RAIDEN RESOURCES LIMITED — Annual Report 2003

Sep 11, 2003

Rules 4.3A

Appendix 4E

Preliminary final report

Name of entity

$\overline{\phantom{a}}$

MEDICAL MOMITORS LIMITED financial year ended ('current period') $ABN$ or equivalent company Preliminary

reference

68 009 161 522

final $(tick)$ $\mathbf{V}$

30 JUNE 2003

For announcement to the market

	SA'000
Revenues from ordinary activities	up	164 %	tο	921
Profit (loss) from ordinary activities after tax attributableto members	down	18%	ŧσ	(3,052)
Profit (loss) from extraordinary items after taxattributable to members)	gain (loss)
Net profit (loss) for the period attributable to members	down	18%	tο	(3,052)
Dividends (distributions)	Amount per securityFranked amount per		security
Final dividend	Nil $\varepsilon$		Nil ¢
Previous corresponding period	Nil é		Nil ¢.
+ Record date for determining entitlements to thedividend (in the case of a trust, distribution)		N/A

There are no dividend reinvestment plans in operation. No dividend have been declared or paid during the current or previous financial year.

Consolidated statement of financial performance

Revenue and expenses from ordinary activities	Current period -Previous corresponding
	$A'000	period - $A'000
Revenue from sales or services	591	297
Revenue from sale of mining interests	236
Interest revenue	6	52
Other revenue:
Government Grants	88
Total revenues from ordinary activities	921	349
Details of relevant expenses:
Cost of sales	(419)	(97)
Cost of mining interests sold	(236)
Corporate / office	(324)	(335)
Staff cost	(501)	(947)
Communication	(90)	(58)
Audit/Legal	(174)	(168)
Consulting Fees	(351)	(382)
Marketing	(317)	(692)
Other expenses	(85)	(233)
Depreciation and amortisation	(1, 316)	(1, 153)
Total expenses from ordinary activities	(3, 813)	(4,065)
Borrowing costs	(160)	(25)
Share of net profits (losses) of associates and joint
venture entities
Profit (loss) from ordinary activities before tax	(3,052)	(3,741)
Income tax on ordinary activities
Profit (loss) from ordinary activities after tax	(3,052)	(3,741)
Profit (loss) from extraordinary items after tax

Net profit (loss)Net profit (loss) attributable to outside $+$ equityinterests	(3,052)$\bullet$	(3,741)
Net profit (loss) for the period at tributable tomembers	(3,052)	(3,74

There have been no non-owner transaction changes in equity during the current or previous financial year

Earnings per security (EPS)	Current period	Previous correspondingperiod
Basic EPS	$(1.8)$ cents	$(2.7)$ cents
Diluted EPS	$(1.8)$ cents	$(2.7)$ cents

Management discussion

During the past year, the Company has completed a number of strategic sales with major international pharmaceutical companies, for its unique range of home based monitoring products and services. The monitoring products use a standard telephone to transfer recorded data to a central receiving centre, without the need for cables or modems. This easy to use process allows for a very high level of data analysis and reporting, particularly for large scale pharmaceutical trials and post – marketing product assessment.

The Company has also recently announced the appointment of Prof. Bryan Williams in the UK as medical advisor to Medical Monitors Limited, as it continues to pursue its European expansion. Prof Williams is a distinguished international medical expert on blood pressure management, is the current President of the British Hypertension Society and a member of the European Society for Hypertension, and is involved in research on a number of levels with the international pharmaceutical industry. Prof. Williams' appointment is another indication of the recognition that the Company is receiving from the international medical community, particularly for its BPfoneTM blood pressure monitoring system.

Equally important, has been the US Federal Drug Administration (FDA) approval to market and sell Medical Monitors' PER cardiac monitor into the large USA cardiac diagnostic and monitoring market. This has provided the Company with yet another significant business opportunity; and, it is anticipated that the establishment of a cardiac monitoring service in the USA will be undertaken in early 2004.

Revenues and Expenses

Revenue from ordinary activities is up by 164%, and losses down by 18%, when compared to the previous year. As announced to the market, a number of large scale projects, with top tier pharmaceutical companies in the UK and USA, are expected to provide for ongoing and significant sales revenue in FY 2003/2004.

