VERBREC LIMITED — Interim / Quarterly Report 2012

Feb 20, 2012

ASX Announcement 21 February 2012

LogiCamms Builds Momentum with Strong Half Year Result Share Buy-Back Announced

Australian engineering, project delivery and asset management services provider, LogiCamms Limited , has announced a first half net profit after tax (NPAT) of $4.7m, up 11% from $4.2m in the previous corresponding period (pcp), and exceeding last financial years full year NPAT of $4.6m.

In summary against the pcp:

• Net Profit After Tax of $4.7m, up 11%

• Revenue of $56.1m, up 1%

• Staff numbers at 447, up 28%

• Interim Dividend of 3.5 cents per share, up 8%

• Increased number of strategic contract awards

• Strong FY12 earnings outlook

LogiCamms’ Managing Director, Steve Banning, said the Company is pleased with the first half year results which reflect momentum building in the Company’s performance and positioning for a strong second half.

Revenue for the interim period of $56.1m was marginally up on the revenue of $55.3m for the pcp and up 32% on revenue in the second half of financial year 2011. Revenue for the period reflects strong growth in demand for professional services with a 28% increase in personnel numbers from 350 in the pcp to 447 as at 31 December 2011.

Earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 7.6% included planned restructuring costs incurred during the period with respect to the transition of the Board and Executive leadership team, including the appointment of a new Managing Director. EBITDA in the first half of financial year 2012 was $4.3m while the full year ended 30 June 2011 was $4.8m.

Commenting further on the first half results Mr Banning said “The Company is pleased with its operational performance during the first half. This solid earnings result reflects an increase in project activity and our personnel numbers in addition to a focus on risk management activities and greater operational efficiency.”

The NPAT result also includes a significant income tax credit in relation to the previous financial year totalling $1.8m. This tax concession, which has been a consistent feature of LogiCamms’ NPAT over time, is with respect to research and development activities performed by LogiCamms as part of providing solutions to clients.

Operating cash flow was also strong during the period with cash from operating activities of $2.8m for the half year end 31 December 2011 compared to $1.0m for the pcp.

Company Details	Company Secretary	Share Registry
LogiCamms Limited ASX: LCM	Mr Paul Bowker	Computershare Investor Services
ACN 127 897 689	P +61 7 3058 7000	P 1300 557 010 (within Australia)
		P +61 3 9415 4000 (outside Australia)
Non Executive Board Directors	Investor Relations Contact	W www.investorcentre.com
Mr Peter Watson (Chairman)	Mr Matthew Adamo
Mr Peter Wall AM	Chief Financial Officer	Registered Office
Mr Damian Young	P +61 7 3058 7000	35 Outram Street
Mr Giles Everist		West Perth WA 6005
		P +61 8 6331 8888
Executive Directors		F +61 8 9481 5045
Mr Steve Banning (Managing Director)		E info@logicamms.com.au
		W www.logicamms.com.au

The Company’s Board announced an interim dividend of 3.5 cents per share, up 8% from the pcp. The record date is 7 March, with a payment date of 22 March 2012.

On Market Share Buy Back

LogiCamms also announces today that as part of its ongoing capital management strategies it is implementing an on-market share buy-back program for up to $2,000,000 of its issued capital over a period of 12 months. The timing and actual number of shares to be purchased will depend on market conditions.

LogiCamms Chairman, Mr Peter Watson said “Having regard to LogiCamms’ strong cash position the Board considers that it is appropriate to establish the buy-back program. This will provide LogiCamms the flexibility to repurchase shares, particularly in times of market or share price volatility, and will operate as an effective method to return capital to shareholders. Any buy-back of shares will be earning per share accretive.”

The company remains committed to its growth strategy and this buy-back program does not alter the company’s planned operating strategy or its capacity to pay dividends for the foreseeable future.

The buy-back period is scheduled to commence on 21 February 2012. The buy-back does not require shareholder approval.

Key Contract Awards

The number of contract awards secured during the period trending upwards. The Company is particularly encouraged by the significant growth in our asset management offering and the increase in professional services to the hydrocarbons sector, which have been key strategic objectives.

