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1. Company detailsName of entity:ABN:Reporting period:Previous corresponding period:

2.

up 20.3% to

up 5.7% to

down 11.7% to

down 11.7% to

Dividends

3.

Net tangible assets per ordinary security

4.

Name of entities (or group of entities)

Date control gained

Contribution of such entities to the reporting entity's profit/(loss) from ordinary activities before income tax during the period (where material)

Profit/(loss) from ordinary activities before income tax of the controlled entity (or group of entities) for the whole of the previous corresponding period(where material)

$(12,764,000)

$(12,764,000)

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

Comments

(7.10) cents

Savcor Group LimitedPreliminary final report

APPENDIX 4EPRELIMINARY FINAL REPORT

The loss for the consolidated entity after providing for income tax amounted to $12,764,000 (31 December 2012:$14,452,000).

Refer to market announcement dated 28 February 2014 for further commentary.

$ -

Revenues from ordinary activities

Results for announcement to the market

Loss from ordinary activities after tax attributable to the owners of Savcor Group Limited

Loss for the period attributable to the owners of Savcor Group Limited

Savcor Group Limited52 127 734 196Year ended 31 December 2013Year ended 31 December 2012

$ 5,497,000

Not applicable.

(1.63) centsReporting period Previous corresponding period

Control gained over entities

Net tangible assets

$ -

Total revenue continuing and discontinuing operations $ 87,228,000

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Savcor Group LimitedPreliminary final report

5.

Name of entities (or group of entities)

Date control lost

Contribution of such entities to the reporting entity's profit/(loss) from ordinary activities after income tax during the period (where material)

Profit/(loss) from ordinary activities after income tax of the controlled entity (or group of entities) whilst controlled during the whole of the previous corresponding period (where material)

6.

Current period

Previous corresponding period

7.

8.

Name of associate / joint venture

Cencorp CorporationSavcor-Contech Joint Venture LimitedVEC-Savcor Joint Venture

Group's aggregate share of associates and joint venture entities' profit/(loss) (where material)

$ -

$ -

Not applicable.

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

$(6,458,000)

Loss of control over entities

Dividends

periodcorresponding

Previous Previous

Current period periodcorresponding

Current period

$(3,505,000) $ -

$(3,725,000)

Not applicable.

Dividend reinvestment plans

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

$ - Income tax on operating activities

Details of associates and joint venture entities

percentage holdingContribution to profit/(loss)

(where material)Reporting entity's

0.00%50.00%50.00%

50.00%

38.50% 39.00%

Not applicable.

Profit/(loss) from ordinary activities before income tax

$ 3,000 $ 217,000

The following dividend or distribution plans are in operation:

$(6,458,000)

The last date(s) for receipt of election notices for the dividend or distribution plans:

$ -

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Savcor Group LimitedPreliminary final report

9.

10.

11.

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

The Preliminary Final Financial Statements of Savcor Group Limited for the year ended 31 December 2013 is attached.

Details of attachments (if any):

Audit qualification or review

Not applicable.

Details of audit/review dispute or qualification (if any):

Attachments

The Annual Report is currently being audited and a modified opinion relating to going concern is expected to be issued.

Foreign entities

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Savcor Group Limited

Preliminary Final Financial Statements - 31 December 2013

ABN 52 127 734 196

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Note 2013 2012$'000 $'000

2 5,497 4,568

3 (4,803) (4,956)164 391

(3,687) (3,208)(758) (1,251)

(1,295) (1,598)(2,882) (5,564)

(84) (503)(3,491) (2,758)

(11,339) (14,879)

(904) (3,075)

(12,243) (17,954)

4 (521) 3,502

(12,764) (14,452)

3,087 (151)

3,087 (151)

(9,677) (14,603)

(9,156) (18,105)(521) 3,502

(9,677) (14,603)

Foreign currency translationItems that may be reclassified subsequently to profit or loss

Total comprehensive income for the year is attributable to:Continuing operations

Loss after income tax expense from continuing operations

Profit/(loss) after income tax expense from discontinued operations

Loss after income tax expense for the year attributable to the owners of Savcor Group Limited

Income tax expense

Other income

Revenue from continuing operations

Share of losses of associate accounted for using the equity method

Finance costsOther expenses

Other comprehensive income

Savcor Group Limited

For the year ended 31 December 2013Statement of profit or loss and other comprehensive income

