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TZ LIMITED Annual Report 2011

Aug 31, 2011

65975_rns_2011-08-31_1e3046b8-55e1-456c-9578-69dfea10fc3a.pdf

Annual Report

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TZ Limited ABN 26 073 979 272

31 August 2011

Lodged by ASX Online

The Manager Company Announcement O ffice ASX Ltd. Level 4, 20 Bridge Street Sydney, NSW 2000

Dear Sir/Madam

PRELIMINARY FINAL REPORT

Please find attached the un a udited ASX Appendix 4E - Preliminary Fin a l Report for TZ Limited for the year e nded 30 June 2011.

Yours faithfully, TZ LIMITED

==> picture [157 x 53] intentionally omitted <==

==> picture [10 x 53] intentionally omitted <==

Mark Bouris Chairman

Sydney (Registered Office)

Chicago (Operational Headquarters)

ASX: TZL

Page 1 of 3

TZ Limited Preliminary final report

APPENDIX 4E PRELIMINARY FINAL REPORT

1. Company details Name of entity: ABN: Reporting period: Previous corresponding period:

TZ Limited

26 073 979 272 Year ended 30 June 2011 Year ended 30 June 2010

2. Results for announcement to the market

Revenues from ordinary activities up 33.0% to $ 23,535,000
Loss from ordinary activities after tax attributable to the owners of TZ
Limited down 72.8% to $(7,174,000)
Loss for the period attributable to the owners of TZ Limited down 72.8% to $(7,174,000)

Dividends

There were no dividends paid or declared during the current financial period.

Comments

The loss for the consolidated entity after providing for income tax amounted to $7,174,000 (30 June 2010: $26,347,000).

See ASX announcement for further commentary.

3. NTA backing

Reporting period Previous corresponding period Net tangible asset backing per ordinary security (5.69) cents (31.31) cents

4. Control gained over entities

Name of entities (or group of entities)

TZI Australia Pty Limited

Date control gained 29 April 2011

Contribution of such entities to the reporting entity's profit/(loss) from ordinary activities during the period (where material)

$(59,186)

Profit/(loss) from ordinary activities after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period (where material) $ -

Page 2 of 3

TZ Limited Preliminary final report

5. Loss of control over entities

Name of entities (or group of entities)

Not applicable.

Date control lost

Contribution of such entities to the reporting entity's profit/(loss) from ordinary activities during the period (where material) $ - Profit/(loss) from ordinary activities after tax of the controlled entity (or group of entities) whilst controlled during the whole of the previous corresponding period (where material) $ -

6. Dividends

Current period

There were no dividends paid or declared during the current financial period.

Previous corresponding period

There were no dividends paid or declared during the previous financial period.

7. Dividend reinvestment plans

The following dividend or distribution plans are in operation:

Not applicable.

The last date(s) for receipt of election notices for the dividend or distribution plans: Not applicable.

8. Details of associates and joint venture entities

Reporting entity's Reporting entity's Contribution to profit/(loss)
percentage holding (where material)
Previous Previous
corresponding corresponding
Name of associate / joint venture Current period period Current period period
Intanova Pty Limited - Joint venture 50.00% 0.00% $(204,070) $ -
Group's aggregate share of associates and joint
venture entities' profit/(loss) (where material)
Profit(loss) from ordinary activities before income tax $(204,070) $ -
Income tax on operating activities $ - $ -

Page 3 of 3

TZ Limited Preliminary final report

9. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

10. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The accounts are currently in the process of being audited.

11. Attachments

Details of attachments (if any):

