Profit before tax was $ 1.01M up by 51 % on the preceding December half.

Transcription

1 CHALMERS LIMITED ABN HEAD OFFICE 355 Francis Street, Yarraville, VIC Australia Telephone: (03) Facsimile: (03) Postal Address: PO Box 50, Yarraville, VIC March 2006 Australian Stock Exchange Company Announcements Platform Electronic transmission Results for Announcement to the Market The directors of Chalmers Limited are pleased to announce the group consolidated results for the financial half year ended 31 December Revenue rose by 11% to $ 18.8M. Profit before tax was $ 1.01M up by 51 % on the preceding December half. Top and bottom line growth was driven by our Brisbane operations as recent capital expansions provided further impetus to business growth. An interim dividend of 4 cents a share has been declared and will be paid 7 April Appendix 4D Half Year Information is attached Yours faithfully, J P FEDORKO COMPANY SECRETARY

2 CHALMERS LIMITED ABN Appendix 4D - ASX Half year information - 31 December 2005 Lodged with the ASX under Listing Rule 4.2A. This information should be read in conjunction with the 30 June 2005 Annual Report. Contents Results for Announcement to the Market (Appendix 4D item 2) Part A Half-year report (ASX Listing rule 4.2A1) Part B Directors Report 1 Independence Statement by Auditors 3 Consolidated Income Statement 4 Consolidated Balance Sheet 5 Consolidated Statement of Change in Equity 6 Consolidated Cash Flow Statement 7 Notes to the Consolidated Financial Statements 8 Directors Declaration 16 Independent Review Report to the Members 17 Supplementary Appendix 4D Information (Appendix 4D items 3 to 9) Part C 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 2005 and any public announcements made by Chalmers Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act This document has 22 pages in total.

3 CHALMERS LIMITED (Previous corresponding period: Half year ended 31 December 2004) Part A Results for Announcement to the Market Revenue from ordinary activities (Appendix 4D item 2.1) Profit/(loss) from ordinary activities after tax attributable to members (Appendix 4D item 2.2) Net profit/(loss) for the period attributable to members (Appendix 4D item 2.3) Up 11% to $18,791,005 Up 55% to $688,058 Up 55% to $688,058 Dividends/distributions (Appendix 4D item 2.4) Amount per security Franked amount per security Final dividend (prior year) 4 cents 4 cents Interim dividend 4 cents 4 cents Interim dividend payable: 7 / 04 / 2006 Record date for determining entitlements to the interim dividend: 20 / 03 / 2006 (Appendix 4D item 2.5) Explanation of Revenue (Appendix 4D item 2.6) Refer to Review of Operations per Directors Report Explanation of Profit/(loss) from ordinary activities after tax (Appendix 4D item 2.6) Refer to Review of Operations per Directors Report Explanation of Net Profit/(loss) (Appendix 4D item 2.6) Refer to Review of Operations per Directors Report Explanation of Dividends (Appendix 4D item 2.6 ) N/A

4 Part B CHALMERS LIMITED 1. Directors Report Your directors present their report on the consolidated entity consisting of Chalmers Limited and the entities it controlled at the end of, or during, the half year ended 31 December Directors The following persons were directors of Chalmers Limited during the whole of the half-year and up to the date of this report. C. Stubbs (Chairman) G.F. Birch (Chief Executive) G.W. Chalmers J.K. Wilson Consolidated Results Half-year $ $ Profit from ordinary activities after income tax Expense 688, ,059 JJJJJJJ JJJJJJJ Review of Operations First half year profits before tax have continued their improving trend set in recent years rising by 51% over that of the corresponding period to $1.011M. Operating revenue increased by 12% to $18.8M. Both top and bottom line enhancements were driven by Brisbane primarily through the ramp-up of the Freight Station operation which interlocks with the container park and transport businesses. Transport also benefited. Operationally, Melbourne remained consistent with December 04 performance despite a softening in transport revenue. This excludes a short transition period for the leasing of our bulk stores. Chalmers were not successful in retendering for the Toyota contract this ends a very long association between the two companies. As Toyota is a major customer representing over 10% of revenue base there lies a substantial challenge as existing work schedules are wound down progressively during the June half. Management have the task of replacing this work and the situation will become clearer by the end of the financial year. The aim is to minimise employee displacement. No redundancy costs have been provided for at this stage. Melbourne container operations performed at a somewhat lesser pace given the new landscape of minimal repair work that is, customers repositioning of boxes overseas before they can be repaired locally. However, subsequent to December, activity has resumed with some vigour as box demand increased to cover exports. The real success of the company lies in the hands of the Brisbane operation which has grown exponentially over a long establishment period. Directors consider it prudent to maintain interim dividend policy despite the improved first half result. A fully franked interim dividend of 4 cents per share. Final dividend policy will be reviewed at the end of the financial year.