Consolidated

Cost of salesResearch and development expenses

Administration expenses

Expenses

Sales and marketing expenses

Discontinued operations

Loss before income tax expense from continuing operations

Other comprehensive income for the year, net of tax

Total comprehensive income for the year

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

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Note 2013 2012$'000 $'000

Savcor Group Limited

For the year ended 31 December 2013Statement of profit or loss and other comprehensive income

Consolidated

Cents Cents

12 (8.69) (12.74)12 (8.69) (12.74)

12 (0.37) 2.48 12 (0.37) 2.48

12 (9.06) (10.25)12 (9.06) (10.25)

Basic earnings per share

Diluted earnings per share

Diluted earnings per share

Earnings per share from discontinued operations attributable to the owners of Savcor Group LimitedBasic earnings per share

Earnings per share for loss attributable to the owners of Savcor Group Limited

Earnings per share from continuing operations attributable to the owners of Savcor Group Limited

Diluted earnings per share

Basic earnings per share

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

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Note 2013 2012$'000 $'000

5 244 1,323 7,106 20,952

368 1,913 62 44

7,780 24,232 6 15,914 -

23,694 24,232

594 1,852 7 6,168 8,481

100 2,655 358 2,331 20 1,506

7,240 16,825

30,934 41,057

3,186 12,126 8 25,521 26,370

2 1 314 2,228

29,023 40,725 9 11,365 -

40,388 40,725

163 210 27 95

190 305

40,578 41,030

(9,644) 27

273,584 273,584 (255,363) (258,456)(27,865) (15,101)

(9,644) 27

Reserves

Property, plant and equipmentIntangibles

Total liabilities

Liabilities

Total non-current assets

Current assets

Assets

Cash and cash equivalents

Assets of disposal groups classified as held for sale

Accumulated losses

Trade and other receivablesInventoriesIncome tax refund due

Deferred tax

Total current liabilities

Current liabilities

Non-current assets

Total current assets

ReceivablesInvestments accounted for using the equity method

Total equity/(deficiency)

Total non-current liabilities

Net assets/(liabilities)

Liabilities directly associated with assets classified as held for sale

Borrowings

Savcor Group LimitedStatement of financial positionAs at 31 December 2013

Consolidated

Trade and other payablesBorrowingsIncome taxProvisions

Total assets

Issued capitalEquity

Non-current liabilities

Provisions

The above statement of financial position should be read in conjunction with the accompanying notes

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Totalequity

$'000 $'000 $'000 $'000

273,584 (258,322) (649) 14,613

- - (14,452) (14,452)

- - - (151) - (151)

- - - (151) (14,452) (14,603)

- 17 - 17

- - 273,584 (258,456) (15,101) 27

Totaldeficiency

$'000 $'000 $'000 $'000

273,584 (258,456) (15,101) 27

- - (12,764) (12,764)

- - - 3,087 - 3,087

- - - 3,087 (12,764) (9,677)

- 6 - 6

- - 273,584 (255,363) (27,865) (9,644)

Transactions with owners in their capacity as owners:

Balance at 31 December 2013

Share-based payments

Issuedcapital

Other comprehensive income for the year, net of tax

Loss after income tax expense for the year

Total comprehensive income for the year

Balance at 1 January 2013

Savcor Group Limited

For the year ended 31 December 2013Statement of changes in equity

Other comprehensive income for the year, net of tax

Loss after income tax expense for the year

Total comprehensive income for the year

Share-based payments

Balance at 31 December 2012

Consolidated

Transactions with owners in their capacity as owners:

Reserves lossesAccumulated

capitalIssued

ReservesAccumulated

losses

ConsolidatedBalance at 1 January 2012

The above statement of changes in equity should be read in conjunction with the accompanying notes

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Note 2013 2012$'000 $'000

99,130 87,466 (95,482) (84,358)

11 - 126 97

(3,303) (3,289)19 360

501 276

(296) (627)223 185 500 97

427 (345)

11,215 23,350 (17,653) (22,365)

(29) (7)

(6,467) 978

(5,539) 909 918 (84)

(155) 93

5 (4,776) 918

Effects of exchange rate changes on cash

Proceeds from borrowings

Dividends received

Proceeds from loans to related partiesProceeds from sale of tangible and intangible assets

Income taxes refunded

Consolidated

Cash flows from operating activities

Payments to suppliers (inclusive of GST)Receipts from customers (inclusive of GST)

