MCS SERVICES LIMITED — Interim / Quarterly Report 2017

Apr 27, 2017

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

MCS Services Limited

ABN66 119 641 986	Quarter ended (“current quarter”)
66 119 641 986	31 March 2017

Consolidated statement of cash flows	Current quarter$A’000	Year to date (9months)$A’000
1.Cash flows from operating activities1.1Receipts from customers1.2Payments for(a) research and development(b) product manufacturing and operatingcosts(c) advertising and marketing(d) leased assets(e) staff costs (1)(f)administration and corporate costs1.3Dividends received (see note 3)1.4Interest received1.5Interest and other costs of finance paid1.6Income taxes paid1.7Government grants and tax incentives1.8Other (GST to ATO)1.9Net cash from / (used in) operatingactivities	5,473--(24)(16)(3,973)(313)-1---(421)	14,315--(95)(57)(11,837)(1,026)-7(2)152-(1,215)
	727	242
(1): Includes payroll, PAYG, payroll tax, superannuation etc
2.Cash flows from investing activities2.1Payments to acquire:(a) property, plant and equipment(b) businesses (see item 10)(c) investments	(14)--	(63)350-

• See chapter 19 for defined terms

1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter$A’000	Year to date (9months)$A’000
(d) intellectual property(e) other non-current assets2.2Proceeds from disposal of:(a) property, plant and equipment(b) businesses (see item 10)(c) investments(d) intellectual property(e) other non-current assets2.3Cash flows from loans to other entities2.4Dividends received (see note 3)2.5Other (provide details if material)2.6Net cash from / (used in) investingactivities	----------	----------
	(14)	287

3.Cash flows from financing activities3.1Proceeds from issues of shares3.2Proceeds from issue of convertible notes3.3Proceeds from exercise of share options3.4Transaction costs related to issues ofshares, convertible notes or options3.5Proceeds from borrowings3.6Repayment of borrowings3.7Transaction costs related to loans andborrowings3.8Dividends paid3.9Other (provide details if material)3.10Net cash from / (used in) financingactivities	----350--(45)-	----350--(542)-
	305	(192)

The borrowings during the Period at 3.5 above reflects the conversion of a payment owing by the Company to the Vendors into an unsecured loan, as announced on 7[th] September 2016. Final documentation for the loan was finalised during the Period.

The payment during the Period at 3.8 above is Witholding Tax paid to the ATO by the Company in relation to dividends paid to shareholders during the previous period.

4.Net increase / (decrease) in cash andcash equivalents for the period4.1Cash and cash equivalents at beginning ofquarter/year to date4.2Net cash from / (used in) operatingactivities (item 1.9 above)4.3Net cash from / (used in) investing activities(item 2.6 above)	304727(14)	984242287

• See chapter 19 for defined terms

1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter$A’000	Year to date (9months)$A’000
4.4Net cash from / (used in) financing activities(item 3.10 above)4.5Effect of movement in exchange rates oncash held4.6Cash and cash equivalents at end ofquarter	305-	(192)-
	1,322	1,322

5.Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A’000	Previous quarter$A’000
5.1Bank balances5.2Call deposits5.3Bank overdrafts5.4Other (provide details)5.5Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	1,322---	304---
	1,322	304

6.Payments to directors of the entity and their associatesCurrent quarter$A'0006.1Aggregate amount of payments to these parties included in item 1.2426.2Aggregate amount of cash flow from loans to these parties includedin item 2.3-6.3Include below any explanation necessary to understand the transactions included initems 6.1 and 6.2	Current quarter$A'000
	42
	-
Director fees paid to, or associate entities of, the Directors.
7.Payments to related entities of the entity and theirassociatesCurrent quarter$A'0007.1Aggregate amount of payments to these parties included in item 1.2967.2Aggregate amount of cash flow from loans to these parties includedin item 2.3-7.3Include below any explanation necessary to understand the transactions included initems 7.1 and 7.2	Current quarter$A'000
	96
	-

Gross salary payments (incl superannuation) paid to the CEO and COO, plus office rent paid to a related party of the CEO.

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

8.Financing facilities availableAdd notes as necessary for anunderstanding of the position8.1Loan facilities8.2Credit standby arrangements8.3Other (please specify)	Total facility amountat quarter end$A’000	Amount drawn atquarter end$A’000
	350	350
	-	-
	-	-

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

During the Period the Company finalised the terms of an unsecured $0.35m loan from the Vendors of MCS pursuant to the Capital Restructure announced on 7 September 2016. The proceeds of the loan were effectively already held by the Company, being an element of the post-closing payment due to the Vendors of MCS.

9.Estimated cash outflows for next quarter	$A’000
9.1Research and development9.2Product manufacturing and operating costs9.3Advertising and marketing9.4Leased assets9.5Staff costs9.6Administration and corporate costs9.7Other (GST to ATO)9.8Total estimated cash outflows	--30203.800350400
	4,600

10.Acquisitions and disposals ofbusiness entities(items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1Name of entity	-	-
10.2Place of incorporation orregistration	-	-
10.3Consideration for acquisition ordisposal	-	-
10.4Total net assets	-	-
10.5Nature of business	-	-

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 28 April 2017 Company Secretary

Print name: Jonathan Asquith

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

• See chapter 19 for defined terms 1 September 2016

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