Coretrack Limited ABN 80 112 379 503 Appendix 4E - Preliminary Final Report For the year ended 30 June 2011 This Preliminary Final Report includes the combined results of the Coretrack Group (“the Group”), comprising Coretrack Limited (“Coretrack” or “the Company”) and Globe Drill Pty Ltd (“Globe Drill”). 1. Reporting period The current reporting period is the year ended 30 June 2011 and the previous corresponding period is the year ended 30 June 2010. 2. Results for Announcement to the Market 30 June 2011 30 June 2010 Change $ % 2.1 Revenue from continuing Operations 826,050 214,142 611,908 286% 2.2 Loss from continuing operations after income tax expense (5,752,450) (3,290,461) (2,461,989) (75%) 2.3 Total loss attributable to members of Coretrack Limited (5, 752,450) (3,290,461) (2,461,989) (75%) 2.4 Amount per security and franked amount per security of final and interim dividends No dividends have been paid or provided for during the period. 2.5 Record date for determining entitlement to dividends N/A Appendix 4E Preliminary Final Report For personal use only
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Coretrack Limited ABN 80 112 379 503
Appendix 4E - Prel iminary Final Report For the year ended 30 June 2011
This Preliminary Final Report includes the combined results of the Coretrack Group (“the Group”), comprising Coretrack Limited (“Coretrack” or “the Company”) and Globe Drill Pty Ltd (“Globe Drill”).
1. Reporting period
The current reporting period is the year ended 30 June 2011 and the previous corresponding period is the year ended 30 June 2010.
2. Results for Announcement to the Market
30 June 2011 30 June 2010 Change
$ %
2.1 Revenue from continuing
Operations 826,050 214,142 611,908 286%
2.2 Loss from continuing operations
after income tax expense (5,752,450) (3,290,461) (2,461,989) (75%)
2.3 Total loss attributable to members of Coretrack Limited (5, 752,450) (3,290,461) (2,461,989) (75%)
2.4 Amount per security and franked
amount per security of final and interim dividends
No dividends have been paid or provided for during the
period.
2.5 Record date for determining
entitlement to dividends N/A
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2.6 Brief explanation of any of the figures
in 2.1 to 2.4 to enable the figures to be
understood.
2011 was the first full year of consolidated reporting with February 2010 being from when Globe Drill P/L was initially consolidated. Revenue consisted of $713K resulting from the trial of the GT3000, $92K from interest revenue, $12K in grant funding and $8K in other revenue. Comparatively, in 2010, revenue consisted of $95K in interest revenue, $65K grant revenue and $55K in other revenue.
3. Statement of Financial Performance
Please see attached Preliminary Final Report.
4. Statement of Financial Position Please
see attached Preliminary Final Report.
5. Statement of Cash Flows Please see
attached Preliminary Final Report.
6. Dividend Payments No dividends were paid during the year and no dividends
have been provided for.
7. Dividend Reinvestment Plan There are no dividend or
distribution reinvestment plans in operation.
8. Accumulated Loss es Please see
attached Preliminary Final Report.
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9. Net Tangible Assets per Security
30 June 2011
(cents) 30 June 2010
(cents)
Net tangible assets per security 8.7 8.8
10. Gain of Control over Entity
N/A
11. Details of Associates and Joint Venture Entities
N/A
12. Other Significant Information
With Globe Drill Pty Ltd being acquired by Coretrack Limited in the second half of 2010, comparative YOY information needs to be considered in light of 2010 results being a part year consolidation. In February 2011, both companies relocated to Bibra Lake, WA. While disruptive to operations, future synergies are expected to result. 2011 saw each company’s ventures progress to field trial with the GT3000 drilling and the Core Level Recorder System (CLRS) being utilized in a Woodside oil and gas drill operation. Both trials provided a valuable experience and a further step towards commercial operations. The signing of a contract with Whicher Ranges Pty Ltd for the GT3000 in an oil & gas environment highlights the diversity of the rig following the 1.7 metre wide hole for Woodside. A technical expert’s report on suitability of the GT3000 for the Whicher Ranges project received in July 2011 enhances the prospects of further oil & gas contracts. The final quarter of 2011 saw Globe Drill focus on configuring the GT3000 for the Oil and Gas industry and a $10M capital raise to fund required additional equipment. The CLRS trial with Woodside provided deep hole experience that has led to further development and refinement. A further in field trial is currently being planned and Coretrack is confident will see the CLRS progressed to commercial availability in 2012.
13. Foreign Entities
N/A
14. Commentary on Results for the Period
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14.1 Earnings per security and nature of
any dilution aspects
The undiluted loss per share for 30 June 2011 was 2.7 cents
per share (2010: 4.0 cents per share).
14.2 Returns to shareholders including
distributions and buy backs N/A
14.3 Significant features of operating
Performance Globe Drill’s revenue associated with the Woodside trial of the
GT3000 represented 89% to the Group total revenue.
