PPK GROUP LIMITED — Interim / Quarterly Report 2004

Feb 16, 2004

APPENDIX 4D

HALF YEARLY INFORMATION GIVEN TO THE ASX UNDER LISTING RULE 4.2A

PLASPAK GROUP LIMITED

ABN 65 003 964 181

HALF YEAR ENDED 31 DECEMBER 2003

The information contained in this report should be read in conjunction with the most recent annual report.

HIGHLIGHTS OF RESULTS FOR ANNOUNCEMENT TO THE MARKET

(figures are in A$000s)

REVENUES FROM ORDINARY ACTIVITIES	DOWN 13.4			% TO	38,598
OPERATING PROFIT FROM ORDINARY ACTIVITIES EXCLUDINGINDIVIDUALLY SIGNIFICANT ITEMS BEFORE INCOME TAX	UP	12.2		% TO	3,798
OPERATING PROFIT FROM ORDINARYACTIVITIES BEFORE INCOME TAX	UP.	6.3		% TO	3.598
PROFIT AFTER TAX ATTRIBUTABLE TO MEMBERS	UP.	5.0	%	TO.	2,524
RESULT EFFECTED BY THE FOLLOWING INDIVIDUALLY SIGNIFICANT ITEMS
* POST SALE COSTS FROM CLOSURE OF ADELAIDE THERMOFORMING BUSINESS					(103)
* RESTRUCTURING COSTS					(97)
					(200)
2004 FULLY FRANKED INTERIM DIVIDEND PER SHARE2003 FULLY FRANKED INTERIM DIVIDEND PER SHARE					2.75c2.5c
RECORD DATE FOR DETERMINING ENTITLEMENT TO DIVIDEND					2 April 2004

COMMENTARY ON RESULTS

Pre-tax Operating Profit from ordinary activities of $3.8 million (excluding individually significant items) represents an increase of 12.2% on the corresponding period last year.

This was despite sales revenue being down 13.4% on the prior year reflecting the elimination of sales following the disposal of the loss making Adelaide thermoforming business effected in July and August, 2003.

Also profits in the last two months were adversely affected by a sudden unexpected increase in pricing of all plastic raw materials.

In January, 2004 Plaspak completed the purchase of the former ACI plastics factory at Kirrawee. NSW. The acquisition of this purpose built factory will enable further growth of the Plaspak Closures business which has outgrown its current premises.

The existing Plaspak Closures premises at Kirrawee will either be sold or leased out depending on the economics of alternative offers.

Plaspak is continuing to pursue acquisition opportunities which offer synergies to our current businesses or which otherwise represent good value but are outside the plastics packaging market.

Based on the first half results and a favourable view of the second six months, Plaspak will increase its interim dividend from 2.5 cents to 2.75 cents per share.

Subject to the continued strength of the Australian economy, improving World economic conditions and stable plastic raw material pricing Plaspak continues to be of the view that the company will deliver an improved result for the full 2004 vear.

PLASPAK GROUP LIMITED AND CONTROLLED ENTITIES ACN 003 964 181

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

Your directors submit the financial accounts of the consolidated entity consisting of Plaspak Group Limited and its controlled entities for the half year ended 31 December, 2003.

DIRECTORS

The names of directors in office at any time during or since the financial period are:

Colin Francis Ryan Glenn Robert Molloy Raymond Michael Beath Jury Ivan Wowk David Alfred Hoff

REVIEW OF OPERATIONS

The Plaspak Group had a positive first 6 months with profit before tax and individually significant items 12.2% up on the corresponding period last year. This reflects a recovery of margins and cost savings from the rationalisation process.

If current improving Australian and world economic conditions continue we are confident Plaspak will remain on course to deliver an improved result for the 2004 year.

DIVIDENDS

The Board of Directors has resolved to pay a fully franked interim dividend of 2.75 $\ell$ per share an increase of $0.25\ell$ per share on the corresponding period in the previous year.

Barring unforseen circumstances, the profits in the second half are forecast to be sufficient to allow the Company to maintain its fully franked final dividend of $3.5¢$ per share.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of the consolidated entity during the period.

AFTER BALANCE DATE EVENTS

On 19 January 2004 Plaspak completed the purchase of the former ACI Plastics packaging factory at Kirrawee. The cost of the purchase and the subsequent renovations will be in the vicinity of $7 million. The acquisition of this purpose built factory will enable further growth of the Plaspak Closures business and its expansion into new markets. The current Plaspak Closures factory at Kirrawee will either be sold or leased out depending on the economics of alternative offers.

No other matters or circumstances have arisen since the end of the period which significantly affected the operations of the economic entity, the results of those operations or the state of affairs of the economic entity in subsequent periods.

