Annual Report 2024
Annual Financial Statements 30 June 2024
Acumentis Group Limited (ASX: ACU)
ABN 50 102 320 329
Property and
Business Valuation,
Australia wide
Your local, Australian owned property and business valuation experts.
From Byron to Denham, Bamaga to Dover, and everywhere in between.
ACUMENTIS.COM.AU
FY—
2024
1. INTRODUCTION
Chairman’s Report ............................................ 12
CEO’s Report ..................................................... 14
2. FINANCIAL STATEMENTS
Directors’ Report ............................................... 22
Auditor’s Independence Declaration ............... 39
Statement of Profit or Loss and Other
Comprehensive Income ................................... 40
Statement of Financial Position ....................... 41
Statement of Changes in Equity ....................... 42
Statement of Cash Flows .................................. 43
3. NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
How the Numbers are Calculated .................... 46
Revenue ............................................................ 46
Material Profit or Loss Items ............................ 47
Other Income and Expense Items ................... 47
Income Tax Expense......................................... 48
Financial Assets and Liabilities ........................ 49
Non Financial Assets and Liabilities ................. 55
Equity ................................................................ 67
Other Reserves ................................................. 68
Cash Flow Information ..................................... 68
4. RISK
Significant Estimates & Judgements ............... 71
Financial Risk Management.............................. 71
Capital Management ......................................... 76
5. GROUP STRUCTURE
Business Combinations .................................... 81
Interests of Other Entities ................................ 83
6. UNRECOGNISED ITEMS
Contingent Liabilities ........................................ 85
Commitments ................................................... 85
Events occurring after the
reporting period ................................................ 86
7. OTHER INFORMATION
Related Party Transactions .............................. 89
Share-based Payments .................................... 90
Remuneration of Auditors ................................ 93
Earning Per Share ............................................. 94
Parent Entity Financial Information ................. 95
Going concern ................................................... 95
Summary of Significant
Accounting Policies ........................................... 96
8. CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Consolidated Entity Disclosure Statement ..... 100
9. DIRECTORS’ DECLARATION
Directors’ Declaration ...................................... 102
Independent Auditor’s Report ........................ 104
ASX Additional Information ............................. 108
TABLE OF CONTENTS
Introduction
ASX:ACU FY23-24
Pg 7
Acumentis Annual Report 2024
ACUMENTIS 2024 ANNUAL REVIEW
At Acumentis, we are proud to be a service focussed, people-centric organisation. Our focus is always on understanding
our clients goals and ensuring that our advice and services provided empower our clients to progress towards these
goals with decision certainty.
Our company culture and the tangible benefits we provide our clients enables Acumentis to deliver enhanced client
satisfaction as well as attracting and retaining the highest calibre employees.
Our culture includes a focus on quality, innovation and continually challenging the way we do things which enables us
to evolve and adapt in an ever changing and competitive market.
Diversified Business Growth
Acumentis continues to successfully implement its diversification strategy. Over-reliance on finance-related property
valuations was identified as a key risk for the business leaving it exposed to downturns in the property cycle as well
as downward pressure on fees. Several years ago, we made diversification of services and of the markets we target
a high priority. Upskilling existing staff and focussed recruitment has ensured our success in diversifying our income
streams such that non-finance related services now exceed 40% of our revenues.
Innovation and Sustainability
Sustainability is a core focus of our operations. Our residential business has been paperless for many years and we are
moving all business lines to reduce or eliminate paper from their processes. We are investing in electronic portals for
exchanging documents with our clients and partners in a safe and secure way. The introduction of Tapt business cards
and reusable, sustainable, locally sourced promotional items enhance our brand and demonstrates our commitment
to reducing our impact on the environment.
Community Engagement
Supporting our communities is at the heart of Acumentis. This year, a dedicated group of Acumentis team members
participated in the Live Like Her Challenge, raising awareness and funds to help secure housing for homeless women
over 55. By sleeping in a car, they highlighted the importance of this cause and reinforced the belief that everyone
deserves a safe and secure home.
SMSF
FAMILY LAW
INFRASTRUCTURE
BUSINESS VALUATIONS
Pg 8
Acumentis Annual Report 2024
PEOPLE & CULTURE
Acumentis’ success is built on the incredible enthusiasm, experience, and client
focussed dedication of our team. At Acumentis, our compass guides our every
decision and action, ensuring we remain aligned with our values.
Our Guiding Principles
A highly developed values system acts like a compass. It serves as a guide to
navigate and direct, to keep us heading the right way, or redirects us when facing
uncertainty. At Acumentis, we refer to this values system as our Guiding Principles.
These principles guide us, to make decisions with certainty.
Our Guiding Principles are:
•
Never Quit
•
Embrace Equality of Opportunity
•
Support Our People & Clients
The principles are at the core of everything we do. Some of the initiatives from the past financial year that reflect these
values include:
•
Annual awards for employees that exemplify these principles, delivering exceptional service to our clients.
•
Alignment of key position competencies with our values and use of recruitment testing tools to ensure new hires
align with our values.
•
The launch of our Darwin, NT office with a dedicated physical presence.
•
The return of nine team members who previously worked at Acumentis, proving that we offer a better career
experience than our competitors.
•
An increase in participation in our Internal Mobility program, with five employees relocating across states or
territories – we are proud that at Acumentis, you can take your career anywhere in Australia.
Workplace Giving
Through our recently launched Workplace Giving Program “Acumentis Caring for a Cause” we have raised over
$30,000 via the support of our team and business.
We support the following charities via the program and also support our employees in their own fundraising and
charitable endeavours.
•
Walk the Talk
•
One Team
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Acumentis Annual Report 2024
GUIDING PRINCIPLE COMPASS
Diversity & Inclusion
As a people-centric organisation, Acumentis is absolutely committed to providing opportunities for all ensuring a
diverse and inclusive environment.
Key initiatives we have successfully implemented include:
•
The sponsorship of international recruits that are now living and working as Valuers in Rockhampton, Sydney and
Melbourne.
•
Provision of the Acumentis First Nations Scholarships at both CQU, QLD and Curtin, WA.
•
Year-on-year reduction in our WGEA-measured Gender Pay Gap.
•
Team members participating in the Property Council of Australia - 500 Women in Property program.
•
Provision of Mental Health First Aid training to our employees.
Acumentis employs highly skilled staff across the whole of Australia
Staff Split by State & Territory:
12%
1%
4%
33%
30%
2%
13%
5%
ALFRED
HARRIETT
BING
Pg 10
Acumentis Annual Report 2024
GENDER DIVERSITY
EMPLOYMENT TYPE
AGE DIVERSITY
■ No response ■ Aged 50+ ■ Age 41-50 ■ Aged 31-40
■ Aged 21-30 ■ Aged Under 21
■ Female ■ Male ■ No response
■ Full-time ■ Part-time ■ Casual ■ Unassigned
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Acumentis Annual Report 2024
People Value Proposition
Our People Value Proposition (PVP) at Ac“U”mentis delivers dedicated initiatives to attract and retain the highest
calibre of employees, maximising the value of services we provide to our clients.
Some of the initiatives included in our PVP:
•
Relaunch of our Annual Wellness Calendar where we have offered competitions, webinars and assistance relating
to Women’s and Men’s Health, Financial Wellness, Healthy Hearts and Step-tember.
•
Parental Leave & Support. We proudly offer 4 weeks of paid parental leave regardless of gender, a one off lump
sum superannuation payment, return to work bonus and counting unpaid parental leave towards the calculation
of long service leave entitlements.
•
Skin Cancer Checks. Skin is the body’s largest organ, and regular screenings can detect potential issues early on,
leading to better outcomes, so this is a proactive measure to safeguard skin health by reimbursing the cost of all
of our team’s skin cancer checks.
•
Volunteer Day. Each employee has the opportunity to take one day of paid leave per year to spend volunteering
in their community
•
Study Leave. Employees who are studying to complete their valuation qualifications can be granted study leave
at full pay pending the stage of their degree they are in.
Commitment to Quality
Acumentis is absolutely committed to ensuring all our stakeholders receive the highest quality and safest experiences.
Our business continues to maintain internationally recognised certification for Quality (ISO 9001) and IT Security (ISO
20001). This year we have expanded our certification portfolio to include Safety (ISO 45001) and Environment (ISO
14001) with stage one, systems compliance complete.
STAGE 1 COMPLETE
It is with pleasure I present my Chairman’s report for the
FY24.
The last financial year saw a further improvement in the
financial results of the business as the strategies pursued
for several years bear fruit. We have seen operating
revenues grow by 5% and operating profit almost doubling.
With the continued improvement in profits, we are very
pleased to declare a final dividend of 0.22 cents per
ordinary share. This dividend, whilst modest, is clear
evidence of not only the company’s recovery from the
cyber-attacks of 2019, but the strong financial position it is
now in. This is the culmination of many years of hard work
by the directors, executive management and employees.
It now allows us to start to reward our loyal shareholders
for their ongoing support
We see this as another step in the growth of the business.
I look forward to continued growth in revenue and
associated profits in line with our strategies which will
allow us to increase shareholder returns and equity in the
future.
Our strategy to continually diversify our services and
products has seen revenues from non-mortgage related
services continue to grow whilst the mortgage market
continues to become a tougher and less profitable
segment to operate in.
During the year, we acquired the business and assets of
Gill Wright & Associates Business Valuations which has
added additional non-mortgage related services to our
portfolio. Our plan is to grow this business line over the
coming years on the back of our national footprint and
strong client relationships.
We have also agreed to settle the deferred contingent
consideration associated with our acquisitions of
Acumentis (WA) Pty Ltd and Acumentis (SA) Pty Ltd
in FY22 which will allow us to fully integrate these
businesses. This will see our leadership team grow and
diversify these businesses as we have done with the rest
of the Acumentis business. This consolidates our “single
national business”.
We continue to prosecute our twin strategies of service
diversification and building on our national footprint
and single entity structure. In conjunction with ongoing
investment in IT, AI and associated operating efficiencies,
we have also set a goal of significant recruitment of skilled
executives to deliver valuation and advisory services
to our clients across financial institutions, corporate &
private clients and, of course, government entities.
As we now focus on the new financial year and beyond,
with a clear focus on growth as well as continuing to
reward our shareholders, I would like to thank our senior
leadership team, my fellow directors, all the Acumentis
staff, our clients and our shareholders for their hard work,
ongoing support and loyalty to the business.
Keith Perrett
Acumentis Chairman
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Acumentis Annual Report 2024
Chairman’s
Report
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Dear Shareholders,
I am pleased to present my 2024 CEO’s Report to shareholders following a year in which Acumentis has delivered
further improvements in financial performance built on the strategies implemented over the last several years.
