OLDFIELDS HOLDINGS LIMITED — Annual Report 2011

Aug 30, 2011

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Appendix 4E - Preliminary Financial Report for the Year Ended 30 June 2011 s Limited & Controlled Entities Oldfields Holding ABN 92 000 307 988

1

OLDFIELDS HOLDINGS LIMITED AND CONTROLLED ENTITIES

ABN: 92 000 307 988

Preliminary Financial Report For The Year Ended 30 June 2011

30 June 2011
CONTENTS	Page
Appendix 4E	3
Director's Report	5
Consolidated Statement of Comprehensive Income	7
Consolidated Statement of Financial Position	8
Consolidated Statement of Changes in Equity	9
Consolidated Statement of Cash Flows	10
Notes to the Financial Statements	11

2

Oldfields Holdings Limited ABN: 92 000 307 988 and Controlled Entities

APPENDIX 4E – PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2011

Results for announcement to market
Key Information	2011 $000	2010 $000	% Change
Revenue from ordinary activities	30,588	32,014	-4.5%
Earnings before interest, tax, depreciation and amortisation	357	(1,305)	127.4%
Loss after tax from continuing operations attributable to members of the parent entity	(1,807)	(3,824)	52.7%
Loss from discontinued operations after tax	(1,028)	(3,877)	73.5%
Loss attributable to members of the parent entity	(2,835)	(7,701)	63.2%

Dividends paid and proposed

There have been no dividends paid or proposed during the year.

Statement of comprehensive income with notes to the statement

Refer to page 5 of the 30 June 2011 financial report and accompanying notes for Oldfields Holdings Limited.

Statement of financial position with notes to the statement

Refer to page 6 of the 30 June 2011 financial report and accompanying notes for Oldfields Holdings Limited.

Statement of changes in equity with notes to the statement

Refer to page 7 of the 30 June 2011 financial report and accompanying notes for Oldfields Holdings Limited.

Statement of cash flows with notes to the statement

Refer to page 8 of the 30 June 2011 financial report and accompanying notes for Oldfields Holdings Limited.

Dividend reinvestment plan

There was a dividend reinvestment plan in operation during the financial year.

Net tangible assets per share
	2011 $000	2010 $000	% Change
Net assets	2,694	3,164	-14.9%
Net assets per share	0.048	0.113
Net tangible assets	1,575	1,961	-19.7%
Net tangible assets per share	0.028	0.070

3

Oldfields Holdings Limited ABN: 92 000 307 988 and Controlled Entities

APPENDIX 4E – PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2011

Control gained or lost over entities during the year

On 31 October 2010, the Group disposed of its 47.5% interest in Tangshan Hengfeng Paint Accessories Co. The proceeds from the sale of this investment were $1,079,137 which was received upon settlement on 25 February 2011. The loss on disposal of this investment was $751,398 which has been included as part of the loss from discontinued operations for the year.

Investment in associates and joint ventures	Investment in associates and joint ventures	Investment in associates and joint ventures	Investment in associates and joint ventures
	% held	2011	2010
Material investments in associates and joint ventures are as follows:
PT Ace Oldfields	49%	1,246,863	1,285,252
Enduring Enterprises	49%	125,118	98,606
Honeytree & Partners	49%	119,108	126,985
Brisbane Garden Sheds Pty Ltd	50%	-	-
As disclosed in the financial report, the consolidated entity has recognised an aggregated share of net profit from the associates and joint ventures listed above amounting to $ 263,266 (2010: $136,214).

Commentary on the results for the period

The commentary on the results for the period is contained in the “Operating Results and Review of Operations for the year” section included within the directors’ report.

Status of audit

The 30 June 2011 financial report and accompanying notes for Oldfields Holdings Limited and Controlled Entities are in the process of being audited and are not expected to be subject to any disputes or qualifications.

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Robert Coleman

Company Secretary

31 August 2011

4

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES DIRECTORS' REPORT

Your directors present their preliminary report, together with the preliminary financial statements of the Group, being the Company and its controlled entities for the financial year ended 30 June 2011.

Directors

The names of the directors in office at any time during or since the end of the year are: Julie Garland McLellan Appointed 1 March 2011 Raymond John Titman Appointed 23 July 2010 Christopher Michael Giles Appointed 24 September 2010 William Lewis Timms Appointed 18 December 2009 Anthony Mankarios Resigned 23 July 2010 Christopher C Hext Resigned 8 July 2011

Principal Activities and Significant Changes in Nature of Activities

The principal activities of the consolidated group during the financial year were:

• manufacturing and marketing of paint brushes, paint rollers, painters tools and spray guns;

• manufacturing, marketing and exporting of Treco garden sheds, outdoor storage systems, aviaries and pet homes;

• manufacturing and marketing of scaffolding and related equipment; and

• hiring of scaffolding and related products to the building and construction industry.

Manufacturing and marketing of cleaning and personal care products ceased during the period as a result of the orderly wind-down of H & O Products Pty Ltd at 31 October 2010.

Operating Results and Review of Operations for the year

Operating Results

The consolidated group revenue for the financial year ended 30 June 2011 was $30,588,286 and was down 4.5% from the prior year (2010: $32,014,001). The consolidated net result after tax attributable to members of the parent entity was a loss of $2,834,583 which was a 63% improvement on the prior year (2010: loss of $7,701,347). This was largely due to the significant amount of one-off non-recurring costs incurred in 2010 which were predominately associated with the impairment of the consumer products division, H&O Products Pty Ltd, and property devaluations. Further discussion of the Group's operations during the year now follows:

Review of Operations

(i) Paint Applications Division

Trading conditions were generally difficult for the Paint Applications division in 2011, particularly in the latter half of the year with a wide range of retail customers reporting low sales for the period. The introduction of new participants in the home improvement sector is expected to provide benefits in 2012. Trading terms have been renewed with a range of customer groups to provide future growth and stability within this division.

(ii) Treco Garden Sheds Division

The Treco Garden Sheds division was restructured during the year. The distribution network was expanded and the Group's retail alliances were closed. The division's focus for 2012 will be continued growth of its distribution network, improvement in manufacturing processes and new product innovation. The high Australian dollar continues to impact on export sales, particularly in the UK.

(iii) Scaffold Division

The Scaffold division management changes over the last two years have brought a renewed focus on quality and customer service. The division experienced a downturn in the building and construction industry in the latter half of the year. Overall division performance for the year was an improvement on the prior year result. The division has a strong export base and is focused on developing new relationships in the international market. Performance of the division's manufacturing operation in China has improved with an emphasis on quality, cost and efficiencies following the appointment of a new general manager in Feb 2011.

