ALS LIMITED — Annual Report 2010

May 24, 2010

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Appendix 4E

Full year report for the Year Ending 31 March 2010 (the previous corresponding period is the Year Ended 31 March 2009)

Results for announcement to the market

		$A'000	$A'000
Revenues from ordinary activities Profit (loss) from ordinary activities after tax attributable to members Net profit (loss) for the period attributable to members Total dividend per share for the year (50% franked)		Down 10.3% to 825,533 Down 29.1% to 75,301 Down 29.1% to 75,301 Unchanged at $1.00
Dividends (distributions)		Amount per security	Franked amount persecurity
Final dividend		55¢	27.5¢
Interim dividend		45¢	22.5¢
+Record date for determining entitlements to the dividend,		June 2010
	11	June 2010

• See chapter 19 for defined terms.

Appendix 4E Page 1

Campbell Brothers Limited Results for announcement to the market for the year ended 31 March 2010

Profit and loss statement

For the year ended 31 March 2010

In thousands of AUD Revenue from sale of goods Revenue from rendering of services Other income Changes in inventories of finished goods and work in progress Raw materials and consumables purchased Employee expenses Warehousing and distribution costs Amortisation and depreciation Selling expenses Administration and other expenses Share of net profits of associates and joint ventures accounted for using the equity method Profit before financing costs and income tax Finance income Finance expense Net finance expense Profit before income tax Income tax expense Profit for the period Attributable to: Equity holders of the company Minority interest Profit for the period	Consolidated 2010 2009 267,057 291,098 558,476 629,253
	825,533 920,351 2,088 1,944 (6,335) 3,199 (211,730) (253,838) (290,631) (294,599) (25,699) (32,558) (39,944) (37,139) (8,812) (9,922) (129,154) (133,805) 1,667 1,490
	116,983 165,123
	814 836 (11,935) (15,251)
	(11,121) (14,415)
	105,862 150,708 (30,971) (44,517)
	74,891 106,191
	75,301 106,209 (410) (18)
	74,891 106,191

• See chapter 19 for defined terms.

Appendix 4E Page 2

Campbell Brothers Limited Results for announcement to the market for the year ended 31 March 2010

Balance sheet

As at 31 March 2010

In thousands of AUD Assets Cash and cash equivalents Trade and other receivables Inventories Other Total current assets Receivables Investments accounted for using the equity method Investment property Deferred tax assets Property, plant and equipment Intangible assets Other investments Total non-current assets Total assets Liabilities Bank overdraft Trade and other payables Loans and borrowings Income tax payable Employee benefits Total current liabilities Loans and borrowings Deferred tax liabilities Employee benefits Other Total non-current liabilities Total liabilities Net assets Equity Share capital Reserves Retained earnings Total equity attributable to equity holders of the company Minority interest Total equity	Consolidated 2010 2009 57,937 60,260 160,532 140,573 63,984 73,562 12,036 12,108
	294,489 286,503
	5,173 6,204 19,261 11,383 11,138 11,255 14,925 11,146 216,846 210,344 393,092 268,090 161 163
	660,596 518,585
	955,085 805,088
	19 746 78,127 84,729 8,364 169,365 6,303 12,289 26,043 18,192
	118,856 285,321
	196,514 99,723 2,068 2,708 4,157 2,255 3,746 2,013
	206,485 106,699
	325,341 392,020
	629,744 413,068
	456,734 242,724 (18,199) 48 189,772 169,140
	628,307 411,912 1,437 1,156
	629,744 413,068

• See chapter 19 for defined terms.

