Announcement PDF Pure Foods Tasmania Limited ABN 13 112 682 158 Annual Report - 30 June 2026 Pure Foods Tasmania Limited Directors' report 30 June 2026 1 Your Directors present their report on the consolidated entity (referred to herein as the Group) consisting of Pure Foods Tasmania Limited and its controlled entities for the financial year ended 30 June 2026. Directors The following persons were Directors of the Group during or since the end of the financial year up to the date of this report: Malcolm McAully Executive Chairman Robert Knight Chief Executive Officer / Managing Director Ken Fleming Non-executive Director Company secretary The company secretary for the year ended 30 June 2026 was Justin Hill. Ashlee Lambert was appointed as company secretary on 1 July 2026 following the resignation of Justin Hill as company secretary on 1 July 2026. Mr Hill remains with the company as legal counsel. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. Indemnifying officers or auditor During the financial year, the Group paid a premium in respect of a contract to insure the directors and executives of the Group against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The Group has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or auditor of the Group or of any related corporate against a liability incurred as an officer or auditor. Proceedings on behalf of the group No person has applied for leave of court to bring proceedings on behalf of the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those proceedings. The Group was not a party to any such proceedings during the year. Non-audit services The Board of Directors is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the services provided did not compromise the external auditor’s independence. Auditor's independence declaration The lead auditor’s independence declaration for the year ended 30 June 2026 has been received and can be found on page 8 of the financial report. Pure Foods Tasmania Limited Directors' report 30 June 2026 2 Information relating to directors and group secretary Malcolm McAully, Executive Chairman Malcolm McAully is an experienced company director having held roles over a diverse range of industry backgrounds such as financial services, energy generation, waste management, agribusiness, technology manufacturing, human resource management and food manufacturing. Malcolm was the Chairman of ASX listed Pinnacle VRB Ltd (ASX: PCE) from 2004 to 2005, and remained Chairman when the company (following an acquisition) changed its name to Cougar Energy Limited (ASX: CXY) until 2013 when he resigned. Malcolm is also the Chairman of Chaucer Energy Limited and several privately owned companies. Malcolm has held various executive management positions, including National Manager for MLC Life when owned by the Lend Lease Group. He holds a Master of Business and qualifications in accounting, business management, mediation, turn around management and GAICD. Malcolm’s primary focus is on strategic development, financial performance, corporate governance and investor relations. Robert Knight, Chief Executive Officer / Managing Director (Appointed 1 July 2026) Robert Knight was appointed Chief Executive Officer and Managing Director of Pure Foods Tasmania on 1 July 2026, marking an important new leadership phase for the Company. Robert brings broad commercial experience across sales, marketing, operations, capital markets and business ownership. He has founded, operated and successfully exited businesses across a range of sectors, giving him practical experience in building teams, improving performance and driving commercial outcomes. Robert first became involved with Pure Foods Tasmania as an investor and shareholder before joining the Board in October 2024 and later stepping into an executive role. His appointment as CEO and Managing Director reflects his strong commitment to the Company and his belief in the long-term opportunity. Robert is in the final stages of completing his MBA through the University of Melbourne and has more than 10 years’ experience investing in ASX-listed and US-listed companies. As CEO and Managing Director, Robert is focused on building a stronger, more commercially disciplined Pure Foods Tasmania and delivering long-term value for shareholders. Ken Fleming, Non-Executive Director Ken Fleming has extensive experience in capital markets and has held senior roles at Deutsche Bank (Director), James Capel Australia and was Head of Research at Tricom Equities. He has also worked in the Australian public service (Canberra) and held a senior management role (Acting Director), before joining KPMG in Melbourne. After moving to Hobart, Ken accepted a role as a lecturer in Finance at the University of Tasmania and later became a Director of Tasmanian Oyster Company (nee Shellfish Culture) and TasmaNet (ICT company). Ken is also a Director of Castray Capital (corporate advisory business) in addition to his role as a non-executive director of PFT. Ken holds an honors degree in economics and post graduate qualifications in economics and finance and is also a Fellow of the Chartered Institute for Securities and Investment (CISI). Pure Foods Tasmania Limited Directors' report 30 June 2026 3 Justin Hill, Company Secretary (Resigned 1 July 2026) Justin Hill is a Principal at Page Seager Lawyers – the largest law practice in Tasmania. Justin advises clients in several key industry sectors, including agribusiness, financial services, energy, and the not-for-profit sector. He specialises in mergers and acquisitions, governance and corporate structures and restructures. Justin also has significant experience in finance (including derivative transactions) and advising on raising capital for companies by way of equity and debt. Justin has a first-class honours degree in Commerce, a Master’s in Law from the University of Melbourne and a Graduate Diploma in Applied Finance and Investment. Before joining Page Seager as a Partner/Principal, Justin worked as in-house counsel for the investment banking division of Deutsche Bank in Sydney. Prior to working with Deutsche Bank, Justin was principal counsel in the institutional markets and investment division of National Australia Bank. Justin also practised for several years in the mergers and acquisitions team of Mallesons Stephen Jaques (now called Mallesons). Ashlee Lambert, Company Secretary (Appointed 1 July 2026) Mrs Lambert holds degrees in Law and Psychology, together with a Certificate IV in Bookkeeping and Accounting. She is a legal practitioner admitted to the Supreme Court of Victoria and practised law in Victoria for over five years. She brings extensive experience across legal, governance and regulatory compliance, with a strong background in corporate administration. Meetings of directors During the financial year, 10 meetings of directors (including committees of directors) were held. Attendances by each director during the year were as follows: Directors’ meetings Number eligible to attend Number attended Malcolm McAully 10 10 Robert Knight 10 10 Ken Fleming 10 10 Remuneration of Directors and Senior Management Information about the remuneration of Directors and senior management is set out in the Remuneration Report. Review of operations and principal activities During the financial year, the principal activities of the Group comprised the manufacture, marketing, distribution and sale of premium food products under a portfolio of branded food businesses. The Group's operations include smoked seafood, pate, gourmet foods, ice cream and other value-added food products, with manufacturing facilities located in Tasmania and distribution throughout Australia. During the year, the Group continued to focus on expanding retail and wholesale distribution, improving manufacturing utilisation, developing new products, and integrating acquired brands and businesses. The Group also pursued strategic growth initiatives aimed at increasing scale, improving margins and enhancing shareholder value. There were no significant changes in the nature of the Group's principal activities during the year. Operating results The loss after tax of the Group for the financial year attributable to the members of Pure Foods Tasmania Limited was $8.6m (2025: $2.8m). Material business risks The Board has identified the following material business risks that could adversely affect the achievement of the Group’s financial performance and position in future periods, together with how the Group seeks to manage them. Pure Foods Tasmania Limited Directors' report 30 June 2026 4 Risk Description and how it is managed Funding, liquidity and covenant compliance The Group has a net current liability position and relies on continued financier support and compliance with applicable lending covenants. Managed through cash-flow forecasting, active working-capital management, cost-control and profitability initiatives, and ongoing lender engagement. Sustained operating losses and asset recoverability Continued losses could affect the recoverability of non-financial assets and the remaining deferred tax asset. Managed through the profitability-improvement programme and regular impairment and recoverability assessments. Customer concentration A significant proportion of revenue may be derived from a small number of major retail customers. Managed by diversifying channels, brands and the customer base. Input costs and margin pressure