Operating expenses have been markedly reduced in the USA in relocating the wholly owned subsidiary Wellness Monitoring to San Jose, and with the consolidation of staffing levels, wages and general expenses. Other centres, such as the Telesalute project in Italy, have utilised beal infrastructure arrangements to reduce costs. This process has provided for a significant revenue benefit in the Company's operating cash flow.

The Australian operation continues to grow with several pharmaceutical companies currently running pilot programs, which are expected to convert to sales within this financial year. In addition, a number of leading universities and hospitals in the Australian community, and in the USA, are using the BPfoneTM in clinical trials for blood pressure management.

Manufacturing agreement of BPfoneTM with European leader Bosch+Sohn

Medical Monitors has maintained its good working relationship with Bosch+Sohn (Boso), a leading European blood pressure instrumentation manufacturer and distributor, to produce the BPfoneTM monitors in commercial quantities for the global market.

The Boso brand enjoys a very high level of recognition for its competence in blood pressure instrumentation. It is anticipated that Boso will provide monitoring services in Germany, Switzerland and Austria and a distribution channel for the BPfone™ monitor to the rest of Europe.

Sale of mining tenements

As previously stated, the remaining mining tenements are in the process of being sold, with final settlement expected by November 2003.

Shareholder Share Placement Scheme and Private Placement Activities

The successful completion of the Shareholder Share Placement Scheme, in September, and a private placement following approval at the AGM in November, 2002, provided the Company with funds of $879,000.

As well, last year the Company signaled the need for additional working capital for investment in BPfone production and infrastructure, in particular, and to support the successful international roll out of product and services across a number of markets. As a subsequent event, the Company completed a capital raising of more than $1.3 million, as at 29 August 2003, to fund those working capital and infrastructure requirements.

Importantly, these transactions confirm shareholder and stock market support for the Company's current and future anticipated activities; and provide ongoing support for the opportunities that have been created by the Company's unique products and services in Australia and overseas.

	Current period -$A'000	Previouscorresponding period -
		$A'000
Profit (loss) from ordinary activities after tax	(3,052)	(3,741)
Less (plus) outside $+$ equity interests	w
Profit (loss) from ordinary activities after	(3,052)	(3,741)
tax, attributable to members

Profit (loss) from ordinary activities attributable to members

There are no material interests held in entities which are not controlled entities

Medical Monitors Limited has a 50% interest in Care Medical Limited, a company incorporated in the UK. Care Medical has not traded from the date of its incorporation to 30 June, 2003.

$\blacksquare$

Consolidated retained profits

	Current period -	Previous corresponding
	SA'000	period - $A'000
Retained profits (accumulated losses) at the	(20,358)	(16,617)
beginning of the financial period
Net profit (loss) attributable to members	(3,052)	(3,741)
Net transfers from (to) reserves
Net effect of changes in accounting policies
Dividends and other equity distributions paid
or payable
Retained profits (accumulated losses) at end	(23, 410)	$(20,!358)$
of financial period

h

Consolidated statement of financial position	At end of currentperiod $A'000	As shown in previouscorresponding period$A'000
Current assets
Cash	89	188
Receivables	151	46
Investments
Inventories	438	505
Tax assets
Other (provide details if material)	417	40
Total current assets	1,095	779
Non-current assets
Receivables
Investments (equity accounted)
Other investments
Inventories
Mining Interests	5	241
Other property, plant and equipment (net)	469	485
Intangibles (net)	7,366	8,220
Tax assets
Other	154	72
Total non-current assets	7,994	9,018
Total assets	9,089	9,797
Current liabilities
Payables	1,138	704
Interest bearing liabilities	987	170
Tax liabilities
Provisions exc. tax liabilities	24	5
Other	w
Total current liabilities	2,149	879

Non-current liabilities	end of currentAtperiod $A'000	As shown in previouscorresponding periodSA'000
Payables
Interest bearing liabilities	771	566
Tax liabilities	w
Provisions exc. tax liabilities	m
Other	w
Total non-current liabilities	771	566
Total Liabilities	2,920	1,445
Net Assets	6,169	8,352

