EVZ LIMITED — Annual Report 2012

Aug 29, 2012

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30 August 2012

The Manager Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

EVZ Reports its 2012 Full-Year Results (Appendix 4E – Preliminary Final Report)

Results for announcement to the market

Results for announcement to the market
				$A
Revenue from continuing activities	Down	5%	to	62,561,655
Loss from continuing activities before tax and
impairment	Down		to	(1,227,331)
Impairment of goodwill				(7,900,000)
Loss from continuing activities before tax	Down		to	(9,127,331)
Loss from continuing activities after tax	Down		to	(8,809,116)
Loss from discontinued operations				(5,340,784)
Net Loss for the period	Down		to	(14,149,900)

No dividend has been declared for the reporting period.

Compliance Statement

The accounts are in the process of being audited.

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2012

Revenue Cost of sales Gross profit Other income Administration costs Business development costs Corporate costs Impairment of intangibles Results from operating activities Net finance costs Profit /(Loss) before income tax from continuing operations Income tax (expense)/benefit Profit/(Loss) from continuing operations Loss from discontinued operations after tax Net Profit/(Loss) for year Net Profit/(Loss) attributable to: Members of the parent entity Non-controlling interest Earnings per Share: Overall operations Basic earnings per share Diluted earnings per share Continuing operations Basic earnings per share Diluted earnings per share Discontinued operations Basic earnings per share Diluted earnings per share	Economic Entity 2012 $ 2011 $ 62,561,655 65,958,548 (50,443,540) (52,685,685)
	12,118,115 13,272,863 77,197 89,827 (9,393,577) (8,293,020) (1,208,270) (1,170,596) (1,789,224) (7,900,000) (1,462,311) -
	(8,095,759) 2,436,763 (1,031,572) (804,273)
	(9,127,331) 1,632,490 318,215 (482,219)
	(8,809,116) (5,340,784) 1,150,271 (942,871)
	(14,149,900) 207,400
	(14,077,481) 207,400 (72,419) -
	(14,149,900) 207,400
	Cents per share Cents per share (6.8) 0.10 (6.8) 0.10 (4.24) 0.55 (4.24) 0.55 (2.57) (0.45) (2.57) (0.45)

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2012

Profit/(Loss) for the year Other comprehensive income: Exchange differences arising on translation of foreign operations Total comprehensive income/(loss) for the year attributable to owners of the company Total comprehensive income/(loss) attributable to: Members of the parent entity Non-controlling interest	Economic Entity 2012 $ (14,149,900) 2011 $ 207,400 (4,421) (190,710)
	(14,154,321) 16,690
	(14,081,902) 16,690 (72,419) -
	(14,154,321) 16,690

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2012

CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories TOTAL CURRENT ASSETS NON-CURRENT ASSETS Trade and other receivables Plant and equipment Deferred tax assets Intangible assets Financial assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Short-term borrowings TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term borrowings Deferred tax liabilities Other payables TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses PARENT INTEREST Non-controlling interest TOTAL EQUITY	Economic Entity 2012 $ 2011 $ 4,303,530 4,210,546 11,551,418 17,502,083 1,892,032 1,855,800
	17,746,980 23,568,429
	430,220 372,550 6,273,610 6,029,408 3,187,157 2,077,202 19,989,290 29,342,776 114,554 111,232
	29,994,831 37,933,168
	47,741,811 61,501,597
	8,743,638 12,746,828 4,439,843 6,947,950
	13,183,481 19,694,778
	9,608,139 3,709,740 19,838 18,068 1,182,982 177,319
	10,810,959 3,905,127
	23,994,440 23,599,905
	23,747,371 37,901,692
	46,023,159 46,023,159 22,741 27,162 (22,226,110) (8,148,629)
	23,819,790 37,901,692 (72,419) -
	23,747,371 37,901,692

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2012

30 June 2012 Balance at 1 July 2011 Total comprehensive income for year Profit for year Foreign currency translation reserve Total comprehensive income for year Transactions with owners, recorded directly in equity Shares Issued Dividends Balance at 30 June 2012 30 June 2011 Balance at 1 July 2010 Total comprehensive income for year Profit for year Foreign currency translation reserve Total comprehensive income for year Transactions with owners, recorded directly in equity Shares Issued Dividends Balance at 30 June 2011	Issued Capital $ Accumulated Losses $ Capital Reserves $ Foreign Currency Translation Reserve $ Sub-Total $ Non- Controlling Interests $ Total $ 46,023,159 (8,148,629) 198,700 (171,538) 37,901,692 - 37,901,692
	- (14,077,481) - - (14,077,481) (72,419) (14,149,900) - - - (4,421) (4,421) - (4,421)
	- (14,077,481) - (4,421) (14,081,902) (72,419) (14,154,321)
	- - - - - - - - - - - - - -
	46,023,159 (22,226,110) 198,700 (175,959) 23,819,790 (72,419) 23,747,371
	46,023,159 (8,356,029) 198,700 19,172 37,885,002 - 37,885,002
	- 207,400 - - 207,400 - 207,400 - - - (190,710) (190,710) - (190,710)
	- 207,400 - (190,710) 16,690 - 16,690
	- - - - - - - - - - - - - -
	46,023,159 (8,148,629) 198,700 (171,538) 37,901,692 - 37,901,692

