2022 Annual Report
A2B Australia Limited
ABN 99 001 958 390
a
Contents
Executive Chairman Report
Board of Directors
Corporate Governance
Operating and Financial Review
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Consolidated Financial Statements
Shareholder Information
Corporate Directory
2
5
6
8
17
21
34
35
90
92
Our Values
Caring
Collaborative
Accountable
Authentic
Progressive
A2B Annual Report 2022
Our Vision
A leading provider of personal transportation services
and solutions, committed to the success of our
customers, our people and our stakeholders.
Our Strategy
Grow Fleet
Enhance Driver and
Passenger experience
Improve Operator
acquisition and retention
Optimise pricing
Increase Fares
Upgrade our mobility
technology platforms
Grow share of payments
Enhance our corporate
offering
Expand into relevant
adjacent markets
Specialist mobility
Deliveries
Premium service
Our Purpose
Delivering a safe, reliable, sustainable
personalised transportation experience.
1
Executive
Chairman Report
Dear Shareholders,
Having joined A2B in March 2022, I’m delighted to write to you in my
capacity as Executive Chairman and present the 2022 Annual Report.
I joined A2B to facilitate an organisational reset. With a
track record of successful turnarounds and a passion for
creating growing and sustainable businesses, I was eager
to support the A2B team given the quality of the business’
underlying assets.
Partnering with the executives, we kicked off a strategy
and culture review – or as I like to call it, 'Head and
Heart'. During the Head and Heart review, we created
the new A2B Framework. The framework includes our
Organisational Vision, Purpose and Values.
Landscape/need for change:
A2B is a business with significant potential. To this end,
change has already quickly begun, with new leadership
appointed, a strategic review undertaken, and a cultural
reset implemented that is designed to realign and focus
business priorities while reinvigorating the workforce.
First, a few words on the operating environment and
the regulatory constraints within which A2B exists. The
ongoing pandemic has hit the business hard. Government
restrictions and consumer hesitancy have restricted
personal movement which has significantly impacted
profitability, with FY22 recording a loss.
Taxis are a heavily regulated industry with the regulations
varying by State, with some States more progressive
than others. Historically, these regulations have favoured
rideshare, although we remain hopeful that the playing
field will continue to equalise as NSW looks to deregulate.
The change journey:
At the outset of this journey, I spent much time listening
to various stakeholder groups, including employees and
learning about the business.
A critical element in creating a growing and sustainable
business is having a strong team and a supportive
culture. We have focussed heavily on this. Our new
values, created by our people for our people, have
been enthusiastically embraced across our business
over recent months and have informed our strategic
reset and cultural transformation.
Redefining our vision and purpose provided the clarity
needed to finalise our strategic review. Having assessed
our competitive position and performance, our
approach, certainly for the near term, is on being
'BETTER BEFORE BIGGER'.
As part of being BETTER BEFORE BIGGER, we will defend
and grow the core business by focussing on growing the
fleet, the number of trips and enhancing our corporate
offering. At the same time, we have stopped work on
all non-core and loss-making aspects of the business.
A2B now has seven core strategic initiatives - down
from 189 in the previous strategy.
This strategic clarity led us to move forward with two
operating divisions – B2C, housing 13cabs and Silver
Service; and B2B, accountable for our payments products,
including Cabcharge and our MTI dispatch technology.
Product and Technology, along with other corporate
functions, support the operating divisions.
2
A2B Annual Report 2022
"As part of being BETTER BEFORE
BIGGER, we will defend and grow
the core business by focussing
on growing the fleet, the number
of trips and enhancing our
corporate offering."
We have applied a rigorous cost reduction lens to our
business, requiring some difficult decisions. We have
exited some businesses (including Flamingo Payments
and Yellow Couriers) and reduced our personnel expenses
by 15%, which unfortunately meant we had to part
company with some valued colleagues. However, these
difficult decisions were necessary to ensure future profit
sustainability and growth. With these changes, A2B now
has an appropriate cost base that secures our ability to
continue delivering essential community services should
there be more pandemic-related restrictions on personal
movement. We are also well positioned to pivot more
quickly to adjacencies.
Board Update:
Recognising the significant changes the Company has made,
and in line with the cost reductions implemented across the
business, the Board agreed to reduce Director fees by 15%
and decrease the number of Directors by one – taking the
total number of non-executive Directors to three.
With the right strategy and leadership now in place,
David Grant has informed A2B of his intention to
step down from the Board, pending the appointment
of a Non-executive Director who will also Chair the
Company’s Audit and Risk Committee. A search process
has commenced, and to facilitate an orderly transition
David has offered to remain on the Board until an
appointment is made. The Board thanks David for his
highly valuable contribution to A2B and wishes him well
for the future.
We have also been actively looking for a new chief
executive, with the intention that within six months of
their appointment, I will transition to the Board's non-
executive Chair.
However, to facilitate the continued successful delivery
of the new growth strategy and ensure stability for the
business, the Board has postponed the current CEO
search process until early 2023 and requested me to stay
on as as full time Executive Chairman until 30 June 2023.
3
Executive Chairman Report (continued)
Executive Remuneration:
The Board has reviewed executives' incentive arrangements
and implemented a new structure aligning the vesting
metrics of the long-term equity scheme with those
previously approved by shareholders for my remuneration
at the April 2022 EGM. These arrangements are essential
in retaining and rewarding key talent and ensuring an
aligned team focus to deliver value to shareholders through
successfully executing the new strategic goals. Stronger
focus and performance will drive a return to both growth,
profitability and returns for shareholders.
Releasing the value of our property
portfolio:
After extensive internal consideration of our property
strategy, including the operational importance of
property location and ownership both now and in the
future, A2B appointed MA Financial to undertake an
independent strategic property review.
As part of the process, MA Financial appointed an
independent valuer, JLL, to value the three properties
owned by A2B, namely two in Alexandria, Sydney and
one in Oakleigh, Victoria. JLL valued the property
portfolio between $102 million and $114 million gross value,
with our most valuable property being the Company’s
headquarters at 9-13 O'Riordan St, Alexandria.
After much consideration, the Board has decided that
owning or remaining in the current sites in the long term,
is not the right solution for the business.
MA Financial concluded that selling the properties
would optimise shareholder value and facilitate a
cash return to shareholders. The Board has endorsed
this recommendation. Following a successful tender
bid, Colliers has been appointed as the sales agent to
manage the sale of both properties in NSW. We have
moved quickly, mindful of market volatility with a target
of completing by the end of 2022, subject to market
conditions.
We intend to distribute the net sale proceeds to
shareholders via a fully franked special dividend when the
sale is complete. Net sale proceeds will include deductions
for taxes, sale costs, and any necessary debt repayments
and will take account of the Company's ongoing working
capital requirements.
Positive Outlook:
While it’s still early days, the operational improvements
we have achieved over the past few months demonstrate
that our strategy is gaining traction and delivering results.
Our people are re-energised, collaborating and taking
accountability for delivering outcomes.
Key growth indicators for our business continue to improve.
The affiliated fleet has grown to 7,066, and fares
processed increased to $71.5m in July. Our performance
is gradually returning to pre-pandemic levels. Regulatory
equalisation with rideshare will accelerate these results.
With the recent announcement of fare increases in
some States and average fares being higher than pre-
pandemic, we are hopeful this will aid growth in the fleet.
This is welcome news as Taxi fares have remained static
for a significant time, meaning drivers have had to work
longer hours to absorb increases in operating costs, such
as fuel, tolls and cost of living. We are, however, mindful
that diminished immigration and full employment will
serve as an impediment to rapid growth.
In summary, we are a well-positioned business, and
with operating conditions picking up due to our recent
actions and a gradual improvement in the market, we are
confident we will return to growth, with a positive EBITDA
and a solid EBITDA margin expected in FY23.
Thank you:
In closing, on behalf of the Board, I would like to thank the
A2B team for their drive, dedication and continued focus
as we complete our reset. Thanks also to the drivers and
operators delivering a critical service to our communities.
Finally, we are grateful to you, our shareholders, for your
ongoing support as we strive to reach our full potential.
A2B has all the ingredients to be a growing and
sustainable business that delivers value to all its
stakeholders. I look forward to providing you with
regular updates on the progress of our plans.
Yours sincerely,
Mark Bayliss
Executive Chairman
4
A2B Annual Report 2022
Board of Directors
Mark Bayliss
Executive Chairman
Mark was appointed as Executive Chairman of the Company on 7 March 2022. Mark was most recently
Executive Chairman and then CEO of ASX listed business technology group, CSG Ltd. His previous
executive roles include being CEO of Grays eCommerce Group Limited, and CEO of Quick Service
Restaurants Holdings, a national fast food chain of 630 restaurants. Mark has spent four years as a
Partner at Anchorage Capital, a private equity fund specialising in the turnaround of underperforming
businesses. Mark has also performed roles as Executive Chairman of Burger King (NZ), and as Chief
Financial Officer of Australian Discount Retail and Chief Financial Officer of Fairfax Media Limited.
Mark has a Bachelor of Science from the London School of Economics and is a member of the Institute
of Chartered Accountants in England and Wales and the Australian Institute of Company Directors.
David Grant
Independent Non‑Executive Director
David was appointed as a Director of A2B on 2 June 2020. He is an Independent Non-Executive Director,
Chairman of the Audit and Risk Committee and a member of the Remuneration and Nominations
Committee. David is an experienced Non-executive Director and is currently on the Boards of Event
Hospitality and Entertainment Limited, Retail Food Group Limited and The Reject Shop Limited. With
broad financial and commercial experience David has held various senior executive roles including Group
M&A Director at Goodman Fielder Limited and Chief Financial Officer of Iluka Resources Limited.
David has a Bachelor of Commerce from the University of NSW, is a graduate of the Australian Institute
of Company Directors and a member of Chartered Accountants Australia & New Zealand.
Jennifer Horrigan
Independent Non‑Executive Director
Jennifer was appointed as a Director in September 2020. She is Chair of the Remuneration and
Nominations Committee and a member of the Audit and Risk Committee. Jennifer brings 25 years’
experience across investment banking, financial communications and investor relations. Formerly
the Chief Operating Officer in Australia of the independent investment bank Greenhill & Co, Jennifer
has extensive experience in enterprise management, including the supervision and management of
compliance, HR and financial management. Jennifer is also Chairman of Dexus Asset Management
Limited, and a Non-executive Director of QV Equities and Yarra Funds Management Limited.
Jennifer’s qualifications include Bachelor of Business (QUT), Graduate Diploma in Applied Finance (FINSIA)
and Graduate Diploma in Management (AGSM).
Clifford Rosenberg
Independent Non‑Executive Director
Clifford was appointed as a Director in August 2017. He is a member of the Audit and Risk Committee
and the Remuneration and Nominations Committee. Clifford is currently a Non-executive Director of Bid
Corporation Limited, Nearmap Limited and Technology One Limited. Clifford was previously a Non-executive
Director of Afterpay Limited (2017-2020) and has over 20 years of experience in the digital space as an
entrepreneur and as an executive, with specific experience in disrupting businesses. His previous executive
roles include Managing Director, South-East Asia, Australia & New Zealand for LinkedIn (2009 – 2017),
Managing Director of Yahoo! Australia & New Zealand (2003 – 2006) and Founder and Managing Director of
iTouch Australia and New Zealand, one of the largest mobile content and application providers in Australia.
Clifford holds a Master of Science in Management from the Ben Gurion University of the Negev, and a
Bachelor of Business Science (Honours) in Economics and Marketing from the University of Cape Town.
5
Corporate Governance
A2B believes that robust corporate governance practices, internal control
systems and an effective risk management framework will contribute
to the responsible and sustainable creation of long‑term value for the
Company’s shareholders.
CORPORATE GOVERNANCE HIGHLIGHTS
The Company continued to focus on corporate governance during FY22,
reflecting the Board’s commitment to fostering a strong governance culture.
Key highlights included:
Succession planning and leadership:
A key focus of the Board during the second half of FY22 was leadership transition at the Company.
On 7 February 2022, the Company’s previous Chairman Paul Oneile retired from the Board and
the Company’s previous Managing Director and CEO Andrew Skelton stepped down from his role.
The Board actively met on a regular basis over this period to implement transition arrangements,
resulting in the appointment of David Grant as Executive Chairman on an interim basis while a
recruitment process was undertaken. This process culminated in the appointment of Mark Bayliss
as Executive Chairman, effective 7 March 2022. To facilitate the continued successful delivery of the
new growth strategy and ensure stability for the business, the Board has postponed the current CEO
search process until early 2023. On the Board’s request, Mr Bayliss has agreed to extend his current
contract as full time Executive Chairman until 30 June 2023.
Strategic Review
The challenges to the Company’s core business continued with the impacts of the Omicron variant
emerging in late 2021. Along with changing consumer behaviours and the Board’s focus on the timeline
to enhanced returns, in early February 2022 the Board led a broad‑based review of the business as well
as a wider review of the Company’s asset portfolio. The Board updated the market on this process on
14 July 2022.
6
A2B Annual Report 2022
Role of the Board
The Board is responsible for the corporate governance of the
Group. The Board continually reviews the Company’s governance
policies and practices to ensure that they remain appropriate
in light of changes in corporate governance expectations
and developments.
The Board is committed to instilling a culture where its people
are expected to behave in a lawful, ethical and socially
responsible manner. Details on the standards of ethics and
conduct that the Company’s representatives are expected to
maintain can be found in A2B’s Code of Conduct, available on
the A2B website.
The Board reviews and approves the strategic direction of the
Company and oversees Management’s implementation of the
Company’s business model and achievement of the Company’s
strategy. The Board has delegated responsibility for overseeing
the day-to-day operation of the Company to Management.
Board Committees
The Board also delegates a number of responsibilities to its
Committees, as set out in their respective Charters.
The Audit and Risk Committee is responsible for overseeing
the Company’s financial reporting process, external and
internal audit, processes for monitoring compliance with
laws, regulations and the Code of Conduct, and processes
for identifying and managing risk.
The Remuneration and Nomination Committee is
responsible for assisting the Board with Director nominations
and Board succession planning, and the Company’s
remuneration framework.
Board composition and performance
The Board currently comprises three Non-Executive Directors
and one Executive Chairman. Mark Bayliss was appointed as
Executive Chairman effective 7 March 2022 and elected by
shareholders on 28 April 2022.
The Board believes that its current composition represents
a depth and breadth of skills and experience that will allow
it to continue operating effectively. For details about the
Directors and their experience, qualifications and Committee
memberships, refer to page 7.
The Board as a whole discusses and analyses its own
performance during the year, including suggestions for change
or improvement. For more details about the process for the
performance evaluation of the Board, as well as its Committees,
individual Directors and executive KMPs, refer to pages 8 to 10 of
the 2022 Corporate Governance Statement and the Company’s
Performance Evaluation Policy.
A2B’s Values and Culture
The Company has five core values as set out in A2B’s Code of
Conduct. These values underpin all activities of the Group and
are embedded in its leadership.
Caring
Collaborative
Authentic
Accountable
Progressive
We care about
our business, our
customers, each
other. We care
about safety,
quality, reliability
and having fun.
We work
together as one
connected team,
including our
customers and
our partners.
We are straight
up. We call it as
it is with respect
for each other.
We keep our
word and take
responsibility for
our work.
We are
innovative, we
keep moving
forward and are
goal oriented.
Governance policies
The Board has put in place a suite of policies, all of which are
available on the A2B website. They set out the Company’s
governance arrangements in relation to matters such as
speaking up, securities trading, shareholder communication,
market disclosures, anti-bribery and corruption, and diversity.
An overview of some of the key policies of the Company
can be found on pages 11 to 16 of the 2022 Corporate
Governance Statement.
A2B values diversity and inclusiveness in the workforce and
recognises that diversity drives the Company’s ability to attract,
retain, motivate and develop the best talent and deliver the
highest quality services to its customers. Details about the
Company’s measurable objectives and its progress in achieving
them in FY22 can be found on pages 11 to 12 of the 2022
Corporate Governance Statement.
Approach to risk management
The Board, in consultation with the Audit and Risk Committee,
is responsible for reviewing, ratifying and monitoring the
Company’s systems of risk management. The Audit and Risk
Committee advises the Board on high-level risk related matters,
and oversees processes to ensure that there is an adequate
system of internal control and management of business risk,
and a regular review of those controls and relevant policies and
procedures is undertaken.
The CEO and Managing Director (a role currently performed by
the Executive Chairman) and Management are responsible for
developing and promoting the appropriate management of risk
and the ongoing maintenance of the control environment. Refer
to pages 16 to 17 of the 2022 Corporate Governance Statement
for additional information about the Company’s risk framework.
An overview of the material risks affecting the company can be
found on pages 15 to 16.
Additional details about the Company’s corporate governance are available in the 2022 Corporate
Governance Statement, available on the Company’s website at
www.a2baustralia.com/investor-center/corporate-governance/.
7
Operating and Financial Review
Principal activities
A2B’s principal activities are to serve Passengers, Drivers and Taxi Operators by facilitating taxi bookings,
trips and payments. A2B is a leader in the Australian personal transport sector with widely recognised brands.
With over 7,000 vehicles in our 13cabs and Silver Service networks across Australia we are a well-established
player in the domestic personal transport market.
A2B has two core revenue streams, network subscription revenue and service fee income. A2B receives a
fixed monthly fee from taxi operators for network subscriptions. Service fee income is generated on non-
cash taxi payment services based on the value of the fare processed.
Basis of preparation
The FY22 statutory results, including the prior comparative results, are reported in accordance with the
leasing standard AASB16 in the attached financial statements. The Company believes that presenting the
financial statements on a pre-AASB16 basis provides a better indicator of performance as represented by
the tables below.
Unless otherwise stated, full year results disclosed in this Operating and Financial Review are underlying
results on a pre-AASB16 basis excluding significant items. Underlying profit is a non-statutory measure for
the purpose of assessing the performance of the group. During the period the group updated the
classification of certain operating expenses in the consolidated statement of comprehensive income to
better reflect the nature of these expenses, further detail is included in note 2.
Financial Results
In FY22 the COVID pandemic continued to negatively impact the business with Government restrictions,
consumer hesitancy and constrained vehicle/driver supply adversely impacting revenue and profitability.
Encouraging signs at the end of FY21 reversed as the July – October period saw the toughest restrictions
across the country since the start of the pandemic with lockdown periods of 107 days in Sydney and 82 days
in Melbourne. Subsequent improvement in business conditions occurred in November 2021 as the impact of
the delta variant eased, however the emergence of the Omicron variant in late December 2021 once again
curtailed recovery.
The industry started to experience recovery from March 2022 onwards and this has been consistent, however
slower than expected. Whilst Australian taxi usage is resilient, COVID had a large impact on the business
and has taken cars out of our fleet, our biggest revenue driver.
In 2H22 revenue improved vs 1H22, however discontinuation of Government support and increased cost
resulted in an EBITDA deterioration. As such further cost efficiencies needed to be implemented to reflect
this change in revenue.
In FY22 revenue has grown by $11.7 million or 10.4% to $125.1 million while underlying EBITDA experienced a
reduction of $2.6 million ending at a loss of $9.4 million.
On a statutory basis A2B recorded an EBITDA loss of $22.3 million and net loss after tax of $27.8 million.
Reported statutory loss reflects the necessary restructuring initiatives that have been put in place to put the
business back into profit and positive cash flow.
Significant items influencing the Company’s statutory result include the impacts of COVID, asset write-offs
($9.7 million) and restructuring costs ($5.6 million).
1
8
A2B Annual Report 2022
Operating and Financial Review
Underlying financial results
(excl. AASB16 impact & excl. significant items)
Revenue
Other income
Expenses
EBITDA
Depreciation & Amortisation
EBIT
Finance costs
Profit before tax
Income Tax
NPAT
EBITDA margin
EBIT margin
Earnings per share
Reconciliation of underlying profit to statutory profit
Underlying profit before tax
AASB 16 Impact
Underlying profit before tax
Acquisition and integration related costs (incl MTI
retention costs)
Impairments and asset write-offs
Termination and restructuring
Total items excluded from underlying profit before
tax
Statutory profit before tax
Income tax
Statutory NPAT
Statutory earnings per share (AUD)
FY22
$m
125.1
2.6
(137.1)
(9.4)
(14.2)
(23.6)
(0.9)
(24.5)
7.3
(17.1)
(7.5%)
(18.9%)
FY21
$m
113.4
18.0
(138.1)
(6.8)
(15.1)
(21.9)
(0.5)
(22.4)
6.8
(15.6)
(6.0%)
(19.3%)
(14.1 cents)
(13.0 cents)
FY22
$m
(24.5)
0.0
(24.4)
0.0
(9.7)
(5.6)
(15.3)
(39.7)
11.9
(27.8)
FY21
$m
(22.4)
(0.2)
(22.6)
(0.2)
(1.9)
(0.9)
(3.0)
(25.6)
7.5
(18.1)
(22.9 cents)
(15.2 cents)
Change
over PCP
10.4%
(38.0%)
(7.7%)
(9.3%)
(9.3%)
Change
over PCP
(9.3%)
(8.1%)
(407.9%)
(55.1%)
(47.2%)
(46.2%)
As of 30 June 2022, A2B had access to $20.0 million in liquidity, with $12.3 million in cash and $7.7 million of
undrawn bank facilities. The Company and the entities it controls (the Group) existing working capital
facility has a limit of $25 million and expires in September 2023.
Revenue
A2B recorded total revenue of $125.1 million (FY21 $113.4 million), an increase of $11.7 million or 10.4%
compared to prior year. Revenue growth was primarily driven by:
- Recovery in network subscription revenue (+$11.2 million or 36%) with fleet subscription pricing
returning to pre-pandemic levels.
- Growth in service fee income (+$3.0 million or 13.4%), with taxi fares processed levels reaching 85%
-
of pre-pandemic levels in June.
Taxi license plate income (+$1.0 million) reflecting slow recovery in taxi plate lease rates, primarily in
Queensland.
Lower margin revenue such as taxi operations and couriers reduced $1.9 million and $1.8 million respectively
compared to last year.
2
9
Fleet
7,500
7,175
Affiliated Fleet (#)
end of month
6,867
6,530
6,429
6,746 6,688 6,632
6,485 6,466 6,560 6,599
6,722
6,831
Affiliated Fleet (#)
month-on-month growth
317
94
39
123
109
-101
-58
-56
-19
-147
-308
-337
7,000
6,500
6,000
5,500
5,000
500
400
300
200
100
-
-100
-200
-300
-400
-500
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
During the extensive lockdown period in 1H22 fleet reduced by 543 vehicles or 7.6%. Further decline continued
in January and February before a gradual and consistent recovery in fleet was visible from March onwards.
In 2H22 total fleet improved by 199 vehicles bringing the 30 June fleet level to 6,831 vehicles, down 344 or
4.8% on 30 June 2021.
A total of $5.2 million in fee relief was provided to drivers and operators in Sydney and Melbourne during
lockdowns in 1H22. Compared to last year the impact of fee relief was more than offset by fleet subscription
price recovery in the remaining states. From January onwards all states reverted to pre-pandemic pricing.
As a result network subscription revenue improved $11.2 million or 36% to $42.2 million.
Lower margin taxi operating income decreased $1.9 million to $9.5 million (FY21 $11.4 million) and courier
income reduced $1.8 million to $3.1 million (FY21 $5.0 million). Both activities were assessed as part of the
strategic review with taxi operations being rationalised nationally resulting in a reduced operated fleet while
the courier business was divested in August 2022.
Brokered taxi license plate income improved $1.0 million to $2.5 million (FY21 $1.5 million). This improvement
is on the back of improved lease rates, primarily in Queensland.
Vehicle sanitation income reduced $2.2 million ending at $5.6 million (FY21 $7.8 million). The revenue decline
is due to cessation of the contract with the NSW Government in May 2022.
3
10
A2B Annual Report 2022
Operating and Financial Review (continued)
Taxi fares processed ($m)
982.8
3.9
667.0
311.9
FY19
760.9
4.3
517.1
239.6
525.0
23.9
373.4
127.7
606.9
47.8
402.5
156.6
Cabcharge
FY20
Bank issued & 3rd Party
FY21
in-app payments
FY22
Service fee income increased by $3.0 million or 13.4% to $25.7 million (FY21 $22.7 million). Total taxi fares
processed ended at $606.9 million, an improvement of $81.9 million or 15.6% compared to last year (FY21
$525.0 million).
The first half of FY22 was hampered by the extensive lockdowns in Sydney and Melbourne following the
spread of the Delta strain. Subsequently an improvement in business conditions was experienced in
November as the impact of the Delta variant eased, with the emergence of the Omicron variant in late
December again reversing recovery.
ttoottaall ffaarreess pprroocceesssseedd aass %% ooff FFYY1199
73%
64% 61%
72%
56%
86% 82% 85%
46%
37% 41% 46%
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
Consistent with fleet growth, recovery was visible from March 2022 onwards as Government restrictions were
removed and borders opened up. Recovery in fares processed however (the demand side) is faster compared
to fleet (the supply side). Fleet recovery is lagging fares and trip growth primarily due to labour and vehicle
shortages.
All payment channels experienced growth in FY22 with handheld and in-app payments exceeding pre-
pandemic levels. In June 2022 Cabcharge fares reached 65% of pre-pandemic levels with recovery lagging
due to a slower return in corporate travel. In June 2022 the total value of credit and debit cards processed
(mostly personal travel) reached 95% of pre-pandemic levels.
Fares processed ($m)
Cabcharge
In-app payments
FAREWAYplus
Spotto
Total Fares processed
FY22
156.6
47.8
309.0
93.5
606.9
YoY growth
23%
100%
3%
29%
16%
4
11
Revenue from contracts with Government for the provision of school bus services and payment services for
Taxi subsidy schemes improved $1.7 million to $10.4 million (FY21 $8.7 million). This improvement is driven by
additional revenue generated from a Taxi Subsidy Scheme contract with the NSW Government.
Other income
In FY22 A2B recognised $2.4m in Government support (FY21 $17.6 million), primarily driving a decrease of
$15.4 million in other income compared to last year.
Expenses
On a statutory basis, total expenses, including significant items, increased $11.4 million or 7.3% to $167.3
million (FY21 $155.9 million).
In FY22 A2B incurred a total of $15.3 million in non-recurring charges (significant items) (FY21 $3.0 million).
These items relate to asset write-offs ($9.7 million) and termination and restructuring charges ($5.6 million).
These significant items are recognised in FY22 and are as a result of the recently completed strategic review.
On an underlying basis, total expenses excluding depreciation and amortisation decreased $1.0 million or
0.7% to $137.1 million.
Cost of goods sold improved by $1.1 million compared to last year on the back of a reduction in low margin
revenue lines, including taxi operations and couriers.
Total indirect expenses ended $0.1 million below last year, adversely impacted by new initiatives such as
FlamingoPay that contributed $2.7 million to the increase in expenses.
The below waterfall chart outlines the year on year EBITDA movement and movement in expenses. Adjusted
for FlamingoPay, a cost decrease was visible in employee expenses ($0.7 million) and overheads ($2.3
million), partly offset by an increase in bad debt and other expenses ($0.5 million).
nneett YYooYY ccoosstt iimmpprroovveemmeenntt ooff $$11..00mm
Depreciation and amortisation
Total depreciation and amortisation charges reduced $0.9 million or 6.0% to $14.2 million. On a statutory
basis total depreciation and amortisation charges reduced $1.7 million or 9.7% following term reduction and
cessation of office lease agreements.
12
A2B Annual Report 2022
5
Operating and Financial Review (continued)
Net finance costs
Net finance costs increased $0.4 million to $0.9 million (FY21 $0.5 million). This increase is primarily driven
by the interest charges on drawn down debt in 2H22.