Preliminary annual report

12. Signed

Signed: ________

Date: 31 August 2011

Mark Bouris Director Sydney

TZ Limited ABN 26 073 979 272

Preliminary Annual Report - 30 June 2011

TZ Limited Statement of comprehensive income For the year ended 30 June 2011

Note
1
2
3
3
11
11
Other comprehensive income
Loss after income tax (expense)/benefit for the year attributable to the
owners of TZ Limited
Income tax (expense)/benefit
Other income
Revenue
Depreciation and amortisation expense
Travel and accommodation expense
Communications expense
Development costs
Net loss on movement in fair value of derivative liabilities
Net loss on conversion of convertible notes
Finance costs
Other expenses
Expenses
Raw materials and consumables used
Employee benefits expense
Professional and corporate services
Occupancy expense
Loss before income tax (expense)/benefit
Diluted earnings per share
Basic earnings per share
Other comprehensive income for the year, net of tax
Total comprehensive income for the year attributable to the owners of
TZ Limited
Foreign currency translation
2011
2010
$'000
$'000
23,535
17,696
6,800
1,108
(9,179)
(5,552)
(14,662)
(12,139)
(767)
(934)
(1,856)
(2,228)
(349)
(247)
(3,210)
(4,894)
(1,504)
(971)
(904)
(114)
-
(6,158)
-
(5,627)
(871)
(1,446)
(4,098)
(5,006)
(7,065)
(26,512)
(109)
165
(7,174)
(26,347)
(5,671)
(1,706)
(5,671)
(1,706)
(12,845)
(28,053)
Cents
Cents
(7.47)
(49.46)
(7.47)
(49.46)
Consolidated (unaudited)
2011
2010
$'000
$'000
23,535
17,696
6,800
1,108
(9,179)
(5,552)
(14,662)
(12,139)
(767)
(934)
(1,856)
(2,228)
(349)
(247)
(3,210)
(4,894)
(1,504)
(971)
(904)
(114)
-
(6,158)
-
(5,627)
(871)
(1,446)
(4,098)
(5,006)
(7,065)
(26,512)
(109)
165
(7,174)
(26,347)
(5,671)
(1,706)
(5,671)
(1,706)
(12,845)
(28,053)
Cents
Cents
(7.47)
(49.46)
(7.47)
(49.46)
Consolidated (unaudited)
(7,065)
(109)
(26,512)
165
(7,174)
(5,671)
(26,347)
(1,706)
(5,671) (1,706)
(12,845) (28,053)
Cents
(7.47)
(7.47)
Cents
(49.46)
(49.46)

The above statement of comprehensive income should be read in conjunction with the accompanying notes

1

TZ Limited Statement of financial position As at 30 June 2011

Note
4
5
Reserves
Property, plant and equipment
Other contributed equity
Intangibles
Total liabilities
Liabilities
Other
Total non-current assets
Current assets
Assets
Cash and cash equivalents
Other
Accumulated losses
Trade and other receivables
Inventories
Deferred tax
Total current liabilities
Current liabilities
Non-current assets
Total current assets
Investments accounted for using the equity method
Investment in short term deposit
Total equity
Total non-current liabilities
Net assets
Other
Deferred tax
Borrowings
Trade and other payables
Borrowings
Provisions
Total assets
Contributed equity
Equity
Non-current liabilities
2011
2010
$'000
$'000
1,146
232
4,823
4,881
331
167
5,500
-
63
-
11,863
5,280
172
-
1,884
1,976
19,747
24,545
751
635
22,554
27,156
34,417
32,436
4,648
5,239
729
6,665
116
87
89
-
5,582
11,991
14,617
14,213
945
829
507
533
16,069
15,575
21,651
27,566
12,766
4,870
149,113
125,907
-
4,768
(6,378)
(707)
(129,969)
(125,098)
12,766
4,870
Consolidated (unaudited)
2011
2010
$'000
$'000
1,146
232
4,823
4,881
331
167
5,500
-
63
-
11,863
5,280
172
-
1,884
1,976
19,747
24,545
751
635
22,554
27,156
34,417
32,436
4,648
5,239
729
6,665
116
87
89
-
5,582
11,991
14,617
14,213
945
829
507
533
16,069
15,575
21,651
27,566
12,766
4,870
149,113
125,907
-
4,768
(6,378)
(707)
(129,969)
(125,098)
12,766
4,870
Consolidated (unaudited)
11,863 5,280
172
1,884
19,747
751
-
1,976
24,545
635
22,554 27,156
34,417 32,436
4,648
729
116
89
5,239
6,665
87
-
5,582 11,991
14,617
945
507
14,213
829
533
16,069 15,575
21,651 27,566
12,766 4,870
149,113
-
(6,378)
(129,969)
125,907
4,768
(707)
(125,098)
12,766 4,870

The above statement of financial position should be read in conjunction with the accompanying notes

