EVZ LIMITED — Interim / Quarterly Report 2011

Feb 27, 2011

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28 February 2011

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

Dear Sir / Madam

EVZ Announces Improved Profitability and Prospects

EVZ Limited (ASX: EVZ) is pleased to announce its results for the six months ended 31 December 2010 (1H11), confirming that the Company has had a significant return to profitability as compared to the previous six months trading (2H10).

Key highlights:

• Revenue of $45.9 million (2H10: $36.9 million; 1H10: $40.1 million)

• Earnings before interest and tax (EBIT) of $1.6 million (2H10: (loss of $0.6 million); 1H10: profit of $1.9 million)

• Net profit after tax (NPAT) of $0.8 million (2H10: (loss of $0.8 million); 1H10: profit $1.1 million)

• Earnings per share of 0.37 cents (2H10: (loss o 0.38 cents); 1H10: 0.51 cents) f

• Gearing remained at comfortable levels, with a net debt to equity ratio at 31 December 2010 of 16.7% (30 June 2010: 17.5%)

Commenting on the 1H11 results, EVZ Chief Executive Officer, Andrew Powis, said that following a very difficult 2H10, it was pleasing to see the Company return to profitability in 1H11.

Mr Powis said that “The result over the past six months reflects increased demand for EVZ’s services, management’s focus on streamlining operations to generate efficiencies, better margins and continued enhancement of controls across the Company’s businesses.”

The EBIT of $1.6 million saw a significant turnaround from the loss incurred in 2H10 due to on budget performances from Brockman Engineering, Danum Engineering, Syfon Systems, and TSF Engineering/ Maintenance.

Mr Powis also stated that “We are currently in the process of merging the Brockman/Danum businesses under the control of the Brockman General Manager, Mr Max Goddard, which will be completed by 1 July 2011. It is anticipated that substantial synergistic benefits will be gained from this merger”.

Commenting on the future outlook for Brockman/Danum Engineering, Syfon Systems and TSF Engineering/Maintenance, Mr Powis said that with the operational performances of these businesses having improved significantly over the past six months, forward orders in excess of $39 million and the current level of enquiries, the outlook is promising.

Whilst National Engineering is targeting further improved performance in 2H11, within its traditional markets, project volumes remain tight and project decisions continue to be delayed. However, the business is very actively marketing its services, particularly to the mining industry, and is encouraged with the future potential in this industry and the level of enquiries received.

For further information, please contact:

Andrew Powis Chief Executive Officer EVZ Limited Tel: +61 3 9545 5288 Mobile: 0418 564 466 E: andrew.powis@evz.com.au

About EVZ Limited (ASX code: EVZ)

EVZ is an emerging industrial group with a portfolio of specialist businesses in the engineering services sector. EVZ operates in the areas of engineering, power and water through their established businesses, Brockman Engineering, Danum Engineering, National Engineering, Syfon Systems and TSF Engineering/Maintenance. These businesses have strong positions in their respective markets with exceptional growth opportunities.

For further information, please visit: www.evz.com.au

Appendix 4D

Half Year Report

Six Months Ending on 31 December 2010

EVZ Limited

ABN: 87 010 550 357

Results for announcement to the market

				$A
Revenue from ordinary activities	Up	14%	to	45,861,733
Profit from ordinary activities before tax
attributable to members
	Down	21%	to	1,140,525
Profit from ordinary activities after tax	Down	27%	to	773,532
attributable to members
Net Profit for the period attributable to	Down	27%	to	773,532
members
Amount per security and franked amount				Nil
per security of final and interim dividends

Record date for determining entitlements to dividends

Not Applicable

Brief explanation of any of the above figures necessary to enable the figures to be understood:

Refer attached Report

Appendix 4D

Half Year Report

Six Months Ending on 31 December 2010

EVZ Limited

ABN: 87 010 550 357

Additional Information:

Net tangible assets per ordinary share

31	December	31	December
	2010		2009
	cents		cents
	4.4		4.7

Details of entities over which control has been gained or lost during the period

Name of entity Not applicable Control gained/lost Date of gain/loss of control Where material,