5 CHALMERS LIMITED 2. Directors Report (continued) Rounding of Amounts The company is of kind referred to in Class Order 98/0100 issued by the Australian Securities & Investments Commission relating to the rounding off of amounts in the financial report. Amounts in the financial reports have been rounded off the nearest dollar. Auditors Independence Declaration A copy of the auditors independence declaration as required under section 307C of the Corporations Act 2001 is attached as part of this report. Signed at Yarraville this 7th day of March 2006, in accordance with a resolution of the directors..chairman C. Stubbs..Director G.F. Birch

6 3. PricewaterhouseCoopers ABN Auditors Independence Declaration 2 Southbank Boulevard SOUTHBANK VIC 3006 GPO Box 1331L MELBOURNE VIC 3001 DX 77 Melbourne Australia Telephone Facsimile As lead auditor for the review of the Chalmers Limited for the half year ended 31 December 2005, I declare that to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and b) no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Chalmers Limited and the entities it controlled during the period. Stephen Cougle Melbourne Partner 7 March 2006 PricewaterhouseCoopers

7 CHALMERS LIMITED 4. Consolidated Income Statement Half-year $ $ Notes Revenue from operating activities 18,777,877 16,835,540 Other income 13,128 52,016 Revenue from ordinary activities 18,791,005 16,887,556 Depreciation and amortisation expense (905,168) (862,430) Sub contract expense (3,241,223) (3,141,142) Vehicle and equipment expense (2,506,165) (1,892,743) Employee benefits expense (7,155,189) (6,819,917) Finance costs (285,280) (291,143) Material expenses (1,444,450) (1,300,258) Property expense (1,029,959) (857,005) Net loss on disposal of assets (24,250) - Other expenses from ordinary activities (1,187,958) (1,054,242) Profit from ordinary activities before income tax expense 1,011, ,676 Income tax expense (323,305) (225,617) Net profit attributable to members of Chalmers Limited 688, ,059 Basic earnings per share (cents per share) Diluted earnings per share (cents per share) The above Consolidated Income Statement should be read in conjunction with the accompanying notes.

8 CHALMERS LIMITED 5. Consolidated Balance Sheet As at 31 December 2005 Notes 31 Dec June 2005 $ $ CURRENT ASSETS Cash and cash equivalents 891,423 1,405,464 Receivables 4,345,200 4,035,036 Inventories 234, ,666 Other 540, ,264 6,010,822 6,129,430 NON-CURRENT ASSETS Property, plant & equipment 27,445,001 26,365,164 27,445,001 26,365,164 TOTAL ASSETS 33,455,823 32,494,594 CURRENT LIABILITIES Payables 2,297,827 2,992,019 Interest bearing liabilities 2,124,697 1,768,208 Current tax Liabilities 302, ,442 Provisions 781, ,610 5,505,773 5,622,279 NON-CURRENT LIABILITIES Deferred tax liabilities 1,065,368 1,207,463 Interest bearing liabilities 7,091,424 6,356,235 Provisions 772, ,586 8,929,381 8,311,284 TOTAL LIABILITIES 14,435,154 13,933,563 NET ASSETS 19,020,669 18,561,031 JJJJJJJ JJJJJJJ EQUITY Contributed equity 3,997,350 3,997,350 Retained Profits 4 15,023,319 14,563,681 TOTAL EQUITY 19,020,669 18,561,031 JJJJJJJ JJJJJJJ The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.