Appendix 4E Page 3

Campbell Brothers Limited Results for announcement to the market for the year ended 31 March 2010

Statement of Cash Flows

For the year ended 31 March 2010

In thousands of AUD Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash generated from operations Interest paid Interest received Income taxes paid Net cash from operating activities Cash flows from investing activities Payments for property, plant and equipment Repayments from joint venture entity Payments for net assets on acquisition of businesses and controlled entities (net of cash acquired) Additional payments in respect of prior year acquisitions of controlled entities Payment for investment in joint venture Dividend from associate Proceeds from sale of other non-current assets Net cash from investing activities Cash flows from financing activities Proceeds from issue of share capital Proceeds from borrowings Repayment of borrowings Lease payments Lease receipts Dividends paid Net cash from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 April Effect of exchange rate fluctuations on cash held Cash and cash equivalents at 31 March	Consolidated 2010 2009 890,258 1,024,404 (745,435) (803,041)
	144,823 221,363 (11,935) (15,252) 814 836 (34,137) (40,202)
	99,565 166,745
	(43,170) (71,548) 441 1,158 (112,021) (43,454) (2,040) (4,078) (7,311) - 1,100 875 1,878 2,321
	(161,123) (114,726)
	192,415 - 103,871 40,478 (188,610) (41,815) (8,999) (2,830) 832 832 (32,819) (37,550)
	66,690 (40,885)
	5,132 11,134 59,514 45,235 (6,728) 3,145
	57,918 59,514

• See chapter 19 for defined terms.

Appendix 4E Page 4

Campbell Brothers Limited Results for announcement to the market for the year ended 31 March 2010

Dividend Disclosures

Date the final dividend (distribution) is payable

1 July 2010

+Record date to determine entitlements to the dividend (distribution) (i.e., on the basis of proper instruments of transfer received by 5.00 pm if[+] securities are not[+] CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if +securities are +CHESS approved)

11 June 2010

Amount per security

Amount per security
	Amount per security	Amount per security of conduitforeign income
Final dividend: Current year Previous year	55¢ 50¢	27.5¢ 25¢
Interim dividend: Current year Previous year	45¢ 50¢	22.5¢ 25¢

Total final dividend (distribution) on all securities

+Ordinary securities_(each class separately) Preference+securities(each class separately) Other equity instruments(each class_ separately) Total	Current period $A'000	Previous corresponding period-$A'000
	34,628 - -	26,517 - -
	34,628	26,517

Directors are mindful of the level of earnings generated overseas and the impact that this will have on the ability of the Company to frank dividends in the future. Continued efforts are being directed towards maintaining Australian taxable income to balance the continued overseas expansion. Current forecasts indicate that the dividends for the next financial year will be at least 50% partly franked.

The[+] dividend or distribution plans shown below are in operation

Campbell Brothers Limited Dividend Reinvestment Plan

The last date(s) for receipt of election notices for the +dividend or distribution plans

11 June 2010

• See chapter 19 for defined terms.

Appendix 4E Page 5

Campbell Brothers Limited Results for announcement to the market for the year ended 31 March 2010

Reconciliation of Retained Earnings

econciliation of Retained Earnings
In thousands of AUD Retained profits at beginning of year Net profit attributable to equity holders of the company Dividends Retained profits at end of year	2010 2009 169,140 120,502 75,301 106,209 (54,669) (57,571)
	189,772 169,140

NTA backing	Current period	Previous corresponding period
Net tangible asset backing per+ordinary security	$3.76	$2.73

Control gained over entities during the period (having a material effect on the Group)

Date acquired PearlStreet Limited 19 December 2009 Ecowise Environmental Pty Ltd 30 November 2009

In the periods to 31 March 2010 the acquired entities contributed a net profit of $2.137 million to the consolidated net profit for the year.

Details of associates and joint venture entities

The consolidated entity has an interest (that is material to it) in the following entities.

Name of entity	Percentage of ownership interest held at end of period or date of disposal	Percentage of ownership interest held at end of period or date of disposal	Contribution to net profit (loss)	Contribution to net profit (loss)
Equity accounted associates and joint venture entities ALS Technichem (Malaysia) Sdn Bhd	Current period	Previous corresponding period	Current period $A’000	Previous corresponding period-$A’000
	40%	40%	1,237	781
ALS Mineralogy Pty Ltd	51%	51%	430	709
Total			1,667	1,490

• See chapter 19 for defined terms.