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2012

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Income tax paid Interest received Finance costs NET CASH FLOWS PROVIDED/(USED) BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of plant and equipment Purchase of plant and equipment NET CASH FLOWS (USED) BY INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans Repayment of bank loans Proceeds from lease financing Payments for lease financing Proceeds from other loans NET CASH FLOWS PROVIDED/(USED) BY FINANCING ACTIVITIES NET DECREASE IN CASH HELD Cash at beginning of financial year CASH AT END OF FINANCIAL YEAR	Economic Entity 2012 $ 2011 $ 85,649,506 88,126,217 (85,593,828) (84,394,100) (52,359) (182,840) 108,256 183,229 (1,261,740) (1,067,940)
	(1,150,165) 2,664,566
	37,923 61,607 (2,185,066) (1,145,996)
	(2,147,143) (1,084,389)
	2,500,000 - (1,812,500) (1,937,500) 508,080 123,230 (195,944) (123,542) 325,000 -
	1,324,636 (1,937,812)
	(1,972,672) (357,635) 3,451,867 3,809,502
	1,479,195 3,451,867

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

BASIS OF PREPARATION OF PRELIMINARY FINANCIAL STATEMENTS

The preliminary report has been prepared on an accruals basis and is based on historical costs modified, where appropriate, by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

The accounting policies applied in this preliminary report are consistent with applicable accounting standards.

PROFIT/(LOSS) FROM CONTINUING ACTIVITIES

(a) OTHER INCOME Sundry income (b) EXPENSES Movement in employee benefits Bad debts Impairment – receivables Total employee costs Foreign exchange losses Losses on sale of plant and equipment Operating lease payments Depreciation of plant and equipment (c) NET FINANCE COSTS Finance costs Interest income		Economic Entity 2012 $ 2011 $ 77,197 89,827
		77,197 89,827
		(102,040) 30,855 74,414 26,811 123,067 8,522 30,467,828 28,039,359 18,441 83,712 6,818 9,804 1,050,817 946,864 794,800 729,988
		1,137,540 986,926 (105,968) (182,653)
		1,031,572 804,273

DISCONTINUED OPERATIONS

At the company’s Annual General Meeting held on 25 November 2011, shareholders were advised that the company would seek to divest itself of the National Engineering business located in Young, NSW. Shareholders were also advised that the company would look to quarantine any losses associated with this divestment to the current financial year. At 30 June 2012, the business has been sold and provisions have been raised to cover any further associated costs.

The financial performance of the discontinued operation for the period, which is included in the loss from discontinued operations per the Statement of Comprehensive Income, is as follows:

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

DISCONTINUED OPERATIONS (Continued)

Revenue Other income Expenses Net finance costs Net loss from discontinued operations before tax Income tax benefit Loss from discontinued operations INCOME TAX (a) The prima facie tax on profit from continuing activities before income tax is reconciled to income tax as follows: Profit/(Loss) before income tax Income tax calculated at 30% (2011: 30%) Tax effect of permanent differences Under provision/(over provision) in prior years Taxation expense - offshore subsidiary Income tax expense/(benefit) The applicable weighted average effective tax rates are as follows: (b) The components of tax expense comprise: Current tax Deferred tax Under provision/(over provision) in prior years	Economic Entity 2012 $ 2011 $ 10,507,278 13,706,412 51,625 65,400 (16,543,042) (14,959,572)
	(5,984,139) (121,912) (1,187,760) (80,438)
	(6,106,051) (1,268,198) 765,267 325,327
	(5,340,784) (942,871)
	(9,127,331) 1,632,490
	(2,738,199) 489,747 2,369,881 6,201 26,064 (34,890) 24,039 21,161
	(318,215) 482,219
	(3.5%) 30%
	(221,040) 450,629 (123,239) 66,480 26,064 (34,890)
	(318,215) 482,219