Income tax expense
On a statutory basis, A2B recorded an income tax benefit of $11.9 million (FY21 $7.5 million) resulting from
a $39.7 million loss before income tax adjusted for non-deductible items. As a result, a $20.5 million deferred
tax asset has been recognised at 30 June 2022.
Profit after tax
Underlying net loss after tax was $17.1 million (FY21 $15.6 million). A statutory net loss after tax of $27.8
million was recorded in FY22 (FY21 loss of $18.1 million).
Cashflow
A2B commenced FY22 with net cash of $10.0 million and experienced a $16.6 million reduction in net cash
during the year. This reduction was primarily driven by:
- Cash outflow from operations of $6.2 million
- Net capex spend of $8.3 million
The $6.2 million cash outflow from operations includes a $5.5 million tax refund from the Federal Government
through available tax carry back COVID relief measures.
$m
Receipts from customers and others
Payments to suppliers, licensees and employees
Dividends received
Finance costs paid
Income tax received / (paid)
Net Cash Flow from Operations
Purchase of PPE
Development of intellectual property
Proceeds from sale of PPE
Net Cash Flow from Investing
Proceeds from borrowings
Repayment of borrowings
Payment of lease liabilities
Dividends paid to non-controlling interest in subsidiaries
Net Cash Flow from Financing
Net Change in Cash Position
Cash and cash equivalents at 1 July
Effect of movements in exchange rates on cash held
Gross Cash at the end of Period
30-Jun-22
30-Jun-21
733.7
(744.6)
658.7
(662.5)
0.2
(1.0)
5.5
(6.2)
(4.0)
(4.7)
0.4
(8.3)
17.3
(0.3)
(2.0)
(0.1)
15.0
0.4
11.9
0.0
12.3
0.0
(1.0)
(0.1)
(4.9)
(2.9)
(4.3)
1.0
(6.2)
5.1
(5.3)
(2.6)
(0.1)
(2.8)
(13.8)
25.8
(0.1)
11.9
6
13
Net capital expenditure for FY22 was $8.3 million (FY21 $6.2 million). Capex spend in FY22 primarily comprises
$4.7 million related to internally developed software, $2.4m relating to in-car equipment (dispatch tablets +
eftpos terminals), $1.1m relating to an office move in Sydney and $0.5m relating to IT hardware /
infrastructure.
FY22 Dividends
The Board has decided not to declare a final FY22 dividend.
Financial position
Balance sheet
A2B remains in a strong financial position despite net debt of $6.6 million. As at 30 June 2022, A2B has a
$25 million working capital facility in place that matures in September 2023. In addition, the Company has
material property assets on its balance sheet. These property assets have a carrying value of $10.0 million
and have been independently valued in June 2022 in a range of $102 million to $114 million.
$m
30-Jun-22
30-Jun-21
Cash and cash equivalents
Other current assets
Total current assets
Property, plant and equipment
Taxi plate licenses
Other non-current assets
Right of use asset
Total non-current assets
Total assets
Payables
Loans and Borrowings
Other
Lease liabilities
Total current liabilities
Loans and Borrowings
Lease liabilities
Other liabilities
Total non-current liabilities
Total liabilities
Total net assets
Net (debt) / cash
14
A2B Annual Report 2022
12.3
67.2
79.5
23.7
1.3
67.0
6.5
98.5
11.9
57.1
69.0
33.0
1.3
61.9
12.7
109.0
178.1
178.0
55.9
1.6
8.5
1.6
67.6
17.3
5.5
1.5
24.3
91.9
86.1
39.7
1.9
8.2
2.0
51.8
0.0
11.3
1.9
13.3
65.0
113.0
(6.6)
10.0
7
Operating and Financial Review (continued)
Property, plant and equipment reduced $9.3 million following a $4.2 million asset write-off as part of the
strategic review, depreciation and limited capex spend during the year.
Other non-current assets increased by $5.1 million driven by a $12.2 million increase in deferred tax assets.
This was partly offset by $6.7 million reduction in intellectual property of which $5.5 million relates to IP asset
write-off following completion of the strategic review.
Right of use asset (AASB16) reduced by $6.2 million, offset by a reduction in lease liabilities following
termination and shortening of office lease agreements.
Outlook
Australian taxi usage remains resilient, as is demonstrated by the quick recovery in fares and trips processed
through A2B’s systems. However, COVID had a large impact on the business and has taken cars out of our
fleet, our biggest revenue driver. Recovery in the second half of FY22 has been consistent although slower
than expected. The slower than anticipated recovery has meant that further actions needed to be taken in
respect to A2B’s cost base. The recently completed strategic review has addressed and right sized the cost
base while also simplifying the business and improving margins by exiting loss making and low margin
business lines. As a result, the FY23 outlook is driven by new operating principles (i.e. focus on core, “Better-
Before-Bigger”, a new organisational structure and return to sustainable growth), supported by a strong
recovery in demand (trips and fares) while supply (fleet) recovery continues at a slower pace hampered by
driver and vehicle supply.
Material business risks
The operating and financial performance of A2B is influenced by a variety of general economic and business
conditions, including levels of consumer spending, inflation, interest and exchange rates and access to debt
and capital markets. In addition, the possible emergence of additional COVID variants or subsequent waves
of existing variants that could lead to the reintroduction of Government imposed movement restrictions or
otherwise limit Passenger activity could impact A2B’s financial performance.
In FY22 impacts of the COVID pandemic continued to test the financial strength of many companies and
industries and highlighted the required focus on liquidity. A2B faces various potential risks that have the
potential to materially affect the performance of the Group. These risks are listed below.
Strategic Risk
Nature of Risk
Actions / Plans to Mitigate
Regulatory
changes
A2B’s operations are subject to State and Territory
regulation and control. New State Passenger levies
were introduced.
All states and territories have implemented a 5%
limit o payment service fees, including Tasmania in
FY21.
More recently the NSW government announced it
will introduce a package of reforms for the point-
to-point transport industry. These reforms include
freeing up the supply of taxis by removing the limit
on the number of Taxi licences that are available.
Once these changes take effect, Taxi licences will no
longer be able to be bought and sold.
It is possible that Taxi Regulators may impose lower
limits on the level of service fees able to be charged
to Cabcharge Customers thereby potentially
impacting revenue and earnings.
It is possible that Taxi Regulators may change rules
around required standards and quality control
aspects of Taxi Networks.
Taxi Regulators may affect the value of Taxi plate
licences through setting supply of new Taxi plate
in order to comply with
Continue to work with Taxi Regulators on
issues affecting the Taxi Industry.
Building administration tools that assist
with levy collections and ensure Drivers and
information they
Operators have the
levy
require
requirements.
Advocate for and deliver standards and
controls that result in maintaining or
improving the standards of Customer
service and safety that are essential to
transport user confidence.
Maximise opportunities for A2B presented
by regulatory frameworks.
8
15
licences and setting rates for Government leased
Taxi plate licences.
In addition, changes in Taxi regulation, including
establishing a regulatory environment for non-Taxi
transport can indirectly affect the value of Taxi
plate licences.
Taxi Regulators may also restrict the supply of Taxi
plate licences which limits growth opportunities for
the Taxi Industry.
Changes to
competitive
landscape /
changes to IT
environment
Continued emergence of competitors in personal
transport who offer alternative service and
payment methods, both within and outside the
regulatory framework, or subject to less stringent
regulation.
Potential loss of business if the Company fails to
keep pace with technological change with respect
to Network Operations, bookings and payments.
Be at
the
forefront of
serving
technology
personal
industry. Development and
the
development
transport
integrate bookings and payments.
Strategic acquisition-led growth to bolster
existing technology and resources and
leverage scale.
Standardising, scaling and raising service
standards in the mobility business to be
leveraged in Australia and the overseas
markets we operate in.
16
A2B Annual Report 2022
9
Operating and Financial Review (continued)
Directors' Report
Directors’ Report
The Directors present their report (including the Remuneration Report), together with the financial
statements of the consolidated entity being A2B Australia Limited (A2B or the Company) and the entities
it controls (the Group) for the financial year ended 30 June 2022.
Directors
The Directors of the Company at any time during or since the end of the financial year up to the date of this
report are:
Mark Bayliss (appointed 7 March 2022)
David Grant
Jennifer Horrigan
Louise McCann (retired on 2 March 2022)
Paul Oneile (retired on 7 February 2022)
Clifford Rosenberg
Andrew Skelton (stepped down on 7 February 2022)
The qualifications, experience and special responsibilities of current Directors of the Company are set out in
the Board of Directors section.
Directorships of other listed companies
The directorships in other listed companies a Director has held at any time in the last three years immediately
before the end of the financial year are set out in the table below.
Director
Name of listed company
Appointment date
Cessation date
Mark Bayliss
David Grant
CSG Limited
Event Hospitality & Entertainment Ltd
27 June 2018
25 July 2013
Retail Food Group Limited
25 September 2018
The Reject Shop Ltd
Murray Goulburn Co-Op Ltd
MG Responsible Entity Ltd
Jennifer Horrigan
Dexus Industria REIT
Louise McCann1
Paul Oneile1
Dexus Convenience Retail REIT
QV Equities Limited
Macquarie Media Ltd
Thorn Group Limited
Clifford Rosenberg
Technology One Limited
IXUP Limited
Afterpay Limited
Pureprofile Limited
Nearmap Limited
1 May 2020
27 October 2017
27 October 2017
30 April 2012
30 April 2012
26 April 2016
10 June 2015
14 October 2019
27 February 2019
29 September 2017
30 March 2017
12 June 2015
3 July 2012
1. Please note that the details listed are current as at the date the Director ceased being a Director of the Company.
19 February 2020
-
-
-
26 June 2020
26 June 2020
-
-
-
30 October 2019
-
-
2 July 2019
24 May 2020
28 February 2019
-
Company Secretary
Adrian Lucchese
Adrian Lucchese was appointed as Group General Counsel and Company Secretary in October 2014. Adrian
began his career with Blake Dawson Waldron (now Ashurst) in 1988 and has held a number of senior
management and executive roles including Group General Counsel and Company Secretary of George
Weston Foods Limited where, amongst other things, he was responsible for many of the improvements to
its competition compliance program. From August 2011 to October 2014, Adrian was Company Secretary of
10
17
AMP Capital Holdings Limited where he contributed to governance, structural and business improvement
initiatives.
Adrian holds Bachelor degrees in both Science and Laws from the University of Sydney and a Master of Laws
from the University of Sydney.
Dividends
No dividends were paid or declared since the end of the previous financial year.
Principal activities
The principal activities of the Group are included in the Operating and Financial Review (“OFR”) set out on
pages 8 to 16. Other than those mentioned in the OFR there were no other significant changes to the nature
of the activities of the Group during the year.
Review of operations
A review of the Group’s operations during the year and the results of those operations, together with its
financial position, are included in the OFR set out on pages 8 to 16. The Group’s business strategies and
prospects for future financial years are also included in the OFR.
Significant changes in state of affairs
In the opinion of the Directors, there were no significant changes in the state of affairs of the Group during
the financial year, other than those changes mentioned in the OFR.
Events subsequent to reporting date
No other matter or circumstance has arisen since the reporting date that significantly affects or may
significantly affect the Group’s operations in future years, the results of those operations in future years, or
the Group’s state of affairs in future years.
Likely developments
Information about likely developments in the Group’s operations is included in the “Outlook” section of the
OFR on page 15.
Environmental regulation
The Group’s operations are not subject to any particular and significant environmental regulations under a
law of the Commonwealth or of a State or Territory.
Directors’ interests and benefits
The relevant interests and benefits of each current Director as at the date of this report are set out in the
table below.
Director
Mark Bayliss
David Grant
Jennifer Horrigan
Clifford Rosenberg1
1. The indirect shares are 111,307 fully paid ordinary shares held by Cliffro Pty Ltd atf the Cliffro Trust.
Interest in shares
800,000
35,000
0
111,307
Mr Bayliss has been granted the following performance rights pursuant to the terms of his package approved by
shareholders at the Company’s EGM.
Grant Period
FY22 grant
(for period ending 30 June 2026)
Performance Rights
1,500,000
18
A2B Annual Report 2022
11
Directors' Report (continued)
Remuneration Report
The Remuneration Report is set out on pages 21 to 33 and forms part of this Directors’ Report and has been
audited as required by section 308(3C) of the Corporations Act.
Directors’ meetings
The number of Directors’ meetings and attendance by each Director at those meetings during the financial
year are set out in the table below.
Director1
Board
Audit and Risk2
Remuneration and Nominations2
Held3
Attended
Held3
Attended
Held3
Attended
Mark Bayliss4
David Grant
Jennifer Horrigan
Louise McCann5
Paul Oneile6
Clifford Rosenberg
Andrew Skelton7
3
12
12
12
7
12
7
3
12
12
1
7
10
7
-
3
3
2
2
3
2
-
3
3
0
2
3
2
1
4
4
3
3
4
3
1
4
4
0
3
4
3
1. “Director” in the table means a Director who was a director of the Company at any time during the financial year.
2. All Directors are invited to and generally attend, Board Committee meetings. The “Attended” columns in the table reflect attendance at meetings by
Committee members.
3. The “Held” columns in the table reflect the number of meetings held during the period in which the Director held office.
4. Mark Bayliss was appointed on 7 March 2022.
5. Louise McCann was on a leave of absence after the Board meeting on 7 July 2021 and retired on 2 March 2022.
6. Paul Oneile retired on 7 February 2022.
7. Andrew Skelton stepped down on 7 February 2022
Share options and performance rights
There were no options over unissued shares of the Company granted to the Directors or any executives during
or since the end of the financial year.
As at the date of this report there are 3,438,696 performance rights over unissued shares which have been
granted to Mark Bayliss and current and former senior executives under the Company’s LTI Plan. Other than
to Mark Bayliss, no performance rights were issued during the year. Further information on the LTI Plan and
performance rights held by key management personnel are included in the Remuneration Report on pages
21 to 33.
Indemnification and insurance of officers and auditors
The Company’s Constitution requires it to indemnify current and former Directors (including alternate
directors), officers, and auditors (if determined by the directors) of the Company against liabilities incurred
by the person as an officer (or auditor if determined by the Directors).
The Company has agreed to provide indemnities to and procure insurance for past and present Directors
and officers of the Company and its controlled entities. The indemnities provide broad indemnification
against liabilities to another person (other than the Company or related body corporate) and for legal costs
that may arise from their position as Directors and officers of the Company and its controlled entities. The
indemnities are subject to certain exceptions such as where the liability arises out of conduct involving a lack
of good faith.
The Company has also paid insurance premiums for insurance policies providing the type of cover commonly
provided to Directors, officers and senior employees of listed companies such as the Company. As is
commonly the case, the insurance policies prohibit further disclosure of the nature of the insurance cover
and the amount of the premiums.
12
19
There has been no indemnification of the current auditors, nor have any insurance premiums been paid in
respect of the current auditors since the end of the previous year.
Non-audit services by auditors
Details of the non-audit services provided by the Group’s auditor, KPMG, during the financial year including
fees paid or payable for each service, are set out in note 25 to the Consolidated Financial Statements.
The Board has considered the non-audit services provided during the year by KPMG and in accordance with
written advice provided by resolution of the Audit and Risk Committee, is satisfied that the provision of those
non-audit services during the year by the auditor is compatible with, and did not compromise, the auditor
independence requirements of the Corporations Act for the following reasons:
all non-audit services were subject to the corporate governance policies and procedures adopted by the
Company and have been reviewed by the Audit and Risk Committee to ensure they do not impact the
integrity and objectivity of the auditor; and
the non-audit services provided do not undermine the general principles relating to auditor
independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve
reviewing or auditing the auditor’s own work, acting in a management or decision making capacity for
the Company, acting as an advocate for the Company or jointly sharing risks and rewards.
Lead auditor’s independence declaration
The lead auditor’s independence declaration required under section 307C of the Corporations Act is set out
on page 34.
Rounding off
A2B is a company of the kind referred to in ASIC Corporation 2016/191 (Rounding in Financial/Directors’
Reports) Instrument. In accordance with that Instrument, amounts in the Consolidated Financial
Statements and the Directors’ Report have been rounded off to the nearest thousand dollars, unless
otherwise stated.
This Directors’ Report has been signed in accordance with a resolution of the Directors.
Mark Bayliss
Executive Chairman
23 August 2022
David Grant
Director
23 August 2022
20
A2B Annual Report 2022
13
Directors' Report (continued)
Remuneration Report
Remuneration Report
Letter from the Chairman of the Remuneration and Nomination Committee
Dear Shareholders,
Your Board presents the Remuneration Report for the year ended 30 June 2022. This Report provides an
overview of our remuneration structures, policies and practices.
Given A2B’s results in FY22, your Board had to make some difficult decisions. While no STI was awarded to
current executives in respect of FY22, those who left the business were awarded a portion of their STIs as
part of their separation packages. In addition, no LTI was offered to executive KMP in FY22, other than that
approved by shareholders at the Extraordinary General Meeting held on 28 April 2022 (EGM) for the Executive
Chairman.
Detailed information regarding the remuneration outcomes for FY22 are outlined in section 4 of this
Remuneration Report.
The remuneration structure for both Executives and Non-Executive Directors was reviewed and reset by the
Board in the final quarter of FY22, consistent with the strategic review undertaken and the turnaround being
pursued by the Company and its leadership.
For FY23, the Board has approved new remuneration arrangements for Executives and Non-Executive
Directors that reflect the turnaround and cost reduction initiatives being implemented across A2B. These
initiatives are aligned with creating a growing and sustainable business and creating sustainable value.
Executive Remuneration
At last year’s AGM, the Company received a ‘first strike’ on its Remuneration Report for FY21, with 50.26%
of votes against the Remuneration Report. A2B has considered, and where appropriate adopted, the
feedback provided by major shareholders and other stakeholders in relation to the remuneration outcomes
for FY22 and the re-designed remuneration arrangements for FY23.
The new Executive remuneration structure and incentive arrangements for FY23 align with the metrics
approved by shareholders at the EGM for the Performance Rights granted to Executive Chairman Mark
Bayliss. They are essential in retaining and rewarding key talent and ensuring a team aligned with delivering
shareholder value growth through successfully executing the new strategic goals and business turnaround
ahead.
Non-Executive Director Remuneration & Arrangements
For FY23, the Board has implemented a 15% reduction to Non-Executive Director Board and Committee fee
arrangements, consistent with the cost reduction initiatives implemented across the A2B operations in FY22.
In addition, the Board agreed to decrease the number of Directors by one – taking the total number of Non-
Executive Directors to three and to also reduce the aggregate Non-Executive Director fee pool from $1.3
million per annum (which was approved by shareholders on 26 November 2014) to $1.0 million per annum.
Leadership Update
On 7 March 2022, Mark Bayliss was appointed Executive Chairman. Under the terms of his agreement, Mr
Bayliss agreed to act in a full-time executive capacity until the earlier of 7 September 2022 or the
appointment of a suitably qualified CEO, after which he would become A2B’s Non-Executive Chairman. To
facilitate the continued successful delivery of the new growth strategy and ensure stability for the business,
14
21
the Board has postponed the current CEO search process until early 2023. On the Board’s request, Mr Bayliss
has agreed to extend his current contract as full time Executive Chairman until 30 June 2023.
With the correct strategy and leadership now in place, David Grant has informed A2B of his intention to step
down from the Board, pending the appointment of a Non-Executive Director who will also Chair the
Company’s Audit and Risk Committee. A search process has commenced, and to facilitate an orderly
transition David has offered to remain on the Board until an appointment is made. The Board thanks David
for his highly valued contribution to A2B and wishes him well for the future.
Concluding Remarks
The Board is committed to ensuring a robust remuneration framework that is responsive to change and
rewards executives for performance and long-term value creation for shareholders. The STI and LTI outcomes
for FY22, combined with the new remuneration structure for FY23 reflect this commitment.
On behalf of the Board, thank you for your ongoing support and we look forward to receiving your feedback
on this report. We would also like to thank Louise McCann for her service and commitment to the Company
both as a member of the Board and in her role as former Chairman of the Remuneration and Nominations
Committee. As you would have seen in our market announcement in March, Louise made the difficult
decision to retire so that she could focus on recovering from her health challenges. We wish her the best and
a speedy recovery.
Yours faithfully,
Jennifer Horrigan
Chairman
Remuneration & Nominations Committee
22
A2B Annual Report 2022
15
Remuneration Report (continued)
Remuneration Report
Table of contents
1. Overview
Who is covered by this report
Realised remuneration
2. Remuneration governance
3. Executive KMP remuneration arrangements
Remuneration principles and link to Company strategy
Remuneration structure
Executive KMP contracts
4. Executive KMP remuneration outcomes FY22
FAR
STI
LTI
Snapshot of Group performance
Executive remuneration in FY22
Incentive awards held by Executive KMP
5. Non-Executive Director fee arrangements
Fees in FY22
Fees in FY23
NED remuneration in FY22
6. Additional disclosures relating to securities
Shares
Rights
7. Transactions with KMP and their related parties
8. Shareholder voting for the 2021 Remuneration Report
24
24
24
25
26
26
26
28
28
28
28
29
29
29
30
30
30
31
31
31
31
32
33
33
This Remuneration Report for the year ended 30 June 2022 outlines the remuneration arrangements of A2B
Australia Limited (A2B or Company) and is prepared in accordance with the requirements of the
Corporations Act 2001 (Corporations Act) and the Corporations Regulations 2001. The information in
sections 1 to 8 has been audited as required by section 308(3C) of the Corporations Act, unless otherwise
stated.
16
23
A2B Australia Limited
and its Controlled Entities
1. Overview
Annual Financial Report
Year Ended 30 June 2022
The Board of Directors present the Remuneration Report for the year ended 30 June 2022 (FY22). This Report
provides an overview of our remuneration structures, practices and outcomes and their alignment with the
Company’s performance and strategy.
Who is covered by this report
The KMP covered by this report are listed in table 1 below.
Table 1: KMP included in this report
KMP
Non-Executive Directors
Paul Oneile
David Grant
Jennifer Horrigan
Louise McCann
Clifford Rosenberg
Executive
Mark Bayliss
Olivia Barry
Ton van Hoof
Adrian Lucchese
Deon Ludick
Tanya Steigerwalt
Stuart Overell
Andrew Skelton
Realised remuneration
Role
Change in FY22
Independent Chairman
Independent Director
Retired 7 February 2022
Interim Chairman from 7
February 2022 to 7 March 2022
Independent Director
Independent Director
Independent Director
Executive Chairman
Chief Operating Officer – Taxi Networks
Chief Financial Officer
General Counsel and Company Secretary
Chief Technology Officer
Chief Human Resources Officer
Chief Operating Officer - Taxi Networks
Retired 2 March 2022
Appointed 7 March 2022
Appointed 18 May 2022
Appointed 8 November 2021
Stepped Down 18 May 2022
Managing Director and CEO
Stepped Down 7 February 2022
The details of statutory executive KMP remuneration prepared in accordance with the Australian Accounting
Standards can be found in table 5 on page 29. Details of statutory Non-Executive Director fee arrangements
can be found in table 8 on page 31.
The table below provides shareholders with an understanding of the actual remuneration earned by
executive KMP in FY22. The value of remuneration includes the short-term incentive (STI) components
received in cash during the year in relation to deferred STI from previous years. It does not include awards
granted during FY22 that may vest during future financial years (such as the Incentive Shares and
Performance Rights that were granted to Mr Bayliss).
The amounts disclosed in the table below are intended to provide an explanation of the pay for performance
relationship in our remuneration framework and are in addition to the information provided in the statutory
executive KMP remuneration table in table 5 prepared in accordance with the Australian Accounting
Standards.
24
A2B Annual Report 2022
17
Remuneration Report (continued)
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Table 2: Actual executive remuneration earned in FY22 (non-statutory) (unaudited)
Executive
Fixed remuneration1
$
Termination
Benefits $2
Mark Bayliss
Olivia Barry
Ton van Hoof
Adrian Lucchese
Deon Ludick
249,292
41,933
456,501
422,579
495,000
Tanya Steigerwalt
217,101
--
--
-
-
-
-
Stuart Overell
Andrew Skelton
379,948
529,619
442,746
835,022
STI earned for FY22
& vesting of deferred STI
$
--
--
-
-
-
-
-
53,3003
LTI vested in
FY224 $
-
-
-
-
-
-
-
-
Total $
249,292
41,933
456,501
422,579
495,000
217,101
822,694
1,417,941
1. Fixed remuneration means contracted remuneration amount for base salary and superannuation during the period the Executive was a KMP.
2. Mr Skelton and Mr Overell’s termination payments were recognised in FY22.
3. Under the STI arrangements, 25% of the CEO’s earned STI is deferred, with payment being made in equal instalments 12 and 24 months later. This
amount includes payment of the second (and last) instalment of FY20 deferred STI (being $26,250) and the first instalment of FY21 deferred STI (being
$27,050).
4. The LTI rights awarded in FY18 & FY19 were tested in September 2021 and did not vest. Further information on vesting is set out in the LTI section of this
report.
2. Remuneration governance
The Board consults with the Remuneration and Nominations Committee (Committee), management, and
where necessary, external advisers, when making remuneration decisions. The diagram below illustrates the
remuneration decision-making process.
Board
Ensures remuneration is fair and competitive, and supports the Company’s strategic and operational
goals and alignment with long-term value creation for shareholders
Approves
remuneration policies, structures and arrangements after consideration of
recommendations from the Committee
Approves performance measures and outcomes after consideration of recommendations from the
Committee
Remuneration and Nominations Committee
Comprises at least three members appointed by the Board
Must have an independent chair and a majority of independent Directors
Makes recommendations to the Board regarding remuneration policies, structures and
arrangements
Makes recommendations to the Board regarding performance measures and outcomes
The Committee met four times in FY22
Management
CEO
proposes
remuneration
arrangements and performance outcomes for
his or her direct reports to the Committee
CEO not present when his or her remuneration
individual
is decided
External
advisers
Engaged and appointed by the Board or the
Committee as required
Advises the Committee and management to
ensure that the Company is fully informed
when making decisions
remuneration
consultants and
For more detail on the Company’s charters and policies, see: www.a2baustralia.com/investor-
center/corporate-governance/
Mandatory disclosure requirements apply to
the use of remuneration consultants under
the Corporations Act
18
25
A2B Australia Limited
and its Controlled Entities
3. Executive KMP remuneration arrangements
Remuneration principles and link to Company strategy
Annual Financial Report
Year Ended 30 June 2022
The Company has adopted the following principles to guide its remuneration strategy:
Align to the business strategy to encourage opportunities to be pursued and executives rewarded
accordingly for the creation of sustainable shareholder value
Be supported by a governance framework motivate, reward and retain skilled Executives and Directors
Align the interests of executive KMP with the long-term interests of the Company and its shareholders
with the use of performance-based remuneration
Set short-term and long-term incentive performance hurdles that are challenging and linked to the
creation of sustainable shareholder returns, where incentive plans are offered to executive KMP
Ensure any termination benefits are justified and appropriate
Business objectives
Enhance and expand
operational platform
for the creation of a
sustainable business
model for future
growth
Focus on creation of
sustainable
shareholder value
Remuneration
strategy objectives
Attract and retain key talent
through balanced remuneration,
market competitive pay and
performance-focused incentive
awards
Focus the executive team on the
key strategic business
imperatives
Align interests of executive KMP
and shareholders
Invite executive KMP to
participate in incentive plans
where appropriate
Remuneration structure
Fixed annual remuneration (“FAR”)
Set with reference to job size and organisations
of similar complexity and industry dynamics
Variable remuneration
Equity-based incentive awards based on the
Company’s short- and long-term performance
and other vesting conditions
Executive arrangements
Executive services agreements formalise
incentive arrangements, and include
termination and post-termination provisions
Remuneration structure
The Company aims to reward its executive KMP with a level and mix of remuneration appropriate to an
individual’s experience, position, responsibilities and performance.