Equity
Capital/contributed equity	29,086	28,217
Reserves	493	493
Retained profits (accumulated losses)	(23, 410)	(20,358)
Equity attributable to members of the parententityOutside + equity interests in controlled entities	6,169$\ddot{}$	8,352
Total equity	6,169	8,352
Preference capital	NIL	NIL

Consolidated statement of cash flows

	Current period	Previous
Cash flows related to operating activities	$A'000	corresponding period$-$ $A $*$ 000
Receipts from customers	625	297
Payments to suppliers and employees	(2,457)	(3,294)
Dividends received from associates
Other dividends received
Interest and other items of similar naturereceived	6	52
Interest and other costs of finance paid	(93)	(25)
Income taxes paid
Other (provide details if material)
Net operating cash flows	(1,919)	(2,970)
Cash flows related to investing activities
Payment for purchases of property, plant and	(141)	(58)
equipment
Proceeds from sale of mining interests	236	309
Payment for Security Deposits	(154)	(72)
Proceeds from Government Grants	407
Loans (from) / to other entities	(412)
Loans repaid to other entities	72	(44)
Other-R&D	(296)	(776)
Net investing cash flows	(288)	(641)
Cash flows related to financing activities
Proceeds from issues of + securities (shares,	869	3,690
options, etc.)
Proceeds from borrowings	1,111	211
Repayment of borrowings	(144)
Dividends paid
Other (provide details if material)	272	(52)
Net financing cash flows	2,108	3,849

Net increase (decrease) in cash held	(99)	238
Cash at beginning of period	188	(50)
(see Reconciliation of cash)
Exchange rate adjustments	÷
Cash at end of period(see Reconciliation of cash)	89	188

Non-cash financing and investing activities

N.

Reconciliation of cash

Reconciliation of cash at the end of the period (as	Current period $A'000	Previous
shown in the consolidated statement of cash flows) to		corresponding
the related items in the accounts is as follows.		$period - $A'000$
Cash on hand and at bank	89	188
Deposits at call
Bank overdraft
Other (provide details)
Total cash at end of period	89	188

Earnings per security (EPS)

Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share has been calculated as follows: Weighted average of 164,754,560 fully paid ordinary shares over 365 days to 30 June 2003.

NTA backing	Current period	Previous correspondingperiod
Net tangible asset backing per ordinarysecurity	$(0.7)$ cents	$0.08$ cents

Control gained over entities having material effect

Name of entity (or group of entities)

$N/A$

Loss of control of entities having material effect

Name of entity (or group of entities)

$N/A$

Details of aggregate share of profits (losses) of associates and joint venture entities

Medical Monitors Limited has a 50% interest in Care Medical Limited, a company incorporated in the UK. Care Medical has not traded from the date of its incorporation to 30 June, 2003.

Issued and quoted securities at end of current period

(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

Category of + securities	Total number	Number quoted	Issue price /security(cents)	Amountpaid up /security(cents)
Preference + securities	Nil
+ Ordinary securities	172,354,343	118,041,556	$3.5 - 20$
Changes during current period(a) Increases through issues(b) Decreases through returnsof capital, buybacks	24,314,160Nil	24,314,160	$3.5 - 7.5$
+ Convertible debt securities(description and conversionfactor)	Nil
Options (description andconversion factor)	79,430,713	60,561,113	Exerciseprice20 cents	ExpirydateJune30,
	22,795,787	22,795,787	80 cents	2005June30,2003
Issued during current period	Nil
Exercised during currentperiod	Nìl
Expired during current period	22,795,787		80 cents	30,June2003

Additional notes to Appendix 4E

1 Subsequent Events

The Company received $44,107 in July, 2003, from US based Biovail Pharmaceuticals, as an initial payment for an evaluation trial to be undertaken in the USA - as announced to the ASX.

A private placement has been finalised as at 29 August, 2003, under Listing Rule 7.1, totalling $1,325,000 for fully paid ordinary shares issued at $0.08 per share. The corresponding shares will be issued accordingly.

$\overline{2}$ Basis of accounts preparation

a) Basis of preparation of the preliminary report

The preliminary final report has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and Urgent Issues Group consensus views. It has been prepared on the basis of historical costs and except where stated, does not take into account changing money values or current valuations of non-current assets.

These accounting policies have been consistently applied by each entity in the economic entity and, except where there is a change in accounting policy, are consistent with those applied in the 30 June 2002 Annual Financial Report.

