Primary Opinion : 2017 Annual Report to Shareholders

Primary Opinion Limited

ABN 69 092 817 171

Annual Report - 30 June 2017

Primary Opinion Limited Contents 30 June 2017

Corporate directory 2

Directors' report 3

Auditor's independence declaration 13

Statement of profit or loss and other comprehensive income 14

Statement of financial position 15

Statement of changes in equity 16

Statement of cash flows 17

Notes to the financial statements 18

Directors' declaration 43

Independent auditor's report to the members of Primary Opinion Limited 44

Shareholder information 49

Primary Opinion Limited Corporate directory 30 June 2017

Directors	Mr. Tony Robinson (Non-executive Chairman)
Mr. Tom King (Non-executive Director)
Mr. Hugh Robertson (Non-executive Director)
Ms. Laura McBain (Managing Director)

Company secretaries	Ms Melanie Leydin
Mr Justin Mouchacca

Registered office	Level 4, 100 Albert Road
South Melbourne VIC 3205
Tel: [phone]
Fax: [phone]

Principal place of business	Level 4, 100 Albert Road
South Melbourne VIC 3205
Tel: [phone]
Fax: [phone]

Share register	Computershare Investor Services Pty Limited
GPO Box 2975
Melbourne VIC 3001
Tel: [phone]
Fax: [phone]

Auditor	Deloitte Touche Tohmatsu
550 Bourke Street
Melbourne Victoria 3000

Stock exchange listing

Primary Opinion Limited shares are listed on the Australian Securities Exchange (ASX code: POP)

Website

www.primaryopinion.com

Primary Opinion Limited Directors' report 30 June 2017

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Primary Opinion Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2017.

Directors

The following persons were directors of Primary Opinion Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:

Mr. Tony Robinson (Non-executive Chairman)

Mr. Tom Kiing (Non-executive Director)

Mr. Hugh Robertson (Non-executive Director)

Ms. Laura McBain (Managing Director - appointed 8 August 2017)

Principal activities

●	expanding its activities to the food and beverage industry with a particular focus on premium products; and
●	carrying out its investment in Maggie Beer Products Pty Ltd (MBP).

During the financial year the principal continuing activities of the consolidated entity consisted of:

Dividends

There were no dividends paid, recommended or declared during the current or previous financial year.

Review of operations The loss for the consolidated entity after providing for income tax amounted to $10,293,092 (30 June 2016: $1,826,939).

Financial Position

The net assets of the consolidated entity increased by $7,977,677 to $9,433,900 (30 June 2016 $1,456,223). The increase during the year was due to capital raising which was completed raising a total of $20,000,000 before share issue costs followed by a 48% equity investment in Maggie Beer Products Pty Ltd (MBP) for $15,000,000. An impairment of this investment amounting to $8,478,057 has been recognised as at 30 June 2017. The investment in MBP was the first step in a wider investment Strategy focused on the food and beverage Sector.

Operating results for the year

The consolidated entity reported a net loss of $10,293,092 for the financial year, which was an increase of $8,466,153 from the previous corresponding period (2016: loss $1,826,939). The increased net loss is mainly due to accounting for the Company's share of losses of MBP, amounting to $1,020,726 and impairment of its investment of $8,478,057 during the period.

Significant changes in the state of affairs On 15 July 2016, the Company announced that it had completed the capital raising of $20,000,000 from the issue of 500,000,000 shares at an issue price of $0.04 (4 Cents) per share. On 19 July 2016, The Company executed the Share Sale Agreement and Shareholders Agreement with the shareholders of Maggie Beer Products Pty Ltd (MBP) for the acquisition of a 48% stake in MBP.

On 18 July 2016, the Company issued 21,750,000 fully paid ordinary shares pursuant to the Company's Employee Loan Funded Share Plan, as approved by shareholders at a general meeting of shareholders held on 24 June 2016.

On 21 July 2016, following the completion of the transaction to acquire a 48% interest in Maggie Beer Products Pty Ltd, the company was requoted on ASX. The investment in Maggie Beer Products is equity accounted for as a joint venture with joint control.

As at the date of this report the Company has acquired 50,342,391 shares through the on-market share buyback for $727,400.

There were no other significant changes in the state of affairs of the consolidated entity during the financial year.