Quarterly Activities/Appendix 4C Cash Flow Report

• Freedom Care continues to execute on its growth plans
• Expanding into the Queensland market
• Cash balance of $2.4 million at 30 Sept 2024

Freedom Care Group Holdings Limited (ASX: FCG) has released its Appendix 4C Cashflow Report for the quarter ended 30 September 2024 (Q1 FY25) along with a business update. The company's total service revenue was $8.732 million in Q1 FY25, up 11.5% on the prior quarter figure of $7.834 million. When annualised, the Q1 FY25 service revenue projects a total of $34.938 million for the year, which is 7.3% above the full-year revenue reported in FY24. Freedom reported cash receipts of nearly $8.7 million in Q1 FY25, which was below expectations due to a NDIS audit initiated in mid-September 2024 that resulted in a decrease of over $800,000 in cash receipts. The quarter also included an extra pay period, leading to an additional $850,000 in staff-related costs, and $300,000 in corporate income taxes related to prior periods. Excluding these one-off items, Freedom would have reported a positive 'normalised' operating cashflow of around $0.5 million, versus the reported figure of -$1.461 million. The company continues to deliver on its strategy of growing its market share in the NDIS service provider market, with a focus on meeting the requirements of 'complex' NDIS participants. Freedom is also in the process of expanding into the Queensland market and working to increase the number of houses it manages on the Central Coast of NSW.

If the Q1 FY25 service revenue print was repeated in each of the remaining three quarters of FY25, it would deliver a FY25 service revenue figure well up on that reported in FY24.

Freedom's growth prospects remain rock-solid as the company continues to implement an expansion strategy that focuses on the delivery of specialised care that will always be central to Australia's core NDIS ecosystem.