Geographic Growth
Throughout FY24 we continued to invest in our geographic footprint including growth in our ACT and VIC businesses
and also the establishment of an office in Darwin.
This further strengthens our national business enabling us to service our client needs across the length and breadth
of Australia via locally based experts.
Overall, we have grown our headcount by 6% which will enable the business to support continued revenue growth
and diversification of services.
CEO’s
Report
Pg 15
Acumentis Annual Report 2024
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Acumentis Annual Report 2024
“
I would also like to thank our many clients
across all sectors who continue to engage with
Acumentis, allowing Acumentis to deliver
decision certainty and valuable services in
support of their business success.
Pg 16
Acumentis Annual Report 2024
Establishment of National Business & Rent Roll Valuation Business
In February 2024, we acquired the assets and business of Gill Wright & Associates Business Valuations which has
allowed Acumentis to establish a national team of highly experienced business and rent roll valuers. This provides
our existing and new clients with an alternative to the large international accounting firms or smaller boutique
accounting practices.
Establishment of a National Specialist Infrastructure and Acquisition Projects Group
Acumentis has a long-established team of specialists providing valuation and land acquisition expertise to
constructing authorities, government departments, corporations and the resource industry. We have grown this
team through the latter part of FY24 and look forward to providing these services to an increasing client base.
Settlement of Deferred Consideration for FY22 Acquisitions
In May 2024, we accelerated the settlement of contingent consideration relating to the FY22 acquisitions of
Acumentis (WA) Pty Ltd and Acumentis (SA) Pty Ltd. Settling these liabilities early assists in providing a platform
to generate operational savings and growth to top and bottom lines. In addition this enabled the business to align
its management reporting lines nationally allowing the wider business and senior leadership team to support the
growth of these businesses. The settlement cleared significant liabilities from the balance sheet and realised a gain
of $995K in the profit and loss statement for FY24.
Pg 17
Acumentis Annual Report 2024
Settlement of Cyber Insurance Aggregation Claim from FY29
Post year end we reached agreement to settle the cyber insurance aggregation claim dating back to the cyber-
attacks in 2019. This claim had been recorded as a $1.1M contingent liability and strongly defended since 2019,
however to avoid ongoing legal costs and the risks associated with litigation we have now settled the matter for
$300K and this amount has been accrued in the FY24 results.
FY24 Performance
FY24 saw a 5% year on year increase in operating revenues and, whilst the business invested in recruitment of senior
skilled employees and additional promotional activities to drive ongoing growth, this still allowed us to deliver a
9% increase in EBITDA (adjusted to add back the one-off cost associated with settlement of insurance aggregation
claim).
The success of our strategies is demonstrated by a 5% increase in operating revenue and a 93% increase in operating
profit.
6,000
5,000
4,000
3,000
2,000
1,000
-
FY23 V FY24 EBITDA
FY23 EBITDA
Increase in revenue
Increase in employment expense
Increase in promotion expense
Decrease in other expenses
FY24 EBITDA
REVENUES
+5%
OPERATING PROFIT
+93%
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Acumentis Annual Report 2024
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Acumentis Annual Report 2024
Market Outlook
We anticipate economic conditions in FY25 to remain challenging with high interest rates and inflation likely to
continue through much of the year.
Expectations for FY25
Despite the challenges associated with ongoing soft economic conditions, the business is in a position to grow and
continue to deliver improved profitability.
As we wrap up our reporting for FY2024, I would like to personally thank our board of directors, my senior leadership
team and our talented and hard-working employees across Australia, who have all contributed to the ongoing success
of the business via their hard work, support for our strategies and, in particular, unwavering focus on delivering
excellent service to our clients.
I would also like to thank our many clients across all sectors who continue to engage with Acumentis, allowing
Acumentis to deliver decision certainty and valuable services in support of their business success.
Finally, I would like to express my continued appreciation for the ongoing support provided by our shareholders and
look forward to rewarding this support via dividends and share price growth into the future.
Timothy Rabbitt
CEO
Financial statements
ASX:ACU FY23-24
Pg 20
Acumentis Annual Report 2024
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Acumentis Annual Report 2024
TABLE OF CONTENTS
Directors’ report ...................................................................................................................................................... 22
Remuneration Report – audited .............................................................................................................................. 29
Auditor’s independence declaration ....................................................................................................................... 39
Consolidated statement of profit or loss and other comprehensive income ......................................................... 40
Consolidated statement of financial position ......................................................................................................... 41
Consolidated statement of changes in equity ........................................................................................................ 42
Consolidated statement of cash flows .................................................................................................................... 43
Notes to the consolidated financial statements ..................................................................................................... 44
How the numbers are calculated ............................................................................................................................ 46
Risk .......................................................................................................................................................................... 70
Group structure ....................................................................................................................................................... 80
Unrecognised items ................................................................................................................................................. 84
Other disclosures ..................................................................................................................................................... 88
Consolidated entity disclosure statement ............................................................................................................100
Directors’ declaration ............................................................................................................................................102
Independent auditor’s report to the members ....................................................................................................104
ASX additional information ...................................................................................................................................108
Pg 22
Acumentis Annual Report 2024
DIRECTORS’ REPORT
The Directors present their report together with the financial report of the Consolidated Entity, being Acumentis
Group Limited (“the Company”) and its controlled entities, for the year ended 30 June 2024 and the auditor’s report
thereon.
Directors & Company Secretary
The Directors & Company Secretary of the Company in office at any time during or since the end of the financial year
are:
Keith Perrett
Independent Director
Chair of the Board
25/05/18 – current
Non-Executive director
01/02/18 - current
Audit & Risk Committee
22/02/18 – 21/11/19
21/02/21 – 22/04/21
Chair of Audit & Risk
Committee
08/11/22 – 31/01/24
People & Culture Committee
22/02/18 – 21/11/19
21/02/21 – 22/04/21
08/11/22 – 14/12/23
Chair of People & Culture
Committee
25/05/18 – 21/11/19
Les Wozniczka
Non-Executive Director
13/04/21 – current
People & Culture Committee
22/04/21 – current
Audit & Risk Committee
22/04/21 – 07/11/22
Keith Perrett brings to the board strong experience in strategy development,
government relations, stakeholder engagement and business development.
He also has a strong business and government network, particularly within
New South Wales & Queensland.
He is currently Non-Executive Chairman of Silver Mines Ltd (ASX:SVL) and
has previously held positions as the Chairman of the Grains Research and
Development Corporation (GRDC), the National Rural Advisory Council
(NRAC), the Wheat Research Foundation (WRF), and President of the Grains
Council of Australia.
Directorships of Other Listed Entities in Last 3 Years
Silver Mines Ltd, 21/06/16 - current
Les Wozniczka has been an active private investor since retiring as Chief
Executive of Futuris Corporation in 2008 and currently holds a 11.9% stake in
Acumentis Group Limited.
He has been a director of public companies and is experienced in the
management of regulated entities.
Prior to Futuris Corporation, Les was a founding shareholder in Corporate
Governance International, a partner in The Partners Group offering corporate
advice, a Potter Partners partner and investment banker and international
currency and bond manager.
Les has an MBA and BSc (Psych) from UNSW and DipEd from the University
of Adelaide.
Pg 23
Acumentis Annual Report 2024
Andrea Staines OAM
Independent Director
Non-Executive director
26/09/19 - current
Chair of People & Culture
Committee
21/11/19 – current
Audit & Risk Committee
21/11/19 – current
Jo Mikleus
Independent Director
Non-Executive director
01/12/23 - current
People & Culture Committee
14/12/23 – current
Audit & Risk Committee
14/12/23 – 31/01/24
Chair of Audit & Risk
Committee
01/02/24 – current
Andrea Staines OAM has been a professional Non-Executive Director in excess of
fifteen years on a range of Australian and New Zealand entities and is currently
on the board of social enterprise UnitingCare Queensland and Sunshine Coast
Airport.
Andrea has experience in the property sector through her time on the board of
QIC. She has extensive experience from being on the boards of entities with
operations distributed nationwide including social enterprise Goodstart Early
Learning, ASX-listed Aurizon & Kelsian Group, Australia Post and Australian Rail
Track Corporation.
Andrea is a former CEO of Australian Airlines (mark II), a Qantas subsidiary flying
between Asia and Australia, which she co-launched. During this time, she was
also a member of the Qantas Executive Leadership Team. Prior to this, Andrea led
Qantas Revenue Management - a team that optimized Qantas passenger revenue
using mathematical techniques. Before joining Qantas, Andrea worked in various
financial and strategy roles with American Airlines at their Dallas headquarters.
Andrea has an MBA from the University of Michigan and a Bachelor of Economics
from the University of Queensland. She is a Fellow of the Australian Institute of
Company Directors (AICD) and a Member of Chief Executive Women (CEW).
Directorships of Other Listed Entities in Last 3 Years
Kelsian Group Limited (previously SeaLink Travel Group Limited)
15/02/16 – 25/10/22
Jo is a growth-focused and customer-orientated C-Suite executive with over
35 years of experience in banking, business and technology, including as
CEO. Across a diverse career in public, private and PE-backed companies, she
has developed a track record of innovating and successfully leading people
through structural, technology, social and regulatory change.
She is the Senior Vice President (Operations) at Cyble Inc., an AI cyber threat
intelligence company. She is responsible for leading the global operations
teams connecting software, cloud and platform, engineering, IT, cybersecurity,
research, service delivery, sales, facilities, workplace resources and related
operational units. She is a key influencer in the APEA market for Cyble while
also being responsible for scaling two wholly owned businesses - The Cyber
Express and Am I Breached.
Her other directorships include being the NED and Chair of the Audit Committee
at Avenue Bank, a digital bank that provides better banking solutions for
Australian businesses, starting with disrupting the bank guarantee market.
Jo passionately advocates for customer-design-thinking, disruptive innovation,
leadership, culture and inclusion.
Jo has a Bachelor of Social Science (Economics) from UNSW and is a Graduate
of the Australian Institute of Company Directors (AICD).
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Acumentis Annual Report 2024
Timothy Rabbitt
Managing Director
Executive director
10/12/20 - current
John Wise
Company Secretary
27/09/16 – current
Tim has worked with Acumentis since 1992 (then Taylor Byrne) and been in
the CEO role since September 2019 and was appointed Managing Director in
December 2020.
Tim led Taylor Byrne from 2013 until the merger with LMW in 2019 and
was instrumental in the transition of the company from a partnership into a
corporate structure.
As CEO of Acumentis Tim holds overall responsibility for the management
of the business, including risk management, governance, strategic planning
and financial management. He has worked across the commercial, industrial
and specialised rural property sectors throughout Queensland, the Northern
Territory, New South Wales and Western Australia.
