NZ Stock Exchange Profit Announcements: Feb - May 2009

[Share Investor]

TOWER LIMITED – RESULTS FOR ANNOUNCEMENT TO THE MARKET
The following documents are attached:

- Media Release
- NZX Appendix 1
- ASX Appendix 4D
- Financial Statements for the six months ended 31 March
2009
- Financial Results Presentation




For immediate release
29 May 2009

ROBUST RESULT FOR TOWER IN TOUGH MARKET


Auckland, NZ: TOWER Limited (“TOWER”) has today reported a profit of NZ$26.6 million after tax for the half year to 31 March 2009. This is an increase of 32% on the corresponding period last year.

The result is materially impacted by the non-cash effect of movements in the discount rate which means that NZ$5.1 million has been added to profit for the period. However, TOWER’s underlying profit excluding the effect of the discount rate has increased from NZ$20.4 million to NZ$21.5 million – an increase of 5%. This underlines the sound progress the company is making despite global uncertainties.

Earnings per share were 13.83 cents – an improvement of 30% on the corresponding period last year, while annualised return on equity increased from 15.4% to 17.7%.

Each of TOWER’s operating companies has provided a solid contribution to the overall Group result.

The Health & Life business was affected by the lower level of returns generated in investment markets which contributed NZ$2.0 million less than the same period last year. However, trading operations produced NZ$0.5 million more than last year. Overall the profit after tax was NZ$13.8 million, down by NZ$1.5 million.

Performance of the General Insurance business was encouraging with operating earnings well ahead of the same period last year. Net profit after tax lifted significantly to NZ$9.4 million from NZ$7.7 million in the corresponding period and key ratios showed notable improvements. The New Zealand and the Pacific Islands General Insurance businesses both performed creditably.

The Investments business saw profit after tax in line with the same period year at NZ$2.3 million. A decrease in fee income was offset by reductions in expenses as the business continues to be right- sized in line with uncertain and at times turbulent market conditions.

In March TOWER successfully completed an issue of Unsecured 5 year Senior Bonds raising NZ$81.7 million at a fixed interest rate of 8.5%pa. The proceeds will be used to repay existing bank facilities, after which the Group will remain in a strongly liquid position.

TOWER Group Managing Director Rob Flannagan commented that this result was pleasing, especially when considering the global recessionary environment and the related volatility shown by financial markets during the period:-

“Recent months have seen seismic shifts in financial markets globally and we have experienced market conditions the like of which the world hasn’t seen for 50 years. I am proud of the fact that despite these conditions, TOWER has continued to enhance and strengthen its core business and this has enabled us to produce a very healthy result under these circumstances. Robust strategies and systems and committed leadership are more crucial than ever in order to weather this global storm. Customer service has remained a top priority as we strive to deliver a standard of professionalism and excellence across all of our core fundamentals in all three of our businesses.”

“TOWER continues to operate successfully in a highly competitive and very uncertain market. We are seeing positive outcomes as a result of our single minded focus on service, excellence and innovation. Our aim has always been to deliver the performance our shareholders seek, and this determination has not changed.”

The half year results and presentation are available on www.towerlimited.com

For further information please contact:

Rob Flannagan
Group Managing Director
TOWER Limited
Tel: +64 9 369 2057

[Share Investor]

Finzsoft Solutions Annual Results
for the year ended 31st March 2009

The Directors of Finzsoft Solutions Ltd report on the results of the Group for the year ended 31st March 2009.

The revenue for the group of $7.915 million was slightly down on the previous comparable period of $8.274 million.

This was in part due to the flow on of the wider market conditions which have resulted in a reluctance on the part of many of our clients to invest in the development of their operating platform. Whilst several of Finzsoft clients are operating in a restricted capacity there remains a solid core client base that have been less impacted and continue to prosper and recognise the value of our Sovereign product.

The after tax loss for the year of $759,589 was a combination of additional operating expenses, the restructure of the operation to match capacity and client demand, as well as investing in further development of Sovereign software and the investigation of a new business opportunity.

