for FY27 includes delivering full-year profitability, generating positive cash flow, achieving cost-effective growth in core markets, and the further role of our insurance programs, including the expansion of our products into the northern hemisphere markets. expanding member services in the Australian footprint, particularly with that relationship with JB. What's different about the outlook compared to previous years is the starting point. The cost basis reset, the second half ran at the level we planned. The mutual enters its first year of scale with margins already transformed. The JB rollout proves the pilot programs and network works and the balance sheet supports the plan with $10 million in cash and no debt. An example of member services expansion is our Camplify Exchange, Australia's RV marketplace built for buying and selling. We launched that just recently, a few months ago. We already have 493 listings live with 12 dealer partners. Every listing shows what a van could earn on Camplify. Buyers can try it before they buy through a Camplify rental. It's also a direct integration with dealer stock and the ability for them to move into a full rental environment using the Camplify rental marketplace as well as the ability to sell and our customers to buy. Exchange completes the RB lifecycle for our customers. Try it on Camplyfy, buy it on the exchange, rent it out to offset your ownership, sell it when it's time to upgrade, and provide protection with Club Camplyfy, protected by the MyWay Mutual. One customer, the whole lifecycle inside the group. On the screen now, you can see our board and executive team who have driven this result. Very great support from our team. We have an excellent team now across our board and executive. So in summary, FY26 for CHL, we turned a $10.4 million EBITDA loss into a positive EBITDA result. We delivered a profitable second half through genuine external demand shock. We launched and scaled the MyWay Mutual, transformed our margin profile. We executed the JB Group Partnership, connecting manufacturers' supplies into our membership ecosystem. We permanently reset the cost base while improving product delivery speed, conversion and retention. And we've positioned the business extremely well for FY27 and beyond. The hard structural work is behind us. FY27 is about execution, operating leverage, with the second half of FY26 as the starting point, not the target. We remain committed to our plan and positive about our ability to deliver against these objectives. Thank you to Brett and the team and our shareholders. And I now open up for questions via the Q&A function. And just a question here. We'll open up from Owen.