A Certified Practicing Valuer, Tim specialises in litigation and acquisition
matters and has been involved in numerous gas, mining and powerline
easement acquisition projects throughout Queensland and New South
Wales. He has regularly acted as an Expert Witness in various courts, and
been involved in negotiations for the acquisition of properties for roads, rails,
dams, mines, powerline and gas and water pipeline easements, and gas
infrastructure.
Tim has served as the Queensland President of the Australian Property
Institute, is a member of the Valuation Board of Review for the Northern
Territory, the Royal Institute of Chartered Surveyors, the International Right
of Way Association, and the Australian Institute of Company Directors.
John joined Acumentis in September 2016 as Chief Financial Officer and
Company Secretary.
John has had extensive experience in the property services sector having
previously held the position of CFO & Company Secretary at Savills from 1999
until 2016.
John trained with Price Waterhouse in the UK and also worked in Hungary
before emigrating to Australia in 1990.
John has a Bachelor of Science, Honours Degree in Mathematics, is a fellow of
the Institute of Chartered Accountants in England and Wales (ICAEW) and a
graduate of the Australian Institute of Company Directors (AICD).
Pg 25
Acumentis Annual Report 2024
Directors’ Meetings
The number of directors’ meetings held, and the number of meetings attended by each of the directors (when a
director) of the Company during the financial year were as follows:
Company particulars
Acumentis Group Limited is incorporated in Australia.
The address of the registered office is Level 7, 283 Clarence Street, Sydney, NSW 2000.
Corporate Governance Statement
Acumentis Group Limited and the board are committed to achieving and demonstrating the highest standards of
corporate governance. Acumentis Group Limited has reviewed its corporate governance practices against the
Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance
Council.
The 2024 Corporate Governance Statement is dated as at 30 June 2024 and reflects the corporate governance
practices in place at the end of the 2024 financial year. The 2024 Corporate Governance Statement was approved by
the board on 23rd August 2024 and can be viewed at:
https://www.acumentis.com.au/investor-center/corporate-governance/
https://www.acumentis.com.au/investor-center/corporate-governance/
Principal activities
The principal activity of the Consolidated Entity during the course of the financial year was property valuation. There
were no significant changes in the nature of the activities of the Consolidated Entity during the year.
Board
Audit & Risk
Committee
Nominations &
Remuneration Committee
Director
Held
Attended
Held
Attended
Held
Attended
Keith Perrett
9
9
3
3
2
2
Andrea Staines
9
9
4
4
4
4
Jo Mikleus
6
6
2
2
3
3
Timothy Rabbitt
9
9
-
-
-
-
Les Wozniczka
9
9
4
4
4
4
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Acumentis Annual Report 2024
Review of operations
The company delivered a year-on-year increase in revenues from continuing operations of 5% with growth in fees
from financial institutions of 2% and corporate and private clients of 18% offset by an 11% reduction in fees from
Government entities due to the scaling down of work relating to the 2022 flood events. Our regional business
continued to grow with the opening of an office in Darwin and growth in our Canberra office and we have seen a
successful launch of our business valuations services via the acquisition of the business and assets of Gill Wright &
Associates Business Valuations.
The company booked an impairment charge against previously capitalised software which is now deemed obsolete
as the company’s strategy is to move away from in-house developed software to use of cloud-based systems and
“low-code / no-code” platforms to support the business. This strategy improves agility and reduces ongoing costs of
development.
The company agreed to settle a long running claim from its cyber insurer relating to the cyber attacks in 2019. The
claim related to whether the two attacks should be aggregated and the insurers had demanded repayment of $1.1M
benefit paid in 2019. The company has agreed to repay $300K in full and final settlement of the aggregation claim in
order to avoid legal costs defending the claim and the associated litigation risk if the matter progressed to trial.
The company also recorded legal costs and provision for settlement of a legal claim within the insurance excess.
Whilst the company has strong legal advice that the claim is defensible, if settlement is achieved or the matter is
litigated, the company’s exposure will be limited to the insurance excess which has been fully provided as at 30 June
2024.
The company delivered an operating profit of $1,403 (FY23 $727K) and a profit before tax of $1,645 (FY23 $727K).
Year ended
30 June 2024
$000s
Year ended
30 June 2023
$000s
Increase /
(Decrease)
$000
% Change
Revenue
Operating revenue
56,187
53,700
2,487
5%
Fair value adjustment on early settlement of
deferred, contingent consideration
995
-
995
100%
57,182
53,700
3,482
6%
Profit before tax
Operating profit
1,403
727
676
93%
Fair value adjustment on early settlement of
deferred, contingent consideration
995
-
995
100%
Settlement of cyber-insurance aggregation claim
(300)
-
(300)
100%
Costs incurred and provision for settlement of legal
claim within insurance excess
(180)
-
(180)
100%
Impairment of intangible assets (computer software)
(273)
-
(273)
100%
1,645
727
918
126%
Income tax (expense) / benefit
(220)
(298)
78
26%
Net profit after tax from continuing operations
1,425
429
996
232%
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Acumentis Annual Report 2024
The result for the year ended 30 June 2024 includes the following significant items:
Business Overview
The business continues to diversify its revenues streams geographically with expansion into the Northern Territory
and growth in the ACT and VIC in particular. The business has also successfully launched its business valuations
services via the acquisition of Gill Wright & Associates Business Valuations and anticipates national growth in this
offering over coming years.
The current financial year saw growth of 5% in revenues from operations with continued strong growth in fees from
corporate and private clients demonstrating the ongoing success of the company’s diversification strategy to be less
reliant on fees from financial institutions.
The business now has a more diversified fee base with non-finance related fees making up circa 40% of total fees.
Outlook
The Board expects economic conditions in FY25 to remain challenging with high interest rates and inflation likely to
continue through much of the year. Despite these challenges, the business is in a position to grow and continue to
deliver improvements to profitability.
Dividends
On 30 August 2024, the Directors resolved to pay a final, fully franked, dividend of 0.22 cents per ordinary share
totalling $487,201 (FY23: no dividends declared).
The record date for the final dividend will be 6 September 2024, with payment to be made on 13 September 2024.
Shares will trade excluding entitlement to the final dividend on 5 September 2024.
No dividends were paid by the Company since the end of the previous financial year.
$000s
Income
Release of contingent, deferred consideration in relation to acquisitions of:
Acumentis (WA) Pty Ltd
557
Acumentis (SA) Pty Ltd
438
995
Expenses
Costs incurred and provision for settlement of legal claim within insurance excess
180
Settlement of cyber-insurance aggregation claim
300
Impairment of capitalised software due to obsolescence
273
Pg 28
Acumentis Annual Report 2024
Events subsequent to the end of the reporting period
Subsequent to 30 June 2024, the Consolidated Entity reached agreement to settle the cyber insurance aggregation
claim previously disclosed as a contingent liability. The matter was settled for $300,000 which has been included in
other payables and accruals as at 30 June 2024. Refer note 15.
There were no other significant events subsequent to the end of the reporting period
State of affairs
There have been no significant changes in the state of affairs of the Consolidated Entity that occurred during the year
under review.
Likely Developments
Refer to the Outlook included in this Directors’ Report above.
Environmental regulation
The operations of the Consolidated Entity are not subject to any significant environmental regulation under a law of
the Commonwealth or of a State or Territory.
Pg 29
Acumentis Annual Report 2024
REMUNERATION REPORT – AUDITED
People & Culture Committee
The People & Culture Committee incorporates the roles of a Nominations & Remuneration Committee.
A major role of the People & Culture Committee is to ensure that the remuneration policies and outcomes achieve
an appropriate balance between the interests of Acumentis Group shareholders and rewarding and motivating
executives and employees in order to achieve their long-term commitment to the Consolidated Entity. The committee
meets as required but generally at least four times per year. The members of the People & Culture Committee during
the year were:
Remuneration strategy
Remuneration levels are competitively set to attract and retain appropriately qualified and experienced directors and
senior executives.
The remuneration of the Consolidated Entity’s senior executives includes a mix of fixed components and performance-
based incentives comprising short term incentives (“STI’s”) and long-term incentives (“LTI’s”).
The board considers that the performance-based incentive is appropriate as it directly aligns the individuals reward
with the Consolidated Entity’s performance.
Name
Independent
Non-executive
Current members
Andrea Staines (Member & Chair from 21 November 2019)
Y
Y
Leslie Wozniczka (Member from 22 April 2021)
N
Y
Jo Mikleus (Member from 14 December 2023)
Y
Y
Former members
Keith Perrett (Member until 14 December 2023)
Y
Y
Component
Settled
How Measured
Fixed
Cash
Market rates, reviewed annually.
STI
Cash
The performance of the Consolidated Entity and the individual
performance of the executives based on achievement of specific
key performance indicators (KPI’s) which include financial and
non-financial targets. STI’s and the associated KPI’s are reviewed
and set annually with STI payments, if any, being made post
finalisation of the annual external audit.
LTI
Share Based
The performance of the Consolidated Entity and the individual
performance of the executives. The performance of the Consolidated
Entity is based on total shareholder return and earnings per
share. LTI’s have a minimum period of 3 years and are forfeited if
the executive ceases to be employed by the Consolidated Entity.
Pg 30
Acumentis Annual Report 2024
In considering the Consolidated Entity’s performance, the board has regard to the following indices in respect of the
current financial year and previous years.
The factors that are considered to affect total shareholders return are summarised below.
Non-executive directors are paid an annual fee for their service on the board and committees which is determined by
the People & Culture Committee. Aggregate remuneration for all non-executive directors is not to exceed $580,000
per annum as approved by the shareholders. Non-executive directors’ aggregate salary & fees for the year were
$315,950. These fees include statutory superannuation. Non-executive directors do not receive bonuses nor are
they entitled to be issued with options or performance rights on securities in the Consolidated Entity. Non-executive
directors do not receive any retirement benefits other than statutory superannuation payments. Non-executive
directors do not receive separate fees for committee memberships, however, from February 2024, do receive fees for
Chairing these committees (Audit & Risk Committee - $10,000 pa, People & Culture Committee - $7,500 pa).
The Consolidated Entity has a policy that prohibits those that are granted share-based payments as part of their
remuneration from being compensated for changes in value of the underlying securities.
2024
$000
2023
$000
2022
$000
2021
$000
2020
$000
Revenue from rendering services
56,203
53,519
55,163
44,043
36,666
EBITDA1
3,433
3,420
2,035
4,902
(38)
Net profit / (loss) to equity holders
of the Company
1,425
429
1,445
(9,688)
(2,555)
Earnings / (loss) per share (cents)
0.65
0.23
0.83
(6.19)
(1.76)
2024
2023
2022
2021
2020
Dividends declared (per share)
0.22 cents
-
-
-
-
Share price at the end of the period
$0.067
$0.061
$0.095
$0.115
$0.080
1.