Exposure to raw-material, energy and freight cost movements. Managed through pricing, procurement and value-chain initiatives. Food safety and regulatory compliance Product quality, safety or labelling failures could result in recalls or reputational damage. Managed through quality systems, accreditation and compliance programmes. Key person and integration risk Dependence on key management personnel and the integration of acquired brands. Managed through retention, governance and integration planning. State of affairs and likely developments In the opinion of the Directors there were no significant changes in the state of affairs of the Group and its controlled entities that occurred during the financial year under review not otherwise disclosed in this report or the accompanying financial report. Reference should be made to the subsequent events note for changes in the state of affairs after balance date. Significant changes in the state of affairs There were no significant changes in the state of affairs of the company during the financial year. Events subsequent to balance date Other than the events outlined within note 1(b) of the financial statements, the Board is not aware of any matter or circumstance not otherwise dealt within these financial statements that has significantly or may significantly affect the operation of the Group, the results of those operations, or the state of affairs of the Group in subsequent financial years. Remuneration report The remuneration report details the key management personnel remuneration arrangements for the company, in accordance with the requirements of the Corporations Act 2001 and its Regulations. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors. The remuneration report is set out under the following main headings: ● Remuneration Policy ● Remuneration Expense Details for the Year Ended 30 June 2026 ● KMP Shareholdings Pure Foods Tasmania Limited Directors' report 30 June 2026 5 Remuneration Policy The remuneration policy of the Group has been designed to align key management personnel (KMP) objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific long-term incentives based on key performance areas affecting the Group’s financial results. The Board of the Group believes the remuneration policy to be appropriate and effective in its ability to attract and retain high quality KMP to run and manage the Group, as well as create goal congruence between Directors, executives, and shareholders. The Board’s policy for determining the nature and amount of remuneration for KMP of the Group is based on the following: ● The remuneration policy is to be developed by the Board after professional advice is sought from independent external consultants. ● All KMP receive a base salary (which is based on factors such as length of service and experience), superannuation, fringe benefits, options, and performance incentives. ● Performance incentives are generally only paid once predetermined key performance indicators (KPIs) have been met. ● Incentives paid in the form of options or rights are intended to align the interests of the Directors and Group with those of the shareholders. In this regard, KMP are prohibited from limiting risk attached to those instruments by use of derivatives or other means. ● The Board reviews KMP packages annually by reference to the Group's performance, executive performance, and comparable information from industry sectors. The performance of KMP is measured against criteria agreed biannually with each executive and is based predominantly on the forecast growth of the Group’s profits and shareholders’ value. All bonuses and incentives must be linked to predetermined performance criteria. The Board may, however, exercise its discretion in relation to approving incentives, bonuses, and options. Any change must be justified by reference to measurable performance criteria. The policy is designed to attract the highest calibre of executives and reward them for performance results leading to long-term growth in shareholder wealth. KMP receive, at a minimum, a superannuation guarantee contribution required by the government, which, during the 2026 financial year was 12% of the individual’s average weekly ordinary time earnings (AWOTE). Some individuals, however, may choose to sacrifice part of their salary to increase payments towards superannuation. All remuneration paid to KMP is valued at the cost to the Group and expensed. Performance-based Remuneration KPIs are set annually, with a certain level of consultation with KMP. The measures are specifically tailored to the area each individual is involved in and has a level of control over. The KPIs target areas the Board believes hold greater