SSH GROUP LTD — Regulatory Filings 2024

Jan 29, 2024

FY24 YTD Cash Receipts	Cash Balance Increase	Operating Cash Flow
\$20.1m	+30%	Positive
In receipts from customers	In Q2 compared to Q1 Cash Balance.	For Q1 & Q2 FY24.

• Q2 FY24 EBITDA up 30% vs Q1 FY24.
• Positive operating cashflow of \$1.3m for the quarter and \$2.0m YTD
• The Group increased its cash balance to \$1.9m after investing \$0.4m into new equipment and repaying (net) borrowings of \$0.5m.
• Cash balance increased from \$1.5m to \$1.9m over the quarter.

SSH Group Ltd. (ASX:SSH) (Company or SSH) is pleased to release its December 2023 Quarterly Activities Report and Appendix 4C. Financial results released within this document are from unaudited management accounts.

\$5.5m EBITDA for 12-month period

EBITDA for the 12 months ending 31 December 2023 is \$5.5m, demonstrating growth against the FY23 full year EBITDA of \$3.3m, resulting in a 66% increase. Furthermore, ongoing EBITDA improvement is evident with this latest result showing an increase of nearly \$1.1m / 183% on the Q2 FY23 comparable period.

Quarter	EBITDA
Q3 FY23	\$988,176
Q4 FY23	\$1,575,746
Q1 FY24	\$1,281,350
Q2 FY24	\$1,655,068
12-month total	\$5,500,340

183% Quarterly EBITDA Increase on PCP

Quarter	EBITDA
Q2 FY23	\$599,295
Q2 FY24	\$1,655,068
Variance \$1,055,773

Positive Operating Cashflow

The SSH Group continues to strengthen its cashflow as it invests in its higher margin Equipment Rental Divisions. For the past seven out of eight quarters, SSH Group has delivered positive operating cashflow. For the current quarter the SSH Group delivered nearly \$1.0m of free cashflow, after investing in further rental assets.

Positive Financial Results and Developments for the Quarter

The SSH Group's financial performance for the December quarter continues to demonstrate growth for the second consecutive quarter, with EBITDA surpassing \$1.5 million. The quarter EBITDA result is 17% of revenue. Notably, the latest quarter's performance is particularly significant when compared to the corresponding quarter in FY23, where EBITDA stood at \$599,295.

Revenue for the quarter was diversified, with 64.0% derived from our Recruitment & Workforce Management service line and 36.0% from our Transport Fleet, Truck, and Machinery Hire service line, compared to 85.4% and 14.6% in the corresponding FY23 quarter. Our revenue diversification reflects our efforts to balance our revenue streams to focus on growing our higher margin service offerings.

The SSH Group's dedication to sound financial management is evident in the positive cashflows from operations, totalling \$1.3 million for the quarter. This marks the seventh time in the last eight reporting periods that we have achieved positive operating cashflow.

During the quarter, the SSH Group continued its strategic investment in building and maintaining an optimal fleet. A total of \$0.4 million of cash was allocated to capital expenditures, with the balance of the capex investments being funded through debt facilities within the respective entities.

In summary, the SSH Group is pleased with its financial performance and the progress made in diversifying our revenue sources. We remain steadfast in our commitment to our long-term strategy of achieving profitable growth in our core business and creating sustained value for our shareholders whilst we continue to evaluate additional value accretive growth opportunities.

Managing Director of SSH Group Ltd, Mr Daniel Cowley-Cooper notes:

"This is an exceptional result achieved by our team, and it is a testament to their contributions to date. Our staff have demonstrated operational excellence and have helped shape our business 2 years out from our ASX listing. The SSH Group is now stepping into its stride and the performance of the Group reinforces our belief in our service offering to our valued clients".

Operational Summary: Market Update.

SSH Group Ltd. (ASX:SSH) (Company or SSH) is pleased to provide the market with an update on the operational activities from the December quarter and recent period.

The Group acknowledges the significant contributions from its Transport Fleet, Truck, and Machinery Hire Vertical, as well as the Recruitment and Workforce Management Vertical.

In the Transport Fleet segment, KMH and Tru Fleet collectively accounted for an impressive 36% of the Group's overall revenue. Notably, Tru Fleet has successfully optimised its fleet size, strategically aligning its rental assets to ensure robust returns. Demonstrating operational excellence, Tru Fleet's utilisation of its fleet has not only surpassed the targeted 80% but has also approached an impressive 90%.

Shifting focus to the Recruitment and Workforce Management Vertical, the SSH Group is proud to announce the rebranding of SSH Group Safety to OCULA, specialising in Security and Emergency Services. This milestone signifies the completion of the evolution of all SSH Group companies to become self-sustaining operating entities under the SSH umbrella. Bridge Resources and OCULA collectively contributed 64% to the Group's revenue.

