• Freedom Care struggled with NDIA collections in Q4 2024
• Company appoints administrators KPT Restructuring Pty Ltd on 5 Dec 2024
• Cash balance declined from $2.4m to $0.6m in Q4 2024

Freedom Care Group Holdings Limited (ASX: FCG) has released its Appendix 4C Cashflow Report for the quarter ended 31 December 2024. The key highlights include:- Freedom Care struggled with collections from the NDIA in the quarter- The company appointed KPT Restructuring Pty Ltd as Administrators to the main business entity Freedom Care Group Pty Ltd on 5 December 2024- Cash balance declined from $2.4 million at 30 September 2024 to $0.6 million at 31 December 2024- Freedom recorded cash receipts of approximately $3.6 million for 2Q FY25, a significant decline from $8.7 million in Q1. This outcome was below management's expectations and was directly attributable to the NDIS audit commenced in mid-September 2024.During the quarter, management of Freedom Care Group Pty Ltd advised the Board of the resulting reduction in cash flow and the associated financial strain on the business. As a consequence, Freedom Care Group Pty Ltd was placed into Administration on 5 December 2024, with KPT Restructuring Pty Ltd appointed as Administrator.

KPT continues to engage with the NDIA regarding the recovery of outstanding receivables; however, the NDIA has not been providing regular payments. KPT remains actively engaged with the NDIA and has formally raised concerns regarding delays in responding to queries and the timing of payment of amounts outstanding.