Australian Equities

Dear Investor,

We provide this monthly report to you following conclusion of the month of April 2025.

The TAMIM All Cap Fund was up +2.33% (net of fees) during the month, versus the Small Ords up +1.84% and the ASX300 up +3.60%.

The month of April saw extreme volatility on markets as the new Trump tariffs were announced. To put this volatility in perspective, during the second week of April, the US markets experienced both their 10th worst one day selloff in history and the 3rd best one day rally, all in the space of 3 days!

In our last month’s report during peak market turmoil we wrote:

“So should Australian investors be concerned? We don’t think so and in fact we believe this is just another opportunity to take advantage of short term noise and deploy funds into the market”

“We do also foresee negotiations between most countries and the US to lead to favorable trade deals and this will provide so called “positive newsflow” for markets over the next few weeks and months. Eventually China and the US will reach some agreement that makes sense for both countries.”

Looking back and so far it was the right call with US/China agreeing to a temporary truce and to negotiate in good faith whilst initial tariff deals began coming out. Markets rebounded strongly to finish the month up, versus down -10% at one point.

This highlights 2 important aspects of investing:

Selling during market panics means missing out on the recovery rallies that happen very quickly. Missing out on these “best days of the year” means mediocre returns long term.
The importance of blocking out noise and headlines and focusing on the fundamentals of the underlying companies we hold.

In the midst of all this tariff noise a very important commentary by Microsoft was missed by investors – The artificial intelligence (AI) sector is experiencing a transformative surge, reminiscent of the internet revolution of the early 1990s, driven by the increasing use of AI tokens—units of data that fuel AI models for processing and generating text.

A recent Microsoft report underscores this momentum, revealing that over 100 trillion tokens were processed in the last quarter, with a record 50 trillion in April alone, marking a fivefold year-over-year increase. This exponential growth in token usage signals a robust future for AI-driven technologies.

We believe the “ChatGPT” moment 2 years ago is equivalent to the “Netscape” launch in the early 1990s which marked a long bull market and brought significant innovation and growth from the proliferation of the internet.

We believe AI is a significantly greater innovation than the internet and will lead to immense productivity in various industries, expand autonomous driving globally, launch humanoid robots, accelerate healthcare research and even make space travel more accessible over the next decade and beyond.

This tech revolution will drive investment, new company creation and economic growth. This will benefit markets and valuations. Investors don’t need to be directly invested in AI companies but rather own businesses that can keep growing revenues and profits. We are confident the fund portfolio holdings are set to benefit from this over the next few years. As an investor – Make sure you’re not left behind.

Finally we provide a brief commentary on portfolio updates during the month in the portfolio section of the report. We look forward to providing further updates in our next monthly report in June.

Sincerely yours,

Ron Shamgar and the TAMIM Team.

Austco Healthcare (ASX: AHC) announced two major developments in April that support its strategic growth and global expansion in healthcare communications technology.

Austco entered into a binding term sheet to acquire New Zealand-based G&S Technologies, a provider of integrated nurse call and security systems. The acquisition, valued at 3.5x EBITDA, includes an upfront payment of NZ$7.97 million and an earnout based on future performance. G&S generated NZ$22.9 million in revenue and NZ$2.9 million in EBITDA in the 12 months to March 2025. This move aligns with Austco’s strategy to expand direct sales in strategic regions, unify offerings for cross-border clients, and enhance its integrated communication solutions.

A week later Austco announced a multi-year, AUD $3.4 million contract with Angeles Health System in Mexico. The agreement covers the deployment of nurse call and infant protection systems across three hospitals. It includes installation, five years of technical support, software updates, and training. Revenue recognition will span FY25–FY27, with continued support into FY29. This win strengthens Austco’s footprint in Latin America and showcases its ability to deliver scalable, mission-critical solutions globally. We estimate FY26 Ebitda of $16 million or EPS of 2.6 cents. We believe the stock is worth 40% more.