Mr Banning said, “LogiCamms continues to gain traction within its target markets which is evidenced by the award of key contracts for greenfield and brownfield projects, as well as longer term, strategic asset management services.”

Key contract awarded during the period included:

• An $8m asset management contract with Chevron for the provision of maintenance engineering and other asset management services on the Gorgon Liquefied Natural Gas (LNG) project.;

• Two engineering design contracts worth $8.3m with Rio Tinto , for the delivery of electrical and control system engineering to replace substations at port sites in Western Australia;

• A contract with ConocoPhillips for operational readiness services involving maintenance engineering, completion and project management services;

• Agreements with Origin Energy and Santos for sustaining capital works projects in Queensland;

• A contract with APA to deliver control system engineering, procurement and installation services in Western Australia;

• A contract with Oil Search for the delivery of competency assurance and training solutions; and

• Contracts with Woodside, Rio Tinto and BHP Billiton .

Company Details LogiCamms Limited ASX: LCM ACN 127 897 689

Non Executive Board Directors Mr Peter Watson (Chairman) Mr Peter Wall AM Mr Damian Young Mr Giles Everist Executive Directors Mr Steve Banning (Managing Director)

Company Secretary Share Registry Mr Paul Bowker Computershare Investor Services P +61 7 3058 7000 P 1300 557 010 (within Australia) P +61 3 9415 4000 (outside Australia) Investor Relations Contact W www.investorcentre.com Mr Matthew Adamo Chief Financial Officer Registered Office P +61 7 3058 7000 35 Outram Street West Perth WA 6005 P +61 8 6331 8888 F +61 8 9481 5045 E info@logicamms.com.au W www. logicamms .com.au

LogiCamms is also in the final stages of delivering a portfolio of multidiscipline Engineering, Procurement and Construction Management (EPCM) projects for Incitec Pivot Ltd in Queensland. LogiCamms EPCM role is in support of Incitec Pivot’s previously announced $50m expansion activities at Phosphate Hill.

“Customers are increasingly seeing value in our offering of engineering and project delivery capabilities and have confidence in our role as an EPCM contractor,” said Mr Banning.

“We are also working hard to enhance our asset management services such as operational readiness, which focus on successful start-up, operations and ongoing maintenance strategies for customers, and enable LogiCamms to build valuable longer term relationships,” he said.

Outlook & pipeline

The Company expects the key markets in which it operates to remain strong and it is confident in achieving an increase in revenue and earnings in the second half of the financial year. The pipeline of opportunities available to the Company continues to grow and the medium and long term prospects remain positive.

“The core industries, mining & minerals and hydrocarbons, in which we operate are experiencing significant growth in Australia. Through our next phase of development the Company is focused on providing local support to our customers and ensuring we maintain a deep understanding of the drivers impacting their business. We are keeping our strategy, Vision and Values firmly in sight,” said Mr Banning.

• Ends -

Further Information Mr Matthew Adamo Chief Financial Officer +61 7 3058 7000

About LogiCamms

LogiCamms operates in the mining and minerals, hydrocarbons, infrastructure and specialist industries providing multidiscipline engineering, project delivery and asset management solutions to enhance the long-term value of new and existing operational assets.

The company is headquartered in Perth, Western Australia with seven additional offices across Australia including Brisbane, Melbourne, Adelaide, Darwin, Gladstone, Mackay and Whyalla. LogiCamms’ Vision is to be a Market Leader delivering Outstanding Customer Solutions.

Company Details Company Secretary Share Registry LogiCamms Limited ASX: LCM Mr Paul Bowker Computershare Investor Services ACN 127 897 689 P +61 7 3058 7000 P 1300 557 010 (within Australia) P +61 3 9415 4000 (outside Australia) Non Executive Board Directors Investor Relations Contact W www.investorcentre.com Mr Peter Watson (Chairman) Mr Matthew Adamo Mr Peter Wall AM Chief Financial Officer Registered Office Mr Damian Young P +61 7 3058 7000 35 Outram Street Mr Giles Everist West Perth WA 6005 P +61 8 6331 8888 Executive Directors F +61 8 9481 5045 Mr Steve Banning (Managing Director) E info@logicamms.com.au W www. logicamms .com.au