SEQUOIA FINANCIAL GROUP LTD — Interim / Quarterly Report 2012

Apr 29, 2012

30 April 2012

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ASX Announcement & Media Release

MDS Financial Group Limited

Appendix 4C: March 2012 Quarter

ACN 091 744 884

Level 37

Rialto South Tower 525 Collins Street Melbourne VIC 3000 T: +61 3 9617 0600 F: +61 3 9617 0699 asx@mdsfi nancial.com.au

MDS Financial Group has today released its Appendix 4C consolidated statement of cash fl ows for the quarter ending 31 March 2012.

Cash receipts from customers for the quarter of $1,577,000 represent a 31% increase from the previous year’s corresponding period of $1,201,000. The increase is largely a result of the activation of D2MX Pty Ltd as an ASX trading participant and growth in institutional, wholesale and high frequency traders executing orders through the D2MX platform.

ASX Code: MWS

Net operating cash outfl ows of $384,000 during the quarter includes a further $100,000 deposited by D2MX Pty Ltd to its third-party clearing agent, which is now a $250,000 recoverable Bond.

Directors

Sean Rothsey

Chairman and Non Executive Director

Wayne Johnson Deputy Chairman and Executive Director

Costs associated with the implementation of the Software and Data Agreement announced November 30th 2011 with IRESS Market Technologies (IRESS) continued through the quarter and are nearing completion. The agreement with IRESS will have a positive impact on profi tability and future cash fl ows as the costs of running two separate software and data platform infrastructures are closed down. Over half of the Market Analyser subscriber base has migrated to the new IRESS-based platform featuring the Group’s charting engine, technical indicators, and profi t / loss back testing functionality, with the balance to be migrated by May 1st, 2012.

Damian Isbister

Executive Director and CEO

Richard Symon

Executive Director

The reduction of expenses as a result of the rollout of the new upgraded software solution for our software division is nearing completion, with a signifi cant number of supplier contracts and agreements either having been cancelled or modifi ed, with the benefi ts being monetised in the June quarter.

Jamie Khoo

Independent Non-Executive Director

Secretary

D2MX, the Group ASX trading Participant, has maintained positive growth during a diffi cult market quarter where volumes have declined, however D2MX has enjoyed an increase in account openings from institutional fund management and wholesale broking clients. During the period D2MX successfully concluded an onmarket takeover offer for Accent Resources NL (ASX: ACS) on behalf of an international resources company.

Tony Iremonger

Company Secretary and CFO

317.1 million listed shares 12.5 million unlisted options

MDS Financial Services Pty Ltd (MDSFS), the Group Corporate Advisory division was, during the period, exclusively mandated in respect of analysing and recommending on the sale or listing of a number of substantial companies (sub $100 million) in the transport and logistics sector both domestically and internationally, and are well advanced on that mandate. MDS Financial Services are exclusively mandated to handle these trade sales and or listings that may arise from the outcome of recommendations in the new fi nancial year.

To ensure that the Group has suffi cient working capital to offset the increase in its D2MX bond requirements for its continued growing share trading activities and developing and migrating the software platforms to IRESS, MDS Directors implemented a funding facility as announced to ASX on 16th March 2012 to ensure prudent cash reserves during this company transforming period.

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Page 1 of 2

30 April 2012

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ASX Announcement & Media Release

ABOUT MDS FINANCIAL GROUP

MDS Financial Group is a full-service corporate advisory and capital markets specialist with clients in Australia and the Asia-Pacifi c region. Listed on the Australian Securities Exchange (ASX), MDS Financial Group is also an ASX market participant, with institutional and third-party wholesale brokerage facilities underpinned by substantial retail online trading and market data services.

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Sean Rothsey Chairman

END

For more information please contact:

Wayne Johnson Deputy Chairman MDS Financial Group Limited Phone: +61 2 8226 3330 Mobile: +61 411 544 449

Damian Isbister Executive Director and CEO MDS Financial Group Limited Phone: +61 3 9617 0605 Mobile: +61 404 028 114

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Page 2 of 2

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/00. Amended 30/9/01, 24/10/05,17/12/10.

Name of entity

Name of entity
MDS Financial Group Limited
ABN 90 091 744 884	Quarter ended (“current quarter”)
90 091 744 884	31 March 2012

Consolidated statement of cash flows

	Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net operating cash flows	Current quarter $A’000	Year to date (9 months) $A’000
		1,577 (599) (9) - - (1,300) - 2 (5) - (50)	5,998 (1,740) (62) - - (4,917) - 7 (14) - (200)
		(384)	(928)

• See chapter 19 for defined terms.

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

	Current quarter $A’000	Year to date (9 months) $A’000
1.8 Net operating cash flows (carried forward)	(384)	(928)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (provide details if material) Net investing cash flows 1.14 Total operating and investing cash flows	- - (6) (2) - - - - - (6) - -	- - (109) (2) - - 63 - - (6) - -
	(14)	(54)
	(398)	(982)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other - Payment for share buy-back Net financing cash flows	- - 580 - - -	- - 580 - - -
	580	580
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.20 1.23 Cash at end of quarter	182 308 -	(402) 892 -
	490	490

• See chapter 19 for defined terms.

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

1.24 1.25 1.26	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.11 Explanation necessaryforanunderstanding ofthe transactions	Current quarter $A'000
		139
		-
	Other cash flows related to operating activities (included in item 1.7) represents payment of a recoverable settlement bond to third-party clearing agent.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

N/A

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	1,933	580
	-	-

3.3 Explanation necessary for an understanding of the transactions

Information regarding financing facilities is set out in the Company’s ASX Announcement “MDS Financial Group Completes US$2 Million Funding Facility” dated 16 March 2012

.

• See chapter 19 for defined terms.

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to therelateditemsinthe accountsis asfollows.	Current quarter $A’000	Previous quarter $A’000
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other (provide details)	490	308
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	490	308

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
	N/A	N/A
	N/A	N/A
	N/A	N/A
	N/A	N/A
	N/A	N/A

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does ~~/does not*~~ (delete one) give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: ....30/04/2012........................ ( ~~Director/~~ Company Secretary)

Print name: .....Anthony John Iremonger.................................................

• See chapter 19 for defined terms.

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

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 wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report except for any additional disclosure requirements requested by AASB 107 that are not already itemised in this report.

3. Accounting Standards. ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

4. See chapter 19 for defined terms.

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