2

TZ Limited

Statement of changes in equity

For the year ended 30 June 2011

$'000
-
-
-
-
$'000
-
-
-
-
Transactions with owners in
their capacity as owners:
Balance at 30 June 2011
Conversion for equity
Contributions of equity
Less: transaction costs on
shares issued
Share-based payments
Other comprehensive income
for the year, net of tax
Loss after income tax
(expense)/benefit for the year
Total comprehensive income
for the year
Balance at 1 July 2010
Other comprehensive income
for the year, net of tax
Loss after income tax
(expense)/benefit for the year
Shares issued to extinguish
liabilities
Total comprehensive income
for the year
Contributions of equity, net of
transaction costs
Conversion of convertible
notes
Share-based payments
Balance at 30 June 2010
Consolidated (unaudited)
Contributed
Transactions with owners in
their capacity as owners:
equity
Consolidated (unaudited)
Balance at 1 July 2009
$'000
114,727
-
-
equity
Contributed
$'000
-
-
-
Other
contributed
equity
$'000
999
(1,706)
-
Reserves
Total
equity
$'000
$'000
(101,093)
14,633
-
(1,706)
(26,347)
(26,347)
(26,347)
(28,053)
-
1,100
2,342
2,342
-
10,080
-
4,768
(125,098)
4,870
Total
equity
$'000
$'000
(125,098)
4,870
-
(5,671)
(7,174)
(7,174)
(7,174)
(12,845)
2,303
2,303
-
19,043
-
(605)
-
-
(129,969)
12,766
losses
Accumulated
Accumulated
losses
Total
equity
$'000
$'000
(101,093)
14,633
-
(1,706)
(26,347)
(26,347)
(26,347)
(28,053)
-
1,100
2,342
2,342
-
10,080
-
4,768
(125,098)
4,870
Total
equity
$'000
$'000
(125,098)
4,870
-
(5,671)
(7,174)
(7,174)
(7,174)
(12,845)
2,303
2,303
-
19,043
-
(605)
-
-
(129,969)
12,766
losses
Accumulated
Accumulated
losses
-
1,100
-
10,080
-
-
-
-
-
4,768
(1,706)
-
-
-
-
(26,347)
-
2,342
-
-
(28,053)
1,100
2,342
10,080
4,768
125,907 4,768 (707) (125,098) 4,870
$'000
125,907
-
-
Contributed
equity
$'000
4,768
-
-
equity
Other
contributed
$'000
(707)
(5,671)
-
Reserves
-
-
19,043
(605)
4,768
-
-
-
-
(4,768)
(5,671)
-
-
-
-
(7,174)
2,303
-
-
-
(12,845)
2,303
19,043
(605)
-
149,113 - (6,378) (129,969) 12,766

The above statement of changes in equity should be read in conjunction with the accompanying notes

3

TZ Limited Statement of cash flows

For the year ended 30 June 2011

Note
10
5
4
Effects of exchange rate changes on cash
Proceeds from borrowings
Proceeds from convertible note issued
Income taxes refunded
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Interest received
Investment in short term deposits
Payments to suppliers and employees (inclusive of GST)
Interest and other finance costs paid
Net cash used in operating activities
Other revenue
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
Cash flows from investing activities
Net cash from financing activities
Proceeds from sale of property, plant and equipment
Transaction costs on shares issued
Payments for new joint venture capital invested
Payments for property, plant and equipment
Income taxes paid
Payments for intangibles
Repayment of borrowings
Proceeds from issue of shares
Net increase/(decrease) in cash and cash equivalents
Cash flows from financing activities
Net cash used in investing activities
2011
2010
$'000
$'000
21,303
16,465
(29,212)
(20,865)
(7,909)
(4,400)
264
63
514
-
(61)
(27)
-
12
(71)
-
(7,263)
(4,352)
(172)
-
(946)
(256)
(577)
(1,577)
(5,500)
-
8
3
(7,187)
(1,830)
14,038
50
(1,837)
-
4,596
6,441
1,026
221
(1,400)
(680)
16,423
6,032
1,973
(150)
232
566
(1,059)
(184)
1,146
232
Consolidated (unaudited)
2011
2010
$'000
$'000
21,303
16,465
(29,212)
(20,865)
(7,909)
(4,400)
264
63
514
-
(61)
(27)
-
12
(71)
-
(7,263)
(4,352)
(172)
-
(946)
(256)
(577)
(1,577)
(5,500)
-
8
3
(7,187)
(1,830)
14,038
50
(1,837)
-
4,596
6,441
1,026
221
(1,400)
(680)
16,423
6,032
1,973
(150)
232
566
(1,059)
(184)
1,146
232
Consolidated (unaudited)
(7,909)
264
514
(61)
-
(71)
(4,400)
63
-
(27)
12
-
(7,263) (4,352)
(172)
(946)
(577)
(5,500)
8
-
(256)
(1,577)
-
3
(7,187) (1,830)
14,038
(1,837)
4,596
1,026
(1,400)
50
-
6,441
221
(680)
16,423 6,032
1,973
232
(1,059)
(150)
566
(184)
1,146 232

