Baumart : Quarterly Report & Appendix 4C - June 2022

For personal use only

ASX RELEASE

29 July 2022

MARKET UPDATE FOR QUARTER ENDED 30 JUNE 2022

BauMart Holdings Limited (ASX: BMH) ("BauMart" or the "Company") is pleased to present its quarterly cash report and operational update to 30 June 2022.

Group Results and Commentary on Appendix 4C

• Net operating cashflows for the quarter was negative at $657K due to the opportunity to forward purchase stock at a heavily discounted price. Equally, ongoing supply chain delays resulted in the Company re-investing cashflows into inventory build-up necessary to support sales and associated costs.
• Payments to Related Parties of the Company and their associates comprised executive directors' salaries and non-executive director fees of approx. $75K.
• At 30 June 2022, the Company had $237K cash at bank and $117K in available trade finance and overdraft facilities. The Company also currently holds an investment in listed securities with a market value of approximately $4.3M.
• Company expenditure for the quarter was in line with normal day to day operations in relation to staff costs and marketing, with the exception of increased payment for inventory.
• Reduced revenue growth for Q4 FY22 of $1.47M (Q4 FY21: $1.65M), a decrease of 11%.

Materials Handling Division

• Revenue for Q4 FY22 totalled $1.46M (Q4 FY21: $1.48M), a decrease of 2%
• Trading margins remained under pressure from spiking and unpredictable supply chain costs.
• Exorbitant port charges have significantly affected variable costs month to month.
• Delivery schedules from key supplier in Malaysia have improved however ongoing disruptive supply chains caused further delays.
• Delivery lead times remain unpredictable with customer expectations difficult to manage.

Source & Procure Division

• Revenue for Q4 FY22 totalled $15K (42 FY21: $163K), a decrease of 91%.
• The mining supplies project continues to gain traction with an increase of orders expected during FY23.

Building Materials Division

• There were no sales of building materials in Q4 FY22.
• Long lead times due to supply chain and production constraints affected the division's ability to capture revenue within the desired time frames.

Suite 3, 15 McCabe Street	BauMart Holdings Limited
North Fremantle, Western Australia 6159
T: [phone]	ABN 87 602 638 531
www.baumart.com.au

For personal use only

ASX RELEASE

29 July 2022

Other Activities

• The Company continued to receive recurrent income during the quarter from its managed services contract with a Perth-based industrial parts washer business.
• The Company has begun to significantly increase efforts to distribute the Washpod product, with positive signs of delivering on the its first project-based recurring income stream in FY23.
• The Company is looking to grow the projects arm of its business and continues to evaluate more opportunities within its network.

Strategic Business Review

As one result of the strategic business review the Company has announced the decision to sell its Eco Pallets business and has signed a binding agreement with APX Holdings Pty Ltd (refer announcement dated 23 June 2022). Shareholder approval is to be sought at an upcoming general meeting scheduled for 18 August 2022. Refer announcement dated 18 July 2022 for additional details on the notice of meeting and binding sale agreement.

The Directors are of the opinion that the divestment will allow the Company to reallocate its funding to other revenue generating activities that management has identified moving forward, with more information to be provided on this in future announcements.

This announcement was authorised by the Board of BauMart Holdings Limited.

For further information, please contact:

Ben Talbot, Executive Director

T: [phone]

1. [e-mail]

About BauMart Holdings Limited

BauMart Holdings Limited (ASX: BMH) is an Australian public company listed on the Australian Securities Exchange. The origins of the Company began with securing distribution partnerships with suppliers of building materials and its investment and leasing of automated glass-processing equipment. Since its listing in June 2015, the Company has diversified its business across a broad range of divisions including, but not limited to:

• supply of industrial products, including plastic material handling unit load devices;
• supply of building products, including premium volcanic natural stones;
• sourcing, procurement and end-to-end supply chain services; and
• managed services.

For personal use only

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

BAUMART HOLDINGS LIMITED
ABN	Quarter ended ("current quarter")
87 602 638 531	30 JUNE 2022

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	1,863	7,906
1.2	Payments for
	(a)	research and development	-	-
	(b) product manufacturing and operating	-	-
		costs
	(c)	advertising and marketing	(12)	(44)
	(d)	leased assets	-	-
	(e)	staff costs	(187)	(745)
	(f) administration and corporate costs	(150)	(461)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	327
1.5	Interest and other costs of finance paid	-	(25)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	293
1.8	Other (provide details if material)1	(2,171)	(7,814)
1.9	Net cash from / (used in) operating	(657)	(563)
	activities

1. Payments for inventory, lease payment obligations and other general working capital

2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities	-	-
	(b)	businesses	-	-
	(c)	property, plant and equipment	-	(962)
	(d)	investments	-	-
	(e)	intellectual property	-	-

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
	(f)	other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a)	entities	-	-
	(b)	businesses	-	-
	(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)1	-	953
2.6	Net cash from / (used in) investing	-	(9)
	activities

1. Other comprised of remaining payments for underground mining equipment project totalling $988K (refer ASX

Announcement dated 4 October 2019 for details on the Company's mining equipment project).

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of	-	-
	equity securities or convertible debt
	securities
3.5	Loans and borrowings	183	51
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	183	51
	activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

	period	703	750
4.2	Net cash from / (used in) operating	(657)	(563)
	activities (item 1.9 above)

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

For personal use only

Consolidated statement of cash flows	Current quarter	Year to date
		$A'000	(12 months)
			$A'000
4.3	Net cash from / (used in) investing activities	-	(9)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	183	51
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	8	8
	cash held
4.6	Cash and cash equivalents at end of	237	237
	period
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	237	703
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	237	703
	quarter (should equal item 4.6 above)
6.	Payments to related parties of the entity and their	Current quarter
	associates		$A'000
6.1	Aggregate amount of payments to related parties and their	75
	associates included in item 11
6.2	Aggregate amount of payments to related parties and their	-
	associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

1. Director's fees, salaries, and superannuation paid.

ASX Listing Rules Appendix 4C (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.