HITECH GROUP AUSTRALIA LIMITED — Earnings Release 2020

Aug 11, 2020

==> picture [211 x 108] intentionally omitted <==

ASX RELEASE

12 August 2020

HiTech delivers again Strong Record Results:

Improves NPAT by 15%, revenue by 10%, EBITDA by 8%

Fully franked 4 cents per share dividend declared

The directors are pleased to release HiTech’s FY2020 results to the market, as follows:

For the financial year ended 30 June 2020, the consolidated entity’s results are:

Operating revenue is $33,380,909, an increase of 10% over the previous corresponding period (pcp) (FY19: $30,284,662).

Gross Profit is $6,105,679, an increase of 6% over pcp (FY19: $5,777,819).

NPAT is $3,336,117, an increase of 15% over pcp (FY19: $2,898,316).

EBITDA is $4,330,867, an increase of 8% over pcp (FY19: $4,089,810).

Cash balance of $7,608,206, an increase of 28% over pcp (FY19: $5,927,690).

DIVIDEND:

The directors have declared a fully franked final dividend of 4 cents per share to be paid on 14 September 2020 to all shareholders registered on close of business on 31 August 2020.

HiTech has been swiftly adapting to the unprecedented events of 2020 and remains fully prepared to take advantage of favourable conditions in the ICT recruitment and services sector. We are working diligently to ensure that our talented team is well supported throughout these trying times so that their safety and wellbeing is ensured.

We will continue to apply our flexible and dynamic system of operation (which was born in the 1993 recession and developed to win accordingly) to win new business, increase profit and ensure that operating costs are kept to a minimum.

We believe that the current economic environment may well present us with an opportunity to acquire businesses that will further strengthen the group.

==> picture [41 x 12] intentionally omitted <==

==> picture [41 x 11] intentionally omitted <==

Excellence in Recruitment & Consulting | Level 9, 189 Kent Street SYDNEY NSW 2000

HiTech has a proven business model that has evolved over the past 27 years and is uniquely suited to this market.

Our major revenue is still generated from our core ICT contracting, consulting and recruitment business predominantly by servicing the Australian Government sector.

“This exemplary record profit for FY2020 is testament to the sustainable business model developed and applied by the HiTech team.

The COVID-19 economic and emotional shock has been managed as best we can and, remarkably, we have managed to produce unprecedented results for our shareholders.

This result highlights our successful and continuous efforts to capitalise on strong demand for ICT talent and services as the digital transformation wave builds and becomes ever more relevant with online access and remote work becoming the new norm.

Our proven quality system has allowed us to deliver, yet again, on our promises and forecasts to all stakeholders.

As always, we are determined to further capitalise on demand for our services to produce unparalleled benefits and results for all HiTech stakeholders. In these particularly unusual times, I want to thank our dedicated and committed staff for working together to stay safe and for continually providing a nationwide beneficial service to all Australians. I thank our valued clients, candidates, and contractors for a fantastic record year.

Given our renewed enthusiasm of being even more effective in facilitating digital progress for the public and private sectors, coupled with our track record of delivering record results for many years, we are confident of continued success in the future.” CEO Elias Hazouri said.

Outlook for FY2020

We are well positioned to capitalise on the consistent demand for ICT talent and services. We expect that our clients will continue to seek best of breed quality talent and services to enable their evergrowing online services capabilities. Our task is to continue delivering top quality services and maintain our profitable growth.

The outlook for FY2021 will depend primarily on the prevailing delicate economic conditions at the time and the forces of supply and demand for ICT talent and services.

We have our sights set on achieving strong returns in FY2021.

For further information, please contact CEO, Elias Hazouri on 02 9241 1919.

This announcement has been authorised for release by the board of directors of HiTech Group Australia Limited.

==> picture [41 x 12] intentionally omitted <==

==> picture [41 x 11] intentionally omitted <==

Excellence in Recruitment & Consulting | Level 9, 189 Kent Street SYDNEY NSW 2000