The Board and the Committee regularly review the remuneration level and structure for the Company’s
executive KMP and make adjustments where appropriate to support the strategic initiatives of the business
whilst ensuring that it remains market competitive for recruiting and retaining skilled individuals.
Executive Chairman
Mr Bayliss was appointed on 7 March 2022 and his remuneration package was approved by shareholders
under ASX Listing Rule 10.14 at the Company’s Extraordinary General Meeting held 28 April 2022 (EGM).
In FY22, the Executive Chairman’s remuneration structure consisted of FAR and a grant of Incentive Shares
and Performance Rights.
Remuneration package approved by shareholders at the EGM
Details of Mr Bayliss’ remuneration package are disclosed below.
FAR
• Earlier of first six months of Mr Bayliss’ appointment and the
appointment by the Company of a long-term CEO: $695,000 p.a.
(plus statutory superannuation entitlements)
• Thereafter: $195,000 p.a.
(plus
statutory
superannuation
entitlements)
Incentive Shares
800,000 Incentive Shares subject to trading restrictions as follows:
400,000 Incentive Shares will be restricted from trading until vesting
on 30 September 2022;
200,000 Incentive Shares will be restricted from trading until vesting
on 31 March 2023; and
200,000 Incentive Shares will be restricted from trading until vesting
on 1 July 2023.
26
A2B Annual Report 2022
19
Remuneration Report (continued) A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Incentive Shares are fully paid ordinary shares in the Company.
However, they may not be dealt with until the trading restriction has
been lifted. They are not dependent on the satisfaction of a
performance condition as they are intended to provide immediate
equity exposure to Mr Bayliss.
On Mr Bayliss resigning from his position, or termination of his
appointment agreement by A2B for cause, any unvested Incentive
Shares will be forfeited to A2B. On a change of control, any unvested
Incentive Shares will be released from their trading restrictions.
Performance Rights
1,500,000 Performance Rights.
Each Performance Right will entitle Mr Bayliss to receive one share in
A2B Australia Limited on satisfaction of the relevant vesting conditions.
Performance Rights do not carry any right to receive dividends, vote or
to participate in share issues until and unless they vest into shares.
Performance Rights will vest on satisfaction of the following vesting
conditions:
First Tranche: 500,000 Performance Rights will vest on A2B
achieving a 20 day volume
weighted average price (VWAP) of at
least $1.70;
Second Tranche: 500,000 Performance Rights will vest on A2B
achieving a 20 day VWAP of at least $2.00; and
Third Tranche: 500,000 Performance Rights will vest on A2B
achieving a 20 day VWAP of at least $2.30.
‑
These performance conditions have been chosen because they
incentivise Mr Bayliss to achieve increases in the Company’s share price,
thereby aligning his interests with the creation of shareholder value. A
20 day VWAP method has been chosen for assessing the achievement
of these performance conditions because it reduces the impact of daily
fluctuations in the Company’s share prices and ensures that vesting
would only occur where sustained increases in the Company’s share
price are achieved.
Any Performance Rights which are unvested on 30 June 2026 will lapse
(Sunset Date).
The target VWAP specified above will be reduced by the amount of any
dividend or return of capital paid per share paid prior to the Sunset Date.
On Mr Bayliss resigning from his role, or termination of his appointment
agreement by A2B for cause, any unvested Performance Rights will
lapse. On a change of control, any unvested Performance Rights will
vest.
Cost and exercise
price
No amount is payable by Mr Bayliss for the issue of the Incentive Shares
or Performance Rights as they form part of his remuneration package.
The exercise price for the Performance Rights is nil, as is standard
market practice for performance rights that are part of a remuneration
package and that only vest on the achievement of vesting conditions.
Other executive KMP
Details of executive KMP FAR are disclosed below.
What is FAR?
FAR is comprised of salary and other benefits provided to an executive
on an ongoing basis, such as superannuation contributions.
20
27
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
How is FAR
determined?
is reviewed annually and our standard executive services
FAR
agreements do not include any guaranteed FAR increases.
When reviewing FAR for executives, a number of factors are considered,
including the individual’s skills and experience relevant to their role, and
internal and external factors.
The Company’s policy is to position FAR competitively with reference to
companies and roles of a similar complexity and industry dynamic to
that of A2B.
Were any changes
made in FY22?
Changes to FAR are typically implemented and take effect on 1 July of
each year. The FAR for each executive in FY22 is shown in table 3 on page
28.
No STI, long-term incentive (LTI) or other form of performance-related remuneration was offered to current
executive KMP (other than the Executive Chairman) in FY22.
For the terms applicable to prior-year STI and LTI grants, please refer to our Remuneration Report for the
relevant year, which is available at https://www.a2baustralia.com/investor-center/reports/.
Executive KMP contracts
The Company has a contemporary standard executive service agreement. The remuneration arrangements
for executive KMP are formalised in these agreements.
Table 3: Executive KMP contract terms
Executive
Mark Bayliss
Olivia Barry
Ton van Hoof
Adrian Lucchese
Deon Ludick
Tanya Steigerwalt
Stuart Overell
Andrew Skelton
Contract term
Notice period1
Six months or until CEO appointed
Ongoing
Ongoing
Ongoing
Ongoing
Ongoing
Stepped down 18 May 2022
Stepped down 7 February 2022
6 months
6 months
6 months
6 months
6 months
3 months
6 months
12 months
FAR
695,000
350,000
450,000
421,000
495,000
350,000
426,000
825,000
1. The length of the notice period is the same for the executive KMP and the Company. The Board has the discretion to make payments to executive KMP
lieu of notice. No other termination payments are provided for under any KMP contract.
4. Executive KMP remuneration outcomes for FY22
FAR
The fixed annual remuneration of executive KMP for FY22 is set out at table 3 on page 28.
STI
Given A2B’s results in FY22, no STI was awarded to current Executives in respect of FY22. Two Executives
who left the business were awarded a portion of their STIs as part of their separation packages. In addition,
no LTI was offered to executive KMP in FY22, other than that approved by shareholders at the EGM for the
Executive Chairman.
With respect to their FY21 STI award, the executive KMP received a cash payment during FY22.
The former Managing Director and CEO, Andrew Skelton, who stepped down on 7 February 2022, received
the following STI payments during FY22:
a cash payment for the non-deferred portion (being 75%) of his FY21 STI award
a cash payment in respect of the first deferred portion (being 12.5%) of his FY20 STI award
a cash payment in respect of the second and last deferred portion (being 12.5%) of his FY19 STI award
For the performance conditions and vesting outcomes in relation to these prior-year awards, please refer to
at
our
https://www.a2baustralia.com/investor-center/reports/.
Remuneration
available
relevant
Report
which
year,
the
for
is
28
A2B Annual Report 2022
21
Remuneration Report (continued) A2B Australia Limited
and its Controlled Entities
LTI
Annual Financial Report
Year Ended 30 June 2022
The Company’s shareholders approved the LTI plan in November 2014. The fourth and fifth tranches of
performance rights under the LTI plan were granted for the performance periods 1 July 2017 – 30 June 2021
and 1 July 2018 – 30 June 2021. The rights were tested in September 2021 and did not vest and lapsed
immediately as the performance conditions attached to the rights, being an absolute TSR and a compound
annual growth hurdle, were not achieved. Further details are shown in table 6 on page 30.
Snapshot of Group performance
Table 4: Performance outcomes for the last five years
Profit (Loss) after tax from continuing operations ($m)
(Loss) Profit attributable to the owners of the Company ($m)
Dividend paid ($m)
Dividend paid per share fully franked (cents)
Closing share price at 30 June ($)
Note: Opening share price in FY18 was $2.47
FY22
FY21
FY20
FY19
FY18
-27.8
-18.1
-23.7
-28.1
-18.3
-23.8
-
-
0
0
9.6
8
11.9
11.8
9.6
8
-1.9
-2.2
16.9
14
1.1
1.26
0.81
1.77
2.40
Executive remuneration in FY22
The statutory remuneration of each executive KMP in FY22 is set out in the table below.
Table 5: FY22 executive KMP remuneration (statutory)
Short-term benefits
Post-employment benefits
Share
based
payments
Non-cash
benefits $1
Super
contributions
$
Termination
benefits $
Other
long-term
employee
benefits $2
Executive
Mark Bayliss5
Olivia Barry6
Ton van Hoof
2022
2022
2022
2021
Adrian Lucchese 2022
Deon Ludick
2021
2022
2021
Salary and
fees $
231,668
38,502
426,432
379,021
399,011
399,010
471,432
429,029
Tanya Steigerwalt7 2022
200,463
Stuart Overell8
2022
356,885
STI $
-
-
-
82,875
-
74,000
-
88,500
-
-
-
2,962
-
-
26,885
13,651
-
14,904
14,777
-
2021
404,014
60,000
13,973
Andrew Skelton9 2022
487,567
-
Total
2021
2022
2021
804,022
216,40010
2,611,690
-
2,415,096
521,775
-
16,443
44,625
58,971
17,624
3,431
30,069
21,694
23,568
21,694
23,568
21,694
16,638
23,063
21,694
42,052
21,694
-
-
-
-
-
-
-
-
-
442,746
-
835,022
-
180,013
1,277,768
108,470
-
-
642
14,051
6,804
16,879
12,018
9,121
3,858
-
-
7,762
-
15,239
40,693
45,681
LTI rights/
Performance
Rights3 $
Incentive
Shares
101,518
424,623
-
80,015
105,247
80,015
105,247
80,015
105,247
-
122,238
105,247
244,475
210,494
-
-
-
-
-
-
-
-
-
-
-
-
Total $
775,433
45,537
550,567
595,641
546,358
625,620
584,136
663,232
231,878
934,936
612,690
1,609,116
1,284,292
708,277
424,623
5,287,958
631,482
-
3,781,475
Performance
related rem %
of total rem4
67.85%
0.00%
14.53%
31.58%
14.65%
28.65%
13.70%
29.21%
0.00%
12.94%
26.97%
15.19%
33.24%
21.42%
30.50%
Movements in accruals for annual leave and reportable fringe benefits are disclosed as non-cash benefits.
Other long-term employee benefits represent provisions for long service leave.
1.
2.
3. Mr Bayliss received a grant of Performance Rights during FY22. Amounts shown for the other members of the KMP relate to accrued expenses for rights previously granted
under the Company’s LTI program.
This represents the percentage of the total remuneration that relates to performance.
Relates to the period from 7 March 2022 (being the date of Mr Bayliss’ appointment as Executive Chairman) to 30 June 2022.
Relates to the period from 18 May 2022 (being the date of Ms Barry’s appointment as KMP) to 30 June 2022.
Relates to the period from 8 November 2021 (being the date of Ms Steigerwalt’s appointment as KMP) to 30 June 2022.
Relates to the period from 1 July 2021 to 18 May 2022 (being the date of Mr Overell stepping down as a KMP).
Relates to the period from 1 July 2021 to 7 February 2022 (being the date of Mr Skelton stepping down as Managing Director and CEO).
$54,100 was deferred and will be paid in August 2022.
4.
5.
6.
7.
8.
9.
10.
22
29
A2B Australia Limited
and its Controlled Entities
Incentive awards held by executive KMP
Annual Financial Report
Year Ended 30 June 2022
Details of all outstanding share-based incentive awards granted to executive KMP are set out in the table
below. The maximum possible total value of each grant is the number of instruments granted multiplied by
the market value of shares in the Company. The minimum possible total value of each grant is nil.
Table 6: Incentive awards held by executive KMP
Executive
Type of award
Grant Date
Performance
period
Mark Bayliss
Incentive Shares
28 April 2022
N/A
Number
granted
400,000
Performance
conditions
Vesting date
Service
September 2022
Incentive Shares
28 April 2022
N/A
200,000
Service
March 2023
Incentive Shares
28 April 2022
N/A
200,000
Service
July 2023
Performance Rights 28 April 2022
N/A
500,000
Share price
Performance Rights 28 April 2022
N/A
500,000
Share price
Performance Rights 28 April 2022
N/A
500,000
Share price
Andrew Skelton LTI rights
26 April 2021
LTI rights
1 July 2020
Ton van Hoof
LTI rights
26 April 2021
LTI rights
1 July 2020
Adrian
Lucchese
LTI rights
26 April 2021
LTI rights
1 July 2020
Deon Ludick
LTI rights
26 April 2021
LTI rights
1 July 2020
Stuart Overell LTI rights
26 April 2021
LTI rights
1 July 2020
1 July 2020 –
30 June 2023
1 July 2019 –
30 June 2022
1 July 2020 –
30 June 2023
1 July 2019 –
30 June 2022
1 July 2020 –
30 June 2023
1 July 2019 –
30 June 2022
1 July 2020 –
30 June 2023
1 July 2019 –
30 June 2022
1 July 2020 –
30 June 2023
1 July 2019 –
30 June 2022
370,370
275,862
185,185
137,931
185,185
137,931
185,185
137,931
185,185
137,931
5. Non-Executive Director fee arrangements
Fees in FY22
Absolute TSR hurdle
and indexed TSR
Absolute TSR hurdle
and indexed TSR
Absolute TSR hurdle
and indexed TSR
Absolute TSR hurdle
and indexed TSR
Absolute TSR hurdle
and indexed TSR
Absolute TSR hurdle
and indexed TSR
Absolute TSR hurdle
and indexed TSR
Absolute TSR hurdle
and indexed TSR
Absolute TSR hurdle
and indexed TSR
Absolute TSR hurdle
and indexed TSR
June 2026 Sunset
Date
June 2026 Sunset
Date
June 2026 Sunset
Date
September 2023
September 2022
September 2023
September 2022
September 2023
September 2022
September 2023
September 2022
September 2023
September 2022
During FY22, Non-Executive Director (NED) fees were paid out of an aggregate fee pool of $1.3m per annum
which was approved by shareholders on 26 November 2014. The fee pool is inclusive of statutory entitlements
(including superannuation).
NED fees consist of Board fees and committee fees. The payment of additional fees for serving on a
committee recognises the additional time commitment required by NEDs. The Chairman of the Board is not
eligible for additional fees for serving on committees. Fees are not linked to performance and no STI or LTI is
provided to NEDs.
In June 2021 the Board reviewed the NED fees for FY22 and determined to increase the amount of NED fees
in line with the recent legislated increase to statutory superannuation guarantee contributions and to
increase the annual NED fees by CPI.
The table below summarises NED fees payable in respect of FY22.
30
A2B Annual Report 2022
23
Remuneration Report (continued)
A2B Australia Limited
and its Controlled Entities
Table 7: FY22 Board and Committee fees
Board
Audit and Risk Committee
Remuneration and Nominations Committee
Annual Financial Report
Year Ended 30 June 2022
Chairman $
235,659
21,898
21,898
Member $
107,402
11,470
11,470
The Board and committee fees outlined in the table above include statutory superannuation contributions.
NEDs do not receive retirement benefits other than statutory superannuation.
Fees in FY23
For FY23, the Board has implemented a 15% reduction to Non-Executive Director Board and Committee fee
arrangements, consistent with the cost reduction initiatives implemented across the A2B operations in FY22.
In addition, the Board agreed to decrease the number of Directors by one – taking the total number of Non-
Executive Directors to three and to also reduce the aggregate Non-Executive Director fee pool from $1.3
million per annum (which was approved by shareholders on 26 November 2014) to $1.0 million per annum.
NED remuneration in FY22
The statutory remuneration of each NED for FY22 is set out in the table below.
Table 8: FY22 NED remuneration (statutory)
Paul Oneile
Chairman
David Grant2
Non-executive Director
Jennifer Horrigan3
Non-executive Director
Louise McCann4
Non-executive Director
Clifford Rosenberg5
Non-executive Director
Total fees
20221
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Short-term benefits
Post-employment benefits
Salary and fees $
Superannuation contributions $
142,824
206,397
177,973
134,936
14,282
19,608
15,490
12,819
134,509
-
100,694
-
85,315
123,293
8,532
11,713
130,342
-
125,000
-
670,963
690,320
38,304
44,140
Total $
157,106
226,005
193,463
147,755
134,509
100,694
93,847
135,006
130,342
125,000
709,267
734,460
Includes amounts paid from 1 July 2021 to 7 February 2022 (being the date on which Mr Oneile retired as a Director).
1.
2. The Board determined that Mr Grant be paid a special exertion payment of $50,000 for the work he performed for the Company as interim Chairman.
3. Ms Horrigan's fees were invoiced and paid monthly to Scarp Consulting Pty Ltd as trustee for The MacDonald Horrigan Family Trust.
4.
5. Mr Rosenberg’s fees were invoiced and paid monthly to Rosenberg Trading Pty Ltd, a personal services company nominated by him.
Includes amounts paid from 1 July 2021 to 2 March 2022 (being the date on which Ms McCann retired as a Director).
6. Additional disclosures relating to securities
Shares
In order to align the interests of NEDs with the Company’s shareholders, the Board has adopted a policy
that requires each NED to accumulate a minimum shareholding equivalent to their annual base fee. NEDs
have three years from their appointment date to meet the expected level of share ownership.
Executive KMP are granted rights which convert into shares on the achievement of performance measures.
As indicated on page 32, no rights vested during FY22.
The relevant interests of each KMP (and their related parties) in the share capital of the Company for FY22
are detailed in the table below.
24
31
A2B Australia Limited
and its Controlled Entities
Table 9: Shareholdings of KMP and their related parties
Annual Financial Report
Year Ended 30 June 2022
Balance 1 July 2021
Received as
remuneration
Net other change
Balance 30 June 2022
Direct
interest
Indirect
interest
Direct
interest
Indirect
interest
Direct
interest
Indirect
interest
Direct
interest
Indirect
interest
Non-Executive
Director
Paul Oneile1
David Grant
Jennifer Horrigan
Louise McCann2
Clifford Rosenberg3
Executive
Mark Bayliss
Olivia Barry
Ton van Hoof
Adrian Lucchese
Deon Ludick
Tanya Steigerwalt
Stuart Overell
50,000
56,968
27,000
-
-
-
-
-
14,139
3,856
-
-
-
-
-
48,800
111,307
-
-
-
-
-
-
-
Andrew Skelton4
20,861
45,938
-
-
-
-
-
800,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35,000
50,000
91,968
8,000
-
-
-
-
3,807
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35,000
-
-
-
800,000
3,807
14,139
3,856
-
-
-
-
-
48,800
111,307
-
-
-
-
-
-
-
20,861
45,938
1. The balance of shares as at the date of Mr Oneile’s Appendix 3Z. The indirect shares are 56,968 fully paid ordinary shares held by PNM Management Pty
Ltd atf the Kyambra Superannuation Fund and 35,000 fully paid ordinary shares held by Kyambra Management Pty Ltd.
2. The balance of shares as at the date of Ms McCann’s Appendix 3Z. The indirect shares are 48,800 fully paid ordinary shares held by Tyrrell McCann Pty
Ltd atf the Tyrrell McCann Superannuation Fund.
3. The indirect shares are 111,307 fully paid ordinary shares held by Cliffro Pty Ltd atf the Cliffro Trust.
4. The balance of the shares held are as at the date of Mr Skelton’s Appendix 3Z. The indirect shares are 45,938 fully paid ordinary shares are held by Julie
Skelton.
Rights
The table below details the rights and incentive shares granted to executive KMP as part of their
remuneration during FY22.
Table 10: Rights granted to executive KMP
Executive
Mark Bayliss
Olivia Barry
Balance 1
July 2021
0
0
Ton van Hoof
412,802
Adrian Lucchese
523,913
Deon Ludick
496,135
Tanya Steigerwalt
0
Stuart Overell
523,913
Andrew Skelton
1,047,826
Number of
rights
granted in
FY22
Value of
rights
granted in
FY22
1,500,000
1,315,0001
0
0
0
0
0
-
0
0
0
0
0
0
0
0
Net
other
change
Vested
Value of
rights
vested
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Lapsed
0
0
Balance 30
June 20222
1,500,000
0
89,686
323,116
200,797
323,116
173,019
323,116
0
0
200,797
323,116
401,594
646,232
1. The fair value of the grant of the Performance Rights has been calculated as at the date of grant by an external adviser to be $1,315,000 comprising
Tranche 1 ($510,000, or $1.02 per Performance Right), Tranche 2 ($435,000, or $0.87 per Performance Right) and Tranche 3 ($370,000, or $0.74 per
Performance Right). These valuations have been calculated using assumptions underlying the Black-Scholes methodology to produce a Monte-Carlo
simulation model, which allows for the incorporation of the share price
based vesting conditions that must be met before the Performance Rights will
vest to Mr Bayliss. The calculation included the following assumptions: a share price of $1.29 (being the closing price on 28 April 2022), a term of 3 years,
a risk-free rate of 2.68% and volatility (p.a.) of 37%.
‑
2. As at the end of the reporting period, no member of the KMP was holding any vested and exercisable or vested and unexercisable rights.
32
A2B Annual Report 2022
25
Remuneration Report (continued)
A2B Australia Limited
and its Controlled Entities
7. Transactions with KMP and their related parties
Annual Financial Report
Year Ended 30 June 2022
No loans were made, guaranteed, or secured, to KMP or any of their related parties.
There were no transactions between the Company (or any of its controlled entities) and any KMP (or their
related parties) other than those within the normal employee, customer or supplier relationship on terms no
more favourable than arms’ length. Information about these transactions would not adversely affect
investment decisions by shareholders, or the discharge of accountability by KMP.
8. Shareholder voting for the 2021 Remuneration Report
At last year’s AGM, the Company received a ‘first strike’ on its Remuneration Report for FY21, with 50.26%
of votes against the Remuneration Report. A2B has considered, and where appropriate adopted, the
feedback provided by major shareholders and other stakeholders in relation to the remuneration outcomes
for FY22 and the re-designed remuneration arrangements for FY23.
The Board will continue to review the effectiveness of the Company’s remuneration practices and their
alignment with strategic performance objectives to appropriately reward its Executives and deliver
shareholder value.
26
33
Auditor's Independence Declaration
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Lead Auditor’s Independence Declaration under
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
Section 307C of the Corporations Act 2001
To the Directors of A2B Australia Limited
To the Directors of A2B Australia Limited
I declare that, to the best of my knowledge and belief, in relation to the [audit / review] of A2B Australia
Limited for the financial year ended 30 June 2022 there have been:
5. Direct mobility and payment related expenses
I declare that, to the best of my knowledge and belief, in relation to the [audit / review] of A2B Australia
Limited for the financial year ended 30 June 2022 there have been:
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
i.
i.
ii.
KPM_INI_01
PAR_SIG_01
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
KPM_INI_01
PAR_SIG_01
PA_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
PA_NAM_01
Yours faithfully
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
Yours faithfully
KPMG
KPMG
Cameron Slapp
Partner
Sydney
Cameron Slapp
23 August 2022
Partner
Sydney
23 August 2022
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under
license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards
Legislation.
28
Consolidated Financial Statements
For the year ended 30 June 2022
Table of Contents
Consolidated Financial Statements
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flow
Consolidated statement of changes in equity
Notes to the consolidated financial statements
1. Reporting entity
2. Basis of preparation
3. Revenue and other income
4. Finance income and expenses
6.
Income tax expense
7. Trade and other receivables
8.
Inventories
9. Financial assets
10. Property, plant and equipment
11. Deferred tax assets and liabilities
12. Taxi plate licences
13. Goodwill
14. Intellectual property
16. Loans and borrowings
17. Provisions
18. Share capital and Reserves
19. Dividends
20. Earnings per share
21. Dividend franking balance
22. Parent entity disclosures
23. Deed of Cross Guarantee
15. Contract liabilities, trade and other payables
24. Related Party and Key Management Personnel disclosures
25. Remuneration of auditors
26. Particulars relating to controlled entities
27. Capital expenditure commitments
28. Contingencies
29. Leases
30. Notes to the consolidated statement of cash flow
31. Financial instruments and financial risk management
32. Operating segment
35
37
38
39
40
41
41
42
43
46
46
47
48
50
51
51
53
54
56
58
60
61
62
63
65
65
65
66
67
69
69
70
71
71
71
73
75
79
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under
license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards
Legislation.
A2B Annual Report 2022
34
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Consolidated Financial Statements
Consolidated Financial Statements
For the year ended 30 June 2022
For the year ended 30 June 2022
Table of Contents
Consolidated Financial Statements
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flow
Consolidated statement of changes in equity
Notes to the consolidated financial statements
1. Reporting entity
2. Basis of preparation
3. Revenue and other income
4. Finance income and expenses
5. Direct mobility and payment related expenses
6.
Income tax expense
7. Trade and other receivables
8.
Inventories
9. Financial assets
10. Property, plant and equipment
11. Deferred tax assets and liabilities
12. Taxi plate licences
13. Goodwill
14. Intellectual property
15. Contract liabilities, trade and other payables
16. Loans and borrowings
17. Provisions
18. Share capital and Reserves
19. Dividends
20. Earnings per share
21. Dividend franking balance
22. Parent entity disclosures
23. Deed of Cross Guarantee
24. Related Party and Key Management Personnel disclosures
25. Remuneration of auditors
26. Particulars relating to controlled entities
27. Capital expenditure commitments
28. Contingencies
29. Leases
30. Notes to the consolidated statement of cash flow
31. Financial instruments and financial risk management
32. Operating segment
35
37
38
39
40
41
41
42
43
46
46
47
48
50
51
51
53
54
56
58
60
61
62
63
65
65
65
66
67
69
69
70
71
71
71
73
75
79
28
35
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Consolidated statement of comprehensive income
For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
33. Share-based payment – Long term incentive
34. Subsequent event
Directors’ Declaration
Independent Auditor’s Report
81
83
84
85
Continuing operations
Revenue
Other income
Direct mobility and payment related expenses
Employee benefits expenses
Advertising and marketing expenses
Technology and communications expenses
Depreciation and amortisation expenses
Impairment charges
Other expenses
Results from operating activities
Finance income
Finance costs
Net finance costs
(Loss) before income tax
Income tax benefit
(Loss) after tax for the year
Notes
3
3
5
4
6
10, 12 & 14
2022
$'000
2021*
$'000
(Re-stated)
126,138
2,637
128,775
113,373
17,992
131,365
(21,160)
(66,729)
(11,221)
(11,288)
(16,177)
(10,249)
(30,451)
(38,500)
(23,765)
(62,990)
(10,892)
(10,518)
(17,917)
(1,879)
(27,944)
(24,540)
4
(1,222)
(1,218)
16
(1,079)
(1,063)
(39,718)
(25,603)
11,900
(27,818)
7,537
(18,066)
(76)
-
(76)
128
(233)
(105)
(27,894)
(18,171)
(28,118)
300
(18,274)
208
(27,818)
(18,066)
(28,194)
300
(27,894)
(18,379)
208
(18,171)
30
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Foreign exchange translation differences, net of tax
Items that will not be reclassified to profit or loss:
Net change in fair value of financial assets
Other comprehensive (loss) for the year, net of income tax
Total comprehensive (loss) for the year
Total comprehensive (loss) for the year
Attributable to:
Owners of the Company
Non-controlling interest
Total (loss) for the year
Owners of the Company
Non-controlling interest
Earnings per share
Basic earnings per share
Diluted earnings per share
of the expenses. Refer to Note 2.
statements.
