Thorney Opportunities : Appendix 4D and 2019 Half-Year Financial Statements

THORNEY OPPORTUNITIES LTD ACN 080 167 264

APPENDIX 4D (Listing Rule 4.2A3)

Consolidated financial statements for the half-year ended 31 December 2018

RESULTS FOR ANNOUNCEMENT TO THE MARKET

(All comparisons to half-year ended

2019 Interim dividend per share

0.66

0.66

27.5%

31 December 2017)	$'000s	Up/Down	Movement
Revenue/(loss) from ordinary activities	(16,745)	Down	224%
Profit (loss) after tax for the year	(12,407)	Down	248%
Franked	Tax rate
Amount per	amount per	for
share	share	franking
Dividend information	(cents)	(cents)	credit
2018 Final dividend per share	0.90	0.90	27.5%
2018 Interim dividend per share	0.60	0.60	30.0%
2019 Interim dividend dates
Ex-dividend date	19 March 2019
Record date	20 March 2019
Interim dividend payment date	4 April 2019
Movement
Down 8.5%

The Company's Dividend Reinvestment Plan (DRP) will not apply to the 2019 Interim dividend.

31 Dec 2018

31 Dec 2017

Net tangible asset backing per ordinary share

68.7 cents

75.1 cents

This report should be read in conjunction with the Thorney Opportunities Ltd 2018 Annual Report.

Additional information supporting the Appendix 4D disclosure requirements can be found in the Directors' Report and the consolidated financial statements for the half-year ended 31 December 2018.

This report is based on the consolidated financial statements for the half-year ended 31 December 2018 which have been reviewed by Ernst & Young.

Level 39, 55 Collins Street, Melbourne Vic 3000 Telephone + 61 3 9921 7116 Facsimile + 61 3 9921 7100

Company particulars

Thorney Opportunities Ltd is a disclosing entity under the Corporations Act 2001 and currently considered an investment entity pursuant to ASX Listing Rules. The Company is primarily an investor in listed equities on the Australian securities market.

ASX Code: Security: Directors:Secretary:

Country of incorporation

Registered office:Contact details:Investment Manager:Auditor:Lawyers:Share Registry:

TOP

Thorney Opportunities Ltd fully paid ordinary shares Alex Waislitz, Chairman

Ashok Jacob

Henry Lanzer AM Dr Gary WeissCraig Smith Australia

Level 39, 55 Collins Street Melbourne Vic 3000

Level 39, 55 Collins Street Melbourne Vic 3000

T: + 613 9921 7116 F: + 613 9921 7100

E:[e-mail]

W:www.thorneyopportunities.com.au

Thorney Management Services Pty Ltd Level 39, 55 Collins Street

Melbourne Vic 3000 AFSL: 444369

Ernst & Young, Melbourne 8 Exhibition Street Melbourne Vic 3000

Arnold Bloch Leiber

Level 21, 333 Collins Street Melbourne Vic 3000

Boardroom Pty Limited Level 12, 225 George Street

Sydney NSW 2000

T: + 612 9290 9600

F: + 612 9279 0664

W:www.boardroomlimited.com.au

For all shareholder related enquiries please contact the share registry.

Contents

Chairman's letter .................................................................................................................................................. 4

Directors' report ................................................................................................................................................... 6

• 1. Directors ...................................................................................................................................................... 6

• 2. Principal activities ........................................................................................................................................ 6

• 3. Review of operations ................................................................................................................................... 6

• 4. Auditor's independence declaration ........................................................................................................... 7

Auditor's independence declaration ..................................................................................................................... 8

Consolidated statement of comprehensive income ............................................................................................. 9

Consolidated statement of financial position ..................................................................................................... 10

Consolidated statement of changes in equity ..................................................................................................... 11

Consolidated statement of cash flows ................................................................................................................ 12

Notes to the consolidated financial statements ................................................................................................. 13

Directors' declaration .......................................................................................................................................... 19

Independent auditor's review report .................................................................................................................. 20

Chairman's letter

Dear fellow shareholders

As at 31 December 2018, TOP's net tangible asset backing per share (NTA) was 68.7 cents. However, since the beginning of the 2019 calendar year, the NTA increased around 5% to 72.1 cents per share as at 31 January 2019 following more optimistic equity market conditions. Some positive half year results released by core portfolio companies, and endorsement from the market, has seen the NTA continue to climb through February. Since inception in December 2013, TOP's NTA plus dividends has delivered returns to shareholders of over 58%.

The declining equity market conditions in the last quarter of calendar year 2018 saw some negative moves in valuations of core TOP portfolio investments. However, I maintain my conviction regarding these positions, most of which have seen a substantial recovery in value during the first few weeks of 2019. These companies have proven over the long term to be financially robust, well-managed and successful in the execution of their strategic plans. In fact, the equity market volatility provided a valuation arbitrage, which we acted upon, taking the opportunity to buy additional shares at attractive prices.

I am pleased to announce that TOP Directors have decided to increase the interim dividend for the 31 December 2018 half year by 10% to 0.66 cents per share (December 2017: 0.6 cents per share). TOP shares will trade ex-dividend on 19 March 2019 with the interim dividend being paid on 4 April 2019.

There have been a number of operational and investment highlights for TOP during the period, including:

• • Service Stream Limited (SSM) announced in December 2018, the $161.7 million acquisition of Comdain Infrastructure, an engineering service provider to utility asset operators. The deal was completed in early January 2019 and is expected to provide a further diversification of its revenues and growth in earnings. SSM recently announced its financial results for the half year period ended 31 December 2018, again delivering an increase in all key metrics which has translated into a strong share price response;

• • AMA Group Limited continued to acquire and expand its panel business throughout the period. Ahead of its Annual General Meeting, the Company announced a number of changes to its board and management structure, a framework which should position it to achieve its growth ambitions;

• • Money3 Corporation Limited continues to grow its automotive loan book business and announced earlier this week as part of its half year results release that it had executed on its stated strategy to exit the small amounts loan business. This transaction, coupled with the announcement that it was also acquiring a New Zealand-based automotive loan book, was well-received by investors and other stakeholders. The company also announced board changes during the period including a new chairman and TOP is supportive of these appointments;

• • Following an extended period of an ASX trading suspension, Murray River Organics Group Limited emerged having completed a substantial recapitalisation of its balance sheet in October 2018. TOP was one of the anchor participants in this capital raise, emerging, along with its associates, with a shareholding in the company of 32%. With a stronger balance sheet, a stable and capable board and management team, I am optimistic about the long term prospects for Murray River Organics;

• • Nine Entertainment Co Holdings Limited completed its merger with Fairfax Media Limited during December 2018, creating a larger and diversified player in the television, newspaper, radio and on-line property business markets.