ANTEOTECH LTD — Interim / Quarterly Report 2017

Sep 14, 2017

15 September 2017

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Amended Appendix 4E

Anteo Diagnostics Limited (ASX: ADO) ( Anteo or Company ) advises that it has amended its appendix 4E released on 31 August 2017 as follows.

• Two line items being financial assets and intangible assets that should not have appeared in the consolidated statement of financial position, have now been removed.

• The net tangible asset backing per ordinary share for the 30 June 2017 and 30 June 2016 has been amended to 0.26 Euro Cents and 0.04 Euro Cents respectively.

• Notes 2 and 3 of notes to the income statement have been removed as they are not material.

Attached is an amended Appendix 4E.

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15 September 2017

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30 June 2017 Preliminary Financial Statements

Financial Summary

Anteo Diagnostics Limited (ASX: ADO) ( Anteo or Company ) presents its 30 June 2017 preliminary financial statements.

Anteo has today announced that it has signed an unconditional agreement to sell 100% of the shares of its wholly owned subsidiary DIAsource ImmunoAssays SA ( DIAsource ) for €15,873,000. The sale is expected to be settled on or around 5 September 2017.

Due to the sale of the DIAsource business the Company’s 2017 preliminary financial statements classify the assets and liabilities of DIAsource and its subsidiaries as a disposal group. Consequently the assets and liabilities relating to DIAsource are shown as single line items in the statement of financial position. Revenues, expenses, gains and losses of DIAsource are shown as a single line item, “loss from discontinued operations” in the statement of profit or loss and other comprehensive income.

The DIAsource business has been valued as at the 30 June 2017 at fair value being the sales price of DIAsource less the costs to sell. This is reflected in the held for sale assets with an adjustment to intangible assets within the DIAsource business which results in the net assets and liabilities held for sale being valued at €15,284,001 (being assets held for sale of €27,403,059 and liabilities held for sale of €12,119,058). Further information and the accounting treatment are provided in the supplementary information of this Schedule 4E under “Assets and disposal groups classified as held for sale”.

The 40% drop in revenue to €284,100 (2016: €475,241) on the prior year reflects the change in revenues for the Australian operations being the Anteo Technology business.

The losss of €3,233,781 (2016: loss €4,638,365) from continued operations shows the loss from Australian operations and head office activities. The 30% improvement on prior year reflects significant reductions in research and development, administration and selling and distribution expenses. As part of the Sale of DIAsource the Company has advised that it intends to repay all its loans, hence, future borrowing costs and earn out adjustments are likely to be reduced in the 2018 financial year by €1.4 million.

The loss from discontinued operations of €2,436,712 (2016: profit of €639,676) includes an after tax impairment of €4,717,052 of the DIAsource business. Net profit of the DIAsource business was €2,280,340 (2016: €639,675) for this financial year with the improvement partially due to a full years trading of the DIAsource business as opposed to six months trading last financial year and improved performance of the DIAsource business for the year. More information is provided in the detailed supplementary information in this Appendix 4E.

The preliminary financial statements are unaudited due to timing of the sale of DIAsource which prevented the audit process from being completed at the time of this announcement.

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ABOUT ANTEO GROUP – Anteo Diagnostics Limited (ADO:ASX) & Subsidiaries

Anteo Group is a global nanochemistry technology and medical supply group, developing, commercialising, manufacturing and distributing products for the life sciences, clinical diagnostics and bioseparations markets, and creating new applications in the energy and medical devices sectors.

Through Anteo Technology, the Anteo Group owns a patented nanochemistry surface engineering technology which unites the strength and stability of covalent binding with the gentleness of passive binding through multi-point chelation. Through the use of its reagents binders, coatings or primers, Anteo provides materials and services for high-value commercial applications. Markets include protein binding and antibody coupling (e.g. point of care devices), primers for in-vivo medical devices and medical drug delivery, and coatings with commercial applications across a broad range of industry sectors, including life sciences, in vitro diagnostics, medical devices and energy.