*The comparative information has been re-stated, certain operating expenses have been reclassified to better reflect the nature
20
20
(23.3 cents)
(23.3 cents)
(15.2 cents)
(15.2 cents)
The consolidated statement of comprehensive income is to be read in conjunction with the notes to the consolidated financial
36
A2B Annual Report 2022
29
Consolidated Financial Statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Consolidated statement of comprehensive income
Consolidated statement of comprehensive income
For the year ended 30 June 2022
For the year ended 30 June 2022
Continuing operations
Revenue
Other income
Direct mobility and payment related expenses
Employee benefits expenses
Advertising and marketing expenses
Technology and communications expenses
Depreciation and amortisation expenses
Impairment charges
Other expenses
Results from operating activities
Finance income
Finance costs
Net finance costs
(Loss) before income tax
Income tax benefit
(Loss) after tax for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Foreign exchange translation differences, net of tax
Items that will not be reclassified to profit or loss:
Net change in fair value of financial assets
Other comprehensive (loss) for the year, net of income tax
Total comprehensive (loss) for the year
Attributable to:
Owners of the Company
Non-controlling interest
Total (loss) for the year
Owners of the Company
Non-controlling interest
Total comprehensive (loss) for the year
Earnings per share
Basic earnings per share
Diluted earnings per share
Notes
3
3
5
10, 12 & 14
4
6
2022
$'000
2021*
$'000
(Re-stated)
126,138
2,637
128,775
113,373
17,992
131,365
(21,160)
(66,729)
(11,221)
(11,288)
(16,177)
(10,249)
(30,451)
(38,500)
(23,765)
(62,990)
(10,892)
(10,518)
(17,917)
(1,879)
(27,944)
(24,540)
4
(1,222)
(1,218)
16
(1,079)
(1,063)
(39,718)
(25,603)
11,900
(27,818)
7,537
(18,066)
(76)
128
-
(76)
(27,894)
(233)
(105)
(18,171)
(28,118)
300
(27,818)
(28,194)
300
(27,894)
(18,274)
208
(18,066)
(18,379)
208
(18,171)
20
20
(23.3 cents)
(23.3 cents)
(15.2 cents)
(15.2 cents)
*The comparative information has been re-stated, certain operating expenses have been reclassified to better reflect the nature
of the expenses. Refer to Note 2.
The consolidated statement of comprehensive income is to be read in conjunction with the notes to the consolidated financial
statements.
30
37
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Consolidated statement of financial position
Consolidated statement of financial position
As at 30 June 2022
As at 30 June 2022
Notes
2022
$'000
2021
$'000
Notes
2022
$'000
2021
$'000
Current assets
Cash and cash equivalents
Trade and other receivables
Current tax assets
Inventories
Prepayments
Total current assets
Non-current assets
Trade and other receivables
Financial assets
Property, plant and equipment
Right-of-use assets
Net deferred tax assets
Taxi plate licences
Goodwill
Intellectual property
Total non-current assets
Total assets
Current liabilities
Contract liabilities, trade and other payables
Loans and borrowings
Lease liabilities
Current tax liabilities
Deferred income
Provisions
Total current liabilities
Non-current liabilities
Loans and borrowings
Lease liabilities
Deferred income
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Other reserves
Profits reserve
Retained losses
Total equity attributable to owners of the Company
Non-controlling interest
Total equity
30
7
8
7
9
10
29
11
12
13
14
15
16
29
17
16
29
3
17
18
18
11,874
12,295
60,254
44,620
- 5,604
3,271
3,667
3,629
3,322
68,998
79,538
5,303
977
23,673
6,517
20,507
1,349
27,487
12,722
98,535
178,073
5,841
977
32,989
12,716
8,218
1,349
27,487
19,414
108,991
177,989
55,880
1,649
1,556
310
118
8,112
67,625
39,654
1,864
1,999
-
118
8,117
51,752
17,274
5,530
236
1,268
24,308
91,933
86,140
-
11,318
354
1,581
13,253
65,005
112,984
138,325
2,016
18,823
(74,428)
84,736
1,404
86,140
138,325
959
18,823
(46,310)
111,797
1,187
112,984
The consolidated statement of financial position is to be read in conjunction with the notes to the consolidated
financial statements
Net cash (used in) operating activities
3300
(6,244)
(4,851)
Consolidated statement of cash flows
For the year ended 30 June 2022
Cash flows from operating activities
Receipts from customers and others
Payments to suppliers, licensees and employees
Dividends received
Interest received
Finance costs paid
Income tax received / (paid)
Cash flows from investing activities
Purchase of property, plant and equipment
Payments for development of intellectual property
Proceeds from sale of property, plant and equipment
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Payment of lease liabilities
Dividends paid to non-controlling interest in subsidiaries
Net cash provided by / (used in) financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at 1 July
Effect of movements in exchange rates on cash held
733,673
658,710
(744,600)
(662,458)
167
-
1
16
(1,014)
(1,040)
5,529
(79)
(4,044)
(2,938)
(4,731)
(4,253)
449
1,029
(8,326)
(6,162)
17,347
5,132
(288)
(2,021)
(5,298)
(2,576)
(83)
(67)
14,955
(2,809)
385
(13,822)
11,874
25,759
36
(63)
Cash and cash equivalents at 30 June
3300
12,295
11,874
The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated financial statements.
38
A2B Annual Report 2022
31
32
A2B Australia Limited
and its Controlled Entities
Consolidated statement of cash flows
Consolidated statement of cash flows
For the year ended 30 June 2022
For the year ended 30 June 2022
Annual Financial Report
Year Ended 30 June 2022
Cash flows from operating activities
Receipts from customers and others
Payments to suppliers, licensees and employees
Dividends received
Interest received
Finance costs paid
Income tax received / (paid)
Net cash (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Payments for development of intellectual property
Proceeds from sale of property, plant and equipment
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Payment of lease liabilities
Dividends paid to non-controlling interest in subsidiaries
Net cash provided by / (used in) financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at 1 July
Effect of movements in exchange rates on cash held
Cash and cash equivalents at 30 June
Notes
2022
$'000
2021
$'000
733,673
(744,600)
167
1
(1,014)
5,529
658,710
(662,458)
-
16
(1,040)
(79)
3300
(6,244)
(4,851)
(4,044)
(4,731)
449
(8,326)
(2,938)
(4,253)
1,029
(6,162)
17,347
(288)
(2,021)
(83)
14,955
5,132
(5,298)
(2,576)
(67)
(2,809)
385
11,874
36
12,295
(13,822)
25,759
(63)
11,874
3300
The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated financial statements.
32
39
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Consolidated statement of changes in equity
Consolidated statement of changes in equity
For the year ended 30 June 2022
For the year ended 30 June 2022
Share
capital
$'000
Other
reserves
$'000
Profits
reserves
$'000
Retained
losses
$'000
Notes
Non-
controlling
interest
$'000
Total
equity
$'000
Balance at 1 July 2021
138,325
959
18,823
(46,310)
1,187
112,984
Total comprehensive (loss)
for the year
Profit / (Loss) for the year
Other comprehensive loss
Total comprehensive (loss)
for the year
Transactions with owners in
their capacity as owners
Share-based payments
Dividends to non-controlling
interest in subsidiaries
- - - (28,118)
300
(27,818)
2022 was involved in providing technology, payment and Taxi related services.
- (76)
-
- - (76)
- (76)
- (28,118)
300 (27,894)
33
- 1,133
-
-
- 1,133
-
- -
- (83)
(83)
Balance at 30 June 2022
138,325
2,016
18,823 (74,428)
1,404
86,140
The Consolidated Financial Statements were authorised for issue by the Board of Directors on 23 August
- 1,133
- -
(83)
1,050
Accounting Standards Board (IASB).
Balance at 1 July 2020
138,325
433
18,823 (28,036)
1,046
130,591
Total comprehensive (loss)
for the year
Profit / (Loss) for the year
- - - (18,274)
208
(18,066)
Other comprehensive loss
- (105)
-
-
- (105)
Total comprehensive (loss)
for the year
Transactions with owners in
their capacity as owners
- (105)
-
(18,274)
208
(18,171)
Share-based payments
33
-
631
-
-
-
631
Dividends to non-controlling
interest in subsidiaries
- - -
- (67)
(67)
-
631
-
-
(67)
564
months from the date of which the financial report is authorised for issue.
Balance at 30 June 2021
138,325
959
18,823
(46,310)
1,187
112,984
The consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated financial
statements
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Notes to the consolidated financial statements
For the year ended 30 June 2022
1. Reporting entity
A2B Australia Limited (the Company) is a company domiciled in Australia. The address of the
Company's registered office is 9-13 O’Riordan Street, Alexandria. The Consolidated Financial
Statements as at and for the year ended 30 June 2022 comprise the Company and its subsidiaries
(together referred to as the Group). The Group is a for-profit entity and during the year ended 30 June
The Consolidated Financial Statements are general purpose financial statements which have been
prepared in accordance with Australian Accounting Standards adopted by the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001. The Consolidated Financial statements
comply with International Financial Reporting Standards (IFRS) adopted by the International
2. Basis of preparation
Statement of compliance
2022.
Going concern
The financial report has been prepared on a going concern basis. In determining the appropriateness
of the basis of preparation, the Directors have considered the impact of the drop in EBITDA from
FY2021, which reflects the impact of COVID-19 on the Group’s operations. However, the operating
environment has shown a significant improvement over the last 4 months, with opening of State
borders and resumption of domestic and international travel. Management has now rolled out the
Group’s new strategy “Better before Bigger”, where there is a renewed focus on the core business,
divesture of non-core and underperforming businesses and a cost reduction program. The cost
reduction program is being implemented resulting in reduced employee costs, reduced marketing cost
and reduced overheads generating savings in FY23. Therefore, management is confident that budget
targets for FY23 are achievable and will turn the business back into profit and in particular the next 12
As of 30 June 2022, the Group had access to $20.1 million in liquidity, with $12.3 million in cash and $7.7
million of undrawn bank facilities. The Group’s existing working capital facility has a limit of $25 million
and expires in September 2023. Post balance date, the term of the working capital facility was renewed
and reduced, expiring 30 September 2023. Management has prepared cash flow forecast scenarios
based on the Group’s new strategic plan. The business is expected to improve its cash flow position
over the course of FY23 supported by the strategic initiatives outlined earlier. These cash flow forecasts
demonstrate that the Group has sufficient cash and undrawn credit facilities to enable the Group to
meet its obligations as they fall due.
Therefore, the directors believe that it remains appropriate to prepare the financial statements on a
going concern basis and have a reasonable expectation that the Group will comply with the
requirements of its debt facilities during the next 12 months from the date of which the financial report
is authorised for issue.
Interests in land and buildings
33
Group’s interest in land and buildings was $10,000,000 as at 30 June 2022. In June 2022 an independent
The Group’s interests in land and buildings are accounted for under Property, Plant and Equipment and
are measured at cost less accumulated depreciation and impairment losses. The book value of the
34
40
A2B Annual Report 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 30 June 2022
For the year ended 30 June 2022
1. Reporting entity
A2B Australia Limited (the Company) is a company domiciled in Australia. The address of the
Company's registered office is 9-13 O’Riordan Street, Alexandria. The Consolidated Financial
Statements as at and for the year ended 30 June 2022 comprise the Company and its subsidiaries
(together referred to as the Group). The Group is a for-profit entity and during the year ended 30 June
2022 was involved in providing technology, payment and Taxi related services.
2. Basis of preparation
Statement of compliance
The Consolidated Financial Statements are general purpose financial statements which have been
prepared in accordance with Australian Accounting Standards adopted by the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001. The Consolidated Financial statements
comply with International Financial Reporting Standards (IFRS) adopted by the International
Accounting Standards Board (IASB).
The Consolidated Financial Statements were authorised for issue by the Board of Directors on 23 August
2022.
Going concern
The financial report has been prepared on a going concern basis. In determining the appropriateness
of the basis of preparation, the Directors have considered the impact of the drop in EBITDA from
FY2021, which reflects the impact of COVID-19 on the Group’s operations. However, the operating
environment has shown a significant improvement over the last 4 months, with opening of State
borders and resumption of domestic and international travel. Management has now rolled out the
Group’s new strategy “Better before Bigger”, where there is a renewed focus on the core business,
divesture of non-core and underperforming businesses and a cost reduction program. The cost
reduction program is being implemented resulting in reduced employee costs, reduced marketing cost
and reduced overheads generating savings in FY23. Therefore, management is confident that budget
targets for FY23 are achievable and will turn the business back into profit and in particular the next 12
months from the date of which the financial report is authorised for issue.
As of 30 June 2022, the Group had access to $20.1 million in liquidity, with $12.3 million in cash and $7.7
million of undrawn bank facilities. The Group’s existing working capital facility has a limit of $25 million
and expires in September 2023. Post balance date, the term of the working capital facility was renewed
and reduced, expiring 30 September 2023. Management has prepared cash flow forecast scenarios
based on the Group’s new strategic plan. The business is expected to improve its cash flow position
over the course of FY23 supported by the strategic initiatives outlined earlier. These cash flow forecasts
demonstrate that the Group has sufficient cash and undrawn credit facilities to enable the Group to
meet its obligations as they fall due.
Therefore, the directors believe that it remains appropriate to prepare the financial statements on a
going concern basis and have a reasonable expectation that the Group will comply with the
requirements of its debt facilities during the next 12 months from the date of which the financial report
is authorised for issue.
Interests in land and buildings
The Group’s interests in land and buildings are accounted for under Property, Plant and Equipment and
are measured at cost less accumulated depreciation and impairment losses. The book value of the
Group’s interest in land and buildings was $10,000,000 as at 30 June 2022. In June 2022 an independent
34
41
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
valuation was completed valuing the Group’s interest in land and buildings, comprising three
properties, at $102,000,000 to $114,000,000. Please refer to Note 10 for further information. Following
the completion of the earlier announced strategic review, the Company has decided to sell two of its
properties located in Alexandria, NSW. Subsequent to the year end these properties are been actively
marketed and represent more than 90% of total value held in land and buildings.
Basis of measurement
The Consolidated Financial Statements have been prepared on the historical cost basis except for
financial assets (unlisted investments), which are measured at fair value through other comprehensive
income.
Functional and presentation currency
These Consolidated Financial Statements are presented in Australian dollars, which is the Company's
functional currency and the functional currency of the majority of the Group entities.
The Company is of a kind referred to in ASIC Corporation Instrument 2016/191 (Rounding in
Financial/Directors’ Reports) and in accordance with that Instrument, amounts in the Consolidated
Financial Statements and the Directors’ Report have been rounded off to the nearest thousand dollars,
unless otherwise stated.
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group
entities at exchange rates at the dates of the transactions.
Use of estimates and judgements
The preparation of Consolidated Financial Statements requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and in any future periods
affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amount recognised in the
Consolidated Financial Statements are described in the following notes:
Note 7 Trade and other receivables
Note 10 Property, plant and equipment
Note 12 Taxi plate licences
Note 13 Goodwill
Note 14 Intellectual property
The Group has specifically exercised judgement in evaluating the impact of COVID on the areas noted
above.
Transactions eliminated on consolidation
Intra-group balances, and any unrealised income and expenses arising from intra-group transactions,
are eliminated in preparing the Consolidated Financial Statements.
Amended Accounting Standard not yet adopted
The amended Accounting Standard below is effective for annual periods beginning after 1 July 2022
and earlier application is permitted; however, the Group has not early adopted the amended standards
in preparing these consolidated financial statements. This amended standard is not expected to have
a significant impact on the Group’s financial statements.
• Classification of Liabilities as Current or Non-current (Amendments to AASB 101)
Change in classification
During the year ended 30 June 2022, the Group updated the classification of certain operating expenses
to better reflect the nature of the expense under the Group’s new segment structure.
Comparative amounts in the consolidated statement of comprehensive income were re-stated as
follows:
Previous financial statement captions
$'000 Re-stated financial statement captions
Direct mobility and payment related
expenses
Jun 2021
$'000
(23,765)
Processing fees to networks
Brokered taxi plate license costs
Taxi operating expenses
Courier service expenses
Cost of cars and hardware sold
Other taxi related costs
Depreciation
Amortisation
Jun 2021
(4,183)
(1,323)
(6,688)
(3,450)
(5,562)
(2,559)
(6,170)
(11,747) Depreciation and amortisation expenses
(17,917)
General and administrative expenses
(33,738) Advertising and marketing expenses
(10,892)
Other expenses
(15,616)
Technology and communications expenses
(10,518)
Other expenses
(91,036)
(27,944)
(91,036)
* Other expenses includes legal & professional fees, premises costs, travel costs, bank charges and bad debt expenses
Please refer to Note 5 for further detail on Direct mobility and payment related expenses.
3. Revenue and other income
Revenue is measured based on the consideration specified in a contract with a customer and excludes
amounts collected on behalf of third parties. The Group recognises revenue when it transfers control
over a product or service to a customer.
The following is a description of the Group’s principal activities from which the Group generates its
revenue:
Payment processing revenue
Payment processing revenue is derived from payments processed through the A2B Payment System
and is disclosed net of Goods and Services Tax (GST) and third party credit card fees. Payments
processed through the A2B payments system relates to total transaction value processed, both taxi
and non-taxi volumes. As the Group acts in the capacity of an agent, the revenue represents only the
fee received on the transaction, although the Group is exposed to credit risk on the full amount of the
payments processed. Payment processing revenue is recognised at the point in time when the payment
is processed. Payment processing revenue was disclosed as Taxi service fee income in prior year.
Network subscription fee and Taxi plate licence incomes
Network subscription fee and Taxi plate licence incomes are billed every month in advance. Revenue is
recognised over the period when the services are provided. Operating revenue receipts relating to
services performed in the period beyond the current financial year are shown in the Consolidated
Statement of Financial Position as contract liabilities under the heading of Current liabilities – Contract
liabilities, trade and other payables, refer to Note 15.
Other Taxi related services income
Other Taxi related services income is generated from fit-out of vehicles as Taxis, repair and replacement
of in-vehicle Taxi equipment. Revenue is recognised over the period when the services are provided, or
42
A2B Annual Report 2022
35
36
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Change in classification
Annual Financial Report
Year Ended 30 June 2022
During the year ended 30 June 2022, the Group updated the classification of certain operating expenses
to better reflect the nature of the expense under the Group’s new segment structure.
Comparative amounts in the consolidated statement of comprehensive income were re-stated as
follows:
Previous financial statement captions
Processing fees to networks
Brokered taxi plate license costs
Taxi operating expenses
Courier service expenses
Cost of cars and hardware sold
Other taxi related costs
Depreciation
Amortisation
Jun 2021
$'000 Re-stated financial statement captions
Direct mobility and payment related
expenses
(4,183)
Jun 2021
$'000
(23,765)
(1,323)
(6,688)
(3,450)
(5,562)
(2,559)
(11,747) Depreciation and amortisation expenses
(17,917)
(6,170)
General and administrative expenses
(33,738) Advertising and marketing expenses
(10,892)
Other expenses
(15,616)
Technology and communications expenses
(10,518)
Other expenses
(91,036)
(27,944)
(91,036)
* Other expenses includes legal & professional fees, premises costs, travel costs, bank charges and bad debt expenses
Please refer to Note 5 for further detail on Direct mobility and payment related expenses.
3. Revenue and other income
Revenue is measured based on the consideration specified in a contract with a customer and excludes
amounts collected on behalf of third parties. The Group recognises revenue when it transfers control
over a product or service to a customer.
The following is a description of the Group’s principal activities from which the Group generates its
revenue:
Payment processing revenue
Payment processing revenue is derived from payments processed through the A2B Payment System
and is disclosed net of Goods and Services Tax (GST) and third party credit card fees. Payments
processed through the A2B payments system relates to total transaction value processed, both taxi
and non-taxi volumes. As the Group acts in the capacity of an agent, the revenue represents only the
fee received on the transaction, although the Group is exposed to credit risk on the full amount of the
payments processed. Payment processing revenue is recognised at the point in time when the payment
is processed. Payment processing revenue was disclosed as Taxi service fee income in prior year.
Network subscription fee and Taxi plate licence incomes
Network subscription fee and Taxi plate licence incomes are billed every month in advance. Revenue is
recognised over the period when the services are provided. Operating revenue receipts relating to
services performed in the period beyond the current financial year are shown in the Consolidated
Statement of Financial Position as contract liabilities under the heading of Current liabilities – Contract
liabilities, trade and other payables, refer to Note 15.
Other Taxi related services income
Other Taxi related services income is generated from fit-out of vehicles as Taxis, repair and replacement
of in-vehicle Taxi equipment. Revenue is recognised over the period when the services are provided, or
36
43
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
a point in time when the Group has transferred the control to the buyer through ownership, generally
when the customer has taken delivery of the goods.
Revenues
Taxi operating income
Taxi operating income is derived from the rental of vehicles to Independent Drivers. This revenue is
recognised at a point in time or over time when services are rendered, whichever is applicable.
Courier service income
Courier service income is generated from providing courier dispatch services to Customers, of which
revenue is recognised at point in time when services are rendered. Revenue is also generated from
subscriptions by courier agents, which is recognised over the period when the services are rendered.
Insurance commission revenue
Insurance commission revenue comprised of brokerage fees received from referral to insurance
products. Revenue is recognised at point in time when the referral has been fully rendered.
Hardware sales
Sales of hardware is recognised at point in time when the Group has transferred the control to the
buyer through ownership, generally when the customer has taken delivery of the goods. Hardware sales
primarily relates to sale of Taxi equipment.
Car sales income
Car sales income is generated through the sale of cars to Taxi Operators. This revenue is recognised at
a point in time when the ownership of the car is transferred to Customers.
School bus route services revenue
School bus route services revenue is based on contracts for these services with State Governments. It is
billed weekly in arrears and recognised over the period when services are rendered.
Taxi subsidy scheme revenue
The Taxi Subsidy Scheme (TSS) revenue is derived from providing services to issue TSS cards and process
Taxi travel transactions of TSS participants in some States and Territories. It is billed monthly in arrears
and is recognised over the period when services are rendered.
Software consulting and licence income
Software consulting and licence income is derived through the provision of a software license to a
licensee for the return of a fixed fee. Software consulting income is derived in relation to payment
consulting and software development. It is recognised over time when services are rendered.
Other revenue
Other revenue is generated from ancillary Taxi operations. It is recognised at a point in time or over
time, whichever is applicable, when services are rendered.
Interest on finance lease receivables
Interest earned on vehicle and insurance loans is recognised on a basis reflecting a constant periodic
return based on the lessor’s net investment outstanding in respect of the loan.
Taxi equipment and terminal rental income
Taxi equipment and terminal rental income is derived from the rental of Taxi equipment and payment
terminals. This revenue is recognised at a point in time or over time when services are rendered,
whichever is applicable.
2022
$'000
2021
$'000
25,707
22,666
42,408
31,140
2,487
1,517
125
115
1,747
3,300
9,483
11,381
3,149
4,984
917
1,069
5,711
5,569
6,382
6,042
3,986
5,291
2,611
5,394
11,849
11,314
1,610
1,387
5,286
4,884
6,896
6,271
126,138
113,373
2022
$'000
2021
$'000
2,496
17,643
2,637
17,992
Revenue from contracts with customers
Payment processing revenue
Network subscription fee income
Brokered taxi plate licence income
Owned taxi plate licence income
Other taxi related services income
Taxi operating income
Courier service income
Insurance commission revenue
Car and hardware sales income
School bus route services income
Taxi Subsidy Scheme Revenue
Software consulting and licence income
Others
Other revenue
Interest on finance lease receivables and others
Taxi equipment and terminal rental income
Total other revenue
Total revenue
Note 7 and 15, respectively.
Total revenue from contracts with customers
119,242
107,102
For more information about receivables and contract liabilities from contract with customers, refer
The Group has elected to apply the following practical expedient under AASB 15 whereby information
on future performance obligations has not been disclosed as performance obligations form part of a
contract that has an original expected duration of one year or less.
Other income
Non-operating activities
Government grants
Total other income
Government grants
received.
Gain on disposal of property, plant and equipment
141
349
The Group has recognised Government grants (JobKeeper payments, JobSaver payments and industry
stimulus support package) at their fair value where there is a reasonable assurance that grants will be
In FY22 the Group received Government grants amounting to $2,378,000 (FY21 $18,115,000) where the
amount of $2,496,000 is presented as part of other income (FY21 $17,643,000) and the amount of
44
A2B Annual Report 2022
37
38
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Revenues
Revenue from contracts with customers
Payment processing revenue
Network subscription fee income
Brokered taxi plate licence income
Owned taxi plate licence income
Other taxi related services income
Taxi operating income
Courier service income
Insurance commission revenue
Car and hardware sales income
School bus route services income
Taxi Subsidy Scheme Revenue
Software consulting and licence income
Others
Annual Financial Report
Year Ended 30 June 2022
2022
$'000
2021
$'000
25,707
22,666
42,408
31,140
2,487
1,517
125
115
1,747
3,300
9,483
11,381
3,149
4,984
917
1,069
5,711
5,569
6,382
6,042
3,986
5,291
2,611
5,394
11,849
11,314
Total revenue from contracts with customers
119,242
107,102
Other revenue
Interest on finance lease receivables and others
Taxi equipment and terminal rental income
Total other revenue
Total revenue
1,610
1,387
5,286
4,884
6,896
6,271
126,138
113,373
For more information about receivables and contract liabilities from contract with customers, refer
Note 7 and 15, respectively.
The Group has elected to apply the following practical expedient under AASB 15 whereby information
on future performance obligations has not been disclosed as performance obligations form part of a
contract that has an original expected duration of one year or less.
Other income
Non-operating activities
Government grants
2022
$'000
2021
$'000
2,496
17,643
Gain on disposal of property, plant and equipment
141
349
Total other income
Government grants
2,637
17,992
The Group has recognised Government grants (JobKeeper payments, JobSaver payments and industry
stimulus support package) at their fair value where there is a reasonable assurance that grants will be
received.
In FY22 the Group received Government grants amounting to $2,378,000 (FY21 $18,115,000) where the
amount of $2,496,000 is presented as part of other income (FY21 $17,643,000) and the amount of
38
45
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
$236,000 is recognised as deferred income (FY21: $354,000) as it is related to the capitalised
development costs and amortised over the useful life of the projects.
Total turnover
Total turnover does not represent revenue in accordance with Australian Accounting Standards. Total
turnover represents the value of Taxi hire charges (fares) paid through the Cabcharge Payment System
plus Cabcharge's Taxi service fee plus the Group’s revenue from other sources. The Group's credit risk is
based on turnover rather than revenue.
The receipts from customers and others as disclosed in the consolidated statement of cash flows
includes the total turnover.
4. Finance income and expenses
Finance income comprises interest income on funds invested and foreign currency gains. Interest
income is recognised as it accrues using the effective interest method.
Income tax expense comprises current and deferred tax. Income tax expense is recognised except to
the extent that it relates to a business combination or items recognised directly in equity or in other
Finance income
Interest income
Total finance income
5. Direct mobility and payment related expenses
Direct mobility and payment related expenses
Processing fees to networks
Brokered Taxi plate license costs
Taxi operating expenses
Courier service expenses
Cost of cars and hardware sold
Other Taxi related costs
Processing fees to networks
2022
$'000
2021
$'000
4
16
4
16
Jun 2022
Jun 2021
$'000
$'000
(3,652)
(4,183)
(2,059)
(1,323)
(5,427)
(6,688)
(1,979)
(3,450)
(5,507)
(5,562)
(2,536)
(2,559)
(21,160)
(23,765)
Processing fees to networks are fees paid to Taxi Networks and Drivers relating to payments processed
through the A2B Payment System.
Brokered taxi license plate costs
Brokered taxi license plate costs consists of taxi licence plate fees paid to Taxi licence owners and
Government.
Taxi operating expenses
Taxi operating expenses are all running expenses related to operating A2B’s owned fleet of taxis. This
fleet makes up a small proportion (<5%) of all vehicles affiliated with A2B’s network.
