LYCOPODIUM LIMITED — Annual Report 2014

Aug 26, 2014

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ASX RELEASE

LYCOPODIUM LIMITED 2013/14 RESULTS

27 August 2014

Revenue : $154.8 million Profit Before Tax : $7.7 million Profit After Tax : $3.7 million Earnings Per Share : 10 cents per share Total Dividend : 6.5 cents per share

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Lycopodium Limited

ABN 83 098 556 159

Level 5, 1 Adelaide Terrace East Perth, Western Australia 6004 Australia

PO Box 6832 East Perth, Western Australia 6892 Australia T: +61 (0) 8 6210 5222 www.lycopodium.com.au

For the financial year ended 30 June 2014, Lycopodium achieved revenues of $154.8 million and a net profit after tax of $3.7 million.

In addition to the segment reporting format in the Appendix 4E report, we are also including our supplemental segment reporting format (over page).

The Directors have resolved to pay a final dividend of 1.5 cents fully franked. The total dividend for the year is 6.5 cents fully franked, which is in line with the dividend policy.

During the 2013/14 financial year Lycopodium was subject to the downturn in the mining cycle and as a result our revenue and profit figures for the year were down on the preceding financial year. Specifically the lower profit reflects the reduction in workload across the group, the continued tightening of market conditions including competition for new work and the impacts of redundancies from staff reductions. The second half, in particular, contributed negatively upon the full year result. These impacts were previously advised in an earlier release in May 2014.

The headwinds within the mining and manufacturing sectors remain, however Lycopodium has taken necessary actions to reduce overheads. Moving forward we will continue to monitor our overhead levels against our current and forward workloads. Additionally there is a heightened level of marketing to identify new opportunities within the group. Once a study or project is awarded, there remains a strong focus on innovative technical and project delivery solutions to strengthen the financial robustness of our client’s projects and thereby enhance the likelihood of these projects progressing rapidly into implementation. Lycopodium is also tendering lump sum opportunities, in addition to EPCM services, to increase the potential workload within the group.

As a result of ongoing efforts we are of the view that the group is well positioned to turn around the poor result in the second half of the last financial year and return to profitability. Our balance sheet also remains in a strong position based on our cash reserves. While visibility into the future remains limited our view is that the net profit after tax for the group in 2014/15 will be above $4m. Our forecast also reflects the completion of the acquisition of ADP Holdings during the course of the financial year and a contribution to the overall result.

We will continue to actively monitor our forecasts, particularly given the uncertainty which remains in the market at this time.

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Lycopodium is extremely proud of the achievements of our personnel over the last year. All of the projects completed during the year have successfully and safely ramped up to nameplate capacity for our clients. The Board of Directors acknowledges that the company’s ability to continue to deliver world class services to our Clients and to maintain and enhance the company’s performance and capability is dependent on the continued commitment and support of our personnel.

Dividend Entitlements

The final dividend of 1.5 cents per share fully franked will be paid to shareholders on 15 October 2014, with a record date of 1 October 2014.

For further information: Rod Leonard Managing Director T: +61 8 6210 5222

Lycopodium Limited

Page 2

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Lycopodium Ltd Segment reporting (unaudited) 30 June 2014

EPCM Design & construct (lump sum) Study services Project services Unallocated revenue Unallocated revenue less unallocated expenses Profit before income tax expense Income tax expense Profit for the full-year	Segment revenues Jun-14 Jun-13 49,036,701 137,853,344 1,722,098 11,353,011 23,499,188 17,436,631 77,519,698 77,350,868		Segment results Jun-14 Jun-13 11,861,780 22,780,035 820,263 1,583,480 2,166,596 3,449,751 7,345,747 12,957,699
	151,777,685 243,993,853 2,988,300 1,946,239		22,194,386 40,770,965 0 0
	154,765,985 245,940,092		22,194,386 40,770,965 (14,511,795) (12,236,776)
			7,682,592 28,534,189 (3,973,206) (5,993,750)
			3,709,386 22,540,439