Relocation of Globe Drill’s operations effected a reduction in
staff and rig development activities for the third quarter of
2011.
14.4 Results of segments that are
significant to an understanding of the business as a whole
Please see attached Preliminary Final Report.
14.5 Discussion of trends in Performance
N/A
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14.6 Other factors which have affected The appointment of Bernie Kelly to the position of CEO in late
the results in the period or which are August 2011 with a background in the global Oil & Gas industry likely to affect results in the future, is expected to provide in injection of valuable experience. existing including those where the effect could
not be quantified
15. Progress of Audit/Review
This report is based on accounts which are in the process of being audited.
16. Audit Outcome
At the date of lodgement of this form, the audit has not been completed. However, it is not believed that the accounts are likely to be subject to a dispute or qualification.
Attachments Forming Part of the Appendix 4E
The Draft Annual Financial Report for the year ended 30 June 2011 is provided as an attachment.
AUTHORISED BY:
Shannon Coates Company Secretary
31 August 2011
Appendix 4E
Preliminary Final Report
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Draft Annual Financial Report
Year ended 30 June 2011
CORETRACK LIMITED (ABN 80 112 379 503)
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Contents
Preliminary Consolidated Statement of Comprehensive Income .................................................................. 3
Preliminary Consolidated Statement of Financial Position ............................................................................ 4
Preliminary Statement of Changes in Equity…………………………………………………………………………………………….5,6
Preliminary Consolidated Statement of Cash Flows ...................................................................................... 7
Notes to the Preliminary Financial Report………………………………………………………………………………………………..8,9
Appendix 4E Attachment 2011 Draft Annual Financial Report
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Appendix 4E Attachment
2011 Draft Annual Financial Report
Preliminary Consolidated Statement of Comprehensive Income
For the year ended 30 June 2011
2011 2010
$ $
Continuing operations
Drilling Revenue 713,490 - Interest income 92,465 94,613 Grant income 12,403 64,524 Other income 7,692 55,005 Cost of sales (215,163) (5,005) Inventory Adjustment (335,220) - Corporate and administrative expenses (1,302,157) (319,138) Depreciation (259,992) (120,202) Employee benefits (1,990,240) (1,438,657) Finance charges (341,248) (31,678) Insurance (192,483) (13,563) Occupancy expenses (543,640) (259,283) Professional fees (510,019) (456,454) Research and development (99,234) (437,052) Workshop expenses (351,716) (94,116) Other expenses (367,825) (329,455)
Loss before income tax (5,752,450) (3,290,461) Income tax expense - -
Loss from continuing operations (5,752,450) (3,290,461) Other comprehensive income - -
Total comprehensive loss for the period (5,752,450) (3,290,461)
Loss per ordinary share (basic and diluted) (cents)
2.7 4.0
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Appendix 4E Attachment
2011 Draft Annual Financial Report
Preliminary Consolidated Statement of Financial Position
As at 30 June 2011
2011 2010
$ $
ASSETS
Current assets Cash and cash equivalents 8,822,627 2,747,817 Trade and other receivables 135,732 391,494 Prepayments 115,687 116,966 Other - 1,320
Total current assets 9,074,046 3,257,597 Non-current assets
Receivables - 101,872
Property, plant and equipment 12,752,284 9,080,139 Goodwill - 105,092 Inventory for capital projects 964,780 1,300000
Total non-current assets 12,752,284 10,587,103 TOTAL ASSETS 22,791,110 13,844,700
LIABILITIES
Current liabilities
Trade and other payables 418,661 1,804,081 Borrowings 3,513,736 202,158 Provisions 115,388 211,745
Total current liabilities 4,047,786 2,217,984 Non-current liabilities Borrowings 282,533 485,375 Provisions - 3,827
282,533 489,203
TOTAL LIABILITIES 4,330,319 2,707,187
NET ASSETS 18,460,791 11,137,513
EQUITY
Issued capital 31,063,306 18,340,863
Reserves 812,157 458,873
Accumulated losses (13,414,673) (7,662,223)
TOTAL EQUITY 18,460,790 11,137,513
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Appendix 4E Attachment
2011 Draft Annual Financial Report
Preliminary Consolidated Statement of Changes in Equity
For the year ended 30 June 2011
Year ended 30 June 2010 Ordinary shares Options
Accumulated losses
Total equity
Balance at 1 July 2009 4,673,769 386,837 (4,371,762) 688,844
Profit or loss - - (3,268,327) (3,268,327)
Issue of ordinary shares via
share placement 3,700,000 - - 3,700,000 Issue of ordinary shares on
exercise of options (including underwritten options) 4,852,453 - - 4,852,453 Issue of ordinary shares on
exercise of non-renounceable rights (including underwritten rights) 3,427,578 - - 3,427,578