The company acted in October 2008 to align its cost structure with the anticipated future revenue streams. As a result the annualised employment costs reduced in excess of $1.5 million. Whilst there has been some benefit in the 2009 year the full benefit of this will be reflected in the financial year ending 31st March 2010.

The company is investigating a potential new business opportunity outside its core suite of products to provide additional value to our clients and to diversify its income stream. Whilst still in the early stages of development the new business has the potential to add value to the Group as a whole.

Finzsoft has continued to invest in its core product the Sovereign banking and finance platform and internally funded enhancements will ensure this product remains competitive and the user experience will be enhanced.

Directors are of the view that the appropriate steps have been taken to return to operating profitability by addressing the cost structure, ongoing focus on sales of new modules and diversifying the product range. In considering the years financial results the Directors have resolved not to pay a dividend to shareholders.

For more information on our activities, please refer to our web site http://www.finzsoft.com/


The Directors
Finzsoft Solutions Limited

FINZSOFT SOLUTIONS LIMITED
Results for announcement to the market
Reporting Period Full year report 31st March 2009
Previous Reporting Period 12 months to 31st March 2008
NZD Amount (000s) Percentage change
Revenue from ordinary activities $7,915 (4%)
Profit (loss) from ordinary activities after tax attributable to shareholders ($760) (130)%
Net profit (loss) attributable to shareholders. ($760) (130)%

Gross amount per share Imputed amount per share
Final dividend 0 cents 0 cents
Record date N/A
Dividend payment date N/A

Comments: Refer to the attached for commentary from directors on the results to 31st March 2009


Dividends Paid Date Paid Cents per share (fully imputed)
Interim Dividend for the year ending 31 March 2009 N/A 0.0
Final Dividend for the year ending 31 March 2008 N/A 0.0
0.0


Dividend Yield
Current full year Previous corresponding full year
Dividend Yield* 0% 3.3%
Tax adjusted Dividend Yield** 0% 2.2%
* Based on annual gross dividend paid of 3.0 cents divided by 31 March 2008 share price of $0.90 per share.
** Based on annual net dividend paid of 2.0 cents divided by 31 March 2008 share price of $0.90 per share.

[Share Investor]

DORCHESTER CONFIRMS FULL YEAR RESULTS

Dorchester Pacific today posted its full year results for the financial year to 31 March 2009 reporting a Net Loss after Tax of $25.4m (2008 $18.1 million loss).

The result is in line with the Company’s announcement of 12 May 2009 which detailed additional provisions and write-down adjustments required in the year end accounts.

Chairman Barry Graham noted: “Additional property loan provisions, consumer loan provisions and the write-down of Energy Direct Metering assets in the audited accounts are all as earlier advised. The provisional and deferred tax write off at $12.7 million was marginally lower and the fair value adjustment at $30.7 million was marginally higher than indicated in the 12 May 2009 announcement”.

Shareholders Funds of $16.2 million as at 31 March 2009 (2008 $41.7 million) were higher than the earlier $15 million guidance.

Mr Graham commented: “Obviously comparisons with last year reflect the wind-down of the finance receivable book and no new lending for most of the financial year following the decision in June 2008 to freeze repayments to investors pending approval of the Deferred Repayment Plan.

“As a result net revenue of $24.6 million was significantly down on 2008 net revenue of $64.4 million.

“The finance group produced an operating loss of $28.7 million before tax and before the fair value adjustment (2008 $9.2 million loss) as a result of the increased provisioning and bad debts written off.

“Dorchester Life achieved an operating profit before tax of $1.2 million (2008 $1.7 million profit) which was a creditable result in deteriorating economic conditions and with limited funding for new business as a result of the group’s position.

“As advised in the half year result, the investment in St Laurence Limited has been written down to a nil carrying value”.

Directors confirm that no dividend would be payable.

The accounts have been prepared on a going concern basis. Although an unqualified opinion is expressed, auditors Staples Rodway note fundamental uncertainties with respect to the realisation of property book loans should the property market continue to decline.

