COMMS GROUP LTD — Interim / Quarterly Report 2018

Feb 21, 2018

CommsChoice Group Limited Suite 24 50 New Street Ringwood VIC 3134

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ASX Release

22 February 2018

COMMSCHOICE REPORTS 2018 HALF YEAR RESULTS

Highlights

• n Successful listing on the ASX in December 2017

• n 1H18 stub period total revenue of $1.0m (16 days of trading)

• n Gross profit of $0.3m

• n NPATA ($3.3m) includes IPO and transaction related costs of $3.4m

• n Underlying NPATA ($0.2m)

• n On track with integration program to deliver identified benefits

• n Strong growing pipeline of customers in Europe and North America

• n Strong balance sheet with $3.6m net cash at 31 December 2017

• n Continue to leverage combined strengths of leadership team, innovative products and services

  • Client wins include a new call centre contract and 500+ seat expansion with existing call centre clients

CommsChoice Group Limited (ASX: CCG) (‘CommsChoice’ or the ‘Company’) is pleased to release its half year results for 2018 (HY18).

The Company listed in December 2017, therefore the result reported today reflects only sixteen days of trading by the acquired revenue generating operating companies.

Reported operating revenue of $1.0 million was in line with our IPO Prospectus forecast. The $3.3 million reported loss was a result of expenses related to the IPO share-based payments of $2.2 million, the discount on the conversion of the convertible loan notes of $0.3 million, and other IPO and acquisition costs of $0.9 million. Excluding these unique costs, the adjusted loss for the period is $0.2 million, reflecting six months of corporate costs, against only sixteen days of revenue.

Calculated pro forma CY17 revenue and gross profit is in line with the Prospectus forecast. The Company expects to achieve the 2H FY18 revenue target of $13.0 million as incorporated into the CY18 $27.8 million revenue target.

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CommsChoice Group Limited Suite 24 50 New Street Ringwood VIC 3134

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Integration of the five acquired entities CommsChoice, Telegate, Oratel, TelAustralia and Woffle, is well underway with some key areas ahead of schedule.

Ben Gilbert, CommsChoice CEO said: “The integration of the five businesses remains on track. We are pursuing a disciplined and pragmatic approach to achieve increased revenues, streamlined costs, reduced overheads and operating costs, and build one thriving culture.”

As part of the integration process, a single CRM, Salesforce, is currently being rolled out across the Group to enhance pipeline management, lead management and cross selling opportunities. The Group has a clear view across the financial systems enabling the immediate management of the operating cost structure.

“The successful capital raising provided a great springboard for us to continue to enhance our operations as we solve ICT challenges facing businesses and enterprises around the world. We look forward to reporting on our progress.”

About CommsChoice Group

CommsChoice is a Managed ICT Services business with deep capability in global hosted voice and our proprietary Adaptive Connectivity as a Service (ACaaS) platform that delivers optimised solutions and support for the business and enterprise customers. It has a global operational with 23 virtual service integration points (VSIPs) located in 16 countries with 24/7 support through the Engineering Centre of Excellence located in the Philippines and a sophisticated Client Experience Centre in Sydney.

Corporate: Ben Gilbert, CEO 0411 022 744 bengilbert@commschoice.com

Investor and media enquiries: Georgie Morell 0438 008 383 georgie@morellandco.com

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