SCIDEV LTD — Annual Report 2014

Aug 28, 2014

ABN 25 001 150 849

Level 3 100 Mount Street North Sydney NSW 2060 Australia PO Box 1507 North Sydney NSW 2059 Australia

Phone: 02-9954-7888 Email: mail@intec.com.au Website: www.intec.com.au ASX code: INL

Companies Announcements Office Australian Securities Exchange

29 August 2014

Preliminary 2014 Financial Report (Appendix 4E)

Intec Ltd provides its Preliminary Final Report in accordance with Appendix 4E for the financial year ended 30 June 2014.

Yours faithfully

Intec Ltd

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Kieran Rodgers Managing Director

ABN 25 001 150 849

P.O. Box 1507 North Sydney NSW 2059 Level 3, 100 Mount Street North Sydney NSW 2060 Australia

Phone: (+61 2) 9954 7888 Email: mail@intec.com.au Website: www.intec.com.au ASX code: INL

Preliminary Final Report in accordance with Appendix 4E Financial year ended 30 June 2014

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ASX code: INL

-2Intec Ltd

RESULTS FOR ANNOUCEMENT TO THE MARKET

			Year ended	Year ended	Year ended
Particulars			30 June 2014		30 June 2013
			$		$
Revenues and other income from continuing operations	Up 20.2%	to	1,281,439	from	1,065,853
(Loss) profit for year attributable to members	Up 52.0%	to	(1,261,134)	from	(2,626,224)
			Amount per		Franked amount
Dividends			security		per security
Final dividend			Nil cents		Nil cents
Previous corresponding period			Nil cents		Nil cents
Record date for determining entitlement to dividend			Not applicable		Not applicable

Brief Explanation of any of the figures reported above

The Company and controlled entities (the Group) generated an operating loss after income tax of $1,261,134 and net cash outflows from operations of $634,610 in the year ended 30 June 2014. The operating loss included an impairment expense of $162,900, comprised of a write down in the carrying value of shares held in Bass Metals Limited. In addition, the Group incurred a depreciation and amortisation expense of $380,168, principally related to the Burnie Research Facility. At 30 June 2014 the Group had net assets of $3,051,918 and cash balances of $1,747,861.

This Appendix 4E should be read in conjunction with the Half-Year Financial Report of the Group as at 31 December 2013 and the Annual Financial Report of Intec, due to be released in September 2014, for the year ended 30 June 2014. It is also recommended that the Appendix 4E be considered together with any public announcements made by the Group since commencement of the 2013/14 financial year on 1 July 2013 in accordance with the continuous disclosure obligations arising under the Corporations Act, 2001.

Events Occurring after Balance Date

Subsequent to financial year end, the Group approved and commenced the decommissioning of the Burnie Research Facility. It is expected that the financial cost of decommissioning the Burnie Research Facility will be offset by treatment fees and the sale of plant and equipment.

No other matter or circumstance has arisen since 30 June 2014 that has significantly affected or may significantly affect the consolidated entities operations, the results of these operations, or the consolidated entities state of affairs in future financial years. .

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ASX code: INL

Intec Ltd

-3-

Consolidated Statement of Profit or Loss and other Comprehensive Income For the year ended 30 June 2014

Revenue Administration expense Burnie Research Facility expenses Depreciation and amortisation expense Engineering and other consultants expenses Employee benefits expense Finance costs Recouped security bond Impairments expense Occupancy expense Research and development expenses Treatment expense Other expenses (Loss)/Profit before income tax Income Tax Net (Loss)/Profit for the year Other comprehensive (loss)/income Income tax relating to components of other comprehensive income Other comprehensive (loss)/income for the year, net of income tax Total comprehensive (loss)/income for the year (Loss)/Profit attributable to: Owners of Intec Ltd Non-controlling interests Basic (loss)/profit per share Diluted (loss)/profit per share	Year ended 30 June 2014 30 June 2013 $ $ 1,281,439 1,065,853 (438,055) (449,071) (52,363) (71,930) (380,168) (834,180) (93,969) (83,964) (781,809) (1,120,696) (8,176) (3,177) - 121,230 (162,900) (872,977) (135,471) (227,646) - (10,133) (557,207) (120,538) (2,316) (18,995)
	(1,331,535) (2,626,224) 70,401 -
	(1,261,134) (2,626,224) - - - -
	- -
	(1,261,134) (2,626,224)
	(1,177,945) (2,567,869) (83,189) (58,355)
	(1,261,134) (2,626,224)
	Cents Cents (0.42) (0.88) (0.42) (0.88)

.

