Ann: Quarterly Activity and Cash Flow Reports, page-2

Well done to the ENA team — producing a record quarter at the top-line and bottom-line. Also appears that the Australian expansion is heating up. During the quarter, Ensurance Australia appointed Andrew Hookings as National Manager – Casualty & Environmental Risks in Sydney. This role will commence in October of this year. I like their expansion/diversification strategy of the product set outside professional and financial risks insurance products.

In the space of 1.5 years, the ENA Australia business has grown from 1 office in Adelaide to multiple offices in Sydney, Melbourne, and Perth, all whilst remaining cash flow positive! I personally believe there is a solid chance that ENA will be a dividend-paying stock in 3-5 years' time based on the strong and improving margins of the ENA Australia business, the discipline towards profitability being shown and the fact that Tom Kent himself is the company's largest shareholder – thus dividends provide a way of returning some of the business profits back to his pocket (and that of shareholders).

JUNE 2022 Quarterly Report:
Ensurance set to announce maiden annual profit after posting fourth consecutive quarter of positive net operating cash-flow

Growing demand for specialist insurance products, in conjunction with an expanded Australian operation, results in another strong quarter

Highlights

• FY22 revenue rises to ~$7.2M, a 61% increase over FY21.
• FY22 unaudited net profit of ~$224K compared to a $1.3M loss for FY21.
• Strong June 2022 quarter resulting in $2.2M revenue (March 2022 quarter: $1.46M).
• Gross Written Premium (GWP) of $57M for FY22 and $16M for the June Quarter.
• Debt-free following repayment of the $1M unsecured loan.
• Expanded Australian operations with the opening of a Melbourne office joining established offices in Sydney, Melbourne, Adelaide and Perth.
• Strong business outlook with Australian revenues underpinned by recent 3-year contract with Liberty Specialty Markets.
• Subsequent to quarter-end, Ensurance signs a non-binding term sheet to sell its UK operations to PSC Insurance (ASX: PSI) for A$8.2M; The sale will allow Ensurance to focus on the immense growth opportunities in Australia.