Executive Director, Paul Byrnes commented: “While the additional property loan provisions we are now taking were not anticipated at the time of the approval of the Deferred Repayment Plan last year they reflect a more negative view taken by independent valuers in the current market.

“However, one of the primary objectives of the Deferred Repayment Plan is not to conduct fire sales, but rather to carry out an orderly realisation during the term of the Plan. This approach is likely to produce a significantly better result”.

On the fair value adjustment of $30.7 million Mr Byrnes commented: “The adjustment is the difference between the original liabilities in respect of debenture stock and unsecured notes and those liabilities as modified by the Deferred Repayment Plan terms, including interest forgiven. This fair value adjustment to the profit and loss is mandatory under current accounting standards and while it supports positive shareholder funds in the meantime it does not create sustainable value for shareholders in the long term because of its reversal over the term of the Deferred Repayment Plan”.

Commenting on the current trading position and outlook Mr Byrnes said; “Collections from our motor vehicle and consumer loan books are tracking as forecast. While not under-estimating the property market uncertainty and challenges in realising property backed loans, there have been some signs of increasing interest in property positions in the last month or so. Our cash position as at 29 May 2009 is approximately $21 million and we are writing to our investors to advise them that we will be making our next 5% principal payment under the Deferred Repayment Plan a week early on 23rd June which will bring total repayments to date to 30%.

“Over the last 9 months we have significantly reduced staff numbers, overheads and operating costs to the level appropriate for current business activity. We are targeting around a break-even operating result before fair value adjustment for the current financial year on the basis of no additional provisioning nor provision write-backs”.


DORCHESTER PACIFIC LIMITED - Results for announcement to the market
Reporting Period: 12 months to 31 March 2009
Previous Reporting Period: 12 months to 31 March 2008


2009
($ millions) 2008
($ millions) Change
%
Revenue 24.6 64.4 -62%
Net Profit After Tax (25.4) (18.1)
Total Assets 149.3 308.3 -52%
Secured Debenture and Subordinated Unsecured Notes 99.1 208.6 -52%
Per Ordinary Share
Earnings (cents per share) (71) (50)
Final Dividend (cents per share) 0 0
Dividend Record Date n/a n/a
Dividend Payment Date n/a n/a
Net Asset Backing ($ per share) $0.45 $1.12 -73%

ENDS

For further information, please contact:

Paul Byrnes Barry Graham
Executive Director Chairman
Dorchester Pacific Limited Dorchester Pacific Limited
Tel: (09) 308 4950 Mobile: 0274 723 810
Mobile: 021 644 441

[Share Investor]

CHAIRMAN AND CHIEF EXECUTIVE OFFICER’S REPORT TO SHAREHOLDERS

The Directors present the consolidated results of Lombard Group Limited’s (Lombard Group) activities for the year ended 31 March 2009.

The financial statements are currently unaudited. The financial statements are in the process of being audited by Auditors on London, Hamilton. The auditors have indicated that the financial statements will have a qualified opinion based on the fact that the auditors, (and the Directors) do not have the financial records for those companies that are in receivership.

RECEIVERSHIP OF LOMBARD FINANCE & INVESTMENTS LIMITED AND ITS SUBSIDIARIES
On the 10th April 2008, Lombard Finance & Investments Limited and its subsidiaries were placed into receivership by the Trustee, Perpetual Trust Limited.

Compliance with IFRS requires the Board to present the Lombard Group's consolidated (including Lombard Financial & Investments Limited) financial position as at 31 March 2009 and 31 March 2008. This is shown in the financial statements as the unaudited "2009 Group" and "2008 Group".

Pro-forma Financial Statements
For the year ended 31 March 2008, the Board included a set of pro-forma financial statements to show Lombard Group's financial position as at 31 March 2008 had the balance sheets of Lombard Finance & Investments Limited and subsidiaries been written down to zero as at that date. In the Board's opinion this was a fair indication of Lombard Group's financial position as at 31 March 2008.