(iv) PT Ace Oldfields Indonesia

Export sales growth was been slower than anticipated, associated with the volatility in the US economy. New opportunities have been identified to develop new customers and products which are expected to provide benefits to this business in 2012. Local sales continue to increase with new domestic projects expected to provide additional growth for this business.

(v) Property

A contract for the sale of land and buildings at Archerfield in Queensland was exchanged on 19 April 2011 and was settled on 15 July 2011. The property held at St Marys, New South Wales has also been listed for sale. Consideration from the disposal of these two properties will be used to reduce the overall debt of the Group.

(vi) H & O Consumer Products Division

This discontinued division delivered a negative result for the period. The wind down of this division was completed in October 2010. All finished goods and assets were sold and all outstanding commitments honoured.

Financial Position

The net assets of the consolidated group have decreased by $469,138 from 30 June 2010 to $2,694,537 at 30 June 2011 . This decrease is largely due to the following factors:

• inventory impairments of $289,814 relating to the Scaffold division;

• property devaluations of $393,354 relating to the property at St Marys, New South Wales;

• asset and liability reductions associated with the orderly wind-down of the consumer products division and the retail outlets in the Treco Sheds division;

• The directors believe that the group is in a stable financial position and will be able to pay its debts as and when they become due and payable.

5

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES DIRECTORS' REPORT

Significant Changes in State of Affairs

The following significant changes in the state of affairs of the parent entity occurred during the financial year:

(ii) On 21 July 2010, the company issued 5,067,308 ordinary shares at $0.17 each to shareholders on the basis of 1 share for every 2 shares held raising $861,442.

(ii) On 30 November 2010, the company issued 22,980,534 ordinary shares at $0.10 each to shareholders on the basis of 1 share for every 1 share held raising $2,298,053.

Changes in controlled entities and divisions:

(i) The consumer products division ceased trading during the year as a result of the orderly wind-down of H&O Products Pty Ltd in October 2010.

(ii) The Group disposed of its interest in Tangshan Hengfeng Paint Accessories Co in December 2010, resulting in a net loss of $751,358 during the year.

(iii) Retail alliances in the Treco Sheds division were wound down during the year, contributing a net loss of $839,806 during the year.

Dividends Paid or Recommended

Since the start of the financial year, no dividends have been paid or declared.

Events after the Reporting Period

On 15 July 2011, the contract for sale of the property at Archerfield QLD was settled. Consideration received in relation to this sale was used to reduce the overall debt of the Group.

On 28 August 2011, the company signed an agreement with its bankers for a finance facility for a further 11 month period.

There were no other significant events occurring after balance date.

Future Developments, Prospects and Business Strategies

To further improve the consolidated group’s profit and maximise shareholder wealth, the following developments are intended to be implemented in the near future:

(i) Focus on reduction in overall debt for the Group through the sale of the investment property at St Marys, New South Wales.

(ii) Renewed focus on the Group's core business and customer service to drive marketing and sales.

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Raymond John Titman

Dated: 31 August 2011

6

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011

Note Revenue 3 Cost of sales Gross profit Other income 3 Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Impairment expenses Loss on revaluation of investment property Finance costs Share of net profits of associates Loss before income tax 4 Income tax benefit (expense) Loss from continuing operations Loss for the year from discontinued operations after tax 6 Loss for the year Other comprehensive income: Net loss on revaluation of land and buildings 5 Effective portion of (loss)/gain on cash flow hedges 5 Exchange differences on translating foreign controlled entities 5 Other comprehensive income for the year, net of tax Total comprehensive income for the year Loss attributable to: Members of the parent entity Non-controlling interest Total comprehensive income attributable to: Members of the parent entity Non-controlling interest Earnings per share Overall Operations Basic earnings per share (cents) 7 Diluted earnings per share (cents) 7 Continuing Operations Basic earnings per share (cents) 7 Diluted earnings per share (cents) 7 Discontinued Operations Basic earnings/(loss) per share (cents) 7 Loss on remeasurement of equity investment due to business combination	Consolidated Group 2011 2010 $ $ 30,588,286 32,014,001 (15,506,894) (18,003,042)
	15,081,392 14,010,959 857,612 988,471 (9,868,686) (12,201,412) (597,647) (727,840) (1,511,722) (863,708) (3,395,163) (2,639,492) (77,596) (376,059) - (516,000) (393,354) (812,553) (1,732,939) (1,615,913) 263,266 136,214
	(1,374,837) (4,617,333) (618,514) (155,705)
	(1,993,351) (4,773,038) (1,027,692) (3,877,210)
	(3,021,043) (8,650,248)
	(68,705) (112,206) (21,172) 70,053 (431,481) 296,480
	(521,358) 254,327
	(3,542,401) (8,395,921)
	(2,834,583) (7,701,346) (186,460) (948,902)
	(3,021,043) (8,650,248)
	(3,355,941) (7,447,019) (186,460) (948,902)
	(3,542,401) (8,395,921)
	(6.14) (35.94) (6.14) (35.94) (3.91) (17.85) (3.91) (17.85) (2.22) (18.10)

The accompanying notes form part of these financial statements.

7

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011

Note ASSETS CURRENT ASSETS Cash and cash equivalents 8 Trade and other receivables 9 Inventories 10 Derivatives 11 Available for sale assets 12 Other assets 13 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Investments accounted for using the equity method 14 Property, plant and equipment 17 Investment property 18 Deferred tax assets Intangible assets 19 TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables 20 Borrowings 21 Current tax liabilities Short-term provisions 22 Derivatives 11 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Borrowings 21 Deferred tax liabilities Other long-term provisions 22 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 23 Reserves 29 Retained earnings Parent interest Non-controlling interest TOTAL EQUITY	Consolidated Group 2011 2010 $ $ 757,753 316,776 4,303,972 6,437,921 5,122,274 6,272,925 - 9,241 2,199,396 - 2,107,940 480,631
	14,491,335 13,517,494
	1,491,089 2,712,355 9,656,244 13,006,389 - 2,205,320 35,330 61,031 1,119,989 1,202,811
	12,302,652 19,187,906
	26,793,987 32,705,400
	5,015,273 6,652,925 17,573,392 19,266,829 83,513 97,934 985,191 1,151,847 11,931 -
	23,669,300 27,169,535
	364,538 2,224,843 359 - 65,253 147,347
	430,150 2,372,190
	24,099,450 29,541,725
	2,694,537 3,163,675
	18,751,301 15,657,109 (1,009,733) (1,105,124) (13,529,156) (10,077,824)
	4,212,412 4,474,161 (1,517,875) (1,310,486)
	2,694,537 3,163,675

The accompanying notes form part of these financial statements.