ROUNDING OF AMOUNTS

The parent entity has applied the relief available to it in ASIC Class Order 98/100 and, accordingly, amounts in the financial statements and directors report have been rounded to the nearest thousand dollars.

COLIN RYAN DIRECTOR

Sydney, 17th February 2004

PLASPAK GROUP LIMITED

STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31 DECEMBER 2003

		CONSOLIDATED ENTITY
		31 DECEMBER	31 DECEMBER
	Note	2003	2002
		$000s	$000s
Sales Revenue		38,304	44,297
Cost of sales		(28, 207)	(33,906)
GROSS PROFIT		10,097	10,391
Interest Received		41	24
Profit on sale of assets		42	22
Foreign exchange gains		6	29
Other revenues from ordinary activities		205	209
Warehouse & Distribution expenses		(2, 174)	(2,289)
Selling Expenses		(896)	(825)
Administrative expenses		(2,732)	(3,038)
Borrowing costs		(991)	(1, 139)
PROFIT FROM ORDINARY ACTIVITIESBEFORE INCOME TAX EXPENSE	2	3,598	3,384
Income tax expense attributable to profit		(1,074)	(981)
PROFIT AFTER INCOME TAX		2,524	2,403
Outside equity interests inprofit after income tax
Net profit after income tax
attributable to members of the parent entity		2,524	2,403
Net exchange differences on translation of financial reportof foreign controlled entity		1	$12 ,$
Total revenues, expenses and valuation adjustments attributableto members of parent entity recognised directly in equity		1	12
Total changes in equity other than those resulting from transactions
with owners as owners		2,525	2,415
Basic earnings per share ( cents per share )	4	3.8	3.7
Diluted earnings per share ( cents per share )	4	3.8	3.6

The accompanying notes form part of these financial statements

PLASPAK GROUP LIMITEDSTATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2003

		CONSOLIDATED ENTITY
		31 DECEMBER	30 JUNE
	Note	2003	2003
		$000s	$000s
CURRENT ASSETS
Cash		157	35
Receivables		14,724	14,625
Inventories		10,208	12,524
Property, Plant & Equipment held for resale		4,665	6,625
Other		490	839
TOTAL CURRENT ASSETS		30,244	34,648
NON-CURRENT ASSETS
Investments		4,932	4,932
Property, plant and equipment		46,470	48,740
Deferred tax assets		990	1,408
Intangibles		2,516	2,496
Other		1,225	876
TOTAL NON-CURRENT ASSETS		56,133	58,452
TOTAL ASSETS		86,377	93,100
CURRENT LIABILITIES
Payables		8,708	10,603
Interest Bearing Liabilities		8,368	7,734
Provisions		1,131	1,483
Other		16	487
TOTAL CURRENT LIABILITIES		18,223	20,307
NON-CURRENT LIABILITIES
Interest Bearing Liabilities		19,789	25,038
Payables		269
Deferred tax liabilities		2,643	2,736
Provisions		1,340	1,790
Other		33
TOTAL NON-CURRENT LIABILITIES		24,074	29,564
TOTAL LIABILITIES		42,297	49,871
NET ASSETS		44,080	43,229
SHAREHOLDERS' EQUITY
Contributed equityReserves		38,25041	37,581
			40
Retained profits	5	5,638	5,457
Total parent entity interest		43,929	43,078
Outside equity interest in
controlled entities		151	151
TOTAL SHAREHOLDERS' EQUITY		44,080	43,229

The accompanying notes form part of these financial statements

PLASPAK GROUP LIMITED

STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2003

	CONSOLIDATED ENTITY
		31 DECEMBER	31 DECEMBER
	Note	2003	2002
		$000s	$000s
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers		43,077	46,657
Cash payments to suppliers
and employees		(35, 120)	(39,086)
Other revenue		199	151
Interest received		41	24
Income tax paid		(749)	(1, 314)
Other taxes paid		(840)	(870)
Net cash provided by operating activities		6,608	5,562
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property,
plant and equipment		3,973	43
Purchase of property,
plant and equipment		(1,047)	(153)
Other		(121)	(211)
Net cash provided by / (used in) investing activities		2,805	(321)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from shares issued		234
Proceeds from borrowings			1,842
Repayment of borrowings		(5, 773)	(5,326)
Dividends paid		(1,989)	(1,895)
Interest and costs of borrowings		(991)	(1, 139)
Net cash (used in) financing activities		(8, 519)	(6, 518)
Net increase/(decrease) in cash held		894	(1,277)
Cash at the beginning
of the financial year		(805)	(280)
Cash at the end of the financial period		89	(1, 557)

The accompanying notes form part of these financial statements

PLASPAK GROUP LIMITED NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE HALF YEAR ENDED 31 DECEMBER 2003

NOTE1 BASIS OF PREPARATION

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 1029; Interim Financial Reporting, Urgent Issues Group Consensus Views and other authorative pronouncements of the Australian Accounting Standards Board.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2003 and any public announcements made by Plaspak Group Limited and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the entities in the consolidated entity and are consistent with those applied in the 30 June 2003 annual report.

