Repcol earnings enter positive territory

Balcatta-based debt collection company Repcol Ltd has reported a $3 million net profit for the 2008 financial year, helped by a tax refund and the restructuring of its business.

The company incurred a loss of $64 million in the previous financial year and is anticipating a break-even result in the 2009 financial year.

The positive result follows a significant restructuring of the company over the past year including board changes and selling its stake in Transpacific Debt Purchase Pty Ltd and Beyond Global Outsourcing Pvt Ltd.

In its preliminary report out today, Repcol reported a net profit of the year of $3.4 million, including results from discontinued operations, with basic earnings per share at 1.5 cents, up from the previous year's loss of 37.2c per share.

The net profit was on the back of an increase in revenue from $5.5 million to $5.7 million.

Below is Repcol's commentary on its results:

The Directors of Repcol Limited ("Repcol" or "the Company") are pleased to announce a net profit after tax of
$3.4m for the year ended 30 June 2008 compared to a net loss after tax of $64.3m in the previous corresponding
period.

Repcol completed significant restructuring during the year.

The Board was restructured in November 2007 with Mr. George Wilson appointed as Managing Director and Mr.
Hua Jer Liew appointed as Executive Director Finance and Operations. Mr. Jamie Cullen was also appointed to
the Board as a Non Executive Director in May 2008.

Repcol sold its shares in the jointly owned debt purchasing entity, Transpacific Debt Purchase Pty Limited, in
December 2007, thereby completely exiting the debt purchasing business.

Repcol also sold its shares in Byond Global Outsourcing Pvt Ltd (formerly named Repcol India Pvt Ltd) with this
transaction completing on 28 March 2008, effective from 1 December 2007.

In May 2008, the Company completed a pro rata offer of shares and options to shareholders raising
approximately $4.95m, including shares and options to lenders under convertible loan agreements.

Following the capital raising, the Company's securities were reinstated to official quotation on ASX in May 2008
after a fifteen month period of suspension from trading.

The loss reported for the year before tax, inclusive of restructuring and other unusual income and expenditure, of
$1.7m is slightly higher than the forecast loss of $1.5m previously advised in May 2008.

Income from Australian agency collections was down 4.3% at $3.2m compared to the previous corresponding
period, primarily due to some delays in commencing new contracts.

Repcol's wholly owned subsidiary, Repcol (WA) Pty Ltd, was appointed to the Western Australian State
Government Common Use Arrangement Panel for debt recovery services during the year.

Repcol (WA) Pty Ltd is one of four panel members appointed for an initial term of three years with two options to
extend by one year at the discretion of the State Government.

In April 2008, Repcol (WA) Pty Ltd won its first major contract under the panel with the Department of Housing
and Works to provide all of its collection services for vacated housing, housing bond assistance and general
debts.

Repcol (WA) Pty Ltd was also awarded a new contract with the Department of the Attorney General for
Metropolitan and Country Execution of Fines Enforcement Warrants for a two year term, with two options to
extend the term by one year exercisable at the discretion of the Department of the Attorney General.

The appointment to the panel and the new contracts provide a solid platform for Repcol to consolidate and grow
its agency commission business going forward.

All of Repcol's key management and collection support staff including experienced training staff, collection
administration departments, the compliance unit, technology experts, senior collection officers and collection
managers are now located in new and improved premises in Balcatta, Perth.

Other Income of $1.6m mainly comprised of interest income attributable to tax refunds received in 2008.

Employee benefits expense of $2.5m was 59.0% lower than the previous corresponding period, predominantly
due to the sale of Byond Global Outsourcing Pvt Ltd and other restructuring activity.

The share based expense in the current year is a credit of $330k compared to an expense of $467k in the
previous corresponding period due to the reversal of option expenses on the resignation of various Directors.

The decrease in all other expenses reflects the restructuring undertaken. Due to the sale of the debt ledgers in
2007, there were no fair value adjustment to purchased debt ledgers or impairment losses during the financial
year.

The income tax credit of $5.0m is due to the refund of tax paid in prior years. Repcol's forecast collections from
its purchase debt ledgers were previously overestimated (with the benefit of hindsight) and the tax amortisation
claimed on the ledgers was lower than required.

Repcol is currently forecasting a break even result for the 2009 financial year as operating profits from the debt
collection business and interest income will be offset by corporate overheads.

In addition to growing the agency commission business to recoup corporate overheads, the Board is now actively
seeking investment opportunities that will enhance shareholder worth. Whilst the Board has a very open mind to
potential new acquisitions, it is unlikely to consider businesses with less than $5m pre-tax profit or with limited
expansion (national or international) potential. Whilst some opportunities have been identified and are being
considered, no detailed due diligence has been undertaken at this stage.