9 CHALMERS LIMITED 6. Consolidated Statement of Changes in Equity Half-year $ $ Total equity at the beginning of the half year 18,561,031 18,281,439 Net profit for the half year 688, ,059 Total recognised income and expense for the year 688, ,059 Transactions with equity holders in their capacity as equity holders: Dividends provided for or paid (note 5) (228,420) (171,315) Total equity at the end of the half-year 19,020,669 18,553,183?????????????? The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

10 CHALMERS LIMITED 7. Consolidated Cash Flow Statement Half-year $ $ Cash flows from operating activities Receipts from customers (Incl GST) 19,947,906 17,325,410 Payments to suppliers and employees (Inc GST) (18,743,388) (15,999,812) 1,204,518 1,325,598 Interest received 13,127 11,804 Borrowing costs (283,629) (288,473) Income taxes paid (297,710) (299,014) Net cash inflow from operating activities 636, ,915 Cash flows from investing activities Payments for property, plant an equipment (252,340) (538,560) Proceeds from sale of property, plant and equipment 155, ,634 Net cash outflow from investing activities (97,226) (163,926) Cash flows from financing activities Proceeds from borrowings 150, ,626 Repayment of borrowings (974,701) (1,068,011) Dividends paid (228,420) (171,315) Net cash outflow from financing activities (1,053,121) (888,700) Net (decrease) in cash and cash equivalents (514,041) (302,711) Add: Cash and cash equivalents at the beginning of the reporting period 1,405, ,652 Cash and cash equivalents at the end of the reporting period 891,423 (19,059) JJJJJJJ JJJJJJJ The above Consolidated Cash Flow Statement should be read in conjunction with the accompanying notes.

11 CHALMERS LIMITED 8. Notes to the Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This general purpose financial report for the interim half year reporting period ended 31 December 2005 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 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 2005 and any public announcements made by Chalmers Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act (a) Basis of preparation of half year financial report The accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. Application of AASB 1 First-time adoption of Australian Equivalents to International Financial Reporting Standards (AIFRS). This interim financial report is the first Chalmers Limited interim financial report to be prepared in accordance with AIFRS. AASB 1 First time Adoption of Australian Equivalents to International Financial Reporting Standards has been applied in preparing the financial statements. Financial statements of Chalmers Limited until 30 June 2005 had been prepared in accordance with previous Australian Generally Accepted Accounting Principles (AGAAP). AGAAP differs in certain respects from AIFRS. When preparing the Chalmers Limited interim financial report for the half year ended 31 December 2005, management has amended certain accounting valuation methods applied in the previous AGGAP financial statements to comply with AIFRS. With the exception of financial instruments, the comparative figures were restated to reflect these adjustments. Chalmers Limited has taken the exemption under AASB 1 to only apply AASB 132 and AASB 139 from 1 July Chalmers Limited has also taken the exemption under AASB 1 and elected not to apply AASB 3 Business Combinations retrospectively to past business combinations (business combinations that occurred before 1 July 2004). A reconciliation of equity and profit and loss between previous AGAAP and AIFRS has been prepared per note 2. Early adoption of standard Chalmers Limited has elected to apply AASB 119 Employee benefits to the reporting period beginning 1 July This includes applying AASB 119 to the comparatives in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. There is no financial impact of early adopting this standard. Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through profit or loss, certain classes of property, plant and equipment and investment property. (b) Principles of consolidation The consolidated accounts incorporate the assets, liabilities and results of all entities controlled by Chalmers Limited ( Parent Entity ) as at 31 December Chalmers Limited together with its subsidiaries is the consolidated entity referred to in this financial report. The effects of all transactions between entities in the consolidated entity are eliminated. Subsidiaries are also those entities (including special purpose entities) over which Chalmers Limited has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether Chalmers Limited controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The purchase method of accounting is used to account for the acquisition of subsidiaries by Chalmers Limited (refer note 1(d)).