Appendix 4E Page 6

Campbell Brothers Limited Results for announcement to the market for the year ended 31 March 2010

Dividends and Share Capital

Directors have declared a partly franked (50%) final dividend of 55 cents per ordinary share, amounting to $34,628,000, payable on 1 July 2010. Following payment of the final dividend the total distribution to shareholders for the 2010 financial year will total $1.00 per share partly franked (50%) amounting to $62,780,000.

In thousands of AUD Issued and paid up share capital 62,959,971 ordinary shares fully paid (2009: 53,033,285) Movements in ordinary share capital Balance at beginning of year Share issues: 987,111 shares (2009: 896,675) under Dividend Reinvestment Plan(1) 8,939,575 shares (2009: Nil) under Share rights offer(2) Balance at end of year	Consolidated 2010 2009
	456,734 242,724
	242,724 223,111 21,595 19,613 192,415 -
	456,734 242,724

• (1) Issued pursuant to the Company’s Dividend Reinvestment Plan:

• 1 July 2009 – 587,486 shares at $18.44

• 16 December 2009 – 399,625 shares at $26.93

(2) Issued pursuant to the Company’s 1 for 6 share rights offer (net of transaction costs of $4.256 million): 11 November 2009 – 8,939,575 ordinary shares at $22.00 per share

Commentary on the Results

Earnings per security and the nature of any dilution aspects

Cents per share Basic earnings per share Diluted earnings per share	Consolidated 2010 2009 129.06 195.16
	128.89 195.08

Basic and diluted earnings per share

The calculation of both basic and diluted earnings per share were based on the profit attributable to equity holders of the company of $75,301,000 (2009: $106,209,000).

Weighted average number of ordinary shares (Basic and diluted)

Weighted average number of ordinary shares (Basic and diluted)
In thousands of shares Issued ordinary shares at 1 April Effect of shares issued July 2008 Effect of shares issued December 2008 Effect of shares issued July 2009 Effect of shares issued November 2009 * Effect of shares issued December 2009 Weighted average number of ordinary shares at 31 March (Basic) Effect of performance rights issued August 2008 Effect of performance rights issued September 2008 Effect of performance rights issued June 2009 Effect of performance rights issued October 2009 Effect of performance rights issued November 2009 Weighted average number of ordinary shares at 31 March (Diluted)	Consolidated 2010 2009 53,033 52,137 - 347 - 114 559 - 4,574 1,825 181 -
	58,347 54,423 7 5 28 16 26 - 6 - 11 -
	58,425 54,444

• In accordance with the requirements of AASB133 Earnings per Share current and prior year earnings per share have been adjusted for the effect of new shares allotted in November 2009 pursuant to the Company’s one-for-six renounceable rights issue.

• See chapter 19 for defined terms.

Appendix 4E Page 7

Campbell Brothers Limited Results for announcement to the market for the year ended 31 March 2010

Significant features of operating performance

The Group achieved net profit after tax (attributable to equity holders of the Company) of $75.30 million in the year to March 2010 in line with recent guidance provided to the market. The result was down 29.1% on the record $106.21 million realised in the year ended March 2009 and was generated from a turnover of $825.53 million, representing a 10.3% decrease on the $920.35 million of 2009.

The fall in revenue and profit was largely due to reduced global demand in mineral exploration markets for analytical testing services provided by the ALS Minerals division. All other divisions of the ALS Laboratory Group produced improved revenue and profit contribution over the previous year.

The 2010 full year results compare favourably with those achieved two years ago - revenue was 6.9% ahead of that earned in the year to March 2008 ($772.29 million) and net profit after tax was up 5.7% (March 2008 underlying net profit after tax excluding unusual items: $71.27 million).