8

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2011

Consolidated Group Balance at 1 July 2009 Loss attributable to members of parent entity Loss attributable to non-controlling interests Total other comprehensive income for the year Transfers from foreign exchange reserve to retained earnings Revaluation increment Transactions with owners, in their capacity as owners: Shares issued during the year Transaction costs Subtotal Dividends paid by controlled entities to non-controlling interests Balance at 30 June 2010 Balance at 1 July 2010 Loss attributable to members of parent entity Loss attributable to non-controlling interests Total other comprehensive income for the year Transfers from foreign exchange reserve to retained earnings Revaluation decrement Adjustments to opening non-controlling interests Transactions with owners, in their capacity as owners: Shares issued during the year Transaction costs Subtotal Dividends paid by controlled entities to non-controlling interests Balance at 30 June 2011	Total Issued Capital Retained Earnings Cash Flow Hedge Reserve Asset Revaluation Reserve Foreign Currency Translation Reserve Option Reserve Non- controlling interests
	$ $ $ $ $ $ $ $ 12,141,959 (2,806,425) (60,812) 180,911 (1,191,829) 112,777 (189,084) 8,187,497 - - (7,701,346) - - - - - (7,701,346) - - - - - - (948,902) (948,902) - - 70,053 (112,206) 296,480 - - 254,327 - 429,947 - - (429,947) - - - - - - - - 29,449 - 29,449 3,656,524 - - - - - - 3,656,524 (141,374) - - - - - - (141,374)
	15,657,109 (10,077,824) 9,241 68,705 (1,325,296) 142,226 (1,137,986) 3,336,175 - - - - - - (172,500) (172,500)
	15,657,109 (10,077,824) 9,241 68,705 (1,325,296) 142,226 (1,310,486) 3,163,675
	15,657,109 (10,077,824) 9,241 68,705 (1,325,296) 142,226 (1,310,486) 3,163,675 - - (2,834,583) - - - - - (2,834,583) - - - - - - (186,460) (186,460) - - (21,172) (68,705) (431,481) - - (521,358) - (758,975) - - 758,975 - - - - 142,226 - - - (142,226) - - (20,929) (20,929) 3,159,496 - - - - - - 3,159,496 (65,304) - - - - - - (65,304)
	18,751,301 (13,529,156) (11,931) - (997,802) - (1,517,875) 2,694,537 - - - - - - - -
	18,751,301 (13,529,156) (11,931) - (997,802) - (1,517,875) 2,694,537

The accompanying notes form part of these financial statements.

9

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2011

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Interest received Rent received Payments to suppliers and employees Finance costs Income tax paid Interest paid to Director's Loan Net cash provided by/(used in) operating activities 27 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment Proceeds from sale of investments in associates Proceeds from disposal of subsidiary Purchase of property, plant and equipment Payment for businesses acquired Payment for shares issued by associates Net cash provided by/(used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Proceeds from borrowings Overdraft restructure to borrowings Repayment of borrowings Dividends paid by controlled entities to non-controlling interests Net cash provided by/(used in) financing activities Net increase(decrease) in cash held Cash and cash equivalents at beginning of financial year 8 Cash and cash equivalents at end of financial year 8	Consolidated Group 2011 2010 $ $ 33,516,626 41,158,121 184 81,212 234,250 512,838 (33,183,030) (40,588,016) (1,461,142) (1,613,298) (269,588) (464,902) (3,333) (70,331)
	(1,166,033) (984,376)
	1,787,967 2,302,630 1,054,138 - - 174,050 (1,376,183) (1,353,409) (45,760) (693,498) (231,920) (305,372)
	1,188,242 124,401
	3,094,192 2,081,470 364,634 110,503 1,000,000 - (1,888,960) (2,366,285) - (172,500)
	2,569,866 (346,812)
	2,592,075 (1,206,787) (2,160,666) (953,879)
	431,409 (2,160,666)

The accompanying notes form part of these financial statements.

10

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 1 Summary of Significant Accounting Policies

The preliminary financial report of Oldfields Holding Limited ("Oldfields") and its subsidiaries ("the Group") for the year ended 30 June 2011 does not include all the notes of the type that would normally be included within the annual financial report, and therefore cannot be expected to provide as full an understanding of the financial performance and financial position of the Group as the full financial report.

Basis of Preparation

The preliminary financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

Unless otherwise detailed in the notes, accounting policies have been consistently applied by the entities in the Group, and are consistent with those applied in the annual report for the year ended 30 June 2011.

Going Concern

The Group made a loss for the year ended 30 June 2011 of $3,021,043 (2010: $8,650,248) and had a net cash outflow from operating activities of $1,166,033 (2010: $984,376). The Group has also reported a net current asset deficiency of $9,177,965 (2010: $13,652,041) which is due to the classification of bank loans as current in accordance with the requirements of AASB101 Presentation of Financial Statements (refer note 21). These conditions give rise to material uncertainty which may cast doubt over the Group's ability to continue as a going concern.

Notwithstanding, the directors' believe that the Group will continue to operate as a going concern for the following reasons:

• Negotiations to renew the finance facility commenced in June 2011 and hence the debts under the previous facility, which expired on 31 July 2011, became current at the end of the financial year. A new facility agreement was re-negotiated with the Group's bankers on 28 August 2011 for a period until 31 July 2012; � Treco Garden Sheds division has been restructured to reduce fixed costs and overheads, providing ongoing savings;

• The sale of the property held at Archerfield, Queensland was settled on 15 July 2011 and the property held at St Marys, New South Wales has been listed for sale. The consideration from the sale of these properties will be used to reduce Group debt and ongoing finance costs;

• The Paint Applications division has secured a major new customer and is expected to benefit from changes in the hardware market in Australia in the coming twelve months;

• Redundancy and restructuring costs incurred during the financial year are not expected to recur;

• The Group's debts are being paid as and when they fall due; and

• Cash and cash equivalents at the end of the financial year increased by $2,592,075 compared to the prior year.

Should the Group be unable to continue as a going concern it may be required to realise its assets and discharge its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount of liabilities that might result should the company be unable to continue as a going concern and meet its debts as and when they fall due.

