AD1 Holdings Ltd (AD1) AI Stock Analysis

• Market Cap: AU$7.76M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 2.49
• Revenue Growth: -17.50%
• EPS Growth: 66.33%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 90
• Industry: Staffing & Employment Services
• EPS (TTM): -0.03
• Shares Outstanding: 146,406,950
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.03
• Price to Book (P/B): 50.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ―

AD1 Holdings Ltd struggles with persistent financial challenges, including high leverage and negative growth in equity, which are significant concerns. The technical analysis shows a minor positive trend, but the lack of comprehensive indicators reduces confidence. Valuation metrics are unfavorable, highlighting the company's unprofitability. Overall, AD1 Holdings Ltd needs substantial strategic improvements to enhance its financial health and market appeal.

AD1 Holdings Ltd Business Overview & Revenue Model

Company Description

AD1 Holdings Limited, a technology company, engages in the investment and creation of SaaS platforms. It builds talent platforms to connect employers and candidates. The company's solutions include ApplyDirect, which provides recruitment marketing platforms and related digital services; Jobtale that offers a purpose-built recruitment platform to create appealing and informative job ads to attract top talent; and Art of Mentoring, which provides mentoring programs that empower organisations to shift culture and develop their people. It also offers utility software services comprising a suite of software solutions that support energy retailers to optimise their operations, as well as other related supporting and consulting services. The company was formerly known as ApplyDirect Limited and changed its name to AD1 Holdings Limited in December 2019. The company was incorporated in 2006 and is based in Hawthorn, Australia.

How the Company Makes Money

AD1 Holdings Ltd generates revenue primarily through the sale of its software-as-a-service (SaaS) solutions, subscription fees, and implementation services. The company's key revenue streams include licensing fees for its recruitment and talent management platforms, such as 'ApplyDirect,' which connects job seekers with employers directly, bypassing traditional recruitment agencies. Additionally, AD1 earns income from its 'Art of Mentoring' platform, offering structured mentoring programs for organizations. The company also partners with utility providers through its 'Utility Software Services' division, offering solutions for asset management and workforce optimization, contributing to a diversified income portfolio.

AD1 Holdings Ltd Financial Statement Overview

Summary

AD1 Holdings Ltd faces substantial financial challenges, with persistent losses impacting profitability and stability. High leverage and negative equity growth indicate financial distress, while cash flow management shows mixed results. The company needs strategic initiatives to improve its financial position and operational efficiency.

Income Statement

AD1 Holdings Ltd exhibits significant challenges in its income statement, with negative growth in gross profit and net income over the years. The revenue growth rate has been inconsistent, and the company continues to report negative EBIT and EBITDA margins, which indicates ongoing operational inefficiencies and financial distress.

Balance Sheet

The company's balance sheet shows high leverage with a debt-to-equity ratio that indicates significant financial risk. Stockholders' equity has drastically decreased over the years, reflecting deteriorating financial health. The equity ratio is low, highlighting limited shareholder funds relative to total assets.

Cash Flow

AD1 Holdings Ltd has seen some improvement in operating cash flow, yet free cash flow remains negative, a concerning factor for sustainability. The operating cash flow to net income ratio is strong, suggesting effective cash management despite losses. However, the free cash flow to net income ratio is weak, indicating insufficient cash generation.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
4.18M	4.26M	6.40M	5.99M	5.34M	3.40M
	Gross Profit
725.59K	1.76M	-1.57M	-414.64K	-825.72K	-973.80K
	EBIT
-726.70K	-1.43M	-5.66M	-4.08M	-2.89M	-2.38M
	EBITDA
-2.87M	803.05K	-7.58M	-2.06M	-2.45M	-2.15M
	Net Income Common Stockholders
-2.14M	-1.31M	-8.01M	-2.67M	-2.22M	-2.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
101.87K	164.06K	1.21M	1.96M	523.43K	459.74K
	Total Assets
8.27M	8.16M	10.82M	14.41M	9.13M	2.96M
	Total Debt
3.41M	3.59M	3.59M	3.58M	54.22K	133.88K
	Net Debt
3.31M	3.42M	2.38M	1.62M	-469.21K	-325.87K
	Total Liabilities
8.74M	7.98M	9.93M	8.59M	5.43M	1.41M
	Stockholders Equity
-471.95K	177.00K	894.39K	5.83M	3.70M	1.55M
Cash Flow		Free Cash Flow
-1.78M	-1.05M	-1.46M	-4.32M	-1.30M	-2.11M
	Operating Cash Flow
173.88K	907.12K	845.74K	-1.13M	-254.74K	-2.09M
	Investing Cash Flow
-2.55M	-1.95M	-2.31M	-4.19M	-1.94M	-29.36K
	Financing Cash Flow
1.68M	0.00	709.80K	6.76M	2.26M	1.74M