Financial Results $'000 ALS Minerals ALS Environmental ALS Coal ALS Tribology ALS Industrial Campbell Chemicals Reward Distribution Intra-group revenue Total divisional	Revenue	Contribution
	FY2010 FY2009 + / - 204,984 310,790 (34.0%) 245,205 234,920 4.4% 61,755 59,159 4.4% 29,826 23,957 24.5% 19,823 - N/A 151,799 164,310 (7.6%) 117,785 132,785 (11.3%) (5,644) (5,570)	FY2010 FY2009 + / - 53,344 112,220 (52.5%) 43,798 28,362 54.4% 15,034 13,189 14.0% 4,643 2,075 123.7% 1,299 - N/A 8,246 7,928 4.0% 3,424 3,411 0.4%
	825,533 920,351 (10.3%)	129,788 167,185 (22.4%)
Net finance expenses Net gain/(loss) on foreign exchange Unallocated corporate costs and net result attributable to minority interest Income tax expense		(11,121) (14,415) (6,514) 7,955 (5,881) (9,999) (30,971) (44,517)
Net profit after tax		75,301 106,209 (29.1%)

Commentary re business divisions follows:

ALS Minerals

ALS Minerals experienced a significant reduction in sample volumes during the year as global exploration activity fell in response to tight credit conditions. Whilst the contribution margin as a percentage of revenue fell substantially from the previous year, the division’s ability to react quickly in reducing its variable costs produced a strong margin performance given the difficult market conditions. Increases in sample flows in the last two months of the financial year give cause for cautious optimism about the year ahead.

ALS Enviromental

The ALS Environmental division produced a strong result for the full year to March 2010, with the increase in revenue driven by both acquired and organic growth. Cost control initiatives across all regions resulted in a significant improvement in contribution margin. The integration of Ecowise Environmental (acquired November 2009) into the Australian environmental business offers strong growth potential for the coming year.

• See chapter 19 for defined terms.

Appendix 4E Page 8

Campbell Brothers Limited Results for announcement to the market for the year ended 31 March 2010

ALS Coal

Continuing resilient levels of global export activity driven by higher coal prices and improving industry sentiment provided the impetus for a healthy performance by ALS Coal across all regions. The division maintained its focus on efficiency during the year producing a consistently strong contribution margin on revenue.

ALS Tribology

ALS Tribology had the benefit of a full twelve months’ contribution from its North American business (acquired August 2008) in the year to March 2010 and strong organic growth in Australia. A focus on expense management enabled the division to significantly improve its contribution margin on revenue.

ALS Industrial

ALS Industrial division was established following the acquisition of PearlStreet Limited in January 2010. Directors are optimistic about the potential for this division to contribute significantly to the Group in terms of both its own performance as integration synergies are realised and through the increased breadth of services now available to existing and future clients.

Campbell Chemicals

The Campbell Chemicals division experienced varied economic conditions across its many markets in Australasia and the Pacific. The industrial chemicals business returned improved margins on sales despite lower revenue and the weakening US dollar. A focus on client service and operational efficiency in the face of difficult market conditions enabled the Panamex trading business to produce a consistent revenue and margin performance.

Reward Distribution

Reward Distribution realised reduced revenue as a result of tight tourism and hospitality markets, strong competition and the continuing reassessment of target markets. The business is realising the benefits of cost control initiatives of the previous twelve months as evidenced by improving contribution margin on revenue despite falling sales.

Events subsequent to balance date

On 18 May 2010 the Company announced that its wholly-owned subsidiary, Australian Laboratory Services Pty Ltd (ALS) intends to make a cash offer of $3.35 per share for all of the issued capital in Ammtec Limited (Australian Securities Exchange code: AEC) a Perth-based metallurgical and mineral testing consultancy company. The offer will also include an all-share alternative offering Ammtec shareholders the choice of accepting two of the Company’s shares for every seventeen Ammtec shares held. The offer values Ammtec’s equity, fully diluted for all share options currently outstanding, at approximately $123 million.

Audit

The report is based on accounts which have been audited.

Signature: Company Secretary

Date: 25[th] May 2010

Print name: Tim Mullen

• See chapter 19 for defined terms.

Appendix 4E Page 9