Lycopodium Limited

Page 3

Lycopodium Limited and Controlled Entities ABN 83 098 556 159

Appendix 4E - Preliminary Final Report for the year ended 30 June 2014

Lycopodium Limited and Controlled Entities ABN 83 098 556 159 Appendix 4E - Preliminary Final Report - 30 June 2014

Lodged with the ASX under Listing Rule 4.3A. This information should be read in conjunction with the Annual report

Contents

Contents
	Page
Results for Announcement to the Market	1
Preliminary Statement of Comprehensive Income	2
Preliminary Balance Sheet	3
Preliminary Statement of Changes in Equity	4
Preliminary Statement of Cash Flows	5
Preliminary Selected Notes to the Financial Statements	6
Supplementary Appendix 4E information	18

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report For the year ended 30 June 2014

Results for announcement to the market

						$
Revenuefrom ordinary activities (Appendix 4E item 2.1)	Down		37.1%	to		154,765,985
Profitfrom ordinary activities after tax attributable to members (Appendix 4E item 2.2)	Down		83.5%	to		3,709,386
Net profitfor the period attributable to members (Appendix 4E item 2.3)	Down		83.5%	to		3,709,386
		$			$
Dividends / distributions (Appendix 4E item 2.4)		Amount per security			Franked amount per security
Final dividend (cents)		1.5			1.5
Key ratios		2014			2013
		June			June
Basic earningsper share(cents)		10.0			56.5
Net tangible assets per shares (cents)		143.8			159.8

Record date for determining entitlements to the final dividends

1 October 2014

1

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Statement of Comprehensive Income For the year ended 30 June 2014

		Consolidated	Consolidated
		2014	2013
	Notes	$	$
Revenue from operations	3	154,765,985	245,940,092
Employee benefits expense		(83,811,464)	(118,107,866)
Depreciation and amortisation expense	4	(2,340,068)	(2,192,104)
Project expenses		(2,967,808)	(9,748,777)
Equipment and materials		(872,001)	(5,665,636)
Contractors		(44,196,481)	(68,181,612)
Administration and management costs		(16,086,883)	(18,667,684)
Loss on disposal of asset		(6,636)	(235,536)
Finance costs		(145,657)	(232,023)
Share of net profit of joint ventures accounted for using the equity method	9	3,343,605	5,625,335
Profit before income tax		7,682,592	28,534,189
Income tax expense	5	(3,973,206)	(5,993,750)
Profit for the year		3,709,386	22,540,439
Other comprehensive income/(expense)
Items that may be reclassified to profit or loss
Changes in the fair value of available-for-sale financial assets	6(a)	(4,000)	(2,000)
Exchange differences on translation of foreign operations	6(a)	(468,497)	1,045,265
Income tax relating to components of other comprehensive income		1,200	600
Other comprehensive income/(expense) for the year, net of tax		(471,297)	1,043,865
Total comprehensive income for the year		3,238,089	23,584,304
Profit for the year is attributable to:
Owners of Lycopodium Limited		3,878,969	21,931,946
Non-controlling interests		(169,583)	608,493
		3,709,386	22,540,439
Total comprehensive income for the year is attributable to:
Owners of Lycopodium Limited		3,407,672	22,975,811
Non-controlling interests		(169,583)	608,493
		3,238,089	23,584,304
		Cents	Cents
Earnings per share for profit attributable to the ordinary equity
holders of the company:
Basic earnings per share		10.0	56.5
Diluted earnings per share		9.8	55.4

The above preliminary statement of comprehensive income should be read in conjunction with the accompanying notes.