Note 2 Parent Information

STATEMENT OF FINANCIAL POSITION ASSETS Current Assets TOTAL ASSETS LIABILITIES Current Liabilities TOTAL LIABILITIES EQUITY Issued Capital Retained earnings Asset revaluation reserve Cash flow hedge reserve TOTAL EQUITY STATEMENT OF COMPREHENSIVE INCOME Total loss before tax Total comprehensive income The following information has been extracted from the books and records of the parent entity and have been prepared in accordance with the Accounting Standards.	2011 2010 $ $ 10,277,758 9,693,276
	12,886,450 11,735,257
	631,345 4,199,431
	571,568 4,434,231
	18,751,301 15,657,109 (6,424,488) (8,507,550) - 142,226 (11,931) 9,241
	12,314,882 7,301,026
	(894) (3,205,442)
	417,094 (3,035,887)

Guarantees

The parent entity has not entered into any guarantees on behalf of the Group or any individual entity within the Group as at 30 June 2011 or 30 June 2010.

Contingent liabilities

The parent entity did not have any contingent liabilities as at 30 June 2011 or 30 June 2010.

Contractual commitments

The parent entity did not have any contractual commitments as at 30 June 2011 or 30 June 2010.

11

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 3 Revenue and Other Income

(a) Revenue from continuing operations Sales revenue — sale of goods — rental revenue of scaffold equipment Total revenue Other income — gain on disposal of property, plant and equipment — gains on disposal of non-current investments — investment loan write back — rental revenue for property investment — interest received — export market development grant — other income Total other income Interest revenue from: — other persons Total interest revenue Note 4 Loss for the Year Expenses Cost of sales Interest expense: — Directors — Associated companies — Other related parties — Other persons Total interest expense Foreign currency translation losses Impairment of goodwill Impairment of assets Bad and doubtful debts: — trade receivables Total bad and doubtful debts Rental expense on operating leases — minimum lease payments Loss on remeasurement of equity investment due to business combination Loss on revaluation of investment property Note 5 Other Comprehensive Income Loss before income tax from continuing operations includes the following specific expenses:	Consolidated Group 2011 2010 $ $ 17,687,475 17,903,302 12,900,811 14,110,699
	30,588,286 32,014,001
	37,647 71,414 - 82,008 223,081 - 206,140 265,002 174 81,207 36,449 - 354,121 488,840
	857,612 988,471
	174 81,207
	174 81,207
	Consolidated Group 2011 2010 $ $ 15,506,894 18,003,042 - 70,331 2,295 43,421 58,500 - 1,672,144 1,502,161
	1,732,939 1,615,913
	47,661 10,180 - 107,679 77,596 268,380 (74,148) 385,891
	(74,148) 385,891
	1,312,841 1,751,309 - 516,000 393,354 812,553

Tax effects relating to each component of other comprehensive income:

Consolidated Group Gain on land and buildings revaluation Gain on cash flow hedges Exchange differences on translating foreign controlled entities	2011 2010 $ $ $ $ $ $ (98,150) 29,445 (68,705) (160,294) 48,088 (112,206) (30,246) 9,074 (21,172) 100,076 (30,023) 70,053 (616,401) 184,920 (431,481) 423,543 (127,063) 296,480 Before-tax amount Tax (expense) benefit Net-of-tax amount Before-tax amount Tax (expense) benefit Net-of-tax amount
	(744,797) 223,439 (521,358) 363,325 (108,998) 254,327

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OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 6 Discontinued Operations

(i) Tangshan Hengfeng Paint Accessories Co.

On 31 October 2010, the Group disposed of its 47.5% interest in Tangshan Hengfeng Paint Accessories Co. The proceeds from the sale of this investment were $1,079,137 which were received upon settlement on 25 February 2011. The loss on disposal of this investment was $751,398 which has been included as part of the loss from discontinued operations for the year.

included as part of the loss from discontinued operations for the year.
Share of net profit/(loss) of associates and joint ventures Loss on disposal of investment in joint venture	2011 2010 $ $ 86,504 (22,993) (837,902) -
	(751,398) (22,993)

(ii) H&O Products Pty Ltd On 31 October 2010, H&O Products Pty Ltd, the Group's consumer products division, was wound down. The loss for the year from the discontinued operation is as follows:

Revenue Cost of sales Gross profit Other income Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Impairment expense Finance costs Loss before income tax Income tax expense Loss for the year	2011 2010 $ $ 1,025,341 6,022,243 (1,388,425) (6,352,802)
	(363,084) (330,559) 809,067 18,055 (270,203) (894,417) (51,420) (86,727) (173,723) (503,907) (43,657) (85,263) (2,923) (2,738,700) (69,735) (89,939)
	(165,678) (4,711,457) (1,452,008) 1,441,588
	(1,617,686) (3,269,869)

(iii) Adelaide Garden Sheds Pty Ltd

On 31 August 2010, Adelaide Garden Sheds Pty Ltd, one of the Group's retail alliances, was wound down. The loss for the year from the discontinued operation is as follows:

Revenue Cost of sales Gross profit Other income Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Impairment expense Finance costs Loss before income tax Income tax expense Loss for the year	2011 2010 $ $ 10,810 165,980 (13,593) (88,460)
	(2,783) 77,520 - 288 (22,164) (128,731) (2,708) (24,316) (6,284) (24,439) (2,824) - - (546) (1,102) (3,929)
	(37,865) (104,153) 11,506 31,213
	(26,359) (72,940)

(iv) Backyard Installations Pty Ltd

During the year, Backyard Installations Pty Ltd, one of the Group's retail alliances, was wound down. The loss for the year from the discontinued operation is as follows:

Revenue Cost of sales Gross profit Other income Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Impairment expense Finance costs Loss before income tax Income tax expense Loss for the year	2011 2010 $ $ 1,734,194 2,096,452 (1,348,167) (773,048)
	386,027 1,323,404 2,127 44,732 (871,503) (1,066,350) (167,034) (214,595) (132,799) (170,954) (17,828) - - (332) (931) (2,438)
	(801,941) (86,533) 241,162 25,812
	(560,779) (60,721)

13

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 6 Discontinued Operations (continued)

(v) Brisbane Garden Sheds Pty Ltd

During the year, the Group decided to dissolve the joint venture entity Brisbane Garden Sheds Pty Ltd. The wind-down of this entity is expected to be completed by 30 September 2011.

