chairmans adress 25/10/2011

Another positive upbeat report on 25/10/2011

What changed so dramatically in 6 wks?

Why wasn't the market informed?

How did the 18% loss come about,so sudden?





Looking ahead


The Company remains cautiously optimistic for the 2011-12 year. Based on a realistic
outlook we have again put in place a conservative budget which targets a revenue
growth of 12.5% and a substantial increase in profitability.

As we advised in our Shareholders’ Newsletter in June 2011, a number of changes
have been made to the senior management team in the early part of the second half of
the financial year.
Flowing on from these changes the strategic decision was made to increase responsibility and accountability at state level, with each State Manager having
a greater control over the state’s revenue and profit growth.

The re-organisation of the
national branch operations has coincided with the appointment of a considerable
number of new sales related personnel in most states.

The Company expects that the
refreshing of the branch operations will enhance the Company’s presence and exposure
in the road safety market in each state and this should lead to a progressive increase in
sales revenue.



LOOKING AHEAD (cont’d)

Growth through improved manufacturing and sales
performance of acquisitions in Traffic Signals and
Lighting

Development of Strategic relationships

Growth through the development of a decentralised
business model of a Customer Focused Branch
network.

Increased Investment into Research & Development e.g.
new galvanised VMS trailer, new design Concrete
Barrier, Portable Traffic Lights


"The Company has commenced the year on a reasonably solid note. The order book as
at July 2011 was healthy particularly in the Civil installations portfolio in Victoria and
Queensland."


I would like to take this opportunity to thank the Company’s employees for their loyalty
and dedication to the business during a period of rapid change within the organisation.

I would also like to thank our shareholders for their continued support of Saferoads
Holdings Limited.

This has been a challenging year for Shareholders and I would like to
assure you that we are working hard to return the Company to a position of providing
reliable annual dividends and a restoration of shareholder value