MURRAY COD AUSTRALIA LIMITED — Annual Report 2018

Aug 30, 2018

Appendix 4E Preliminary final report

Appendix 4E

Preliminary Final Report To the Australian Securities Exchange

Name of Entity	Murray Cod Australia Ltd
ABN:	74 143 928 625
Financial Year Ended:	30 June 2018
Previous Corresponding Reporting Period:	30 June 2017

RESULTS FOR ANNOUNCEMENT TO THE MARKET

	2018 $’000	Percentage increase /(decrease) over
		corresponding
		period
Revenues from continuing operations	2,635,930	212%
Profit (Loss)for the year	(241,726)	96%
Net loss for the year attributable to members	(241,726)	96%

Details of Entities over which control has been gained: Nil

Details of Dividends or Distributions
No dividends or distributions are payable.	-	-

Net Tangible Asset Backing

Net tangible assets per security	30 June 2018 $0.03	30 June 2017 $0.03

This report is based on the Annual Report which is in the process of being audited. All documents comprise the information required by Listing Rule 4.3A

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Appendix 4E Preliminary final report

Appendix 4E Contents and checklist of requirements

1. Reporting period and corresponding period.	Refer to Page 1 of this Appendix 4E.
2. Results for announcement to the market.	Refer to Page 1 of this Appendix 4E.
3. Statement of comprehensive income.	Refer to Page 3 of this Appendix 4E.
4. Statement of financial position.	Refer to Page 4 of this Appendix 4E.
5. Statement of cash flows.	Refer to Page 6 of this Appendix 4E.
6. Statement of changes in equity.	Refer to Pages 5 of this Appendix 4E.
7. Details of dividends or distributions.	Refer to Page 1 of this Appendix 4E.
8. Details of dividend or distribution reinvestment plans in operation and the last date of receipt of an election notice for participation in any dividend or distribution reinvestment plan.	N/A - No dividend reinvestment plan in operation.
9. Net tangible assets per security.	Refer to Page 1 of this Appendix 4E.
10. Details of entities over which control has been gained or lost during the period.	Refer to Page 1 of this Appendix 4E.
11. Details of joint venture entities and associated entities.	Not applicable.
12. Any other information needed by an investor to make an informed assessment of the entity’s financial performance and financial position.	Refer to Page 7 of this Appendix 4E.
13. Accounting standards used in compiling reports by foreign entities.	Not applicable.
14. A commentary on the results for the period.	Refer to Page 7 of this Appendix 4E.
15. A statement as to whether the report is based on accounts which have been audited or subject to review, are in the process of being audited or reviewed, or have not yet been audited or reviewed.	Refer to Page 1 of this Appendix 4E. This report is based on accounts which are in the process of being audited.
16. If the accounts have not yet been audited or subject to review and are likely to be subject to dispute or qualification a description of the likely dispute or qualification.	At this stage it is likely the audit report will be unqualified.
17. If the accounts have been audited or subject to review and are subject to dispute or qualification, a description of the dispute or qualification.	Not applicable.

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Appendix 4E Preliminary final report

CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2018

		30 June 2018	30 June 2017
	Note	$	$
Fish sales		1,890,441	732,012
Equipment sales		372,523	90,646
Interest & Sundry Income		372,966	22,435
Total revenue		2,635,930	845,093
Net gain from changes in fair value of biological assets		2,181,719	977,584
Gain on Acquisition		-	260,323
Total		4,817,649	2,083,000
Purchases and Input Costs		3,879,634	1,927,133
Depreciation and amortisation		313,034	115,159
Administrative and other expenses		1,001,437	214,772
Exploration Costs		-	31,800
Goodwill Written Off		-	6,229,119
Profit/(Loss) before tax		(376,456)	(6,434,983)
Less Income tax expense/(benefit)		(134,730)	9,292
Profit/(Loss) for the period		(241,726)	(6,444,275)
Other comprehensive income		-	-
Total comprehensive income/(loss) attributable to the members of the Company		(241,726)	(6,444,275)

These financial statements should be read in conjunction with the accompanying notes.

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Appendix 4E Preliminary final report

CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018

		30 June 2018	30 June 2017
	Note	$	$
Assets
Current assets
Cash and cash equivalents		2,076,942	3,132,325
Receivables & Prepayments		505,686	366,796
Biological assets		4,293,601	2,061,796
Other tradingstock		248,549	-
Total current assets		7,124,778	5,560,917
Non-current assets
Property, plant and equipment		5,308,607	3,933,919
Intangibles – Water Rights		897,050	686,450
Deferred Tax Assets		340,600	164,030
Total Non-Current Assets		6,546,257	4,784,399
Total Assets		13,671,035	10,345,316
Current liabilities
Trade and other payables		745,417	195,760
Borrowings		67,012	45,980
Provisions		43,220	6,717
Loans – Shareholders & Related Parties		549,092	519,092
Total current liabilities		1,404,741	767,549
Non-current liabilities
Borrowings		243,556	170,374
Deferred Tax Liabilities		215,162	173,320
Total non-current liabilities		458,718	343,694
Total liabilities		1,863,459	1,111,243
Net Assets (liabilities)		11,807,576	9,234,073
Shareholders’ equity		16,101,173	13,496,544
Reserves		2,114,720	1,904,120
Retained earnings		(6,408,317)	(6,166,591)
Total shareholders' equity		11,807,576	9,234,073

These financial statements should be read in conjunction with the accompanying notes.