EBITDA excludes gain on de-recognition of investment in associated company in 2022, fair value adjustment on early settlement of deferred, contingent
consideration in 2024 and gain on disposal of non-current assets.
Pg 31
Acumentis Annual Report 2024
Directors’ and senior executive officers’ remuneration
Details of the nature and amount of each major element of the remuneration of each member of key management personnel
are:
1.
Resigned 8 November 2022
2.
Appointed 1 December 2023
3.
Other directors and senior executive officers were employed throughout both financial years
4.
Includes the effect of lapse of FY21 tranche of rights due to the performance condition not being met
5.
Includes the effect of lapse of FY22 tranche of rights due to the performance condition not being met
6.
Non-executive director remuneration includes fees paid for chairing board committees
Short term
Post-employment
Long term
Total $
Performance
Related %
Share
Based
%
Name
Year
Salary
& Fees
$
STI
(b)
$
Super-
annuation
benefits
$
Termination
benefits
$
Movement
in long
term
benefits
$
Share
based
payments
$
Non-executive directors
K Perrett
2024
124,998
-
-
-
-
-
124,998
-
-
2023
120,000
-
-
-
-
-
120,000
-
-
A Staines
2024
65,844
-
7,243
-
-
-
73,087
-
-
2023
58,823
-
6,177
-
-
-
65,000
-
-
J Mikleus2
2024
42,220
-
4,644
-
-
-
46,864
-
-
2023
-
-
-
-
-
-
-
-
-
P Sherrie1
2024
-
-
-
-
-
-
-
-
-
2023
20,814
-
2,186
-
-
-
23,000
-
-
L Wozniczka
2024
71,000
-
-
-
-
-
71,000
-
-
2023
65,000
-
-
-
-
-
65,000
-
-
Executive directors
T Rabbitt
2024
427,861
16,216
27,399
-
(12,560)
126,2925
585,208
3%
22%
2023
378,361
34,792
25,292
-
(8,793)
(13,659)4
415,993
8%
-3%
Other key management personnel
J Wise
2024
243,802
18,018
26,687
-
16,438
62,8865
367,831
5%
17%
2023
252,904
22,986
25,711
-
3,410
15,716
320,727
7%
5%
Pg 32
Acumentis Annual Report 2024
Notes in relation to the table of directors’ and executive officers’ remuneration
(a)
Analysis of options & performance rights included in remuneration
Option & Performance Rights – Share Based Payments
The directors at their discretion allocate share options or performance rights that entitle key management personnel
and senior employees to be issued shares in the Company. The terms of any options and performance rights including
vesting conditions and performance criteria vary depending upon the incentive arrangements appropriate for key
management personnel and senior employees and are a part of an approved Employee Share Acquisition Scheme,
which was initially approved by shareholders at the 2018 Annual General Meeting and renewed for a further 3 years
at the 2021 Annual General Meeting.
Options
There were no options held by key management personnel outstanding at the date of this report (2023: none).
Performance Rights
Performance rights may be granted under the Acumentis Group Performance Rights and Option Plan which was
first approved by shareholders at the 2018 Annual General Meetings and the approval was renewed for a further 3
years at the 2021 Annual General Meeting. The Plan allows the Company to grant options or rights to selected senior
executives to acquire ordinary shares in the Company. Participants are required to satisfy performance and service
conditions at the time of the offer. The exercise price for performance rights is nil. Rights cannot be transferred and
are not quoted on the ASX.
Performance rights on issue are as follows:
Further information on performance rights can be found at note 19(a) to the financial statements.
Tranche
Date
Transaction
Chief
Executive
Officer
Chief
Financial
Officer
Other
employees
Total
FY21
15 Oct 20
Grant
1,000,000
-
-
1,000,000
30 Jun 23
Lapse (market & performance conditions not met)
(1,000,000)
-
-
(1,000,000)
-
-
-
-
FY22
20 Sep 21
Grant
-
240,000
1,200,000
1,440,000
28 Oct 21
Grant
240,000
-
-
240,000
8 Apr 22
Forfeit (service condition not met)
-
-
(144,000)
(144,000)
10 Jun 22
Forfeit (service condition not met)
-
-
(120,000)
(120,000)
19 May 23
Forfeit (service condition not met)
-
-
(240,000)
(240,000)
30 Jun 24
Lapse (market & performance conditions not met)
(240,000)
(240,000)
(696,000)
(1,176,000)
-
-
-
-
FY23
25 Oct 22
Grant
405,000
300,000
435,000
1,140,000
405,000
300,000
435,000
1,140,000
FY24
25 Oct 23
Grant
6,000,000
3,000,000
-
9,000,000
Total
6,405,000
3,300,000
435,000
10,140,000
Pg 33
Acumentis Annual Report 2024
Details of performance right valuations and vesting conditions are as follows:
The Board has the discretion to adjust the number of rights that ultimately vest and/or the service condition period
if it forms the view that the unadjusted outcome is not appropriate to the circumstances that prevailed over the
measurement period.
The Board has discretion to determine that some or all unvested rights held lapse on a specified date if allowing
the rights to vest would, in the opinion of the Board, result in an inappropriate benefit to the rights holder. Such
circumstances would include joining a competitor or actions that harm the Consolidated Entities’ stakeholders.
In the case of fraud or misconduct, all unvested rights will be forfeited.
Grant date
15 Oct 20
20 Sep 21 &
28 Oct 21
25 Oct 22
25 Oct 23
25 Oct 23
25 Oct 23
Number of rights
Originally issued
1,000,000
1,680,000
1,140,000
1,500,000
1,500,000
6,000,000
Forfeited
-
(504,000)
-
-
-
-
Lapsed
(1,000,000)
(1,176,000)
Vested & exercised
-
-
-
-
-
-
On issue
-
-
1,140,000
1,500,000
1,500,000
6,000,000
Unvested
-
-
1,140,000
1,500,000
1,500,000
6,000,000
Vested but not exercised
-
-
-
-
-
-
-
-
1,140,000
1,500,000
1,500,000
6,000,000
Weighted average fair value
at grant date (cents)
11.83
13.25
6.92
6.05
5.76
5.48
Service Condition
The executive must remain
employed from grant date
until the finalisation of
the statutory audit for the
financial year ended
If the service condition
is not met none of the
performance rights will vest.
30 Jun 23
30 Jun 24
30 Jun 25
30 Jun 24
30 Jun 25
30 Jun 26
Market Condition
Applicable to (% of rights)
The performance rights will
vest if the total shareholder
return (“TSR”) for Acumentis
is at least equal to the TSR
for the ASX300 for the period
50%
1 Jul 20 –
30 Jun 23
50%
1 Jul 21 –
30 Jun 24
50%
1 Jul 22 –
30 Jun 25
N/A
N/A
N/A
Performance Condition
Applicable to (% of rights)
The performance rights will
vest pro-rata based on
the earnings per share of
Acumentis Group Limited being
between
50%
2.4 & 3.2
cents for
FY23
50%
2.5 & 3.4
cents for
FY24
50%
2.6 & 3.5
cents for
FY25
N/A
N/A
100%
1.0 & 2.0
cents for
FY26
Pg 34
Acumentis Annual Report 2024
Vesting and exercise of performance rights issued during prior years
No performance rights vested during the year ended 30 June 2024 (2023: none).
(b)
Analysis of short term incentives included in remuneration
Short-term incentive cash payments were awarded to the CEO Timothy Rabbitt and CFO John Wise.
The performance-based component for the CEO is a cash payment based on both financial and non-financial KPI’s
and qualitative assessment of performance.
The performance-based component for the CFO is a cash payment based on non-financial KPI’s and qualitative
assessment of performance.
Contracted Commitment
Timothy Rabbitt (CEO) and John Wise (CFO) are employed by the Company under ongoing employment contracts.
The notice periods and termination payments provided for under these contracts are as follows:
The termination payments are not provided for in the financial statements.
Director / Key
Management Personnel
Vesting date
Cash STI
Paid / Payable
Cash STI
Forfeited
Financial Year the cash
STI was paid / is payable
Timothy Rabbitt
30 June 2024
68%
32%
2025
John Wise
30 June 2024
50%
50%
2025
Director / Key Management Personnel
Notice Period
Months
Termination Payment
$
Timothy Rabbitt
6
212,500
John Wise
3
62,500
Pg 35
Acumentis Annual Report 2024
Beneficial interest of directors and key management personnel in shares & options
Movement in shareholdings
The movement during the reporting period in the number of ordinary shares in the Company held directly, indirectly,
or beneficially by each director or key management person including their personally related entities is as follows:
The executive officers named are those who are directly accountable and responsible for the strategic direction and
operational management of the Consolidated Entity. The directors are of the opinion that only the executive officers
detailed above meet the definition of key management personnel as set out in AASB 124 Related Party Disclosures.
Transactions with Director-Related Entities
The Consolidated Entity did not enter into any transactions with any director-related entities, except for payment of
non-executive directors’ fees to some directors, in either of the years ended 30 June 2023 or 30 June 2024.
END OF REMUNERATION REPORT
2024
Held at
1 July 2024
Purchases
Sales
Appointment /
(Retirement)
from Board
Held at
30 June 2024
Non-Executive Directors
Keith Perrett
1,241,434
-
-
-
1,241,434
Andrea Staines
-
-
-
-
-
Jo Mikleus
-
-
-
-
-
Les Wozniczka
25,953,613
-
-
-
25,953,613
Executive Directors
Timothy Rabbitt
1,872,091
-
-
-
1,872,091
Key Management Personnel
John Wise
466,740
14,689
-
-
481,429
2023
Held at
1 July 2022
Purchases
Sales
Appointment /
(Retirement)
from Board
Held at
30 June 2023
Non-Executive Directors
Keith Perrett
418,577
822,857
-
-
1,241,434
Andrea Staines
-
-
-
-
-
Patrice Sherrie
-
-
-
-
-
Les Wozniczka
19,810,755
6,142,858
-
-
25,953,613
Executive Directors
Timothy Rabbitt
1,477,479
394,612
-
-
1,872,091
Key Management Personnel
John Wise
265,884
200,856
-
-
466,740
Pg 36
Acumentis Annual Report 2024
Proceedings on behalf of the consolidated entity
During the financial year and in the interval between the end of the financial year and the date of this report the
Consolidated Entity has made no application for leave under Section 237 of the Corporations Act 2001.
No person has applied for leave of court to bring proceedings on behalf of the Consolidated Entity or intervene in
any proceeding to which the Consolidated Entity is a party for the purpose of taking responsibility on behalf of the
Consolidated Entity for all or any part of these proceedings. The Consolidated Entity was not a party to any such
proceedings during the year.
