CADOUX LIMITED — Interim / Quarterly Report 2007

Aug 30, 2007

Appendix 4E Preliminary final report Period ended 30 June 2007

Rule 4.3A

Appendix 4E

Preliminary Final Report

	Solbec Pharmaceuticals Ltd ABN: 85 061 289 218	Solbec Pharmaceuticals Ltd ABN: 85 061 289 218
1. Financial year ended (‘reporting period’) Financial year ended (‘previous corresponding period’) 2. Results for announcement to the market Movement from previous corresponding period. 2.1 Revenues from ordinary activities (item 3.1) down 31.07% 2.2 Profit (loss) from ordinary activities after tax attributable to members (item 3.6) down 20.25% 2.3 Net profit (loss)for the period attributable to members (item 3.6) down 20.25%
	Financial year ended (‘reporting period’)		30 June-07
	Financial year ended (‘previous corresponding period’)		30 June-06
			$A’000
	Movement from previous corresponding period.	down 31.07% down 20.25% down 20.25%	to 477 to (1358) to (1358)
	Revenues from ordinary activities (item 3.1)
	Profit (loss) from ordinary activities after tax attributable to members (item 3.6)
	Net profit (loss)for the period attributable to members (item 3.6)
2.4 2.5	Dividends The Company does not propose to pay dividends in relation to this period. Record date for dividends:		Not applicable
2.6
	Explanation of items 2.1 to 2.4 above:
	Revenue down on previous year, due to decrease in research and development grants.
	The decrease in expenditure has had the effect of decreasing the loss compared to 2006.

Appendix 4E Page 1

Appendix 4E Preliminary final report Period ended 30 June 2007

Rule 4.3A

3. Condensed consolidated income statement

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9	Reporting period $A’000 Previous corresponding Period $A’000 Revenues from ordinary activities (see items 3.7 – 3.9) 477 692 Expenses from ordinary activities (see items 3.10) (1904) (2913) Profit (loss) from ordinary activities before tax (1427) (2221) Income tax benefit/(expense) or ordinary activities 69 518 Profit (loss) from ordinary activities after tax (1358) (1703) Notes to the condensed consolidated income statement Revenue and expenses form ordinary activities	Reporting period $A’000	Previous corresponding Period $A’000
		477 (1904)	692 (2913)
		(1427) 69	(2221) 518
		(1358)	(1703)
	Revenue - Government grants Interest revenue Other relevant revenue - Other	Reporting period $A’000	Previous corresponding Period $A’000
		424 53 -	654 33 5
	Details of relevant expenses - Depreciation and amortisation - ASX Fees - Costs of shares registry - Salary and wages - Research and Development - Rent - Legal expenses - Consulting - Other administration expense	39 32 34 729 598 59 9 106 298	38 27 54 777 1283 59 28 190 457

Appendix 4E Page 2

Appendix 4E Preliminary final report Period ended 30 June 2007

Rule 4.3A

4. Condensed consolidated balance sheet

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19	Current assets Cash and cash equivalents Trade and other receivables Other assets Total current assets Non-current assets Land and building at fair value Other property, plant and equipment Other financial assets Total non-current assets Total assets Current liabilities Payables Previsions Other Total current liabilities Total liabilities Net assets Equity Capital/contributed equity Reserves Retained profits (accumulated losses) Total equity	Reporting period $A’000	Previous corresponding Period $A’000
		3052 - 33	889 3 52
		3085	944
		1250 263 -	1020 291 -
		1513	1311
		4598	2255
		291 55 516	636 21 282
		862	939
		862	939
		3736	1316
		23337 1554 (21155)	19730 1383 (19797)
		3736	1316

Appendix 4E Page 3

Appendix 4E Preliminary final report Period ended 30 June 2007

Rule 4.3A

5. Condensed consolidated cash flow statement

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17	Reporting period $A’000 Cash flows from operating activities Receipts from Government grants 656 Payments to suppliers and employees (1199) Payments relating to research projects (943) Interest received 53 Tax refund received - Net operating cash flows (1433) Cash flows from financing activities Proceeds from sale of investments - Purchases of plant and equipment (10) Net investing cash flow (10) Cash flows from financing activities Proceeds from issue of shares 3606 Net financing cash flows 3606 Net increase (decrease) in cash held 2163 Cash at beginning of period 889 Cash at end of period 3052 Non-cash financing and investing activities There were no non-cash financing and investing activities. Reconciliation of cash	Reporting period $A’000	Previous corresponding Period $A’000
		656 (1199) (943) 53 -	991 (645) (2062) 38 290
		(1433)	(1388)
		- (10)	38 (100)
		(10)	(62)
		3606	933
		3606	933
		2163 889	(517) 1406
		3052	889
	Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Reporting period $A’000	Previous corresponding Period $A’000
	Cash on hand and at bank (item 5.16)	3052	889

Appendix 4E Page 4

Appendix 4E Preliminary final report Period ended 30 June 2007

Rule 4.3A

6. Dividends

No dividends were paid during the reporting period or the previous corresponding period.

7. Dividend reinvestment plans

No dividend reinvestment plans were in operation during the reporting period or the previous corresponding period.

8. Statement of retained earnings

8.1 Retained profits (accumulated losses) at the beginning of the financial period. 8.2 Net profit (loss) attributable to members (item 3.6) 8.3 Retained profits (accumulated losses) at end of financial period. 9. Net tangible Assets Net tangible asset backing per ordinary share	Reporting period $A’000	Previous corresponding Period $A’000
	(19797) (1358) (21155)	(18094) (1703) (19797)
	Reporting period	Previous corresponding period
	1.3 cents	0.7 cents

10. Gain or loss of control over entities

There were no entities over which control was gained during the reporting period.

11. Foreign entities

No member of the Group is a foreign entity.

12. Commentary on results

12.1	Earnings per security (EPS) Basic EPS	Reporting period	Previous corresponding period
		(0.5) cents	(1.1) cents

• 12.2 Significant features of operating performance (see item 2.6)

• 12.3

The results of segments

The entity was involved in pharmaceutical research and development during the reporting period.

13. This report is based on accounts which are in the process of being audited.

14. These accounts are not likely to be subject to dispute or qualification.

15. Associates and joint venture entities

No member of the Group held an interest in, or participated in the results of, an associate or joint venture.

Appendix 4E Page 5

Appendix 4E Preliminary final report Period ended 30 June 2007

Rule 4.3A

16. Basis of Preparation

The preliminary final report does not include all the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The preliminary final report should be read in conjunction with the half-year financial report of Solbec Pharmaceuticals Ltd as at 31 December 2006. It is also recommended that the financial report be considered together with any public announcement made by Solbec Pharmaceuticals Ltd and its controlled entities during the year ended 30 June 2007 in accordance with the continuous disclosure requirements arising under the Corporations Act 2001.

The preliminary final report has been prepared in accordance with the requirements of the Australian Stock Exchange listing rules.

This preliminary final report does not constitute the full financial report for the year ended 30 June 2007.

Signed: ………………………………………………….

Date: 31/08/2007

John Sendziuk (Company Secretary)

Appendix 4E Page 6