EVZ LIMITED — Interim / Quarterly Report 2015

Feb 25, 2015

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EVZ Limited

Appendix4D

Six Months Ending 31 December 2014

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26 February 2015, Melbourne : EVZ Limited (ASX: EVZ) has delivered its Half-Year Report (Appendix 4D) for the six months ending 31 December 2014. In summary the Group’s results were:

RESULTS FOR ANNOUNCEMENT TO THE MARKET

RESULTS SUMMARY	31 December 2014	31 December 2013	Change
	$	$	$
Revenue from continuing activities	38,034,079	31,558,922	6,475,157
Profit/(loss) from continuing activities before tax	(752,052)	(1,422,673)	670,621
Net profit/(loss) for the period	(442,588)	(1,015,370)	572,782
Other key data	$	$	$
EBITDA	631,137	(371,167)	1,002,304
EBIT	225,218	(779,588)	1,004,806
Earnings per share	(0.21) cents	(0.49) cents

No dividend has been declared or paid in the half-year ending 31 December 2014.

The six months to 31 December 2014 highlighted a return to profitability on an EBIT and EBITDA basis for the EVZ Group. Whilst trading conditions remain challenging EVZ is forecasting this improvement to continue for the remainder of FY15.

SEGMENT PERFORMANCE	External Revenue 31/12/14	External Revenue 31/12/13	EBITDA 31/12/14	EBITDA 31/12/13	EBIT 31/12/14	EBIT 31/12/13
	$’000	$’000	$’000	$’000	$’000	$’000
Engineering	15,619	11,250	896	(887)	690	(1,086)
Water	12,594	10,098	958	982	829	867
Energy	9,821	10,211	(447)	265	(513)	176
Corporate	-	-	(776)	(731)	(781)	(737)
Consolidated	38,034	31,559	631	(371)	225	(780)

Page1

Engineering:

In the prior financial year EVZ implemented significant change in the Brockman Engineering business including:

• New Management providing strategic leadership

• Expansion of Brockman’s geographical project and client reach

• Improved productivity programs from new investment in plant and equipment and labour skills.

These initiatives have contributed to a significant improvement in Brockman’s profitability in the six months results to 31 December 2014 and during this period Brockman was consistently profitable on a month to month basis.

Despite ongoing delays in projects being awarded, Brockman has significantly focused on promoting its capabilities during the tender process. This has resulted in a number of significant project wins in the six months; including:

• Esso Hastings – Tank Repairs

• Mobil Refinery – Ongoing offsite piping and structural work.

• Esso – Pipe spool fabrication.

• Apache Energy (Varanus Island) - (Bulk Tank Repair & Maintenance)

• AGC (Melville Island) - (Construction of three bulk fuel storage tanks).

• Extension of the Shell Refinery maintenance contract to 31 December 2015.

• Origin Energy Resources - (Offshore Gas Platform Pipework and Maintenance).

Brockman has $19.9m in contracted work at 31 December which underpins the forecast continued improved performance by Brockman for the remainder on the financial year. In addition Brockman currently has live tenders and prospective bids conservatively totalling $90m.

Water:

The Syfon Systems business continues to consolidate its formidable position in the Australian market and build its market share in the lucrative Asian market. Asian market expansion remains a key focus in the short to medium term.

The continued solid profitable performance by Syfon reflects; the maturity of this business, strong management, its strong position in the roof drainage markets and its solution based approach.

At 31 December 2014 Syfon has a consistent and healthy forward order book in both Australia and Asia totalling $19.2m. This along with current live tenders and prospective bids of $50m ensures an underlying profit stream for the EVZ Group.

Energy :

Capital expenditure in the Australian energy market continues to be minimal with any likely improvement not expected until the federal government formalises its domestic energy strategies. TSF Engineering’s clean energy strategy has consequently stalled and the business is currently focusing on diesel and other traditional back-up power solutions and smaller capital work projects. However, TSF Engineering remains ready to redeploy its clean energy strategy when government policy is eventually enacted.