12 CHALMERS LIMITED 9. Notes to the Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (b) (c) Principles of consolidation (continued) Intercompany transactions, balances and unrealised gains on transactions between Chalmers Limited companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by Chalmers Limited. Investments Interests in unlisted securities other than controlled entities in the consolidated accounts, are brought to account at cost and dividend income is recognised in the consolidated income statement when receivable. Where, in the opinion of the directors, there has been an impairment in the value of any individual investment, an impairment adjustment is made. (d) (e) Acquisition of assets The purchase method of accounting is used to account for all acquisitions of assets. Cost is measured as the fair value of assets given up at the date of exchange plus costs directly attributable to the acquisition. Land and buildings Before 1 July 2004 Land and buildings were stated in the financial statements at market value with annual assessments made by directors supplemented by independent valuations. Revaluation increases/decreases were recorded through the asset revaluation reserve. Adjustment on transition date: 1 July 2004 Chalmers have elected to measure Land & Buildings at the date of transition to AIFRS at its fair value and to use that fair value as its deemed cost in accordance with exemption AASB 1. After 1 July 2004 Land and buildings will be recorded at cost less accumulated depreciation. with impairment testing to be conducted at each report date. Where impairment exists, and deemed cost is below the recoverable amount (higher of fair value net of selling costs or value-in-use) the difference will be debited to the Income Statement. Liabilities for capital gains tax are provided for where a decision has been taken to dispose of the asset. (f) Leases Leases of property, plant and equipment where Chalmers Limited has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease s inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other long term payables. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The interest element of the finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the asset s useful life and the lease term. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. (g) Depreciation Depreciation is calculated at straight line excepting some motor vehicles which are on a diminishing basis, so as to write off the net cost of each item of property, plant and equipment over its expected useful life. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items.

13 CHALMERS LIMITED 10. Notes to the Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (h) (i) (j) Depreciation (continued) The expected useful lives are as follows: Buildings 50 years Plant and equipment 3-15 years Inventories Inventories which consist of fuel, spare parts, containers, engineering materials and container materials, are stated at the lower of cost or net realisable value. Cost is generally determined on a first-in-first-out basis. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. Income tax The income tax expense for the period is the tax payable on the current period s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity. Tax consolidation legislation Chalmers Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation as of 1 July The head entity, Chalmers Limited, and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a stand-alone taxpayer in its own right. In addition to its own current and deferred tax amounts, Chalmers Limited also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the group. Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities.

14 CHALMERS LIMITED 11. Notes to the Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (j) Employee benefits (i) Wages, salaries, annual leave and sick leave Liabilities for wages and salaries including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in provisions in respect of employees service up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled including on-costs. Liabilities for sick leave are recognised when the leave is taken and measured at the rates paid. (ii) Long service leave The liability for long service leave expected to be settled more than 12 months from the reporting date is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields on national government bonds as at the reporting date with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows (iii) Employee payroll on-costs Employee payroll on-costs are recognised and included as part of employee benefit provision and costs. (k) (l) (m) Retirement benefits Employee superannuation contributions made by the consolidated entity in order to provide retirement, disability or death benefits for employees and their dependents, are charged to the consolidated income statement as incurred. Cash and cash equivalents For purposes of the cash flow statement, cash includes deposits at call which are readily convertible to cash on hand and are subject to insignificant risk of changes in value, net of outstanding bank overdraft. Earnings per share (i) Basic earnings per share Basic earning per share is determined by dividing net profit after income tax attributable to members of the company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year. (ii) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. (n) (o) Impairment of assets Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset s carrying amount exceeds its recoverable amount.the recoverable amount is the higher of an asset s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Borrowing costs Borrowing costs are recognised as expenses in the period in which they are incurred.

15 CHALMERS LIMITED 12. Notes to the Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (p) (q) Trade and other creditors These amounts represent unpaid liabilities for goods and services provided to the consolidated entity prior to the end of the financial year. The amounts are unsecured and are usually paid within 30 days of recognition. Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, duties and taxes paid. Revenue is recognised for the major business activities as follows: (i) Transport Transport revenue is recognised on an accrual basis, as and when the delivery is performed. (ii) Containers Container revenue is recognised on an accrual basis, as and when the service is provided (r) (s) (t) Rounding of amounts The company is of a kind referred to in Class Order 98/0100 issued by the Australian Securities & Investments Commission relating to the rounding off of amounts in the financial report. Amounts in the financial reports have been rounded off to the nearest dollar Dividends Provision is only made for the amount of any dividend declared, determined or publicly recommended by the directors on or before the end of the financial year but not distributed at balance date. Refer note 5. Receivables All trade debtors are recognised at the amounts receivable as they are due for settlement and no more than 30 days for other debtors. Collectablity of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. A provision for doubtful debts is raised where there is objective evidence that Chalmers Limited will not be able to collect all amounts due and any event when the debt is more than 60 days overdue. The amount of the provision is recognised in the Income Statement. (u) Investment and other financial assets From 1 July 2004 to 30 June 2005 Chalmers has taken the exemption available under AASB 1 to apply AASB 132 and AASB 139 only from 1 July Chalmers has applied previous AGAAP to the comparative information on financial instruments within the scope of AASB 132 and AASB 139. For further information on previous AGAAP refer to the annual report for the year ended 30 June 2005 Adjustments on transition date: 1 July 2005 There were no adjustments required on 1 July 2005 to make this information comply with AASB 132 and AASB 139. From 1 July 2005 Chalmers classifies its investments in the following categories: financial assets at fair value through profit and loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at each reporting date. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when Chalmers provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date, which are classified as non-current assets.

16 CHALMERS LIMITED 13. Notes to the Consolidated Financial Statements 2. FIRST TIME ADOPTION OF AUSTRALIAN EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS Reconciliation of profit and loss at 1 July 2004 and 31 December 2004 There are no adjustments to be made to profit and loss for the year ended 30 June 2004 and the six months ended 31 December 2004 due to the transition to AIFRS. Reconciliation of equity As at As at As at 30 Jun Dec 04 1 Jul 04 Notes $ $ $ Total equity under AGAAP 18,586,462 18,578,614 18,306,870 Adjustments to retained earnings (net of tax) Recognition of assets at deemed cost (a),(b) 10,359,715 10,359,715 10,359,715 10,359,715 10,359,715 10,359,715 Adjustments to other reserves (net of tax) Recognition of assets at deemed cost (b) (10,385,146) (10,385,146) (10,385,146) (10,385,146) (10,385,146) (10,385,146) Total equity under AIFRS 18,561,031 18,553,183 18,281,439 Notes to the reconciliations (a) Property Plant and Equipment As part of the AIFRS transition process, Chalmers took the opportunity to review the values of land and buildings as at 1 July 2004 by reference to an independent valuation as at transition date conducted recently by Rushton Valuers Pty Ltd. The report advised that the fair value of land had increased significantly and that the fair value of buildings had decreased by a similar amount. Chalmers Limited has elected to use this valuation at transition date and deemed it as cost under AIFRS, as allowed under exemption AASB 1 First Time Adoption of Australian Equivalents to International Financial Reporting Standards. The adjustments were as follows: Freehold Land Buildings & associated assets Total $ $ $ Carrying amount 1 July ,999,815 9,862,313 17,862,128 Adjustment to fair value on transition to AIFRS 3,947,318 (3,972,749) (25,431) Adjusted Carrying amount 1 July ,947,133 5,889,564 17,836,697 The net impact on retained profits as at 1 July 2004 was an increase of $10,359,715 due to the asset revaluation reserve being transferred across refer note 2(b).

17 CHALMERS LIMITED 14. Notes to the Consolidated Financial Statements 2. FIRST TIME ADOPTION OF AUSTRALIAN EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (continued) (b) Asset Revaluation reserve The adoption of deemed cost for Land and Buildings requires the reversal of the Asset Revaluation Reserve to Retained Earnings. This required $10,359,715 to be debited to the Reserve and credited to Retained Earnings. This change was effected at 1 July (i) At 1 July 2004 The Asset Revaluation Reserve (consolidated) decreased by $25,431 to $10,359,715 as a result of the deemed cost election. The balance was then reduced to zero at date of transition to AIFRS and transferred to retained profits. (ii) At 31 December 2004 The Asset Revaluation Reserve (consolidated) decreased by $25,431 to $10,359,715 as a result of the deemed cost election. The balance was then reduced to zero at date of transition to AIFRS and transferred to retained profits. (iii) At 30 June 2005 The Asset Revaluation Reserve (consolidated) decreased by $25,431 to $10,359,715 as a result of the deemed cost election. The balance was then reduced to zero at date of transition to AIFRS and transferred to retained profits. 3. SEGMENT INFORMATION Primary reporting business segments Half-year 2005 Transport Containers Consolidated $ $ $ Total segment revenue 11,595,741 7,182,136 18,777,877 Unallocated revenue 13,128 PPPPPPP Revenue from ordinary activities 18,791,005 JJJJJJJ Segment result 615, ,488 1,035,613 Unallocated revenue less unallocated expenses (24,250) PPPPPPP Profit from ordinary activities before income tax expense 1,011,363 JJJJJJJ Half-year 2004 Total segment revenue 10,082,900 6,752,640 16,835,540 Unallocated revenue 52,016 PPPPPPP Revenue from ordinary activities 16,887,556 JJJJJJJ Segment result 297, , ,680 Unallocated revenue less unallocated expenses (108,004) PPPPPPP Profit from ordinary activities before income tax expense 668,676 JJJJJJJ

18 CHALMERS LIMITED 15. Notes to the Consolidated Financial Statements 4. RETAINED PROFITS 31 Dec 30 Jun $ $ Retained profits at the beginning of the financial year 14,563,681 14,284,089 Net profit attributable to members of Chalmers Limited 688, ,327 Dividends provided for or paid (228,420) (399,735) Retained profits at the end of the half year 15,023,319 14,563,681 JJJJJJJ JJJJJJJ 5. DIVIDENDS $ $ Ordinary shares Dividends provided for or paid during the half year 228, ,315 JJJJJJJ JJJJJJJ Dividends not recognised at the end of the half-year Since the end of the half-year the directors have recommended the payment of an interim dividend of $228,420 (4 cents per fully paid share) out of retained profits at 31 December 2005.

19 CHALMERS LIMITED 16. Directors Declaration The directors declare that the financial statements and notes set out on pages 4 to 15: (a) (b) comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and give a true and fair view of the consolidated entity s financial position as at 31 December 2005 and of its performance, as represented by the results of its operations and its cash flows, for the half-year ended on that date In the directors opinion: (a) (b) the financial statements and notes are on accordance with the Corporations Act 2001; and there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. Signed at Yarraville this 7th day of March 2006, in accordance with a resolution of the Board of Directors. Chairman C. Stubbs.. Director G.F. Birch