• contribution of entity to the reporting entity’s profit from ordinary activities during the period

• profit/(loss) of entity during the whole of the previous corresponding period

Dividends and Distributions

Date on which each dividend or Not Applicable distribution is payable Amount per security of foreign sourced Not Applicable dividend or distribution Details of dividend or distribution Not Applicable reinvestment plans (DRP)

Appendix 4D

Half Year Report

Six Months Ending on 31 December 2010

EVZ Limited

ABN: 87 010 550 357

Material interests in entities which are not controlled entities

Name of entity	Percentage of ownership interest held at end of period or date of disposal	Percentage of ownership interest held at end of period or date of disposal	Contribution to	net profit (loss)
Equity accounted associates and joint venture entities	Current period	Previous corresponding period	Current period $A	Previous corresponding period - $A
Total
Other material interests
Total	Nil	Nil	Nil	Nil

EVZ LIMITED

ABN 87 010 550 357

& CONTROLLED ENTITIES

Consolidated Financial Report for the

Half-year ended 31 December 2010

EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

TABLE OF CONTENTS

Page Number DIRECTORS’ REPORT .................................................................................................................... 3 AUDITOR’S INDEPENDENCE DECLARATION ............................................................................. 5 CONDENSED INCOME STATEMENT ............................................................................................. 6 CONDENSED STATEMENT OF COMPREHENSIVE INCOME ...................................................... 7 CONDENSED STATEMENT OF FINANCIAL POSITION ............................................................... 8 CONDENSED STATEMENT OF CHANGES IN EQUITY ................................................................ 9 CONDENSED STATEMENT OF CASH FLOWS ........................................................................... 10 NOTES TO THE FINANCIAL STATEMENTS ................................................................................ 11 DIRECTORS’ DECLARATION ....................................................................................................... 14 INDEPENDENT REVIEW REPORT ............................................................................................... 15

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EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

DIRECTORS’ REPORT

Your Directors submit the financial report of the economic entity for the half-year ended 31 December 2010.

Directors

The names of Directors who held office during or since the end of the half-year are as follows:

Max Findlay (Chairman) Peter Jones Keith Fagg Graham Burns

Review of Operations

The operating profit before tax of the economic entity for the six months to 31 December 2010 was $1,140,525 (31 December 2009: $1,445,200). The net profit after tax for the six months to 31 December 2010 was $773,532 (31 December 2009: $1,056,736).

The economic entity continues to:

• Target significant organic growth through a commitment to business development resources and expansion of its customer and product base.

• Integrate and consolidate existing businesses.

• Reduce the risk profile throughout the Group.

Changes in State of Affairs

There were no changes in the state of affairs during the period.

Dividends

During the half-year to 31 December 2010 there were no dividends declared or paid.

Events Subsequent to Reporting Date

There has not been any matter or circumstance other than that referred to in the financial statements or notes thereto that has arisen since the end of the half-year that has 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.

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EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

DIRECTORS’ REPORT

Auditor’s Declaration

The auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 5 for the half-year ended 31 December 2010.

This report is signed in accordance with a resolution of the Board of Directors.

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Director

Max Findlay

Dated this 25[th] day of February 2010

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EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

AUDITOR’S INDEPENDENCE DECLARATION

5

ABN 87 010 550 357

EVZ LIMITED

& Controlled Entities

CONDENSED INCOME STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Continuing Operations Revenue Cost of Sales Gross Profit Other Income Administration costs Corporate costs Business development costs Results from operating activities Net Finance costs Profit before income tax Income tax expense Profit for the period Earnings Per Share Overall Operations: Basic earnings per share Diluted earnings per share Continuing Operations: Basic earnings per share Diluted earnings per share	Consolidated 31 December 2010 $ 31 December 2009 $ 45,861,733 40,102,956 (38,085,809) (32,216,506)
	7,775,924 7,886,450 81,124 38,867 (4,924,612) (4,515,950) (582,920) (794,207) (726,410) (710,499)
	1,623,106 1,904,661 (482,581) (459,461)
	1,140,525 1,445,200 (366,993) (388,464)
	773,532 1,056,736
	Cents Cents 0.37 0.51 0.37 0.51 0.37 0.51 0.37 0.51

The accompanying notes form part of these financial statements.