Page2

The TSF Maintenance business has experienced some growth and continues to deliver profits, benefitting from the domestic industry’s current preference to defer capital expenditure and invest in additional maintenance to prolong the service life of existing assets. The Maintenance business strategy continues to be building on its customer and product offering to add value to whole of lifecycle costs.

Cost Reduction Strategy:

During the period EVZ has reviewed its corporate cost base and has put in place initiatives to reduce costs in the order of $300k to $400k on an annualised basis. These initiatives will be nd phased in during the 2 half of the current financial year with the full impact being reflected in FY16.

Debt Reduction Strategy Update:

The Group continues to pursue an appropriate structured debt reduction program, with the Board of Directors actively following several strategies. This strategy is focused on maximising shareholder value in line with the financier’s debt reduction expectations. These strategies include a review of its existing business portfolio and/or where appropriate a capital management program. Whilst EVZ is currently unable to satisfy its bank covenants, the Commonwealth Bank has accepted our performance against these covenant positions and is supportive of the Group’s structured debt reduction program.

Additional financial information is provided in the enclosed Appendix 4D: Half-Year Report.

About EVZ Limited: EVZ Limited (ASX: EVZ) is an industrial group with a portfolio of specialist businesses operating in the energy services and engineering services sectors. The company’s operations currently encompass the following businesses: TSF Engineering - Clean Energy Power Generation, Brockman Engineering - Industrial Tanks & Piping, Syfon Systems - Environmental Water Drainage Systems. These businesses have strong positions in their respective markets with developing growth opportunities.

For further information contact Scott Farthing, CEO +613 9545 5288.

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EVZ LIMITED

(ABN 87 010 550 357)

& CONTROLLED ENTITIES

Consolidated Financial Report for the

Half-Year ended 31 December 2014

EVZ LIMITED

(ABN 87 010 550 357)

& Controlled Entities

TABLE OF CONTENTS

Page Number DIRECTORS’ REPORT .................................................................................................................... 3 AUDITOR’S INDEPENDENCE DECLARATION ............................................................................. 4 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS ......................................... 5 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ........................................................................................................... 6 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................. 7 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................. 8 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS ............................................... 9 NOTES TO THE FINANCIAL STATEMENTS ................................................................................ 10 DIRECTORS’ DECLARATION ....................................................................................................... 16 INDEPENDENT AUDITOR’S REVIEW REPORT…………………………..………………………….17

2

EVZ LIMITED (ABN 87 010 550 357)

& Controlled Entities

DIRECTORS’ REPORT

Your Direct o rs submit t h e financial r eport of EV Z Limited and its controlled entities ( t he econom i c entity) for the half-year en d ed 31 Dec e mber 2014.

Directors

The names o f Directors w ho held office during o r since the e n d of the hal f -year are a s follows:

Max Findlay (Chairman ) Robert Edgley Graham Burns Raelene Murphy

Review of Operations

The operating loss bef o re tax fro m continuing operations of the eco n omic entit y for the si x months to 31 December 2 014 was $7 5 2,052 (31 D ecember 2 0 13 loss: $1, 4 22,673). T h e net loss a f ter tax for t h e six month s to 31 Decemb e r 2014 was $442,588 ( 3 1 Decembe r 2013 loss: $ 1,015,370) .

Changes in State of Affairs

There were no changes in the state o f affairs du r ing the peri o d.

Dividends

During the h alf-year to 31 Decembe r 2014 there were no dividends declared or paid.

Events Subsequent to Reporting Date

There has n ot been an y matter or c ircumstanc e other than that referre d to in the fi n ancial stat e ments or n o tes thereto that has arisen s ince the e n d of the hal f -year that h as significa n tly affected , or may sig n ificantly aff e ct, the operations of the ec o nomic entit y , the result s of those operations or t h e state of a ffairs of the e conomic e n tity in future fin a ncial years.

Auditor’s Declaration

The auditor’s independ e nce declara t ion under s e ction 307C of the Corp o rations Act 2 0 01 is set o u t on page 4 for the half-yea r ended 31 D ecember 2 0 14.

This report i s signed in a ccordance w ith a resolu t ion of the B o ard of Dire c tors.