The above statement of cash flows should be read in conjunction with the accompanying notes

4

TZ Limited Notes to the financial statements 30 June 2011

Note 1. Revenue

-
-
-
-
Royalty
Interest
Sale of goods and services
Other revenue
Revenue
Sales revenue
Other revenue
2011
2010
$'000
$'000
22,472
17,308
264
20
89
308
710
60
1,063
388
23,535
17,696
Consolidated (unaudited)
2011
2010
$'000
$'000
22,472
17,308
264
20
89
308
710
60
1,063
388
23,535
17,696
Consolidated (unaudited)
264
89
710
20
308
60
1,063 388
23,535 17,696

Note 2. Other income

-
-
-
-
-
-
Loss before income tax includes the following specific
expenses:
Other income
Net gain on movement in fair value of derivative liabilities
Leasehold improvements
Total depreciation
Other intangible assets
Motor vehicles
Net gain on disposal of property, plant and equipment
Net gain on issue of shares to extinguish liabilities
Office equipment
Total depreciation and amortisation
Depreciation
Note 3. Expenses
Amortisation
Plant and equipment
2011
2010
$'000
$'000
3
-
190
1,108
6,607
-
6,800
1,108
2011
2010
$'000
$'000
147
380
219
317
-
5
291
285
657
987
1,199
1,241
1,856
2,228
Consolidated (unaudited)
Consolidated (unaudited)
2011
2010
$'000
$'000
3
-
190
1,108
6,607
-
6,800
1,108
2011
2010
$'000
$'000
147
380
219
317
-
5
291
285
657
987
1,199
1,241
1,856
2,228
Consolidated (unaudited)
Consolidated (unaudited)
657 987
1,199 1,241
1,856 2,228

5

TZ Limited Notes to the financial statements 30 June 2011

Note 3. Expenses (continued)

-
-
Net loss on disposal
Net foreign exchange loss
Subcontractors
Direct material
Defined contribution superannuation expense
Share-based payments expense
Net loss on disposal of property, plant and equipment
Interest and finance charges paid/payable
Cost of sales
Net foreign exchange loss
Finance costs
Superannuation expense
Other cost of sales
Total cost of sales
Company overheads
Direct employment related expenses
Share-based payments expense
2011
2010
$'000
$'000
1,068
815
6,831
5,581
7,635
4,577
467
457
476
160
16,477
11,590
4,098
5,006
366
17
-
157
15
10
2,303
2,342
Consolidated (unaudited)
2011
2010
$'000
$'000
1,068
815
6,831
5,581
7,635
4,577
467
457
476
160
16,477
11,590
4,098
5,006
366
17
-
157
15
10
2,303
2,342
Consolidated (unaudited)
16,477 11,590
4,098 5,006
366 17
- 157
15 10
2,303 2,342

Note 4. Current assets - cash and cash equivalents

Note 5. Equity - contributed
Cash at bank
Ordinary shares - fully paid
2011
2010
Shares
Shares
�����������62,848,373
Consolidated (unaudited)
2011
2010
$'000
$'000
1,146
232
2011
2010
$'000
$'000
149,113
125,907
Consolidated (unaudited)
Consolidated (unaudited)

6

TZ Limited Notes to the financial statements 30 June 2011

Note 5. Equity - contributed (continued)

Movements in ordinary share capital

21 December 2010
25 November 2010
14 April 2011
Issue of shares
20 November 2010
22 July 2010
Date
Issue of shares
30 June 2011
Issue of shares
Issue of shares
Balance
Issue of shares on conversion of convertible
note
Issue of shares on conversion of convertible
note
19 July 2010
Issue of shares
Issue of shares on exercise of rights
11 October 2010
Issue of shares
1 July 2009
15 July 2010
7 January 2010
Balance
Less: difference between fair value and
issue price
26 March 2010
30 June 2010
Less: share issue costs
Issue of shares on conversion of convertible
notes
Issue of shares on conversion of convertible
note
30 June 2010
Details
24 May 2011
Balance
Issue of shares
1 July 2010
Issue of shares
No of shares
Issue price
$'000
49,479,325
114,727
1,250,000
$0.84
1,050
12,000,000
$0.84
10,080
119,048
$0.42
50
62,848,373
125,907
357,144
$0.42
150
10,000,924
$0.42
4,200
1,480,000
$0.00
-
228,836
$0.42
96
1,198,196
$1.00
1,198
8,091,446
$0.35
2,832
2,048,431
$0.39
802
28,069,319
$0.35
9,824
3,795,121
$0.35
1,328
4,613,333
$1.00
4,613
(605)
(1,232)
������������49,113
$'000
114,727
1,050
10,080
50
125,907
150
4,200
-
96
1,198
2,832
802
9,824
1,328
4,613
(605)
(1,232)

