TOX FREE SOLUTIONS LIMITED ABN 27 058 596 124 Operational...

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 1 December 2005 AUSTRALIAN STOCK EXCHANGE LIMITED Electronic lodgement Dear Sir / Madam Managing Director’s Presentation / Forecast Results Tox Free Solutions Limited attached a copy of a presentation made by Mr Stephen Gostlow, Managing Director of the Company, at the Annual General Meeting. A copy is also available on the Company’s wesbsite at www.toxfree.com.au. The Company also wishes to advise that the board is assessing the impact of the recently announced Delvex acquisition and sale of Automated Tank Cleaning, together with existing operations, on the financial projections released in August 2005. A revised forecast will be released to the market as soon as it has been assessed. Yours faithfully TOX FREE SOLUTIONS LIMITED DAVID McARTHUR Company Secretary DMC.MP/TOXLTRS.148
Tox Free Solutions Ltd2005 Annual General Meeting30 November 2005Level 2, 45 Stirling HwyNedlands WA
Agenda•TOX Rebirth•FY05 Performance•Forecast FY06•First QTR Results and Outlook•Growth
TOX Rebirth•Capital Raising -November 2004. Rights issue and placement raised $2,135,905.00 by issue of 213,590,500 shares at 1 cent each•Provided sound capital base and retired external debt to enable fresh outlook•Management restructuring•Expansion of services to cater for the broader industrial treatment market•New technologies•Team focus on profit making activities and margin improvement
Kwinana Operations•Appointment of new Site Manager and experienced Industrial Chemist•Expansion of site services (no longer wholly supported by soil remediation)•Non-capital intense modifications to TDU rectified production issues and increased profit
Port Hedland Operations•Modification to feed systems improved kiln efficiencies resulting in higher production rates and higher profits•Focused services on high marginwaste streams•High demand for incineration services throughout Australia continues
2004 / 2005 PerformanceActual $mJul –Dec 04Actual $mJan –Jun 05Actual $mFY05Revenue2.244.346.582.251.940.07Net Profit / (Loss)(1.67)1.45(0.22)EBITDA0.321.93Depreciation1.570.37EBIT(1.48)1.55
2004 / 2005 Performance•Write down of assets undertaken in December 2004 to tidy up balance sheet –$1.57 m•2ndhalf FY05 financials exceeded forecast due to better than forecast production rates
Forecast FY06•Forecast FY06 financials reflect a base case position for the company•Revenue -$8,000,000.00 •Profit -$3,000,000.00 (EBITDA)•Capex -$750,000.00(Capex includes -$500,000.00 for revenue expansion activities and $250,000.00 for compliance and beautification of sites)
First Quarter FY06 Results•Revenue –$2,206,129.00•Profit -$950,712.00 (EBITDA)•First QTR Results exceed FY06 forecasts on an annualised basis•Strong sales and profit at both facilities•Strong cash flow and sound financial position•Continued strong demand for servicesat both facilities
Acquisitions and New initiatives•Acquired Delvex Industrial Cleaning –To take effect as of 1 January 2006•Other bolt on acquisitions being assessed toincrease turnover and provide synergistic services to the TOX group•Karratha site development to commence 2ndhalf 2006•High Temperature Rotary Kiln Upgrade•Thermal Desorption Unit Upgrade•Growth through expansion of existing services and greater marketshareGrowth
Delvex Industrial Cleaning Pty Ltd•Acquired 1 Jan 2006•Expected to contribute$725,000 EBITDA-through existing contracts and immediate synergies with TOX group •Strategic location–Shipbuilding / Port Services•Enables TOX to expand:Liquid waste treatment services-Delvex has two licensed facilitiesCollection and transport services–fleet of liquid waste and packagedgoods vehiclesIndustrial services–high pressure cleaning and onsiteindustrial servicesGrowth
Thermal Desorption•Upgrade of TDU to increase production •Assessed based on the outcome of independent market analysis expected 1stQTR 2006•Discussions continuing with overseas remediation company to broaden scope of remediation services offered by TOXGrowth
Thermal Desorption•Upgrade of TDU to increase production •Decision based on the outcome of independent market analysis -expected 1stQTR 2006•Discussions continuing with overseas remediation company to broaden scope of remediation services offered by TOXGrowthGrowthHigh Temperature Rotary Kiln•Upgrade of Kiln Gas Handling System to increase production (potential 20% increase)•Design and Engineering has started •Proposed implementation -2ndhalf 2006
Karratha•Strategic location -10 hectare site•Variety of Services Proposed•Staged development to start 1sthalf FY07Growth
Summary•Since November 2004 –Significant turnaround•On target to exceed FY06 business plan•Strong cash flow and sound financial position•Strategically located sites and unique licenses•Competitive services•High demand for technology•Aggressively assessing opportunities for growth through internal expansion, acquisitions and new product lines
More informationSteve Gostlow tel: +61 8 9439 [email protected]