For the year ended 31 March 2009, the Board has again included a set of pro-forma financial statements to show Lombard Group's financial position for the year ended 31 March 2009 excluding Lombard Finance and Investments Limited and subsidiaries balance sheets which had already been written down to zero in the 2008 pro-forma financial statements.

FINANCIAL PERFORMANCE
The financial performance for the year has been dramatically affected by the decision of the Trustee to place the Lombard Group's significant subsidiary, Lombard Finance & Investments Limited into receivership on 10 April 2008.

The financial statements have been prepared from the information that Lombard Group held as at the date of the receivership of Lombard Finance & Investments Limited and its subsidiaries (in the form of incomplete draft management accounts as at 31 March 2008).

Given the Trustee's appointment of receivers on 10 April 2008, the Board had elected to fully impair the balance sheet of Lombard Finance & Investments Limited and its subsidiaries as shown in the pro-forma 2008 Lombard Group consolidated financial statements.

The unaudited consolidated pro-forma after-tax result for the year ended 31 March 2009 is a loss of $1.507 million. This includes an impairment loss of $1.425 million resulting from the write down of goodwill on the acquisition of United Home Mortgages Limited and an additional impairment of the secured debenture stock held by the parent company in its subsidiary (in receivership) of $0.26m.

Recognising the fundamentally changed economic environment, the Board has elected to impair all of the goodwill on the acquisition of United Home Mortgages Limited.

DIVIDEND
The Board has resolved that no dividend has been declared.

CURRENT
The Board are continuing the restructuring of Lombard Group and to this end have liquidated a number of entities. The Board and management remain committed to maintaining the residual value of Lombard Group in order to take advantage of any future opportunities that may arise, with the primary focus on optimising the value of Lombard Group and its main operating subsidiary in the interests of all shareholders.

David Wallace
Chairman

[Share Investor]

Zintel Group Limited
Results for announcement to the market

Reporting Period 12 months to 31 March 2009
Previous Reporting Period 12 months to 31 March 2008

Amount (000s) Percentage change
Revenue from ordinary activities $39,572 +5.4%
Profit (loss) from ordinary activities after tax attributable to security holder. $2,296 +1.1%
Net profit (loss) attributable to security holders. $2,296 +1.1%

Interim/Final Dividend Amount per security Imputed amount per security
Final Dividend 1.00 cents 0.4925 cents

Record Date 2009-06-12
Dividend Payment Date 2009-06-26

ZINTEL RESULTS ANNOUNCEMENT TO 31 MARCH 2009


Zintel Group Limited (NZAX: ZIN) today announced full year revenue to 31 March 2009 of $39.13m and net profit before tax of $3.42m.

Earnings
Revenue from continuing operations of $39.13m is up on the $37.15m for the prior year primarily due to increased revenue in the New Zealand Enterprise business, whilst net profit before tax is on par with $3.49m last year. Performance for the first half year to 30 September 2008 was sound with net profit before tax of $1.86m, however, as expected the Group experienced a weaker second half of $1.56m.

“As forecast, profit from continued operations is similar to last year’s result, and net profit after tax of $2.29m is slightly ahead of last year’s $2.27m due to lower tax this year,” said Chairman, Nick Gordon.

Net profit to 31 March 2009 represents earnings of 4.55 cents per share (4.50 cps). Positive cash flow from operating activities of $4.78m ($2.86m) resulted in cash and investments of $8.58m ($6.98m) at balance date with no term debt or bank liabilities. During the year Zintel acquired the business of Commspec in New Zealand and a customer database in Australia, both of which were settled in cash.

Dividend
The Company’s directors have declared a final dividend for the financial year ended 31 March 2009 of 1.00 cent per share (cps), carrying full imputation credits of 0.49 cps. This brings the full year dividend to 3.00 cps net, plus imputation credits of 1.48 cps, making a gross dividend of 4.48 cps.

This represents 66% of the profit for the year, against a policy of paying at least 40% of profits to shareholders in the form of dividend. The directors continue to consider the balance of dividends level to our shareholders whilst being mindful of economic uncertainty and retaining cash reserves to invest in growth opportunities.