Issue of ordinary shares in
settlement of share issue costs 611,498 - - 611,498
Issue of ordinary shares
related to business combination 1,612,902 - - 1,612,902
Issue of unlisted options in
settlement of share issue costs (50,000) 50,000 - -
Share issue costs (701,497) - - (701,497)
Share-based payment
transactions 214,160 6,000 - 220,160
Employee share options - 16,036 - 16,036
Balance at 30 June 2010 18,340,863 458,873 (7,640,089) 11,159,647
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Appendix 4E Attachment
2011 Draft Annual Financial Report
Preliminary Consolidated Statement of Changes in Equity
For the year ended 30 June 2011
Year ended 30 June 2011 Ordinary shares Options
Accumulated losses
Total equity
Balance at 1 July 2010 18,340,863 458,873 (7,662,223) 11,137,513
Profit or loss - - (5,752,450) (5,752,233)
Issue of ordinary shares via
share placement 12,675,013 - - 12,675,013
Issue of ordinary shares on
Notes conversion 618,032 - - 618,032
Issue of ordinary shares in
settlement of share issue costs
(245,141) 245,141 - -
Issue of ordinary shares
related to business transactions 697,500 7,825 - 705,325
Share issue costs (1,022,960) - - (1,022,960)
Employee share options
-
100,318
-
100,318
Balance at 30 June 2011 31,063,307 812,157 (13,414,673) 18,460,791
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Appendix 4E Attachment
2011 Draft Annual Financial Report
Preliminary Consolidated Statement of Cash Flows
For the year ended 30 June 2011
2011 2010
$ $
Cash flow from operating activities
Receipts from customers 782,137 30,455 Receipts from grants and awards 13,000 132,386 Payments to suppliers and employees (4,380,366) (5,209,645) Income taxes paid (402,226) Interest received 77,602 86,715 Interest paid (233,086) (47,931)
Net cash flows used in operating activities (3,740,713) (5,410,246)
Cash flows from investing activities
Payments for plant and equipment (5,233,411) (4,422,068)
Acquisition of cash in business combination - 85,087 Pre-acquisition loan to subsidiary - (70,303)
Net cash flows used in investing activities (5,233,411) (4,407,284)
Cash flows from financing activities
Proceeds from issue of ordinary shares 13,799,978 3,700,000 Proceeds from the exercise of share options - 4,363,466 Proceeds from the exercise of underwritten share options 2,675,035 488,987 Proceeds from issue of shares under entitlement issue - 1,515,472 Proceeds from issue of shares under underwritten entitlement issue - 1,912,106 Share/option issue costs (1,078,952) (90,000) Repayment of borrowings (370,372) (54,092)
Net cash flows from financing activities 15,025,689 11,835,939
6,051,566 2,018,409
Cash and cash equivalents at beginning of the financial year 2,747,817 729,408
Cash and cash equivalents at end of financial year 8,799,383 2,747,817
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Notes to the Preliminary Financial Report
For the year ended 30 June 2011
Note 1: Basis of Preparation
This preliminary final report has been prepared in accordance with ASX Listing Rule 4.3A and the disclosure requirements of ASX Appendix 4E.
Note 2: Loss from Ordinary Activities
The loss from ordinary activities includes the following item of expenditure:
2011 $
2010 $
Employee benefits expense
Wages and salaries costs (including directors fees) 1,827,561 1,213,610 Superannuation 162,679 101,439 Change in provision for employee entitlements (100,185) 107,572 Expense of share-based payments 100,318 16,036
1,990,373 1,438,657
Note 3: Notes to the Statement of Cash Flows a)
Reconciliation of cash and cash equivalents
Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items on the balance sheet as follows:
2011 2010 $ $
Cash and cash equivalents at the end of the year 8,799,383 2,831,832
Appendix 4E Attachment 2010 Draft Annual Financial Report
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Appendix 4E Attachment 2011 Draft Annual Financial Report
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b) Reconciliation of loss for the period to net cash flows from operating activities
2011
$
2010
$
Loss for the year (5,752,233) (3,290,461)
Adjustments for:
Depreciation 259,992 120,202 Loss on disposal of assets 444 5,575 Employee share options 100,318 16,036
Impairment of goodwill 105,092 22,134 Business transactions paid via share issue 705,325 50,000
Changes in assets and liabilities:
(Increase)/decrease in trade and other receivables (344,236) (284,605) (Increase)/decrease in inventories (335,220) (23,175) (Increase)/decrease in other current assets 2,599 (79,243) Increase/(decrease) in trade and other payables (non-capital) 1,385,420 (1,652,054) Increase/(decrease) in provisions 122004 107,571
Income tax paid - (402,226)
(3,740,713) (5,410,246)
Note 4: Segment results
The Group has two reportable segments:
Coretrack Limited (research, development and commercialisation of the Core Level Recorder System, and the corporate head office of the Group)
Globe Drill Pty Ltd (development and commercialisation of the GT3000)