Directors’ Interests
The relevant interest of each director in the shares issued by the Company as notified by the Directors to the Australian
Securities Exchange in accordance with S205G(1) of the Corporations Act 2001, at the date of this report is as follows:
Share Options
Shares under option
There were no unissued ordinary shares of Acumentis Group Limited under option at the date of the report (2023:
2,500,000). Refer to note 7 for further details.
Shares issued on exercise of options
There were no options exercised during the year (2023: Nil).
Indemnification and Insurance of Officers and Auditors
Officers
The Company has agreed to indemnify all current Directors of Acumentis Group Limited to the maximum extent
permitted by law against any liability incurred by them by virtue of their holding office as an officer of the Consolidated
Entity other than:
•
a liability owed to the Consolidated Entity or a related body corporate of the Company;
•
a liability for a pecuniary penalty order under section 1317G of the Law or a compensation order under section
1317H of the Law; or
•
a liability owed to a person other than the Consolidated Entity that did not arise out of conduct in good faith.
Since the end of the previous financial year, the Consolidated Entity has paid premiums in respect of Directors
and Officers liability insurance, for all past, present, or future directors, secretaries, officers or employees of the
Consolidated Entity. Conditions of the Insurance policy restrict disclosure of the premium amount.
Ordinary Shares
Keith Perrett
1,241,434
Andrea Staines
-
Jo Mikleus
-
Timothy Rabbitt
1,872,091
Les Wozniczka
25,953,613
Pg 37
Acumentis Annual Report 2024
The insurance premiums relate to:
•
costs and expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and
whatever their outcome
•
other liabilities that may arise from their position, with the exception of conduct involving a wilful breach of duty
or improper use of information or position to gain a personal advantage.
Further details of insurance policies have not been disclosed as the policies prohibit such disclosure.
Auditors
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of
the Company or any related entity against a third-party liability incurred by the auditor.
During the year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or
any related entity.
Rounding of Amounts
The Consolidated Entity has applied the relief available under ASIC Instrument 2016/191 and accordingly, amounts
in the financial statements and directors’ report have been rounded to the nearest thousand dollars, or in certain
cases, to the nearest dollar.
Auditors Independence Declaration under Section 307C of the Corporations Act 2001
The auditor’s independence declaration is set out on page 41 and forms part of the Directors’ Report for the financial
year ended 30 June 2024.
Non-audit Services
During the year, William Buck, the Company’s auditor, has performed certain other services in addition to their
statutory duties.
The board has considered the non-audit services provided during the year by the auditor and in accordance with
written advice provided by resolution of the Audit & 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 2001 for the following reasons:
•
all non-audit services were subject to the corporate governance procedures adopted by the Consolidated Entity
and have been reviewed by the Audit & Risk Committee to ensure that they do not impact the integrity and
objectivity of the auditors; 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 (including Independence Standards), as they did
not involve reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity
for the Consolidated Entity, acting as an advocate for the Consolidated Entity or jointly sharing risks and rewards.
Pg 38
Acumentis Annual Report 2024
Details of the amounts paid to the auditors of the Consolidated Entity, William Buck, and its related practices for audit
and non-audit services provided during the year are set out below:
This report is made in accordance with a resolution of the directors.
Keith Perrett
Director
Dated at Sydney this 30th day of August 2024
2024
2023
Statutory and other audit services
Full year audit
160,000
174,000
Half year review
60,000
60,000
220,000
234,000
Service other than statutory audit
Preparation & lodgement of taxation returns
9,690
9,790
9,690
9,790
Pg 39
Acumentis Annual Report 2024
AUDITOR’S INDEPENDENCE DECLARATION
Level 29, 66 Goulburn Street, Sydney NSW 2000
Level 7, 3 Horwood Place, Parramatta NSW 2150
+61 2 8263 4000
nsw.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Lead Auditor’s Independence Declaration under Section 307C of
the Corporations Act 2001
To the directors of Acumentis Group Limited
As lead auditor for the audit of Acumentis Group Limited for the year ended 30 June 2024, I declare that, to
the best of my knowledge and belief, there have been:
— 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.
This declaration is in respect of Acumentis Group Limited and the entities it controlled during the year.
William Buck
Accountants and Advisors
ABN 16 021 300 521
Domenic Molluso
Partner
Sydney, 30 August 2024
Pg 40
Acumentis Annual Report 2024
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2024
Notes
2024
$000
2023
$000
Revenue from rendering of services
1
56,203
53,519
Other income
3(a)
979
181
57,182
53,700
Expenses from operating activities:
Employee expenses
41,173
39,022
IT infrastructure & software expenses
2,589
2,657
Marketing expenses
1,005
824
Insurance expenses
2,145
2,490
Administration expenses
970
1,021
Occupancy expenses
581
699
Depreciation and amortisation expenses
2,790
2,287
Travel expenses
1,475
1,306
Searches, plans & maps
768
768
Other expenses from operating activities
1,835
1,546
55,331
52,620
Results from operating activities
1,851
1,080
Finance income
3(b)
65
35
Finance expense
3(b)
(271)
(388)
(206)
(353)
Profit before tax
1,645
727
Income tax (expense) / benefit
4
(220)
(298)
Profit for the year attributable to owners of the parent
1,425
429
Total comprehensive profit for the year attributable to owners of the
parent
1,425
429
Basic earnings per share
21(a)
0.65 cents
0.23 cents
Diluted earnings per share
21(b)
0.62 cents
0.22 cents
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
Pg 41
Acumentis Annual Report 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024
Assets
Notes
2024
$000
2023
$000
Cash and cash equivalents
5(a)
4,140
1,697
Term deposits
5(b)
261
1
Trade and other receivables
5(c)
5,702
5,916
Other financial assets
5(d)
105
371
Other current assets
6(f)
1,203
1,064
Total current assets
11,411
9,049
Other financial assets
5(d)
175
284
Term deposits
5(b)
679
913
Deferred tax assets
6(e)
2,325
2,545
Plant and equipment
6(a)
609
737
Right of use assets
6(b)
1,644
2,505
Intangible assets
6(c)
21,629
22,140
Total non-current assets
27,061
29,124
Total assets
38,472
38,173
Liabilities
Trade and other payables
5(e)
4,140
3,834
Borrowings
5(f)
8
8
Lease liabilities
5(g)
1,179
1,765
Current tax liabilities
6(d)
-
-
Deferred consideration
5(h)
176
143
Employee benefits
6(g)
5,260
4,897
Total current liabilities
10,763
10,647
Trade and other payables
5(e)
100
-
Borrowings
5(f)
31
39
Lease liabilities
5(g)
760
1,566
Deferred consideration
5(h)
111
1,263
Employee benefits
6(g)
475
446
Provisions
6(h)
418
142
Total non-current liabilities
1,895
3,456
Total liabilities
12,658
14,103
Net assets
25,814
24,070
Equity
Issued capital
7
22,342
22,208
Retained earnings
3,122
1,697
Other reserves
8
350
165
Total equity
25,814
24,070
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Pg 42
Acumentis Annual Report 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Notes
Share Capital
$000
Retained
Earnings /
(Accumulat-
ed Deficit)
$000
Other
Reserves
$000
Total
Equity
$000
Balance at 1 July 2022
19,433
1,268
127
20,828
Total comprehensive profit attributable to
members of the parent entity
-
429
-
429
Transactions with owners in their capacity as
owners:
Shares issued
7(a)
2,775
-
-
2,775
Share based payments expense
8
-
-
38
38
Balance at 30 June 2023
22,208
1,697
165
24,070
Balance at 1 July 2023
22,208
1,697
165
24,070
Total comprehensive profit attributable to
members of the parent entity
-
1,425
-
1,425
Transactions with owners in their capacity as
owners:
Shares issued
7(a)
134
-
-
134
Share based payments expense
8
-
-
185
185
Balance at 30 June 2024
22,342
3,122
350
25,814
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Pg 43
Acumentis Annual Report 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
Cash flows from operating activities
Notes
2024
$000
2023
$000
Cash receipts in the course of operations
62,168
59,591
Lease receipts
370
350
Cash payments in the course of operations
(57,474)
(56,228)
Finance income received
3(b)
65
32
Finance expense paid
3(b)
(271)
(388)
Income tax paid
-
(36)
Net cash provided by operating activities
9(a)
4,858
3,321
Cash flows from investing activities
Payments for plant and equipment
6(a)
(209)
(331)
Payments for intangible assets
6(c)
(81)
(450)
Purchase of investments
- Acquisition of incorporated entities
13(a)
(94)
-
- Deferred consideration paid
5(h)
(143)
(406)
Decrease / (increase) in security deposits invested
(26)
15
Loan repayments received
5
-
Net cash used in investing activities
(548)
(1,172)
Cash flows from financing activities
Shares issued (net of costs)
7(a)
-
2,775
Repayment of borrowings
5(f)
(8)
(2,309)
Repayment of lease liabilities
(1,859)
(1,774)
Dividends paid
-
-
Net cash used in financing activities
(1,867)
(1,308)
Net increase in cash and cash equivalents held
2,443
841
Cash and cash equivalents at beginning of the year
1,697
856
Cash and cash equivalents at the end of the year
5(a)
4,140
1,697
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Notes to the
consolidated financial
statements
ASX:ACU FY23-24
Pg 44
Acumentis Annual Report 2024
Pg 45
Acumentis Annual Report 2024
TABLE OF CONTENTS
How the numbers are calculated ............................................................................................................................ 46
1 Revenue .......................................................................................................................................................... 46
2 Material profit or loss items ............................................................................................................................ 47
3 Other income and expense items .................................................................................................................. 47
4 Income tax expense ....................................................................................................................................... 48
5 Financial assets and financial liabilities ......................................................................................................... 49
6 Non-financial assets and liabilities ................................................................................................................ 55
7 Equity .............................................................................................................................................................. 67
8 Other Reserves ............................................................................................................................................... 68
9 Cash flow information ..................................................................................................................................... 68
Risk .......................................................................................................................................................................... 70
10 Significant estimates and judgements ......................................................................................................... 71
11 Financial risk management .......................................................................................................................... 71
12 Capital management .................................................................................................................................... 76
Group structure ....................................................................................................................................................... 80
13 Business combinations - Acquisitions ......................................................................................................... 81
14 Interests in other entities ............................................................................................................................. 83
Unrecognised items ................................................................................................................................................. 84
15 Contingent liabilities ..................................................................................................................................... 85
16 Commitments ............................................................................................................................................... 85
17 Events occurring after the reporting period ................................................................................................. 86
Other disclosures ..................................................................................................................................................... 88
18 Related party transactions ........................................................................................................................... 89
19 Share-based payments ................................................................................................................................ 90
20 Remuneration of auditors ............................................................................................................................. 93
21 Earnings per share ........................................................................................................................................ 94
22 Parent entity financial information .............................................................................................................. 95
23 Going concern ............................................................................................................................................... 95
24 Summary of significant accounting policies ................................................................................................ 96
Pg 46
Acumentis Annual Report 2024
HOW THE NUMBERS ARE CALCULATED
This section provides additional information about those individual line items in the financial statements that the
directors consider most relevant in the context of the operations of the entity, including:
a)
Accounting policies that are relevant for an understanding of the items recognised in the financial statements.
