Hiremii : Appendix 4D and 31 December 2021 Interim Report

	ASX Announcement	28 February 2022
only	Interim Report H1 FY22 & Appendix 4D
Hiremii delivers strong growth in revenues and enhances
		scale following completion of Inverse Group acquisition

Technology-drivenfull-service labour hire and recruitment company Hiremii Limited
(ASX:HMI) ("Hiremii" or "the Company") is pleased to provide its Half Year Report and
Appendix 4D for the six months ended 31 December 2021 (H1 FY22).
use
Highlights
All figures A$ unless otherwise stated
personal	• Revenue in H1 FY22 of $3,828k increased by 9.1% on the prior comparative period
	("pcp") (H1 FY21 revenue: $3,505k) and by 11.3% half-on-half("H-o-H") (H2 FY21
	revenue: $3,366k);
• Recruitment client base up to 100 clients, 40 of whom are active;
•	Completion of acquisition of Perth-based Inverse Group Pty Ltd ("Inverse")
	announced on ASX on 24 November 2021 with integration to complete quickly in
	Q3 FY22;
• New Executive leadership team in place with simplified organisation structure and
	clear focus for growth going forward into 2022;
• On track to deliver run-rate cash cost reduction worth approximately $100k per
	month by the end of Q3 FY22, once integration completes, including reduced cash
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	remuneration for Non-Executive Directors in preference for share-based
	remuneration.
• Beta testing of new Shortlistmii product offer in completion phase and ready to
	move to live customer trials with two potential target clients in Q3;
•	Cash balance at 31 December 2021 of $1,773k after completing the first tranche

payment for the completion of the Inverse acquisition. This excludes $747k of cash raised (nett of costs) from the successful placement of shares announced to ASX on 10 January 2022 and $441k raised (nett of costs) from the Share Purchase Plan ("SPP") on 21 February 2022.

Hiremii Limited ACN 642 994 214 - Ground Floor, Building B, Garden Office Park,

355 Scarborough Beach Road Osbourne Park WA 6017 t. 1300 280 061 e. [e-mail]

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Commenting on the achievements over the last six months, recently appointed Managing Director and previous CEO of Inverse, Andrew Hornby, commented that "Despite tough ongoing Covid-related restrictions on labour movement, Hiremii delivered growth in the onlyfirst six months and has significantly enhanced its scale through the acquisition of Inverse

late in the second quarter of FY22.

We are continuing to focus on delivering a best-in-class recruitment and payroll solution to clients in the energy, resources, and digital sectors.

Our margin improvement strategy is under way with the transfer of contractor management to our in-house system enabling better control, communication, and overall performance. This will help underpin future growth as the unit works closer with sales and

useaccount managers to ensure accuracy and efficient problem resolution.

With our integration complete this should enable us to focus outwardly on client engagement and sales activity with existing and target clients.

In parallel, we are working with our partners to progress the initial module in our technology platform to completion and in a deployable position.

personalLooking ahead, we are excited to be ready to launch Shortlistmii to our client base in the coming months as our next growth strategy for 2022 and beyond. This is the first service

offer from the world-class Hiremii AI-driven recruitment management platform, which will provide our clients with significantly increased efficiency and effectiveness in their own recruitment processes."

Financial Update

(Note - quarterly financials are unaudited)

Revenue from contracts with customers in the first half of financial year 2022 of $3,828k increased by 9.1% on the prior comparative period (H1 FY21 revenue: $3,505, with one month of new revenue from Inverse for December 2021 post acquisition helping to offset

Fora reduction in Hiremii revenues mainly due to the loss of the UGL meter reader contract in NSW (as communicated on ASX on 18 November 2021). Revenue in H1 FY22 also increased H-o-H by 11.3% versus H2 FY21 revenue of $3,366k, helped by the addition of one month of new Inverse revenue in December 2021.

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Quarterly Revenue ($'k, unaudited)

only	2,500
2,000
1,500
1,000
500
0
Q1 FY21	Q2 FY21	Q3 FY21	Q4 FY21	Q1 FY22	Q2 FY22
	The strong growth in Q2 FY22 revenue helped offset the lower revenue reported in Q1
	FY22 due to Covid lockdowns.
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The main driver for growth in H1 FY22 continued to be increases in active recruited contractors for the Company's clients. Following the acquisition of Inverse, Hiremii now also has a much more diversified client base with over 100 clients, 40 of whom are active.

The balance of inactive clients provides Hiremii with an opportunity to grow contractors personalonce Covid related labour movement restrictions start to ease in 2022.

The half year loss for the consolidated entity after providing for income tax amounted to $2,207k (31 December 2020: $1,651k). Gross margin improved in line with revenue growth. Staff costs in recruiting increased to $623k from $449k in the prior comparative period.