The half-year report does not include full disclosures of the type normally included in the annual financial report.

$(200)$

$\mathbb{Z}^{\mathbb{Z}}$

		31 DECEMBER	31 DECEMBER
		2003	2002
	Notes	$000s	$000s
NOTE 2
(a) PROFIT FROM ORDINARY ACTIVITIES
Profit from ordinary activities before income
tax has been determined after:
(i) Charging as expenses:
Amortisation - leased assets		572	537
- intangibles		7	18
- goodwill		85	94
Total Amortisation		664	649
Depreciation - buildings		139	137
- plant and equipment		2,127	2,533
		2,266	2,670
Interest paid		991	1,139
- employee entitlementsProvisions		350	828
- doubtful debts (trade)		59	(23)
Loss on sale of non-current assets		42
(ii) Crediting as income:
Interest received		41	24
Foreign currency translation gains		6	29
Deferred income		6	34
Property Trust income		125	69
Sundry income		74	53
Proceeds from disposal of plant and equipment		3,973	187
Profit on sale of non-current assets			22
(b) INDIVIDUALLY SIGNIFICANT ITEMS
Closure & sale of Adelaide thermoforming business		(103)
Relocation & Restructuring costs		(97)

			CONSOLIDATED ENTITY
		31 DECEMBER	31 DECEMBER
		2003	2002
	Notes	$000s	$000s
NOTE 3
DIVIDENDS
Dividends paid
Final ordinary dividend of 3.5c per share - 100% franked		2,343	2,299
(2002 3.5c per share - 100% franked)
NOTE 4
EARNINGS PER SHARE
Basic earnings per share (cents per share)		3.8	3.7
Diluted earnings per share		3.8	3.6
(a) Reconciliation of Earnings to Net Profit
Earnings used in calculating Basic EPS		2,524	2,403
Earnings used in calculating Diluted EPS		2,524	2,403
(b) Weighted average number of ordinary shares outstanding during the period
used in calculation of basic EPS		66,853,700	65,805,444
Potential ordinary shares assumed to have been issued for no consideration		220,750	407,271
Weighted average number of ordinary shares outstanding during the year
used in calculation of diluted EPS		67,074,450	66,212,715
(c) Classification of Securities
The only securities that have been classified as potential ordinary shares and
included in calculation of diluted EPS are options outstanding.
NOTE 5
RETAINED PROFITS
Retained profits at the beginning of the financial year		5,457	7,660
Net profit after income tax attributable to members of Parent entity		2,524	2,403
Available for appropriation		7,981	10,063
Dividends paid or proposed	3	(2, 343)	(2, 299)
Retained profits
at the end of the financial year		5,638	7,764

NOTE 6 SEGMENT INFORMATION

The consolidated entity operates predominantly in the plastics industry in Australasia.

NOTE7 EVENTS SUBSEQUENT TO REPORTING DATE

On 19 January 2004 Plaspak completed the purchase of the former ACI Plastics packaging factory at Kirrawee. The cost of the purchase and the subsequent renovations will be in the vicinity of $7 million. The acquisition of this purpose built factory will enable further growth of the Plaspak Closures business and its expansion into new markets. The current Plaspak Closures factory at Kirrawee will either be sold or leased out depending on the economics of alternative offers.

No other matters or circumstances have arisen since the end of the period which significantly affected the operations of the economic entity, the results of those operations or the state of affairs of the economic entity in subsequent periods.

NOTE8 CONTINGENT LIABILITIES

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

NOTE 9 DISCONTINUING OPERATIONS

As reported in the 30 June 2003 annual report, on 13 June 2003 the group announced to employees its decision to dispose of the Adelaide based thermoforming and thinwall injection moulding business of Plaspak Food Packaging Pty Ltd. The group had actively sought three sale transactions for various parts of this operation. These transactions were completed during July and August 2003. Total proceeds from the sales excluding GST were $4,536,000. Assets of the Adelaide business were written down to their net recoverable value at 30 June 2003, and hence there was no profit or loss on disposal in the current period.

In the 6 months to 31 December 2003, this Adelaide based operation incurred a pre-tax loss of $103,000 during the shut down and disposal phase. This amount has been included in Individually significant items in note 2 (b) above. It is not anticipated that there will be any further significant costs in relation to this discontinued operation.