6

EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Profit for the period Other comprehensive income: Exchange differences arising on translation of foreign operations Total comprehensive income for the period attributable to owners of the company	Consolidated 31 December 2010 $ 31 December 2009 $ 773,532 1,056,736 (147,058) (73,229)
	626,474 983,507

The accompanying notes form part of these financial statements.

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ABN 87 010 550 357

EVZ LIMITED

& Controlled Entities

CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2010

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Financial assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Trade and other receivables Plant and equipment Deferred tax assets Intangible assets 7 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Current tax liabilities Short-term borrowings TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term borrowings Deferred tax liabilities Other long-term provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Consolidated 31 December 2010 $ 30 June 2010 $ 5,569,234 4,442,384 17,881,838 18,048,029 1,850,571 2,083,117 87,687 11,795
	25,389,330 24,585,325
	367,326 383,691 5,971,650 6,038,887 2,004,989 2,094,247 29,342,776 29,342,776
	37,686,741 37,859,601
	63,076,071 62,444,926
	10,880,170 11,909,523 162,406 - 4,594,519 12,246,718
	15,637,095 24,156,241
	8,720,240 222,987 18,547 16,859 188,713 163,837
	8,927,500 403,683
	24,564,595 24,559,924
	38,511,476 37,885,002
	46,023,159 46,023,159 70,814 217,872 (7,582,497) (8,356,029)
	38,511,476 37,885,002

The accompanying notes form part of these financial statements.

8

EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Consolidated FOR THE HALF-YEAR ENDED 31 DECEMBER 2010 Balance at 1 July 2010 Total comprehensive income for period Profit for period Foreign currency translation reserve Total comprehensive income for period Shares issued Dividends Balance at 31 December 2010 FOR THE HALF-YEAR ENDED 31 DECEMBER 2009 Balance at 1 July 2009 Total comprehensive income for period Profit for period Foreign currency translation reserve Total comprehensive income for period Shares issued Dividends Balance at 31 December 2009	Share Capital Accumulated Losses Capital Reserves Foreign Currency Translation Reserve Total $ $ $ $ $ 46,023,159 (8,356,029) 198,700 19,172 37,885,002
	- 773,532 - - 773,532 - - - (147,058) (147,058)
	- 773,532 - (147,058) 626,474
	- - - - - - - - - -
	46,023,159 (7,582,497) 198,700 (127,886) 38,511,476
	Share Capital Accumulated Losses Capital Reserves Foreign Currency Translation Reserve Total $ $ $ $ $ 46,023,159 (8,095,678) 198,700 15,298 38,141,479
	- 1,056,736 - - 1,056,736 - - - (73,229) (73,229)
	- 1,056,736 - (73,229) 983,507
	- - - - - - - - - -
	46,023,159 (7,038,942) 198,700 (57,931) 39,124,986

The accompanying notes form part of these financial statements.

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ABN 87 010 550 357

EVZ LIMITED

& Controlled Entities

CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Finance costs Income tax (paid) / refund Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of non-current assets Purchase of non-current assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayment - Loans Proceeds – Loans Proceeds – Finance Leases Repayment - Finance Leases Net cash provided by financing activities Net increase in cash held Cash at beginning of the period Cash at end of the period	Consolidated 31 December 2010 $ 31 December 2009 $ 49,655,910 46,522,348 (49,157,103) (42,942,515) 86,611 94,147 (569,192) (553,608) 754,344 (797,218)
	770,570 2,323,154
	57,308 48,584 (546,082) (646,889)
	(488,774) (598,305)
	(937,500) (812,500) 1,600,000 - 61,880 165,704 (65,930) (76,654)
	658,450 (723,450)
	940,246 1,001,399 3,809,502 5,774,583
	4,749,748 6,775,982

The accompanying notes form part of these financial statements.