AD1 Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
AD1	46 Neutral	AU$7.76M	―	-245.01%	―	-17.50%	66.33%
RW8		€7.86B	96.12	37.44%	0.61%	―	―
WTCHF		$23.18B	115.42	13.73%	0.12%	―	―
XROLF		$18.69B	140.29	12.98%	―	―	―
RUL	73 Outperform	AU$704.85M	107.80	11.59%	―	9.76%	-28.92%
BVS	71 Outperform	AU$1.09B	15.13	57.04%	2.70%	18.63%	―

AD1 Holdings Ltd Corporate Events

AdNeo Limited Suspends Trading Ahead of Major Acquisition Announcement

AdNeo Limited has requested a voluntary suspension of its securities from the Australian Securities Exchange, pending an announcement about a potential significant acquisition and related capital raising. This move aims to manage the company’s continuous disclosure obligations and is expected to conclude before the commencement of normal trading on May 12, 2025.

AdNeo Limited Initiates Trading Halt for Major Acquisition Announcement

AdNeo Limited has requested a trading halt on its securities on the Australian Securities Exchange pending an announcement regarding a potential material acquisition and associated capital raising. This move is intended to help the company manage its continuous disclosure obligations, with the halt expected to last until the announcement is made or normal trading resumes on May 5, 2025.

AdNeo Limited Reports Strong Q3 FY2025 Performance with Strategic Growth Initiatives

AdNeo Limited reported a positive net cash flow from operating activities for Q3 FY2025, aligning with its strategic goals. The company achieved a 60% increase in customer receipts compared to the same period last year, driven by contributions from its subsidiaries, Art of Mentoring and Oliver Grace. The CEO highlighted successful cost-cutting measures and new SaaS contracts with prestigious organizations, which enhance the company’s impact in workforce transformation. The company is also making significant progress with its ApplyDirect platform, leading to cost savings and increased performance. AdNeo remains committed to strategic acquisitions and operational excellence, aiming for exceptional shareholder returns.

AdNeo Ltd Announces Change of Registry Address

AdNeo Limited has announced a change in the address of its registry office in Sydney, effective from April 14, 2025. The registry, MUFG Corporate Markets (AU) Limited, will relocate to Liberty Place, Level 41, 161 Castlereagh Street, Sydney NSW 2000, while the telephone numbers and postal address remain unchanged. This move is part of the company’s ongoing efforts to streamline operations and maintain effective communication with stakeholders.

ADNEO Limited Announces Cessation of Securities

ADNEO Limited has announced the cessation of several securities, including options expiring in 2024 and 2029, due to either expiry without exercise or the lapse of conditional rights. This announcement indicates a significant reduction in the company’s issued capital, which may impact its financial structure and stakeholder interests.

AdNeo Limited Reports Increased Losses Despite Revenue Decline

AdNeo Limited reported a 4% decline in revenue to $2,096,041 for the half-year ending December 31, 2024, with a net loss after tax increasing by 33% to $3,389,801. The company did not declare any dividends for the period, and its net tangible asset per share improved from (7.34) cents to (4.98) cents. The interim financial report has been reviewed by an independent auditor.

AdNeo Limited Announces Change of Company Auditor

AdNeo Limited has announced a change in its auditing firm, appointing Hall Chadwick WA Audit Pty Ltd as its new auditor, following the resignation of PKF Melbourne Audit & Assurance Pty Ltd. The decision, which has been approved by ASIC, is in line with AdNeo’s strategic interests and will be confirmed by a shareholder resolution at the upcoming Annual General Meeting. This change reflects the company’s consideration of its size and operations, aiming to benefit both the company and its shareholders.