As SMS moves into an important growth phase for the Company, the group commissioned RaaS Advisory (“RaaS”) to produce an independent overview and valuation of the Company.

While it is based on data that supplied by SMS, the conclusions are theirs.

The Company notes that RaaS have elected to use a relatively conservative approach in valuing the company on a discounted cashflow basis.

While the Company might have a view that its future performance might exceed current baseline forecasts SMS acknowledges that this is a reasonable approach at this time.

The report incorporates and considers the Company’s delivery of a maiden profit at the EBITDA line in FY24 (Adjusted EBITDA $2.4m) and the June 2024 quarter ($1.2m). Research by RaaS confirms expectations that this momentum will continue in FY25 as key new products are brought to market and notes that final certification for the CVM crack detection solution is possible early FY2025, with an estimated initial target market of US$45m before other applications are considered.

It also outlines a short and medium term investment case for the Company, forecasting revenue growth for 2025 based on the research, performance against peers and provides a valuation based on a comprehensive set of factors for investors to consider.