report ... recommended reading

Don't miss reading the chairman's report on this energetic company currently trading at just 35c, out today.

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00675080

Some highlights include:

"The company’s operations will soon
encompass three successful businesses,
Syfon Systems, Brockman Engineering
and Danum Engineering. They all have
strong positions in their respective
markets with exceptional growth
opportunities.

On a full year basis, revenue from these
three businesses is expected to be over
$50 million.

Envirozel is now profitable on a sustainable basis and is
positioned as an industrial company with operations in
the infrastructure, water and engineering industries.
The company is building a portfolio of well run, niche
operations with sound business models underpinning a
strong competitive position and healthy margins.

The Syfon Systems and Brockman
Engineering businesses provide a framework for two
distinct operating divisions. The operating businesses
within each of these divisions will have market,
customer, technology and other synergies. The first
division, built around Syfon, will provide specialist
products and services for managing water. The second
division, built around Brockman, will provide specialist
engineering and steel fabrication services to industry.
The company’s acquisition strategy will therefore target
businesses that fit within these two emerging divisions.
Against a background of persistently dry conditions
throughout much of Australia over the past five years,
water management is now a headline issue for all levels
of government. Accordingly, investment in water
management by governments, business, farmers and
consumers will be increasingly important into the long
term. Envirozel believes that the investment focus in
addressing these issues will principally be on
infrastructure. Syfon provides a specialised, niche
exposure to water management and is typical of the
opportunities the company is looking for.

Syfon has been experiencing annual growth of around
20% per annum for several years and this is expected
to be sustainable into at least the medium term. This
high rate of growth is being driven by increasing
penetration of the company’s technology and buoyant
construction and infrastructure spending in Australia
and growing market penetration in Asia. Whilst the
opportunities in Australia will fluctuate with the capital
investment cycle, there are enormous opportunities for
growth in Asia, which the company will pursue over the
next few years from an established base in Malaysia.
Brockman Engineering has enjoyed steady growth over
the past 20 years mirroring the expansion and
maintenance needs of the oil refining, chemical, food
processing industries in Victoria and this is expected to
continue. Nonetheless, new opportunities are also
opening up. For example, investment in storage
facilities by water authorities throughout Victoria is
increasing and a new market for storage and tankage
facilities has emerged with the development of the
biofuels industry.

Since 1957, Danum Engineering has provided
construction, on-site installation and maintenance
engineering services to a wide range of industries.
There are many synergies between Brockman
Engineering and Danum Engineering, which have the
potential to create further opportunities."

Growing demand on EVZ's services will increase its profits substantially with time, allowing for more synergistic acquisitions and shareholder value.

ASX Code: EVZ
Shares on Issue: 156.2 million
Unquoted Options: 2.5 million
52 week Share Price Range: $0.08 - $0.35
Market Capitalisation: $50.8 million