SUPPLY NETWORK LIMITED

ABN 12 003 135 680

141 - 151 Fairfield Road Guildford NSW 2161

PO Box 460 Fairfield NSW 2165

Telephone: 61 2 9892 3888 Fax: 61 2 9892 2399

29 January 2014
The Manager
Companies Announcement Office
ASX Limited
20 Bridge Street

SYDNEY NSW 2000

Dear Sir

Re: Earnings forecast half year December 2013, full year guidance and dividend announcement

The Directors are pleased to advise that based on unaudited management accounts for the half-year to 31 December
2013 consolidated sales revenue was $40.4m, which is an increase of 23.4% on the corresponding period last year. Earnings before interest and tax (EBIT) for the half-year is expected to be around $4.3m.
Profit after income tax is expected to be around $2.7m.
Final half-year results will be released to the market in late February 2014.
Our strong performance for the first half is the result of continuing sales growth and ongoing cost management.
In the second half of the financial year we plan to open two new branches in regional areas and relocate our Brisbane branch to a larger facility with improved customer access. These new projects will increase Group operating costs without materially adding to revenue in the second half of this financial year. In addition, as a consequence of the recent significant depreciation of the Australian dollar, we are experiencing increasing product costs and over the next 6-12 months this will put downward pressure on our gross margins and our cashflows from operations.
After considering these circumstances, the Directors are pleased to update their full year forecast to revenue in the region of $80m and EBIT in the region of $8.0m.
Directors have declared a fully franked interim dividend of 4.0 cents per share, an increase of 0.5 cents per share on last year's interim dividend, with a record date of 2 April 2014 and to be paid on 16 April 2014.
The Director's advise that the Supply Network Limited Dividend Reinvestment Plan will not operate in respect of the interim dividend

Yours faithfully

Peter Gill

Company Secretary

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