TOX FREE SOLUTIONS LIMITEDABN 27 058 596 124Operational Office:...

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
13 September 2005
AUSTRALIAN STOCK EXCHANGE LIMITED
Dear Sir / Madam
RE: PROFORMA FINAL REPORT ¨C SIGNIFICANT FINANCIAL TURN-AROUND
The management of Tox Free is pleased to present the preliminary final report for the year ended
30 June 2005.
Following a change in management, a change in operational structure and a substantial capital
injection in the latter stages of calendar 2004, Tox Free has recorded a significant turn around in
financial performance.
The profit for the six months from 1 January 2005 to 30 June 2005 was $1,480,000 with EBITDA of
$1,958,000. This compared with a loss for the six months ended 31 December 2004 of $1,706,000
(after a one off write down in asset values of $1,287,000) with EBITDA of $325,000.
The profit for the six months ended 30 June 2005 of $1.48 million (being the first 6 months following
company restructuring) exceeded budget projections by over 100%.
As recently reported to the market the base case EBITDA projection for the 2005 / 2006 financial
year is $3,000,000 based on forecast sales of $8,000,000 (sales 2004 / 2005 were $6,700,000).
Yours faithfully
TOX FREE SOLUTIONS LIMITED
DAVID McARTHUR
Company Secretary
Appendix 4E
Preliminary final report
Appendix 4E
Preliminary final report
Rule 4.3A
Introduced 1/1/2003
Name of entity: TOX FREE SOLUTIONS LIMITED
ABN: 27 058 596 124
1. Reporting period (¡°current period¡±): Year ended 30 June 2005
Previous corresponding period Year ended 30 June 2004
2. Results for announcement to the market
$A¡¯000
Revenue from ordinary activities Up 61.6% to 6,702
Profit (loss) from ordinary activities
after tax attributable to members Up 89.8% to (226)
Net profit (loss) for the period
attributable to members Up 89.8% to (226)
Amount Franked amount
per share per share
cents cents
Dividends
Final Nil N/A
Interim Nil N/A
Record date for determining
entitlements to dividends: N/A
Page 1
Appendix 4E
Preliminary final report
3. Condensed consolidated statement of financial performance
Current Previous
period corresponding
period
Note $¡¯000 $¡¯000
Revenue from sale of goods 1,365 902
Revenue from rendering of services 5,244 2,751
Other revenues from ordinary activities 93 495
Cost of sales and services (3,550) (3,045)
Occupancy expense (93) (123)
Administrative expense (776) (691)
Borrowing costs expense (300) (405)
Other expenses from ordinary activities (2) (2,209) (2,104)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Loss from ordinary activities before income
tax expense (1) (226) (2,220)
Income tax expense relating to ordinary activities - -
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Loss from ordinary activities after related (226) (2,220)
income tax expense
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Net loss attributable to members of the
parent entity (226) (2,220)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Total changes in equity other than those resulting
from transactions with owners as owners (226) (2,220)
¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T
(1) The result for the full year comprises a loss of $1,706,000 in the first 6 months to
31 December 2004 (after depreciation, amortisation and a one off asset write
down of $1,287,000) and a profit in the second 6 months to 30 June 2005 of
$1,480,000 (after depreciation and amortisation). EBITDA for the first 6 months
to 31 December 2004 was $325,000 compared with $1,958,000 for the second 6
months to 30 June 2005.
(2) This amount includes $1,287,000 in one off write downs in asset values recorded
at 31 December 2004, and $922,000 in amortisation and depreciation for the full
year.
Page 2
Appendix 4E
Preliminary final report
4. Condensed consolidated statement of financial position
Current Previous
period corresponding
period
$¡¯000 $¡¯000
CURRENT ASSETS
Cash assets 1,483 42
Receivables 1,431 477
Inventories - 85
Other 77 137
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
TOTAL CURRENT ASSETS 2,991 741
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
NON-CURRENT ASSETS
Receivables - -
Other financial assets 9 9
Property, plant and equipment 5,894 7,609
Intangibles 303 597
Other 63 63
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
TOTAL NON-CURRENT ASSETS 6,269 8,278
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
TOTAL ASSETS 9,260 9,019
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
CURRENT LIABILITIES
Payables 1,064 1,684
Interest bearing liabilities 791 919
Current tax liabilities 12 15
Provisions 88 53
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
TOTAL CURRENT LIABILITIES 1,955 2,671
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
NON-CURRENT LIABILITIES
Payables - -
Interest-bearing liabilities 1,224 2,093
Non-current tax liabilities - 4
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
TOTAL NON-CURRENT LIABILITIES 1,224 2,097
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
TOTAL LIABILITIES 3,179 4,768
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
NET ASSETS 6,081 4,251
¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T
EQUITY
Contributed equity 18,946 16,890
Reserves - -
Accumulated losses (12,865) (12,639)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
TOTAL EQUITY 6,081 4,251
¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T
Page 3
Appendix 4E
Preliminary final report
5. Condensed consolidated statement of cash flows
Current Previous
period corresponding
period
$¡¯000 $¡¯000
Net cash flows from operating activities
Cash receipts in the course of operations 5,656 4,224
Cash payments in the course of operations (4,828) (4,109)
Interest received 25 1
Borrowing costs paid (285) (381)
