HITECH GROUP AUSTRALIA LIMITED — Earnings Release 2015

Aug 18, 2015

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ASX RELEASE 19 August 2015

Unaudited RESULTS FY2015

HiTech improves revenue by 88%

The directors have released HiTech’s unaudited results to the market, as follows:

For the financial year ended 30 June 2015, the consolidated entity’s operating revenue is $15,104,907, an increase of 88% over the previous corresponding period (pcp). The high margin permanent placement income was 17% higher and contracting revenue was 89% higher compared to pcp. Gross Profit is $3,180,051, an increase of 163% compared to pcp (FY14:$1,209,622). Net profit after taxation (NPAT) is $807,721 (FY14 Net loss: $150,658) due mainly to an in increase in contracting revenue. Earnings before interest, taxes, depreciation and amortization (EBITDA) is $1,348,972 (FY14: Net loss $175,996). NTA is $0.12/share.

HiTech remains fully prepared to take advantage of any improvement in the ICT recruitment sector. We are working towards winning new business, increasing profit and ensuring that operating costs are kept to a minimum.

HiTech continues to win new business and is increasing its client base steadily.

HiTech has a proven business model that has evolved over the past 22 years. Our major revenue is still generated from our core ICT recruitment business and we are active in nonICT areas of recruitment. We have been active in securing clients all around Australia.

“We are delighted to have delivered a similar stunning result as the last half for the full financial year 2015: we nearly doubled our revenue and tripled our gross profit, despite the challenging conditions. We are winning new business continually and still have a huge potential to grow significantly. HiTech remains a growing, resilient and strong company with increasing revenue, solid profit, positive cash flow, strong balance sheet and no debt (this remans unique in our industry!). We are committed to further improve our revenue and profitability. I thank our valued clients, candidates, contractors and dedicated staff. We are optimistic of our continuing success in the future.” Chairman and CEO Ray Hazouri said.

Outlook for FY2016

The outlook for FY2016 is quite positive with expected increased revenue and profit results depending, primarily, on the prevailing economic conditions at the time.

For further information, please contact Chairman and CEO Ray Hazouri on 02 9241 1919.

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