Courier service expenses are all expenses incurred by the Group related to the provision of courier
The cost of cars and hardware sold represents cost of goods sold, the cost of acquiring cars and
Other Taxi related costs include all costs related to fitting out of vehicles as Taxis.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
A2B Australia Limited and its wholly owned Australian resident subsidiaries form a tax consolidated
group. The current tax rate applicable to the group is 30%.
Courier service expenses
dispatch services.
Cost of cars and hardware sold
hardware that the Group sells.
Other Taxi related costs
6. Income tax expense
comprehensive income.
years.
Amounts recognised in profit and loss
Current income tax benefit
Current year
Adjustment for prior years
Deferred tax expense
Origination and reversal of temporary differences
Utilisation of previously unbooked tax losses
Total income tax (benefit)
2022
$'000
2021
$'000
(13,002)
(6,517)
34
(398)
(12,968)
(6,915)
1,296
(228)
(519)
(103)
(11,900)
(7,537)
46
A2B Annual Report 2022
39
40
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Courier service expenses
Annual Financial Report
Year Ended 30 June 2022
Courier service expenses are all expenses incurred by the Group related to the provision of courier
dispatch services.
Cost of cars and hardware sold
The cost of cars and hardware sold represents cost of goods sold, the cost of acquiring cars and
hardware that the Group sells.
Other Taxi related costs
Other Taxi related costs include all costs related to fitting out of vehicles as Taxis.
6. Income tax expense
Income tax expense comprises current and deferred tax. Income tax expense is recognised except to
the extent that it relates to a business combination or items recognised directly in equity or in other
comprehensive income.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
years.
A2B Australia Limited and its wholly owned Australian resident subsidiaries form a tax consolidated
group. The current tax rate applicable to the group is 30%.
Amounts recognised in profit and loss
Current income tax benefit
Current year
Adjustment for prior years
Deferred tax expense
Origination and reversal of temporary differences
Utilisation of previously unbooked tax losses
Total income tax (benefit)
2022
$'000
2021
$'000
(13,002)
(6,517)
34
(398)
(12,968)
(6,915)
1,296
(228)
(519)
(103)
(11,900)
(7,537)
40
47
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Numeric of reconciliation between tax expense and pre-tax profit
Profit before tax
Prima-facie income tax using the corporate tax rate of 30% (2020:
30%)
Effect of tax rates in foreign jurisdiction
Add tax effect of:
Non-deductible depreciation
Non-allowable impairment charges
Other non-allowable items
Less tax effect of:
Rebateable fully franked dividends
Utilisation of previously unbooked tax losses
Adjustment for prior years - tax payable
Income tax (benefit)
Effective tax rate on pre-tax profit
Amounts recognised in other comprehensive income
2022
$'000
2021
$'000
(39,718)
(25,603)
(11,915)
(7,681)
(117)
(85)
305
-
60
(39)
(228)
34
213
564
23
(70)
(103)
(398)
(11,900)
(7,537)
30.0%
29.4%
Items that may be reclassified
subsequently to profit or loss:
Foreign exchange translation
differences
Items that will not be
reclassified to profit or loss:
Net change in fair value of
financial assets
2022
Tax
(expense)
benefit
Before
tax
Net of
tax
Before
tax
2021
Tax
(expense)
benefit
Net of
tax
$'000
$'000
$'000
$'000
$'000
$'000
76
76
-
-
76
-
-
-
-
-
76
76
(128)
(128)
-
(128)
-
(128)
-
-
76
333
333
205
(100)
(100)
(100)
233
233
105
7. Trade and other receivables
Trade receivables are recognised initially at the value of the invoice sent to the Customer and
subsequently at amortised cost using the effective interest method. The amortised cost is reduced by
impairment losses. Interest income, foreign exchange gains and losses are recognised in profit or loss.
Any gains or losses on derecognition is recognised in profit or loss. The Group derecognises a financial
asset when contractual rights to the cash flows from the financial assets expire, or it transfers the
rights to receive the contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial assets are transferred or in which the Group neither transfers nor
retains substantially all of the risks and rewards of ownership and it does not retain control of the
financial asset.
41
48
A2B Annual Report 2022
When the Group is the lessor in a lease agreement that transfers substantially all of the risks and
rewards incidental to ownership of an asset to the lessee, the arrangement is classified as a finance
lease and a receivable equal to the net investment in the lease is recognised and presented within trade
Finance lease receivables
and other receivables.
Impairment
The Group has considered the increased risk arising from the economic impacts of the COVID-19
pandemic. The Group has specifically assessed the circumstances of individual customers in the current
environment. Specific doubtful debt provision accounts for most of the Group's allowance for
impairment as at 30 June 2022.
In addition, the Group recognises an allowance for expected credit losses using the simplified approach
allowed under AASB 9. Expected credit losses are based on the difference between the contractual cash
flows due and all the cash flows that the Group expects to receive. The collective loss allowance is
determined based on the historical default rate.
Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable
expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually
makes an assessment with respect to the timing and amount of write-off based on whether there is a
reasonable expectation of recovery. The Group expects no significant recovery from the amount written
off. However, financial assets that are written off could still be subject to enforcement activities in
order to comply with the Group's procedures for recovery of amounts due.
Current
Trade receivables
Accumulated impairment losses
Finance lease receivables
Other receivables
Non-current
Finance lease receivables
Movement in allowance for impairment
Opening balance
Net remeasurement in allowance for impairment
Amount written off as uncollectable
Closing balance
2022
$'000
55,216
(6,937)
3,356
8,619
2021
$'000
42,688
(7,366)
3,237
6,061
60,254
44,620
5,303
5,303
5,841
5,841
(7,366)
(1,973)
2,402
(6,323)
(1,106)
63
(6,937)
(7,366)
42
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Finance lease receivables
Annual Financial Report
Year Ended 30 June 2022
When the Group is the lessor in a lease agreement that transfers substantially all of the risks and
rewards incidental to ownership of an asset to the lessee, the arrangement is classified as a finance
lease and a receivable equal to the net investment in the lease is recognised and presented within trade
and other receivables.
Impairment
The Group has considered the increased risk arising from the economic impacts of the COVID-19
pandemic. The Group has specifically assessed the circumstances of individual customers in the current
environment. Specific doubtful debt provision accounts for most of the Group's allowance for
impairment as at 30 June 2022.
In addition, the Group recognises an allowance for expected credit losses using the simplified approach
allowed under AASB 9. Expected credit losses are based on the difference between the contractual cash
flows due and all the cash flows that the Group expects to receive. The collective loss allowance is
determined based on the historical default rate.
Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable
expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually
makes an assessment with respect to the timing and amount of write-off based on whether there is a
reasonable expectation of recovery. The Group expects no significant recovery from the amount written
off. However, financial assets that are written off could still be subject to enforcement activities in
order to comply with the Group's procedures for recovery of amounts due.
Current
Trade receivables
Accumulated impairment losses
Finance lease receivables
Other receivables
Non-current
Finance lease receivables
Movement in allowance for impairment
Opening balance
Net remeasurement in allowance for impairment
Amount written off as uncollectable
Closing balance
2022
$'000
55,216
(6,937)
3,356
8,619
2021
$'000
42,688
(7,366)
3,237
6,061
60,254
44,620
5,303
5,303
5,841
5,841
(7,366)
(1,973)
2,402
(6,323)
(1,106)
63
(6,937)
(7,366)
42
49
A2B Australia Limited
and its Controlled Entities
Ageing of trade receivables
Annual Financial Report
Year Ended 30 June 2022
2022
2021
Gross
Impairment
Net
Gross
Impairment
Not past due
Past due 1 - 30 days
Past due 31 - 60 days
Past due 61 - 90 days
$'000
44,060
3,162
739
354
$'000
(415)
(352)
(489)
(293)
Past due over 90 days
6,905
(5,392)
$'000
43,645
2,810
250
61
1,513
$'000
27,773
3,025
2,178
3,055
6,657
$'000
(312)
(406)
(267)
(279)
(6,102)
Net
$'000
27,461
2,619
1,911
2,776
555
55,220
(6,941)
48,279
42,688
(7,366)
35,322
The Group’s credit risk management policies are outlined in Note 31. There have been no changes to
the credit risk management policies during the year.
Finance lease receivables
2022
2021
Future
minimum
lease
payments
Interest
Present
value of
minimum
lease
payments
Future
minimum
lease
payments
Interest
Present
value of
minimum
lease
payments
$'000
$'000
$'000
$'000
$'000
$'000
Less than one year
Between one and five years
4,080
5,849
724
546
3,356
5,303
4,068
6,616
831
775
3,237
5,841
9,929
1,270
8,659
10,684
1,606
9,078
There have been no unguaranteed residual values. No lease payments are considered uncollectable at
the reporting date.
No credit terms have been re-negotiated with Customers. Collateral is held in the case of finance lease
receivables, where the Group holds a lien over the leased asset. The market value of such collateral is
not expected to vary materially from the net investment value of the finance lease receivables.
There has been no change in credit risk policies during the financial year.
8. Inventories
Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-in,
first-out basis and include direct materials and the cost of purchase. Net realisable value is the
estimated selling price in the ordinary course of business, less the estimated costs of completion and
selling expenses.
Motor vehicles - at cost
Parts, safety cameras and sundries - at cost
2022
$'000
769
2,898
3,667
2021
$'000
418
2,853
3,271
In 2022, inventories of $7,826,000 (2021: $7,743,000) were recognised as an expense during the year
and included in “cost of cars and hardware sold” and “other taxi related costs”.
50
A2B Annual Report 2022
43
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
9. Financial assets
Annual Financial Report
Year Ended 30 June 2022
Unlisted equity investments are recognised initially and subsequently at each reporting date at fair
value. Unrealised gains and losses arising from changes in fair value are recognised in other
comprehensive income and presented in the fair value reserve in equity. There is no subsequent
reclassification of fair value gains and losses to profit or loss on derecognition of the investment.
Dividends from these investments are recognised in profit or loss when the Group’s right to receive
payments is established.
These unlisted investments are primarily investments in unrelated Taxi Network operations where the
shareholding held by the Group is not sufficient to demonstrate significant influence. The Group has no
intention to dispose of these unlisted investments in the foreseeable future.
Unlisted investments
Shares in other corporations
2022
$'000
977
977
2021
$'000
977
977
10. Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses. Cost includes expenditure that is directly attributable to the
acquisition of the item.
Depreciation
Items of property (excluding freehold land), plant and equipment are depreciated at rates based upon
their expected useful lives using the straight-line method. Leased assets are depreciated over the
shorter of the lease term and their useful lives.
The estimated useful lives of each major class of asset for the current and comparative periods are:
Buildings
Leasehold improvements
Furniture, fittings, plant and equipment
EFTPOS Equipment
40 to 50
years
10 years
3 to 8 years
years
4 to 8
Depreciation methods, useful lives and residual values are reassessed at each reporting date.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment and are
recognised net within other income/other expense in profit or loss.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are
charged to the profit or loss during the financial period in which they are incurred.
Impairment testing
The property, plant and equipment is allocated to the two groups of Cash Generating Units (CGU)
according to business operation and assessed for impairment based on the methodology described in
Note 13.
If the recoverable amount of specific property, plant and equipment is identified to be less than its
carrying value, an impairment charge is recognised in the profit or loss, and the carrying value of the
asset written-down to its recoverable amount. Should the recoverable amount increase in future
44
51
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
periods the carrying value may be adjusted to the lower of the recoverable value or the amortised cost
of the asset had it not been impaired.
Following a strategic review completed in May 2022 the Company identified certain items of property,
plant and equipment that would no longer be required to support the core remaining business.
Accordingly, the recoverable value of these assets was assessed and where less than carrying value an
impairment was recognised. This impairment was $4,230,000.
Independent valuations of interests in land and buildings
In monitoring market values for the Group's interest in land and buildings the directors have relied upon
independent valuations from registered qualified valuers. The last market valuations were completed
in June 2022. The properties included in the independent valuations are subject to mortgage security
to secure the Group's bank loan facilities.
Amounts disclosed below represent the fair value of the Group's interest in land and buildings, as
determined at the time of the most recent independent valuation report. Independent registered
qualified valuers are engaged to perform the valuations. The values are determined based on the
highest and best use of each property.
The fair value disclosure has been categorised as a Level 3 fair value based on certain unobservable
inputs to the valuation techniques used. The valuers have used either a capitalisation of net income
approach or a direct comparison approach to determine the fair value. The significant inputs to the
capitalisation of net income approach included the forecast net income, adopted capitalisation rate
and the discount rate. The significant inputs to the direct comparison approach included the land
value range per square metre and the estimated demolition costs.
The fair values determined by the independent registered qualified valuers are sensitive to changes in
these significant inputs, amongst others. However, overall the fair value of the Group's interest in land
and buildings is significantly higher than the book value of these interests as noted below:
Book value of properties subject to an independent valuation: $10,000,000
Fair value of properties subject to an independent valuation range: $102,000,000 to $114,000,000
The above market valuations do not consider the potential impact of capital gains tax.
2022 year:
Cost
Opening balance
Additions
Impairment
Disposals
Closing balance
Accumulated depreciation
Opening balance
Depreciation expense
Impairment
Disposals
Closing balance
52
A2B Annual Report 2022
Furniture,
fittings,
plant and
equipment
Land &
buildings
Eftpos
equipment
$'000
$'000
$'000
Total
$'000
16,292
78,045
44,568
138,905
262
3,640
142
4,044
(578)
(2,265)
(3,713)
(6,556)
-
(495)
-
(495)
15,976
78,925
40,997
135,898
(5,636)
(62,379)
(37,901)
(105,916)
(610)
(6,359)
(1,810)
(8,779)
270
-
1,483
144
573
2,326
-
144
(5,976)
(67,111)
(39,138)
(112,225)
45
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Net Book Value
Opening balance
Closing balance
2021 year:
Cost
Opening balance
Additions
Disposals
Closing balance
Accumulated depreciation
Opening balance
Depreciation expense
Disposals
Closing balance
Net Book Value
Opening balance
Closing balance
10,656
15,666
6,667
32,989
10,000
11,814
1,859
23,673
15,817
77,688
43,909
137,414
493
(18)
1,786
(1,429)
659
2,938
-
(1,447)
16,292
78,045
44,568
138,905
(4,859)
(56,953)
(35,862)
(97,674)
(795)
(6,080)
(2,039)
(8,914)
18
654
-
672
(5,636)
(62,379)
(37,901)
(105,916)
10,958
20,735
8,047
39,740
10,656
15,666
6,667
32,989
11. Deferred tax assets and liabilities
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss;
temporary differences relating to investments in subsidiaries and associates to the extent that the
Group is able to control the timing or reversal of the temporary differences and it is probable that
they will not reverse in the foreseeable future; and
taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
when they reverse, using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on
a net basis or their tax assets and liabilities will be realised simultaneously.
Deferred tax assets are recognised to the extent that it is probable that future tax profits will be
available against which deductible temporary differences and tax losses can be utilised. Deferred tax
assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable
that the related tax benefit will be realised.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that
46
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Net Book Value
Opening balance
Closing balance
2021 year:
Cost
Opening balance
Additions
Disposals
Closing balance
Accumulated depreciation
Opening balance
Depreciation expense
Disposals
Closing balance
Net Book Value
Opening balance
Closing balance
10,656
15,666
6,667
32,989
10,000
11,814
1,859
23,673
15,817
77,688
43,909
137,414
493
(18)
1,786
(1,429)
659
2,938
-
(1,447)
16,292
78,045
44,568
138,905
(4,859)
(56,953)
(35,862)
(97,674)
(795)
(6,080)
(2,039)
(8,914)
18
654
-
672
(5,636)
(62,379)
(37,901)
(105,916)
10,958
20,735
8,047
39,740
10,656
15,666
6,667
32,989
11. Deferred tax assets and liabilities
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss;
temporary differences relating to investments in subsidiaries and associates to the extent that the
Group is able to control the timing or reversal of the temporary differences and it is probable that
they will not reverse in the foreseeable future; and
taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
when they reverse, using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on
a net basis or their tax assets and liabilities will be realised simultaneously.
Deferred tax assets are recognised to the extent that it is probable that future tax profits will be
available against which deductible temporary differences and tax losses can be utilised. Deferred tax
assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable
that the related tax benefit will be realised.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that
46
53
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
the Group will derive sufficient future assessable income to enable the benefit to be realised and comply
with the conditions of deductibility imposed by the law. Unrecognized capital losses at 30 June 2022
are $6,154,712 (gross).
Recognised deferred tax assets and liabilities and the movements in these balances are set out below:
Opening
balance
Charged
to
income
Charged
to OCI
Charged
to
equity
Acquisitions
/ (Transfer)
Closing
balance
$'000
$'000
$'000
$'000
$'000
$'000
2022 year:
Accumulated impairment losses -
receivables
Financial assets (unlisted
investment)
2,100
(43)
286
-
Employee entitlements
3,188
(262)
Accruals
Tax losses
Prepayments
Intellectual property
Other taxable temporary
differences
411
108
3,536
13,585
(369)
(538)
(155)
-
(396)
(944)
8,218
12,289
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,057
-
-
-
-
-
-
286
2,926
519
17,121
(524)
(538)
-
(1,340)
- 20,507
Opening
balance
Charged
to
income
Charged
to OCI
Charged
to
equity
Acquisitions
/ (Transfer)
Closing
balance
$'000
$'000
$'000
$'000
$'000
$'000
2021 year:
Accumulated impairment losses -
receivables
Financial assets (unlisted
investment)
Employee entitlements
Accruals
Tax losses
Prepayments
Intellectual property
Other taxable temporary
differences
12. Taxi plate licences
1,790
310
-
-
100
186
3,180
229
8
182
2,086
6,831
(470)
(538)
101
-
(314)
(82)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,100
-
-
-
286
3,188
411
(5,381)
3,536
-
-
(369)
(538)
-
(396)
6,149
7,350
100
-
(5,381)
8,218
Taxi and other licences acquired separately are reported at cost less accumulated amortisation and
impairment losses. Taxi and other licences with finite useful lives are amortised on a straight-line basis
over their estimated useful lives of 50 years in current and comparative periods. Taxi and other licences
54
A2B Annual Report 2022
47
48
with indefinite useful lives are not amortised. Such assets are tested for impairment in accordance with
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
the accounting policy.
Impairment testing
Taxi plate licences with indefinite useful lives are tested for impairment annually, and whenever there
is any indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying
amount of the asset is reduced to its recoverable amount. An impairment loss is recognised
immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for
the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
Composition and movement
Indefinite life
Finite life
50 year
renewable
10 year
$'000
$'000
$'000
Total
$'000
-
1,311
1,311
2,195
-
2,195
3,356
6,862
-
-
3,356
6,862
Accumulated amortisation
Opening balance
Amortisation expense
-
-
-
-
-
-
(2,194)
(3,319)
(5,513)
(2,194)
(3,319)
(5,513)
1,311
1,311
37
1,349
37
1,349
2,879
-
2,506
3,356
8,741
-
-
(1,568)
(311)
- (1,879)
-
-
-
Closing balance
1,311
2,195
3,356
6,862
2022 year:
Cost
Opening balance
Additions
Closing balance
Closing balance
Net book value
Opening balance
Closing balance
2021 year:
Cost
Opening balance
Additions
Impairment
Disposals
1
1
-
-
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
with indefinite useful lives are not amortised. Such assets are tested for impairment in accordance with
the accounting policy.
Impairment testing
Taxi plate licences with indefinite useful lives are tested for impairment annually, and whenever there
is any indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying
amount of the asset is reduced to its recoverable amount. An impairment loss is recognised
immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for
the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
Composition and movement
Indefinite life
Finite life
50 year
renewable
10 year
$'000
$'000
$'000
Total
$'000
2022 year:
Cost
Opening balance
Additions
Closing balance
Accumulated amortisation
1,311
-
1,311
2,195
-
2,195
3,356
6,862
-
-
3,356
6,862
Opening balance
-
(2,194)
(3,319)
(5,513)
Amortisation expense
-
-
-
-
Closing balance
-
(2,194)
(3,319)
(5,513)
Net book value
Opening balance
Closing balance
2021 year:
Cost
Opening balance
Additions
Impairment
Disposals
1,311
1,311
1
1
37
1,349
37
1,349
2,879
-
(1,568)
-
2,506
3,356
8,741
-
(311)
-
-
-
- (1,879)
-
-
Closing balance
1,311
2,195
3,356
6,862
48
55
A2B Australia Limited
and its Controlled Entities
Accumulated amortisation
Opening balance
Amortisation expense
Disposals
Closing balance
Net book value
Opening balance
Closing balance
Impairment considerations
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
-
-
-
(2,147)
(47)
(3,319)
-
(5,466)
(47)
-
-
-
-
(2,194)
(3,319)
(5,513)
2,879
1,311
359
1
37
3,275
37
1,349
After assessing the recoverable amount of Taxi plate licences based on value-in-use, using a discounted
projected cash flow model, the Group determined that no impairment charge was required (FY21
$1,879,000). To determine value-in-use, five scenarios of free cash flows have been prepared based on
estimated Taxi plate licence income for the forthcoming year plus annual growth of between -20% to
5% for years 2 to 5 based on expected market conditions with weights of between 10% to 30% (FY21
between -15% to 5% for years 2 to 5 with weights of between 10% to 30%) and a long term growth
rate of between -20% to 0% after 5 years (FY21 -20% to 0%). A post-tax discount rate of 12.4% (FY21
9.5%) was applied in determining recoverable amount. This long term growth rate reflects an
estimation of the long term rental income growth for taxi plates and the discount rate is based on
comparable industry market assumptions for the risk free rate, the market risk premium, the cost of
debt, the beta and an additional risk weighting for these assets. An increase of 100 basis points in post-
tax discount rate would result in an impairment of $70,000 and a decrease of 100 basis points in the
long term growth rate would result in an impairment of $41,000.
13. Goodwill
Goodwill arising on the acquisition of a subsidiary is included in intangible assets. Goodwill is
subsequently measured at cost less accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating
units expected to benefit from the synergies of the combination. Cash-generating units to which
goodwill has been allocated are tested for impairment annually, or more frequently when there is an
indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less
than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying
amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the
basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is
not reversed in a subsequent period.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the
profit or loss on disposal.
Following changes in the way the business is managed and at what level performance of goodwill is
monitored, two groups of cash generating units have been identified and goodwill has been allocated
each of these cash generating units. Impairment testing has been carried out on both these cash
generating units. The two groups of cash generating units are B2C (previously Mobility Services) and
B2B (previously Platforms).
Impairment considerations
For the purpose of impairment testing, goodwill is allocated to groups of CGU, according to business
operation and / or geography of operation, which represent the lowest level at which the goodwill is
monitored for internal management purposes.
Goodwill is allocated to the Group’s CGU’s as set out below and assessment of the recoverable amount
for each CGU has been performed on a value-in-use basis using discounted cash flow projections.
The impairment tests of the goodwill allocated to each CGU as per 30 June 2022 was based on base
case scenario for the period FY23-FY27. The base case scenario was prepared based on a forecast
EBITDA for the forthcoming year. For the base scenario, the assumed annual growth from FY23 - FY27
is 28.08% for B2C CGU and 1.59% for B2B CGU. The long-term terminal growth rate is 2.1% for both
CGU’s. A post-tax discount rate of 12.4% (FY21 9.5%) was applied in determining recoverable amount.
The long-term growth rate reflects the general estimated long term Australian economic growth and
the discount rate is based on comparable industry market assumptions for the risk free rate, the market
risk premium, the cost of debt and the beta.
The valuation of the B2C CGU assumes growth driven by an increased fleet and associated revenue.
The recoverable amount of the B2C CGU currently exceeds its carrying value in the base case model by
$6.6m. This is based on a compound annual growth rate of 28.1% for EBITDA over the period from FY22
to FY27 terminal year.
The valuation of the B2B CGU assumes growth driven by an increase in fares processed and associated
revenue. The recoverable amount of the B2B CGU currently exceeds its carrying value in the base case
model by $20.2m. This is based on the assumed annual growth from FY23 – FY27 of 1.6% and long-term
terminal growth rate of 2.1%.
Management has identified that a reasonably possible unfavourable change in the five-year compound
annual EBITDA growth rate and discount rate assumptions in isolation and in the absence of any
mitigating factors would result in the carrying value of the B2C and B2B CGUs becoming equal to the
recoverable amount.
For B2C Individual changes in key assumptions used in the base case model that would result in nil
headroom would be a decrease to 24.3% in FY23-FY27 compound annual EBITDA growth rate, or an
increase to 13.7% in the post-tax discount rate.
For B2B Individual changes in key assumptions used in the base case model that would result in nil
headroom would be a decrease to -6.3% in FY23-FY27 compound annual EBITDA growth rate, or an
increase to 17.9% in the post-tax discount rate.
B2C
B2B
2022 year:
Cost
Opening balance
Impairment loss
Closing balance
Additions through acquisition
Goodwill allocated
Impairment loss
2022
$'000
2021
2022
$'000
$'000
2021
$'000
22,954
22,954
4,533
4,533
27,487
27,487
-
-
-
-
-
-
B2C
B2B
Total
$'000
$'000
$'000
22,954
4,533
27,487
-
-
-
-
-
22,954
4,533
27,487
56
A2B Annual Report 2022
49
50
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Goodwill is allocated to the Group’s CGU’s as set out below and assessment of the recoverable amount
for each CGU has been performed on a value-in-use basis using discounted cash flow projections.
The impairment tests of the goodwill allocated to each CGU as per 30 June 2022 was based on base
case scenario for the period FY23-FY27. The base case scenario was prepared based on a forecast
EBITDA for the forthcoming year. For the base scenario, the assumed annual growth from FY23 - FY27
is 28.08% for B2C CGU and 1.59% for B2B CGU. The long-term terminal growth rate is 2.1% for both
CGU’s. A post-tax discount rate of 12.4% (FY21 9.5%) was applied in determining recoverable amount.
The long-term growth rate reflects the general estimated long term Australian economic growth and
the discount rate is based on comparable industry market assumptions for the risk free rate, the market
risk premium, the cost of debt and the beta.
The valuation of the B2C CGU assumes growth driven by an increased fleet and associated revenue.
The recoverable amount of the B2C CGU currently exceeds its carrying value in the base case model by
$6.6m. This is based on a compound annual growth rate of 28.1% for EBITDA over the period from FY22
to FY27 terminal year.
The valuation of the B2B CGU assumes growth driven by an increase in fares processed and associated
revenue. The recoverable amount of the B2B CGU currently exceeds its carrying value in the base case
model by $20.2m. This is based on the assumed annual growth from FY23 – FY27 of 1.6% and long-term
terminal growth rate of 2.1%.
Management has identified that a reasonably possible unfavourable change in the five-year compound
annual EBITDA growth rate and discount rate assumptions in isolation and in the absence of any
mitigating factors would result in the carrying value of the B2C and B2B CGUs becoming equal to the
recoverable amount.
For B2C Individual changes in key assumptions used in the base case model that would result in nil
headroom would be a decrease to 24.3% in FY23-FY27 compound annual EBITDA growth rate, or an
increase to 13.7% in the post-tax discount rate.
For B2B Individual changes in key assumptions used in the base case model that would result in nil
headroom would be a decrease to -6.3% in FY23-FY27 compound annual EBITDA growth rate, or an
increase to 17.9% in the post-tax discount rate.