2

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Balance Sheet As at 30 June 2014

Notes ASSETS Current assets Cash and cash equivalents Trade and other receivables Current tax receivables Other current assets Total current assets Non-current assets Investments accounted for using the equity method 9 Available-for-sale financial assets Property, plant and equipment Intangible assets Other receivables Deferred tax assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Borrowings Current tax liabilities Provisions Total current liabilities Non-current liabilities Borrowings Provisions Total non-current liabilities Total liabilities Net assets EQUITY Contributed equity Reserves 6(a) Retained profits 6(b) Parent entity interest Non-controlling interests 7 Total equity	Consolidated 2014 $ 2013 $ 33,302,348 34,997,159 22,069,393 53,254,129 3,908,711 1,199,056 1,990,291 4,549,506
	61,270,743 93,999,850
	4,349,205 5,905,599 3,000 7,000 3,485,811 4,659,138 6,861,301 7,163,778 872,653 1,050,335 4,693,362 8,026,369
	20,265,332 26,812,219
	81,536,075 120,812,069
	15,914,353 44,857,595 554,259 1,763,637 848,020 1,493,638 - 1,097,956
	17,316,632 49,212,826
	351,167 1,012,359 988,923 1,157,067
	1,340,090 2,169,426
	18,656,722 51,382,252
	62,879,353 69,429,817
	18,999,317 18,951,697 911,737 1,140,385 42,390,395 48,639,753
	62,301,449 68,731,835 577,904 697,982
	62,879,353 69,429,817

The above preliminary balance sheet should be read in conjunction with the accompanying notes.

3

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Statement of Changes in Equity For the year ended 30 June 2014

Consolidated entity Balance at 1 July 2012 Profit for the year Other comprehensive income / (expense) Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax Foreign currency translation with non-controlling interest Dividends provided for or paid Performance rights - value of rights Performance rights - transfer on exercise Balance at 30 June 2013 Balance at 1 July 2013 Profit for the year Other comprehensive income / (expense) Total comprehensive income for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs and tax Foreign currency translation with non-controlling interest Dividends provided for or paid Performance rights - value of rights Performance rights - transfer on exercise Balance at 30 June 2014	Contributed equity $ Retained profits $ Foreign currency translation reserve $ Available for sale investment revaluation reserve $ Performance rights reserve $ Non-con- trolling interests $ Total equity $ 18,730,297 40,689,644 (604,666) (77,700) 977,272 164,740 59,879,587 - 21,931,946 - - - 608,493 22,540,439 - - 1,045,265 (1,400) - - 1,043,865
	- 21,931,946 1,045,265 (1,400) - 608,493 23,584,304
	221,400 - - - - - 221,400 - - - - - (75,251) (75,251) - (13,981,837) - - - - (13,981,837) - - - - 23,014 - 23,014 - - - - (221,400) - (221,400)
	221,400 (13,981,837) - - (198,386) (75,251) (14,034,074)
	18,951,697 48,639,753 440,599 (79,100) 778,886 697,982 69,429,817
	18,951,697 48,639,753 440,599 (79,100) 778,886 697,982 69,429,817 - 3,878,969 - - - (169,583) 3,709,386 - - (468,497) (2,800) - - (471,297) - 3,878,969 (468,497) (2,800) - (169,583) 3,238,089 47,620 - - - - - 47,620 - - - - - 49,505 49,505 - (10,128,327) - - - - (10,128,327) - - - - 290,269 - 290,269 - - - - (47,620) - (47,620) 47,620 (10,128,327) - - 242,649 49,505 (9,788,553) 18,999,317 42,390,395 (27,898) (81,900) 1,021,535 577,904 62,879,353

The above preliminary statement of changes in equity should be read in conjunction with the accompanying notes.

4

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Statement of Cash Flows For the year ended 30 June 2014

Notes Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax) Dividends received from joint venture Interest received Interest paid Income taxes paid Net cash inflow from operating activities 11 Cash flows from investing activities Payments for property, plant and equipment Payments for intangible assets Proceeds from sale of property, plant and equipment Net cash outflow from investing activities Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Dividends paid to company's shareholders 8 Repayment of hire purchase and lease liabilities Proceeds from repayment of loans under the senior manager share acquisition plan Net cash outflow from financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of year	Consolidated 2014 $ 2013 $ 177,336,870 263,367,380 (167,401,728) (229,460,274)
	9,935,142 33,907,106 4,900,000 - 721,064 958,113 - (22) (3,994,272) (11,366,101)
	11,561,934 23,499,096
	(883,169) (990,509) (160,929) (1,368,569) 35,374 -
	(1,008,724) (2,359,078)
	621,062 1,676,587 (1,157,608) (1,058,377) (10,128,326) (13,981,837) (1,479,660) (1,575,223) 177,682 183,500
	(11,966,850) (14,755,350)
	(1,413,640) 6,384,668 34,997,159 27,768,444 (281,171) 844,047
	33,302,348 34,997,159

The above preliminary statement of cash flows should be read in conjunction with the accompanying notes.

