ENECO REFRESH LTD — Interim / Quarterly Report 2013

Aug 29, 2013

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Appendix 4E Preliminary Final Report period ending 30 June 2013

Results for announcement to the market

Finan cial Resul ts			Jun e 2013	June 2012
Reven ue from ord inary activit ies	Up	1 4%	6,8 84,597	6,042,772
Comp aft rehensive (L er tax attribu oss) fromo table to mem rdinary activ bers ities	Up	0 %	(7 5,291)	(75,286)

Divid ends	2 In Div 013 terim idend	2012 Interim Dividend
Amou ntperOrdin ary Security	Nil	Nil
Frank ed amountp er Security	Nil	Nil
Recor d date for de termining e ntitlementst o interim div idends	N/A
Net T angible A sset Backin g	Jun e 2013	June 2012
Net ta ngible asset backing per ordinarysec urity	$ 0.03	$0.03

Commentary

The c o mpany is g rowing wel l with reve n ue increase of 14% co m pared wit h the previo u s year. Th e place m ent of new shares for $ 3 00k to Au s tralian Gla m our Pty Ltd on 11 July 2012 helpe d provide th e worki n g capital fo r this growt h .

• The g o od perform a nce was mainly attribut e d to: 1. Revenue gr o wth and im p roved profi t ability has b een consist e nt across al l 4 operating segments. This resulte d from impr o ved market i ng efforts. A ll segments showed im p roved reve n ue. The bes t performanc e was Victo r ia with rev e nue growing by 37%. D etailed res u lts are fou n d in Note 1 Operating Segment.

• 1. Australia u n derwent on e of its hotte s t summers w hich has helped immen s ely in this g rowth.

This r e sulted in e v ery operati o n of the Co m pany bein g profitable, achieving a n Earning b e fore Interes t Tax a n d Amortis a tion (EBIT D A) of $81 4 k for the operating co m panies, be f ore corporate expenses . Reduc e d overall p rofitability c ame about mainly bec a use of incr e ase in accr u als and pr o visions. Ne t loss o f $75k resu l ted from in t erest expenses. With a substantial amount of b orrowings p aid off, th e reduc e d interest w i ll help the C ompany ac h ieve a net p r ofit sooner.

REFRESH GROUP LIMITED a n d its control l ed entities

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PRELIMINARY FINAL REPORT STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 JUNE 2013

Note Revenue 2a Cost of Sales Gross Profit Other income 2b Marketing Expenses Distribution Expenses Administrative Expenses Occupancy Expenses Other Expenses Results from operating activities Finance income 2d Finance costs 2e Loss before income tax Income tax expense Net Loss Attributable to Members of Refresh Group Limited Other comprehensive income Total comprehensive income/(loss) attributable to members of Refresh Group Limited Basic earnings/(loss) per share (cents per share)	Note	CONSOLIDATED 2013 $ 2012 $
		6,884,597 6,042,772 (2,869,919) (2,273,017)
		4,014,678 3,769,755 19,272 (23,443) (555,778) (510,515) (1,301,992) (1,222,854) (1,565,055) (1,423,087) (606,371) (572,998) (5,500) -
		(746) 16,858 5,577 186 (80,122) (92,330)
		(75,291) (75,286) - -
		(75,291) (75,286) - -
		(75,291) (75,286)
		(0.077) (0.087)

The accompanying notes form part of the Statement of Comprehensive Income

REFRESH GROUP LIMITED and its controlled entities

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PRELIMINARY FINAL REPORT STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013

ASSETS Current Assets Cash and cash equivalents Trade and other receivables Inventories Total Current Assets Non-Current Assets Property, plant and equipment Intangible assets Total Non-current assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Financial liabilities Short-term provisions and accruals Total Current Liabilities Non-current Liabilities Financial liabilities Long-term provisions Total Non-current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Notes	CONSOLIDATED 2013 2012 $ $
	3 4 5	224,194 152,542 788,914 633,221 965,208 868,013
		1,978,316 1,653,776
		1,919,847 1,933,733 781,815 756,415
		2,701,662 2,690,188
		4,679,978 4,343,964
		680,354 538,528 291,098 409,030 174,690 120,277
		1,146,142 1,067,835
		25,452 46,550 27,075 49,468
		52,527 96,018
		1,198,669 1,163,853
		3,481,309 3,180,111
		8,783,084 8,406,595 191,712 191,712 (5,493,487) (5,418,196)
		3,481,309 3,180,111