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-4Intec Ltd

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014

ASSETS Current assets Cash and cash equivalents Trade and other receivables Cash on Deposit - Environmental bonds Inventories Total current assets Non current assets Trade and other receivables Other financial assets Plant and equipment Intangible assets Total non current assets Total assets LIABILITIES Current liabilities Trade and other payables Loans and borrowings Provisions Total current liabilities Non-current liabilities Trade and other payables Loans and borrowings Deferred tax liability Total non-current liabilities Total liabilities Net assets EQUITY Contributed equity Reserves Accumulated losses Total equity attributable to equity holders of the Company Outside equity interest Total equity	Year ended 30 June 2014 30 June 2013 $ $ 1,747,861 3,402,821 189,518 100,017 - 40,000 194,520 27,509
	2,131,899 3,570,347
	- - 42,200 205,100 294,587 501,100 1,318,845 10,000
	1,655,632 716,200
	3,787,531 4,286,547
	336,867 119,294 137,593 - 112,732 124,286
	587,192 243,580
	- - 64,774 - 83,647 -
	64,774 -
	735,613 243,580
	3,051,918 4,042,968
	71,641,977 71,641,977 2,624,037 2,624,037 (71,401,953) (70,224,008)
	2,864,061 4,042,006 187,857 962
	3,051,918 4,042,968

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ASX code: INL

Intec Ltd

-5-

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014

Consolidated Balance at 1 July 2012 Comprehensive income Loss after income tax expense for the year Other comprehensive income for the year Total comprehensive income for the year Balance at 30 June 2013 Balance at 1 July 2013 Comprehensive income Loss after income tax expense for the year Other comprehensive income for the year Total comprehensive income for the year Changes in ownership interests Acquisition of subsidiary with non- controlling interest Balance at 30 June 2014	Share Capital Reserves Accumulated Losses Non Controlling Interest Total $ $ $ $ $ 71,641,977 2,624,037 (67,656,139) 59,317 6,669,192 - - (2,567,869) (58,355) (2,626,224) - - - - -
	- - (2,567,869) (58,355) (2,626,224)
	71,641,977 2,624,037 (70,224,008) 962 4,042,968
	71,641,977 2,624,037 (70,224,008) 962 4,042,968 - - (1,177,945) (83,189) (1,261,134) - - - - -
	- - (1,177,945) (83,189) (1,261,134)
	- - - 270,084 270,084
	71,641,977 2,624,037 (71,401,953) 187,857 3,051,918

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ASX code: INL

Intec Ltd

-6-

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest paid Interest received R&D tax offset received Other receipts Net cash (outflows)/inflows from operating activities Cash flows from investing activities Payments for acquisition of business Payments for plant and equipment Proceeds from security deposits refunded Proceeds from sale or disposal of property, plant & equipment Net cash (outflows)/inflows from investing activities Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Net cash inflows from financing activities Net (decrease)/(increase) in cash and cash equivalents Net cash acquired Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at end of year	Year ended 30 June 201430 June 2013 $ $ 913,875 758,165 (1,813,794) (2,282,506) (8,716) (3,535) 84,042 174,863 129,478 497,859 60,505 26,445
	(634,610) (828,709)
	1,300,100 - (83,325) - 79,539 2,821,589 138,520 10,000
	(1,165,365) 2,831,589
	183,325 - (41,494) -
	141,831 -
	(1,658,144) 2,002,880 3,184 - 3,402,821 1,399,941
	1,747,861 3,402,821

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ASX code: INL

Intec Ltd

-7-

Reconciliation of cash

Reconciliation of cash Reconciliation of cash at the end of the year (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows: Cash on hand and at bank Total cash at end of financial year Operating profit/(loss) after income tax Non cash items and non operating cash flows included in statement of comprehensive income Administration expenses Depreciation and amortisation (Recouped)/expensed environmental bond Impairments expense Sale of non-current assets Fair value movement on inventory Deferred tax liability on acquisition Changes in assets and liabilities Decrease/(increase) in receivables Decrease/(increase) in environmental bonds Decrease/(increase) in inventories Increase/(decrease) in trade creditors Increase/(decrease) in provisions Increase/(decrease) in deferred tax liability Net cash (outflows)/inflows from operating activities	Year ended 30 June 2014 30 June 2013 $ $ 1,747,861 3,402,821
	1,747,861 3,402,821
	(1,261,134) (2,626,224) 38,119 147,451 380,168 834,180 - (2,821,589) 162,900 771,777 (89,561) - 145,000 - (132,330) - 66,001 444,819 - 2,700,000 (9,650) 5,260 (14,798) (163,133) (2,973) (121,230) 83,648 - (634,610) (828,709)

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-8Intec Ltd

Control gained or loss of control over entities having material effect

Control gained over entities having material effect

Name of entity (or group of entities) Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was acquired: Date from which such profit (loss) has been calculated: Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period: Loss of control of entities having material effect Name of entity (or group of entities) Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) to the date of loss of control: Date to which such profit (loss) has been calculated: Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period: Contribution to consolidated profit (loss) from ordinary activities and extraordinary items from the sale of the interest leading to the loss of control: Dividends Date the dividend is payable Record date to determine entitlements to the dividend No final dividend has been declared Consolidated accumulated losses Accumulated losses at the beginning of the financial year Net profit (loss) attributable to members Accumulated losses at the end of the financial year

