COMMS GROUP LTD — Earnings Release 2018

Aug 29, 2018

CommsChoice Group Limited 50 New Street Ringwood VIC 3000

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ASX Release

30 August 2018

CommsChoice Group Limited Full Year Proforma Results to 30 June 2018

CommsChoice Group Limited (ASX:CCG) is pleased to announce its proforma[*] financial results for the year ended 30 June 2018 (FY18).

Key highlights from the results include:

• Successful listing in the ASX in December 2017

• Presenting a profitable and growing cloud-ready telecom business to the market

• Integration of 5 businesses well underway

• Strong value proposition and branding – simplifying your journey to the cloud

$Millions	FY18 Market Guidance#	Pro forma FY18*
Revenue	20.4	20.7
Cost of Sales	11.1	11.7
Gross Margin	9.3	9.0
EBITDA	1.8	1.8
EBITDA %	8.8%	8.7%

Commenting on the FY19 proforma results, CEO Ben Gilbert stated “FY18 has been an exciting time for CommsChoice since listing on the ASX in December 2017. We are particularly pleased with the progress of integrating the 5 businesses into a single operating structure. We have received positive feedback from clients on the benefits of the increased capability and strengths of the combined organisation to serve their needs.”

The Chairman, Mr John Mackay, said “with the integration moving ahead well, we continue to remain confident that CommsChoice has the foundation to build a strong telecoms business to take advantage of both organic and inorganic opportunities in the market”.

as released to the market on 31 May 2018

• CommsChoice listed on the ASX on 21 December 2017 and reports its results for the six months and sixteen days since formation of the operational trading Group on 15 December 2017. The Group therefore also presents supplementary financial information (Proforma) to cover a full financial year that comprises the operational forecasts of the acquired businesses for the first half of the financial year together with the actual results for the second half.

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CommsChoice Group Limited 50 New Street Ringwood VIC 3000

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Highlights

• Integration of the 5 businesses well underway with key milestones achieved:

• Launched our new organisation structure that brings together all employees across Melbourne, Sydney and Manilla into a single management structure

• Strengthened our executive team with external appointment and continue to strengthen our sales team with new appointments to be announced shortly

• Launched our internal project to implement NetSuite company wide as our core financial, project delivery and ERP business system that will deliver substantial improvements to the financial management of our business and the delivery of value to our clients’ projects

• We are on track to have the businesses fully integrated by the end of Q3 FY19

• Validation of core capability through the nearing completion of a significant MPLS to SDWAN network transformation in the Australian market. Over 220 sites in CBD, metro, rural and remote parts of Australia delivered for one of our clients.

• Recently completed delivery of a 10,000 channel Unified Communications solution into China, Japan, Korea & Singapore for a Global Tech Giant using our proprietary Global CTS platform

Business Outlook

Commenting on the outlook Mr. Gilbert said, “We are pleased with how our business is tracking against our integration plans and our strategy of simplifying our clients journey to the cloud. While we acknowledge the disappointment of not meeting our original earnings forecast in the IPO prospectus, the business is in a sound position to grow from here. CommsChoice is a profitable company with a strong balance sheet to pursue both organic and inorganic growth opportunities going forward.”

In FY19 (30 June year end) the company expects to deliver double digit growth from its existing businesses. The company continues to pursue acquisition opportunities.

About CommsChoice Group

CommsChoice Group is a vendor neutral information and communications technology (ICT) managed service provider. The company services mid-tier customers in Australia, New Zealand, Singapore and internationally using its hosted voice platform combined with innovative SD-WAN technology. The company currently services almost 3,000 clients globally and together employs more than 60 staff across offices in Sydney, Melbourne, Philippines and Singapore.

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CommsChoice Group Limited

50 New Street Ringwood VIC 3000

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Corporate Enquiries: Ben Gilbert, CEO m: 0411 022 744 e: bengilbert@commschoice.com	Investor Relations Greg Slade m: 0488 917 882 e:greg@sladeir.com

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