Plaspak Group Limited and Controlled Entities Declaration of Directors For the half vear ended 31 December 2003

The Directors declare that the accompanying financial statements and notes;

• 1. Comply with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations; and,
• 1. Give a true and fair view of the financial position of the consolidated entity as at 31 December 2003 and the performance of the company and the consolidation entity for the half year ended on the date.

In the opinion of the directors there are reasonable grounds to believe that the company will be able to meet its debts as and when they become due and payable.

Signed in accordance with a resolution of the board of directors.

Collyan

Colin Francis Ryan Director

Dated this 17th February 2004

Chartered Accountants S. Advisors

Level 19: 2 Market Street Svdney NSW 2000 CPO Box 2551 Sydney NSW 2001 Tel: 461 29286 9595 Fax 461 29286 5599 ffmail: bdczyd@bdosyd.com.au www.bdo.com.au

INDEPENDENT REVIEW REPORT

To the members of Plaspak Group Limited

Scope

We have reviewed the financial report of Plaspak Group Limited for the half-vear ended 31 December 2003 comprising the Statement of Financial Performance, Statement of Financial Position, Statement of Cash Flows, accompanying notes and Directors' Declaration. The financial report includes the financial statements of the consolidated entity comprising the disclosing entity and the entities it controlled at the end of the half-year or from time to time during the half-year. The disclosing entity's directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029: Interim Financial Reporting, other mandatory professional reporting requirements in Australia and statutory requirements, so as to present a view which is consistent with our understanding of the consolidated entity's financial position, and performance as represented by the results of is operations and its cash flows, and in order for the disclosing entity to lodge the financial report with the Australian Securities & Investments Commission.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of the disclosing entity's personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit and, accordingly, we do not express an opinion.

Statement

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

(a) the Corporations Act 2001, including:

(i) giving a true and fair of the consolidated entity's financial position as at 31 December 2003 and of its performance for the half-year ended on that date; and

(ii) complying with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations 2001; and

(b) other mandatory professional reporting requirements in Australia.

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ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

Non Cash Financing and Investing Activities

$$000s$

Value of shares issued under Dividend Reinvestment Plan	354
Employee share loans for exercise of options under Plaspak Executive Incentive Scheme	81.
Addition to Plant & Equipment under finance leases and hire purchase agreements.	1.344

Earnings per security (EPS)

Details of basic and diluted EPS reported separately in accordance with paragraph 9and 18 of AASB 1027: Earnings per share are as follows:
	Half Year Ended	Half Year Ended
	31-Dec-03	31-Dec-02
Earnings used in the calculation of basis EPS	2,524,000	2,403,000
Earnings used in the calculation of diluted EPS	2,524,000	2,427,000
Weighted average number of ordinary shares outstandingduring the year used in the calculation of:
Basic EPS	66,853,700	65,361,371
Diluted EPS	67,061,710	66,751,371
Basic EPS - Cents	3.8	3.7
Diluted EPS - Cents	3.8	3.6

NTA Backing	Current period	Previous corresponding
		period
Net tangible asset backing per share	61.7cents	63.8cents

DIVIDENDS

Interim dividend resolved tobe paid	2.75 cents / share fully franked
Date dividend is payable	16 April 2004
Record date	2 April 2004
A 3% discount is offered in respect of theacquisition of shares pursuantto the Plaspak DividendReinvestment Plan
Last date for receipt ofelection notices forthe Dividend ReinvestmentPlan	2 April 2004
		Previous
	CurrentPeriod	CorrespondingPeriod
Interim Dividend	2.75 cents	$2.5$ cents

The amount of retained profits and reserves that could be distributed as fully franked dividends from franking credits that exist at 31 December 2003 is $10,025,298.

We anticipate that dividends will be fully franked for the forseeable future.

	Half Year Ended31 December2003$000s	Half Year Ended31 December2002$000s
Amount of interim dividend payable - fully franked	1,851	1,652
Both current and prior year dividends were fully franked.
ORDINARY SHARES ON ISSUE		NUMBER
Number of securities on issue at beginning of year		66,499,254
Shares issued in November 2003 under Dividend Reinvestment Plan
at issue price of $0.94 per share		376,695
Shares issued through exercise of options granted to employees under
the Plaspak Executive Incentive Schemes at an average price of $0.6959
		445,000
		67,320,949

OPTIONS

There were 2,320,000 options outstanding as at balance date.

These consisted of:

• 920,000 executive share options with exercise prices ranging from 65 cents to $1.21;
• 900,000 non-executive director options granted during the current year at an exercise price of $$1.65; and$
• 300,000 executive director options granted to the Managing Director, David Hoff, in prior years with exercise prices ranging from $0.76 to $1.86.
• 200,000 executive director options granted to the Managing Director, David Hoff, in November 2003 with an exercise price of $1.40

445,000 executive options were exercised during the period at an average exercise price of $0.67.