A portion of the UGL contract was not extended past early December 2021 as announced on 18 November 2021. This portion of the contract entailed quarterly revenue of approximately $1.3m and gross margin of approximately $30.7k. Overheads were reduced by $59.0k per quarter in response.

Inverse Group contributed one month of revenue to the Group after acquisition, amounting to $1,161k with a gross margin of $129k (11.2%) and net margin of $16k (1.4%).

A restructuring provision of $142k was recognised in relation to the integration of the Inverse Group and Oncontractor businesses.

ForOther non-recurring costs for the period included impairment of assets of $94k (note 6) for the right of use assets on leases for offices no longer in use, and acquisition and transaction costs of $74k (note 4) related to the Inverse Group transaction.

Business Activities Update

The Company continues to focus on the strategic initiatives as set out in its IPO Prospectus in 2021 and more recently in its market update to the ASX on 19 January 2022.

Near-term Focus - Integration & Launch of Shortlistmii SaaS Product

The near-term focus for the company in Q3 FY22 is predominantly two-fold. The newly

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established leadership team are currently focused on quickly completing the integration of the two Hiremii and Inverse recruitment businesses and brands.

Against this target, the Company is pleased to report that the consolidation of the two- onlyemployee recruitment and support teams is now complete, with all WA staff now located in one central office in the main CBD of Perth. The reorganised account management team will focus predominantly on providing ongoing recruitment services to existing clients through the Inverse brand in 2022. Property consolidation of unused offices is also

underway and will help to lower future costs and cash burn once completed in H2 FY22.

In addition, an historic outsourced payroll supplier arrangement for contractors is currently being wound down to improve overall gross margin by approximately +2%. However, this usewill negatively impact working capital by a one-time working capital outflow of

approximately $300-400k in H2 FY22.

In total, run-rate cost savings worth approximately $100k per month are expected to be delivered by the end of Q3 FY22, once the integration process completes. These savings will help to reduce the Company's current operating cost cash burn rate by approximately

one third in future periods. Some one-off integration delivery costs totalling approximately personal$159k (for redundancies, make-good and other items) are expected to be incurred out of

H2 FY22 cashflows and have been provided for in the H1 FY22 financial results.

In parallel to integration, Hiremii's brand will begin to be promoted to both existing and new clients as the AI-driven SaaS offer of the Company at the back end of this quarter. The first new product offer called Shortlistmii will be piloted with a small number of clients to live-test and fine-tune the product offer.

Shortlistmii is an express candidate shortlisting, matching and screening service running on Hiremii's powerful AI-driven recruitment technology platform. The Shortlistmii service uses AI technology to screen candidate CV's against client job scope skill, experience and personality requirements, providing a shortlist in a fraction of the time it would normally take to screen, review and match large volumes of applications to client role requirements. Once live pilot-testing is successfully and substantially complete, Shortlistmii will be launched for sale in Q4 FY22.

For

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Longer Term Focus for 2022 & Beyond

Looking further ahead, Hiremii will focus on the key growth initiatives outlined in the Company's IPO prospectus through 2022.

onlyThe Company will continue to drive business development and sales and marketing initiatives to acquire new clients for existing recruitment services across both existing as well as some potential new favourable sectors like, for example, the Healthcare sector. The strategy will concentrate on growing a higher margin, lower risk business profile and thus increasing white collar contractors and placements and reducing blue collar contractors. The Inverse Group is expected to continue to scale in terms of customers and revenue per customer.

useThe Company will seek to expand its service offers to clients through the broader development and commercialisation of its state-of-the-art recruitment technology platform. Critical processes in the standard recruitment process of many organisations such as assessment, interview, verification, reference checking and offer / agreement personalisation are in development for launch to clients in 2023 and beyond.

personalIn addition, Hiremii will consider opportunities to expand geographically to New South Wales and Victoria in the second half of 2022, Covid conditions permitting. This expansion

opportunity will be based on a sound business case and likely need fewer Covid restrictions on labour movement than those currently in operation across Australia.

This announcement has been approved by The Board of Directors of Hiremii.

Ends

About

Hiremii Limited (ASX:HMI) is a technology-drivenfull-service recruitment company with two core business components; Hiremii Technology, a cloud-based platform which uses machine learning Forand artificial intelligence to remove the tedious manual tasks associated with the recruitment and onboarding process, pre-vetting and shortlisting candidates based on employers' specific requirements, and Inverse Group, a growing recruitment business that provides specialist white

collar recruitment services to the energy, resources and technology sectors.

To learn more please visit: www.hiremiigroup.com Investor Enquiries: [e-mail]

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