With 4 established service brands, along with the Four Hills Services Partnership, cross selling has been a key focus for the Group. Successful cross selling of services to the group's expanding customer base is a core strategic imperative and improved delivery upon this objective helps improve both SSH and our customer outcomes.

Corporate

On 23 November 2023 the Company held its Annual General Meeting. All resolutions put to shareholders were passed on a poll with over 99% of proxy votes lodged in favour of each resolution. SSH had released an AGM Investor Presentation on 23 November 2023 which provided information on Company's operational and financial highlights during the year as well as growth strategy plans and market opportunities.

Additional Information

The SSH Group provides the following additional information relating to expenditure during the quarter and since listing:

• 1. ASX Listing Rule 4.7C.1: Net operational cash inflow for the period ending 31 December 2023 of \$1,275m was achieved by SSH. This represents a 145% increase from the September quarter 2023 of \$521k.
• 1. ASX Listing Rule 4.7C.3: Payments to related parties of the SSH and their associates during the quarter: \$136,889. These payments relate to executive and non-executive directors' fees and remuneration payments for executive directors and related parties as per the Executive Service Agreements.

ASX Announcements

This Quarterly Activities Report contains information reported in the following announcements released during the period:

Date	ASX Release Title
25/01/2024	Strong KMH Performance & SSH Safety Rebrand as OCULA
ASX: SSH

Date: 30 January 2024

23/11/2023	Results of AGM
23/11/2023	SSH Investor AGM 2023
20/11/2023	Strong 40% Margins Generate 12 Month 169% EBITDA Growth
07/11/2023	Release from Escrow
31/10/2023	Quarterly Activity/ Appendix 4C Cashflow Report
16/10/2023	Notice of Annual General Meeting/Proxy Form
5/10/2023	Director Nominations

Authorisation

This release has been authorised in accordance with the Company's published continuous disclosure policy and approved for release by the Board of SSH Group Ltd.

About SSH Group

SSH Group Ltd is an industrial company that has a portfolio of essential service businesses, focused on service delivery to industries reliant on outsourced resourcing.

SSH Group Ltd builds and acquires quality businesses that are scalable and demonstrate a strong potential for high return on investment.

SSH Group Ltd is committed to improving outcomes for Australian projects and communities.

Disclaimer: Caution Regarding Forward Looking Statements

This announcement may contain forward looking statements which involve a number of risks, uncertainties, and unaudited metrics. Forward-looking statements are expressed in good faith and are believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information.

Should one or more risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. The forward- looking statements are made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward looking statements, whether as the result of new information, future events or results, or otherwise.

Further Details

ASX Market Data www2.asx.com.au/markets/company/ssh

Investor Portal www.sshgroup.com.au/investors-media 9:00am - 5:00pm (WST)

Registered Office

SSH Group Ltd Level 3, 88 William Street, Perth Western Australia 6000

Monday to Friday

Post

Company Secretary cosec@sshgroup.com.au SSH Group Ltd

PO Box 189 WELSHPOOL DC 6986

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Appendix 4C

Quarterly cash flow report for entities

subject to Listing Rule 4.7B

Name of entity

SSH Group Limited
ABN	Quarter ended ("current quarter")
79 140 110 130	31 December 2023

	Consolidated statement of cash flows	Current quarter \$A'000	Year to date (6 months) \$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	10,346	20,136
1.2	Payments for
	product manufacturing and operating costs	(6,797)	(12,476)
	advertising and marketing	(15)	(38)
	leased assets	(140)	(286)
	staff costs	(992)	(2,835)
	administration and corporate costs	(452)	(1,266)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	(675)	(1,187)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.9	Net cash from / (used in) operating activities	1,275	2,048

Date: 30 January 2024

	Consolidated statement of cash flows	Current quarter \$A'000	Year to date (6 months) \$A'000
2.	Cash flows from investing activities1
2.1	Payments to acquire or for:
	entities	-	-
	businesses	-	-
	property, plant, and equipment	(434)	(445)
	investments	(65)	(65)
	intellectual property	-	-
	other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a) entities	-	-
	businesses	-	-
	property, plant, and equipment	139	675
	investments	-	-
	intellectual property	-	-
	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing activities	(361)	(164)

ASX: SSH ¹ As per AASB107: Cashflow Statements, SSH Group has excluded non cash transactions from the cashflow statement, such as the acquisition of assets by assuming directly related liabilities or by means of a finance lease.

Date: 30 January 2024

Consolidated statement of cash flows		Current quarter \$A'000	Year to date (6 months) \$A'000
3.	Cash flows from financing activities2
3.1	Proceeds from issues of equity securities (excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debt securities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equity securities or convertible debt securities	-	(15)
3.5	Proceeds from borrowings	315	299
3.6	Repayment of borrowings	(780)	(2,630)
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	(466)	(2,346)

	Consolidated statement of cash flows	Current quarter \$A'000	Year to date (6 months) \$A'000
4.	Net increase / (decrease) in cash and cash equivalents for the period
4.1	Cash and cash equivalents at beginning of period	1,467	2,049
4.2	Net cash from / (used in) operating activities (item 1.9 above)	1,275	2,048
4.3	Net cash from / (used in) investing activities (item 2.6 above)	(361)	164
4.4	Net cash from / (used in) financing activities (item 3.10 above)	(466)	(2,346)
4.5	Effect of movement in exchange rates on cash held	-	-
4.6	Cash and cash equivalents at end of period	1,915	1,915

² As per AASB107: Cashflow Statements, SSH Group excludes from its cashflow non cash items.