20 17. PricewaterhouseCoopers ABN Independent review report to the members of Chalmers Limited 2 Southbank Boulevard SOUTHBANK VIC 3006 GPO Box 1331L MELBOURNE VIC 3001 DX 77 Melbourne Australia Telephone Facsimile Matters relating to the electronic presentation of the reviewed financial report This review report relates to the financial report of Chalmers Limited (the Company) for the half-year ended 31 December 2005 included on Chalmers Limited s web site. The Company s directors are responsible for the integrity of the Chalmers Limited web site. We have not been engaged to report on the integrity of this web site. The review report refers only to the financial report identified below. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the reviewed financial report to confirm the information included in the reviewed financial report presented on this web site. Statement Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report of Chalmers Limited: does not give a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the Chalmers Limited Group (defined below) as at 31 December 2005 and of its performance for the half-year ended on that date, and is not presented in accordance with the Corporations Act 2001, Accounting Standard AASB 134: Interim Financial Reporting and other mandatory financial reporting requirements in Australia, and the Corporations Regulations This statement must be read in conjunction with the rest of our review report. Scope The financial report and directors responsibility The financial report comprises the balance sheet, income statement, statement of changes in equity, cash flow statement, accompanying notes to the financial statements, and the directors declaration for the Chalmers Limited Group (the consolidated entity), for the half-year ended 31 December The consolidated entity comprises both Chalmers Limited (the company) and the entities it controlled during that half-year. The directors of the company are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report. Review approach We conducted an independent review in order for the company to lodge the financial report with the Australian Securities and Investments Commission. Our review was conducted in accordance with Australian Auditing Standards applicable to review engagements. For further explanation of a review, visit our website

21 18. We performed procedures in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report does not present fairly, in accordance with the Corporations Act 2001, Accounting Standard AASB 134: Interim Financial Reporting and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the consolidated entity s financial position, and its performance as represented by the results of its operations and cash flows. We formed our statement on the basis of the review procedures performed, which included: inquiries of company personnel/the responsible entity s personnel, and analytical procedures applied to financial data. Our procedures include reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than that given in an audit. We have not performed an audit, and accordingly, we do not express an audit opinion. While we considered the effectiveness of management s internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls. Our review did not involve an analysis of the prudence of business decisions made by directors or management. Independence In conducting our review, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act PricewaterhouseCoopers Stephen Cougle Melbourne Partner 7 March 2006

22 CHALMERS LIMITED Supplementary Appendix 4D information Part C NTA Backing (Appendix 4D item 3) 31 Dec Dec 2004 Net tangible asset backing per ordinary share $3.32 $3.25 Controlled entities acquired or disposed of (Appendix 4D item 4) Acquired Disposed of N/A N/A Additional dividend/distributions information (Appendix 4D item 5) Details of dividends/distributions declared or paid during or subsequent to the half-year ended 31 December 2005 are as follows: Record date Payment date Type Amount per security Total dividend Franked amount per security Foreign sourced dividend amount per security 19 September October 2005 Final 4 cents 228,420 4 cents - 20 March April 2006 Interim 4 cents $228,420 4 cents - Dividend/distribution reinvestment plans (Appendix 4D item 6) At 31 December 2004 there was no dividend reinvestment plan in operation for Chalmers Limited. Associates and Joint Venture entities (Appendix 4D item 7) Name N/A Ownership interest 2005 % 2004 % Aggregate share of profits/(losses), Where material 2005 $ 2004 $ Contribution to net profit, where material 2005 $ 2004 $ Foreign Accounting standards (Appendix 4D item 8) N/A Audit Alert (Appendix 4D item 9) N/A

23 CHALMERS LIMITED Supplementary Appendix 4D information Part C This report is based on + accounts to which one of the following applies. The + accounts have been The + accounts have been audited. subject to review. The + accounts are in the process of being audited or subject to review. The + accounts have not yet been audited or reviewed. If the accounts have not yet been audited or subject to review and are likely to be subject to dispute or qualification, details are described below N/A If the accounts have been audited or subject to review and are subject to dispute or qualification, details are described below N/A By electronic lodgement... 7 March 2006 Company Secretary - JP Fedorko