Cellnet Group Limited announced that it has received verbal notification from Optus that it will not be renewing its mobile accessories supply agreement with Cellnet. At this time, further details are yet to be provided by Optus to Cellnet, including the transition arrangements and the termination date of the Agreement. In FY2021, sales from ongoing business under the current Agreement represented 8% of Cellnet's revenue. Prior to the allocation of operating expenses (including resourcing, marketing, financing, travel, insurance, and other indirect costs), the contribution to FY2021 net profit before tax from ongoing business under the Agreement was approximately $1.8 million. The Company intends to mitigate the non-renewal of the Agreement in FY2022 through the following initiatives: improved working capital utilisation, a reduction in inventory costs and accompanying release of cash that will occur when the Agreement's consignment model expires; pursuing new business opportunities including new supplier and franchise relationships in higher margin segments; and implementing initiatives to streamline operating costs.