Inventis : Letter to Shareholders

SYDNEY, 9 September 2016: Inventis Limited [ASX: IVT]: Letter to Shareholders

The Directors of Inventis Limited (ASX: IVT), are pleased to provide a summary of the financial results for the year ending 30 June 2016.

Positive year-end results for the consolidated group and a positive outlook for the year ahead reflect the excellent progress we have made this year, culminating in the total integration of the divisions into a single unified operation under the leadership of one General Manager, Mr Garry Valenzisi.

To maintain our ethos of being a leader in the development of innovative products and inspired solutions for consistent and sustainable shareholder value, the Board embarked on a strategy of reorganisation and cost reduction 2-years ago. This program has now concluded and the fiscal benefits have already started to flow through to the bottom line.

Net Profit After Tax, for the full year, was $166,498; which is a $5.64 million turnaround as compared to last financial year.

Although revenue was 5.9% lower than last year, the Company has made significant inroads into existing and new markets to correct this trend in the coming year.

The Company is well-positioned to capitalise on its turnaround for significantly improved results in the coming financial year.

The two primary divisions of the Company have performed extremely well against a backdrop of disruption, relocation and external forces, which led to an insurance claim being submitted in respect of our Technology Division; the benefits of which are expected to flow through into the FY2017 results.

Commercial Furniture: achieved 101% of its revenue budget for FY2016; increased delivery outcomes for enhanced customer satisfaction; doubled its national sales force; and is expected to achieve its revenue target for FY2017 of $11.8 million with a projected EBITDA in the order of $5.0 million.

Technology: achieved 76% of targeted revenue outcomes for the FY16 period; However, its order book as at 1 July 2016 is already 40% of its total expected revenue for FY2017 of $4.1 million; with an expected EBITDA of approximately $2.0 million. This is being achieved by strengthening our existing customer relationships; increased levels of research and development; and bringing certain manufacturing processes in- house to ensure cost effectiveness and reliability in supply.

It has certainly been a long haul to get to a position where we can look to the future with both certainty and positive outcome anticipations, and I would like to express sincere gratitude and a thank you to everyone involved in helping us to get to this point. Thank you to our shareholders for their patience, our management team for their commitment, our staff for their dedication and perseverance and our suppliers and customers for their continuing support and co-operation. In particular, I would like to express my gratitude to my fellow Board members for providing not only sound business practices and governance, but also a range of complementary skills that have enabled the Company to re-establish itself as a market leader capable of seizing opportunity and to capitalise on it for the benefit of all our stake-holders.

Tony Noun