Progress on Restructuring and EML 2.0
Company completed significant H1 work on FY '26 restructuring (Project Arlo & organizational changes), refreshed management, standardized toolkits, and reports being on track to close major restructuring by June 30, 2026.
Pipeline Growth and Conversion
Overall pipeline grew to $102 million (exceeded $90M target with $91.5M at 31 Dec earlier) with a secured program revenue of ~ $24 million; conversion rate tracking at 51% and $10.3 million already launched and active on system.
Project Arlo Build and Deployment Timelines
Core Arlo build in full swing with core build expected complete by end of calendar year; UK deployment midyear and migration planning underway enabling new-client launches from those dates.
Efficiency Gains and Cost Management
Quarter-on-quarter cost improvement of $3.6 million; GlobalOps Centre delivering an estimated 35% cost saving on roles versus traditional markets; overheads were well managed and roughly stable (net overheads $53.1 million).
Segment Strengths — APAC and Existing Client Growth
Asia-Pacific customer revenue increased 10% and GDV up 13%; existing-client growth excluding runoff aligns with EML 2.0 forecast of 4-5% growth and top-5 clients represent ~25% of revenue (well spread client base).
Improved Cash Conversion (Excluding One-Offs)
Underlying operating cash flow (excluding one-offs) was $22.2 million, representing a 79% EBITDA-to-cash conversion ratio, and management expects improving cash conversion going forward.
Product Development Momentum (Mobility MVP)
Product development re-established as BAU; mobility product targeted at digitizing vehicle expense management with an MVP expected by midyear and co-design discussions underway with key clients.