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STERLING FIRST (AUST) LIMITED ("Sterling First" or the "Company") SHAREHOLDER UPDATE
There has been much activity within the Sterling First (Aust) Ltd group of companies and affiliated businesses since our most recent update of 20th April 2018. In recent months our affiliated business, Rental Management Australia, has successfully acquired a further 1,100 (circa) property managements in Wyndham Victoria, and a further 300 (circa) in Joondalup WA. Both of these acquisitions incorporated new branch offices for the business, which has strategically increased our footprint in both markets. As you would be aware, further rental management acquisitions are a fundamental revenue driver for the SFAL group. These new businesses are now well integrated and we commend the team on their diligence and hard work to make this happen in such an efficient manner. On the product innovation front; the retirement housing sector has been in sharp focus in recent times. Although our retirement product, Sterling New Life, is not comparable to the more traditional retirement housing products available, we always need to be vigilant in how our product is marketed and understood to accurately manage the positive differences of our unique product. Given the overwhelming support that has been shown for the Sterling New Life, we are currently consolidating our learnings and making further refinements to the product. This means that from time to time we suspend new reservations to make sure we are managing our current pipeline in the best interests of our tenants. We are currently in such a phase. The executive team has been working on some very exciting opportunities directly related to and in support of our activity in the seniors housing sector. We look forward to presenting this innovation in more detail in the coming months. Further to our executive team, we have in the past 2 months welcomed a new member to the team. Wayne Osterberg brings a significant amount of funds management and commercial experience to the businesses and has already added significant value in the development of the aforementioned opportunities and strategic approach, as well as further supporting our innovative 'can do' attitude and culture. This appointment is in support of the consolidation phase of the broader businesses to crystallise a consistent, accurate and relevant message to the investment markets as we move towards a proposed listing event on the Australian Securities Exchange (ASX). As a result of this detailed consolidation work undertaken in recent months, it is very clear that separate parts of the business have real market appetite in their own rights. We are working diligently to best position these opportunities to maximise benefit to all shareholders. This work along with the daily bureaucratic and regulatory obstacles certainly makes for a challenging process, however one that is being well managed by our executive team. We are confident that the final strategy and timing to the proposed [ASX] listing, to be announced shortly, will be comforting to our long-standing and loyal shareholders. Further supporting our progression towards a proposed listing event, we are pleased to advise that of the seven (7) audits required, the six (6) pre-acquisition company audits, of the entities that became Sterling First, have now been completed. This was a more complex and involved task than previously anticipated or advised, and the exemplary efforts of our internal finance team are to be highly commended. The completion of these audits now allows for the seventh (7th) to be finalised, being the consolidated accounts for Sterling First post-acquisitions, which covers the period 1 February 2016 to 30 June 2017. The audit is nearing completion and will be submitted for [audit] partner review next week. Upon sign off of the accounts, we will be sending out the annual financial statements to all shareholders, along with a notice of Annual General Meeting (AGM), to be held 21 days after sending the notice. We look forward to seeing you at the AGM to be announced shortly and providing further shareholder updates. Should you have any questions please contact our Investor Relations Officer, Brian Ruzich on 0418 906 007.
Yours faithfully, Ray Jones
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