Income taxes paid (7) (8)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Net cash provided by/(used in) operating activities 561 (273)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Cash flows from investing activities
Proceeds on disposal of non-current assets (20) 582
Payments for property, plant & equipment 199 (145)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Net cash provided by investing activities 179 437
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Cash flows from financing activities
Proceeds from issue of shares 2,056 173
Transaction costs from issue of shares - -
Proceeds from borrowings - 125
Repayment of borrowings (602) (541)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Net cash provided by/(used in) financing activities 1,454 (243)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Net increase/(decrease) in cash held 1,836 (79)
Cash at the beginning of the
financial period (353) (274)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Cash at the end of the financial period 1,483 (353)
¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T
Notes to the condensed consolidated statement of cash flows
Reconciliation of cash
Cash on hand and at bank 1,483 42
Bank overdraft - (395)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Total cash at end of period 1,483 (353)
¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T
Page 4
Appendix 4E
Preliminary final report
6. Dividends
Amount per security
Amount per Franked Amount per
security amount per security of
security at foreign source
30% tax dividend
cents cents cents
Final dividend - current year Nil N/A N/A
- previous year Nil N/A N/A
Interim dividend - current year Nil N/A N/A
- previous year Nil N/A N/A
Total dividends on all securities for the year
Current Previous
period corresponding
period
$¡¯000 $¡¯000
Ordinary securities - -
Preference securities - -
Other equity instruments - -
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Total - -
¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T
7. Dividend reinvestment plans
The dividend reinvestment plans shown below are in operation:
N/A
Last date for receipt of election notices
for the dividend reinvestment plan: N/A
8. Retained earnings
Current Previous
period corresponding
period
$¡¯000 $¡¯000
Retained earnings (accumulated losses) at
beginning of financial period (12,639) (10,419)
Net profit (loss) attributable to members (226) (2,220)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
Retained earnings (accumulated losses) at end
of financial period (12,865) (12,639)
¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T
Page 5
Appendix 4E
Preliminary final report
9. Net tangible assets
Current Previous
period corresponding
period
cents cents
Net tangible asset backing per ordinary share 1.44 1.93
¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T
10. Details of entities over which control has been gained or lost N/A
Control gained over entities
Name of entity:
Date of gain of control:
Consolidated profit (loss) from ordinary
activities of the entity since the date in
the current period on which control was
acquired: $
Profit (loss) from ordinary activities of
the entity for the whole of the previous
corresponding period: $
Control lost over entities
Name of entity:
Date of loss of control:
Consolidated profit (loss) from ordinary
activities of the entity for the current
period to the date of loss of control: $
Profit (loss) from ordinary activities of
the entity while controlled during the
whole of the previous corresponding
period: $
11. Details of associates and joint venture entities N/A
Name of entity Percentage of ownership
interest held at end of period
Current Previous
period corresponding
period
Page 6
Appendix 4E
Preliminary final report
12. Any other significant information
Details of any other significant information needed by an investor to make an informed
assessment of the entity¡¯s financial performance and position:
The assets of the tank cleaning division are still for sale, with discussions taking place
with interested parties.
13. Accounting standards
For foreign entities, set of accounting standards used in compiling report:
N/A
14. Results for the period
14.1 Earnings per security
Current Previous
period corresponding
period
cents cents
Basic earnings per share (0.07) (1.23)
Diluted earnings per share (if materially different) (0.05) (1.23)
Number Number
Weighted average number of ordinary shares
outstanding during the period used in the
calculation of basic EPS 291,140,373 180,083,871
¨T¨T¨T¨T¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T¨T¨T¨T¨T
14.2 Returns to shareholders
N/A
14.3 Significant features of operating performance
N/A
Page 7
Appendix 4E
Preliminary final report
14.4 Segment results
Current Previous
period corresponding
period
$¡¯000 $¡¯000
Toxic and hazardous waste remediation (658) (1,049)
Non-hazardous waste remediation and
waste oil recycling 2,014 1,102
Automated tank and sludge pond cleaning (677) (414)
Unallocated corporate expenses (905) (1,859)
©¤©¤©¤©¤©¤ ©¤©¤©¤©¤©¤
(226) (2,220)
¨T¨T¨T¨T¨T ¨T¨T¨T¨T¨T
14.5 Trends in performance
N/A
14.6 Any other factors which have affected the results in the period or which are likely to
affect the results in the future, including those where the effect could not be quantified:
N/A
15. This report is based on accounts to which one of the following applies:
􀀹 The accounts have been
audited. 􀂅 The accounts have been
subject to review.
􀂅 The accounts are in the
process of being audited or
subject to review.
􀂅 The accounts have not yet
been audited or reviewed.
16. Description of any likely audit dispute or qualification:
N/A
Sign here: Date: 13 September 2005
Company Secretary
Print name: David McArthur
Page 8