Share of net profit/(loss) of associates and joint ventures Note 7 Earnings per Share (a) Reconciliation of earnings to loss for the year Loss Loss attributable to non-controlling equity interest Earnings used to calculate basic EPS (b) Reconciliation of earnings to loss from continuing operations Loss from continuing operations Loss attributable to non-controlling equity interest in respect of continuing operations Earnings used to calculate basic EPS from continuing operations (c) Reconciliation of earnings to loss from discontinuing operations Loss from discontinuing operations Loss attributable to non-controlling equity interest Earnings used to calculated basic EPS from discontinuing operations (d) Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS	2011 2010 $ $ 12,565 (44,038)
	12,565 (44,038)
	Consolidated Group 2011 2010 $ $ (3,021,043) (8,650,248) 186,460 948,902 (2,834,583) (7,701,346) (1,993,351) (4,773,038) 186,460 948,902 (1,806,891) (3,824,136) (1,027,692) (3,877,210) - -
	(1,027,692) (3,877,210)
	No. No. 46,195,968 20,632,445

(e) Diluted earnings per share is not reflected for discontinuing operations as the result is anti-dilutive in nature.

(f) Options have not been included in the calculation of dilutive earnings per share as these are anti-dilutive in nature and would artificially increase the earnings per share amount.

Note 8 Cash and Cash Equivalents

	Consolidated	Group
	2011	2010
	$	$
Cash at bank and in hand	757,753	316,776
	757,753	316,776
Reconciliation of cash
Cash at the end of the financial year as shown in the statement of cash flows is reconciled
to items in the statement of financial position as follows:
Cash and cash equivalents	757,753	316,776
Bank overdrafts	(326,344)	(2,477,442)
	431,409	(2,160,666)

A fixed and floating charge over cash and cash equivalents has been provided for certain debt. Refer to Note 21 for further details.

Note 9 Trade and Other Receivables

CURRENT Trade receivables Provision for impairment Amounts receivable from: — associated companies — other receivables Total current trade and other receivables	Consolidated Group 2011 2010 $ $ 4,454,264 6,164,217 (247,019) (436,769)
	4,207,245 5,727,448 96,727 500,624 - 209,849
	4,303,972 6,437,921

14

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 10 Inventories

CURRENT At cost: Raw materials and stores Work in progress Finished goods Goods in transit Less provisions	Consolidated Group 2011 2010 $ $ 1,159,050 3,823,687 21,600 3,461 3,839,702 3,599,848 391,736 431,986
	5,412,088 7,858,982 (289,814) (1,586,057)
	5,122,274 6,272,925

Note 11 Derivatives CURRENT Forward exchange contracts	Consolidated Group 2011 2010 $ $ (11,931) 9,241
	(11,931) 9,241

Forward exchange contracts are used to hedge cash flow risk associated with future transactions. Gains and losses arising from changes in the fair value of derivatives are initially recognised directly in a hedge reserve in the equity section of the statement of financial position. At the date of the transaction, amounts included in the hedge reserve are transferred from equity and included in either the statement of comprehensive income or the cost of assets. The statement of changes in equity includes transfers to and from the hedge reserve.

Note 12 Available for sale assets

CURRENT Investment property held for sale	Consolidated Group 2011 2010 $ $ 2,199,396 -
	2,199,396 -

The property held at St Marys New South Wales has been listed for sale. This property was revalued at 27 May 2011 by the directors of Oldfields Holdings Limited in line with commercial valuations. The consideration from the sale of this property will be used to reduce the overall debt of the Group.

Note 13 Other Assets

CURRENT Prepayments Assets in progress Other debtors Note 14 Investments Accounted for Using the Equity Method	Consolidated Group 2011 2010 $ $ 341,736 480,631 49,438 - 1,716,766 -
	2,107,940 480,631

Associated companies	Consolidated Group 2011 2010 $ $ 1,491,089 2,712,355
	1,491,089 2,712,355

15

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 15 Associated Companies

Interests are held in the following associated companies

Name Principal Activities Shares OwnershipInterest Country of Incorporation	CarryingAmount of Investment
Unlisted: Paint Brush Manufacturer Indonesia Ordinary 49.00% 49.00% Brisbane Garden Sheds Garden Shed Supplier Australia Ordinary 50.00% 50.00% Enduring Enterprises Hardware Reseller Singapore Ordinary 49.00% 49.00% Hardware Marketing Singapore Ordinary 49.00% 49.00% Paint Brush Manufacturer China Ordinary 0.00% 47.50% 2011 % 2010 % PT Ace Oldfields Honeytree & Partners Tangshan Hengfeng	2011 $000 1,246,863 1,285,252 - - 125,118 98,606 119,108 126,985 - 1,201,512 2010 $000
	1,491,089 2,712,355

(i) The Group contributed $224,995 in March 2011 to a rights issue in PT Ace Oldfields, being the Group's manufacturing plant in Jakarta. After this rights issue, the Group remained a 49% shareholder as all shareholders took up their pro-rata rights. The funds were used to reduce debt and provide working capital.

(ii) The Group disposed of its interest in Tangshan Hengfeng Paint Accessories Co in December 2010.

Note 16 Controlled Entities

• (a) Controlled Entities Consolidated

Controlled Entities Consolidated
	Country of Incorporation	Percentage	Owned (%)*
		2011	2010
Subsidiaries of Oldfields Holdings Limited:
Oldfields Pty Limited	Australia	100.00%	100.00%
Oldfields Access Pty Limited	Australia	100.00%	100.00%
Oldfields Administration Pty Limited	Australia	100.00%	100.00%
Oldfields International Pty Limited	Australia	100.00%	100.00%
Advantage Contracting Pty Limited	Australia	100.00%	100.00%
Advantage Scaffolding Pty Limited	Australia	100.00%	100.00%
Shed Holdings Pty Limited	Australia	100.00%	100.00%
Advance Scaffold Solutions Pty Limited	Australia	100.00%	100.00%
NOST Investments Pty limited	Australia	100.00%	100.00%
Subsidiaries of Oldfields Pty Limited:
Midco Pty Limited	Australia	100.00%	100.00%
Subsidiaries of Oldfields Access Pty Limited:
Adelaide Scaffold Solutions Pty Limited	Australia	60.00%	60.00%
Subsidiaries of Oldfields Administration Pty
National Office Service Trust	Australia	100.00%	100.00%
Subsidiaries of NOST Investments Pty Ltd:
H & O Products Pty Limited	Australia	75.00%	75.00%
Subsidiaries of Oldfields International Pty Ltd:
Oldfields (NZ) Limited	New Zealand	100.00%	100.00%
Oldfields Paint Applications (NZ) Limited	New Zealand	100.00%	100.00%
Oldfields USA Incorporated	USA	100.00%	100.00%
Scaffold Management Systems Pty Limited	Australia	100.00%	100.00%
Subsidiaries of Shed Holdings Pty Limited:
Backyard Installations Pty Limited	Australia	100.00%	100.00%
Sheds Plus Pty Limited	Australia	100.00%	100.00%
Adelaide Garden Sheds Pty Limited	Australia	100.00%	100.00%
Subsidiaries of Advance Scaffold Solutions Pty	Limited:
Scaffold The World Pty Limited	Australia	100.00%	100.00%
Foshan Advcorp Pty Limited	China	100.00%	100.00%