This preliminary final report does not include full note disclosures of the type normally included in an annual financial report.

b) Going concern

The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The consolidated entity incurred an operating loss of $3.052 million during the year ended 30 June 2003, which included depreciation and amortisation charges of $1.316 million, and had a deficiency of net current assets of $1.054 million. The operating loss represents a significant reduction of 18% on the previous year's $3.741 million.

The Directors nevertheless believe that it is appropriate to prepare the financial statements on a going concern basis for the following reasons:

• The Company has completed initial sales with major pharmaceutical companies during 2003. The Directors are confident that further major sales will be achieved as contemplated in the business plan.
• The Company believes it has sufficient working capital arrangements in place to be able to achieve the objectives as contemplated in the business plan.
• The Company has raised further share capital subsequent to year end, as advised to the Australian Stock Exchange (ASX) on 29 August 2003.

The consolidated entity's ability to generate positive net cash flow in the twelve months from the date of this report, as contemplated in the business plan, is dependent on a number of factors but primarily on its ability to successfully develop both the US and UK / European markets and the continued supply of monitoring devices from the manufacturer on a timely basis.

If the Company is unable to successfully develop the business as contemplated in the business plan, alternative strategies may be employed to either raise additional capital or debt funding, or reduce expenditure through a scale back of the international marketing initiatives.

In the event that the Company does not meet its planned revenue and cashflow targets, or successfully adopts alternative strategies in the period to October 2004, the Company may not be able to realise its assets and extinguish its liabilities in the normal course of business at the amounts stated in the financial report. Accordingly, the going concern basis used in the preparation of the financial report would not be appropriate.

Segment reporting $\overline{3}$

Primary Segment Reporting: Business Segment		Consolidated
Segment Revenue:	2003	2002
	$	S
Medical Monitoring and Diagnostic Services	679,370	296,587
Mining Exploration	236,075
Total Segment Revenue	915,445	296,587
Unallocated Revenue	5,803	52.376
Total Revenue (There are no inter-segment revenues)	921,248	348,963

Segment Result:

Medical Monitoring Diagnostic Services	(3,042,203)	(3,658,115)
Mining Exploration	(10,000)	(82,890)
Segment result	(3,052,203)	(3,741,005)
Unallocated corporate expenses
Loss from ordinary activities before income tax	(3,052,203)	(3,741,005)
Income tax benefit
Net loss	(3,052,203)	(3,741,005)
Depreciation and amortisation of fixed assets-MedicalMonitoring and Diagnostic Services	156,760	133,444
Depreciation and amortisation of fixed assets-MiningExploration
Amortisation of intangibles-Medical Monitoring andDiagnostic Services	1,158,699	1,119,892

Segment Assets:	2003	2002
Medical Monitoring Diagnostic Services	9,084,013	9,556,814
Mining Exploration	5,000	240,750
Total Assets	9,089,013	9,797,564
Segment Liabilities:
Medical Monitoring Diagnostic Services	2,919,708	1,445,057
Mining Exploration
Unallocated corporate liabilities
Total Liabilities	2,919,708	1,445,057
Secondary Segment Reporting: Geographical
Segment Revenue:
Australia	724,905	292,945
Italy	18,181
USA		3,642
UK	178,162
Total Revenue	921,248	296,587
Segmented Assets by Location of Assets
Australia	9,075,586	9,783,968
USA	13,427	13,596
Total Assets	9,089,013	9,797,564

Annual meeting

The annual meeting of Medical Monitors Limited will be held as follows:

Place	Sydney
Date	November, 2003
Time	10:00 AM
Approximate date the + annual reportwill be available	20 October, 2003

Compliance statement

• This report has been prepared in accordance with AASB Standards, other AASB $\mathbf{1}$ authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX.
• $\overline{2}$ This report, and the accounts upon which the report is based (if separate), use the same accounting policies.
• $\overline{3}$ This report does give a true and fair view of the matters disclosed.
• $\overline{4}$ This report is based on accounts which are in the process of being audited.
• $\ddot{5}$ The entity has a formally constituted audit committee.

Sign here:

Print name:

Director Dr Allan Shell

12 September 2003 Date: