Thorney Opportunities : Appendix 4E and 2019 Annual Report

Thorney Opportunities Ltd

ABN 41 080 167 264

Appendix 4E and

2019 Annual Report

THORNEY OPPORTUNITIES LTD

ABN 41 080 167 264

APPENDIX 4E (Listing Rule 4.3A)

Preliminary final report for the year ended 30 June 2019

RESULTS FOR ANNOUNCEMENT TO THE MARKET

(All comparisons to year ended 30 June 2018)	$'000s		Up/Down	Movement
Revenue from ordinary activities (Total	2,231		Up	12%
investment income)
Profit before tax for the year	2,165		Up	17%
Profit after tax for the year	936		Up	8%
		Cents		Franked	Taxing rate
		per		amount	for
Dividend information	share		per share	franking
2019	Final dividend cents per share	1.14		1.14	27.5%
2019	Interim dividend cents per share	0.66	0.66	27.5%
2018	Final dividend cents per share	0.90	0.90	27.5%
2019	Final dividend dates
Ex-dividend date			9 September 2019
Record date			10 September 2019
Payment date			30 September 2019

Dividend Reinvestment Plan

The Dividend Reinvestment Plan (DRP) will not operate in respect of the 2019 Final dividend.

	30 June 2019	30 June 2018	Movement
Net tangible asset backing (after tax) per share	80.1 cents	75.7 cents	Up 6%

This information should be read in conjunction with the 2019 Annual Report of Thorney Opportunities Ltd and any public announcements made in the period by Thorney Opportunities Ltd in accordance with the continuous disclosure requirements of the Corporations Act 2001 and Listing Rules.

This report is based on the financial statements of Thorney Opportunities Ltd which have been audited by Ernst and Young.

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: TOP

Security: Thorney Opportunities Ltd fully paid ordinary shares

Directors: Alex Waislitz, Chairman

Ashok Jacob

Henry D. Lanzer AM

Dr Gary H. Weiss AM

Secretary: Craig Smith

Country of incorporation: Australia

Registered office: Level 39, 55 Collins Street

Melbourne Vic 3000

Contact details: Level 39, 55 Collins Street

Melbourne Vic 3000

1. + 613 9921 7116

1. + 613 9921 7100

1. [e-mail]

1. www.thorneyopportunities.com.au

Investment Manager: Thorney Management Services Pty Ltd

Level 39, 55 Collins Street

Melbourne Vic 3000

AFSL: 444369

Auditor: Ernst & Young, Melbourne

8 Exhibition Street

Melbourne Vic 3000

Solicitors: Arnold Bloch Leibler

333 Collins Street

Melbourne Vic 3000

Share Registry: Boardroom Pty Limited

Level 12, 225 George Street

Sydney NSW 2000

1. + 612 9290 9600

1. + 612 9279 0664

1. www.boardroomlimited.com.au

For all shareholder related enquiries please contact the share registry.

Annual	When:	Wednesday 20 November 2019¹
General	Where:	Ernst & Young Level 23, 8 Exhibition Street, Melbourne Vic 3000¹
Meeting	¹ The proposed date and place of the 2019 AGM is subject to change. The Company
(AGM):	will advise shareholders of meeting details in mid-October 2019.

Thorney Opportunities Ltd 2019 Annual Report

Page | 2

Contents
Chairman's letter ..................................................................................................................................................	4
Directors' report ...................................................................................................................................................	5
1.	Directors ......................................................................................................................................................	5
2.	Company Secretary .....................................................................................................................................	6
3.	Principal activities........................................................................................................................................	7
4.	Result...........................................................................................................................................................	7
5.	Dividends .....................................................................................................................................................	7
6.	Review of operations...................................................................................................................................	7
7.	Financial position.........................................................................................................................................	8
8.	Prospects .....................................................................................................................................................	8
9.	Material business risks ................................................................................................................................	8
10.	Events subsequent to balance date ............................................................................................................	8
11.	2019 Remuneration report (Audited) .........................................................................................................	9
12.	KMP relevant interests ..............................................................................................................................	12
13.	Board and committee meetings................................................................................................................	12
14.	Environmental regulation..........................................................................................................................	12
15.	Indemnification and insurance of officers and auditor.............................................................................	13
16.	Auditor's independence declaration .........................................................................................................	13
17.	Non-audit services.....................................................................................................................................	13
Auditor's independence declaration...................................................................................................................	14
Corporate governance statement ......................................................................................................................	15
Statement of comprehensive income.................................................................................................................	21
Statement of financial position ...........................................................................................................................	22
Statement of changes in equity ..........................................................................................................................	23
Statement of cash flows......................................................................................................................................	24
Notes to the financial statements.......................................................................................................................	25
Directors' declaration..........................................................................................................................................	42
Independent audit report ...................................................................................................................................	43
Shareholder information.....................................................................................................................................	48

Thorney Opportunities Ltd 2019 Annual Report

Page | 3

Chairman's letter

TOP RECORDS $15M PROFIT AND INCREASES FINAL DIVIDEND BY 27%

Dear fellow shareholder,

I'm delighted to report that for the year ended 30 June 2019, Thorney Opportunities Ltd (TOP) has delivered a net profit before tax of $15,009,872.

Directors have also declared a record Final dividend (100% franked) of 1.14 cents per share (cps), up 27% on last year. Total dividends for the 2019 Financial Year of 1.80 cents per share represent a 20% increase over 2018.

The partial realisation of your Company's holding in Service Stream Limited, an investment which has been highly successful, has enabled the higher Final dividend of 1.14 cps. The Final dividend has a record date of 10 September 2019, and will be paid to registered shareholders on 30 September 2019. The Board remains committed to continuing to increase dividends when possible in the future.

As at 30 June 2019, TOP's net tangible assets (NTA) after tax per share stood at 80.1 cents (2018: 75.7 cents) which is after the payment of management fees, taxes and fully franked dividends to TOP shareholders. As at 31 July 2019 the NTA had increased to 82.0 cps.

Over the past 5 years the NTA has risen from 46.6 cps to 80.1 cps, representing a 72% gain. In addition TOP has also paid 6.9 cps in fully franked dividends over this period which equates to a gross annualised performance of 17.3%.

The Board believes it is appropriate to maintain the suspension of the dividend reinvestment plan (DRP), due largely to the discount which exists between the underlying share price and the NTA. I have personally taken advantage of the discount to NTA by purchasing an additional 3,180,893 shares since the beginning of the financial year, increasing my interest in the Company to 29.5%.

In September, following completion of the 2019 financial reporting season, I will send you a Chairman's Update which will provide both highlights from TOP's portfolio companies and some of my insights. My team and I will continue to monitor the activities of all the investment portfolio positions as well as seek out new and compelling investments.

All Chairman's Updates can be found on TOP's website, thorneyopportunities.com.au/chairmans-updates.

On behalf of my fellow Board members and investment team, I want to thank you for your continued support and interest in TOP and I look forward to a successful year ahead.

Alex Waislitz

Chairman

13 August 2019

Thorney Opportunities Ltd 2019 Annual Report

Page | 4