Swift : Quarterly Activities/Appendix 4C Cash Flow Report

ASX RELEASE

22 July 2022

ASX:SW1

Swift Q4 Activity Report and Appendix 4C

Swift is pleased to announce the Activities Report and Appendix 4C Cash flow Report for the quarter ended

	30 June 2022.
	Q4 Highlights
only	• $3.75m cash balance.
use
• $4.4m net debt balance.
• $18.5m revenue for FY22 (unaudited), 5% increase over FY21.
• $5.7m cash receipts during period, Positive operating cashflows of $0.5m.
• Secured $1.5m Aged Care contract with new partner Hubify.
• $1.4m in new project wins in Mining and Resources.
personal	Cash Flow Summary
		Q1-Q3	Q4	YTD
		$ million	$ million	$ million
Opening Cash	3.9	3.7	3.9
Cash from operations	0.6	0.5	1.1
R&D refundable tax offset	1.5	-	1.5
Sale of MXO Shares	0.4	-	0.4
Government Grants	0.1	-	0.1
Acquisition and implementation of casting technology	(0.6)	(0.4)	(1.0)
Interest Payments	(0.6)	(0.2)	(0.8)
Relocation of Perth and Sydney Offices	(0.3)	-	(0.3)
Lease payout and make good costs on offices	(0.1)	-	(0.1)
Reduction in Creditor position	(0.7)	-	(0.7)
Increase in Inventory - casting solution/supply chain risk mitigation	(0.5)	0.1	(0.4)
	Closing Cash	3.7	3.7	3.7
	FY22 Revenue
For

Swift is pleased to announce that it has achieved a 5% increase in revenue during FY22 to $18.5m (unaudited). Swift has continued to target existing and new clients with its market leading Swift Access platform and its integrated casting solution in the Mining, Aged Care and Government sectors. During the period Swift targeted projects in both Mining and Aged Care that generate longer term recurring revenue in FY23 and into future periods. Swift has already secured $2.9m in project installation revenue for FY23 that is expected to lead to increased recurring revenues for the business.

ASX RELEASE

22 July 2022

ASX:SW1

Operations

onlyIn Q4 Swift announced its new partnership with Hubify (ASX:HFY) in the Aged Care sector with a multi- facility multi-year deal worth $1.5m. The deployment of these sites is expected to occur in FY23. Swift also secured $1.4m in project wins in Mining and Resources which will lead to further recurring revenue upon delivery of the project installation works.

During the period Swifts sales and marketing teams have attended and exhibited at various Aged Care conferences around Australia to identify prospective clients and continue to raise the profile of Swift as a

usetechnology partner for Aged Care providers.

Cash Flow Commentary

Net Cash received from operating activities for the June quarter was $0.5m, headlined by cash receipts from customers of $5.7m, cash receipts for the year totalled $20m. During the period $5.25m was spent personalon operating costs consisting of $3.1m to deliver revenues during the period, staff costs of $1.4m, dministration and corporate costs of $0.5m, advertising and marketing of $0.05m and net interest

expenses of $0.2m.

Net cash used in investing activities were $59,000 for capital purchases and $339,000 for internal product development including the finalisation and roll-out of Swift's casting technology.

Net cash used in financing activities for the current quarter were $36,000 for office leases.

Related party payments for the quarter were $172,000 comprising wages for Executive and Non-Executive directors.

The closing cash position of $3.7 million reflects a period of cash stability for the business. ForSwift operated in the one operating segment during the quarter.

Q1 Outlook

The delivery of $2.9m in contracted work will commence in Q1 FY23. Additionally, cashflow is expected to be affected by the purchasing of further inventories in order to meet increasing demand of the Swift Access platform and to mitigate against any supply chain risks. Swift will continue to actively pursue its pipeline of subscription opportunities in Mining and Aged Care to build upon its recurring revenue base during the period.

ASX RELEASE

22 July 2022

ASX:SW1

For personal use only

About Swift

Swift is a specialist technology company delivering network infrastructure, premium

entertainment and communications across Mining and Resources, Residential Aged Care, Retirement Living,

Government and other sectors.

