AdNeo Limited (ASX: AD1), a company that acquires, owns, and manages high-growth companies in the SaaS and innovative services sectors, has announced the completion of $2.5 million in cost synergies from its acquisition of Learnt Group (Learnt). This figure materially exceeds the $2.0 million target communicated to shareholders on 12 June 2025. The company anticipates a bottom-line expense reduction of $0.625 million each quarter moving forward in FY26.
The savings were delivered by 30 September 2025, allowing for full bottom-line impact from 1 October 2025. Learnt raised $0.5 million before the acquisition to fund the realization of cost synergies, employee redundancies, and leave liabilities, thereby not affecting AdNeo’s cash reserves. Significant simplification and consolidation initiatives have been implemented, creating a more efficient operating model across various units, including finance, IT, support, sales, and marketing.
AdNeo has also established a High-Performance Management System and Training to support higher output levels from a more efficient workforce. The sales synergies plan is currently being implemented between Learnt and Art of Mentoring customers, focusing on shared customer tenders and marketing campaigns. One client has already signed up for an integrated learning and mentoring platform valued at $75,000 in platform fees over two years, with additional customized content. The cross-sell pipeline comprises 16 deals, with four in advanced stages.
According to AdNeo’s Group CEO, Angus Washington, the company debt has reduced to $3 million, while also extending the terms by 2 years on the same terms, resulting in a reduction in annual interest by $0.36 million. The company has implemented a customer-focused posture and is focused on commercial outcomes and profitability. Cost-saving initiatives included a workforce reduction of about 32% from the acquired business, consolidation of entities, and a reduction in office locations.