potential for Group expansion and profit, covering financial and non-financial as well as short and long-term goals. The level set for each KPI is based on budgeted figures for the Group and respective industry standards. Performance Conditions Linked to Remuneration The Group seeks to emphasise reward incentives for results and continued commitment to the Group through the provision of various cash bonus reward schemes, specifically the incorporation of incentive payments based on the achievement of revenue targets, return on equity ratios and continued employment with the Group. Employment Details of Key Management Personnel The term Key Management Personnel refers to those persons having the authority and responsibility for planning, directing, and controlling activities of the Group, directly or indirectly, and includes any Director of the Group (whether executive or otherwise). The KMP of the Group for the year ended 30 June 2026 were: Key Management Personnel Role Director Appointment Date Malcolm McAully Executive Chairman 1 September 2017 Ken Fleming Non-executive Director 29 July 2015 Robert Knight Chief Executive Officer / Managing Director 1 July 2026 Pure Foods Tasmania Limited Directors' report 30 June 2026 6 Remuneration Expense Details for the Year Ended 30 June 2026 Short-term benefits Post- employment benefits Equity-settled share-based payments Total Salary, fees and leave Profit share and bonuses Non- monetary Pension and superannuation Shares/units + Options/rights KMP Year $ $ $ $ $ $ Malcolm McAully 2026 75,000 - - 9,000 - 84,000 2025 50,000 - - 5,750 - 55,750 Michael Cooper 2026 - - - - - - (resigned 14/08/2024) 2025 78,057 - - 6,095 - 84,152 Ken Fleming 2026 36,000 - - 4,320 - 40,320 2025 36,000 - - 4,140 - 40,140 Robert Knight 2026 36,000 - - 4,320 - 40,320 2025 24,000 - - 2,760 - 26,760 Phillip Excell 2026 - - - - - - (resigned 17/09/2024) 2025 103,780 - - 6,187 - 109,967 Total 2026 147,000 - - 17,640 - 164,640 Total 2025 291,837 - - 24,932 - 316,769 Securities Received that are not Performance-Related No members of KMP are entitled to receive securities that are not performance-based as part of their remuneration package. Pure Foods Tasmania Limited Directors' report 30 June 2026 7 KMP Shareholdings Balance at Beginning of the Year Granted as Remuneration During the Year Issued on Exercise of Options During the Year Purchases During the Year Balance at End of Year Malcolm McAully 2,880,404 - - 4,150,000 7,030,404 Ken Fleming 3,294,475 - - 1,500,000 4,794,475 Robert Knight 13,369,864 - - 25,000,000 38,369,864 Other Equity-Related KMP Transactions There have been no other transactions involving equity instruments apart from those described in the tables above relating to options, rights, and shareholdings. Other Transactions with KMP and/or their Related Parties There were no other transactions conducted between the Group and KMP or their related parties, apart from those disclosed above relating to equity, compensation, and loans, that were conducted other than in accordance with normal employee, customer, or supplier relationships on terms no more favourable than those reasonably expected under arm’s length dealings with unrelated persons. Auditor Wise Lord & Ferguson continues in office in accordance with section 327 of the Corporations Act 2001. This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Malcolm McAully Director 30 September 2026 Auditor’s Independence Declaration to the Members of Pure Foods Tasmania Limited and its controlled entities In relation to our audit of the consolidated financial report of Pure Foods Tasmania Limited for the financial year ended 30 June 2026, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements in accordance with the Corporations Act 2001, the ethical requirements of the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and Ethical Standards Board (the Code) that are relevant to audits of the financial report of public interest entities in Australia, or any applicable code of professional conduct. WISE LORD & FERGUSON REBECCA MEREDITH Partner Dated: 30 September 2026 Pure Foods Tasmania Limited Contents 30 June 2026 9 Statement of profit or loss and other comprehensive income 10 Statement of financial position 11 Statement of changes in equity 12 Statement of cash flows 13 Notes to the financial statements 14 Consolidated entity disclosure statement 39 Directors' declaration 40 Independent auditor's report to the members of Pure Foods Tasmania Limited 41 Shareholder information 46 General information The financial statements cover Pure Foods Tasmania Limited as a consolidated group. The financial statements are presented in Australian dollars, which is Pure Foods Tasmania Limited's