The final dividend will be paid on 26 June 2009 to those shareholders on the register as at 12 June 2009.

Trading Conditions
Zintel operates three businesses: Zintel Communications Ltd and Zintel Communications Pty Ltd which manage Toll and Toll free in New Zealand and Australia respectively; Zintel Enterprise Ltd in New Zealand which provides business telephony and software solutions, together with maintenance and support services; and Zintel Payments Ltd providing payment technology products and services.

The telecommunications industry continues to be challenging with intense competition, reducing margins and increasing expenses. In this environment it is encouraging the Group has maintained profit levels in line with the prior year, although individual business unit performance has been mixed.

The Australian Communications business has again grown profitability in the last year which is positive given the industry challenges being faced. However profit from the New Zealand Communications business declined as it has yet to arrest the customer shrinkage and was particularly hard hit by the loss of its largest customer last November.

Enterprise enjoyed a considerably better year in a business that has lumpy revenues. The Commspec business has now been successfully integrated and operates within Enterprise. Although Commspec required further investment during the year, the Directors are comfortable with this acquisition and the rationale behind it.

Outlook
In January 2009, the Group announced its appointment as the exclusive New Zealand distributor for Hypercom EFTPOS terminals. We are working through bank certification and expect to be approved and selling terminals shortly. This new business activity is expected to at best break even for the year ended 31 March 2010, but should add significant profit in 2011 and beyond. This year it will require cash investment in inventory, debtors and capital equipment.

“Business as usual” projections for the year ended 31 March 2010 suggest a Group profit similar to the year just ended, although trading conditions are most uncertain and we are at the mercy of the economy and exchange rates. It should be noted that a considerable proportion of profit is generated from interest income on cash invested ($433k to 31 March 2009) and this income is reducing as interest rates fall.

The ambition of the Directors remains to grow the Group and the Company continues to be on the lookout for acquisition and investment opportunities. Zintel is committed to operating in both the Australian and New Zealand markets, and to offer a wider range of products and services as opportunities emerge or are created. The Group has a strong balance sheet, remains profitable and is cash flow positive which augers well during a recession.

ENDS

About Zintel Group Limited
Zintel Group Limited (http://www.zintel.co.nz) comprises three businesses providing a broad range of communication technology solutions in Australia and New Zealand. The Communications business offers a range of telecommunications services, specialising in Toll free services. The Enterprise business is a leading provider of integrated communications solutions based around Aastra, Alcatel-Lucent, GMT Workforce Management and Juniper data networking products. The recent inception of Zintel Payments has added payment technology products and services to the Group’s capability. Established in 1995 and listed on the NZAX in November 2003, Zintel now employs over 120 staff with offices in Sydney, Auckland, Wellington, Christchurch and Dunedin.

For further information:
Nick Gordon, Zintel Group Chairman on +64 21 930568

[Share Investor]

COMVITA LIMITED
NZX Listed Company Relations

For the 12 month period ending 31 March 2009, Comvita Limited ("Comvita", "the Company") reports a net operating surplus (before non-cash revaluation of financial derivatives) of $1.561 million. Total revenue for the full year of $71.44 million, was an increase of 26.4% over the previous 12 month comparative period. When including non-cash impairments and fair value movements of financial instruments, the net surplus after tax was $0.77 million.


Financial Summary: ($, millions) for 12 months ending March 2009
Total revenue 71.44
EBITDAF(i) 6.12
EBITDA 5.34
Net Operating Surplus(ii) 1.56
Net Surplus After Tax 0.77


Financial Summary: ($, millions) for 15 months ending March 2008(iii)
Total revenue 65.18
EBITDAF(i) 2.11
EBITDA 1.99
Net Operating Surplus(ii) (2.14)
Net Surplus After Tax (3.70)


(i)EBITDAF – earnings before interest, tax, depreciation, amortisation, impairments and fair value movements of financial instruments.
(ii) Net Operating Surplus – Net earnings after interest, depreciation and amortisation but before tax, impairments and fair value movements of financial instruments.
(iii)During the 2008 financial year Comvita made a change to the Company's balance date from 31 December to 31 March hence in that year a 15 months period was reported on.
(iv)The number of shares on issue as of the 31 March 2009 were 29,353,305.