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Share buy-back

There is no current on-market share buy-back.

Note 6. Equity - dividends

There were no dividends paid or declared during the current or previous financial year.

7

TZ Limited Notes to the financial statements 30 June 2011

Note 7. Contingent assets

Litigation proceedings - Australia 2011
2010
$'000
$'000
-
14,056
Consolidated (unaudited)

A hearing was scheduled in the Supreme Court of New South Wales for 5 September 2011. The consolidated entity was seeking to recover $13,230,536 loans to and receivables from directors and related entities, plus costs to 30 June 2010 of $826,407. Settlement has been reached with the defendants during the period, and the hearing will not be proceeding at this time.

Note 8. Contingent liabilities

A Sigalla Claim

A claim was received during the 2010 financial year by the consolidated entity from former director Andrew Sigalla in the amount of A$1,160,000 plus health care and related Visa costs which Mr Sigalla claims is owing to him and ZMS Investments Pty Limited. The claim is made in respect of Mr Sigalla's resignation as an employee in June 2009. As part of a settlement deed entered with Mr Sigalla on 17 August 2011, Mr Sigalla has abandoned this claim.

Bombard Technologies Inc. claim

Product Development Technologies Inc ('PDT') had commenced recovery action against Bombard Technologies Inc (Bombard) for unpaid work owing. Bombard filed a counterclaim for damages of USD$1,300,000 claiming that PDT had failed to meet specifications required by Bombard for the development of a recreational watercraft. The counterclaim was subsequently refiled and a settlement was reached during the pre-trial mediation process. PDT settled for USD$85,000, and this expense was accrued in the consolidated statement of financial position at 31 December 2010, and paid during January 2011.

Security Deposit Claim against First National Bank of Joliet

PDT Holdings Inc ('PDTH') sued the First National Bank of Joliet for collection of its security deposit in the amount of USD$44,566, plus costs of this suit. PDTH alleged breach of contract, conversion, unjust enrichment, and the IL Interest Act. This suit came after much negotiation regarding the security deposit. During the pre-trial conference PDTH were unable to provide sufficient evidence that they had paid the real estate taxes that were the premise of the claim. A global ‘walk away’ was agreed, with both parties dismissing their claims.

Participation in joint venture – Intanova Pty Limited

Telezygology, Inc ('TZI') has an option to subscribe for a further 500,000 shares in Intanova Pty Limited at a price of $0.80 under the shareholders agreement between TZI, TZ Limited ('TZL'), Interco Pty Limited ('Interco') and Yatabi Australia Pty Limited ('Yatabi'). If TZI elects not to exercise the option this is a reversionary event under clause 19.3(v) entitling Yatabi and/or Interco to serve a Reversionary Notice on TZI. Until such time as a Reversionary Notice is served, the status quo shall continue unaltered. If a Reversionary Notice is served, and provided that such notice is not subsequently overturned in accordance with the procedures set out in clause 19.3(b) to (d), then TZI must pay $81,658 to each of Interco and Yatabi and must transfer all of its shares in Interco to Yatabi and Interco for $1.00.

8

TZ Limited Notes to the financial statements 30 June 2011

Note 9. Events occurring after the reporting date

Settlement of dispute with former director and related parties

The company entered into a deed of settlement with Andrew Sigalla and persons and entities associated with him, including ZMS Investments Pty Limited (Receivers and Managers Appointed) (In Liquidation) ('ZMS') and BZI Pty Limited ('BZI'), to settle all legal proceedings between the parties (the 'Proceedings'), the hearing for which was due to commence in the Supreme Court of New South Wales on 5 September 2011.

The deed of settlement was conditional on formal court orders being entered by the Supreme Court of New South Wales to discontinue the Proceedings on a without prejudice basis and on the removal of ASIC's freezing orders against Mr Andrew Sigalla and BZI. These conditions were satisfied on 23 August 2011.

