NEXTED GROUP LIMITED — Interim / Quarterly Report 2019

Apr 30, 2019

30 April 2019

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Australian Securities Exchange Limited Via e-lodgement ASX Code ICT

March Quarter Update

Quarterly Highlights:

• Highest quarterly cash collections of $2,628,000 since the inception of iCollege

• Positive operating cash flow for the quarter

• Fourth successive quarter with over 25% growth in cash collections post Manthano Limited acquisition in Feb 2018

• Continued strong international and domestic enrolments across the business units.

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- Quarterly Cash Flow Commentary

The Board of iCollege is pleased to announce consolidated unaudited cash receipts of $2,628,000 for the March quarter. This is the highest quarterly cash receipt since the inception of iCollege. This represents a 25% growth in cash receipts from the Dec’ 2018 quarter. With operating cash outflows (excluding receipts) of $2,394,000 the Company reports a $236,000 operating cash position for the quarter.

This quarter celebrates the completion of 1 year since iCollege Limited acquired Manthano Limited and began the process of restructuring both the board and company. In the initial months, the board and executive put into place mid-term strategic objectives and focussed on strictly adhering to these. These objectives served the business well as it renewed the focus on business basics, allowing for a strong and timely turnaround of the company. As demonstrated by the graph above, the business has continued to build on this foundation with a specific focus on increasing student numbers both domestically and internationally (CRICOS students). This growth has been achieved through innovative and dynamic marketing programs for domestic students and courses and the significant expansion of a loyal international agent network.

At the heart of the restructure of the business, has been the development and implementation of a shared services division which provides compliance, accounting, human resources and marketing. This division is now fully operational and positions the Company for significant revenue growth in all of the operating entities at a nominal increase in the fixed cost base.

The staff at all campuses have focussed on delivering a valuable and interesting student experience. This coupled with the recruitment of skilled teaching staff and an informative and engaging suite of courses has increased student referrals from recruitment agencies. This has led to growth in enrolments across all qualifications.

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Post quarter update

• The Company expects to book its first revenues out of India in the coming quarter from student recruitment activities via iStudy Australia (India).

• Construction of the kitchen training facilities at the Birla iCollege Centre of Excellence for Hospitality is expected to be completed during May. Completion of these works will enable iCollege to start marketing its course offerings for the Centre of Excellence.

• Application for CRICOS allocation has been lodged with the Department of Education. Subject to approval, the Company anticipates the commencement of international student programs from our Adelaide campus post 30 June.

The board of ICT will continue to work towards delivering positive cashflow and revenue growth and will now start looking for growth opportunities through acquisitions.

Ends –

For further Information:

Mr. Ashish Katta –

Managing Director iCollege Limited +61 8 9466 9008

ash.katta@icollege.edu.au

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

iCollege Limited

ABN 75 105 012 066

Quarter ended (“current quarter”)

31 March 2019

Consolidated statement of cash flows	Current quarter $A’000	Year to date $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (Costs of course delivery) 1.9 Net cash from / (used in) operating activities	2,628 - - (82) (13) (1,269) (371) - 2 (27) - - (632)	6,348 - - (149) (83) (3,168) (2,909) - 4 (82) - - (1,278)
	236	(1,317)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments	(16) - -	(67) - -

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A’000	Year to date $A’000
(d) intellectual property (e) other non-current assets (Final deferred consideration (Celtic Training & Consultancy) 2.2 Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other – 2.6 Net cash from / (used in) investing activities	- - - - - - - - - -	- - - - - - - - - -
	(16)	(67)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - 92 (206) -	1,900 - - (132) 287 (610)
	(114)	1,445
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of quarter/year to date 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	294 236 (16) (114)	339 (1,317) (67) 1,445

• See chapter 19 for defined terms

1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A’000	Year to date $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	-	-
	400	400
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	400 -	294 -
	400	294
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 69 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		69
		-

Exec Dir Salaries - $69k

7.	Payments to related entities of the entity and their	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2		-
7.2	Aggregate amount of cash flow from loans to these parties included		-
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	150	-
	-	-
	-	-

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Secured by director guarantee

9. Estimated cash outflows for next quarter	$A’000
9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (Costs of course delivery) 9.8 Total estimated cash outflows	1,250 400 650
	2,300

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1 Name of entity	Nil	Mathisi Pty Ltd
10.2 Place of incorporation or registration		Queensland
10.3 Consideration for acquisition or disposal		$120,000
10.4 Total net assets		$63k
10.5 Nature of business		Education services

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 30 April 2019 Company Secretary

Print name: Stuart Usher

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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