We connect and engage communities through entertainment and communications solutions.

This announcement was approved and authorised for release by the Swift Board.

For more information, please contact:

Brian Mangano

CEO & Managing Director

[phone]

[e-mail]

Name of entity
Swift Networks Group Limited
ABN		Quarter ended ("current quarter")
54 006 222 395		30-Jun-22

only
	Consolidated statement of cash flows	Current quarter	Year to date
				(12 months)
			$A'000	$A'000
	1	Cash flows from operating activities
	1.1	Receipts from customers	5,702	19,978
	1.2	Payments for
use		(a) research and development	-	-
	(b) product manufacturing and operating costs	(3,094)	(12,101)
		(c) advertising and marketing	(56)	(123)
		(d) leased assets	-	-
		(e) staff costs	(1,395)	(6,016)
		(f) administration and corporate costs	(486)	(1,511)
	1.3	Dividends received (see note 3)	-	-
	1.4	Interest received	13	63
personal	1.5	Interest and other costs of finance paid	(233)	(850)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	100
	1.8	Other (includes R&D tax claims and office relocation costs)	-	1,468
	1.9	Net cash from / (used in) operating activities	451	1,008
	2	Cash flows from investing activities
	2.1	Payments to acquire or for:
		(a) entities	-	-
		(b) businesses	-	-
		(c) property, plant and equipment	(59)	(337)
		(d) investments	-	-
		(e) intellectual property	-	-
		(f) other non-current assets (product enhancement)	(338)	(1,041)
	2.2	Proceeds from disposal of:
		(a) entities	-	-
		(b) businesses	-	-
For		(c) property, plant and equipment	-	-
	(d) investments	-	-
	(e) intellectual property	-	-
		(f) other non-current assets	-	-
	2.3	Cash flows from loans to other entities	-	-
	2.4	Dividends received (see note 3)	-	-
	2.5	Other (provide details if material)	-	450
	2.6	Net cash from / (used in) investing activities	(397)	(928)

Consolidated statement of cash flows	Year to date
	(12 months)
$A'000	$A'000

	3	Cash flows from financing activities
only	Proceeds from issues of equity securities (excluding	-	-
	3.1	convertible debt securities)
	3.2	Proceeds from issue of convertible debt securities	-	-
3.3	Proceeds from exercise of options	-	-
		Transaction costs related to issues of equity securities or	-	-
	3.4	convertible debt securities
	3.5	Proceeds from borrowings	-	-
	3.6	Repayment of borrowings	-	-
	3.7	Transaction costs related to loans and borrowings	-	-
	3.8	Loan to key management personnel	-	-
3.9	Repayment of leases	(36)	(207)
	3.1	Net cash from / (used in) financing activities	(36)	(207)

use	4	Net increase / (decrease) in cash and cash
	equivalents for the period
4.1	Cash and cash equivalents at beginning of period	3,732	3,877
personal	4.2	Net cash from / (used in) operating activities (item 1.9 above)	451	1,008
4.3	Cash and cash equivalents at end of quarter (should equal
	Net cash from / (used in) investing activities (item 2.6 above)	(397)	(928)
	4.4	Net cash from / (used in) financing activities (item 3.10 above)	(36)	(207)
	4.5	Effect of movement in exchange rates on cash held
	4.6	Cash and cash equivalents at end of period	3,750	3,750
	5	Reconciliation of cash and cash equivalents	Current quarter	Previous quarter
		at the end of the quarter (as shown in the consolidated	$A'000	$A'000
		statement of cash flows) to the related items in the accounts
	5.1	Bank balances	3,750	3,732
	5.2	Call deposits	-
	5.3	Bank overdrafts	-	-
	5.4	Other (provide details)	-	-
For	5.5	item 4.6 above)	3,750	3,732
6.2	2
	6	Payments to related parties of the entity and their associates	Current quarter
				$A'000
	6.1	Aggregate amount of payments to related parties and their associates included in item	172
	1
		Aggregate amount of payments to related parties and their associates included in item
	Payments to	directors for wages and entitlements totaled $172k