Highlights

  • Total sales were $2.932 million, which the company says is $196,000 higher than the previous quarter.
  • Saferoads attributes the increase to additional senior product sales staff and extra sales capture resources.
  • Investing outflows were $61,000, comprising $48,000 for property, plant and equipment and $13,000 for intellectual property.
  • Financing outflows were $278,000, made up of $61,000 of borrowing repayments and $217,000 of dividends paid.

Saferoads Holdings (ASX:SRH) has reported a quarter of higher sales but negative operating cash flow for the three months to 30 September 2026, ending with cash of $1.890 million. The report is dated 28 October 2026 and authorised by the board.

Sales

Total sales were $2.932 million, which the company says is $196,000 higher than the previous quarter. General product sales, meaning sales to customers outside the On-Site Rentals Group, were $2.604 million, up $236,000 or 10 per cent. Saferoads attributes the increase to additional senior product sales staff and extra sales capture resources.

The Appendix 4C shows receipts from customers of $2.883 million for the quarter.

Cash Flow And Balance

Net cash used in operating activities was $292,000. The business states this mainly reflects the timing and nature of supplier payments. Within operating outflows, product manufacturing and operating costs were $1.819 million, staff costs $587,000, administration and corporate costs $616,000, leased assets $109,000 and advertising and marketing $59,000. Interest received was $22,000.

Investing outflows were $61,000, comprising $48,000 for property, plant and equipment and $13,000 for intellectual property. Financing outflows were $278,000, made up of $61,000 of borrowing repayments and $217,000 of dividends paid. The company notes a half-cent fully franked dividend was paid on 28 September.

Cash fell from $2.521 million at the start of the quarter to $1.890 million. That balance comprised $603,000 in bank balances and $1.287 million in call deposits. One presentational point: the form lists the opening figure of $2.521 million against the "net increase or decrease" line, while the calculated net decrease is $631,000.

Funding Position

Saferoads reports total available funding of $1.965 million, being cash plus $75,000 of unused finance facilities. On its own calculation, at the current operating cash burn that equals an estimated 6.7 quarters of funding. Because that is more than two quarters, the additional questions in the form were not required. Drawn facilities are a $337,000 motor vehicle finance loan at 7.96 per cent maturing in May 2031, while a $75,000 charge card facility is undrawn.

Product Developments

The business states the HV2 steel and concrete crash barrier received formal regulatory approval in its pinned format, and that the barrier can be used either freestanding or pinned.

It is also marketing its Chameleon range of trailers. These were built using product specification data acquired in the previous quarter, were fully manufactured in Australia, and were launched at prominent 4x4 shows. Saferoads says it has recruited two dedicated sales and business development professionals, is developing a dedicated product website, and is putting quality assurance protocols in place for manufacturing and sales. It expects orders received to date to show up in the next quarter, which means no Chameleon revenue is reflected in the September quarter figures.

Related Parties

Payments to related parties in operating activities were reported as $166,000. These covered the managing director's salary and superannuation, non-executive director fees, salary for associates of the managing director on normal employment terms, and office rent to a related entity at market rates. The itemised components in the report add to $165,000, and the document does not explain the $1,000 difference. Item 6.2 shows no related-party payments in investing activities.

What To Watch

The report is a quarterly cash flow and activities update rather than a full-year result, so it does not show profit. The company points to Chameleon orders flowing into the next quarter and to the effect of its added sales resources. The report does not provide revenue guidance, so any outlook beyond these statements would be speculation.