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

ISSUED CAPITAL Issued and paid up 207,939,414 ordinary shares (2011: 207,420,868 ordinary shares) Nil fully paid employee shares (2011: 518,546 ordinary shares) (a) Issued and fully paid up ordinary shares Opening balance Conversion of employee shares Closing balance – 30 June 2012 Opening balance Conversion of employee shares Closing balance – 30 June 2012 (b) Fully paid employee shares Opening balance Conversion of employee shares Closing balance – 30 June 2012 Opening balance Conversion of employee shares Closing balance – 30 June 2012	Economic Entity 2012 $ 2011 $ 46,023,159 45,757,195 - 265,964
	46,023,159 46,023,159
	45,757,195 45,730,205 265,964 26,990
	46,023,159 45,757,195
	2012 No. 2011 No. 207,420,868 207,368,245 518,546 52,623
	207,939,414 207,420,868
	2012 $ 2011 $ 265,964 292,954 (265,964) (26,990)
	- 265,964
	2012 No. 2011 No. 518,546 571,169 (518,546) (52,623)
	- 518,546

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

EARNINGS PER SHARE Weighted average number of ordinary shares outstanding during the year used in calculation of Basic and Diluted Earnings per Share INTANGIBLE ASSETS Goodwill on consolidation Less impairment Goodwill on acquisition Less written off Less impairment	2012 No. 2011 No. 207,939,414 207,939,414
	2012 $ 2011 $ 3,282,532 3,282,532 - -
	3,282,532 3,282,532
	27,513,731 27,513,731 (2,906,973) -
	24,606,758 (7,900,000) 27,513,731 (1,453,487)
	16,706,758 26,060,244
	19,989,290 29,342,776

During the year, the written down carrying value of Goodwill on Acquisition of $1,453,486, relating to discontinued operations, was written off.

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

		Economic	Entity
		2012	2011
		$	$
STATEMENT OF CASH FLOWS
(i)	Cash balances comprise:
	Cash on hand	4,303,530	4,210,546
	Bank overdraft	(2,824,335)	(758,679)
	Closing cash balance	1,479,195	3,451,867
(ii)	Reconciliation of the operating profit/(loss) after tax to net cash
	flows from operations:
	Operating profit/(loss) after tax	(14,149,900)	207,400
	(Gain)/loss on sale of plant and equipment	882,102	(4,743)
	Depreciation - plant & equipment	1,020,403	1,074,209
	Foreign currency translation	(3,985)	(166,308)
	Impairment - receivables	265,026	8,522
	Impairment - inventories	(70,000)	(61,506)
	Impairment - goodwill	9,353,486	-
	Changes in assets and liabilities adjusted for effects of
	acquisition/disposal of operations during financial year
	Increase/(Decrease) in provisions for employee entitlements	(555,176)	50,550
	(Increase)/Decrease in inventories	33,768	288,823
	(Increase)/Decrease in trade and other receivables	5,624,647	449,128
	(Increase)/Decrease in deferred tax assets	(1,109,955)	17,045
	Increase/(Decrease) in payables	(2,442,351)	800,237
	Increase/(Decrease) in deferred tax liabilities	1,770	1,209
	Net cash provided/(used) by operating activities	(1,150,165)	2,664,566
(iii)	Discontinued Operations
	The net cash flows of the discontinued operation, which have been incorporated into the
	statement of cash flows, are as follows:
	Net cash inflow/(outflow) from operating activities	(849,235)	(547,838)
	Net cash inflow/(outflow) from investing activities	(9,285)	(152,967)
	Net cash inflow/(outflow) from financing activities	1,613,067	575,208
	Net cash increase/(decrease) in cash generated by the discontinued operation	754,547	(125,597)

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

SEGMENT REPORTING CONTINUING OPERATIONS:

Identification of reportable segments

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.

Operating segments are managed primarily on the basis of product category and service offerings.

Executive management monitors segment performance based on EBIT.

Basis of accounting for purposes of reporting by operating segments

Accounting policies adopted:

Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision-makers with respect to operating segments are determined in accordance with accounting policies that are consistent with those adopted in the annual financial statements of the Group.

Inter-segment transactions:

All such transactions are eliminated on consolidation for the Group’s financial statements.

– Segment Reporting Continuing Operations

Engineering Power Water Corporate 30 June 2012 $ $ $ $ REVENUE External sales 36,533,424 10,726,797 15,301,434 - Inter-segment sales - - - - Total segment revenue 36,533,424 10,726,797 15,301,434 - Reconciliation of segment revenue to group revenue Inter-segment elimination Total group revenue Segment net profit/(loss) before interest and tax 1,511,026 (9,013,905) 1,193,082 (1,785,962) Reconciliation of segment result to group net profit before tax Unallocated items Net finance costs Net profit/(loss) before tax from continuing operations	Engineering Power Water Corporate $ $ $ $ 36,533,424 10,726,797 15,301,434 - - - - -	Total $ 62,561,655 -
	36,533,424 10,726,797 15,301,434 -	62,561,655 -
		62,561,655
		(8,095,759) (1,031,572)
		(9,127,331)

The segment net profit/(loss) before tax for the Power segment includes a provision for the impairment of goodwill of $7,900,000 (2011: $Nil).