Date: 30 January 2024

	Consolidated statement of cash flows	Current quarter \$A'000	Year to date (6 months) \$A'000
5.	Reconciliation of cash and cash equivalents at the end of the quarter to the related items in the accounts(as shown in the consolidated statement of cash flows)
5.1	Bank balances	1,915	1,915
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,915	1,915

	Consolidated statement of cash flows	Current quarter \$A'000
6.	Payments to related parties of the entity and their associates
6.1	Aggregate amount of payments to related parties and their associates 1 included in item 1	137
6.2	Aggregate amount of payments to related parties and their associates included in item 2	-
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.
1 These amounts comprise of fees paid to associated entities of the Directors of the Company during the quarter

Date: 30 January 2024

Consolidated statement of cash flows		Total Facility at Quarter End \$A'000	Amount Drawn at Quarter End \$A'000
7.	Financing facilities Note: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1	Loan and asset finance facilities	28,318	27,230
7.2	Credit standby arrangements	-	-
7.3	Debtor Funding Facility	4,000	3,129
7.4	Total financing facilities	32,318	30,359
7.5	Unused financing facilities available at quarter end		1,088
7.6	Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or

unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

SSH Group has a \$1.7m NAB Business Market Loan, through the Company's subsidiary Complete Equipment Australia Pty Ltd. National Australia Bank has a direct security over the Complete Equipment Australia Pty Ltd. The Business Market Loan is amortised monthly up to April 2027 and is subject to floating interest rates for the period of the loan.

Complete Equipment Australia also has a \$6.1m equipment loans with National Australia Bank that is secured against the assets acquired with the business in May 2022. This loan is fixed at 5.9%, with a term expiring May 2027. Further \$1.1m of equipment loans with National Australia Bank were secured against assets for hire, with terms expiring May, June, and August 2028. Interest rates applicable include 7.7%, 8.0% and 8.7%.

Asset acquisition during the quarter of Complete Equipment Australia Pty Ltd assets were financed through DLL. These financing agreements have fixed interest rates for the period of the loans.

The Company has several finance lease/hire purchase agreements, secured over light vehicles in its Tru Fleet business. Interest rates are fixed at the time of entry into the arrangement. The hire purchase agreement facilities are provided by Toyota Financial Services Limited, Nissan Financial Services and Daimler Financial Services. Acquisitions in the quarter were funded by Toyota Financial Services and Daimler Financial Services. The Company has access to a further \$0.3m in its facilities to fund further vehicle acquisitions which is sufficient to meet current capex forecasts.

Through its subsidiary Site Services Enterprises Pty Ltd (as trustee of the Company's unit trusts), the Company has an agreement with National Australia Bank for an advance against all trade receivables owed by its customers, (Debtor funding facility). The agreement secures the debtors to National Australia Bank, interest charges are variable linked to BBSY rates plus an agreed margin.

Funding is available based on total debtor balances and cannot exceed 80% of the debtor book. The total limit of the facility is \$4m as of 31 December, with the Company drawing down all available funds. It had \$0.9m in overall facility head room.

	Consolidated statement of cash flows	Current quarter \$A'000
8.		Estimated cash available for future operating activities
8.1		Net cash from / (used in) operating activities (item 1.9)	1,275
8.2	Cash and cash equivalents at quarter end (item 4.6) 1,915
8.3	Unused finance facilities available at quarter end (item 7.5) 1,088
8.4	Total available funding (item 8.2 + item 8.3)		3,003
8.5	Estimated quarters of funding available (item 8.4 divided by item 8.1)		N/A Cashflow positive
	Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.
8.6	If item 8.5 is less than 2 quarters, please provide answers to the following questions: Does the entity expect that it will continue to have the current level of net operating 8.6.1 cash flows for the time being and, if not, why not?
	Answer	N/A
	Has the entity taken any steps, or does it propose to take any steps, to raise further cash 8.6.2 to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer:	N/A
	Does the entity expect to be able to continue its operations and to meet its business 8.6.3 objectives and, if so, on what basis?
	Answer:	N/A
	Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be

answered.

Date: 30 January 2024

Compliance statement

This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. This statement gives a true and fair view of the matters disclosed.

Date: 30 January 2024 Authorised by: The SSH Group Ltd Board of Directors

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this quarterly cash flow 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 cash flow 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.
• 1. 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.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – e.g., Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 1. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.