B2C
B2B
2022 year:
Cost
Opening balance
Additions through acquisition
Impairment loss
Closing balance
Goodwill allocated
Impairment loss
2022
$'000
2021
2022
$'000
$'000
2021
$'000
22,954
22,954
4,533
4,533
27,487
27,487
-
-
-
-
-
-
B2C
B2B
Total
$'000
$'000
$'000
22,954
4,533
27,487
-
-
-
-
-
22,954
4,533
27,487
50
57
A2B Australia Limited
and its Controlled Entities
2021 year:
Cost
Opening balance
Additions through acquisition
Impairment loss
Closing balance
14. Intellectual property
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
22,954
4,533
27,487
-
-
-
-
-
22,954
4,533
27,487
The estimated useful lives for current and comparative periods are as follows:
Customer contracts
5 to 8 years
Software
5 years
Capitalised development costs
(Internally developed applications)
4 to 8 years
adjusted if appropriate.
Impairment testing
Amortisation methods, useful lives and residual values are reviewed at each reporting date and
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination primarily relating to customer contracts,
software, trademarks and brand names are identified and recognised separately from goodwill where
they satisfy the definition of an intangible asset and their fair values can be measured reliably. The cost
of such intangible assets is their fair value at the acquisition date.
The intellectual property is allocated to the two groups of Cash Generating Units (CGU) according to
business operation and assessed for impairment based on the methodology described in Note 13.
Intangible assets with indefinite useful lives and capitalised development costs (Under development)
are tested for impairment annually, and whenever there is any indication that the asset may be
impaired.
Trademarks are considered to have indefinite useful lives and such assets are tested for impairment in
accordance with the policy below.
Intangible assets with finite useful lives and capitalised development costs (Internally developed) are
tested for impairment whenever there is any indication that the asset may be impaired.
Software-as-a-Service (SaaS) arrangements
SaaS arrangements are service contracts providing the Group with the right to access the cloud
provider’s application software over the contract period. As such the Group does not receive a software
intangible asset at the contract commencement date.
The following outlines the accounting treatment of costs incurred in relation to SaaS arrangements:
Recognise as an operating expense over the term
of the service contract
Recognise as an operating expense as the service
is received
• Fee for use of application software
• Customisation costs
• Configuration costs
• Data conversion and migration costs
• Testing costs
• Training costs
Costs incurred for the development of software code that enhances or modifies, or creates additional
capability to, existing on-premise systems and meets the definition of and recognition criteria for an
intangible asset are recognised as intangible software assets.
Capitalised development costs
Development activities involve a plan or design for the production of new or substantially improved
products and processes. Development expenditure is capitalised only if development costs can be
measured reliably, the product or process is technically and commercially feasible, future economic
benefits are probable, and the Group intends to and has sufficient resources to complete development
and to use or sell the asset. The expenditure capitalised includes the cost of materials, direct labour,
borrowing and overhead costs that are directly attributable to preparing the asset for its intended use.
Other development expenditure is recognised in profit or loss when incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and
impairment losses.
Amortisation
Items of intellectual property are amortised at rates based upon their estimated useful lives using the
straight-line method, and this amortisation is recognised in profit or loss.
58
A2B Annual Report 2022
51
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (CGU) is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (CGU) is increased
to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised
for the asset (CGU) in prior years. A reversal of an impairment loss is recognised immediately in profit
or loss.
Following a strategic review completed in May 2022 the Company identified certain items of capital
development costs that would no longer be required to support the core remaining business.
Accordingly, the recoverable value of these assets was assessed and where less than carrying value an
impairment was recognised. This impairment was $6,019,000.
Indefinite
life
Finite life
Capitalised development
costs
Trademark
s
Customer
Brands
contracts
Software
Internally
Under
developed
development
Total
$'000
$'000
$'000
$'000
$'000
$'000
$'000
2022 year:
Cost
Opening
balance
Additions -
internally
developed
Impairment
944
759
5,684
2,700
44,503
2,551
57,141
-
-
-
-
-
-
-
-
4,731
4,731
-
(7,727)
(2,207)
(9,934)
52
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
The estimated useful lives for current and comparative periods are as follows:
Customer contracts
5 to 8 years
Software
5 years
Capitalised development costs
(Internally developed applications)
4 to 8 years
Amortisation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
Impairment testing
The intellectual property is allocated to the two groups of Cash Generating Units (CGU) according to
business operation and assessed for impairment based on the methodology described in Note 13.
Intangible assets with indefinite useful lives and capitalised development costs (Under development)
are tested for impairment annually, and whenever there is any indication that the asset may be
impaired.
Intangible assets with finite useful lives and capitalised development costs (Internally developed) are
tested for impairment whenever there is any indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (CGU) is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (CGU) is increased
to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised
for the asset (CGU) in prior years. A reversal of an impairment loss is recognised immediately in profit
or loss.
Following a strategic review completed in May 2022 the Company identified certain items of capital
development costs that would no longer be required to support the core remaining business.
Accordingly, the recoverable value of these assets was assessed and where less than carrying value an
impairment was recognised. This impairment was $6,019,000.
Indefinite
life
Finite life
Capitalised development
costs
Trademark
s
Brands
Customer
contracts
Software
Internally
developed
Under
development
Total
$'000
$'000
$'000
$'000
$'000
$'000
$'000
2022 year:
Cost
Opening
balance
Additions -
internally
developed
Impairment
944
759
5,684
2,700
44,503
2,551
57,141
-
-
-
-
-
-
-
-
4,731
4,731
-
(7,727)
(2,207)
(9,934)
52
59
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Transfer
Closing balance
Accumulated
amortisation
Opening
balance
Amortisation
expense
Impairment
Closing balance
Net book
value
Opening
balance
Closing
balance
2021 year:
Cost
Opening
balance
Additions -
internally
developed
Transfer
Closing balance
Accumulated
amortisation
Opening
balance
Amortisation
expense
-
-
-
-
3,649
(3,649)
-
944
759
5,684
2,700
40,425
1,426
51,938
-
(759)
(4,334)
(1,415)
(31,219)
-
-
-
-
(498)
(520)
(4,386)
-
-
3,915
-
(759)
(4,832)
(1,935)
(31,690)
-
-
-
-
(37,727)
(5,404)
3,915
(39,216)
944
944
-
-
1,350
1,285
13,284
2,551
19,414
852
765
8,735
1,426
12,722
944
759
5,684
2,700
39,282
3,519
52,888
-
-
-
-
-
-
-
-
-
4,253
4,253
5,221
(5,221)
-
944
759
5,684
2,700
44,503
2,551
57,141
-
(759)
(3,774)
(897)
(26,174)
-
(31,604)
-
-
(560)
(518)
(5,045)
Closing balance
-
(759)
(4,334)
(1,415)
(31,219)
-
-
(6,123)
(37,727)
Net book
value
Opening
balance
Closing
balance
944
944
-
-
1,910
1,803
13,108
3,519
21,284
1,350
1,285
13,284
2,551
19,414
15. Contract liabilities, trade and other payables
Trade and other payables are recognised at the fair value of the invoice received from the supplier. The
carrying value of trade and other payables is considered to approximate fair value.
Contract liabilities primarily relates to revenue arising from network subscription fee income, brokered
taxi plate licence income, owned taxi plate licence income, taxi operating income, interest on vehicle
and insurance loans and taxi equipment and terminal rental which have been billed in advance. This
will be recognised as revenue when the services are provided to the customers in the following month.
60
A2B Annual Report 2022
53
54
Loans and borrowings are recognised at the consideration received,
less directly attributable
transaction costs, with subsequent measurement at amortised cost using the effective interest rate
For more information about the Group’s exposure to interest rate and liquidity risk, refer to Note 31.
Disclosure in the Consolidated Statement of Financial Position
Trade payables
Security deposit
Other payables and accruals
Contract liabilities
16. Loans and borrowings
method.
Composition
Unsecured loans
Bank borrowings
Current liability
Non-current liability
Bank facilities
Revolving credit facility
Multi option facility
Total facility
Amount used at 30 June
Amount unused at 30 June
2022
$'000
10,222
7,092
33,073
6,993
57,380
2022
$'000
1,649
17,274
18,923
2022
$'000
1,649
17,274
18,923
2022
$'000
25,000
4,500
29,500
17,274
12,226
2021
$'000
12,161
5,748
16,596
5,149
39,654
2021
$'000
1,864
-
1,864
2021
$'000
1,864
-
1,864
2021
$'000
25,000
25,000
-
-
25,000
The unsecured loans are at-call and bear variable interest rates at 1.5% per annum.
All bank borrowings are denominated in Australian dollars and are secured by a registered first
mortgage on all commercial properties with a net carrying value of $10,000,000, trade debtors with a
value of $28,583,000 and over the assets of the Company and its Subsidiaries. Bank borrowings
represent a working capital facility with CBA. At 30 June 2022 this facility had a limit of $25,000,000
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Trade payables
Security deposit
Other payables and accruals
Contract liabilities
16. Loans and borrowings
2022
$'000
10,222
7,092
33,073
6,993
57,380
2021
$'000
12,161
5,748
16,596
5,149
39,654
Loans and borrowings are recognised at the consideration received, less directly attributable
transaction costs, with subsequent measurement at amortised cost using the effective interest rate
method.
For more information about the Group’s exposure to interest rate and liquidity risk, refer to Note 31.
Composition
Unsecured loans
Bank borrowings
Disclosure in the Consolidated Statement of Financial Position
Current liability
Non-current liability
Bank facilities
Revolving credit facility
Multi option facility
Total facility
Amount used at 30 June
Amount unused at 30 June
2022
$'000
1,649
17,274
18,923
2022
$'000
1,649
17,274
18,923
2022
$'000
25,000
4,500
29,500
17,274
12,226
2021
$'000
1,864
-
1,864
2021
$'000
1,864
-
1,864
2021
$'000
25,000
-
25,000
-
25,000
The unsecured loans are at-call and bear variable interest rates at 1.5% per annum.
All bank borrowings are denominated in Australian dollars and are secured by a registered first
mortgage on all commercial properties with a net carrying value of $10,000,000, trade debtors with a
value of $28,583,000 and over the assets of the Company and its Subsidiaries. Bank borrowings
represent a working capital facility with CBA. At 30 June 2022 this facility had a limit of $25,000,000
54
61
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
expiring in September 2023. Bank borrowings bear interest, the interest rates are calculated as BBSY
plus margin on the drawn loan balance ranging between 2.62% and 3.28% in FY22.
For more information about the Group’s exposure to interest rate and liquidity risk, refer to Note 31.
17. Provisions
Employee benefits and make good provisions
Wages, salaries and annual leave
Liabilities for employee benefits for wages, salaries and annual leave represent the present obligations
resulting from employees' services provided up to reporting date. The provisions have been calculated
at undiscounted amounts based on expected wage and salary rates that the Group expects to pay as
at reporting date and include related on-costs, such as workers' compensation insurance and payroll
tax. A liability is recognised in other payables for the amount expected to be paid under short-term
cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay
this amount as a result of past service provided by the employee and the obligation can be estimated
reliably.
Long service leave
The provision for employee benefits for long service leave represents the present value of the estimated
future cash outflows to be made by the Group resulting from employees' services provided up to the
reporting date. The provision is calculated using expected future increases in wage and salary rates
including related on-costs and expected settlement dates based on turnover history and is discounted
using the rates attaching to corporate bonds at reporting date which most closely match the terms of
maturity of the related liabilities.
Superannuation plans
The Group contributes to defined contribution superannuation funds for the benefit of employees or
their dependants on retirement, resignation, disablement or death. The Group contributes a
percentage of individual employees' gross income and employees may make additional contributions
on a voluntary basis. Obligations for contributions to defined contribution superannuation funds are
recognised as an employee benefits expense in profit or loss in the periods during which services are
rendered by employees.
Make good provision
The make good provision represents the present value of the estimated future cash outflows to be
made where the obligation to restore the lease property to its original condition exists.
Composition
Employee benefit provision
- Annual leave provision
- Long service leave provision
- Redundancy provision
Make good provision
62
A2B Annual Report 2022
2022
$'000
4,094
3,035
1,500
751
9,380
2021
$'000
4,647
4,085
-
966
9,698
55
Disclosure in the Consolidated Statement of Financial Position
2022
$'000
7,840
272
8,112
789
479
1,268
9,380
2022
$'000
2021
$'000
7,814
303
8,117
918
663
1,581
9,698
2021
$'000
Current provision
- Employee benefits provision
- Make good provision
Total current provision
Non-current provision
- Employee benefits provision
- Make good provision
Total non-current provision
Total provisions
Defined contribution superannuation funds
18. Share capital and Reserves
Ordinary shares
Profits reserve
future years.
Foreign currency translation reserve
financial statements of foreign operations.
Fair value reserve
Contributions to defined contribution superannuation funds
5,298
4,782
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares and share options are recognised as a deduction from equity, net of any tax effects.
The profits reserve represents profits of entities within the Group transferred to a separate reserve to
preserve their profit character. Such profits are available to enable payment of franked dividends in
The translation reserve comprises all foreign currency differences arising from the translation of the
The fair value reserve comprises the cumulative net change in the fair value of unlisted equity
investments. On derecognition, the Group transfers that part of the reserve related to the underlying
investment that is derecognised directly to Retained earnings.
Employee Compensation Reserve
over the vesting period.
The fair value of Long Term Incentive plans granted is recognised in the employee compensation reserve
56
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Disclosure in the Consolidated Statement of Financial Position
Current provision
- Employee benefits provision
- Make good provision
Total current provision
Non-current provision
- Employee benefits provision
- Make good provision
Total non-current provision
Total provisions
Defined contribution superannuation funds
2022
$'000
7,840
272
8,112
789
479
1,268
9,380
2022
$'000
2021
$'000
7,814
303
8,117
918
663
1,581
9,698
2021
$'000
Contributions to defined contribution superannuation funds
5,298
4,782
18. Share capital and Reserves
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares and share options are recognised as a deduction from equity, net of any tax effects.
Profits reserve
The profits reserve represents profits of entities within the Group transferred to a separate reserve to
preserve their profit character. Such profits are available to enable payment of franked dividends in
future years.
Foreign currency translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the
financial statements of foreign operations.
Fair value reserve
The fair value reserve comprises the cumulative net change in the fair value of unlisted equity
investments. On derecognition, the Group transfers that part of the reserve related to the underlying
investment that is derecognised directly to Retained earnings.
Employee Compensation Reserve
The fair value of Long Term Incentive plans granted is recognised in the employee compensation reserve
over the vesting period.
56
63
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Annual Financial Report
Year Ended 30 June 2022
Composition and movement in issued capital (number of shares)
Composition of issued capital
Fully paid ordinary shares
2022
2021
(number)
(number)
121,230,683
120,430,683
The issuance of 800,000 ordinary shares as Incentive Shares occurred on 5 May 2022 following
approval at the Company’s EGM.
Composition and movement in share capital (dollars)
Composition of issued capital
Fully paid ordinary shares
Options over unissued shares
2022
$'000
2021
$'000
shares.
138,325
138,325
Consolidated (loss) attributable to owners of the Company (in
No options were granted during the year and there were no options outstanding at the end of the
financial year. Performance rights were awarded during the year and they may be converted into
ordinary shares, subject to the Board’s discretion.
Terms and conditions applicable to ordinary shares
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are
entitled to one vote per share at shareholders' meetings. In the event of winding up of the Company,
ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any
proceeds of liquidation. The Company does not have authorised capital or par value in respect of its
issued shares. All issued shares are fully paid.
Composition and movement in other reserves
Foreign
currency
translation
reserve
Fair value
reserve
Employee
compensation
reserve
Total
$'000
$'000
$'000
$'000
(7)
(667)
1,633
959
(76)
-
-
-
-
(76)
1,133
1,133
(83)
(667)
2,766
2,016
(135)
(434)
1,002
433
-
(233)
-
(233)
128
-
-
-
(7)
(667)
631
1,633
128
631
959
57
2022 year:
Opening balance
Foreign exchange translation differences, net
of tax
Share-based payments
Closing balance
2021 year:
Opening balance
Net change in fair value of financial assets,
net of tax
Foreign exchange translation differences, net
of tax
Share-based payments
Closing balance
64
A2B Annual Report 2022
A2B Australia Limited
and its Controlled Entities
19. Dividends
Dividends are recognised as a liability in the period in which they are declared.
The Board has determined that no final dividend be paid in conjunction with FY22.
20. Earnings per share
Basic earnings per share (EPS) is calculated by dividing the profit attributable to equity holders for the
reporting period by the weighted average number of ordinary shares outstanding during the period.
Diluted EPS is calculated by dividing the profit attributable to equity holders for the reporting period by
the weighted average number of ordinary shares outstanding including dilutive potential ordinary
2022
2021
(28,118)
(18,274)
thousands of AUD)
thousands of shares)
Weighted average number of fully paid ordinary shares
outstanding during the year used in calculation of basic EPS (in
120,556
120,431
Any potential dilution in A2B’s earnings per share which might arise following the exercise of the LTI
awards is immaterial given the number of existing shares on issue.
Basic EPS
Diluted EPS
21. Dividend franking balance
2022
2021
(23.3 cents)
(15.2 cents)
(23.3 cents)
(15.2 cents)
2022
$'000
2021
$'000
Balance at the end of the financial year including franking
credits / (debits) arising from income tax payable / (receivable)
27,232
32,854
in respect of the financial year
The above available amounts are based on the balance of the dividend franking account at year-end
adjusted for:
liabilities/receivables;
end;
a. franking credits/(debits) that will arise from the payment/receipt of the current tax
b. franking debits that will arise from the payment of dividends recognised as a liability at the year-
c. franking credits that will arise from the receipt of dividends recognised as receivables by the tax
consolidated group at the year-end; and
d. franking credits that the entity may be prevented from distributing in subsequent years.
The ability to utilise the franking credits is dependent upon there being sufficient available profits to
declare dividends. The impact on the dividend franking account of dividends proposed after the balance
sheet date but not recognised as a liability is to reduce it by $nil (2021 $nil). In accordance with the tax
consolidation legislation, the Company as the head entity in the tax consolidated group has also
assumed the benefit of $27,232,000 (2021: $32,854,000) franking credits.
58
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
19. Dividends
Annual Financial Report
Year Ended 30 June 2022
Dividends are recognised as a liability in the period in which they are declared.
The Board has determined that no final dividend be paid in conjunction with FY22.
20. Earnings per share
Basic earnings per share (EPS) is calculated by dividing the profit attributable to equity holders for the
reporting period by the weighted average number of ordinary shares outstanding during the period.
Diluted EPS is calculated by dividing the profit attributable to equity holders for the reporting period by
the weighted average number of ordinary shares outstanding including dilutive potential ordinary
shares.
Consolidated (loss) attributable to owners of the Company (in
thousands of AUD)
Weighted average number of fully paid ordinary shares
outstanding during the year used in calculation of basic EPS (in
thousands of shares)
2022
2021
(28,118)
(18,274)
120,556
120,431
Any potential dilution in A2B’s earnings per share which might arise following the exercise of the LTI
awards is immaterial given the number of existing shares on issue.
Basic EPS
Diluted EPS
21. Dividend franking balance
Balance at the end of the financial year including franking
credits / (debits) arising from income tax payable / (receivable)
in respect of the financial year
2022
2021
(23.3 cents)
(15.2 cents)
(23.3 cents)
(15.2 cents)
2022
$'000
2021
$'000
27,232
32,854
The above available amounts are based on the balance of the dividend franking account at year-end
adjusted for:
a. franking credits/(debits) that will arise from the payment/receipt of the current tax
liabilities/receivables;
b. franking debits that will arise from the payment of dividends recognised as a liability at the year-
end;
c. franking credits that will arise from the receipt of dividends recognised as receivables by the tax
consolidated group at the year-end; and
d. franking credits that the entity may be prevented from distributing in subsequent years.
The ability to utilise the franking credits is dependent upon there being sufficient available profits to
declare dividends. The impact on the dividend franking account of dividends proposed after the balance
sheet date but not recognised as a liability is to reduce it by $nil (2021 $nil). In accordance with the tax
consolidation legislation, the Company as the head entity in the tax consolidated group has also
assumed the benefit of $27,232,000 (2021: $32,854,000) franking credits.
58
65
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
22. Parent entity disclosures
23. Deed of Cross Guarantee
As at, and throughout, the financial year ended 30 June 2022 the parent entity of the Group was A2B
Australia Limited.
Result of the parent entity
(Loss) for the year
Other comprehensive income, net of tax
Total comprehensive (loss) for the year
Financial position of parent entity at year end
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Total equity of the parent entity comprising of:
Share capital
Reserves
Profits reserve
Retained earnings
Total equity
2022
$'000
2021
$'000
(19,523)
(11,347)
-
216
(19,523)
(11,131)
51,516
250,795
302,311
34,202
153,722
187,924
138,325
2,256
18,823
(45,017)
114,387
41,091
258,656
299,747
30,374
136,592
166,966
138,325
1,127
18,823
(25,494)
132,781
Parent entity capital expenditure commitments and contingencies
At 30 June 2022 the parent entity has not made any capital expenditure commitments (2021 $nil). For
the contingent liability as at 30 June 2022 (2021 $nil), refer to Note 28.
Parent entity guarantees in respect of the debts of its subsidiaries
The parent entity has entered into a Deed of Cross Guarantee with the effect that the Company
guarantees debts in respect of certain subsidiaries.
Further details of the Deed of Cross Guarantee and the subsidiaries subject to the deed are disclosed
in Note 23.
66
A2B Annual Report 2022
59
Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785, the wholly-owned
subsidiaries listed below are relieved from the Corporations Act 2001 requirements for preparation,
audit and lodgement of financial reports, and Directors’ reports.
It is a condition of the Instrument that the Company and each of the subsidiaries seeking relief enter
into a Deed of Cross Guarantee (Deed). The effect of the Deed is that the Company guarantees to
each creditor payment in full of any debt in the event of winding up of any of the subsidiaries under
certain provisions of the Corporation Act. If a winding up occurs under other provisions of the
Corporations Act, the Company will only be liable in the event that after six months any creditor has
not been paid in full. The subsidiaries have also given similar guarantees in the event that the Company
The Consolidated income statement and retained earnings for the Company and controlled entities
which are a party to the Deed is as follows:
is wound up.
The subsidiaries subject to the Deed are:
Taxis Combined Services Pty Ltd
Black Cabs Combined Pty Ltd
Yellow Cabs (South Australia) Pty Ltd
Yellow Cabs Australia Pty Ltd
Combined Communications Network Pty Ltd
EFT Solutions Pty Ltd
Maxi Taxi (Australia) Pty Ltd
135466 Pty Ltd
Newcastle Taxis Pty Ltd
Austaxi Group Pty Ltd
Taxitech Pty Ltd
Arrow Taxi Services Pty Ltd
North Suburban Taxis (Vic) Pty Ltd
ABC Radio Taxi Pty Ltd
Cabcharge Payments Pty Ltd
Mobile Technologies International Pty Ltd
Revenue and other income
Expenses
Results from operating activities
Finance income
Finance costs
(Loss) before income tax
Income tax benefit
(Loss) for the year
Items that will not be reclassified to profit or loss:
Net change in fair value of financial assets
Income tax on other comprehensive income
Other comprehensive loss for the year, net of income tax
Retained earnings at beginning of year
(Loss) for the year
Retained earnings at end of year
2022
$'000
110,874
(150,125)
(39,251)
2
(1,131)
(40,380)
11,996
(28,384)
-
-
-
(41,254)
(28,384)
(69,638)
2021
$'000
113,075
(138,895)
(25,820)
15
(958)
(26,763)
7,737
(19,026)
(333)
100
(233)
(22,228)
(19,026)
(41,254)
60
Total comprehensive (loss) for the year
(28,384)
(19,259)
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
23. Deed of Cross Guarantee
Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785, the wholly-owned
subsidiaries listed below are relieved from the Corporations Act 2001 requirements for preparation,
audit and lodgement of financial reports, and Directors’ reports.
It is a condition of the Instrument that the Company and each of the subsidiaries seeking relief enter
into a Deed of Cross Guarantee (Deed). The effect of the Deed is that the Company guarantees to
each creditor payment in full of any debt in the event of winding up of any of the subsidiaries under
certain provisions of the Corporation Act. If a winding up occurs under other provisions of the
Corporations Act, the Company will only be liable in the event that after six months any creditor has
not been paid in full. The subsidiaries have also given similar guarantees in the event that the Company
is wound up.
The subsidiaries subject to the Deed are:
135466 Pty Ltd
EFT Solutions Pty Ltd
Taxis Combined Services Pty Ltd
Black Cabs Combined Pty Ltd
Yellow Cabs (South Australia) Pty Ltd
Yellow Cabs Australia Pty Ltd
Combined Communications Network Pty Ltd
Maxi Taxi (Australia) Pty Ltd
Newcastle Taxis Pty Ltd
Austaxi Group Pty Ltd
Taxitech Pty Ltd
Arrow Taxi Services Pty Ltd
North Suburban Taxis (Vic) Pty Ltd
ABC Radio Taxi Pty Ltd
Cabcharge Payments Pty Ltd
Mobile Technologies International Pty Ltd
The Consolidated income statement and retained earnings for the Company and controlled entities
which are a party to the Deed is as follows:
Revenue and other income
Expenses
Results from operating activities
Finance income
Finance costs
(Loss) before income tax
Income tax benefit
(Loss) for the year
Items that will not be reclassified to profit or loss:
Net change in fair value of financial assets
Income tax on other comprehensive income
Other comprehensive loss for the year, net of income tax
2022
$'000
110,874
(150,125)
(39,251)
2
(1,131)
(40,380)
11,996
(28,384)
-
-
-
2021
$'000
113,075
(138,895)
(25,820)
15
(958)
(26,763)
7,737
(19,026)
(333)
100
(233)
Total comprehensive (loss) for the year
(28,384)
(19,259)
Retained earnings at beginning of year
(Loss) for the year
Retained earnings at end of year
(41,254)
(28,384)
(69,638)
(22,228)
(19,026)
(41,254)
60
67
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
The Consolidated financial position for the Company and controlled entities which are a party to the
Deed is as follows:
2022
$'000
2021
$'000
Equity
Share capital
Reserves
Profits reserve
Retained losses
Current assets
Cash and cash equivalents
Trade and other receivables
Current tax assets
Inventories
Other current assets
Total current assets
Non-current assets
Trade and other receivables
Investments
Property, plant and equipment
Right-of-use assets
Net deferred tax assets
Taxi plate licences
Goodwill
Intellectual property
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Loans and borrowings
Lease liabilities
Current tax liabilities
Deferred income
Provisions
Total current liabilities
Non-current liabilities
Lease liabilities
Loans and borrowings
Deferred income
Provisions
Total non-current liabilities
Total liabilities
Net assets
68
A2B Annual Report 2022
8,695
65,734
-
3,342
2,927
80,698
5,303
2,596
21,035
5,921
20,217
1,311
26,838
12,312
95,533
176,231
53,270
1,649
1,446
152
118
6,714
63,349
5,014
17,274
236
1,226
23,750
87,099
89,132
8,488
53,699
5,541
3,099
2,980
73,807
5,841
2,596
29,296
11,972
7,951
1,311
26,838
18,924
104,729
178,536
37,097
1,864
1,861
-
118
8,664
49,604
10,691
-
354
1,503
12,548
62,152
116,384
61
138,325
1,622
18,823
(69,638)
89,132
138,325
490
18,823
(41,254)
116,384
2022
$
2021
$
2,656,584
2,995,842
180,013
42,693
1,277,768
708,277
424,623
108,470
45,681
631,482
-
-
5,287,958
3,781,475
Total equity attributable to equity holders of the Company
24. Related Party and Key Management Personnel disclosures
Apart from the details disclosed in this note, no key management personnel (KMP) have entered into
a material contract with the Company or the Group since the end of the previous financial year and
there are no material contracts involving key management personnel interests existing at year end.