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Director

Max Findlay

Dated this 26[th] day of F e bruary 201 5

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Auditor Independence Declaration Under S307C of the Corporations Act 2001 to the Directors of EVZ Limited

I declare that, to the best of my knowledge and belief, during the half year ended 31 December 2014 there have been no contraventions of:

• a) The auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• b) Any applicable code of professional conduct in relation to the review.

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CROWE HORWATH MELBOURNE

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DAVID MUNDAY Partner

Melbourne, Australia 26 February 2015

Crowe Horwath Melbourne is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omission of financial services licensees.

EVZ LIMITED

(ABN 87 010 550 357)

& Controlled Entities

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

Note Continuing Operations Revenue Cost of Sales Gross Profit Other Income Administration and corporate costs Results from operating activities Net finance costs 2 Profit/(Loss) before income tax from continuing operations Income tax (expense)/benefit Profit/(Loss) for the period from continuing operations Earnings Per Share Continuing Operations: 4 Basic earnings per share Diluted earnings per share Overall Operations: 4 Basic earnings per share Diluted earnings per share	Consolidated 31 December 2014 $ 31 December 2013 $ 38,034,079 31,558,922 (31,994,810) (26,121,382)
	6,039,269 5,437,540 18,927 66,026 (5,984,075) (6,396,818)
	74,121 (893,252) (826,173) (529,421)
	(752,052) (1,422,673) 309,464 407,303
	(442,588) (1,015,370)
	Cents Cents (0.21) (0.49) (0.21) (0.49) (0.21) (0.49) (0.21) (0.49)

The accompanying notes form part of these financial statements.

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EVZ LIMITED

(ABN 87 010 550 357)

& Controlled Entities

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

Profit/(Loss) for the period Other comprehensive income: Items that may be reclassified subsequently to profit or loss Exchange differences arising on translation of foreign operations Total comprehensive income/(loss) for the period attributable to owners of the company	Consolidated 31 December 2014 $ 31 December 2013 $ (442,588) (1,015,370) 109,856 (19,160)
	(332,732) (1,034,530)

The accompanying notes form part of these financial statements.

6

EVZ LIMITED

(ABN 87 010 550 357)

& Controlled Entities

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014

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 Intangibles 5 Financial assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Tax liabilities Provisions Short-term borrowings 3 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term borrowings 3 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 2014 $ 30 June 2014 $ 2,295,498 2,047,109 14,248,017 16,373,386 2,095,588 1,983,863 - 9,947
	18,639,103 20,414,305
	622,381 525,189 4,582,647 4,648,282 4,635,105 4,313,415 16,075,809 16,075,809 64,233 52,091
	25,980,175 25,614,786
	44,619,278 46,029,091
	12,127,342 13,817,399 14,265 750 2,508,432 2,380,563 11,280,399 3,666,849
	25,930,438 19,865,561
	302,728 7,455,614 23,763 47,219 94,979 60,595
	421,470 7,563,428
	26,351,908 27,428,989
	18,267,370 18,600,102
	46,055,159 46,055,159 3,936 (105,920) (27,791,725) (27,349,137)
	18,267,370 18,600,102

The accompanying notes form part of these financial statements.

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EVZ LIMITED

(ABN 87 010 550 357)

& Controlled Entities

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

Consolidated

FOR THE HALF-YEAR ENDED 31 DECEMBER 2014 Balance at 1 July 2014 Total comprehensive loss for period Profit/(loss) for period Foreign currency translation reserve Total comprehensive income for period Shares issued Dividends Balance at 31 December 2014	Share Capital Accumulated Losses Capital Reserves Foreign Currency Translation Reserve Total $ $ $ $ $ 46,055,159 (27,349,137) - (105,920) 18,600,102
	- (442,588) - - (442,588) - - - 109,856 109,856
	- (442,588) - 109,856 (332,732)
	- - - - - - - - - -
	46,055,159 (27,791,725) - 3,936 18,267,370

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013 Balance at 1 July 2013 Total comprehensive income for period Profit/(loss) for period Foreign currency translation reserve Total comprehensive income for period Shares issued Dividends Balance at 31 December 2013	Share Capital Accumulated Losses Capital Reserves Foreign Currency Translation Reserve Total $ $ $ $ $ 46,055,159 (21,137,642) - (40,933) 24,876,584
	- (1,015,370) - - (1,015,370) - - - (19,160) (19,160)
	- (1,015,370) - (19,160) (1,034,530)
	- - - - - - - - - -
	46,055,159 (22,153,012) - (60,093) 23,842,054

The accompanying notes form part of these financial statements.