5

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014

1 Summary of significant accounting policies

(a) Basis of preparation

This preliminary financial report has been prepared in accordance with Australian Securities Exchange Listing Rules as they relate to the Appendix 4E and in accordance with the recognition and measurement requirements of the Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001 .

As such, this preliminary financial report does not include all the notes of the type included in an annual financial report and accordingly, should be read in conjunction with the annual report for the year ended 30 June 2013 and with any public announcement made by Lycopodium Limited during the period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The principal accounting policies adopted in the preparation of the financial report are consistent with those of the previous financial year.

2 Segment information

(a) Description of segments

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions.

The Board considers the business from both a product and geographic perspective and has identified nine operating segments of which two (2013: three) are reportable in accordance with the requirements of AASB 8.

The Corporate Services segment consists of managerial and legal services provided to the group in addition to strategic investment holdings.

The Minerals segment consists of engineering and related services provided to the extractive mining industry. The clients, including junior exploration companies and major multinational producers, are developing projects for a wide range of commodities. These projects range in scope from large greenfield projects involving process plant and equipment, civil, building works, control systems, services and infrastructure to small skid-mounted pilot plants.

The Project Services Africa segment consists of project management, construction management and commissioning services provided to the extractive mining industry in Africa.

All other operating segments are not reportable operating segments, as they fall under the quantitative thresholds of AASB 8. The results of these operations are included in the 'Other' column.

6

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014 (continued)

2 Segment information (continued)

(b) Segment information provided to the Board of Directors

The segment information provided to the Board of Directors for the reportable segments for the year ended 30 June 2014 and 30 June 2013 are as follows:

2014		Corporate Services		Minerals		Other		Total
Total segment revenue Inter-segment revenue Revenue from external customers Profit / (loss) before tax Interest in the profit of equity accounted joint ventures Depreciation and amortisation Income tax expense Total segment assets Total assets includes: Investment in joint ventures Additions to non-current assets (other than financial assets and deferred tax) Total segment liabilities		$ 17,746,116 (17,376,149) 369,967 (1,970,332) (418,095) 20,323 14,108,834 - 623,291		$ 150,153,633 (27,933,850) 122,219,783 9,864,978 3,343,605 (1,228,380) (3,310,715) 51,307,135 4,349,205 841,076 17,764,992		$ 46,005,783 (13,829,548) 32,176,235 (167,054) (693,593) (682,814) 17,249,491 203,021 6,623,953		$ 213,905,532 (59,139,547) 154,765,985 7,727,592 3,343,605 (2,340,068) (3,973,206) 82,665,460 4,349,205 1,044,097 25,012,236

7

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014 (continued)

2 Segment information (continued)

(b) Segment information provided to the Board of Directors (continued)

2013		Corporate Services		Minerals	Project Services Africa	Project Services Africa		Other		Total
Total segment revenue Inter-segment revenue Revenue from external customers Profit / (loss) before tax Interest in the profit of equity accounted joint ventures Depreciation and amortisation Income tax expense Total segment assets Total assets includes: Investment in joint ventures Additions to non-current assets (other than financial assets and deferred tax) Total segment liabilities		$ 21,148,404 (21,025,563) 122,841 (1,264,278) (457,450) 594 12,791,180 - 1,267,569		$ 192,882,374 (13,300,810) 179,581,564 17,966,938 5,625,336 (951,749) (3,325,473) 71,005,059 5,905,599 2,109,909 36,198,420		$ 28,987,639 (448,024) 28,539,615 4,086,969 (13,463) (1,033,737) 12,060,806 35,485 7,262,607		$ 52,243,557 (14,547,485) 37,696,072 7,789,560 (769,442) (1,635,134) 24,193,836 557,054 11,150,112		$ 295,261,974 (49,321,882) 245,940,092 28,579,189 5,625,336 (2,192,104) (5,993,750) 120,050,881 5,905,599 2,702,448 55,878,708

(c) Other segment information

(i) Segment revenue Sales between segments are carried out at arm's length and are eliminated on consolidation. The revenue from external parties reported to the board of directors is measured in a manner consistent with that in the consolidated statement of comprehensive income.

