Aeris Environmental : AEI Appendix 4E 2014

Aeris Environmental Ltd Appendix 4E Preliminary Final Report

Rule 4.3A

Name of entity

Results for announcement to the market

$A'000
Revenues from ordinary activities down 47.34% to 525 (Loss) from ordinary
activities after tax
down 5.65% to (1,068)
Net profit (loss) for the period attributable to members down 5.65% to (1,068)

Details of entities over which control has been gained or lost during the period

Not Applicable

Foreign Entities details

Not Applicable

Audit Qualification or Review details

This report is based on accounts that are in the process of being audited.

Sign here:
(Director/Company Secretary)
Date: 28 August 2014
Print name: Robert J Waring
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Appendix 4E Page 1

The financial year ended 30 June 2014 focused on effective cost management together with a number of strategic achievements and significant progress with Aeris Environmental Ltd's (Aeris or the Company) product development activities. The decline in annual revenue largely reflects the sale of the Aeris Hygiene Services cold storage business, which also resulted in a lower overall loss for the year. Aeris will be providing a full report of its activities in its Annual Report to be released by 30 September 2014.

 Negotiation (post-balance-date acquisition) of the business of Smartcool Systems Australia Pty Ltd.

 Independent validation of the SmartENERGY platform.

 Commercially-significant expansion of the AerisGuard long-life anti-microbial coatings platforms.

Several new multimillion-dollar applications were identified and validated, with strategic distribution partners in place.

 Agreement for the expansion of AerisGuard HVAC, and the cold storage business in the Philippines, Hong Kong, Singapore and China.

 Expanded distribution network for the AerisGuard range, both domestically and internationally.

 New OEM manufacturing agreements for supply in the 2014-15 financial year.

 First international distributor for the consumer mould range. Shipments to begin before the end of

December 2014.

 Impressive technical results from the Lonza collaborative development on the AerisGuard hard surfaces platform.

 Expanded enzyme cleaning opportunities in the hospitality industry, including beer and beverages.

 Collaborative agreement with an industry leader for smart polymer production.

 Improved trading position for the 2013-14 financial year.

 Drawn-down non-dilutive loan funds of $2,050,000 from the Company's Non-Executive Directors, with further undrawn facilities available.

During the 2013-14 financial year, Aeris concentrated its activities on scalable and global commercial opportunities for its proprietary 'Smart' platforms. The core of the Company's technologies continues to be energy and system efficiency, materials protection, indoor air quality and food hygiene. Of particular importance is Aeris' capability to provide an integrated range of solutions to its end customers and partners.

Since 30 June 2014, the Company has secured commercial orders for its SmartENERGY platform, and a number of high-profile customers are in negotiations with Aeris, with a view to implementing a broad cross section of the Aeris technologies across their enterprises, both in Australia and internationally.

A more detailed operational review will be set out in the Company's upcoming Annual Report.

No dividends were paid or proposed during the year.

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Aeris Environmental Ltd Appendix 4E Preliminary Final Report

Consolidated statement of profit or loss and other comprehensive income

For the year ended

30-Jun-14 30-Jun-13

$000's $000's

Revenues from operating activities 487 549
Export Market Development Grant 35 - Interest revenue 3 7
Rental income - 141

Other income - 300
525 997
Cost of goods sold (158) (194) Depreciation and amortisation expense (5) (13) Distribution expenditure (49) (55) Employee benefits expense (447) (526) Financial expenditure (94) (167) Occupancy expense (89) (299) Provision for doubtful debt expense (1) (265) Other general and Administration (367) (343) Product Registration, Patents, Trade Marks and R&D expenditure (346) (313) Sales, Marketing & Travel (93)(67)
Profit / (loss) from ordinary activities before income tax expenses (1,124) (1,245)
Income tax credit relating to ordinary activities 56 61
Loss from continuing operations after tax
(1,068) (1,184)
Profit / (loss) from discontinued operations - 52