The accompanying notes form part of the Statement of Financial Position

REFRESH GROUP LIMITED and its controlled entities

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PRELIMINARY FINAL REPORT STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2013

Balance at 1 July 2011 Prior year adjustment Transactions with owners Loss for the period Balance at 30 June 2012 Balance at 1 July 2012 Equity fund raising costs Issue of share capital Transactions with owners Loss for the period Other comprehensive income Balance at 30 June 2013	Issued Capital Fund Raising Cost Other Reserves 8,946,150 (539,555) 191,712 - - -	Accumulated Losses Total (5,354,697) 3,243,610 11,787 11,787	Accumulated Losses Total (5,354,697) 3,243,610 11,787 11,787
	8,946,150 (539,555) 191,712 - - -	(5,342,910) 3,255,397 (75,286) (75,286)
	8,946,150 (539,555) 191,712	(5,418,196) 3,180,111
	8,946,150 (539,555) 191,712 - (3,411) - 379,900 - -	(5,418,196) 3,180,111 - (3,411) - 379,900
	9,326,050 (542,966) 191,712 - - - - - -	(5,418,196) 3,556,600 (75,291) (75,291) - -
	9,326,050 (542,966) 191,712	(5	,493,487) 3,481,309

The accompanying notes form part of the Statements of Changes in Equity

REFRESH GROUP LIMITED and its controlled entities

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PRELIMINARY FINAL REPORT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Borrowing costs Interest received Net cash flows provided by/(used in) operating activities Cash flows from investing activities Proceeds from sale of property, plant and equipment, and investment Purchase of property, plant and equipment Net cash flows provided by /(used in) investing activities Cash flows from financing activities Proceeds from issue of shares Proceeds from borrowings Loans from related parties Share Issue expenses Repayments of borrowings Net cash flows provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	CONSOLIDATED 2013 2012 $ $
	6,911,001 6,061,000 (6,710,516) (5,853,772) (80,122) (74,059) 5,577 186
	125,940 133,355
	(30,900) 10,877 (260,847) (132,206)
	(291,747) (121,329)
	379,900 - (120,000) 62,000 (3,411) - (19,030) (51,771)
	237,459 10,229
	71,652 22,255 152,542 130,287
	224,194 152,542

The accompanying notes form part of the Statement of Cash Flows

REFRESH GROUP LIMITED and its controlled entities

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PRELIMINARY FINAL REPORT NOTES TO AND FORMING PART OF PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2013

1. SEGMENT INFORMATION

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.

In identifying its operating segment, management follows the geographical location of the Group’s operations. Corporate costs are included under “Other”. Segment information can be analysed as follows for the reporting period under review.

					OTHER
	WA	**NSW **	VIC	QLD	(Corporate)	TOTAL
30 June 2013
Revenue from external customers	3,325,745	1,375,542	743,718	1,439,592	-	6,884,597
Other Income	(2,133)	-	21,405	-	-	19,272
Interest Expense	37,253	-	-	-	19,778	57,031
Depreciation Expense	165,452	52,547	30,810	44,494	-	293,303
Segment operating profit/(loss)	243,499	46,359	104,854	89,652	(559,655)	(75,291)
Total assets	1,832,344	881,637	500,269	1,302,042	163,686	4,679,978
Total liabilities	826,481	4,194	907	70,834	296,253	1,198,669
30 June 2012	,
Revenue from external customers	2,959,337	1,180,124	542,624	1,360,687	-	6,042,772
Other Income	(24,470)	1,027	-	-	-	(23,443)
Interest Expense	46,033	-	-	-	28,025	74,058
Depreciation Expense	185,612	49,275	31,519	50,418	-	316,824
Segment operating profit/(loss)	268,720	23,912	15,845	82,850	(466,613)	(75,286)
Total assets	1,717,825	929,829	385,431	1,284,496	26,383	4,343,964
Total liabilities	700,460	4,849	1,319	77,687	379,538	1,163,853

