Saferoads Holdings Limited (ASX:SRH) lodged its Appendix 4E preliminary final report for the year ended 30 June 2026. The unaudited report shows Revenue from continuing operations of $12,468,467, up 110%, and a profit from continuing operations of $711,389, compared with a loss in the prior year. It follows the May 2025 divestment of the company's RSR Business to On-Site Rental Group.

FY26 results

Revenue from ordinary activities from continuing operations was $12,468,467, compared with $5,949,589, an increase of $6,518,877. Profit after tax attributable to members from continuing operations was $711,389, compared with a loss of $923,415. Net profit for the period attributable to members was $711,389, compared with $4,345,522 in the prior year, which included $5,268,937 from discontinued operations. EBIT from continuing operations was $805,260, compared with a loss of $830,748.

The company attributed the improvement to increased revenue, in particular the sale of $5.7 million of products to On-Site Rental Group, disciplined cost management and improved operational performance across its core product sales activities. The largest cost lines included raw material, finished goods and logistics at $7.28 million, employee benefits at $2.14 million and Depreciation and Amortisation at $475,685.

Dividends

The company declared a final Dividend of 0.5 cents per share, with a Record Date of 9 September 2026 and payment on 28 September 2026, following an Interim Dividend of 0.5 cents paid on 27 March 2026. The report shows both as having a franked amount of 0.5 cents per share. The Dividend reinvestment Plan will not be available for the final dividend.

Balance sheet and net tangible assets

Cash and cash equivalents were $2,521,453 at 30 June 2026, compared with $3,495,765, a net decrease of $974,312. Total Assets were $9,611,055 and net assets were $5,259,083, compared with $8,579,341 and $4,716,332. Net Tangible Asset backing per ordinary share, including right-of-use assets, was 10.3 cents, compared with 10.8 cents.

Audit status

The financial statements are unaudited. The report states that the audit is progressing and that an unmodified audit report is anticipated once it concludes.

Income statement detail

Total revenue and other income from continuing operations was $12,563,822, including other income of $95,355. Costs included professional fees of $454,217, Marketing of $264,006, Warehouse costs of $181,662, IT and communications of $150,299, insurance of $197,580 and occupancy costs of $152,772. Finance costs were $93,871, compared with $92,667. No income tax expense was recorded in either year. The company's dividend reinvestment plan, registered on 9 June 2020, remains active for eligible shareholders but will not be available for the final dividend.

Risks and sector context

The figures are unaudited and could change before the final audited accounts. A substantial part of the revenue increase came from $5.7 million of product sales to On-Site Rental Group, the buyer of the divested RSR business, so the company's revenue depends in part on a single customer relationship. Cash fell over the year even as profit improved. The prior year's net profit included a gain or result from discontinued operations that does not recur. The report does not provide guidance on FY27 revenue or earnings.

What to watch next

Items to watch include completion of the audit, the final dividend payment on 28 September 2026, continued product sales to On-Site Rental Group, cash movements, and FY27 trading as the company builds on its core product sales activities.