Reverse : 13-08-20 - Appendix 4E and Preliminary Financial Report

COMPANY ANNOUNCEMENT

12 August 2020

Reverse Corp Limited (ASX: REF) - 2020 Full Year Results Announcement

Reverse Corp Limited reports NPAT (net profit after tax) of $1,445,517 for the year ending 30 June 2020.

The NPAT result reflects:

• An accounting profit on the sale of the Online Contact Lens business to Coastal Contacts (Aus) Pty Ltd of $1,735,235 on 1 July 2019;
• 1800-Reverseclosure costs, net of adjustments, of $109,758; and
• REF shell running costs of $179,960.

The holdback funds from the sale of the Online Contact Lens business were received on 1 July 2020 of $140,000.

The Board has declared a final special dividend of 0.13 cents per share on 12 August 2020 payable on 2 September 2020.

Further to the ASX announcement on 23 February 2020, the Board has had no further discussions with any interested parties on the sale of the ASX shell.

The Company has the following assets:

• $30,000 in cash; and
• $3,243,242 in franking / imputation credits.

Reverse Corp Limited has 92,860,562 shares on issue and 430 shareholders.

Following this update, all Directors in office will resign and be replaced by a new Board of Directors as appointed by major shareholder, Q Services Holdings Limited.

By Order of the Board

Dion Soich

Company Secretary

REVERSE CORP LIMITED

ABN 16 085 949 855

Appendix 4E

Preliminary Final Report

for the year ended 30 June 2020

(compared to the year ended 30 June 2019)

Results for announcement to the market:

	Percentage	Amount
	Change	$
Revenue from ordinary activities	N/A	to $3,197
Profit from ordinary activities after tax	Up 177%	to $1,445,517
attributable to members
Net Profit for the period attributable to	Up 177%	to $1,445,517
members

Brief explanation of any figures reported above necessary to enable the figures to be understood:

Refer to the accompanying Directors' report, financial statements and notes.

Dividend:

The Board has declared a 0.13c fully franked special dividend to be paid on 2 September 2020 with a record date of 19 August 2020.

	30 June 2020	30 June 2019
Net tangible assets per security:	$0.002	$0.014

Commentary on the Results for the Period:

Refer to the accompanying Directors' report, financial statements and notes.

Audit/Review Status:

This report is based on accounts to which one of the following applies: (Tick one)

The accounts have been audited	X	The accounts have been subject to
		review
The accounts are in the process of		The accounts have not yet been
being audited or subject to review		audited or reviewed

Reverse Corp Limited ABN 16 085 949 855 and Controlled Entities

Financial Report for the Financial Year Ended 30 June 2020

Reverse Corp Limited ABN 16 085 949 855 and Controlled Entities

DIRECTORS' REPORT

Your directors present their report on the company and its controlled entities for the financial year ended 30 June 2020.

Directors

The names of directors in office at any time during or since the end of the year are:

Mr Peter D Ritchie - Chairman

Mr Richard L Bell

Mr Gary B Hillberg

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal Activities

The consolidated entity during the financial year had no principal activities following the closure of the Reverse Charge Calling business and the sale of the Online Contact Lens business on 30 June 2019 and 1 July 2019 respectively. The ASX has subsequently suspended the consolidated entity on 16 January 2020, until a new principal activity is re-established.

Operating Results

Net profit after tax (NPAT) for the year to 30 June 2020 was $1,445,517, including discontinued operations compared to a net loss after tax of $1,871,845 last year. The continuing operations incurred a net loss after tax of $179,960, compared to a net loss after tax of $1,341,998 last year.

The net profit after tax reflects the closure costs of the Reverse Charge Calling business, the profit on sale of the Online Contact Lens business and the ongoing costs to maintain the ASX listed shell.

Review of Operations

Reverse Charge Calling. Following the closure of the Reverse Charge Calling business on 30 June 2019, 1800- Reverse incurred service finalisation costs, net of any adjustments, of $109,758 which covered closure costs and for final premises lease and associated costs. All IT hardware was sold or scrapped with proceeds totalling $9,097. No further costs are expected to be incurred.

Online Contact Lenses. On 1 July 2019, the Online Contact Lens business was sold to Coastal Contacts (Aus) Pty Ltd for $2,908,436. Upfront payments totalling $2,768,436 were received with a hold back amount of $140,000 due, subject to no warranty claims, on 1 July 2020. An accounting profit of $1,735,235 has been recorded, with no income tax due.

Financial Position

The company generated operating cash outflows of ($617,164) down 272% compared to the previous year of operating cash inflows of $359,115. The consolidated entity has net cash at year-end of $45,811.

Significant Changes in State of Affairs

In the opinion of the directors there were no other significant changes in the state of affairs of the consolidated entity during the financial year not otherwise disclosed in this report or the consolidated financial statements.

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