REFRESH GROUP LIMITED and its controlled entities

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PRELIMINARY FINAL REPORT NOTES TO AND FORMING PART OF PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2013

2. REVENUE AND EXPENSES

a. Revenue Sale of bottled water and accessories b. Other Income Gain/(loss) on disposal of property, plant and equipment c. Employee Benefits Expense Wages and salaries Workers compensation costs Superannuation costs Provisions for annual and long service leave Other employee benefits expense d. Finance Income Interest received e. Finance Costs Bank loans and other borrowings Finance charges payable under finance leases and hire purchase contracts	CONSOLIDATED 2013 2012 $ $
	6,884,597 6,042,772
	6,884,597 6,042.772
	19,272 (23,443)
	19,272 (23,443)
	2,248,762 1,989,464 42,699 45,528 223,923 198,559 32,088 12,081 43,802 57,764
	2,591,274 2,303,396
	5,577 186
	5,577 186
	74,214 84,414 5,908 7,916
	80,122 92,330

3. TRADE AND OTHER RECEIVABLES

Current Trade receivables Provision for impairment of receivables Other receivables Prepayments	CONSOLIDATED 2013 2012 $ $
	615,720 533,528 (15,000) (18,000)
	600,720 515,528 99,495 58,329 88,699 59,364
	788,914 633,221

REFRESH GROUP LIMITED and its controlled entities

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RELIMINARY FINAL REPORT NOTES TO AND FORMING PART OF PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2013

Consolidated 2013 Trade receivables Other receivables 2012 Trade receivables Other receivables	Gross Amount Past due and impaired Past due but not impaired (days overdue) Within initial trade terms 31-60 61-90 >90
	615,720 15,000 215,266 23,401 - 362,053 99,495 - 4,249 - 83,365 11,881
	715,215 15,000 219,515 23,401 83,365 373,934
	533,528 18,000 195,025 35,181 5,068 280,254 58,329 - 1,066 - 44,027 13,236
	591,857 18,000 196,091 35,181 49,095 293,490

4. INVENTORIES

Raw materials (at cost) Finished goods (at cost) Total inventories at lower of cost or net realisable value Provision for slow moving inventories	CONSOLIDATED 2013 2012 $ $
	479,453 425,819 555,790 512,228
	1,035,243 938,047 (70,035) (70,034)
	965,208 868,013

5. TRADE AND OTHER PAYABLES

Current Trade payables Other payables	CONSOLIDATED 2013 2012 $ $
	324,564 232,133 355,790 306,395
	680,354 538,528

Trade payables are non-interest bearing and are normally settled on 60-day terms.

REFRESH GROUP LIMITED and its controlled entities

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PRELIMINARY FINAL REPORT NOTES TO AND FORMING PART OF PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2013

6. SIGNIFICANT EVENTS

On 11 July 2012, the Company made a placement of 10 million shares at 3 cents to raise $300,000. On 12 July 2012, the Company issued 2,282,859 shares to its directors in lieu of directors fees, conserving cash of $79,900.

7. ACQUISITION

On 3 August 2012, the Company acquired the assets relating to the distilled water business of Saradin Pty Ltd. Saradin supplied distilled water for commercial and industrial use under the trading name “Distilled Water Supplier”. The acquisition allows Refresh to expand further into this market segment. The acquisition was settled in cash for a total consideration of $33,502.

8. EVENTS AFTER THE BALANCE SHEET DATE

Nil

9. CONTINGENT ASSETS & LIABILITIES

There are no contingent liabilities or contingent assets as at 30 June 2013 and in the interval between 30 June 2013 and the date of this report.

10. BASIS FOR PREPARATION

This preliminary final report has been prepared in accordance with ASX listing rule 4.3A and the disclosure requirements of ASX Appendix 4E. The accounting policies adopted in the preparation of the preliminary final report are consistent with those adopted in the preparation of the annual financial report.

11. UNAUDITED APPENDIX 4E

This report has not been audited. The results of the Group are subject to change post the review and audit of the current year.

REFRESH GROUP LIMITED and its controlled entities

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