Science Developments Pty Ltd (3,978) 27 November 2013 Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable 30 June 2014 30 June 2013 $ $ (70,224,008) (67,656,139) (1,177,945) (2,567,869)

(71,401,953) (70,224,008)

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ASX code: INL

Intec Ltd

-9-

Other notes to the condensed financial statements
	30 June 2014	30 June 2013
Ratios
Profit/(loss) before tax/revenue and other income
Consolidated profit/(loss) before tax as a percentage of revenue and
other income	(103.90)%	(246.40)%
Profit/(loss) after tax/equity interests
Consolidated net profit/(loss) after tax attributable to members as a
percentage of equity (similarly attributable) at the end of the year	(41.1)%	(63.5)%
NTA Backing
Net tangible assets per ordinary share (cents per share)	0.58c	1.35c
Earnings per security (EPS)
Profit/(loss) per share from continuing operations attributable to
ordinary equity holders of the company:
Basic earnings (loss) per share (cents per share)	(0.42)	(0.88)
Diluted earnings (loss) per share (cents per share)	(0.42)	(0.88)
Profit (loss) per share
attributable to ordinary equity holders of the company:
Basic earnings (loss) per share (cents per share)	(0.42)	(0.88)
Diluted earnings (loss) per share (cents per share)	(0.42)	(0.88)
Weighted average number of ordinary shares outstanding during the
period used in calculating the basic earnings (loss) per share	299,818,669	299,818,669
Weighted average number of ordinary shares and un-exercised options
over shares outstanding during the period used in calculating the basic	303,118,669	303,118,669

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ASX code: INL

-10- Intec Ltd

NOTES TO THE FINANCIAL STATEMENTS

Note 1: Basis of Preparation

The financial report has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report has been prepared on an accruals basis and is based on historical costs except as modified by revaluation of certain non-current assets and, except where stated, does not take into account either changing money values or current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets.

Note 2: Going Concern Basis

The financial report has been prepared on a going concern basis. The Directors consider the Group has adequate funding and therefore, no adjustments have been made to the financial report that might be necessary should the Group not continue as a going concern. Accordingly, the Directors have prepared the financial report on a going concern basis.

Note 3: Accounting Policies

The Appendix 4E does not include notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and the financing and investing activities of the Group as the full financial report. The Appendix 4E should be read in conjunction with the Half-Year Financial Report of the Group as at 31 December 2013 and the Annual Financial Report of Intec, due to be released in September 2014, for the year ended 30 June 2014. It is also recommended that the Appendix 4E be considered together with any public announcements made by the Group since commencement of the 2013/14 financial year on 1 July 2013 in accordance with the continuous disclosure obligations arising under the Corporations Act, 2001.

Note 4: Business combination

On 26 November 2013, the Group acquired 50% of the issued capital of Science Developments Pty Ltd, a company that manufacturers chemicals for use in waste water treatment, for a purchase consideration of $1,300,100. The acquisition is part of the Group’s overall strategy to expand its interests in the treatment of industrial waste. The purchase was satisfied by the payment of $1,300,100.

Purchase Consideration: - Cash - Non – Controlling Interest Less: Cash Receivables (i) Inventories Property, plant and equipment Trademarks (iii) Trade Payables Deferred tax liability Identifiable assets acquired and liabilities assumed Goodwill (ii) Purchase consideration settled in cash Cash outflow on acquisition, net of cash acquired	Fair Value $ 1,300,100 270,083
	1,570,183
	3,185 231,077 302,361 117,176 296,100 (277,403) (132,330)
	540,166
	1,030,017
	1,300,100
	1,296,915

(i) The Directors believe the receivables are fully recoverable and no provision for impairment is required. (ii) The goodwill is attributed to the competitive position of Science Developments product portfolio in wastewater treatment. No amount of goodwill is deductible for tax purposes.

(iii) Trademarks valued at $296,100 are being amortised over ten years and amortisation of $17,272 has been recognised from the date of acquisition to 30 June 2014.

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ASX code: INL

-11- Intec Ltd

Note 5: Material Factors Affecting the Revenues and Expenses of the Economic Entity for the Current Year

No other matters or circumstances have arisen since 30 June 2014 that have significantly affected or may significantly affect the Group’s operations in future financial years, or the results of those operations in future financial years, or the Group’s state of affairs in future financial years.

There are no franking credits available. The Company is not expected to declare a dividend in the short term.

Compliance Statement

The financial report is based on accounts which are in the process of being audited.

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Kieran Rodgers Managing Director

29 August 2014

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