8

EVZ LIMITED

(ABN 87 010 550 357)

& Controlled Entities

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

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 / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of plant and equipment Purchase of plant and equipment Net cash provided by / (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayment of bank loans Proceeds from finance leases Repayment of finance leases Net cash provided/(used) by financing activities Net increase/(decrease) in cash held Cash at beginning of the period Cash at end of the period	Consolidated 31 December 2014 $ 31 December 2013 $ 43,708,536 36,884,062 (42,770,622) (34,549,990) 10,577 2,508 (836,750) (531,929) (12,227) 33,813
	99,514 1,838,464
	61,904 14,746 (373,693) (290,640)
	(311,789) (275,894)
	(500,000) (500,000) 217,731 66,610 (77,674) (55,810)
	(359,943) (489,200)
	(572,218) 1,073,370 (527,579) 192,758
	(1,099,797) 1,266,128

The accompanying notes form part of these financial statements.

9

EVZ LIMITED

(ABN 87 010 550 357)

& Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

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 and Accounting Standard AASB 134: Interim Financial Reporting. Compliance with AASB134 ensures compliance with International Financial Reporting Standards IAS34 “Interim Financial Reporting”. 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 2014 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 .

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current half-year. New and revised Standards and amendments thereof and Interpretations effective for the current half-year that are relevant to the Group include:

• AASB 1031 ‘Materiality’ (2013)

• AASB 2012-3 ‘Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities’

• AASB 2013-3 ‘Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets’

• AASB 2013-9 ‘Amendments to Australian Accounting Standards’ – Part B: ‘Materiality’

• AASB 2014-1 ‘Amendments to Australian Accounting Standards’ - Part A: ‘Annual Improvements 2010-2012 and 2011-2013 Cycles’

• Part C: ‘Materiality’.

The adoption of these amending standards do not have any material impact on the disclosures or the amounts recognised in the Group's condensed consolidated financial statements.

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 2014 Annual Report.

All amounts are presented in Australian dollars, unless otherwise noted.

Going concern

As at 30 June 2014 our financier, the Commonwealth Bank of Australia extended our existing banking facilities to 1 October 2015 to allow sufficient time for EVZ to pursue a structured debt reduction which would also be in the best interest of shareholders.

EVZ is currently determining the optimum strategy for a structured debt reduction which includes a change to the capital structure and/or the orderly divestment of some of the Group’s operations and assets.

The Bank is being continually advised as to the status of the progress on the structured debt reduction program and is supportive of the Group’s strategies as well as the breaches in its bank covenant ratios.

10

EVZ LIMITED

(ABN 87 010 550 357)

& Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

The Group’s ability to continue as a going concern is therefore dependent on the Commonwealth Bank continuing to support the Group as it determines and executes its structured debt reduction program. At this stage there is nothing to suggest that the Company would not be able to roll its existing banking facilities past 1 October 2015. Should existing banking facilities not be extended, the Group may not be able to realise its assets and settle its liabilities in the ordinary course of business.

The directors have concluded that these circumstances represent a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern. Nevertheless after making enquiries and considering the uncertainties described above the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. For these reasons they continue to adopt the going concern basis in preparing the financial report of EVZ and its controlled entities at 31 December 2014.