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012
Engineering Power Water Corporate 30 June 2011 $ $ $ $ REVENUE External sales 36,336,698 16,972,180 12,649,670 - Inter-segment sales - - - - Total segment revenue 36,336,698 16,972,180 12,649,670 - Reconciliation of segment revenue to group revenue Inter-segment eliminations Total group revenue Segment net profit before interest and tax 1,638,168 1,571,041 689,865 (1,462,311) Reconciliation of segment result to group net profit before tax Unallocated items Net finance costs Net profit before tax from continuing operations Secondary Reporting– including Discontinued Operations 30 June 2012 ASSETS Segment assets 21,410,896 13,125,686 10,785,407 40,421,708 Reconciliation of segment assets to group assets Inter-segment eliminations Total group assets Segment asset increases for the period Capital expenditure 322,538 1,427,350 435,178 - 322,538 1,427,350 435,178 - 30 June 2012 LIABILITIES Segment liabilities 26,368,868 18,780,395 3,414,901 11,185,403	Engineering Power Water Corporate $ $ $ $ 36,336,698 16,972,180 12,649,670 - - - - -	Total $ 65,958,548 -
	36,336,698 16,972,180 12,649,670 -	65,958,548 -
		65,958,548
		2,436,763 (804,273)
		1,632,490
		85,743,697 (38,001,886)
30 June 2012 ASSETS Segment assets Reconciliation of segment assets to group assets Inter-segment eliminations Total group assets Segment asset increases for the period Capital expenditure 30 June 2012 LIABILITIES Segment liabilities
	322,538 1,427,350 435,178 -
		47,741,811
		2,185,066
	322,538 1,427,350 435,178 -	2,185,066
	26,368,868 18,780,395 3,414,901 11,185,403	59,749,567

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

Engineering Power Water Corporate $ $ $ $ Reconciliation of segment liabilities to group liabilities Inter-segment eliminations Total group liabilities 30 June 2011 ASSETS Segment assets 30,215,552 20,798,782 8,778,541 40,154,762 Reconciliation of segment assets to group assets Inter-segment eliminations Total group assets Segment asset increases for the period Capital expenditure 355,283 607,223 170,658 12,832 355,283 607,223 170,658 12,832 30 June 2011 LIABILITIES Segment liabilities 30,620,500 17,316,657 1,947,789 9,910,823 Reconciliation of segment liabilities to group liabilities Inter-segment eliminations Total group liabilities REVENUE BY GEOGRAPHICAL REGION Revenue, including revenue from discontinued operations, attributable to external disclosed below, based on the location of the external customer:	Engineering Power Water Corporate $ $ $ $ 30,215,552 20,798,782 8,778,541 40,154,762	Total $ (35,755,127)
		23,994,440
		99,947,637 (38,446,040)
	355,283 607,223 170,658 12,832
		61,501,597
		1,145,996
	355,283 607,223 170,658 12,832	1,145,996
	30,620,500 17,316,657 1,947,789 9,910,823	59,795,769 (36,195,864)
		23,599,905
		customers is

Australia Asia Total revenue	Economic Entity 2012 $ 2011 $ 70,686,075 77,936,517 2,382,858 1,728,443
	73,068,933 79,664,960

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EVZ Limited Appendix 4E Preliminary final report Year ended 30 June 2012

ASSETS BY GEOGRAPHICAL REGION

The location of segment assets by geographical location of the assets is disclosed below:

Australia Asia Total assets	44,745,917 59,489,955 2,995,894 2,011,642
	47,741,811 61,501,597

SUBSEQUENT EVENTS

There have not been any matters or circumstances, other than that referred to in the financial statements or notes thereto, that have arisen since the end of the financial year, that have significantly affected, or may significantly affect, the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity in future financial years after the financial year.

ADDITIONAL INFORMATION

Reporting period

The applicable reporting period is 1 July 2011 to 30 June 2012.
The previous corresponding reporting period was 1 July 2010 to 30 June 2011.
	2012	2011
Net tangible assets
Net tangible assets per ordinary share	1.8 cents	4.12 cents
Details of entities over which control has been gained or lost
during the period
Name of entity	Not applicable
Control gained/lost
Dividends and Distributions
Date on which each dividend or distribution is payable
Amount per security of foreign sourced dividend or distribution	Not applicable
Details of dividend or distribution reinvestment plans	Not applicable
Material interests in entities which are not controlled entities	Not applicable

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