These cover situations where the accounting standards either allow a choice or do not deal with a particular type
of transaction;
b)
Analysis and sub-totals, including segment information; and
c)
Information about estimates and judgements made in relation to particular items.
1
Revenue
(a)
Revenue from rendering of services
Revenue from the rendering of services to clients is recognised when the individual performance obligation under the
applicable contract is satisfied and at the price agreed in the contract. For the large majority of contracts, there is a
single performance obligation at the completion of the service and revenue is recognised at this point.
(b)
Recovery of disbursements
Where the contract with the client allows the recovery of disbursements incurred in delivering the services, these are
billed to the client at the time the performance obligation in the contract is satisfied or in accordance with an agreed
billing schedule as appropriate.
(c)
Recharge of shared services to licensees
Revenue relating to the provision of shared services to licensees is billed and recognised on a monthly basis over the
term of the agreement relating to the provision of such services.
2024
$000
2023
$000
Revenue from rendering of services
56,164
53,423
Recovery of disbursements
18
75
Recharge of shared services to licensees
21
21
56,203
53,519
Pg 47
Acumentis Annual Report 2024
2
Material profit or loss items
The Consolidated Entity has identified a number of items which are material due to the significance of their nature
and/or amount. These are listed separately here to provide a better understanding of the financial performance of the
Consolidated Entity.
3
Other income and expense items
This note provides a breakdown of the items included in ‘other income’ and ‘finance income and expenses’. Information
about specific profit and loss items (such as gains and losses in relation to the sale of plant & equipment) is disclosed
in the related statement of financial position notes.
(a)
Other income
Licence fee income represents fees charged to non-controlled entities which had been licenced to use the Acumentis
brand and systems. Licence fees are charged as a percentage of revenue earned by the licensee. The negative income
in 2024 is due to the write back of over-accrued income of $197,000 from earlier years.
Income
Notes
2024
$000
2023
$000
Fair value adjustment on early settlement of deferred, contingent
consideration
5(h)(i)
995
-
Expenses
Impairment of intangible assets – computer software
6(v)
273
-
Settlement of cyber insurance aggregation claim
15
300
-
Costs incurred and provision for settlement of legal claim within
insurance excess
180
-
Notes
2024
$000
2023
$000
Fair value adjustment on early settlement of deferred, contingent
consideration
5(h)(i)
995
-
Licence fee income
(32)
159
Sundry income
16
22
979
181
Pg 48
Acumentis Annual Report 2024
(b)
Finance income and expense
Finance income comprises interest income on funds invested. Interest income is recognised using the effective
interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument. Interest income is
recognised as it accrues in the Statement of Profit & Loss and Other Comprehensive Income.
Finance expenses comprise interest expense on borrowings, leases and unwinding of the discount on financial assets.
All borrowing costs are recognised in the Statement of Profit & Loss and Other Comprehensive Income using the
effective interest method.
4
Income tax expense
This note provides an analysis of the Consolidated Entity’s income tax expense, shows what amounts are recognised
directly in equity and how the tax expense is affected by non-assessable and non-deductible items. It also explains
significant estimates made in relation to the Consolidated Entity’s tax position.
(a)
Income tax expense
Finance income
2024
$000
2023
$000
- Employee loans - $nil capitalised (2023 $3K)
13
11
- Lease income from sublease
18
22
- Term deposits
16
2
- Bank accounts
18
-
65
35
Finance expenses
- Borrowings
(31)
(100)
- Leases
(140)
(177)
- Overdrafts
-
(49)
- Insurance premium finance
(100)
(62)
(271)
(388)
Current tax
2024
$000
2023
$000
Current year tax payable
244
105
Utilisation of brought forward tax losses
(244)
(105)
Adjustments for prior years
-
8
Total current tax expense
-
8
Deferred income tax
Decrease in deferred taxes (note 6(e))
220
290
Total deferred tax expense
220
290
Income tax expense
220
298
Pg 49
Acumentis Annual Report 2024
(b)
Reconciliation of income tax expense to prima facie tax payable
5
Financial assets and financial liabilities
This note provides information about the Consolidated Entity’s financial instruments, including:
•
An overview of all financial instruments held by the Consolidated Entity;
•
Specific information about each type of financial instrument;
•
Accounting policies; and
•
Information about determining the fair value of the instruments, including judgements and estimation uncertainty
involved.
The Consolidated Entity holds the following financial instruments:
2024
$000
2023
$000
Profit from continuing operations before tax
1,645
727
Prima facie income tax payable calculated at 30% on profit
494
218
Increase / (decrease) in income tax expense due to:
- Non-deductible entertainment expenses
25
21
- Effect of fair value adjustment on early settlement of deferred,
contingent consideration
(299)
-
220
239
Adjustments for prior years
-
59
Income tax expense
220
298
Financial assets at amortised cost
Note
2024
$000
2023
$000
Cash and cash equivalents
5(a)
4,140
1,697
Term deposits
5(b)
940
914
Trade and other receivables
5(c)
5,702
5,916
Other financial assets
5(d)
280
655
11,062
9,182
Financial liabilities at amortised cost
Trade and other payables
5(e)
4,240
3,834
Borrowings
5(f)
39
47
Lease liabilities
5(g)
1,939
3,331
Deferred fixed consideration
5(h)
134
143
6,352
7,355
Financial liabilities at fair value
Deferred contingent consideration
5(h)
153
1,263
Pg 50
Acumentis Annual Report 2024
(a)
Cash and cash equivalents
The receivables finance facility is able to be drawn down without notice and funds are immediately available. Receipts
from trade receivables are banked into a specific bank account which is swept each day to credit the receivables
finance account. As a result, the receivables finance account balance often fluctuates between being positive to being
negative.
The receivables finance account forms an integral part of the Consolidated Entity’s cash management and is operated
as though it was a bank account with an overdraft facility.
The receivables finance facility account is therefore included in cash and cash equivalents in accordance with the
requirements and definitions in Australian Accounting Standard AASB107 Cash Flow Statements.
Access was available at the reporting date to the following lines of credit:
The receivables finance facility may be drawn at any time, may be terminated by the bank without notice and is
secured via floating charges over the trade receivables of the Consolidated Entity together with fixed and floating
charges of the other assets and business of the Consolidated Entity.
The facility carries interest at the 30-day bank bill rate plus a margin of 2.1%. The current rate is 7.95%. A line fee of
1% is also charged.
The facility is subject to annual review with the next review in October 2024.
(b)
Term deposits
Current
2024
$000
2023
$000
Term Deposits
261
1
Non-current
Term Deposits
679
913
Available
2024
$000
2023
$000
Receivables finance facility
3,000
3,000
Unused at reporting date
Receivables finance facility
3,000
3,000
2024
$000
2023
$000
Cash at bank and on hand
3,945
1,275
Receivables finance facility
195
422
Cash and cash equivalents in the Statement of Cash Flows
4,140
1,697
Pg 51
Acumentis Annual Report 2024
Term deposits are held to provide security for bank guarantees, which are required for property leases and a customer
contract. Property leases are typically for fixed periods of up to 7 years but may include extension options. Term deposits
have maturities ranging from 1 to 12 months, however will be rolled over for as long as bank guarantees are required to
be kept.
(c)
Trade and other receivables
(i)
Classification as trade and other receivables
Trade receivables are amounts due from customers for services performed in the ordinary course of business.
Other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. If collection of the amounts is expected in one year or less they are classified as current
assets. If not, they are presented as non-current assets. Trade receivables are generally due for settlement
within 30 days and therefore are all classified as current. The Consolidated Entity’s impairment policy for trade
and other receivables is outlined in note 11(a).
(ii)
Fair values of trade and other receivables
Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as
their fair value.
(iii)
Impairment and risk exposure
Information about the impairment of trade and other receivables, their credit quality and the Consolidated
Entity’s exposure to credit risk, foreign currency risk and interest rate risk can be found in note 11(a).
Current
2024
$000
2023
$000
Trade receivables
5,738
5,931
Less: provision for expected credit losses
(82)
(152)
Other receivables
46
137
5,702
5,916
Pg 52
Acumentis Annual Report 2024
(d)
Other financial assets
(e)
Trade and other payables
Trade payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade and
other payables are considered to be the same as their fair values, due to their short-term nature.
(f)
Borrowings
Current
2024
$000
2023
$000
Motor vehicle loan
8
8
Non-Current
Motor vehicle loan
31
39
Current
2024
$000
2023
$000
Lease receivable – right of use assets
95
371
Employee loans (note 18(d))
10
-
105
371
Non-current
Lease receivable – right of use assets
-
95
Employee loans (note 18(d))
175
189
175
284
Current
2024
$000
2023
$000
Trade payables
739
705
Other payables and accrued expenses
3,401
3,129
4,140
3,834
Non-current
Other payables and accrued expenses
100
-
Pg 53
Acumentis Annual Report 2024
Movement in motor vehicle and bank loans
Secured liabilities
The motor vehicle loan carries fixed interest at 3.49% and has total repayments of $836 per month. The motor vehicle
loan is secured by fixed charge over the related motor vehicle. The loan is not subject to review.
The bank loan carried a floating interest rate of BBSY + 2.6% plus a 1% facility fee and had capital repayments of
$75,000 per month. The bank loan was secured by fixed and floating charges over the assets and business of the
Consolidated Entity. The loan was repaid in March 2023 and replaced with a receivables finance facility (note 5(a)).
(g)
Lease liabilities
Secured liabilities
Lease liabilities are effectively secured as the interests in the right of use assets recognised in the financial statements
revert to the lessor in the event of default.
Motor vehicle
loan
$000
Bank bills and
loans
$000
Total
$000
Balance as at 1 July 2022
56
2,300
2,356
Acquisition of controlled entity
-
-
-
Repayments
(9)
(2,300)
(2,309)
Balance as at 30 June 2023
47
-
47
Balance as at 1 July 2023
47
-
47
Advances
-
-
-
Repayments
(8)
-
(8)
Balance as at 30 June 2024
39
-
39
Current
2024
$000
2023
$000
Lease liabilities – right of use assets
1,179
1,765
Non-Current
Lease liabilities – right of use assets
760
1,566
Total
1,939
3,331
Payable as follows
Within one year
1,244
1,878
One year or later and no later than five years
799
1,636
Later than five years
-
-
2,043
3,514
Future finance charges
(104)
(183)
Recognised as a liability
1,939
3,331
Pg 54
Acumentis Annual Report 2024
(h)
Deferred consideration
Deferred consideration relates to the acquisition of Acumentis (WA) Holdings Pty Ltd (“ACU WA”) on 1 July 2021, the
acquisition Acumentis (SA) Pty Ltd (“ACU SA”) on 1 February 2022 and the acquisition of the business and assets of
Gill Wright & Associates Business Valuations (“GWA”) on 1 February 2024.
