Delta SBD : 29-08-2014 DSB ASX Announcement Appendix 4e Preliminary Final Report Year Ended 30 June 2014

ASX Announcements
29 August 2014

ASX: DSB

Board of Directors Gordon Galt - Chairman Stephen Bizzaca - Managing

Director - CEO

Glyn Dawkins - Non Executive

Director

Geoff Garside -Executive Director

Company Secretary

Geoff Garside

To : Australian Securities Exchange
Company Announcements
Results for announcement to the market. Preliminary Final Report - Appendix 4E
RESULTS FOR YEAR ENDED 30 JUNE 2014
Please find attached the Delta SBD Limited Preliminary Final
Report (Appendix 4E) for the year ended 30 June 2014.
Yours Faithfully

Principal Contact

Stephen Bizzaca - Managing

Director - CEO

Phone: 02 4629 0300

Registered office

Suite 220, Centric

4 Hyde Parade

Campbelltown NSW 2560

Telephone: 02 4629 0300

Facsimile: 02 4629 0399

Website: www.deltasbd.com.au

Geoff Garside
Company Secretary
Page 1 of 6

Delta SBD Limited and its controlled entities
Appendix 4E - Preliminary Final Report - Y/E June 2014
1. Company details ............................................................................................................ 3
2. Results for announcement to the market ........................................................................ 3
3. Dividends ....................................................................................................................... 4
4. Review of Results .......................................................................................................... 4
5. Statement of Comprehensive Income ............................................................................ 5
6. Statement of Financial Position ...................................................................................... 5
7. Statement of Changes in Equity ..................................................................................... 5
8. Statement of Cash Flows ............................................................................................... 5
9. Notes to the financial statements ................................................................................... 5
10. Net tangible assets......................................................................................................... 5
11. Dividends ....................................................................................................................... 6
Compliance Statement .......................................................................................................... 6

Delta SBD Limited and its controlled entities
Appendix 4E - Preliminary Final Report - Y/E June 2014

The Company's net loss after tax for the twelve months ended 30 June 2014 amounted to $43.25 million (2013: $7.07 million).

Underlying loss has been presented to assist in the assessment of the relative performance of the Group. Underlying profit is non-IFRS financial information and has not been subject to audit by the Group's external auditors.
To determine underlying net profits after tax as shown in the table below, adjustments have been made including impairment of goodwill costs of $29.30 million, impairment of asset held for sale/kept for sustainable operation costs of $11.32 million, restructuring costs of $1.59 million (2013: $966,000) and valuation of options being a non-cash item which was not part of our normal course of business.

For an explanation of the figures above please refer to the Delta SBD Limited
Consolidated Annual Report 2014 and the accompanying notes.

Page 3 of 6

Delta SBD Limited and its controlled entities
Appendix 4E - Preliminary Final Report - Y/E June 2014

Significant Changes in the State of Affairs

In the opinion of the Directors, there were significant changes in the state of affairs of the Group that occurred during the financial year under review. As per previous ASX announcements, the Group has implemented an organisational restructure, disposed of the longwall fleet and achieved a substantial reduction in debt. The Group retains longwall expertise and a substantial fleet of equipment for sustainable expansion of current operations. The associated asset sales agreement enables the Company to hire any required equipment to undertake and complete "turnkey" longwall move projects. Importantly the Company enters 2015 with almost no debt and a positive cash flow.

The 2013/14 year was a very difficult year for Delta SBD (the Group) due to the market conditions experienced by companies operating in the resources sector, particularly in the coal industry. Key operating and financial highlights are listed below:

• Safety performance continues to be in the best quartile for the sector, with total recordable injury frequency rate decreasing by 29% over the past twelve months to

12.8 (1,000,000 hours basis), while our proactive safety measures remained on target with one leading initiative performed for every 9.8 hours worked;

• Significant new contracts awarded, including:

o Initial installation of longwall system at Glencore's new Ulan West mine;

o Longwall relocation assistance at Yancoal's Austar mine;

o Conveyor installations at Peabody's Wambo mine; and

o Civil work project associated with Illawarra Coal's Appin mine expansion

(Area 9) (15 month term):

• Maintained the majority of existing long-term ongoing and recurring work contracts;

• Successfully completed the company's first overseas longwall project; and

• Introduced a new national enterprise agreement.

Page 4 of 6

Delta SBD Limited and its controlled entities
Appendix 4E - Preliminary Final Report - Y/E June 2014

• Underlying NPAT decreased by 122% to ($1.78) million (2013: $8.04 million)

• Revenue decreased by 52% to $69.35 million (2013: 145.1 million)

• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA)

decreased by 88% to $2.13 million (2013: $17.980 million)

• Underlying EBITDA margin of 3.1% (2013: 12.4%)

• Disappointing balance sheet with cash, cash equivalent and non-current security deposits on hand at 2013/14 year end of -$2.28 million (2013: $7.6 million) due to increased use of finance facility

• Underlying Earnings per Share (EPS) -3.74 cents (2013: 17.82 cents)

• Directors have not declared a final dividend

• Decisive action taken to reduce costs and position company for future growth

• Company repositioned itself in response to market conditions; poised to capitalise when favourable market conditions return

For additional information on results and operations for the period please refer to the
Delta SBD Limited 2014 Annual Report.

Refer to page 34 of the Delta SBD Limited Consolidated Annual Report 2014 and the accompanying notes.

Refer to page 33 of the Delta SBD Limited Consolidated Annual Report 2014 and the accompanying notes.

Refer to page 35 of the Delta SBD Limited Consolidated Annual Report 2014 and the accompanying notes.

Refer to page 36 of the Delta SBD Limited Consolidated Annual Report 2014 and the accompanying notes.

Refer to pages 37 to 75 of the Delta SBD Limited Consolidated Annual Report 2014.

Page 5 of 6

Delta SBD Limited and its controlled entities
Appendix 4E - Preliminary Final Report - Y/E June 2014

In thousands of dollars Cents per share

Final 2013 ordinary 1.80 $837 Franked 29 September

2013

Franked dividends declared or paid during the year were franked at the tax rate of 30%.

After the 2014 balance sheet date no dividends were proposed by the Directors.

This report is based on the financial statements of Delta SBD Limited.
The financial statements have not yet been audited by KPMG and are in the process of being audited. No modification to these results is anticipated by the auditor.
Delta SBD Limited has a formally constituted Audit and Compliance Committee.
------------------------------------- Geoff Garside
Company Secretary

Page 6 of 6

distributed by