Ann: FY23 full year results presentation, page-5

Do not disagree with the summary however, this extends to HFY, FSG also

These micro ICT/Telco's need scale for investors to pay attention. I believe all of the Companies are trading below current market transaction values, I suspect as a result of not being at scale or inconsistent performance. They should be talking to each other about how merging would be a better outcome for shareholders (for disclosure I am an HFY shareholder, not a shareholder of CCG or FSG however have followed them closely and reviewed the annual reports.

Combine 3 businesses below all in similar markets and would complement each other. You get a business with Rev $130m+, EBITDA $15-$20M post synergies reduction of 3 Boards and Executives to 1 and reduction of 2 sets of listing fees. The merger would remove the debt and open the business up for further acquisitions. This business alone would be a good target for one of the larger players in the market.

If you assumed the 8 times multiple for CNW you get a Market cap of $120-$160 depending on synergies. The current combined market cap is $69m. Looking at this the combined Executive and board spend is a total of over $6m+ assuming $2m in listing and compliance costs which is around $8m in total. You could save $ 5m+ (my estimate assumes costs of $3m post-merge which is reasonable given ATA Executive and Board Costs are $1.4m to run a company much larger) ensure you have strong leaders and this is before you get synergies from systems and service integration an implied $40m (5m X 8) uplift at current transaction values.

• HFY Strong Sales and Lead Geb Capability, High Margin 74% has restructured in the last year 74% of revenue is recurring.
• CCG Solid tech platform team has restructured in the last year and is experiencing growth in team product. Could cross-sell the team's product to other companies
• FSG Great regional presence and strong infrastructure income coming through. The business has some long-tail contracts and a pipeline of signed sales to deliver in the mining sector.

All of the above have either restructured, impaired prior acquisitions or finished an investment cycle they are ready to perform.

Would love to get some feedback on my analysis.



The below is sourced from the annual reports for FY23