10

EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

1. Basis of preparation of half-year financial statements

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 134: Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board. The half-year report does not include full disclosures of the type normally included in an annual financial report.

Accordingly, it is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2010 and any public announcements made by EVZ Limited and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 .

This financial 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 financial report are consistent with those applied in the 30 June 2010 Annual Report.

2. Net Finance Costs

Finance costs Interest Income Net Finance Costs	Consolidated Half-Year Ended 31 December 2010 $ Half-Year Ended 31 December 2009 $ (569,192) (553,608) 86,611 94,147
	(482,581) (459,461)

3. Contingent Liabilities

There has been no change in contingent liabilities since the last annual reporting date.

4. Events Subsequent to Reporting Date

There has not been any matter or circumstance other than that referred to in the financial statements or notes thereto that has arisen since the end of the half-year, that has 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.

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EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

5. Earnings per Share

Weighted average number of ordinary shares outstanding during the period used in calculation of basic earnings per share Weighted average number of ordinary shares outstanding during the period used in calculation of diluted earnings per share Intangible Assets Goodwill: Cost Accumulated impaired losses Net Carrying Value	Consolidated Half-Year Ended 31 December 2010 No. Half-Year Ended 31 December 2009 No. 207,939,414 207,939,414	Consolidated Half-Year Ended 31 December 2010 No. Half-Year Ended 31 December 2009 No. 207,939,414 207,939,414	Consolidated Half-Year Ended 31 December 2010 No. Half-Year Ended 31 December 2009 No. 207,939,414 207,939,414
	207,939,414 207,939,414
	Consolidated Half-Year Ended 31 December 2010 $ Half-Year Ended 31 December 2009 $ 30,796,263 30,796,263 (1,453,487) (1,453,487)
		29,342,776	29,342,776

6. Intangible Assets

7. Segment Information

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.

Comparative information

This is the first year in which the Group has segmented its operations and therefore no comparative information is applicable.

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EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

7. Segment Information (continued)

Engineering Power Water Corporate $ $ $ $ Six months ended 31 December 2010 Revenue External sales 29,053,605 10,401,301 6,406,827 - Inter-segment sales - - - - Total segment revenue 29,053,605 10,401,301 6,406,827 - Reconciliation of segment revenue to group revenue Inter-segment elimination - - - - Total group revenue 29,053,605 10,401,301 6,406,827 - Segment EBIT 1,030,254 818,260 453,107 (678,515) Reconciliation of EBIT to group net profit/(loss) before tax Unallocated items Net finance costs Net profit before tax from continuing operations Segment Assets Segment Assets 28,799,054 22,674,391 9,957,609 42,649,565 Inter-segment elimination Total Group Assets	Engineering Power Water Corporate $ $ $ $ 29,053,605 10,401,301 6,406,827 - - - - -	Total $ 45,861,733 - 45,861,733 - 45,861,733 1,623,106 (482,581) 1,140,525 104,080,619 (41,004,548)
	29,053,605 10,401,301 6,406,827 -
		63,076,071

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EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

DIRECTORS’ DECLARATION

The Directo r s of the Co m pany decla r e that:

1. The fin a ncial state m ents and n o tes, as set o ut on 6 to 1 3 :

2. (a) C o mply with A ccounting S tandard A A SB 134: Interim Fin a ncial Repo r ting and t h e Corporati o ns R e gulations; a n d

3. (b) Gi v e a true an d fair view o f the econo m ic entity’s financial pos i tion as at 3 1 December 2010 and o f its performance f o r the half-y e ar ended o n that date.

4. In the D irectors’ opinion, there a re reasona b le grounds to believe th a t the Comp a ny will be able to pay it s debts a s and when they becom e due and p a yable.

This declar a tion is mad e in accorda n ce with a re s olution of t h e Board of D irectors.

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Director

Max Findlay

Dated this 25[th] day of F e bruary 2011.

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EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

INDEPENDENT REVIEW REPORT

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EVZ LIMITED

ABN 87 010 550 357

& Controlled Entities

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