KMP compensation (including Non-Executive Directors)
Short-term employee benefits - salary, fees, non-cash benefits and
cash bonus
Post-employment benefits - superannuation
Other long-term benefits
Termination benefits
Share-based payment expense
Incentive Shares
Loans to Directors and other KMP
No loans are made to Directors or other KMP.
Transactions with Directors and other KMP
The Group has no transactions with related parties in the reporting period.
25. Remuneration of auditors
Audit and review of financial reports
453,000
431,012
Other services
Taxation services
Auditors of the Company - KPMG Australia
2022
$
2021
$
225555,,552211
708,521
325,690
756,702
62
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Equity
Share capital
Reserves
Profits reserve
Retained losses
Total equity attributable to equity holders of the Company
Annual Financial Report
Year Ended 30 June 2022
138,325
1,622
18,823
(69,638)
89,132
138,325
490
18,823
(41,254)
116,384
24. Related Party and Key Management Personnel disclosures
Apart from the details disclosed in this note, no key management personnel (KMP) have entered into
a material contract with the Company or the Group since the end of the previous financial year and
there are no material contracts involving key management personnel interests existing at year end.
KMP compensation (including Non-Executive Directors)
Short-term employee benefits - salary, fees, non-cash benefits and
cash bonus
Post-employment benefits - superannuation
Other long-term benefits
Termination benefits
Share-based payment expense
Incentive Shares
2022
$
2021
$
2,656,584
2,995,842
180,013
40,693
1,277,768
708,277
424,623
108,470
45,681
-
631,482
-
5,287,958
3,781,475
Loans to Directors and other KMP
No loans are made to Directors or other KMP.
Transactions with Directors and other KMP
The Group has no transactions with related parties in the reporting period.
25. Remuneration of auditors
Audit and review of financial reports
453,000
431,012
2022
$
2021
$
Other services
Auditors of the Company - KPMG Australia
Taxation services
225555,,552211
708,521
325,690
756,702
62
69
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
26. Particulars relating to controlled entities
13cabs Innovations Pty Ltd
135466 Pty Ltd
A2B Corporate Services Pty Ltd (previously known as Voci Asia Pacific Pty Ltd)
ABC Radio Taxi Pty Ltd
Access Communications Net Pty Ltd
Arrow Taxi Services Pty Ltd
Austaxi Group Pty Ltd
Black Cabs Combined Car Sales Pty Ltd
Black Cabs Combined Pty Ltd
Cab Access Pty Ltd
Cabcharge (Investments) Pty Ltd
Cabcharge Payments Pty Ltd
Carbodies Australia Pty Ltd
Champ Australia Pty Ltd
Champ NSW Pty Ltd
Champ Victoria Pty Ltd
Champ WA Pty Ltd
Combined Communications Network Pty Ltd
EFT Solutions Pty Ltd
Enterprise Speech Recognition Pty Ltd
Go Taxis Pty Ltd
Helpline Australia Pty Ltd
Kingscliff Tweed Coast Taxis Pty Ltd
Mact Franchise Pty Ltd
Mact Network Pty Ltd
Mact Rental Pty Ltd
Maxi Taxi (Australia) Pty Ltd
Melbourne Taxi Cab Service Pty Ltd
Mobile Technologies Developments Pty Ltd
Mobile Technologies International Pty Ltd
Newcastle Taxis Pty Ltd
North Suburban Taxis (Vic) Pty Ltd
Silver Service (Victoria) Pty Ltd
Silver Service Taxis Pty Ltd
South Western Cabs (Radio Room) Pty Ltd
Taxi Data Australia Pty Ltd
Taxi Industry (Australia) Insurance Brokers Pty Ltd
Taxi Services Management (Newcastle) Pty Ltd
TaxiProp Pty Ltd
Taxis Australia Pty Ltd
Taxis Combined Services (Victoria) Pty Ltd
Taxis Combined Services Pty Ltd
Taxitech Pty Ltd
Thirteen Hundred Pty Ltd
Tiger Taxis NSW Pty Ltd
Tiger Taxis Operations Pty Ltd
Tiger Taxis Pty Ltd
Tiger Taxis Queensland Pty Ltd
Tweed Heads Coolangatta Taxi Service Pty Ltd
Yellow Cabs (Queensland) Holdings Pty Ltd
Yellow Cabs Australia Pty Ltd
Yellow Cabs of Sydney Pty Ltd
Yellow Cabs South Australia Pty Ltd
Yellow Cabs Victoria Pty Ltd
70
A2B Annual Report 2022
Group
Interest %
2022
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
56
100
100
100
100
100
100
100
100
100
100
100
100
68
62
100
100
68
100
100
100
100
100
100
100
100
56
100
100
100
100
100
Group
Interest %
2021
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
56
100
100
100
100
100
100
100
100
100
100
100
100
68
62
100
100
68
100
100
100
100
100
100
100
100
56
100
100
100
100
100
63
Annual Financial Report
Year Ended 30 June 2022
Group
Group
Interest %
Interest %
100
93
100
100
100
100
93
100
100
100
Cabcharge NZ Limited
Cabcharge North America Limited
Manchester Taxi Division Limited
Mobile Technologies International Limited
Mobile Technologies International LLC
27. Capital expenditure commitments
The Group has not entered into any contracts to purchase plant and equipment for which amounts
have not been provided as at 30 June 2022 (2021 $nil).
The Group had no material contingent liabilities at 30 June 2022 (2021 $nil)
28. Contingencies
29. Leases
The Group leases various offices and Taxitech workshops. The leases run typically for a fixed period of 1
to 10 years, with an option to renew the lease after that date.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. Information about leases for which the Group is a lessee is presented below.
Right-of-use assets
The right-of-use assets are initially measured at cost, which comprises:
-
-
-
The amount of the initial measurement of the lease liability
Any lease payments made at or before the commencement date, less any lease incentives and
any initial direct costs incurred by the lessee
An estimate of the costs to dismantle and remove the underlying asset or to restore the
underlying asset.
Subsequently the right-of-use asset is measured at cost less any accumulated depreciation and
impairment losses and adjusted for certain measurements of the lease liability.
The right-of-use asset is depreciated over the shorter period of the lease term and the economic useful
life of the underlying asset. If a lease transfers ownership of the underlying asset or the costs of the
right-of-use asset reflects that the Group will exercise a purchase option, the asset will be depreciated
from the commencement date to the end of the useful life of the underlying asset. The depreciation
starts at the commencement date of the lease.
Where the initially anticipated lease term is subsequently reassessed, any changes are reflected in a
remeasurement of the lease liability and a corresponding adjustment to the asset.
If the recoverable amount of a right-of-use asset is less than its carrying value, an impairment charge
is recognised in the profit or loss, and the carrying value of the asset written-down to its recoverable
amount. Should the recoverable amount increase in future periods the carrying value may be adjusted
to the lower of the recoverable value or the amortised cost of the asset had it not been impaired.
64
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Cabcharge NZ Limited
Cabcharge North America Limited
Manchester Taxi Division Limited
Mobile Technologies International Limited
Mobile Technologies International LLC
27. Capital expenditure commitments
Annual Financial Report
Year Ended 30 June 2022
Group
Interest %
100
93
100
100
100
Group
Interest %
100
93
100
100
100
The Group has not entered into any contracts to purchase plant and equipment for which amounts
have not been provided as at 30 June 2022 (2021 $nil).
28. Contingencies
The Group had no material contingent liabilities at 30 June 2022 (2021 $nil)
29. Leases
The Group leases various offices and Taxitech workshops. The leases run typically for a fixed period of 1
to 10 years, with an option to renew the lease after that date.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. Information about leases for which the Group is a lessee is presented below.
Right-of-use assets
The right-of-use assets are initially measured at cost, which comprises:
-
-
-
The amount of the initial measurement of the lease liability
Any lease payments made at or before the commencement date, less any lease incentives and
any initial direct costs incurred by the lessee
An estimate of the costs to dismantle and remove the underlying asset or to restore the
underlying asset.
Subsequently the right-of-use asset is measured at cost less any accumulated depreciation and
impairment losses and adjusted for certain measurements of the lease liability.
The right-of-use asset is depreciated over the shorter period of the lease term and the economic useful
life of the underlying asset. If a lease transfers ownership of the underlying asset or the costs of the
right-of-use asset reflects that the Group will exercise a purchase option, the asset will be depreciated
from the commencement date to the end of the useful life of the underlying asset. The depreciation
starts at the commencement date of the lease.
Where the initially anticipated lease term is subsequently reassessed, any changes are reflected in a
remeasurement of the lease liability and a corresponding adjustment to the asset.
If the recoverable amount of a right-of-use asset is less than its carrying value, an impairment charge
is recognised in the profit or loss, and the carrying value of the asset written-down to its recoverable
amount. Should the recoverable amount increase in future periods the carrying value may be adjusted
to the lower of the recoverable value or the amortised cost of the asset had it not been impaired.
64
71
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Land and
buildings
Equipment
$'000
$'000
2022 year:
Balance at 1 July
Depreciation
Additions
Derecognition*
Balance at 30 June
2021 year:
Balance at 1 July
Depreciation
Additions
Derecognition*
Balance at 30 June
12,716
(1,994)
459
(4,664)
6,517
17,820
(2,831)
3,056
(5,329)
12,716
*Derecognition of the right-of-use assets during 2021 and 2022 is a result of lease re-assesment.
Lease liabilities
Contractual undiscounted cash flows
One year or less
From one to five years
Over five years
Total undiscounted lease liabilities
Current
Non-current
Total lease liabilities
-
-
-
-
-
-
-
-
-
-
2022
$'000
2,006
5,377
789
8,172
1,556
5,530
7,086
Total
$'000
12,716
(1,994)
459
(4,664)
6,517
17,820
(2,831)
3,056
(5,329)
12,716
2021
$'000
2,348
6,864
5,927
15,139
1,999
11,318
13,317
The lease liability is initially measured at the present value of future lease payments that are not paid
at the commencement date, discounted using the interest rate implicit in the lease or if this rate cannot
be readily determined the Group’s incremental borrowing rate. Generally, the Group uses its
incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise:
-
-
-
-
-
Fixed payments (including in-substance fixed payments), less any lease incentives receivables
Variable lease payments that depend on an index or a rate
The exercise price of a purchase option if the lessee is reasonably certain to exercise that option
The amount expected to be payable under a residual value guarantee
Payments of penalties for termination of the lease, if the lease term reflects the lessee exercising
an option to terminate the lease.
Variable lease payments not included in the initial measurement of the lease liability are recognised
directly in profit or loss.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the
lease liability (using the effective interest method) and by reducing the carrying amount to reflect the
lease payments made.
of-use assets) whenever:
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-
-
-
-
The lease term has changed or there is a significant event or change in circumstances resulting in
a change in the assessment of exercise of a purchase option, in which case the lease liability is
remeasured by discounting the revised lease payments using a revised discount rate
The lease payments change due to changes in an index or rate or a change in the amount expected
to be payable under a residual value guarantee
A lease contract is modified, and the lease modification is not accounted for as a separate lease,
in which case the lease liability is remeasured based on the lease term of the modified lease by
discounting the revised lease payments using a revised discount rate at the effective date of the
modification.
Amounts recognised in the Consolidated Statement of Comprehensive Income
Interest on lease liabilities
Depreciation
liabilities
Expenses relating to variable lease payments not included in lease
Amounts recognised in the Consolidated Statement of Cash Flows
Total cash outflow for leases
2022
$'000
359
1,993
410
2022
$'000
2,380
2021
$'000
595
2,831
304
2021
$'000
3,472
30. Notes to the consolidated statement of cash flows
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are
repayable on demand and form an integral part of the Group’s cash management are included as a
component of cash and cash equivalents for the purpose of the Consolidated Statement of Cash Flows.
The carrying value of cash is considered to approximate fair value.
72
A2B Annual Report 2022
65
66
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the
lease liability (using the effective interest method) and by reducing the carrying amount to reflect the
lease payments made.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-
of-use assets) whenever:
-
-
-
The lease term has changed or there is a significant event or change in circumstances resulting in
a change in the assessment of exercise of a purchase option, in which case the lease liability is
remeasured by discounting the revised lease payments using a revised discount rate
The lease payments change due to changes in an index or rate or a change in the amount expected
to be payable under a residual value guarantee
A lease contract is modified, and the lease modification is not accounted for as a separate lease,
in which case the lease liability is remeasured based on the lease term of the modified lease by
discounting the revised lease payments using a revised discount rate at the effective date of the
modification.
Amounts recognised in the Consolidated Statement of Comprehensive Income
Interest on lease liabilities
Depreciation
Expenses relating to variable lease payments not included in lease
liabilities
Amounts recognised in the Consolidated Statement of Cash Flows
Total cash outflow for leases
2022
$'000
359
1,993
410
2022
$'000
2,380
2021
$'000
595
2,831
304
2021
$'000
3,472
30. Notes to the consolidated statement of cash flows
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are
repayable on demand and form an integral part of the Group’s cash management are included as a
component of cash and cash equivalents for the purpose of the Consolidated Statement of Cash Flows.
The carrying value of cash is considered to approximate fair value.
66
73
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Annual Financial Report
Year Ended 30 June 2022
Reconciliation of net cash provided by operating activities with profit from ordinary activities
after income tax
There was no restricted cash at 30 June 2022 (30 June 2021 $nil) which relates to current bank facilities.
2022
$'000
2021
$'000
31. Financial instruments and financial risk management
(Loss) for the year attributable to owners of the Company
(28,118)
(18,274)
Adjustment for non-cash items:
Depreciation and amortisation
Property, plant and equipment impairment charges
Capitalised development costs impairment charges
Net (profit) on disposal of property, plant and equipment
Share-based payments
Impairment charges
Other non cash items
Changes in assets and liabilities, net of the effects of purchase of
subsidiaries:
Change in trade and other debtors
Change in inventories
Change in creditors and accruals
Change in provisions
Change in income taxes payable
Change in deferred tax balances
Net cash (used in) operating activities
Reconciliation of liabilities arising from financing activities
16,177
4,230
6,019
(97)
1,133
-
182
17,917
-
-
(254)
631
1,879
291
(14,789)
(10,265)
(396)
16,226
(436)
5,914
(12,289)
(6,244)
(262)
10,621
86
(5,322)
(1,899)
(4,851)
Interest
bearing loans
Lease
liabilities
Total liabilities
from financing
activities
Balance at 1 July 2021
Net cash flows
$'000
1,864
17,059
$'000
13,316
(2,021)
Lease net additions, derecognition and remeasure
-
(4,209)
Balance at 30 June 2022
18,923
7,086
Balance at 1 July 2020
Net cash flows
2,031
(167)
18,188
(2,576)
Lease net additions, derecognition and remeasure
-
(2,296)
Balance at 30 June 2021
1,864
13,316
Cash and cash equivalents
Cash on hand and at bank
Money market deposits
Balance per Consolidated Statement of Cash Flows
74
A2B Annual Report 2022
2022
$'000
12,295
-
12,295
$'000
15,180
15,038
(4,209)
26,009
20,219
(2,743)
(2,296)
15,180
2021
$'000
10,422
1,452
11,874
67
A2B Australia Limited
and its Controlled Entities
Restricted cash
Overview
Credit risk
Liquidity risk
Market risk
The Board of Director’s policy is to maintain a strong capital base so as to maintain investor, creditor
and market confidence and to sustain future development of the business. The Board monitors the
return on equity, which the Group defines as profit after tax divided by total shareholders’ equity. The
Board also determines the level of dividends to ordinary shareholders.
The Board seeks to maintain a balance between the higher returns that might be possible with higher
levels of borrowings and the advantages and security afforded by a sound capital position. The Group’s
target is to achieve a return exceeding its cost of equity over the medium term.
There were no changes in the Group’s approach to medium term capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
The Group has exposure to the following risks from financial instruments:
This note presents information about the Group’s exposure to each of the above risks, its objectives,
policies and processes for measuring and managing risk, and the management of capital. Further
quantitative disclosures are included throughout these Consolidated Financial Statements.
Financial risk management objectives
The Board of Directors has overall responsibility for the establishment and oversight of the risk
management framework. The Board has established the Audit & Risk Committee, which is responsible
for developing and monitoring risk management activities. The Committee reports regularly to the
Board of Directors on risk management.
Risk management practices are established to identify and analyse the risks faced by the Group, to set
appropriate policies which include risk limits and controls, and to monitor risks and adherence to
policies. Risk management practices are reviewed regularly to reflect changes in market conditions and
the Group’s activities. The Group, through their training and management standards and procedures,
aims to develop a disciplined and constructive control environment in which all employees understand
their roles and obligations.
The Audit & Risk Committee oversees how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework
in relation to the risks faced by the Group.
Credit risk
Credit risk is the risk of financial loss to the Group if a Customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables
from Customers, investments with financial institutions and securities. The carrying value of cash and
cash equivalents, trade and other receivables and deposits with financial institutions represents the
maximum credit exposure of these assets.
Impairment losses and changes on financial assets recognised in the consolidated statement of
comprehensive income were as follows:
68
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Restricted cash
Annual Financial Report
Year Ended 30 June 2022
There was no restricted cash at 30 June 2022 (30 June 2021 $nil) which relates to current bank facilities.
31. Financial instruments and financial risk management
Overview
The Board of Director’s policy is to maintain a strong capital base so as to maintain investor, creditor
and market confidence and to sustain future development of the business. The Board monitors the
return on equity, which the Group defines as profit after tax divided by total shareholders’ equity. The
Board also determines the level of dividends to ordinary shareholders.
The Board seeks to maintain a balance between the higher returns that might be possible with higher
levels of borrowings and the advantages and security afforded by a sound capital position. The Group’s
target is to achieve a return exceeding its cost of equity over the medium term.
There were no changes in the Group’s approach to medium term capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
The Group has exposure to the following risks from financial instruments:
Credit risk
Liquidity risk
Market risk
This note presents information about the Group’s exposure to each of the above risks, its objectives,
policies and processes for measuring and managing risk, and the management of capital. Further
quantitative disclosures are included throughout these Consolidated Financial Statements.
Financial risk management objectives
The Board of Directors has overall responsibility for the establishment and oversight of the risk
management framework. The Board has established the Audit & Risk Committee, which is responsible
for developing and monitoring risk management activities. The Committee reports regularly to the
Board of Directors on risk management.
Risk management practices are established to identify and analyse the risks faced by the Group, to set
appropriate policies which include risk limits and controls, and to monitor risks and adherence to
policies. Risk management practices are reviewed regularly to reflect changes in market conditions and
the Group’s activities. The Group, through their training and management standards and procedures,
aims to develop a disciplined and constructive control environment in which all employees understand
their roles and obligations.
The Audit & Risk Committee oversees how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework
in relation to the risks faced by the Group.
Credit risk
Credit risk is the risk of financial loss to the Group if a Customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables
from Customers, investments with financial institutions and securities. The carrying value of cash and
cash equivalents, trade and other receivables and deposits with financial institutions represents the
maximum credit exposure of these assets.
Impairment losses and changes on financial assets recognised in the consolidated statement of
comprehensive income were as follows:
68
75
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Impairment loss on trade receivables arising from contracts with
customers
Changes on financial assets measured at Fair Value through Other
Comprehensive Income
2022
$'000
2021
$'000
(1,973)
(1,106)
-
(333)
(1,973)
(1,439)
a) Trade and other receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each
Customer. The Group minimises concentration of credit risk in relation to trade accounts receivable by
undertaking transactions with a large number of Customers.
Credit risk in trade receivables is managed in the following ways:
The Board has established delegated limits and authority for agreements, contracts and receivable
write-off
Each new Customer is analysed individually for creditworthiness under a credit policy before the
Group’s standard payment and delivery terms and conditions are offered
Payment terms are 28 days
A risk assessment process is used for Customers over 90 days; and
Cash or bank guarantee is obtained where appropriate.
The Group assumes the credit risk for the full value of Taxi fares settled through the Cabcharge Payment
System (refer to Note 3).
Market risk
In assessing the combined collective loss allowance and specific doubtful debts provision as at 30 June
2022, the Group has considered the increased risk arising from the follow on economic impacts of the
COVID-19 pandemic. The Group has specifically assessed the economic circumstances of individual
customers in the current environment, resulting in a material year on year increase in the level of
accumulated losses relative to the gross trade receivables balance.
b) Investments
The Group limits its exposure to credit risk by placing deposits with major Australian banks.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group undertakes the following activities to ensure that there will be sufficient funds available to
meet obligations:
Prepare budgeted annual and monthly cash flows;
Monitor actual cash flows on a monthly basis and compare to liquidity requirements;
Maintain standby money market and commercial overdraft facilities; and
Maintain committed borrowing facility in excess of budgeted usage levels.
There has been no change in liquidity risk policies during the financial year.
76
A2B Annual Report 2022
69
Maturity profile of financial liabilities by remaining contractual maturities
Carrying
amount
Contractual
cashflows
6 months
or less
6 to 12
months
1 to 2
years
2 to 5
years
$'000
$'000
$'000
$'000
$'000
$'000
2022 year
Contract liabilities,
trade and other
payables
2021 year
Contract liabilities,
trade and other
payables
55,880
55,880
55,880
Loans and borrowings
18,923
18,923
1,649
74,803
74,803
57,529
39,654
39,654
39,654
Loans and borrowings
1,864
1,897
1,897
41,518
41,551
41,551
-
-
-
-
-
-
-
17,274
17,274
-
-
-
-
-
-
-
-
-
Typically the Group ensures that it has sufficient cash on demand and available liquidity to meet
expected current operational expenses, including the servicing of financial obligations; this excludes the
potential impact of extreme circumstances that cannot reasonably be predicted, such as natural
disasters. In addition, the Group maintains lines of credit as detailed in the above table.
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
The Group has no significant exposure to foreign exchange risk in respect of the Company and the
The principal risk to which financial assets and financial liabilities are exposed is the risk of loss from
fluctuations in the future cash flows or fair values of financial instruments because of a change in
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
a) Currency risk
entities it controls.
b) Interest rate risk
market interest rates.
Fixed rate instruments
Financial assets - Finance lease receivables
Financial liabilities - lease liabilities
Variable rate instruments
Financial assets - cash and cash equivalents
Financial liabilities - loans and borrowings
2022
$'000
8,659
7,086
15,745
12,295
(18,923)
(6,628)
2021
$'000
9,078
13,317
22,395
11,874
(1,864)
10,010
70
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Maturity profile of financial liabilities by remaining contractual maturities
Carrying
amount
Contractual
cashflows
6 months
or less
6 to 12
months
1 to 2
years
2 to 5
years
$'000
$'000
$'000
$'000
$'000
$'000
2022 year
Contract liabilities,
trade and other
payables
55,880
55,880
55,880
Loans and borrowings
18,923
18,923
1,649
74,803
74,803
57,529
2021 year
Contract liabilities,
trade and other
payables
39,654
39,654
39,654
Loans and borrowings
1,864
1,897
1,897
41,518
41,551
41,551
-
-
-
-
-
-
-
17,274
17,274
-
-
-
-
-
-
-
-
-
Typically the Group ensures that it has sufficient cash on demand and available liquidity to meet
expected current operational expenses, including the servicing of financial obligations; this excludes the
potential impact of extreme circumstances that cannot reasonably be predicted, such as natural
disasters. In addition, the Group maintains lines of credit as detailed in the above table.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
a) Currency risk
The Group has no significant exposure to foreign exchange risk in respect of the Company and the
entities it controls.
b) Interest rate risk
The principal risk to which financial assets and financial liabilities are exposed is the risk of loss from
fluctuations in the future cash flows or fair values of financial instruments because of a change in
market interest rates.
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
Fixed rate instruments
Financial assets - Finance lease receivables
Financial liabilities - lease liabilities
Variable rate instruments
Financial assets - cash and cash equivalents
Financial liabilities - loans and borrowings
2022
$'000
8,659
7,086
15,745
12,295
(18,923)
(6,628)
2021
$'000
9,078
13,317
22,395
11,874
(1,864)
10,010
70
77
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
As at 30 June 2022 the carrying value of financial assets and liabilities on the above table are considered
to approximate their fair value.
c) Interest rates used for determining fair value
The interest rates used to discount estimated cash flows, where applicable, are based on the
government yield curve at the reporting date plus an adequate credit spread, and were as follows:
Loans and borrowings
Finance lease receivables
d) Fair value hierarchy
2022
2021
1.5% to 3.28%
1.5% to 2%
8% to 11%
8% to 12%
To determine fair value, the Group uses valuation techniques that are appropriate in the circumstances
and for which sufficient data is available, maximising the use of relevant observable inputs and
minimising unobservable inputs. Fair value measurements that are recognised in the Consolidated
Financial Statements are categorised as follows:
• Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2: Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3: Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
The fair value hierarchy of the investments is provided below:
Level 1
Level 2
Level 3
$'000
$'000
$'000
Total
$'000
30 June 2022
Unlisted equity investments
30 June 2021
Unlisted equity investments
-
-
-
977
977
Identification of reportable segments
-
977
977
products and services provided.
The Group’s operating segments are organised and managed separately according to the nature of the
The valuation techniques and significant unobservable inputs used to determine the fair value of on
these unlisted equity investments at 30 June 2022 are as follows:
Valuation techniques
Significant unobservable inputs
Future Maintainable Earnings (FME) methodology –
the estimate of FME represents the fair value of the
unlisted equity investments on a going concern and
cash flow basis, determined by capitalising the
maintainable earnings of the investee using an
appropriate earnings multiple.
Expected earnings at 30 June 2022 using an adjusted
earnings multiple, derived from comparable
companies to the investee.
The estimate of the fair value will increase
(decrease) if the earnings and earnings multiple
increases (decreases).
Net Tangible Assets approach – the estimate of fair
value is determined by valuing the assets and
liabilities of the investee at market value (excluding
operating assets and liabilities).
Minority discount of 20%. The estimate of the fair
value will increase (decrease) if the discount rate
decreases (increases).
The carrying amount of the unlisted equity investments is sensitive to possible changes in the significant
unobservable inputs.
78
A2B Annual Report 2022
71
72
e) Sensitivity analysis
i.
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit
or loss. Therefore a change in interest rates at the reporting date would not affect profit or loss.
ii.
Sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased)
equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in
particular foreign currency rates, remain constant. The analysis is performed on the same basis for
2021.
2022
2021
Profit or loss
100 bp increase
100 bp
decrease
$'000
189
18
$'000
(189)
(18)
32. Operating segment
An operating segment is a component of the Group that engages in business activities from which it
may earn revenues and incur expenses, including revenues and expenses that relate to transactions
with any of the Group’s other components. All operating segments’ operating results are regularly
reviewed by the Group’s Chief Operating Decision Maker (CODM) to make decisions about resources
to be allocated to the segment and assess its performance, and for which discrete financial information
is available.
The Group previously operated under one business segment being the provision of taxi related services.
During the year ended 30 June 2022, the Group was organised into three operating segments
comprising of Mobility Services, Mobility Platforms and Payments. Each segment represents a strategic
business unit that offers different products and operates in different industries or markets.
In May 2022 the Group announced its intention to discontinue elements of the Payments segment. Due
to the relatively small size of elements of the Payments segment they are not considered separate
major lines of business and therefore discontinued operations disclosures have not been made.
Underlying EBITDA is the primary reporting measure used by A2B’s CODM. The CODM monitors the
operating results of the business units separately for the purpose of making decisions about resource
allocation and performance assessment.
Transfer prices between business segments are set on an arm’s length basis in a manner similar to
transactions with third parties. Segment revenue and expenses are eliminated on consolidation.
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
e) Sensitivity analysis
Annual Financial Report
Year Ended 30 June 2022
i.
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit
or loss. Therefore a change in interest rates at the reporting date would not affect profit or loss.
ii.
Sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased)
equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in
particular foreign currency rates, remain constant. The analysis is performed on the same basis for
2021.