8

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014 (continued)

2 Segment information (continued)

(c) Other segment information (continued)

(i) Segment revenue (continued)

The entity is domiciled in Australia. The result of its revenue from external customers in Australia is $72,337,916 (2013: $117,791,446), and the total of revenue from external customers from other countries is $82,427,767 (2013: $128,148,645). Segment revenues are allocated based on the country in which the customer is located.

Revenues of approximately $62,790,822 (2013: $122,976,660) are derived from the top 3 customers. These revenues are attributable to the Minerals segment.

(ii) Segment profit before tax

The Board of Directors assesses the performance of the operating segments based on a measure of adjusted profit before tax.

A reconciliation of segment profit before tax to the profit before tax in the statement of comprehensive income is provided as follows:

Segment profit before tax Amortisation of customer relationships Profit before income tax as per preliminary statement of comprehensive income	Consolidated 2014 $ 2013 $ 7,727,592 28,579,189 (45,000) (45,000)
	7,682,592 28,534,189

(iii) Segment assets

The amounts provided to the Board of Directors with respect to total assets are measured in a manner consistent with that of the financial report. These assets are allocated based on the operations of the segment and the physical location of the asset.

Reportable segments' assets are reconciled to total assets as per the preliminary balance sheet as follows:

Segment assets Intersegment eliminations Intangibles arising on consolidation Deferred tax arising on consolidation Total assets as per the preliminary balance sheet	Consolidated 2014 $ 2013 $ 82,665,460 120,050,881 (6,711,877) (4,852,804) 5,609,492 5,654,492 (27,000) (40,500)
	81,536,075 120,812,069

(iv) Segment liabilities

The amounts provided to the Board of Directors with respect to total liabilities are measured in a manner consistent with that of the financial report. These liabilities are allocated based on the operations of the segment.

Reportable segments' liabilities are reconciled to total liabilities as per the preliminary balance sheet as follows:

9

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014 (continued)

2 Segment information (continued)

(c) Other segment information (continued)

(iv) Segment liabilities (continued)

Segment liabilities

Intersegment eliminations Total liabilities as per the preliminary balance sheet

Consolidated	Consolidated
2014	2013
$	$
25,012,236	55,878,708
(6,355,514)	(4,496,456)
18,656,722	51,382,252

3 Revenue

From operations Sales revenue Contract revenue Other revenue Rents and sub-lease rentals Bank interest Other revenue

Total revenue from operations

Consolidated	Consolidated
2014	2013
$	$
152,752,992	244,800,461
37,054	14,427
702,302	929,771
1,273,637	195,433
2,012,993	1,139,631
154,765,985	245,940,092

10

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014

(continued)

4 Expenses

Profit before income tax includes the following specific expenses: Depreciation Fixtures and fittings Leasehold improvements Leased plant and equipment Motor vehicles Total depreciation Amortisation Computer software Customer contracts Total amortisation Total depreciation and amortisation Finance costs Interest and finance charges paid/payable Net loss on disposal of property, plant and equipment Rental expense relating to operating leases Minimum lease payments	2014 $ 2013 $ 538,783 520,972 456,567 531,774 724,037 788,846 18,425 23,949
	1,737,812 1,865,541
	557,256 281,563 45,000 45,000
	602,256 326,563
	2,340,068 2,192,104
	145,657 232,023
	6,636 235,536
	7,452,786 7,511,313

11

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014

(continued)