2. Profit and Loss

Net finance costs

Finance costs Loan establishment fees Interest income Net finance costs from continuing operations Borrowings (a) Borrowings Current Liabilities Short term borrowings: Bank loans Bank overdraft Leases Non-Current Liabilities Long term borrowings: Bank loans Leases	31 December 2014 $ 31 December 2013 $ (636,750) (531,929) (200,000) - 10,577 2,508 (826,173) (529,421) 31 December 2014 $ 30 June 2014 $ 7,750,000 1,000,000 3,395,295 2,574,688 135,104 92,161 11,280,399 3,666,849 - 7,250,000 302,728 205,614 302,728 7,455,614	31 December 2014 $ 31 December 2013 $ (636,750) (531,929) (200,000) - 10,577 2,508 (826,173) (529,421) 31 December 2014 $ 30 June 2014 $ 7,750,000 1,000,000 3,395,295 2,574,688 135,104 92,161 11,280,399 3,666,849 - 7,250,000 302,728 205,614 302,728 7,455,614
		11,280,399 3,666,849
		- 7,250,000 302,728 205,614
		302,728 7,455,614

3. Borrowings

Current banking facilities mature on 1 October 2015. As at 31 December 2014 all outstanding bank loans have been classified as current. However, there is an expectation that the remaining bank loan facility as at 1 October 2015 will be extended in the normal course of business.

11

EVZ LIMITED

(ABN 87 010 550 357)

& Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

4. 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 at cost Accumulated impaired losses Net Carrying Value Goodwill on acquisition at cost Impairment – TSF Engineering Net Carrying Value	Consolidated 31 December 2014 No. 31 December 2013 No. 208,439,414 208,439,414	Consolidated 31 December 2014 No. 31 December 2013 No. 208,439,414 208,439,414	Consolidated 31 December 2014 No. 31 December 2013 No. 208,439,414 208,439,414
	208,439,414 208,439,414
	Consolidated 31 December 2014 $ 30 June 2014 $ 3,282,532 3,282,532 - -
		3,282,532	3,282,532
		24,606,758 (11,813,481)	24,606,758 (11,813,481)
		12,793,277	12,793,277
		16,075,809	16,075,809

5. Intangible assets

6. 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.

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(ABN 87 010 550 357)

EVZ LIMITED

& Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

6. Segment information (continued)

Six months ended 31 December 2014 Revenue External sales Inter-segment sales Total segment revenue Reconciliation of segment revenue to group reven Inter-segment elimination Total group revenue Segment net profit /(loss) before interest and tax Reconciliation of net profit before interest and tax to group net profit/(loss) before tax Unallocated items Other non-operating Net finance costs from continuing operations Net profit/(loss) before tax from continuing operations Included in segment net profit before interest and tax Depreciation Impairment of Receivables Segment Assets Segment Assets Inter-segment elimination Total Group Assets Segment asset increases for the period Capital Expenditure	Engineering $ 15,619,353 701,437	Energy Water Corporate $ $ $ 9,820,935 12,593,791 - - - -	Total $ 38,034,079 701,437
	16,320,790	9,820,935 12,593,791 -	38,735,516
	ue (701,437)	- - -	(701,437)
	15,619,353	9,820,935 12,593,791 -	38,034,079
	690,211	(531,603) 829,426 (780,817)	207,217
	205,725 (83,813)	66,848 128,469 4,877 - (17,569) -	(133,096) (826,173)
			(752,052)
			405,919 (101,382)
	19,938,013	6,108,123 15,394,542 28,275,557	69,716,235 (25,096,957)
	101,623	336 271,734 -
			44,619,278
			373,693

13

(ABN 87 010 550 357)