Energy One (ASX: EOL) is a small-cap company is not only revolutionising energy trading but also positioning itself as a foundational pillar of the global renewable energy transition. With a unique integrated platform, significant European expansion, and a strong financial and operational track record, Energy One offers investors a compelling entry point into the evolution of energy markets.

Founded 17 years ago, Energy One has evolved from a niche Australian software provider to a global leader in energy trading and risk management platforms. The company, led by CEO Shaun Ankers, has navigated the extreme volatility caused by global disruptions, notably the Russian invasion of Ukraine, and emerged stronger, solidifying its role as a mission-critical partner for energy market participants.

Energy One’s platform supports clients across Australia and Europe, delivering seamless integration across the entire energy trading lifecycle, from trade initiation to risk management, settlement, and regulatory reporting. This comprehensive capability increasingly differentiates it from competitors who specialise in narrower market segments.

Energy One’s integrated “one-stop-shop” software platform addresses the complexities of modern energy markets. Its end-to-end service model is particularly well-suited to the challenges posed by intermittent renewable energy sources, real-time pricing, and evolving regulatory frameworks.

By offering a full suite of energy trading solutions, Energy One enables utilities, energy retailers, and independent power producers to optimise trading, manage risks, automate settlements, and remain compliant. As energy markets grow more complex, the demand for holistic platforms like Energy One’s is set to expand significantly.

Energy One’s financial results for the first half of 2025 showcase robust operational strength:

• Annual Recurring Revenue (ARR) increased 18% year-on-year
• 53 new software installations completed
• Operational margins improved through strategic restructuring
• Consistent 15-20% revenue growth targeted

The company maintains an impressive customer profile, with average contracts ranging from $150,000 to $200,000, and enterprise clients capable of generating up to $1 million in initial-year revenues. Importantly, the company’s European revenue share has grown from zero to 56% over recent years, significantly de-risking its revenue base and enhancing scalability.

Energy One is not resting on its laurels. The company is investing heavily in future-proofing its platform through:

• Integration of Artificial Intelligence to enhance predictive analytics and automation
• Development of automated trading platforms to streamline operations
• Strengthening cybersecurity to protect critical infrastructure
• Offering 24/7 operational support to cater to the needs of global energy traders

This commitment to innovation positions Energy One as more than a software provider, it is a strategic partner for energy market participants navigating the renewable revolution.

Energy One’s strategic growth pillars include:

• Optimising pricing structures to enhance margins
• Improving sales effectiveness and customer acquisition
• Expanding market presence, particularly across European markets
• Developing tailored solutions for emerging independent power producers and market entrants

With low current European penetration (~10%), the addressable market opportunity remains vast.

Management has articulated clear and measurable goals:

Expand cash EBITDA margins from 16% to 30% by FY27
Maintain consistent organic revenue growth of 15-20%
Continue developing and deploying industry-leading technology
Capitalise on the accelerating global shift to renewable energy

If the company achieves these milestones, we assess an intrinsic valuation of over $20.00 per share is realistic.

Energy One ticks all the fundamental boxes sought by discerning investors:

• Founder-led leadership with strong alignment to shareholders
• Profitable and growing with high recurring revenue visibility
• Robust balance sheet and scalable business model
• Positioned at the nexus of the global energy transition

In a sector characterised by disruption and rapid change, Energy One offers a rare combination of technological edge, operational excellence, and strong secular tailwinds.

Energy One exemplifies the type of high-quality small-cap business investors should seek when targeting exposure to the global energy transition. It is profitable, founder-led, growing its market share, innovating continuously, and addressing a critical need in the energy trading ecosystem.

For investors seeking technology-enabled leverage to renewable energy trends—without taking on the high risks associated with pre-revenue green tech startups—Energy One is a compelling proposition.

As a strategic enabler of the new energy economy, Energy One deserves close attention.