Under the terms of the deed of settlement, the company has agreed to accept a sum of money in full and final settlement of all claims that the company was alleging against Mr Sigalla, ZMS and BZI. The company and its related corporations have released Mr Sigalla, ZMS and BZI from all claims that the company and its related corporations were alleging in the Proceedings. Mr Sigalla has also released the company and its related corporations from all claims he was alleging in the Proceedings.

It has been represented to the company that the settlement moneys to be paid to the company are to come from a third party and not from either Mr Sigalla, ZMS or BZI. The company had sought the consent of the trustee in bankruptcy to Mr Sigalla’s bankrupt estate to the terms of the deed of settlement and the trustee's agreement that the bankrupt estate will have no claim to any of the settlement moneys to be paid to the company. The company was unable to obtain that consent or agreement from the trustee in bankruptcy to Mr Sigalla's bankrupt estate.

The settlement was reached on the basis that there were no admissions of liability made by any party to the proceedings.

Exercise of Directors Rights - Tranche II

A total of 1,400,000 rights were exercised by the Directors, and 1,400,000 ordinary fully paid shares were issued in August 2011. The rights were originally issued on 7 July 2010 under the Director and Executive Equity Plan, and vested on 30 June 2011. The issue was approved by shareholders at the company's Annual General Meeting for the financial year ended 30 June 2009 that was held on 26 February 2010.

Participation in Joint Venture - Intanova Pty Limited

The company has an option to purchase 500,000 additional shares in Intanova Pty Limited. This option was exercisable between 1 February 2011 and 15 March 2011. The option was not exercised, however, the shareholders of Intanova Pty Limited have been in negotiations regarding numerous terms of the original shareholders agreement, including an extension of the option exercise period until 31 December 2011. At the date of this report the new agreement had not been finalised.

No other matter or circumstance has arisen since 30 June 2011 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

9

TZ Limited Notes to the financial statements 30 June 2011

Note 10. Reconciliation of loss after income tax to net cash used in operating activities

-
-
-
-
Change in operating assets and liabilities:
Decrease in derivative liabilities
Depreciation and amortisation
Foreign exchange differences
Net fair value loss/(gain) of derivative liability
Increase in deferred tax assets
(Increase)/decrease in inventories
Increase in other operating liabilities
Increase in deferred tax liabilities
Share-based payments
Net fair value loss on convertible notes
(Increase)/decrease in trade and other receivables
Increase in trade and other payables
Adjustments for:
Interest accrued on convertible notes
Increase/(decrease) in employee benefits
Gain on settlement of debt for equity swap
Loss after income tax (expense)/benefit for the year
Net cash used in operating activities
Decrease in prepayments
Basic earnings per share
Weighted average number of ordinary shares used in calculating diluted earnings per
share
Loss after income tax attributable to the owners of TZ Limited
Weighted average number of ordinary shares used in calculating basic earnings per
share
Note 11. Earnings per share
Diluted earnings per share
2011
2010
$'000
$'000
(7,174)
(26,347)
1,856
2,228
2,303
2,342
(480)
17
-
4,978
-
6,158
-
5,627
-
(1,108)
2,718
(1,648)
(164)
120
(116)
(227)
22
-
137
3,467
(6,599)
-
116
47
29
(6)
89
-
(7,263)
(4,352)
2011
2010
$'000
$'000
(7,174)
(26,347)
Number
Number
96,055,361
53,268,007
96,055,361
53,268,007
Cents
Cents
(7.47)
(49.46)
(7.47)
(49.46)
Consolidated (unaudited)
Consolidated (unaudited)
2011
2010
$'000
$'000
(7,174)
(26,347)
1,856
2,228
2,303
2,342
(480)
17
-
4,978
-
6,158
-
5,627
-
(1,108)
2,718
(1,648)
(164)
120
(116)
(227)
22
-
137
3,467
(6,599)
-
116
47
29
(6)
89
-
(7,263)
(4,352)
2011
2010
$'000
$'000
(7,174)
(26,347)
Number
Number
96,055,361
53,268,007
96,055,361
53,268,007
Cents
Cents
(7.47)
(49.46)
(7.47)
(49.46)
Consolidated (unaudited)
Consolidated (unaudited)
Number
96,055,361
Number
53,268,007
96,055,361 53,268,007
Cents
(7.47)
(7.47)
Cents
(49.46)
(49.46)

10