Ann: Appendix 4E and Annual Financial Report, page-7

I have been a holder for about 10 years. I have long been attracted by its seemingly low market cap (currently around just $8m) given that the company was making a profit of several million around 20 years ago. I have long thought that if it could “get its house in order” it could well do so again. After some years in which it seemed to struggle for strategic direction, the current Chairman, together with the creative and entrepreneurial CEO and founder, have in more recent times righted the ship, returning the company to profitability, albeit small ones. There does indeed seem to be some potential growth engines in the expanding rental business (now entering NSW) and international sales, which I had thought might be a real “game changer” . Although that’s been set back by Covid, the company is continuing to pursue permits in about a score of US states, so presumably this goal will be reactivated post Covid. Although I have to concede I’ve been saying this for some years now, I see potential for a profit of 2-3 million in the next few years, which seems out of kilter with the current market cap. Risks include quite a large dependence on the current CEO (the wheels fell off when he took a sabbatical at one point). A possible upside is a merger with a NSW entiry (Safe Directions) whose principal recently resigned as a SRH director a little mysteriously (although I may be being too speculative here!). Hope all that is useful…feel free to ask anything further.