• Percentage of voting power is in proportion to ownership

16

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 17 Property, Plant and Equipment

LAND AND BUILDINGS Freehold land at: — directors’ valuation (2010: 24 July 2010) — independent valuation (2010: June 2010) Total land Buildings at: — directors’ valuation (2010: 24 July 2010) — independent valuation (2010: June 2010) Total buildings Total land and buildings PLANT AND EQUIPMENT Plant and equipment: At cost Accumulated depreciation Accumulated impairment losses Leasehold improvements: At cost Accumulated amortisation Motor vehicles: At cost Accumulated depreciation Total plant and equipment Total property, plant and equipment	Consolidated Group 2011 2010 $ $ - 350,658 - 879,100
	- 1,229,758
	- 44,022 - 740,900
	- 784,922
	- 2,014,680
	13,524,740 15,835,724 (4,656,679) (4,900,906) - (975,756)
	8,868,061 9,959,062
	321,665 309,495 (175,666) (162,402)
	145,999 147,093
	2,539,179 2,529,626 (1,896,995) (1,644,072)
	642,184 885,554
	9,656,244 10,991,709
	9,656,244 13,006,389

(i) A contract for the sale of land and buildings at Archerfield in Queensland was exchanged on 19 April 2011 and was settled on 15 July 2011. Consideration from this disposal was used to reduce the overall debt of the Group.

(ii) Land and buildings at St Marys New South Wales has been classified as current assets held for sale as this property was listed for sale during the year. Refer to Note 12.

(iii) Included in the plant and equipment balance is scaffold equipment for hire held by Oldfields Access Pty Ltd and Adelaide Scaffold Solutions Pty Ltd amounting to $7,850,383.

Note 18 Investment Property

Balance at beginning of year Disposals Fair value adjustments Reclassification as assets held for sale Balance at end of year	Consolidated Group 2011 2010 $ $ 2,205,320 4,316,900 - (1,600,000) (339,792) (511,580) (1,865,528) -
	- 2,205,320

The fair value model is applied to all investment property. Investment properties are independently revalued annually. Values are based on an active liquid market value and are performed by a registered independent valuer.

17

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 19 Intangible Assets

Goodwill Cost Accumulated impaired losses Net carrying value Trademarks and licences Cost Accumulated amortisation and impairment Net carrying value Software Cost Accumulated amortisation Net carrying value Total intangibles Note 20 Trade and Other Payables CURRENT Unsecured liabilities Trade payables Sundry payables and accrued expenses Amounts payable to: — associated companies Note 21 Borrowings CURRENT Secured liabilities Bank overdrafts Bank loans Lease liabilities Hire purchase liabilities Total current borrowings NON-CURRENT Unsecured liabilities Other related parties Secured liabilities Bank loans Hire purchase liabilities Total non-current borrowings Total borrowings	Consolidated Group 2011 2010 $ $ 5,160,370 5,126,519 (4,181,376) (4,135,616)
	978,994 990,903
	237,264 237,264 (172,496) (128,027)
	64,768 109,237
	206,289 212,907 (130,062) (110,236)
	76,227 102,671
	1,119,989 1,202,811
	Consolidated Group 2011 2010 $ $ 3,073,808 4,851,996 1,936,890 1,800,929 4,575 -
	5,015,273 6,652,925
	Consolidated Group 2011 2010 $ $ 326,344 2,477,442 16,750,966 16,078,323 - 33,536 496,082 677,528
	17,573,392 19,266,829
	139,750 1,523,040 - - 224,788 701,803
	364,538 2,224,843
	17,937,930 21,491,672

All bank loans have been classified as current in the financial report in accordance with the requirements of AASB101 Presentation of Financial Statements. Under AASB101, unless the Group had an "unconditional right to defer settlement for at least twelve months after the reporting period", the borrowings must be classified as current. As the finance facility agreement was in the process of being negotiated as at 30 June 2011 and no formal offer had been received prior to the end of the year, the Group did not satisfy the AASB101 requirement. As this was also the case in the prior year, the balances as at 30 June 2010 have been reclassified. For details on the reclassification refer to note 30.

Subsequent to the above, the Group renewed the agreement with its bankers for a further 11 month period on 28 August 2011. The banks facility agreement includes normal commercial terms and conditions which are subject to such covenants as: - interest cover ratios;

• capital expenditure limits;

• debt service cover ratios; and

• the Group cannot create or acquire a new subsidiary unless that subsidiary becomes a party to the agreement.

18

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 22 Provisions

CURRENT Short-term Employee Benefits Opening balance Net of additional provisions and unused amounts reversed Amounts used Closing balance Other Opening balance Additional provisions Amounts used Closing balance NON CURRENT Long-term Employee Benefits Opening balance Net of additional provisions and unused amounts reversed Amounts used Closing balance	Consolidated Group 2011 2010 $ $ 1,073,214 969,631 570,467 659,782 (658,490) (556,199)
	985,191 1,073,214
	78,633 985,711 - 78,633 (78,633) (985,711)
	- 78,633
	Consolidated Group 2011 2010 $ $ 147,347 143,460 (42,914) 41,023 (39,180) (37,136)
	65,253 147,347

Provision for Employee Benefits

Short-term employee benefits includes annual leave and current obligations for long service leave payable within 12 months.

Other provisions related to redundancy payments on winding up of H&O Products Pty Ltd during the year.

Long-term employee benefits includes obligations for long service leave not payable within 12 months. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data.

Note 23 Issued Capital

56,043,605 fully paid ordinary shares (2010: 27,995,763) The company has authorised share capital amounting to 56,043,605 ordinary shares. (a) Ordinary Shares At the beginning of the reporting period Shares issued during the year — 21 July 2010 (2010: 6 July 2009) — 30 November 2010 (2010: 14 August 2009) — 16 November 2009 — 20 November 2009 — 23 December 2009 — 14 May 2010 At the end of the reporting period	Consolidated Group 2011 2010 $ $ 18,751,301 15,657,109
	18,751,301 15,657,109
	Consolidated Group 2011 2010 No. No. 27,995,763 14,320,868 5,067,308 1,223,451 22,980,534 200,000 - 2,263,514 - 100,000 - 5,508,646 - 4,379,284
	56,043,605 27,995,763

On 21 July 2010, the company issued 5,067,308 ordinary shares at $0.17 each to shareholders on the basis of 1 share for every 2 shares held raising $861,442.