5 Income tax expense

(a) Income tax expense

(a) Income tax expense
Current tax Deferred tax Adjustments for current tax of prior periods Deferred income tax included in income tax expense comprises: Increase in deferred tax assets (Decrease)/increase in deferred tax liabilities	Consolidated 2014 $ 2013 $ 1,323,277 10,073,708 3,334,192 (3,480,144) (684,263) (599,814)
	3,973,206 5,993,750
	3,529,147 (3,123,441) (194,955) (356,703)
	3,334,192 (3,480,144)

(b) Numerical reconciliation of income tax expense to prima facie tax payable

Profit before income tax expense Tax at the Australian tax rate of 30% (2013: 30%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Share-based payment Sundry items Non-assessable, non-exempt income and related non-deductible expenses Exchange differences on translation Adjustments for current tax of prior periods - over provision of prior year income tax Difference in overseas tax rates Previously unrecognised tax losses now recouped to reduce current tax expense Deferred tax asset not recognised Income tax paid in foreign jurisdiction Share of net profit of joint ventures accounted for using the equity method Income tax expense	Consolidated 2014 $ 2013 $ 7,682,592 28,534,189 2,304,778 8,560,257 87,080 6,904 143,282 42,723 (958) (155,351) 8,859 180,350
	2,543,041 8,634,883 (684,263) (599,814) (260,476) (403,923) - (761,551) 2,769,060 358,847 608,926 452,909 (1,003,082) (1,687,601)
	3,973,206 5,993,750

12

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014

(continued)

6 Reserves and retained profits

(a) Reserves

(a) Reserves
Available-for-sale investment revaluation reserve Performance rights reserve Foreign currency translation reserve Movements: Available-for-sale investment revaluation reserve Balance 1 July Revaluation - gross Deferred tax Balance 30 June Performance rights reserve Balance 1 July Performance rights plan expense Transfer to share capital - exercise of rights Balance 30 June Foreign currency translation reserve Balance 1 July Currency translation differences arising during the year Balance 30 June (b) Retained profits Balance 1 July Profit for the year Dividends Balance 30 June	Consolidated 2014 $ 2013 $ (81,900) (79,100) 1,021,535 778,886 (27,898) 440,599
	911,737 1,140,385
	Consolidated 2014 $ 2013 $ (79,100) (77,700) (4,000) (2,000) 1,200 600
	(81,900) (79,100)
	778,886 977,272 290,269 23,014 (47,620) (221,400)
	1,021,535 778,886
	440,599 (604,666) (468,497) 1,045,265
	(27,898) 440,599
	Consolidated 2014 $ 2013 $ 48,639,753 40,689,644 3,878,969 21,931,946 (10,128,327) (13,981,837)
	42,390,395 48,639,753

13

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014

(continued)

7 Non-controlling interests

Interest in: Share capital Reserves Retained profits

Consolidated	Consolidated
2014	2013
$	$
28	28
(23,615)	(73,120)
601,491	771,074
577,904	697,982

8 Dividends

(a) Ordinary shares

(a) Ordinary shares
	Parent	entity
	2014	2013
	$	$
Final dividend for the year ended 30 June 2013 of 21.0 cents (2012 - 21.0 cents)
per fully paid share paid on 15 October 2013 (2012 - 15 October 2012)
Fully franked based on tax paid @ 30% (2012: 30%)	8,180,572	8,138,572
Interim dividend for the year ended 30 June 2014 of 5.0 cents (2013 - 15.0 cents)
per fully paid share paid on 15 April 2014 (2013 - 15 April 2013)
Fully franked based on tax paid @ 30% (2013: 30%)	1,947,755	5,843,265
Total dividends provided for or paid	10,128,327	13,981,837

(b) Dividends not recognised at the end of the reporting period

(b) Dividends not recognised at the end of the reporting period
	Parent	entity
	2014	2013
	$	$
In addition to the above dividends, since year end the Directors have
recommended the payment of a final dividend of 1.5 cents per fully paid ordinary
share (2013 - 21.0 cents), fully franked based on tax paid at 30%. The aggregate
amount of the proposed dividend expected to be paid on 15 October 2014 out of
retained earnings at 30 June 2014, but not recognised as a liability at year end, is	584,477	8,180,572

14

Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014

(continued)