EVZ LIMITED

& Controlled Entities

Segment Liabilities Segment liabilities Inter-segment elimination Total Group Liabilities Six months ended 31 December 2013 Revenue External sales Inter-segment sales Total segment revenue Reconciliation of segment revenue to group reven Inter-segment elimination Total group revenue Segment net profit/(loss) before interest and tax Reconciliation of net profit before interest and tax to group net profit/(loss) before tax Unallocated items Net finance costs from continuing operations Net profit before tax from continuing operations Segment Assets Segment Assets Inter-segment elimination Total Group Assets Segment Liabilities Segment liabilities Inter-segment elimination Total Group Liabilities	Engineering Energy Water Corporate $ $ $ $ 24,152,297 17,175,470 4,982,918 9,484,835	Total $ 55,795,520 (29,443,612)
	11,249,523 10,211,587 10,097,812 - - - - -
		26,351,908
		31,558,922 -
	11,249,523 10,211,587 10,097,812 -	31,558,922
	ue - - - -	-
	11,249,523 10,211,587 10,097,812 -	31,558,922
	(1,086,118) 175,769 836,642 (819,545)	(893,252)
	18,729,504 15,204,108 12,100,128 30,687,586	(529,421) (1,422,673) 76,721,326 (30,058,320) 46,663,006
	23,537,855 21,007,291 2,638,928 10,039,397
		57,223,471 (34,402,519)
		22,820,952

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EVZ LIMITED

& Controlled Entities

(ABN 87 010 550 357)

7. Contingent liabilities

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

8. 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.

15

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 5 to 1 5 :

2. (a) comply with A ccounting S tandard A A SB 134: Interim Fin a ncial Repo r ting and the 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 position as at 3 1 December 2014 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 are reason a ble grounds to believe that the Co m pany will b e able to pa y its 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 26[th] day of F e bruary 201 5 .

16

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Independent Auditor’s Review Report to the Members of EVZ Limited

Report on the half year financial report

We have reviewed the accompanying half-year financial report of EVZ Limited (“Company”), which comprises the condensed consolidated statement of financial position as at 31 December 2014, the condensed consolidated statement of profit or loss, the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising both the Company and the entities it controlled at half years end or from time to time during the half year.

Directors’ responsibility for the half year financial report

The directors of EVZ Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410: Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of EVZ Limited’s financial position as at 31 December 2014 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of EVZ Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Crowe Horwath Melbourne is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omission of financial services licensees.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of EVZ Limited is not in accordance with the Corporations Act 2001 , including:

• I. giving a true and fair view of the consolidated entity’s financial position as at 31 December 2014 and of its performance for the half-year ended on that date; and

• II. complying with AASB 134: Interim Financial Reporting and the Corporations Regulations 2001

Emphasis of Matter

Without modification to our conclusion, we draw attention to Note 1 in the financial report, which indicates that as at 30 June 2014, the Commonwealth Bank of Australia (the “Bank”) extended the Company and its controlled entities’ (collectively the “Group”) existing banking facilities to 1 October 2015 to allow sufficient time for EVZ Limited to pursue a structured debt reduction.

The Group is currently determining the optimum strategy for a structured debt reduction which includes a change to the capital structure and/or the orderly divestment of some of the Group’s operations and assets.

The Bank is being continually advised as to the status of the progress on the structured debt reduction program and is supportive of the Group’s strategies as well as the breaches in its bank covenant ratios.

The Group’s ability to continue as a going concern is dependent on the Commonwealth Bank continuing to support the Group as it determines and executes its structured debt reduction program. At this stage there is nothing to suggest that the Company would not be able to roll its existing banking facilities past 1 October 2015. Should existing banking facilities not be extended, the Group may not be able to realise its assets and settle its liabilities in the ordinary course of business.

These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern.

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CROWE HORWATH MELBOURNE

DAVID MUNDAY Partner

Melbourne, Victoria 26 February 2015

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EVZ Limited

Appendix 4D

Six Months Ending on 31 December 2014

Additional Information:
	31	31
	December	December
	2014	2013
	cents	cents
Net tangible assets per ordinary share	1.1	1.8
Details of entities over which control has
been gained or lost during the period
Name of entity	Nil
Control 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 distribution is payable	Not Applicable
	Amount per security of foreign sourced dividend or distribution	Not Applicable
	Details of dividend or distribution reinvestment plans (DRP)	Not Applicable

1

EVZ Limited

Appendix 4D Six Months Ending on 31 December 2014

Additional Information:

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)	Contribution to net profit (loss)
Equity accounted associates and joint venture entities	Current period	Previous correspon ding period	Current period $A	Previous correspon ding period - $A
Total
Other material interests
Total	Nil	Nil	Nil	Nil

2