On 30 November 2010, the company issued 22,980,534 ordinary shares at $0.10 each to shareholders on the basis of 1 share for every 1 share held raising $2,298,053.

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held.

At the shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

19

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 24 Capital and Leasing Commitments

(a) Finance Lease Commitments Payable — minimum lease payments — not later than 12 months — between 12 months and 5 years — greater than 5 years Minimum lease payments Less future finance charges Present value of minimum lease payments	Consolidated Group 2011 2010 $ $ 549,033 860,319 243,369 723,891 - -
	792,402 1,584,210 (71,531) (171,343)
	720,871 1,412,867

Included in finance lease commitments are hire purchase liabilities that are secured by a charge over the hire purchase asset.

(b) Operating Lease Commitments Payable — minimum lease payments — not later than 12 months — between 12 months and 5 years — greater than 5 years Non-cancellable operating leases contracted for but not capitalised in the financial statements	Consolidated Group 2011 2010 $ $ 1,143,839 1,095,153 1,519,438 2,010,378 - -
	2,663,277 3,105,531

The property leases are non-cancellable leases with 3-5 year terms, with rent payable monthly in advance. Contingent rental provisions within the lease agreement require that the minimum lease payments shall be increased by the lower of CPI or 3-5% per annum. Options exist to renew certain leases at the end of the lease term for an additional term of 3-5 years.

Note 25 Contingent Liabilities and Contingent Assets

The Group does not have any significant contingent liabilities or contingent assets as at 30 June 2011 or 30 June 2010.

Note 26 Operating Segments

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 in assessing performance and in determining the allocation of resources.

The Group is managed primarily on the basis of product category and service offerings since the diversification of the Group's operations inherently have notably different risk profiles and performance assessment criteria. Operating segments are therefore determined on the same basis.

Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar economic characteristics and are also similar with respect to the following:

• the products sold and/or services provided by the segment;

• the manufacturing process;

• the type or class of customer for the products or service;

• the distribution method; and

• any external regulatory requirements.

Types of products and services by segment

• (i) Wholesale/retail The wholesale/retail segment manufactures and markets paint brushes, paint rollers, painters tools, spray guns, Treco garden sheds, outdoor storage systems, aviaries and pet homes.

• (ii) Scaffolding The scaffolding segment manufactures and markets scaffolding and related equipment. In addition, this segment is engaged in hiring scaffolding and related products to the building and construction industry.

• (iii) Consumer products The consumer products segment manufactures and distributes cleaning and personal care products. This segment ceased operation during the year with the orderly wind down of H&O Products Pty Ltd in October 2010.

(iv) Property

The property segment manages investment properties held by the Group.

20

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 26 Operating Segments (continued)

(i) **(ii) **	Segment performance 30 June 2011	Scaffolding Consumer Property Corporate $ $ $ $ $ Wholesale Retail	Total $
	Continuing operations: Revenue External sales Other revenue Inter-segment sales Total group revenue Segment net profit/(loss) before tax Inter-segment elimination Net profit before tax from continuing operations Discontinued operations: External sales Other revenue Inter-segment sales Total revenue from discontinued operations 30 June 2010 Reconciliation of segment result to group net loss before tax Segment net loss before tax from discontinued operations	11,992,977 18,673,718 - - - 331,379 343,370 - 429,127 7,251,466 - - - - -	30,666,695 8,355,342 (7,576,139)
		12,324,356 19,017,088 - 429,127 7,251,466	31,445,898
		(2,526,855) (386,473) (126,071) (520,152) 2,259,489 1,745,003 - 1,025,342 - - 2,126 - 809,067 - - - - - - -	(1,300,062) (74,775)
			(1,374,837)
			2,770,345 811,193 -
		1,747,129 - 1,834,409 - -	3,581,538
		(1,340,388) - (19,915) - - Scaffolding Consumer Property Corporate $ $ $ $ $ Wholesale Retail	(1,360,303) Total $
	Continuing operations: Revenue External sales Other revenue Inter-segment sales Total group revenue Segment net profit/(loss) before tax Inter-segment elimination Net profit before tax from continuing operations Discontinued operations: External sales Other revenue Inter-segment sales Total revenue from discontinued operations Segment assets 30 June 2011 Reconciliation of segment result to group net loss before tax Segment net loss before tax from discontinued operations	11,854,347 19,839,402 - - - 303,810 1,071,410 - 550,337 5,787,933 - - - - -	31,693,749 7,713,490 (6,777,271)
		12,158,157 20,910,812 - 550,337 5,787,933	32,629,968
		(505,725) (895,552) (147,626) (784,026) (3,206,413) (5,539,342) 549,504 (4,989,838) (2,262,432) - (6,022,243) - - (8,284,675) (45,020) - (18,055) - - (63,075) -
			(4,989,838)
			(8,284,675) (63,075) -
		(2,307,452) - (6,040,298) - -	(8,347,750)
		(257,717) - (4,711,458) - - Scaffolding Consumer Property Corporate $ $ $ $ $ Wholesale Retail	(4,969,174) Total $
	Segment assets Total group assets 30 June 2010 Intersegment eliminations	16,273,454 16,351,523 - 3,911,231 17,470,508 Scaffolding Consumer Property Corporate $ $ $ $ $ Wholesale Retail	54,006,716 (27,212,727)
			26,793,989
			Total $
	Segment assets Total group assets Intersegment eliminations	20,589,617 20,244,393 5,758,698 4,369,739 19,339,487	70,301,934 (37,596,354)
			32,705,580

21

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 26 Operating Segments (continued)

(iii) Segment liabilities

Segment liabilities
	Wholesale
	Retail	Scaffolding	Consumer	Property	Corporate	Total
30 June 2011	$	$	$	$	$	$
Segment liabilities	(15,624,985)	(20,308,759)	(1,911,161)	(4,488,446)	(2,458,670)	(44,792,021)
Intersegment eliminations						20,692,570
Total group liabilities						(24,099,451)
	Wholesale
	Retail	Scaffolding	Consumer	Property	Corporate	Total
30 June 2010	$	$	$	$	$	$
Segment liabilities	(17,066,904)	(23,353,612)	(10,244,375)	(4,448,992)	(7,631,929)	(62,745,812)
Intersegment eliminations						33,204,087
Total group liabilities						(29,541,725)