9 Investment in joint ventures

(a) Movements in carrying amounts

(a) Movements in carrying amounts
Carrying amount at the beginning of the financial year Share of profits after income tax Dividends received Carrying amount at the end of the financial year	Consolidated 2014 $ 2013 $ 5,905,599 280,264 3,343,605 5,625,335 (4,900,000) -
	4,349,204 5,905,599

(b) Summarised financial information of joint ventures

The group's share of the results of its joint ventures and its aggregated assets (including goodwill) and liabilities are as follows:

Ownership Interest % 2014 Joint ventures 50 2013 Joint ventures 50	Company's share of: Assets $ Liabilities $ Revenues $ Profit $ 7,449,793 3,100,591 28,871,777 3,343,605
	14,932,757 9,027,156 31,896,501 5,625,335

10 Events occurring after the reporting period

With the exception of the dividends as noted in note 8(b), no other matter or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect:

(a) the consolidated entity's operations in future financial years, or

(b) the results of those operations in future financial years, or

(c) the consolidated entity's state of affairs in future financial years.

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Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014 (continued)

11 Reconciliation of profit after income tax to net cash inflow from operating activities

Profit for the year Depreciation and amortisation Non-cash employee benefits expense - share-based payments Net loss on sale of non-current assets Share of profits of joint venture partnership Interest relating to financing activities Dividends received from joint venture Change in operating assets and liabilities: Decrease / (increase) in trade debtors and other receivables Decrease / (increase) in deferred tax assets Decrease / (increase) in other operating assets (Decrease) / increase in trade creditors Decrease in provision for income taxes payable (Decrease) / increase in other provisions Net cash inflow from operating activities

Consolidated 2014 $ 2013 $ 3,709,386 22,540,439 2,340,068 2,192,104 290,268 23,014 6,636 235,536 (3,343,605) (5,625,335) 145,657 232,000 4,900,000 - 31,184,717 (663,759) 3,334,207 (3,489,979) 2,559,215 (1,001,518) (28,943,242) 10,699,063 (3,355,273) (1,882,372) (1,266,100) 239,903

11,561,934 23,499,096

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Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Preliminary Selected Notes to the Financial Statements For the year ended 30 June 2014

(continued)

12 Earnings per share

(a) Basic earnings per share

(a) Basic earnings per share
Basic earnings per share attributable to the ordinary equity holders of the company (b) Diluted earnings per share Diluted earnings per share attributable to the ordinary equity holders of the company (c) Reconciliation of earnings used in calculating earnings per share Basic earnings per share Profit attributable to the ordinary equity holders of the company used in calculating basic earnings per share Diluted earnings per share Used in calculating diluted earnings per share (d) Weighted average number of shares used as denominator Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Performance rights Weighted average number of ordinary and potential ordinary shares used as the denominator in calculating diluted earnings per share	Consolidated 2014 Cents 2013 Cents 10.0 56.5
	Consolidated 2014 Cents 2013 Cents 9.8 55.4
	Consolidated 2014 $ 2013 $ 3,878,969 21,931,946
	3,878,969 21,931,946
	Consolidated 2014 Number 2013 Number 38,955,870 38,796,747 432,233 801,329
	39,388,103 39,598,076

(b) Diluted earnings per share

(c) Reconciliation of earnings used in calculating earnings per share

(d) Weighted average number of shares used as denominator

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Lycopodium Limited and Controlled Entities Appendix 4E - Preliminary Final Report Supplementary Appendix 4E information As at 30 June 2014

Additional dividend/distribution information (Appendix 4E item 6)

Details of dividends/distributions declared or paid during or subsequent to the year ended 30 June 2014 are as follows:

follows:
Record date	Payment date	Type	Ammount per security	Total dividend	Franked amount per security
2 October 2013	15 October 2013	Final	21.0 cents	$8,180,572	21.0 cents
2 April 2014	15 April 2014	Interim	5.0 cents	$1,947,755	5.0 cents
1 October 2014	15 October 2014	Final	1.5 cents	$584,477	1.5 cents

Audit Alert ( Appendix 4E items 15 - 17 )

This report is based on accounts which are in the process of being audited.

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