Zoono : Interim Financial Report and Appendix 4D

For personal use only

ZOONO GROUP LIMITED

AND CONTROLLED ENTITIES

ABN 73 006 645 754

INTERIM FINANCIAL REPORT and ASX

APPENDIX 4D

for the half-year period ended

31 December 2021

ZOONO GROUP LIMITED

ABN 73 006 645 754

For personal use only

CONTENTS
ASX APPENDIX 4D - RESULTS FOR ANNOUNCEMENT TO THE MARKET…………………….2
DIRECTORS' REPORT ...............................................................................................	4
AUDITOR'S STATEMENT OF INDEPENDENCE ............................................................	8
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME .................................................................................................................	9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION...........................................	11
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY............................................	12
CONSOLIDATED STATEMENT OF CASH FLOWS .......................................................	14
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS...................	15
DIRECTORS' DECLARATION ...................................................................................	23
AUDITOR'S REVIEW REPORT .................................................................................	24
CORPORATE DIRECTORY .......................................................................................	26

This interim financial report does not include all the notes of the type normally included in an Annual Financial Report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 30 June 2021 and any public announcements made by Zoono Group Limited during the interim reporting period in accordance with the continuous disclosure requirement of the Corporation Act 2001.

For personal use only

ZOONO GROUP LIMITED

ABN 73 006 645 754

ASX APPENDIX 4D - RESULTS FOR ANNOUNCEMENT TO THE MARKET

For the half-year ended 31 December 2021

			6 months	6 months
			31 Dec 2021	31 Dec 2020
			NZ$	NZ$
Revenue from ordinary activities	Decrease	(58%)	6,081,433	14,424,868
(Loss)/profit from ordinary activities after tax	Decrease	(206%)	(2,022,884)	1,907,909
Net (loss)/profit for the period attributable to:
Owners of the parent entity	Decrease	(205%)	(1,995,563)	1,905,272
Non-controlling interest	Decrease	(1,136%)	(27,321)	2,637

Please refer to the interim financial statements for the half-year ended 31 December 2021 for further explanations of the figures presented above.

Dividends

No interim dividend will be paid or declared in relation to the half-year ended 31 December 2021.

Net Tangible Assets
	31 Dec 2021	31 Dec 2020
	NZ$	NZ$
Net tangible asset backing per ordinary share - NZ$ per
share	$0.08	$0.08

Review of Results

Refer to Review of Operations and Results included in the Directors' Report.

Audit dispute or qualification

The interim financial statements for the half-year ended 31 December 2021 have been subject to review and are not subject to dispute or qualification.

Control gained or lost over entities during the period, for those having material effect

Zoono South Africa (Pty) Limited was incorporated during the period.

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ZOONO GROUP LIMITED

ABN 73 006 645 754

For personal use only

Investments in associates and joint ventures

No investments in associate and joint ventures are held by the Group.

Dividend Reinvestment plan

Not applicable.

Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

Attachments

Details of attachments (if any)

The Condensed Consolidated Interim Financial Report for the half-year period ended 31 December 2021 is attached.

Signed

Paul Hyslop

Managing Director/CEO

Date: 24 February 2022

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For personal use only

ZOONO GROUP LIMITED

ABN 73 006 645 754

DIRECTORS' REPORT

Your directors present their report on Zoono Group Limited ('Company') and its controlled entities (together called the 'Group' or the 'consolidated entity') for the half-year ended 31 December 2021.

All numbers stated in this report are in New Zealand dollars, unless otherwise stated.

Directors

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

Mr. Paul Hyslop	Managing Director
Mr. Don Clarke	Independent Non-Executive Director
Ms. Elissa Hansen	Independent Non-Executive Director

Directors have been in office for the half-year ended 31 December 2021 and subsequently to the date of this report unless otherwise stated.

Company Secretary

Ms. Elissa Hansen.

Principal activities

The principal activities of the consolidated entity during the half-year were the development and sale of a range of antimicrobial products in multiple countries.

Operating result

The Group recorded an after-tax loss of NZ$2,022,884 (2020: NZ$1,907,909 profit) for the half-year.

Review of operations

Challenging and volatile market conditions:

Sales revenues were down materially in the first-half and on the prior corresponding period. This is attributed primarily to the following:

• customers holding inflated inventory levels generated by significant over-ordering in previous periods; and
• expected sales and new market initiatives taking longer than expected to build momentum.

Despite the disappointing result, cashflow is still positive in the first half and the Company remains in a strong financial position.

Growth opportunities

Driving revenue growth is and will continue to be the key focus across the Company. To that end, the Company notes the following positive developments:

• Zoono Animal Health UK has confirmed rollout of the Company's products to one of the largest chicken producers in the UK. Other major poultry producers are now trialing the products.
• Zoonex Systems, which has partnered with Astrea, a London-based asset manager, is progressing with the roll out of an antimicrobial system which dramatically improves air quality within buildings. The equipment, which is a first in the UK, uses Zoono products within building ventilation systems to reduce micro-organism counts and effectively turn building HVAC systems

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