For more information, please visit www.anteodx.com

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Results for announcement to the market

This preliminary final report is based on unaudited accounts An Audit Report will be contained within the Company’s 2017 Annual Report when issued

Current Reporting Period Previous Reporting Period Year ended 30 June 2017 Year ended 30 June 2016	Current Reporting Period Previous Reporting Period Year ended 30 June 2017 Year ended 30 June 2016	Current Reporting Period Previous Reporting Period Year ended 30 June 2017 Year ended 30 June 2016	Current Reporting Period Previous Reporting Period Year ended 30 June 2017 Year ended 30 June 2016
	up/down			€
Revenuefrom continued operations	down	-40%	to	284,100
Lossfrom continued operations after tax attributable to members	down	-30%	to	(3,233,781)
Lossafter tax attributable to members	up	42%	to	(5,670,493)
Dividends / distributions	Amount per security		Franked	amount per security
Interim dividend		0.0c		0.0c
Final dividend		0.0c		0.0c
The Directors do not propose or recommend the payment of a dividend Record date for determining entitlements to the dividend
		Not Applicable
Retained earnings		Year ended		Year ended
		30 June 2017		30 June 2016 €
		€
Accumulated losses at the beginning of the financial year		(29,357,753)		(25,570,584)
Transfer from the share option reserve		96,208		211,520
Net loss for the year		(5,670,493)		(3,998,689)
		(34,932,038)		(29,357,753)
Net tangible assets Net tangible asset backing per ordinary share (Euro Cents)		As at 30 June 2017 0.26		As at 30 June 2016 0.04

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Consolidated statement of profit or loss and other comprehensive Income

Sales Other income Cost of sales Total revenue and other income Selling and distribution expenses Occupancy expenses Administration expenses Borrowing costs Research and development expenses Share based payments Earn out adjustment Loss from ordinary activities before income tax benefit Income tax benefit relating to ordinary activities Loss for the year from continuing operations (Loss)/Profit for the year from discontinued operations Other comprehensive income Exchange difference on translating Australian Operations Total other comprehensive income for the period net of tax Total comprehensive income/(loss) for the year Earnings per share Basic earnings per share - earnings from continuing operations (Euro cents) - earnings from discontinuing operations (Euro cents) Diluted earnings per share - earnings from continuing operations (Euro cents) - earnings from discontinuing operations (Euro cents) Weighted average number of ordinary shares outstanding during the year used in the calculation of basic EPS and diluted EPS Loss for the year	Year ended	Year ended 30 June 2016 € 475,241 1,186,385 0
	30 June 2017
	€ 284,100 1,471,366 - 1,755,466 (232,848) (302,787) (1,333,736) (957,294) (1,141,161) (144,818) (876,603) (3,233,781) - (3,233,781) (2,436,712) (5,670,493) 357,972 357,972 (5,312,521) (0.29) (0.22) (0.51) (0.29) (0.22) (0.51) 1,122,086,476
		1,661,626
		(1,065,955) (222,089) (2,238,417) (340,926) (2,396,014) (36,590) -
		(4,638,365) -
		(4,638,365) 639,676
		(3,998,689) (330,091)
		(330,091)
		(4,328,780)
		(0.49) 0.07
		(0.42) (0.49) 0.07
		(0.42) 948,549,980

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Notes to the income statement

Notes to the income statement
1 Analysis of Revenues Revenues from operating activities (continuing operations) Sale of goods and services Other Income (continuing operations) R&D tax concession Rent and Other Interest Other revenue from non-operating activities Total Revenue and other income from continuing operations	Year ended 30 June 2017 € 284,100	Year ended 30 June 2016 € 475,241
	1,425,972 41,018 4,376 - 1,471,366 1,755,466	1,013,729 38,434 19,222 115,000
		1,186,385 1,661,626

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Consolidated statement of financial position

CURRENT ASSETS Cash assets Trade and other receivables Inventories Other Assets and disposal group classified as held for sale TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Financial liabilities 1 Provisions Liabilities included in the disposal group for sale TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Financial liabilities Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Convertible notes Option Reserve Foreign Exchange Reserve Accumulated losses TOTAL EQUITY	As at 30 June 2017 € 642,474 91,048 - 10,101 27,403,059 28,146,682 256,383 256,383 28,403,065 339,042 10,873,382 152,315 12,119,058 23,483,797 - 24,217 24,217 23,508,014 4,895,051 38,944,773 - 685,045 197,271 (34,932,038) 4,895,051	As at 30 June 2016 € 1,519,532 60,110 - 72,017 33,222,605
		34,874,264
		361,773
		361,773
		35,236,037
		249,678 5,370,398 170,843 14,579,756
		20,370,675
		5,516,303 33,673
		5,549,976
		25,920,651
		9,315,386
		36,961,415 1,370,672 501,753 (160,701) (29,357,753)
		9,315,386

1. This is the total of the vendor loan provided to acquire DIAsource, the earn out amount owing to vendors of Diasource and loans from shareholders and directors. It is the intention of the board to repay these outstanding amounts as part of the sale of DIAsource.

