Preliminary Final Report

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WestStar Industrial Limited Appendix 4E

Preliminary Final Report

WestStar Industrial Limited (the Company or WestStar) (ASX: WSI), an Australian industrial services company providing engineering, construction and mining services to the resources, energy and infrastructure sectors, is pleased to report on the Company's FY21 Preliminary Final Report.

Performance Highlights

• Revenue ~$71.8M, a 15% increase on the previous corresponding period
• EBITDA of $3,416,290
• This strong result demonstrated an EBITDA margin of 4.8%
• Contracts Awarded during the period of $72M
• Contracts Secured for FY22 of $185 million

*EBITDA is a non-AIFRS financial measure which is not prescribed by Australian Accounting Standards ('AAS')

Revenue

The Company achieved record revenue from ordinary activities of ~$71.8M a 15% increase on FY2020 ($62.5M). The contribution to total Group revenue by subsidiaries SIMPEC and Alltype Engineering was $38.69M and $33.08M respectively. Revenue for 2HFY21 of $46.9M was 88% higher than 1HFY21 ($24.9M). The resulting increase was primarily due to the timing and commencement of new project awards subsequently received after 31 December 2020.

The Company's delivery of second half year revenue of $46.9M was a record achievement and demonstrates the Group's ability to rapidly deliver large scale revenue. In addition, total FY21 sales of $71.8M represents yet another record full year revenue for the Group.

Earnings

It is with great commitment that the Group was able to deliver a record 2HFY21 revenue of $46.9M and FY21 revenue of $71.8M, contributing to underlying earnings for the year (EBITDA) of $3.416M. This strong result demonstrated an EBITDA margin of 4.8%. Unaudited preliminary NPAT for the year was $837K, a significant turnaround from its 1HFY21 result of (-$577K).

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Outlook

The 2021 year has seen an increased level of construction activity. The Company's decision to retain its white- collar expertise in a competitive labour market not only enabled the strong second half revenue delivery, but most importantly enabled the group to deliver and focus on new tenders for major projects. Strong early awards in FY22 reinforce the Company's strategic plan. This increased scale of revenues will provide further efficiencies in comparison to prior periods ultimately delivering significant growth in earnings over the coming year.

WestStar continues to demonstrate its capabilities in awards and delivery of large-scale projects.

The month of August delivered to SIMPEC a $145 million contract for the Iron Bridge Magnetite Project, for the construction of the Wet Process Plant in the Pilbara region of Western Australia. The award of the Wet Plant Project represents the Group's largest contract win to date and a remarkable achievement for SIMPEC. Continuing projects combined with this award has bolstered the groups forward FY22 order book to $185M, another record achievement for the Company. The Company expects this forward order book to continue to grow over the coming period.

Figure 1: WestStar Industrial Limited Revenue Performance.

WestStar Industrial Group CEO Mr Robert Spadanuda commented:

"Buoyant economic conditions forecast for the resources, energy and infrastructure sectors in the coming years continue to provide the company with an ever-impressive pipeline of opportunities."

"The 2021 financial year has seen a strong increase in construction activity and the forecast looks to be stronger in the 2022 financial year. Robust commodity prices continue to contribute to strong sentiment in the development of new projects across resources and Oil and Gas sectors which are expected to continue providing diverse opportunities to the group."

"Despite some border closures, the increasing vaccination rates expected by year end, provide the platform for the easing of restrictions with greater availability and diversity in an impacted labour market. WestStar Industrial remains optimistic of continued growth through this period. We remain committed to our strategic plan to deliver upon the growth strategy across the group despite the current uncertainty of COVID19."

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"We continue to develop our reputation as a well-respected, safe, cost competitive group delivering reliable solutions to our clients."

"We take this opportunity to acknowledge another successful year in the groups history and sincerely thank all of our employees across the group who continue to help deliver our projects in a safe and well- respected manner."

"The coming year will be one of the most exciting years we have embarked on and look forward to delivering greater results to our shareholders."

About WestStar

WestStar Industrial Limited (ASX: WSI) is an industrial, steel fabrication, installation and maintenance services company focussed on the resources, oil and gas, water and infrastructure sectors.

About SIMPEC

SIMPEC delivers high quality construction and engineering services with specialisation in structural mechanical and piping (SMP), electrical and instrumentation (E&I), concrete products and civil Services.

For more information: www.simpec.com.au

About Alltype

Alltype Engineering leverages off its fabrication capability and provides complete project solutions including SMP and E&I site installation, construction and maintenance services, across almost every industry in Australia. Alltype delivers consistent quality products and services that underpin its commitment to its vision "to be recognised as the preferred partner in delivering integrated fabrication, site and maintenance services with reliable, innovative and cost-effective solutions".

For more information:www.alltypeengineering.com.au

ASX release authorised by the Board of Directors of WestStar Industrial Limited.

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Rule 4.3A

Appendix 4E Preliminary Final Report

Name of entity

WESTSTAR INDUSTRIAL LIMITED

Brief explanation of any of the figures reported above necessary to enable the figures to be understood (item 2.6): Refer to item 12.

1. Statement of profit or loss and other comprehensive income
   Refer to attached unaudited Preliminary Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2021.
2. Statement of financial position
   Refer to attached unaudited Preliminary Consolidated Statement of Financial Position as at 30 June 2021.
3. Statement of Cash flows
   Refer to attached unaudited Preliminary Consolidated Statement of Cash flows for the year ended 30 June 2021.
4. Statement of changes in equity
   Refer to attached unaudited Preliminary Consolidated Statement of Changes in Equity for the year ended 30 June 2021.

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8. Details of dividend or distribution reinvestment plans in operation are described below:

N/A