Net loss for the period (1,068) (1,132)

Other Comprehensive Income

Items that may be reclassified subsequently to profit or loss

Foreign currency translation differences (1) (5)

Items that will not be reclassified subsequently to profit or loss - -

Total Comprehensive Loss for the period (1,069) (1,137)

Loss for the period attributable to:

Owners of Aeris Environmental Ltd (1,068) (1,132) Minority Interest - -

(1,068) (1,132)

Total comprehensive loss for the period attributable to:

Owners of Aeris Environmental Ltd (1,069) (1,137) Minority Interest - -

(1,069)(1,137)

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Aeris Environmental Ltd Appendix 4E Preliminary Final Report

Consolidated statement of financial position

CURRENT ASSETS

30-Jun-14 30-Jun-13

$000's $000's

Cash assets 162 181
Inventories 22 11
Receivables 162 98
Other 40 46

Assets classified as held for sale - - TOTAL CURRENT ASSETS 386 336

NON-CURRENT ASSETS

Plant and equipment 6 7

Intangible assets - - TOTAL NON-CURRENT ASSETS 6 7

TOTAL ASSETS 392 343

CURRENT LIABILITIES

Payables 318 562
Liabilities associated with assets held for sale - - Interest-bearing liabilities 100 100
TOTAL CURRENT LIABILITIES 418 662

NON-CURRENT LIABILITIES

Payables 28 22

Interest-bearing liabilities 2,050 700 TOTAL NON-CURRENT LIABILITIES 2,078 722

TOTAL LIABILITIES 2,496 1,384

NET ASSETS (2,104) (1,041)

EQUITY

Contributed equity 28,467 28,467
Reserves 1,162 1,157

Accumulated losses (31,733) (30,665) Minority Interest - -

TOTAL EQUITY (2,104) (1,041)

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Aeris Environmental Ltd Appendix 4E Preliminary Final Report

Consolidated statement of cash flows

CASH FLOWS FROM OPERATING ACTIVITIES

For the year ended

30-Jun-14 30-Jun-13

$000's $000's

Receipts from customers 423 809
Payment to suppliers and employees (1,796) (1,644) R&D tax offset 56 61
Export Market Development Grant 35 - Rent Received - 141
Interest received 2 7

Interest paid (84) (44) Other Income - -
Net cash used in operating activities (1,364) (670)

CASH FLOWS FROM INVESTING ACTIVITIES

Loans to other entities - - Proceeds from sale of assets - 37
Purchase of assets (4) -

Net cash provided by (used in) investing activities (4) 37

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of Convertible Notes - - Proceeds from issue of Shares - 5
Share issue expenses - - Loan borrowings 1,350 400
Finance lease payments - -

Net cash provided by (used in) financing activities 1,350 405

Net increase (decrease) in cash held (18) (228) Cash at the beginning of the financial year 181 414
Effects of exchange rate changes on cash and cash equivalents (1) (5)

Cash at the end of the financial year 162 181

Reconciliation of cash

30-Jun-14 30-Jun-13

$000's $000's

Deposits on call 6 51
Cash on hand and at bank 156 130

162 181

Notes to the consolidated financial statements

It is recommended that the Preliminary Final Report be considered together with any public announcements made by Aeris Environmental Ltd during the year ended 30 June 2014 in accordance with the continuous disclosure obligations under the ASX Listing Rules and under the Corporations Act 2001.
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Aeris Environmental Ltd Appendix 4E Preliminary Final Report

Earnings per security (EPS)

Calculation of the following in accordance with AASB 1027: Earnings per Share

30-Jun-14 30-Jun-13

Net profit/(loss) - $'000 (1,068) (1,132)
Weighted average number of ordinary shares used in the calculation of the Basic EPS
117,746,704 114,720,764
Basic EPS - loss per share (cents) (0.91) (0.99)

Financial reporting by geographical segments

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