(i)
Contingent consideration
Contingent consideration of $797,000 was recognised for the acquisition of ACU WA, $466,000 for the acquisition of
ACU SA and $153,000 for the acquisition of GWA.
In May 2024, Acumentis reached agreement with the vendors of ACU WA and ACU SA to settle the deferred, contingent
consideration early at reduced amounts of $240,000 for ACU WA and $27,778 for ACU SA. 50% of these amounts
were settled via the issue of Acumentis ordinary shares on 21 May 2024 with the balance paid in cash on 19 July
2024. The early settlement resulted in a fair value adjustment recognised within other income of $557,000 for ACU
WA and $438,000 for ACU SA.
The fair value of the contingent consideration for GWA is based upon estimates of revenues generated by the acquired
business for the period to January 2027. These estimates are based on pre-acquisition trading and managements’
assessments of growth to be achieved when the business is integrated into the wider Acumentis group.
Contingent consideration has not been discounted to its present value as the effect is not material.
Current
2024
$000
2023
$000
Fixed consideration
ACU SA paid 10 Aug 2023
-
143
Early settlement of deferred consideration
ACU WA payable 19 July 2024
120
-
ACU SA payable 19 July 2024
14
-
Contingent consideration
GWA payable March 2025
42
-
176
143
Non-Current
Contingent consideration
ACU WA originally payable August 2025
-
797
ACU SA originally payable August 2025
-
466
GWA payable March 2026
51
-
GWA payable March 2027
60
-
111
1,263
Total
287
1,406
Pg 55
Acumentis Annual Report 2024
Movement in deferred contingent consideration
The deferred contingent consideration liability represents the fair value of amounts which may become payable in
March 2025, 2026 & 2027 in connection with the acquisition of GWA. The amount payable is dependent on the
acquired businesses performance over the three years ending 31 January 2027.
The deferred consideration was measured as at 30 June 2024 and no adjustment was required to be recorded for the
year ended 30 June 2024.
6
Non-financial assets and liabilities
This note provides information about the Consolidated Entity’s non-financial assets and liabilities, including:
•
Specific information about each type of non-financial asset and non-financial liability:
•
Accounting policies; and
•
Information about determining the fair value of the assets and liabilities, including judgements and estimation
uncertainty involved.
2024
$000
2023
$000
Balance at 1 July
1,263
1,263
Acquisition of GWA
153
-
Settled early
• ACU WA
(240)
-
• ACU SA
(28)
-
Fair value adjustment recognised in other income
• ACU WA
(557)
-
• ACU SA
(438)
-
Balance at 30 June
153
1,263
- Plant and equipment (note 6(a))
- Right of use assets (note 6(b))
- Intangible assets (note 6(c))
- Current tax liabilities (note 6(d))
- Deferred tax balances (note 6(e))
- Other current assets (note 6(f))
- Employee benefit obligations (note 6(g))
- Provisions (note 6(h))
Pg 56
Acumentis Annual Report 2024
(a)
Plant & equipment
(i)
Recognition and measurement
Items of plant and equipment are stated at cost less accumulated depreciation (see below) and impairment
losses.
When parts of an item of plant and equipment have different useful lives, they are accounted for as separate
items (major components) of plant and equipment.
Gains and losses on disposal of an item of plant and equipment are determined by comparing the proceeds
from disposal with the carrying amount of plant and equipment and are recognised net within “other income”
in the Statement of Profit & Loss and Other Comprehensive Income.
(ii)
Depreciation
Depreciation is charged to the Statement of Profit & Loss and Other Comprehensive Income on a straight-
line basis over the estimated useful lives of each part of an item of plant and equipment.
Cost
Office
Equipment
$000
Furniture and
Fittings
$000
Leasehold
Improvements
$000
Motor
Vehicles
$000
Total
$000
Balance at 1 July 2022
2,005
661
611
68
3,345
Additions
246
67
18
-
331
Disposals
(53)
(155)
(208)
-
(416)
Balance at 30 June 2023
2,198
573
421
68
3,260
Balance at 1 July 2023
2,198
573
421
68
3,260
Additions
191
18
347
-
556
Disposals
(21)
-
(40)
-
(61)
Balance at 30 June 2024
2,368
591
728
68
3,755
Accumulated Depreciation
Balance at 1 July 2022
1,399
565
431
16
2,411
Depreciation charge for the year
345
48
69
13
475
Disposals
(53)
(147)
(163)
-
(363)
Balance at 30 June 2023
1,691
466
337
29
2,523
Balance at 1 July 2023
1,691
466
337
29
2,523
Depreciation charge for the year
325
38
311
10
684
Disposals
(21)
-
(40)
-
(61)
Balance at 30 June 2024
1,995
504
608
39
3,146
Carrying Amounts
1 July 2022
606
96
180
52
934
30 June 2023
507
107
84
39
737
1 July 2023
507
107
84
39
737
30 June 2024
373
87
120
29
609
Pg 57
Acumentis Annual Report 2024
The estimated useful lives in the current and comparative periods are as follows:
•
Office equipment
2-5 years
•
Furniture and fittings
4-5 years
•
Leasehold improvements lesser of life of the lease or 10 years
•
Motor vehicles
5 years
The residual value, the useful life and the depreciation method applied to an asset are reassessed at least
annually.
(b)
Right of use assets
(i)
Amounts recognised in the consolidated statement of financial position
Cost
Buildings
$000
Office Equipment
$000
Total
$000
Balance at 1 July 2022
4,916
208
5,124
Additions
1,273
-
1,273
Disposals
(1,924)
-
(1,924)
Balance at 30 June 2023
4,265
208
4,473
Balance at 1 July 2023
4,265
208
4,473
Additions
465
-
465
Disposals
(311)
(208)
(519)
Balance at 30 June 2024
4,419
-
4,419
Accumulated Depreciation
Balance at 1 July 2022
2,566
69
2,635
Depreciation charge for the year
1,188
69
1,257
Disposals
(1,924)
-
(1,924)
Balance at 30 June 2023
1,830
138
1,968
Balance at 1 July 2023
1,830
138
1,968
Depreciation charge for the year
1,203
70
1,273
Disposals
(258)
(208)
(466)
Balance at 30 June 2024
2,775
-
2,775
Carrying Amounts
1 July 2022
2,350
139
2,489
30 June 2023
2,435
70
2,505
1 July 2023
2,435
70
2,505
30 June 2024
1,644
-
1,644
Lease liabilities
2024
$000
2023
$000
Current
1,179
1,765
Non-current
760
1,566
1,939
3,331
Pg 58
Acumentis Annual Report 2024
(ii) Amounts recognised in the statement of profit or loss
The statement of profit or loss shows the following amounts relating to leases:
The total cash outflow for leases in 2024 was $1,859,000 (2023: $1,774,000).
Depreciation is charged to the Statement of Profit & Loss and Other Comprehensive Income on a straight-
line basis over the shorter of the lease term and their useful lives, unless it is reasonably certain that the
Consolidated Entity will obtain ownership by the end of the lease term.
The estimated useful lives in the current and comparative periods for right of use assets is the life of the
underlying lease.
(iii)
The Consolidated Entities leasing activities and how these are accounted for
The Consolidated Entity leases offices, equipment and software. Contracts are typically for fixed periods of
up to 7 years but may include extension options.
Contracts may contain both lease and non-lease components. The Consolidated Entity allocates the
consideration in the contract to the lease and non-lease components based on their relative stand-alone
prices, however for leases of real estate for which the Consolidated Entity is the lessee, it has elected not
to separate lease and non-lease components and instead accounts for these as a single lease component.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
These agreements do not impose covenants other than the security interests in the leased assets that are
held by the lessor. Leased assets may not be used as security for borrowing purposes.
Leases are recognised as a right of use asset and a corresponding liability at the date at which the leased
asset is available for use by the Consolidated Entity.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of the following lease payments:
•
fixed payments, less incentives receivable;
•
variable payments that are based on an index or rate, initially measured using the index or rate as at
the commencement date; and
•
amounts expected to be payable under residual value guarantees.
Lease payments to be made under reasonably certain extension options are also included in the measurement
of liability.
Depreciation and impairment charge of right of use assets
2024
$000
2023
$000
Buildings
1,203
1,188
Office equipment
70
69
1,273
1,257
Interest expenses (included in finance cost)
138
177
Expenses relating to short term leases (included in occupancy
expenses)
183
210
Pg 59
Acumentis Annual Report 2024
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be
determined, the lessee’s incremental borrowing rate is used.
Lease payments are allocated between principal and finance cost with the finance cost charged to the profit
and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance
of the liability for each period.
Right of use assets are measured at cost comprising the following:
•
the amount of the initial measurement of the lease liability;
•
any lease payments made at or before the commencement date less any lease incentives received;
•
any initial direct costs; and
•
restoration costs.
Right of use assets are generally depreciated over the shorter of the asset’s useful life and the lease term
on a straight-line basis.
Payments associated with short term leases (with a term of 12 months or less) or low value assets are
recognised on a straight-line basis as an expense in the profit or loss.
(c)
Intangible assets
(i)
Goodwill
The acquisition method of accounting is used to account for all business combinations, regardless of
whether equity instruments or other assets are acquired. The consideration transferred for the acquisition
of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and the equity
interests issued by the Consolidated Entity.
Where the acquired subsidiary has significant long-term contracts or other customer relationships the
future value of these relationships is assessed and is included as an asset in the fair value, above, of assets
transferred.
Goodwill on the acquisition of subsidiaries is included in intangible assets. Goodwill is not amortised but it is
tested for impairment annually or more frequently if events or changes in circumstances indicate that it might
be impaired and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of
an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash
generating units for the purpose of impairment testing. The allocation is made to those cash generating
units or groups of cash generating units that are expected to benefit from the business combination in which
the goodwill arose.
Notes
2024
$000
2023
$000
Goodwill
(i) – (iv)
20,567
20,324
Computer software
(v)
821
1,575
Trademarks
(vi)
241
241
21,629
22,140
Pg 60
Acumentis Annual Report 2024
(ii)
Subsequent expenditure
Subsequent expenditure on capitalised intangible assets excluding goodwill is capitalised only when it
increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure
is expensed as incurred.
