Freedom Care Group Holdings reports a modest cash increase to $0.5 million but continues to grapple with delayed payments from the NDIA, while exploring options to relist on the ASX.
- Cash balance rose slightly to $0.5 million at June 2025 quarter-end
- Administrator KPT Restructuring struggles to collect NDIA receivables
- No payments made to directors or related parties during the quarter
- Ongoing engagement with NDIA over payment delays
- Company exploring pathways to facilitate relisting on ASX
Quarterly Financial Snapshot
Freedom Care Group Holdings Limited (ASX – FCG) has released its Appendix 4C cash flow report for the quarter ended 30 June 2025, revealing a slight improvement in its cash position to $0.5 million, up from $0.4 million at the end of March. Despite this modest increase, the company remains under financial pressure as it continues to face significant challenges in collecting outstanding payments from the National Disability Insurance Agency (NDIA).
Ongoing NDIA Receivables Challenges
The company’s administrator, KPT Restructuring Pty Ltd, has been actively engaged in efforts to recover these receivables but reports ongoing difficulties. The NDIA has not been providing regular payments, and delays in responding to queries have further complicated the situation. Freedom Care’s directors are working closely with liquidators to supply the NDIA with requested information, aiming to expedite the payment process.
Corporate Governance and Cash Flow Management
Notably, Freedom Care did not make any payments to its directors or related parties during the quarter, reflecting a cautious approach to preserving cash. Operating cash flows remain negative, with significant outflows related to staff costs, administration, and corporate expenses. The company’s financing activities included a small loan from a director with no interest payable, indicating internal support amidst external funding challenges.
Looking Ahead – Relisting Prospects
Amid these financial headwinds, Freedom Care is actively exploring all viable pathways to facilitate a relisting on the ASX. While the company’s current cash runway is limited, ongoing engagement with the NDIA and potential capital raising efforts could provide a lifeline. However, the timing and success of these initiatives remain uncertain, leaving investors cautious but attentive to future developments.
Bottom Line?
Freedom Care’s path to recovery hinges on resolving NDIA payment delays and securing a successful relisting.
Questions in the middle?
- When can Freedom Care realistically expect to receive outstanding payments from the NDIA?
- What specific strategies is the company considering to facilitate its relisting on the ASX?
- How long can Freedom Care sustain operations with its current cash position and funding arrangements?