30 August 2017

ASX Limited Exchange Centre 20 Bridge Street

SYDNEY NSW 2000

Dear Sir / Madam

APPENDIX 4E FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2017

Tox Free Solutions Limited (Toxfree) is pleased to present an Appendix 4E containing details of Toxfree's audited financial results for the year ended 30 June 2017.

Yours faithfully

TOX FREE SOLUTIONS LIMITED DAVID MCARTHUR

Company Secretary

TOX FREE SOLUTIONS LIMITED |FULL YEAR REPORT |30 JUNE 2017

APPENDIX 4E - FINAL REPORT Results for announcement to the market (1) For the year ended 30 June 2017 Previous corresponding period: year ended 30 June 2016

$'000

Total Revenue from ordinary activities

up

26%

to

496,115

Profit from ordinary activities after tax for the year

down

5%

to

12,387

Profit for the year attributable to members

down

2%

to

12,376

Total comprehensive income for the year attributable to members

up

2%

to

13,032

Dividends

It is proposed to pay a fully franked final 2017 dividend of 5 cents per share on 6thOctober 2017, with a record date of 14thSeptember 2017.

30 June 2017 cents

30 June 2016 Cents

Net tangible assets per security

17.13

66.84

30 June 2017 cents

30 June 2016 Cents

Basic Earnings per share

7.10

9.23

Diluted earnings per share

7.07

9.22

Entities over which control has been gained or lost during the period:

Active Industrial Solutions Pty Ltd: 1 August 2016; control gained.

Daniels Health Pty Ltd and Daniels Manufacturing Australia Pty Ltd: 1 December 2016; control gained.

Audit status: (1) This report is based on audited accounts.

An explanation of the results is included in the 2017 Annual Report.

Results for Financial Year 2017
  • Revenue up 26% to $496.1M
  • Underlying EBITDA up 14% to $82.8M*
  • Underlying net profit after tax pre‐amortisation up 14% to $28.6M*
  • Underlying net profit after tax up 4% to $24.1M*
  • Statutory net profit after tax pre‐amortisation up 12% to $16.8M
  • Strong cash conversion - 91% of EBITDA*
  • Full year dividend increased by 6% to 9.5 cents per share

The Directors of Tox Free Solutions Ltd ("Toxfree", the "Company" or "Group") (ASX: TOX) are pleased to announce the Company's financial results and achievements for the year ended 30 June 2017.

The key highlights of the financial year were:

Safety

  • Reduction in Total Recordable Injury Frequency Rate (TRIFR) of 70% since 2013

  • Group TRIFR of 6.7

  • Leading safety indicators continue to strengthen

  • Implemented Toxfree's safety systems into the Worth business and commenced integration of Daniels.

  • Strong indigenous commitment to our reconciliation action plan with further development of our indigenous joint venture businesses in the Pilbara employing 32% indigenous workforce

  • Winner of the Diversity and Inclusion Award in the Australian Human Resources Award 2016

Financial

Group results

Statutory IFRS result 2017

$'000

Exclusion Adjustments

$,000

Underlying Non IFRS

result FY17

$'000

Underlying Non IFRS

result FY16

$'000

% Change from FY16

Revenue ‐ Services

496,115

‐

496,115

393,380

26%

EBITDA

68,734

14,069*

82,803

72,875

14%

Amortisation

(4,438)

‐

(4,438)

(1,914)

132%

Depreciation

(36,878)

‐

(36,878)

(31,594)

17%

EBIT

27,418

14,069*

41,487

39,367

5%

Finance expenses

(7,246)

‐

(7,246)

(6,154)

18%

Profit before tax

20,172

14,069*

34,241

33,213

3%

Income tax expense

(7,785)

(2,322)*

(10,107)

(9,957)

2%

Profit after tax pre‐amortisation

16,825

11,747*

28,572

25,170

14%

Profit after tax

12,387

11,747*

24,134

23,256

4%

Group results (cont.)

Statutory IFRS result 2017

$'000

Exclusion Adjustments

$,000

Underlying Non IFRS

result FY17

$'000

Underlying Non IFRS

result FY16

$'000

% Change from FY16

Profit attributable to Toxfree Owners

12,376

‐

12,376

12,608

(2)%

Non‐controlling interest in profit

11

‐

11

446

(98)%

Earnings per share (cents) ordinary holders

7.1

6.7*

13.8

16.7

(17)%

Shares on issue at reporting date ('000)

194,100

‐

194,100

143,920

35%

Weighted average number of shares ('000)

174,415

‐

174,415

136,573

28%

Dividend (cents per share)

9.5

‐

9.5

9.0

6%

Gross cash conversion as a % of EBITDA

110%

‐

91%

102%

(1,100)bps

(*Non‐IFRS Financial Information ‐ Normalised for non‐operational adjustments - refer to page 3 for further detail)

  • Revenue up 26% on FY16 to $496m

  • Net profit after tax pre‐amortisation (NPATA)* up 14% on FY16 to $28.6m

  • Strong cash flow with full year cash conversion rate of 91% of EBITDA*.

  • Full year dividend of 9.5 cents per share an increase of 6% on FY16.

  • Disciplined capital expenditure, improved debtor collections and strong cash flow resulted in net debt to equity of 41%.

  • Acquisition of Daniels Health - Australia's largest provider of health care waste management services

  • Maintained successful track record of contract wins ‐ awarded new contracts totaling over $100m

  • Investment in new best practice technologies to improve productivity and environmental sustainability

  • Daniels has performed well since acquisition achieving $13.8M EBITDA

  • Contribution from Daniels, Worth Recycling and growth of east coast operations counters the decline in resource sector construction related activities in the Pilbara, Central Queensland and Surat Basin regions.

Tox Free Solutions Limited published this content on 30 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 August 2017 08:27:07 UTC.

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