Comvita's Chairman, Neil Craig says, "We regard our results as being credible in such a generally harsh economic environment. In the face of a very uncertain world economic outlook we chose to spend significantly more in the marketplace than we otherwise would have to secure our position. We also moved to reduce costs and rationalise the business resulting in a number of one-off restructuring costs. This included the closing of our Cambridge factory and warehouse"

Year on year sales growth was observed in all of the core business units; Functional Foods, Healthcare, Medical and Personal care. Market development was also solid with notably high growth in the key Asian markets and Australia. Sales in New Zealand and the UK fell slightly where the retail markets appear to have been more severely impacted by the general economic downturn.

Core operations for Comvita underwent a thorough review over the course of the year. This has resulted in some rationalisation of production and supply chain functions. Group-wide staff numbers have been reduced significantly. Management have adopted lean manufacturing best practices which is targeted to reduce inventory levels and improve overall operational efficiency.

The acquisitions made during 2007 and 2008 have been successfully integrated. Olive Products Australia and the Hong Kong distribution acquisition (Greenlife) have been outstanding successes. Medihoney (based around honey products in the medical industry) has been slower to produce profits than anticipated at the time of the acquisition however, the Company is confident about the long term success of the Medihoney brand particularly given its growing market acceptance in the established medical wound care market in North America, UK and Europe. KiwiBee Medical Ltd, a medical grade manuka honey producer acquired mid 2008, had an excellent first season for Comvita with harvest volumes above the previous year.

Comvita's cash flows were sufficiently robust from profit and inventory reduction over the last few months to pay back $2.5m of bank borrowings in March 2009. The Company expects to further reduce debt over the next 12 months. The relationship with Comvita's bankers, Westpac is strong with the appropriate funding arrangements in place and the Company operating within all bank covenants.

Neil Craig said, "Mindful of our desire to preserve cash in this tough economic environment, we will not be declaring a dividend at this time. This position will be reviewed again after the 6 months to September 2009 result. It should be remembered however that Comvita's profitability is more weighted to the second half of the financial year."

Comvita's Chief Executive, Brett Hewlett said, "During the last quarter of the past financial year our sales were more than 25% up on the same period in 2008. The first two months of this year are following a similar trend. This is an encouraging start to the new year. We acknowledge that our earnings in the past two years have been below the markets expectations however, our progress towards achieving our longer term strategic ambitions for this business have been relentless. We remain firmly on course with our growth strategy and are focused on delivering a sustainably higher level of profitability for our shareholders."

Contacts:
Neil Craig, Chairman, Comvita Limited : 021 731 509
Brett Hewlett, Chief Executive, Comvita Limited : 021 740 160

[Share Investor]

Burger Fuel Worldwide Limited
Results for announcement to the market

Reporting Period Full Year 1 April 2008 to 31 March 2009
Previous Full-year Reporting Period 9 1/2 Months to 31 March 2008

Amount (000’s) Percentage change
Revenue from ordinary activities 8,020 70%
Profit (loss) from ordinary activities after tax attributable to security holders -710 67%
Net profit (loss) attributable to security holder -710 67%

Interim/Final Dividend Amount per security Imputed amount
per security


Record Date -
Dividend Payment Date -


Comments: See attached Directors commentary and following


To be followed by the balance of the information required in the report pursuant to Appendix 1.

BURGERFUEL WORLDWIDE LIMITED (BFW) RESULTS TO 31 MARCH 2009

The directors of BurgerFuel Worldwide Limited (BFW) report an audited loss of $710,282 for the twelve month period to 31 March 2009.

Of this amount $669,000 represents the previously reported loss for the six month period 1 April – 30 September 2008. The balance of $41,282 represents the loss for the past six month period from 1 October 2008 – 31 March 2009.