(iv) Revenue by geographical region

Revenue attributable to external customers is disclosed below, based on the location of the external customer:

30 June 2011	Scaffolding Consumer Property Corporate Total $ $ Wholesale Retail
Domestic International Inter-segment elimination Total revenue 30 June 2010	10,983,620 18,279,146 - 429,127 7,251,466 36,943,359 1,340,736 737,942 - - - 2,078,678 - - - - - (7,576,139)
	12,324,356 19,017,088 - 429,127 7,251,466 31,445,898
	Scaffolding Consumer Property Corporate Total $ $ Wholesale Retail
Domestic International Inter-segment elimination Total revenue	10,656,900 19,962,084 - 550,337 5,787,933 36,957,254 1,501,257 948,728 - - - 2,449,985 - - - - - (6,777,271)
	12,158,157 20,910,812 - 550,337 5,787,933 32,629,968

Note 27 Cash Flow Information

Reconciliation of Cash Flow from Operations with Loss after Income Tax Loss after income tax Non-cash flows in loss Amortisation Depreciation and amortisation Impairment losses Net (gain)/loss on disposal of property, plant and equipment Unrealised exchange gains/losses Write back of loans to related parties Net (gain)/loss on disposal of investments Net (gain)/loss on revaluation of investment property Write back of prior year revenue accrued Write back of prior year provision for dividend Write back of prior year accrual for interest payable Unrealised (gain)/loss on investments and derivatives Net loss on remeasurement of equity investment due to business combination Share options expensed Share of associated companies net profit after income tax and dividends Increase/(decrease) in trade and term receivables Increase/(decrease) in prepayments and other current assets Increase/(decrease) in inventories (Increase)/decrease in trade payables and accruals (Increase)/decrease in income taxes payable (Increase)/decrease in deferred taxes payable (Increase)/decrease in provisions Cash flow from operations Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries

Consolidated Group 2011 2010 $ $ (3,021,043) (8,650,247) - 1,248,522 1,544,459 77,596 3,115,637 570,555 (71,415) (109,438) - (990,649) - 751,399 (82,008) 393,354 - 57,137 - 16,673 (2,710) - - 812,553 - 516,000 - 29,449 (362,335) (69,184) (1,924,102) (2,151,636) 1,417,461 135,432 (1,150,650) 1,948,220 1,625,087 1,764,805 14,420 (199,357) (26,060) (219,116) 248,750 592,032

(1,166,033) (984,376)

22

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 28 Events After the Reporting Period

On 15 July 2011, the contract for sale of the property at Archerfield QLD was settled. Consideration received in relation to this sale was used to reduce the overall debt of the Group.

On 28 August 2011, the company signed an agreement with its bankers for a finance facility for a further 11 month period.

There were no other significant events occurring after balance date.

Note 29 Reserves

• a. Asset Revaluation Reserve

The revaluation surplus records revaluations of non-current assets. Under certain circumstances dividends can be declared from this reserve.

• b. Foreign Currency Translation Reserve

• The foreign currency translation reserve records exchange differences arising on translation of a foreign controlled subsidiary.

• c. Option Reserve The option reserve records items recognised as expenses on valuation of employee share options.

• e. Cash Flow Hedge Reserve

The hedge reserve records revaluations of items designated as hedges.

Note 30 Restatement of prior year comparatives

(a) Reclassification of amounts relating to discontinued operations

The prior year comparatives have been restated to reclassify amounts relating to operations which were discontinued during the year. In addition, revenue previously disclosed as other income relating to scaffold hire has been reclassified as revenue due to the fact that it is earned in the normal course of business.

The net effect of this adjustment on each of the line items affected is as follows:

Consolidated statement of financial performance at the end of the earliest comparative period Revenue Cost of sales Gross profit Other income Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Impairment expenses Loss on remeasurement of equity investment due to business combination Loss on revaluation of investment property Finance costs Share of net profits of associates Loss before income tax Income tax benefit (expense) Loss from continuing operations Loss for the year from discontinued operations after tax Loss for the year	2010 2010 $ $ $ Reported Adjustment Restated 27,486,866 4,527,135 32,014,001 (25,907,619) 7,904,577 (18,003,042)
	1,579,247 12,431,712 14,010,959 15,119,044 (14,130,572) 988,472 (13,772,700) 1,571,287 (12,201,413) (1,053,478) 325,638 (727,840) (1,549,928) 686,220 (863,708) (2,724,755) 85,263 (2,639,492) (3,115,637) 2,739,578 (376,059) (516,000) - (516,000) (812,553) - (812,553) (1,683,629) 67,716 (1,615,913) 92,177 44,037 136,214
	(8,438,212) 3,820,879 (4,617,333) (189,043) 33,338 (155,705)
	(8,627,255) 3,854,217 (4,773,038) (22,993) (3,854,217) (3,877,210)
	(8,650,248) - (8,650,248)

(b) Correction of error in classification of borrowings

Non-current bank borrowings have been reclassified as current in the prior year due to a timing issue in relation to the renewal of the Group's finance facilities and to ensure compliance with Australian Accounting Standards. Under AASB101 Presentation of Financial Statements, unless there is an "unconditional right to defer settlement for at least twelve months after the reporting period", all borrowings must be disclosed as current in the statement of financial position. As at 30 June 2010, the Group was in the process of renegotiating the terms of its finance facility and a formal offer had not yet been received from the bank. As a result, this did not satisfy the requirements under AASB101 and the borrowings should have been classified as current in the 30 June 2010 financial report.

The net effect of this adjustment on each of the line items affected is as follows:

The net effect of this adjustment on each of the line items affected is as follows:
	2010		2010
	$	$	$
	Reported	Adjustment	Restated
Consolidated statement of financial position at the end of the earliest comparative period
Current borrowings	3,188,506	16,078,323	19,266,829
Non-current borrowings	18,303,166	(16,078,323)	2,224,843

There was no impact on balances for the financial year ended 30 June 2009 and therefore a third balance sheet is not considered necessary.

23

OLDFIELDS HOLDINGS LIMITED ABN: 92 000 307 988 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 31 Company Details

The registered office of the company is: Oldfields Holdings Limited

8 Farrow Road, Campbelltown, NSW, 2560

The principal place of business are: Oldfields Holdings Limited

8 Farrow Road, Campbelltown, NSW, 2560

24