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big upgrade Tox Free Solutions Limited – Appendix 4C and Profit Forecast
• Cash Balance of $4,357,000 as at 30 June 2006
• Full year profit of $5,030,062 (EBITDA) for financial year end 30 June 2006 (unaudited)
• Forecast base case profit of $8,000,000 (EBITDA) for financial year ending 30 June 2007
Please find attached the appendix 4C showing a cash balance at 30 June 2006 of $4,357,000. This cash balance does not include $398,000 which was due from customers during the June quarter, which was not received until July 2006. The balance is also after $983,000 of capital expenditure during the June quarter (a total of $2,114,000 in capital expenditure for the year).
Operations during the quarter resulted in a profit of $1,588,725 (EBITDA) with a full year profit of $5,030,062 (EBITDA). The profit result confirms Tox Free’s ability to maintain and increase organic growth across the existing operating divisions. The continued growth can be attributed to a combination of:
• The increased number of services offered by the company to our clients;
• Greater market share; and
• Synergistic cost saving benefits through cross selling across the divisions.
Tox Free is also pleased to announce it is forecasting a base case profit for the financial year ending 30 June 2007 of $8,000,000 (EBITDA). The board is confident the base case profit will be achieved through further organic growth, planned upgrades of existing operations and the recent acquisitions of Grime Fighters in Kalgoorlie (effective 1 August 2006) and Specialized Tank Cleaning Services in Henderson (effective 1 July 2006). Tox Free’s five strategically located facilities around Western Australia provide the Company with stable and robust structure to expand its market share and increase organic growth in the Industrial Waste Management and Industrial Services sector.
TOX FREE SOLUTIONS LIMITED
ABN 27 058 596 124
Operational Office: Registered Office:
Lot 4, Mason Road Level 2, 45 Stirling Hwy
Kwinana WA 6167 Nedlands WA 6009
Tel: (61 8) 9439 2362 Tel: (61 8) 9389 8799
Fax: (61 8) 9439 2363 Fax: (61 8) 9389 8327
Postal Address: Website:
PO Box 108 www.toxfree.com.au
Kwinana WA 6966
The Company continues to focus its business plan on the Industrial Waste Management and Industrial Services sector and continues to explore further complimentary acquisitions that will contribute to Tox Free’s financial position and cement Tox Free’s position as a leader in the management of hazardous and industrial waste in Australia. The cash reserve provides the Company with the ability to realise these goals.
Yours faithfully
TOX FREE SOLUTIONS LIMITED
DAVID McARTHUR
Company Secretary