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Appendix 4E Preliminary final report

STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2018

	Contributed		Retained
	equity	Reserves	earnings/(losses)	Total equity
At 30 June 2017	13,496,544	1,904,120	(6,166,591)	9,234,073
Comprehensive income/(loss)
attributable to shareholders			(241,726)	(241,726)
Net transfers to/from Reserves		210,600		210,600
Issue of Equity Securities	2,604,629			2,604,629
At 30 June 2018	16,101,173	2,114,720	(6,408,317)	11,807,576

These financial statements should be read in conjunction with the accompanying notes.

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Appendix 4E Preliminary final report

CONDENSED STATEMENT OF CASH FLOWS FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2018

		30 June 2018	30 June 2017
	Note	$	$
Cash flows from operating activities
Receipts from customers		2,117,209	803,672
Payments and advances to suppliers and employees		4,241,772	3,217,178)
Net cash from/ (used in) operating activities		(2,124,563)	(2,413,506)
Cash flows from investing activities
Interest received		28,354	24,851
Purchase of property, plant & equipment		1,687,429	(3,916,923)
Net cash from/ (used in) investing activities		(1,659,075)	(3,892,072)
Cash flows from financing activities
Proceeds from borrowings		167,785	725,855
Borrowings Repaid		(39,076)	(737,572)
Refund Oversubscription		-	(1,196,500)
Expenses on Issue of Share Capital		(145,369)	(711,748)
Bank Accounts Contributed on Consolidation 17/1/17		-	11,303,233
Proceeds from Issue of Share capital		2,750,000	-
Net cash from/ (used in) financing activities		2,733,340	9,383,268
Net increase/(reduction) in cash held		(1,050,298)	3,077,690
Cash at the beginning of the financial period		3,125,421	47,731
Cash and cash equivalents at the end of the year		2,075,123	3,125,421

These financial statements should be read in conjunction with the accompanying notes.

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Appendix 4E Preliminary final report

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2018

1) BASIS OF ACCOUNTING

(a) Statement of compliance

The financial statements have been prepared in accordance with the requirements of the recognition and measurement aspects of all applicable Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Boards (AASB).

PRIMARY ACTIVITY

The primary activity of the company is hatching, growing and marketing of Murray Cod under the brand name AQUNA.

SIGNIFICANT INFORMATION AND COMMENTARY

We refer readers to our recent quarterly update announced to the market on 31 July 2018. Since then the following developments have occurred:

Brand & Sales Activity

Recent visits to London and Tokyo have resulted in enquiries from Europe, USA and Japan being received. Potential and existing customers continue to be impressed by the quality and versatility of our uniquely Australian fish. The Company continues to focus on marketing its products as luxury food products under the AQUNA brand. Details can be found at WWW.AQUNA.COM

Product Lines Expanded

Sashimi

The versatility of our product has continued to expand following our recent trip to the Tokyo Seafood Show. AQUNA Cod was very well received as a sashimi fish. This is excellent for our pricing prospects in Japan as sashimi is generally sourced from the more expensive fish species. We are working through the best available distribution channels to capitalize on this opportunity.

Fresh Fish for Cooking

We continue to sell AQUNA fish to established markets in high end restaurants and retail outlets for various cooking methods used by those customers. Demand remains strong for this product and sales continue to grow.

Hot Smoked Product

As previously announced the Company expects to release the AQUNA Hot Smoked Murray Cod product to the domestic market before Christmas this year. Taste testing of this product has been extremely encouraging and negotiations with a distributor for this product are advanced. Initial testing in the UK indicates there could be a strong market for the smoked product in the UK and Europe. We note that approximately 300,000 tonnes per annum of salmon goes into smoked product each year in Europe alone.

Potential New Sites

As discussed in our announcement of 31 July 2018 negotiations are underway for new production sites. As previously announced one site would have the capacity to hold 300,000 fish whilst the larger site would have the capacity to hold approximately 900,000 fish. These negotiations have advanced and planning continues on schedule for their development. This would add to our existing capacity of 820,000 fish (this includes our contract growers). To 30 June 2018 the average weight of each fish sold was 1.43 kg and we continue to aim at increasing this to a range of 1.5 to 2kg each.

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