Total (unaudited) Australasian system sales are up 15.5% to $25,927,266 (excl GST).

Losses are attributed to the continued development of the New Zealand and Australian operations as well as investment into other BurgerFuel international markets, such as the United Arab Emirates (UAE), Saudi Arabia and Bahrain where BFW has signed Area Development agreements for the rollout of new stores in those regions.

BFW results for the year ended 31 March 2009

Year End 2009

$(000’s)

Total Revenue 8,020
Total Expenses (8,730)
Loss (710)


NEW ZEALAND

BurgerFuel NZ system sales up 13.9%

Total BurgerFuel system sales (unaudited) from 1 April 2008 to 31 March 2009 are up 13.9% to $23,785,621. BFW’s royalty earnings correlate directly to growth in BurgerFuel system sales.

In the year to 31 March 2009, the group opened 3 new franchise stores in NZ bringing store numbers in NZ to 26.

Directors said NZ store numbers would continue to grow with a new store due to open in Mission Bay, Auckland in July. However, the continuation of a weak economy and uncertain conditions would negatively affect expansion in NZ.







AUSTRALIA (reported in NZ$)

BurgerFuel Australia system sales up 47%

BurgerFuel Australia (unaudited) system sales for the period 1 April 2008 to 31 March 2009 were up 47% to $2,141,645

No new stores were opened in Australia within the period. The weak Australian economy together with rising employment costs has meant that a cautious approach to the opening of further stores in Australia was necessary. The group has increased turnover and reduced costs and losses. The Directors feel it is prudent to continue to build the brand in Australia within existing stores, before opening any new stores.

INTERNATIONAL

During the year to 31 March 2009 the group signed area development agreements in UAE, Saudi Arabia and Bahrain. Due to the considerable slow down in Dubai, no stores were opened in this period, however the UAE partners are now actively seeking sites in the key locations and BFW hopes to announce a first store location in Dubai, shortly.

In Saudi Arabia, the first store location has been selected in Al Kohbar and construction is due to commence shortly.

The board’s current policy on expansion into new markets is only by way of Area Development or Master License agreements, where the licensee is responsible for all capital costs of BurgerFuel store construction and operations.


BFW OUTLOOK

The board of directors have advised that the BFW strategy remains consistent with the previous year. The group is focused on three main areas:

1) Continued growth of the total system sales in NZ, by way of increased store sales as well as an increased number of stores. However, the board is mindful of the current economic climate.
2) Continuing to build up trading in both Australian stores to ensure future profitable expansion can ultimately occur in Australia.
3) Negotiating Area Development or Master Franchise agreements in other identified countries to earn royalties and other revenue by licensing the BurgerFuel system.



Given the global and local economic situation, a key focus has been on reducing costs to ensure that the group can preserve cash and eventually reach profitability. In the last six months to 31 March 2009 the company was close to breaking even. Costs will continue to be managed in accordance with board policy, however further losses are expected in the 6 months to 30 September 2009, due to the requirement to support international markets and also continue to expand NZ.

SUMMARY

• Full year audited loss is ($710,282). This is made up of ($669,000) from 1 April 2008 – 30 September 2008 and the balance of ($41,282) from 1 October 2008 – 31 March 2009
• Total unaudited System Sales Australasia are up 15.5% to $25,927,266 (excl GST)
• Area development agreements for 3 new countries signed.
• Store development in NZ continues.
• Consolidation in Australia with growth of 47% but no new stores opened.
• BFW will continue with its strategy as outlined in its prospectus.
• Directors expect continued measured progress given global and local economic climate.

The board confirmed its strategy of continued, but measured investment as outlined in the prospectus, to ensure brand growth in NZ and internationally, in order to achieve future profitability.

As at 31 March 2009 BFW’s net asset position was $3,876,423 which included cash reserves of $1,517,069. The group has no material borrowings.

Peter Brook
Chairman

Chris Mason
CEO


For further information please contact:


Josef Roberts
Executive Director

Ph 021 444-786

Related Attachments

BFW_Annual_Report_2009.pdf

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