Interest receivedInterest and other finance costs paid

Net cash from operating activities

Savcor Group Limited

For the year ended 31 December 2013Statement of cash flows

Cash and cash equivalents at the beginning of the financial year

Cash and cash equivalents at the end of the financial year

Cash flows from investing activitiesPayments for tangible and intangible assets

Net cash from/(used in) financing activities

Repayment of borrowings

Net increase/(decrease) in cash and cash equivalents

Cash flows from financing activities

Net cash from/(used in) investing activities

Proceeds/repayment of finance lease principal

The above statement of cash flows should be read in conjunction with the accompanying notes

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2013 2012$'000 $'000

5,242 4,323

255 245

- - 5,497 4,568

From continuing operations

Other revenue

Savcor Group Limited

31 December 2013Notes to the financial statements

The directors have prepared the financial statements on a going concern basis, which contemplates the continuity ofnormal business activity and the realisation of assets and settlement of liabilities in the normal course of business.The consolidated entity had an excess of current liabilities over current assets as at 31 December 2013 of$16,694,000 (2012: $16,493,000) and recorded a loss after tax of $12,764,000 (2012: $14,452,000) for the yearended 31 December 2013.

Rendering of services

Revenue from continuing operations

Note 2. Revenue

Sales revenue

Interest

Consolidated

Note 1. Going concern

On 29 August 2013, the consolidated entity signed an updated facility agreement with the Australia and New ZealandBanking Group Limited (‘ANZ’) which included a condition requiring a reduction of debt of $10,000,000 by 1November 2013. This requirement was extended to 31 January 2014 and again to 31 March 2014.

TMT Partners have been appointed by the board to assist the consolidated entity to investigate various options tomeet the above mentioned requirement, including the potential sale of shares in Cencorp Corporation, potential saleof parts of the operating companies and potentially raising capital from a major shareholder/strategic partner.

On 1 November 2013, the consolidated entity announced that it had entered into an indicative Heads of Agreementwith a strategic partner in relation to its Advanced Rehabilitation Technology ('ART') services business. Theagreement includes a partial or complete sale of the ART business. Accordingly, this business has been classified asa discontinued operation in the financial statements.

The directors consider the going concern basis to be appropriate on the basis of the progress being made to dateaimed at securing sufficient funds to meet the requirement to pay down the ANZ debt.

However, should the consolidated entity's above mentioned strategies aimed at securing sufficient funds to achievethe required debt reduction be unsuccessful, there is significant uncertainty whether the consolidated entity wouldcontinue as a going concern and therefore whether it would realise its assets and extinguish liabilities in the normalcourse of business and at amounts stated in the financial statements.

The financial statements do not include any adjustment relating to the recoverability and classification of recordedasset amounts or to the amounts and classification of liabilities that might be necessary should the consolidated entitynot continue as going concern.

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Savcor Group Limited

31 December 2013Notes to the financial statements

2013 2012$'000 $'000

(3,725) (6,458)(1,078) 1,502

- - (4,803) (4,956)

2013 2012$'000 $'000

81,731 77,944 210 195 220 -

- - 82,161 78,139

(67,030) (61,559)(541) (658)

(2,441) (2,047)(9,554) (9,972)

(389) (88)(49) (61)

- - (80,004) (74,385)

- - 2,157 3,754 - - (2,678) (252)

- - (521) 3,502

Cost of sales

Administration expenses

Financial performance information

Revenue

Other expenses

Consolidated

Profit/(loss) after income tax expense from discontinued operations

On 1 November 2013, the consolidated entity announced that it had entered into an indicative Heads of Agreementwith a strategic partner in relation to its Advanced Rehabilitation Technology ('ART') services business including theconsolidated entity's 50% share of the VEC-Savcor Joint Venture. The agreement includes a partial or complete saleof the ART business. Accordingly, this business has been classified as a discontinued operation in the financialstatements.

Other income

Description

Consolidated

Share of loss of associate Impairment gain/(loss) of associate

Note 4. Discontinued operations

Total expenses

Research and development expenses

Share of profit in associates

Income tax expenseProfit before income tax expense

Finance costs

Sales and marketing expenses

Total revenue

Note 3. Share of losses of associate accounted for using the equity method

Share of losses of associate accounted for using the equity method

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Savcor Group Limited

31 December 2013Notes to the financial statements

2013 2012$'000 $'000

244 1,323

244 1,323

1,136 - (6,156) (405)

- - (4,776) 918

2013 2012$'000 $'000

1,136 - 10,714 - 1,784 -

374 - 217 -

1,651 - 10 - 28 -

- - 15,914 -

2013 2012$'000 $'000

6,168 8,473 - 8

- - 6,168 8,481

Cash at bank and in hand

The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the statement of cash flows as follows:

Balance as per statement of cash flows

Bank overdraft (note 8)

Reconciliation to cash and cash equivalents at the end of the financial year

Balances as aboveCash and cash equivalents - classified as held for sale (note 6)

Inventories

Consolidated

Trade and other receivables

Note 7. Non-current assets - investments accounted for using the equity method

Note 6. Current assets - assets of disposal groups classified as held for sale

Cash and cash equivalents

Investment in joint venture (Savcor-Contech JV Limited)Investment in associate (Cencorp Corporation)

Intangibles

Consolidated

Prepayments

Consolidated

Note 5. Current assets - cash and cash equivalents

Property, plant and equipment

Deferred tax asset

Investments accounted for using the equity method

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Savcor Group Limited

31 December 2013Notes to the financial statements

2013 2012$'000 $'000

6,156 405 19,341 25,613

- 344 24 8

- - 25,521 26,370

2013 2012$'000 $'000

5,097 - 1,489 - 4,418 -

361 -

- - 11,365 -

Note 11. Contingent liabilities

The consolidated entity has given bank guarantees as at 31 December 2013 of $2,157,000 (2012: $1,717,000) infavour of certain customers in support of agreed project deliverables and warranties. Additionally, the consolidatedentity has $389,000 (2012: $386,000) of bank guarantees in respect of the leases over premises in Australia andprovided letters of credit for $686,000 (2012: $830,000) to guarantee the overdraft facility in India.

Note 10. Equity - dividends

Note 8. Current liabilities - borrowings

Lease liabilityInsurance premium loans - unsecured

The consolidated entity was in breach of its banking covenants during the year, as conditions specified within a waiverletter provided by ANZ on 27 March 2013 regarding obtaining alternative financing were not met.

On 29 August 2013, the consolidated entity signed a new updated facility agreement which comprise of floating rateamortising and interchangeable cash advance facilities of $26,700,000, bank guarantee facilities of $4,900,000 andtransactional banking facilities. The facilities terminate on 1 September 2014 and are secured by a fixed and floatingcharge over the assets and undertakings of the borrowers Savcor Group Limited and its subsidiaries. The new facilityrequired a debt reduction of $10,000,000 by 1 November 2013. This requirement was extended to 31 January 2014and again to 31 March 2014.

As of the reporting date, the consolidated entity was in breach of its bank convents under the new updated facilityagreement pertaining to specific financial ratios. ANZ has provided a waiver on 25 February 2014.

Bank overdraftBank loans

Consolidated

Employees benefitsOther payables

Trade payables

Accrued expenses

Note 9. Current liabilities - liabilities directly associated with assets classified as held for sale

Consolidated

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

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Savcor Group Limited

31 December 2013Notes to the financial statements

2013 2012$'000 $'000

(12,243) (17,954)

Number Number

140,928,943 140,928,943

140,928,943 140,928,943

Cents Cents

(8.69) (12.74)(8.69) (12.74)

2013 2012$'000 $'000

(521) 3,502

Number Number

140,928,943 140,928,943

140,928,943 140,928,943

Cents Cents

(0.37) 2.48 (0.37) 2.48

Consolidated

Basic earnings per shareDiluted earnings per share

Weighted average number of ordinary shares used in calculating basic earnings per share

Loss after income tax attributable to the owners of Savcor Group LimitedEarnings per share from continuing operations

Note 12. Earnings per share

Weighted average number of ordinary shares used in calculating diluted earnings per share

Consolidated

Basic earnings per share

Profit/(loss) after income tax attributable to the owners of Savcor Group LimitedEarnings per share from discontinued operations

Weighted average number of ordinary shares used in calculating diluted earnings per share

Diluted earnings per share

Weighted average number of ordinary shares used in calculating basic earnings per share

10

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Savcor Group Limited

31 December 2013Notes to the financial statements

2013 2012$'000 $'000

(12,764) (14,452)

Number Number

140,928,943 140,928,943

140,928,943 140,928,943

Cents Cents

(9.06) (10.25)(9.06) (10.25)Diluted earnings per share

Earnings per share for lossLoss after income tax attributable to the owners of Savcor Group Limited

Consolidated

Note 12. Earnings per share (continued)

Weighted average number of ordinary shares used in calculating diluted earnings per share

Weighted average number of ordinary shares used in calculating basic earnings per share

Basic earnings per share

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