2022
2021
32. Operating segment
Profit or loss
100 bp increase
$'000
(189)
(18)
100 bp
decrease
$'000
189
18
An operating segment is a component of the Group that engages in business activities from which it
may earn revenues and incur expenses, including revenues and expenses that relate to transactions
with any of the Group’s other components. All operating segments’ operating results are regularly
reviewed by the Group’s Chief Operating Decision Maker (CODM) to make decisions about resources
to be allocated to the segment and assess its performance, and for which discrete financial information
is available.
Identification of reportable segments
The Group’s operating segments are organised and managed separately according to the nature of the
products and services provided.
The Group previously operated under one business segment being the provision of taxi related services.
During the year ended 30 June 2022, the Group was organised into three operating segments
comprising of Mobility Services, Mobility Platforms and Payments. Each segment represents a strategic
business unit that offers different products and operates in different industries or markets.
In May 2022 the Group announced its intention to discontinue elements of the Payments segment. Due
to the relatively small size of elements of the Payments segment they are not considered separate
major lines of business and therefore discontinued operations disclosures have not been made.
Underlying EBITDA is the primary reporting measure used by A2B’s CODM. The CODM monitors the
operating results of the business units separately for the purpose of making decisions about resource
allocation and performance assessment.
Transfer prices between business segments are set on an arm’s length basis in a manner similar to
transactions with third parties. Segment revenue and expenses are eliminated on consolidation.
72
79
A2B Australia Limited
and its Controlled Entities
Segment description
Reportable segments under AASB 8 Operating Segments are as follows:
Annual Financial Report
Year Ended 30 June 2022
Reportable
segment
Mobility Services
Mobility Platforms
Payments
Principal activities
Provides Taxi network services to Taxi Operators and Drivers nationally in
Australia. These services include Taxi booking services, vehicle financing
and insurance, full Taxi fit-outs and repairs, as well as Driver training and
education.
Mobility Services are provided under brands including 13cabs, Silver Service,
Maxi Taxi and Yellow Couriers. The majority of revenue comes from
Network subscriptions that are charged monthly while revenue from
related and ancillary services are generated as and when the services are
provided (eg car sales income, interest on finance lease receivables and
others, insurance commission revenue or Taxi equipment and terminal
rental income not included in subscriptions).
Provides integrated booking, payment and dispatch technologies to
mobility providers under the brands Mobile Technologies International
(MTI) and Cabcharge.
MTI provides a SaaS booking, dispatch, payment, contact centre and
vehicle monitoring platform. MTI earns SaaS style subscription revenue
from vehicles accessing its technologies, income from bespoke software
development, and fees from project management, which are recorded
under software consulting and licence income. MTI operates throughout
Australia, New Zealand, North America, Europe and the United Kingdom.
Cabcharge provides corporate clients with a range of payment solutions to
charge trips on a designated account accompanied by detailed trip
information to enable efficient management of travel expenditure.
Cabcharge operates throughout Australia and receives service fee income
on non-cash payments based on the value of the fare processed.
Provides merchant acquiring, consulting, licensing and other payment
services under the brands FlamingoPay, Spotto, Giraffe and EFT Solutions
in Australia.
FlamingoPay represents our generic retail payment offering, this brand was
launched in FY22 reaching a total terminal count of 250. A strategic review
conducted in Q422 concluded that FlamingoPay and non-mobility
payments do not form part of A2B’s core business, these activities were
discontinued in June.
Spotto and Giraffe represent our handheld offering for taxi and hire car
drivers. The current pricing model attracts a service fee based on the value
of transactions processed and/or a terminal rental fee.
Subsequent to year end the composition of segments has changed to reflect the new business
operating model. Mobility Services will be renamed B2C and Mobility Platforms will be renamed B2B.
The continuing elements of the Payments Segment will be Spotto and Giraffe and form part of B2B.
Geographical information
Australia.
The Group operates predominantly in one geographic segment with >95% of revenue generated in
80
A2B Annual Report 2022
73
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Analysis by segment
Jun 2022
Mobility
Services
$'000
Mobility
Platforms
$'000
Payments
$'000
Unallocated
/Eliminations1
$'000
Consolidated
$'000
External segment revenue and
other income
Inter-segment segment
revenue and other income
Total segment revenue and
other income
Underlying EBITDA
86,487
36,694
4,017
1,577
69
3,251
-
(3,320)
86,556
39,945
4,017
(1,743)
9,447
19,086
(2,352)
(33,174)
128,775
-
128,775
(6,993)
Jun 2021
External segment revenue and
other income
Inter-segment segment
revenue and other income
Total segment revenue and
other income
Underlying EBITDA
Mobility
Services
$'000
Mobility
Platforms
$'000
Payments
$'000
Unallocated
/Eliminations1
$'000
Consolidated
$'000
78,575
29,293
2,890
20,607
131,365
(151)
(2,469)
-
2,620
-
78,424
26,824
2,890
23,227
131,365
1,273
13,006
(436)
(17,230)
(3,387)
1. Unallocated/Eliminations represents unallocated corporate costs, other businesses (including Mantax, a small taxi business operating in the
U.K.), Government subsidies (including JobKeeper) and consolidation elimination entries.
Reconciliation of Underlying EBITDA to Statutory Results from operating activities
Underlying EBITDA
Items not included in Underlying PBT
Asset / Balance Sheet write-offs
Termination and restructuring
Total items not included in underlying
EBITDA
Depreciation and amortisation expenses
Results from operating activities
Jun 2022
Jun 2021
$'000
$'000
(6,993)
(3,387)
(9,750)
(5,580)
(1,879)
(1,357)
(15,330)
(3,236)
(16,177)
(17,917)
(38,500)
(24,540)
Segment assets and liabilities have not been disclosed as these are not reported to the CODM and not
used by the CODM to assess performance and to make resource allocation decisions.
Through its subsidiary, MTI the Group operates in other geographic segments including North America
and Europe. MTI’s overseas revenue of $5,860,000 and non-current assets of $609,000 were included
in the Group’s Consolidated Statements.
33. Share-based payment – Long term incentive
The Group has provided Long Term Incentive (LTI) awards to the KMP, including the former CEO and
other executives, and granted them annually in the form of Rights. The grant-date fair value of equity-
settled share-based payment awards granted to employees is generally recognised as an expense, with
a corresponding increase in equity, over the vesting period of the awards. The amount recognised as
74
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Analysis by segment
Jun 2022
Annual Financial Report
Year Ended 30 June 2022
Mobility
Services
$'000
Mobility
Platforms
$'000
Payments
$'000
Unallocated
/Eliminations1
$'000
Consolidated
$'000
External segment revenue and
other income
Inter-segment segment
revenue and other income
Total segment revenue and
other income
Underlying EBITDA
86,487
36,694
4,017
1,577
69
3,251
-
(3,320)
86,556
39,945
4,017
(1,743)
9,447
19,086
(2,352)
(33,174)
128,775
-
128,775
(6,993)
Jun 2021
External segment revenue and
other income
Inter-segment segment
revenue and other income
Total segment revenue and
other income
Underlying EBITDA
Mobility
Services
$'000
Mobility
Platforms
$'000
Payments
$'000
Unallocated
/Eliminations1
$'000
Consolidated
$'000
78,575
29,293
2,890
20,607
131,365
(151)
(2,469)
-
2,620
-
78,424
26,824
2,890
23,227
131,365
1,273
13,006
(436)
(17,230)
(3,387)
1. Unallocated/Eliminations represents unallocated corporate costs, other businesses (including Mantax, a small taxi business operating in the
U.K.), Government subsidies (including JobKeeper) and consolidation elimination entries.
Reconciliation of Underlying EBITDA to Statutory Results from operating activities
Underlying EBITDA
Items not included in Underlying PBT
Asset / Balance Sheet write-offs
Termination and restructuring
Total items not included in underlying
EBITDA
Depreciation and amortisation expenses
Results from operating activities
Jun 2022
Jun 2021
$'000
$'000
(6,993)
(3,387)
(9,750)
(5,580)
(1,879)
(1,357)
(15,330)
(3,236)
(16,177)
(17,917)
(38,500)
(24,540)
Segment assets and liabilities have not been disclosed as these are not reported to the CODM and not
used by the CODM to assess performance and to make resource allocation decisions.
Geographical information
The Group operates predominantly in one geographic segment with >95% of revenue generated in
Australia.
Through its subsidiary, MTI the Group operates in other geographic segments including North America
and Europe. MTI’s overseas revenue of $5,860,000 and non-current assets of $609,000 were included
in the Group’s Consolidated Statements.
33. Share-based payment – Long term incentive
The Group has provided Long Term Incentive (LTI) awards to the KMP, including the former CEO and
other executives, and granted them annually in the form of Rights. The grant-date fair value of equity-
settled share-based payment awards granted to employees is generally recognised as an expense, with
a corresponding increase in equity, over the vesting period of the awards. The amount recognised as
74
81
A2B Australia Limited
and its Controlled Entities
Key assumptions
Share price at grant date
Expected life
Expected volatility
Dividend yield
Risk-free interest rate
Reconciliation
Performance Rights reconciliation
Rights outstanding as at 1 July
Rights granted
Rights forfeited
Rights lapsed
Rights exercised
Rights outstanding as at 30 June
Rights exercisable as at 30 June
34. Subsequent event
Dividends
Property sales
2022
28 April 2022
19 November
2021
2020
$1.20
3 years
38%
0.00%
0.15%
$1.29
3 years
37.0%
0.00%
2.68%
Number of Rights
2022
2021
3,178,743
2,457,040
2,300,000
1,111,111
(1,065,893)
(389,408)
4,412,850
3,178,743
-
-
-
-
-
-
The Board has determined that no final dividend be paid in conjunction with FY22.
The Group intends to sell its two property assets located in Alexandria, Sydney. Since the reporting date
A2B has appointed Colliers as its sales agent and instructed them to market the properties located in
9-13 O’Riordan Street, Alexandria and 9-13 Bourke Road, Alexandria.
A2B Australia Limited
and its Controlled Entities
Annual Financial Report
Year Ended 30 June 2022
Annual Financial Report
Year Ended 30 June 2022
an expense is adjusted to reflect the number of awards for which the related service and non-market
performance conditions are expected to be met, such that the amount ultimately recognised is based
on the number of awards that meet the related service and non-market performance conditions at the
vesting date.
In addition, incentive shares were granted to the Executive Chairman in FY22. These shares are subject
to the following trading conditions:
•
•
•
400,000 Shares will be restricted from trading until vesting on 30 September 2022;
200,000 Shares will be restricted from trading until vesting on 31 March 2023; and
200,000 Shares will be restricted from trading until vesting on 1 July 2023.
The total share-based payment expense for the year was $1,132,899 (FY21 $631,482).
Fair value
The fair value of the awards as at the valuation date is set out in the following table:
The reconciliation of outstanding rights is shown the following table:
The key assumptions adopted for valuation of the awards are summarised in the following table:
Grant
date/employees
entitled
2022 year
Incentive shares
granted to
Executive
Chairman
On 28 April 2022
Performance
rights granted
to Executive
Chairman
On 28 April 2022
Total number of
Rights
2021 year
Rights granted
to CEO and key
management
personnel
On 19 November
2020
Total number of
Rights
2020 year
Rights granted
to CEO and key
management
personnel
On 21 November
2019
400,000
200,000
200,000
500,000
500,000
500,000
2,300,000
666,667
444,444
1,111,111
496,552
331,034
Number
of Rights
Vesting
conditions
Valuation
methodology
Fair
Value
Performance
Period
N/A
Expected
vesting
date
30
September
2022
31 March
2023
1 July 2023
30 June
2026
28 April 2022
to 30 June
2026
Service
Service
Service
Monte Carlo
simulation
$1.29
Share price
Share price
Share price
Monte Carlo
simulation
Monte Carlo
simulation
Monte Carlo
simulation
$1.02
$0.87
$0.74
Absolute Total
Shareholder
Return (market
condition)*
Relative Total
Shareholder
Return (non-
market
condition)*
Absolute Total
Shareholder
Return (market
condition)*
Relative Total
Shareholder
Return (non-
market
condition)*
Monte Carlo
simulation
$0.68
Monte Carlo
simulation
$0.69
15
September
2023
1 July 2020 to
30 June 2023
Monte Carlo
simulation
$0.79
Monte Carlo
simulation
$0.87
15
September
2022
1 July 2019 to
30 June 2022
Total number of
Rights
827,586
* Details of the operation of LTI awards are outlined in the Remuneration Report from page 21 to 33.
82
A2B Annual Report 2022
75
76
Notes to the consolidated financial statements (continued)For the year ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Key assumptions
Annual Financial Report
Year Ended 30 June 2022
The key assumptions adopted for valuation of the awards are summarised in the following table:
Share price at grant date
Expected life
Expected volatility
Dividend yield
Risk-free interest rate
Reconciliation
The reconciliation of outstanding rights is shown the following table:
Performance Rights reconciliation
Rights outstanding as at 1 July
Rights granted
Rights forfeited
Rights lapsed
Rights exercised
Rights outstanding as at 30 June
Rights exercisable as at 30 June
34. Subsequent event
Dividends
2022
2021
28 April 2022
19 November
2020
$1.29
3 years
37.0%
0.00%
2.68%
$1.20
3 years
38%
0.00%
0.15%
Number of Rights
2022
2021
3,178,743
2,457,040
2,300,000
1,111,111
-
-
(1,065,893)
(389,408)
-
-
4,412,850
3,178,743
-
-
The Board has determined that no final dividend be paid in conjunction with FY22.
Property sales
The Group intends to sell its two property assets located in Alexandria, Sydney. Since the reporting date
A2B has appointed Colliers as its sales agent and instructed them to market the properties located in
9-13 O’Riordan Street, Alexandria and 9-13 Bourke Road, Alexandria.
76
83
A2B Australia Limited
and its Controlled Entities
Directors' Declaration
Directors’ Declaration
Annual Financial Report
Year Ended 30 June 2022
In the opinion of the Directors of A2B Australia Limited (Company):
the Consolidated Financial Statements and Notes set out on page 35 to 83, and the Remuneration
Report in the Directors’ Report, set out on page 17 to 20, are in accordance with the Corporations Act
2001 (Cth), including:
• giving a true and fair view of the consolidated entity's financial position at 30 June 2022 and of the
performance for the financial year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
•
There are reasonable grounds to believe that the Company and the controlled entities identified in Note
23 as parties to a Deed of Cross Guarantee will be able to meet any obligations or liabilities to which
they are or may become subject to by virtue of the Deed of Cross Guarantee between the Company
and those entities pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785.
The Consolidated Financial Statements and Notes comply with International Financial Reporting
Standards as disclosed in Note 2.
The Directors have been given the declarations by the Chief Executive Officer and the Chief Financial
Officer required by section 295A of the Corporations Act.
Opinion
Signed in accordance with a resolution of the Directors
Mark Bayliss
Executive Chairman
23 August 2022
David Grant
Director
23 August 2022
Independent Auditor’s Report
To the shareholders of A2B Australia Limited
Report on the audit of the Financial Report
We have audited the Financial Report of
The Financial Report comprises:
A2B Australia Limited (the Company).
• Consolidated statement of financial position as at 30
In our opinion, the accompanying Financial
Report of the Company is in accordance
with the Corporations Act 2001, including:
• giving a true and fair view of the
Group’s financial position as at 30
June 2022 and of its financial
performance for the year ended on
that date; and
•
complying with Australian Accounting
Standards and the Corporations
Regulations 2001.
June 2022;
then ended;
policies; and
• Consolidated statement of comprehensive income,
Consolidated statement of changes in equity, and
Consolidated statement of cash flows for the year
• Notes including a summary of significant accounting
• Directors’ Declaration.
The Group consists of the Company and the entities it
controlled at the year-end or from time to time during
the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in
accordance with these requirements.
84
A2B Annual Report 2022
77
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
Independent Auditor's Report
Independent Auditor’s Report
To the shareholders of A2B Australia Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
A2B Australia Limited (the Company).
The Financial Report comprises:
• Consolidated statement of financial position as at 30
In our opinion, the accompanying Financial
Report of the Company is in accordance
with the Corporations Act 2001, including:
• giving a true and fair view of the
Group’s financial position as at 30
June 2022 and of its financial
performance for the year ended on
that date; and
•
complying with Australian Accounting
Standards and the Corporations
Regulations 2001.
June 2022;
• Consolidated statement of comprehensive income,
Consolidated statement of changes in equity, and
Consolidated statement of cash flows for the year
then ended;
• Notes including a summary of significant accounting
policies; and
• Directors’ Declaration.
The Group consists of the Company and the entities it
controlled at the year-end or from time to time during
the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in
accordance with these requirements.
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
85
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in
our audit of the Financial Report of the current period.
This matter was addressed in the context of our audit of the Financial Report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on this matter.
Valuation of Goodwill at 30 June 2022 ($ 27.5 million)
Refer to Note 13: Goodwill in the Financial Report
The key audit matter
How the matter was addressed in our audit
The valuation of Goodwill is considered a
key audit matter due to the size of the
balance and the increased judgement
applied by us when evaluating the evidence
available arising from:
• The industry in which the Group operates
being impacted by disruptive technologies.
Further, there are changes in government
regulations impacting the taxi service fee
which can be applied when processing
payments; and
• Significant estimation uncertainty on the
recovery of the CGUs in the Group from the
impacts of the COVID-19 global pandemic.
We focussed on the significant forward looking
assumptions the Group applied in their value in
use models, including:
• Discount rates, which are complicated in
nature and vary according to the conditions
and environment the specific cash generating
unit (CGU) is subject to; and
• Forecast growth rates and terminal growth
rates.
In addition to the uncertainties described above,
the Group’s models are highly sensitive to small
changes in these assumptions, reducing
available headroom. This drives additional audit
effort specific to their feasibility and
consistency of application to the Group’s
strategy.
These conditions increase the possibility of
goodwill being impaired, which necessitates
additional scrutiny by us, in particular to
address the objectivity of sources used for
assumptions, and their consistent
Our audit procedures included:
• We considered the appropriateness of the value
in use method applied by the Group to perform
the annual test of goodwill for impairment
against the requirements of the accounting
standards.
• We checked the forecast cash flows in the
Group’s value in use model to the Board
approved FY23 budget.
• We assessed the accuracy of previous
forecasting for the Group as an indicator to
inform our evaluation of forecasts included in
the value in use models. We noted previous
trends where constrained market conditions
existed, in particular for the interdependencies
of key assumptions and how they impacted the
business, for use in further testing.
• We challenged the Group’s forecast cash flow
and growth rate assumptions in light of the
impact of COVID-19 and industry and regulatory
changes on the Group. We compared forecast
cash flow and growth rate assumptions for the
taxi industry against available industry data. We
considered the impact of COVID-19, including
the expected rate of recovery of the CGU’s, and
industry and regulatory changes on the Group’s
key assumptions, for indicators of bias and
inconsistent application using our knowledge of
the Group, business and customers, and our
industry experience. We checked the
consistency of the growth rates to the Group’s
revised plans and our experience regarding the
feasibility of these in the industry economic
environment in which they operate.
• We performed sensitivity analysis on the
models by varying key assumptions such as
forecast cash flows and terminal growth rate,
within a reasonably possible range. We did this
86
A2B Annual Report 2022
Independent Auditor's Report (continued)
application.
We involved valuation specialists to
supplement our senior audit team members
in assessing this key audit matter.
to identify those assumptions which are at
higher risk of bias or inconsistency in
application. Our sensitivity analysis included
various scenarios for the forecast recovery from
COVID-19.
• Working with our valuation specialists, we
independently developed a discount rate range
using publicly available data for comparable
entities, adjusted by risk factors specific to the
Group and the industry it operates in.
• We analysed the Group’s internal reporting to
assess the Group’s monitoring and
management of activities, and the consistency
of the allocation of goodwill to CGUs.
• We assessed the Group’s allocation
methodology of corporate costs and assets to
CGUs to our understanding of the business and
the criteria in the accounting standards.
• We assessed the Group’s disclosures of the
qualitative and quantitative considerations in
relation to the valuation of goodwill, by
comparing these disclosures to our
understanding obtained from our testing and
accounting standard requirements.
Other Information
Other Information is financial and non-financial information in A2B Australia Limited’s annual reporting
which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are
responsible for the Other Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report and our related assurance opinions.
In connection with our audit of the Financial Report, our responsibility is to read the Other
Information. In doing so, we consider whether the Other Information is materially inconsistent with
the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
87
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• preparing the Financial Report that gives a true and fair view in accordance with Australian
Accounting Standards and the Corporations Act 2001
•
implementing necessary internal control to enable the preparation of a Financial Report that
gives a true and fair view and is free from material misstatement, whether due to fraud or
error
• assessing the Group and Company’s ability to continue as a going concern and whether the
use of the going concern basis of accounting is appropriate. This includes disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless they either intend to liquidate the Group and Company or to cease operations, or have
no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
•
•
to obtain reasonable assurance about whether the Financial Report as a whole is free from
material misstatement, whether due to fraud or error; and
to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our
Auditor’s Report.
88
A2B Annual Report 2022
Independent Auditor's Report (continued)
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report
of A2B Australia Limited for the year
ended 30 June 2022, complies with
Section 300A of the Corporations Act
2001.
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration
Report in accordance with Section 300A of the
Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included in
pages 21 to 33 of the Directors’ report for the year
ended 30 June 2022.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
KPMG
KPM_INI_01
Cameron Slapp
Partner
Sydney
23 August 2022
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
89
A2B Australia Limited
and its Controlled Entities
Shareholder Information
Shareholder Information
The information below was prepared as at 2 August 2022.
Annual Financial Report
Year Ended 30 June 2022
A2B Australia Limited
and its Controlled Entities
Spread of shareholders
20 largest shareholders
Holder
1 Citicorp Nominees Pty Limited
2 HSBC Custody Nominees (Australia) Limited
3 ComfortDelgro Corporation Limited
BNP Paribas Noms Pty Ltd
4
5 One Managed Invt Funds Ltd
6
7
J P Morgan Nominees Australia Pty Limited
BNP Paribas Noms Pty Ltd
Prudential Nominees Pty Ltd
8
9 One Fund Services Ltd
10 National Nominees Limited
11
Swan Taxis Pty Ltd
12 National Exchange Pty Ltd
12 Portman Trading Pty Ltd
13 Bond Street Custodians Limited
14 Akat Investments Pty Limited
15 Neweconomy Com Au Nominees Pty Limited
16 Warbont Nominees Pty Ltd
17 Ms Faby Chong
18 Baradnil Pty Limited
19 Sandhurst Trustees Ltd
20 Reyob Pty Ltd
Total
Substantial shareholders
Holder
Spheria Asset Management
Investors Mutual
Sandon Capital
Comfortdelgro Corporation Limited
Edgbaston Investment Partners
Number of
shares held
30,874,975
12,125,998
8,980,676
5,080,742
4,914,135
4,724,661
4,717,642
4,000,000
3,197,429
2,897,909
2,631,004
2,000,000
2,000,000
669,112
650,000
566,507
564,219
525,487
500,000
482,000
465,617
% issued
capital
25.64
10.07
7.46
4.22
4.08
3.92
3.92
3.32
2.65
2.41
2.18
1.66
1.66
0.56
0.54
0.47
0.47
0.44
0.42
0.40
0.39
92,568,113
76.86
Number of shares
held
% issued capital
23,184,864
15,496,109
12,861,564
11,611,680
6,347,465
19.12
12.78
10.61
9.58
5.24
Information included in the substantial shareholders table is sourced from substantial shareholder
notices of the register that the Company’ maintains in accordance with section 672DA of the
Corporations Act 2001, in each case as at 2 August 2022.
Size of holding
Number of holders Number of shares held
Annual Financial Report
Year Ended 30 June 2022
% of issued
capital
0.64
3.07
2.60
11.72
81.98
100
773,971
3,717,034
3,150,293
14,202,628
99,386,757
121,230,683
1,463
1,406
452
506
55
3,882
1 to 1000
1001 to 5000
5001 to 10000
10001 to 100000
100001 and Over
Total
Voting rights
voting rights.
ASX listing
Website
The number of security investors holding less than a marketable parcel of 417 securities ($1.200 on
02/08/2022) is 635 and they hold 99163 securities.
The voting rights of shareholders are set out in the Company’s Constitution. Each shareholder is
entitled, either personally, or by proxy, attorney or representative, to be present at any general meeting
of the Company and to vote on any resolution on a show of hands or on a poll. Every shareholder
present in person, by proxy, or attorney or representative, has one vote for every share held.
The Company has only one class of shares on issue (fully paid ordinary shares), each with the same
The Company’s ordinary shares are quoted on the ASX under the trading code “A2B”, with Sydney being
the Company’s home exchange.
Details of trading activity are published in most daily newspapers and are also available on a 20 minute
delayed basis, on the Company’s website at www.a2baustralia.com/investor-center/share-price/ .
The Company is not currently conducting an on-market buy-back of its shares.
An electronic version of the Annual Report
is available on the Company’s website at
www.a2baustralia.com/investor-center/reports/ .
A printed copy of the Annual Report will only be sent to shareholders who have elected to receive one.
90
A2B Annual Report 2022
83
84
A2B Australia Limited
and its Controlled Entities
Spread of shareholders
Annual Financial Report
Year Ended 30 June 2022
Size of holding
Number of holders Number of shares held
1 to 1000
1001 to 5000
5001 to 10000
10001 to 100000
100001 and Over
Total
1,463
1,406
452
506
55
3,882
773,971
3,717,034
3,150,293
14,202,628
99,386,757
121,230,683
% of issued
capital
0.64
3.07
2.60
11.72
81.98
100
The number of security investors holding less than a marketable parcel of 417 securities ($1.200 on
02/08/2022) is 635 and they hold 99163 securities.
Voting rights
The voting rights of shareholders are set out in the Company’s Constitution. Each shareholder is
entitled, either personally, or by proxy, attorney or representative, to be present at any general meeting
of the Company and to vote on any resolution on a show of hands or on a poll. Every shareholder
present in person, by proxy, or attorney or representative, has one vote for every share held.
The Company has only one class of shares on issue (fully paid ordinary shares), each with the same
voting rights.
ASX listing
The Company’s ordinary shares are quoted on the ASX under the trading code “A2B”, with Sydney being
the Company’s home exchange.
Details of trading activity are published in most daily newspapers and are also available on a 20 minute
delayed basis, on the Company’s website at www.a2baustralia.com/investor-center/share-price/ .
The Company is not currently conducting an on-market buy-back of its shares.
Website
An electronic version of the Annual Report
www.a2baustralia.com/investor-center/reports/ .
is available on the Company’s website at
A printed copy of the Annual Report will only be sent to shareholders who have elected to receive one.
84
91
Corporate Directory
A2B Australia Limited
and its Controlled Entities
Annual General Meeting
Annual Financial Report
Year Ended 30 June 2022
The 2022 Annual General Meeting of the shareholders of A2B Australia Limited will be held at 11am on
Thursday 17 November 2022 in The Gold Melting Room, The Mint, 10 Macquarie Street, Sydney.
Full details provided in the Notice of Meeting.
Registered Office
A2B Australia Limited
ABN 99 001 958 390
9-13 O’Riordan Street
Alexandria NSW 2015
T: +61 2 9332 9222
www.a2baustralia.com
Company Secretary
Adrian Lucchese
Auditor
KPMG
International Towers Sydney 3
300 Barangaroo Avenue
Sydney NSW 2000
Share Registry
Link Market Services Limited
Locked Bag A14
Sydney South NSW 1235
T: 1300 724 911
www.linkmarketservices.com.au
92
A2B Annual Report 2022
85
A2B Australia Limited
ABN 99 001 958 390
94
A2B Annual Report 2022