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Consolidated statement of cash flows

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and grants Payments to suppliers and employees Borrowing costs Interest received Net cash (used in)/from discontinued operations Net cash (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Payments for non-current assets Acquisition of subsidiary net of cash Payment for property, plant and equipment Net cash (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from share issues Proceeds from borrowings and finance leases Repayment of borrowings and finance leases Captial raising costs Proceeds from issue of converting notes Net cash (used in) provided by financing activities Net increase (decrease) increase in cash held Opening cash brought forward (including cash in assets held for sale) Exchange Rate Adjustments Cash in assets held for sale Cash at end of year Reconciliation of cash. Cash on hand Cash at bank Deposit at call	Year ended 30 June 2017 € 1,425,795 (1,304,132) (863,645) 4,712 159,562 (577,708) - - (621,430) (621,430) 154,687 1,607,924 (1,954,451) - 457,999 266,159 (932,979) 2,522,170 142,886 (1,089,603) 642,474 As at 30 June 2017 € 883 641,591 - 642,474	Year ended 30 June 2016 € 1,486,994 (4,641,747) (63,550) 16,657 (1,600,818)
		(4,802,464)
		- (62,028) (5,293,452) (477,536)
		(5,833,016)
		8,363,413 561,080 - (382,255) 1,370,672
		9,912,910
		(722,570) 3,574,829 (330,090) (1,002,637)
		1,519,532
		As at 30 June 2016 € 1,201 1,439,283 79,048
		1,519,532

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Supplementary information

Assets and disposal groups classified as held for sale and discontinued operations

The group has signed an agreement for the sale of its wholly owned subsidiary DiaSource Immunoassays AG ("DIAsource"). The details of this transaction and its implications for the group were announced on 31 August 2017. The sale price is Euro 15,873,000. Disposal costs have been estimated to be Euro 480,000.

The assets and liabilities allocable to DIAsource and its subsidiaries are classified as a disposal group and are classified in the statement of financial position as single line items at year end. The prior year comparatives have been restated accordingly. Revenue and expenses, gains and losses relating to the disposal group have been eliminated from the statement of profit or loss and other comprehensive income and are shown as a single line item on the face of the statement of profit or loss and other comprehensive income. The prior year comparatives have been restated in accordance with this treatment.

The detail for the loss from discontinued operations is as follows:

Sales revenue Cost of sales Other income Selling and distribution expenses Occupancy expenses Administrative expenses Borrowing costs Research expenses Income tax benefit Profit for the year Gain / (loss on remeasurement: - loss before tax on measurement to fair value less estimated costs to sell - tax income /(expense) Total gain / (loss) from discontinued operations	Year ended 30 June 2017 € 16,194,944 (7,951,712) 969,019 (1,935,254) (905,443) (2,955,606) (531,832) (464,056) (139,720) 2,280,340 (7,147,049) 2,429,997 (2,436,712)	Year ended 30 June 2016 € 7,866,621 (4,067,367) 201,435 (1,055,511) (444,822) (1,416,867) (191,302) (298,073) 45,561
		639,675
		- -
		639,675

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Anteo Diagnostics Limited

ABN 75 070 028 625

Appendix 4E, Preliminary Final Report

Supplementary information (continued)

Assets and disposal groups classified as held for sale and discontinued operations (continued)

The carrying amounts of assets and liabilities in this disposal group are summarised as follows.

Current Assets Cash and cash equivalents Trade and other receivables Inventory Non Current Assets Property, plant and equipment Intangible assets Other financial assets Deferred Tax Asset Assets classified as held for sale Current Liabilities Trade and other payables Financial liabilities Provisions Non Current Liabilities Financial liabilities Provisions Deferred tax liability Liabilities classified as held for sale Cash flows generated by Diasource for the reporting periods under review are a Operating activities Investing Activities	As at 30 June 2017 € 1,089,603 5,647,719 4,041,791 14,648,688 1,788,810 5,209 181,239 27,403,059 2,809,756 3,168,928 684,132 3,686,175 114,315 1,655,752 12,119,058 s follows: 159,562 (621,431)	As at 30 June 2016 € 1,002,637 4,907,672 3,400,838 15,012,346 8,893,903 5,209 -
		33,222,605
		2,908,787 2,176,913 633,527 4,591,537 - 4,268,992
		14,579,756
		(1,600,819) (175,921)