COVENTRY GROUP LIMITED — Earnings Release 2007

Aug 23, 2007

ASX Release

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24 August 2007

FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2007

The directors of Coventry Group Ltd (CGL) (ASX Code: CYG) today announced the audited financial results of the Company and its controlled entities (the Group) for the year ended 30 June 2007

RESULTS SUMMARY

Revenue ($M)RevenuefromContinuing Operations ($M)NormalisedEBIT($M)NormalisedProfit after Tax($M)NetProfit/ (Loss) ($M)NTApershare ($)EPS- basic (cents)- diluted (cents)- normalised (cents)	F07 526.4509.224.313.4 (1.2) 3.21(3.8)(3.7) 35.0	% Changefrom F06+4+4+7-+3-5

The F07 year was one of marginally better trading results offset by the impacts of a number of negative significant items. These items were largely triggered by the Board’s review of the strategies, leadership and asset carrying values over the last few months. Key amongst these items were (on a before tax basis):

Gain on sale of Bitumen businessImpairment loss on automotivebusiness goodwill	$M3.0(8.8)
Loss on exit of NSW automotivebusiness	(0.7)
Write down of IT system carryingvalue including non-recurring ITexpenditure	(10.4)
Executive termination payments	(0.5)
Total	(17.4)

Whilst a large part of these are non-cash in the current period, real cash was spent in prior periods.

The sale of the Bitumen business followed a review of the strategic position in this industry, the need for further capital re-investment and its profit outlook. The proceeds of this sale are being applied to reduce debt.

F07 was a year in which the Company was very internally focused as it developed major IT projects, prepared for a major Western Australian automotive relocation and worked on integrating newly acquired businesses.

F08 will be a year of transition in which all these projects will be brought to fruition and there will be a greater emphasis on our external interactions with suppliers and customers.

The underlying potential for the Group remains strong and there are a lot of positive initiatives within the business by many highly committed staff.

DIVIDEND

As foreshadowed to the market on August 8, the Directors have determined that they will not be paying a final dividend but expect to pay a dividend relating to the F08 results. In making this decision the Directors have given careful consideration to the views and expectations of all shareholders and balanced the near term desires with the longer term interests of shareholders.

BUSINESS UNITS PERFORMANCE REVIEW

Industrial Products Distribution

Revenue for the industrial products business unit increased 19% over F06 and EBIT before corporate charges was up 14% to $22.9m with improvements registered in most but not all parts of the business. Business conditions were favourable in most areas with the exception of NSW and South Australia. The New Zealand operations performed very well and there is significant improvement potential in the newly integrated hardware business. Coopers Fluid Systems, which is well positioned to supply customers in the resources sector in both Queensland and Western Australia, performed very strongly. Most businesses maintained or improved their market positions.

Automotive Parts Distribution

Revenue for the automotive parts business was down 7% to $242m, reflecting the divestment of the NSW business and the problems emanating from the poor IT system implementation in Motor Traders South Australia, from which it is only just now (in F08) starting to recover.

The general pattern was a good result in Western Australia offset by disappointing losses in Queensland and South Australia and a small profit in the Northern Territory. Major changes in the leadership and performance of this business are underway and there is potential for significant improvement.

Gasket Manufacturing

The gasket business turned in a satisfactory performance in a mature industry setting, despite sales being down 2% to $11.1m. EBIT was $1.2m which was down 20%.

Recent initiatives are consolidating its market position and a satisfactory F08 is expected.

Bitumen Products

Despite selling this business during June 2007, sales were up 2% to $17.3m and EBIT was up 15% to $1.4m. The sale to Downer EDI for a $3m before tax capital profit went smoothly, with all employees offered equivalent employment with Downer EDI.

OUTLOOK

Trading conditions are expected to be similar to F07 and there will be emphasis on:

• efficient and effective project delivery

• business operational basics

• relating better to our suppliers and customers

• disciplined use of cash.

For further information, please contact:

Roger Flynn Executive Chairman Coventry Group Ltd (08) 9276 0390