functional and presentation currency. Pure Foods Tasmania Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business 100 Mornington Rd, Mornington TAS 7018 100 Mornington Rd, Mornington TAS 7018 A description of the nature of the company's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 30 September 2026. The directors have the power to amend and reissue the financial statements. Pure Foods Tasmania Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2026 Note 2026 2025 $ $ The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 10 Total revenue from continuing operations 4 5,051,597 5,168,366 Other income 4 184,404 218,512 Expenses Cost of sales (4,212,141) (4,403,001) Depreciation and amortisation expense (772,645) (1,006,054) Employment expenses (1,279,504) (1,102,695) Finance costs (553,042) (647,671) Other expenses (2,719,277) (1,890,671) Loss before income tax (expense)/benefit (4,300,608) (3,663,214) Income tax (expense)/benefit 5 (4,338,416) 853,113 Loss after income tax (expense)/benefit for the year attributable to the owners of Pure Foods Tasmania Limited (8,639,024) (2,810,101) Other comprehensive income for the year, net of tax - - Total comprehensive income for the year attributable to the owners of Pure Foods Tasmania Limited (8,639,024) (2,810,101) Cents Cents Basic earnings per share 29 (3.23) (2.13) Diluted earnings per share 29 (3.23) (2.13) Pure Foods Tasmania Limited Statement of financial position As at 30 June 2026 Note 2026 2025 $ $ The above statement of financial position should be read in conjunction with the accompanying notes 11 Assets Current assets Cash and cash equivalents 6 (109,273) 1,091,530 Trade and other receivables 7 538,258 355,945 Inventories 8 1,195,049 1,026,810 Other assets 9 155,143 186,924 Total current assets 1,779,177 2,661,209 Non-current assets Property, plant and equipment 10 4,827,837 5,609,248 Right-of-use assets 11 1,329,858 18,747 Intangibles 12 36,280 1,286,900 Deferred tax 13 447,129 4,982,029 Total non-current assets 6,641,104 11,896,924 Total assets 8,420,281 14,558,133 Liabilities Current liabilities Trade and other payables 14 1,206,726 1,470,857 Borrowings 15 1,312,829 5,100,298 Lease liabilities 16 269,133 20,259 Employee provisions 17 124,355 94,340 Total current liabilities 2,913,043 6,685,754 Non-current liabilities Borrowings 15 2,473,006 703,708 Lease liabilities 18 1,063,151 - Deferred tax liability 19 667,400 868,574 Employee provisions 17 25,144 43,619 Total non-current liabilities 4,228,701 1,615,901 Total liabilities 7,141,744 8,301,655 Net assets 1,278,537 6,256,478 Equity Issued capital 20 23,386,324 19,725,241 Accumulated losses (22,107,787) (13,468,763) Total equity 1,278,537 6,256,478 Pure Foods Tasmania Limited Statement of changes in equity For the year ended 30 June 2026 The above statement of changes in equity should be read in conjunction with the accompanying notes 12 Issued Retained capital profits Total equity $ $ $ Balance at 1 July 2024 19,191,163 (10,658,662) 8,532,501 Loss after income tax benefit for the year - (2,810,101) (2,810,101) Other comprehensive income for the year, net of tax - - - Total comprehensive income for the year - (2,810,101) (2,810,101) Proceeds from issued share capital 568,156 - 568,156 Share issue costs (34,078) - (34,078) Balance at 30 June 2025 19,725,241 (13,468,763) 6,256,478 Issued Retained capital profits Total equity $ $ $ Balance at 1 July 2025 19,725,241 (13,468,763) 6,256,478 Loss after income tax expense for the year - (8,639,024) (8,639,024) Other comprehensive income for the year, net of tax - - - Total comprehensive income for the year - (8,639,024) (8,639,024) Proceeds from issued share capital 3,680,818 - 3,680,818 Share issue costs (19,735) - (19,735) Balance at 30 June 2026 23,386,324 (22,107,787) 1,278,537 Pure Foods Tasmania Limited Statement of cash flows For the year ended 30 June 2026 Note 2026 2025 $ $ The above statement of cash flows should be read in conjunction with the accompanying notes 13 Cash flows from operating activities Receipts from customers (inclusive of GST) 5,036,827 5,859,974 Payments to suppliers (inclusive of GST) (7,012,863) (6,604,915) Interest received 16,861 38,190 Interest paid (622,780) (542,258) Income tax payments - (37,935) Net cash used in operating activities (2,581,955) (1,286,944) Cash flows from investing activities Payments for property, plant and equipment (12,486) - Proceeds from sale of property, plant and equipment - 110,851 Net cash from/(used in) investing activities (12,486) 110,851 Cash flows from financing activities Net proceeds from issue of shares 20 3,661,083 534,078 Net (decrease)/increase in borrowings (2,018,171) 1,008,741 Principal elements for lease payments (249,274) (353,857) Net cash from financing activities 1,393,638 1,188,962 Net increase/(decrease) in cash and cash equivalents (1,200,803) 12,869 Cash and cash equivalents at the beginning of the financial year 1,091,530 1,078,661 Cash and cash equivalents at the end of the financial year 6 (109,273) 1,091,530 Pure Foods Tasmania Limited Notes to the financial statements 30 June 2026 14 Note 1. Material accounting policy information (a) General information The consolidated financial statements and notes represent those of Pure Foods Tasmania Limited and its Controlled Entities. Pure Foods Tasmania is a company incorporated in Australia, and whose shares are publicly traded on the Australian Securities Exchange (ASX). The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the company. (b) Going concern The financial statements of the Group have been prepared on the assumption that the Group will continue as a going concern. Directors' conclusion Notwithstanding the material uncertainty disclosed below, the Directors believe there are reasonable grounds to expect that the Group will be able to continue as a going concern, having regard to the commercial progress achieved during FY26, the level of one-off and investment expenditure incurred during the period, anticipated research and development incentives, the operational initiatives implemented, increased utilisation of the Group's manufacturing assets, forecast improvements in operating performance and the commercial opportunities currently being progressed. Accordingly, the Directors consider it appropriate to prepare the financial report on a going concern basis. The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts, or to the amounts and classification of liabilities, that might be necessary should the Group not continue as a going concern. Financial position and performance In concluding that the going concern basis of preparation is appropriate, the Directors have considered the following events and conditions which, individually and collectively, indicate that a material uncertainty exists. Key financial indicators at 30 June 2026 are summarised below. Indicator 30 June 2026 30 June 2025 Loss after income tax $8.6m $2.8m Net cash used in operating activities $2.6m $1.3m Cash and cash equivalents ($0.1) $1.1m Net current liabilities $1.1m $4.0m Total borrowings $3.8m $5.8m Net assets $1.3m $6.3m Accumulated losses $22.1m $13.5m Pure Foods Tasmania Limited Notes to the financial statements 30 June 2026 Note 1. Material accounting policy information (continued) 15 The Group incurred a loss after income tax of $8.6 million (2025: $2.8 million) and net operating cash outflows of $2.6 million (2025: $1.3 million). Revenue from continuing operations was $5.1 million, a decrease of 2% on the prior year. Operating cash outflows were funded principally by $3.7 million of equity raised during the year and the use of the Group's overdraft facility. The loss includes non-cash items of approximately $6.6 million, principally the derecognition of deferred tax assets of $4.8 million, goodwill impairment of $1.0 million and depreciation and amortisation of $0.8 million. The derecognition of deferred tax assets reflects the Directors' assessment that given the size of the losses, it is not currently probable that sufficient future taxable profits will be available against which those assets can be utilised. At 30 June 2026 the Group had drawn $0.2 million of its $0.5 million overdraft facility, with current liabilities exceeding current assets by $1.1 million. The Directors' cash flow forecast indicates that, even after allowing for the assumptions described below, the Group's funding requirements will exceed its existing overdraft facility from approximately February 2027. The Group's existing banking facilities are therefore not sufficient on their own to fund its operations for the forecast period, and additional funding, which has not been committed at the date of this report, will be required. The Group did not comply with the EBITDA covenant under its Commonwealth Bank of Australia (CBA) facilities for the quarter ended 30 June 2026, as described further below. A breach for a second consecutive quarter would entitle CBA to exercise its rights under the facility agreement, which could result in notice to repay all facilities on 90 days' notice. Since 30 June 2026, trade creditor balances and other liabilities, including superannuation obligations, have increased and the ageing of trade creditors has deteriorated. The Group is agreeing structured payment arrangements with a number of suppliers. The Group's cashflow forecast relies on receipt of a research and development (R&D) tax incentive for the 2025 and 2026 financi