(iii)
Impairment tests for goodwill
Goodwill has an indefinite useful live and is not amortised. The goodwill amounts are tested for impairment
annually by estimating the recoverable amount of the cash generating units based on value in use.
The following cash generating units have significant carrying amounts for goodwill:
(iv)
Impairment review and charge
The Company tests whether goodwill has suffered any impairment on a six-monthly basis. The recoverable
amount of cash generating units is determined based on value in use calculations which require the use of
assumptions.
The calculations use cash flow projections based on financial forecasts approved by management covering
the 12 months post reporting date. Cash flows beyond the 12-month period are extrapolated using the
estimated growth rates stated below.
Goodwill
2024
$000
2023
$000
Residential valuations
3,016
3,016
Regional valuations
9,486
9,486
WA Business
6,393
6,393
SA Business
1,429
1,429
Business valuations
243
-
20,567
20,324
Movement in Goodwill
Balance at 1 July
20,324
20,324
Acquisition of unincorporated business (note 13(a))
243
-
Impairment charge
-
-
Balance at 30 June
20,567
20,324
Residential
Business
Regional
Business
WA
Business
SA
Business
Business
Valuations
30 June 2024
Annual increase in revenues
3.0%
3.0%
3.0%
5.0%
5.0%
Increase in employee expenses as a % of
increased revenues
55.0%
55.0%
55.0%
55.0%
55.0%
Annual increase in overheads
3.0%
3.0%
3.0%
3.0%
3.0%
Terminal growth rate
2.0%
2.0%
2.0%
2.0%
2.0%
Discount rate
15.6%
15.6%
15.6%
15.6%
15.6%
30 June 2023
Annual increase in revenues
3.0%
3.0%
3.0%
5.0%
n/a
Increase in employee expenses as a % of
increased revenues
55.0%
55.0%
55.0%
55.0%
n/a
Annual increase in overheads
3.0%
3.0%
3.0%
3.0%
n/a
Terminal growth rate
2.0%
2.0%
2.0%
2.0%
n/a
Discount rate
14.6%
14.6%
14.6%
14.6%
n/a
Pg 61
Acumentis Annual Report 2024
Management has determined the values assigned to each of the key assumptions as follows:
Impact of reasonably possible changes in key assumptions
WA Business
The recoverable amount of the WA business cash generating unit is estimated to exceed the carrying
amount of the cash generating unit at 30 June 2024 by $2,555,000 (30 June 23: $10,788,000).
The recoverable amount at 30 June 2024 would equal its carrying amount if the key assumptions were to
changes as follows:
Assumption
Revenues
Employee
expenses
Overheads
Terminal
growth rate
Discount rate
Approach used to determine values
Annual growth rate based on past performance, current and expected market
conditions and management’s expectations of business development opportunities
and likelihood of success.
Based on past performance and management’s expectations for the future.
Fixed and semi-variable costs of the cash generating units, which do not vary
significantly with revenue. Management forecasts these costs based on the current
structure of the business, adjusting for anticipated inflationary increases and known
restructuring and cost-saving measures.
This is conservatively set at a level below the long-term inflation rate in Australia. The
Company operates in a mature market sector and accordingly long-term growth will
be achieved via diversification in services, client base and geographies rather than
long term growth of existing business lines.
The pre-tax rate discount rate adopted is based on the risk-free interest rate and
business specific risk factors, market borrowing rates and investor expected returns.
From
To
Annual increase in revenues
3.0%
-0.5%
Annual increase in overheads
3.0%
9.1%
Discount rate
15.6%
20.8%
Pg 62
Acumentis Annual Report 2024
Business Valuations
The recoverable amount of the Business Valuations business cash generating unit is estimated to exceed
the carrying amount of the cash generating unit at 30 June 2024 by $122,000 (30 June 23: n/a).
The recoverable amount at 30 June 2024 would equal its carrying amount if the key assumptions were to
changes as follows:
Other cash generating units
Reasonably possible changes in key assumptions for other cash generating units would not result in the
recoverable amounts equalling their carrying values.
(v)
Computer software
Costs incurred in developing products or systems and costs incurred in acquiring software and licences
that will contribute to future period financial benefits through revenue generation and/or cost reduction are
capitalised to software and systems.
Costs capitalised include external direct costs of materials and service and direct payroll and payroll related
costs of employees’ time spent on the project.
IT development costs include only those costs directly attributable to the development phase and are only
recognised following completion of technical feasibility and where the Consolidated Entity has an intention
and ability to use the asset.
Amortisation is calculated on a straight-line basis over periods generally ranging from 3 to 5 years.
In 2024, the Company booked an impairment charge against previously capitalised software which is now
deemed obsolete as the company’s strategy is to move away from in-house developed software to use of
cloud-based systems and “low-code / no-code” platforms to support the business.
From
To
Annual increase in revenues
5.0%
4.0%
Increase in employee expenses as a % of increased revenues
55.0%
64.3%
Annual increase in overheads
3.0%
6.3%
Discount rate
15.6%
17.1%
Movement in computer software
2024
$000
2023
$000
Balance at 1 July
1,575
1,680
Additions
81
450
Amortisation
(558)
(555)
Impairment charge for obsolete software
(273)
-
Disposals
(4)
-
Balance at 30 June
821
1,575
Pg 63
Acumentis Annual Report 2024
(vi)
Trademarks
Trademarks have indefinite useful lives and are not amortised. Trademarks are tested for impairment
annually by estimating the recoverable amount of the cash generating units based on value in use.
(d)
Current tax liabilities
The current tax liability for the Consolidated Entity of $Nil (2023: $Nil) represents the amount of income
taxes payable in respect of current and prior financial periods. In accordance with the tax consolidation
legislation, Acumentis Group Limited as the head entity of the Australian tax-consolidated group has
assumed responsibility for the current tax asset/liability initially recognised by the members in the tax-
consolidated group.
Income tax on the Statement of Profit & Loss and Other Comprehensive Income for the year comprises
current and deferred tax. Income tax is recognised in the Statement of Profit & Loss and Other
Comprehensive Income except to the extent that it relates to items recognised directly in equity, in which
case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the end of the reporting period, and any adjustment to tax payable in respect of
previous years.
The Company and its wholly owned Australian resident entities have formed a tax-consolidated group
with effect from 1 July 2003 and are therefore taxed as a single entity from that date. Newly acquired
wholly owned entities are immediately added to the tax-consolidation group. The head entity within the
tax-consolidated group is Acumentis Group Limited.
(i)
Tax consolidation
Current tax expense/income, deferred tax liabilities and deferred tax assets arising from temporary
differences of the members of the tax-consolidated group are recognised in the separate financial
statements of the members of the tax-consolidated group using the group allocation approach by reference
to the carrying amounts of assets and liabilities in the separate financial statements of each entity and the
tax values applying under tax consolidation.
Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the
subsidiaries are assumed by the head entity in the tax-consolidated group and are recognised as amounts
payable (receivable) to (from) other entities in the tax-consolidated group in conjunction with any tax
funding arrangement amounts (refer below). Any difference between these amounts is recognised by the
Movement in trademarks
2024
$000
2023
$000
Balance at 1 July
241
241
Disposals
-
-
Balance at 30 June
241
241
Current
2024
$000
2023
$000
Tax liability
-
28
Pg 64
Acumentis Annual Report 2024
Company as an equity contribution or distribution.
The Company recognises deferred tax assets arising from unused tax losses of the tax-consolidated group
to the extent that it is probable that future taxable profits of the tax-consolidated group will be available
against which the tax losses can be utilised.
Any subsequent period adjustments to deferred tax assets arising from unused tax losses as a result of
revised assessments of the probability of recoverability are recognised by the head entity only.
(ii)
Nature of tax funding arrangements and tax sharing arrangements
The head entity, in conjunction with other members of the tax-consolidated group, has entered into a tax
funding arrangement which sets out the funding obligations of members of the tax-consolidated group in
respect of tax amounts. The tax funding arrangements require payments to/from the head entity equal to
the current tax liability (asset) assumed by the head entity and any tax-loss deferred tax asset assumed by
the head entity, resulting in the head entity recognising an inter-entity receivable (payable) equal in amount
to the tax liability (asset) assumed. Any such inter-entity receivables (payables) are at call.
Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and reflect
the timing of the head entity’s obligation to make payments for tax liabilities to the relevant tax authorities.
The head entity in conjunction with other members of the tax-consolidated group has also entered into
a tax sharing agreement. The tax sharing agreement provides for the determination of the allocation of
income tax liabilities between the entities should the head entity default on its tax payment obligations. No
amounts have been recognised in the financial statements in respect of this agreement as payment of any
such amounts under the tax sharing agreement is considered remote.
(e)
Deferred tax balances
Deferred tax assets and liabilities are attributable to the following:
Recognised deferred tax assets
2024
$000
2023
$000
Right of use assets
89
248
Employee provisions
1,335
1,309
Provision for expected credit losses
24
45
Accruals
129
151
Make good provisions
125
42
s40-880 ITAA 1936 “black hole” expenditure
42
95
Income tax losses carried forward
513
757
Finance lease assets
(29)
(140)
Plant and equipment
(9)
(12)
Other
106
50
2,325
2,545
Pg 65
Acumentis Annual Report 2024
Movement in temporary differences during the year
(f)
Other current assets
Deferred tax assets
Balance
1 July 23
$000
Recognised
in Profit &
Loss
$000
Balance
30 June 24
$000
Right of use assets
248
(159)
89
Employee provisions
1,309
26
1,335
Doubtful debts
45
(21)
24
Accruals
151
(22)
129
Make good provisions
42
83
125
S40-880 “black hole” expenditure
95
(53)
42
Income tax losses carried forward
757
(244)
513
Finance lease assets
(140)
111
(29)
Plant and equipment
(12)
3
(9)
Other
50
56
106
2,545
(220)
2,325
Deferred tax assets
Balance
1 July 22
$000
Recognised
in Profit &
Loss
$000
Balance
30 June 23
$000
Right of use assets
403
(155)
248
Employee provisions
1,354
(45)
1,309
Provision for expected credit losses
90
(45)
45
Accruals
152
(1)
151
Make good provisions
54
(12)
42
S40-880 “black hole” expenditure
143
(48)
95
Income tax losses carried forward
862
(105)
757
Finance lease assets
(245)
105
(140)
Plant and equipment
(16)
4
(12)
Other
38
12
50
2,835
(290)
2,545
2024
$000
2023
$000
Prepaid expenses
1,203
1,064
Pg 66
Acumentis Annual Report 2024
(g)
Employee benefit obligations
The current portion of this liability includes all of the accrued annual leave, the unconditional entitlements to long service leave
where employees have completed the required period of service and also for those employees who are entitled to pro-rata
payments in certain circumstances. The entire amount of the annual leave provision is presented as current, since the group does
not have an unconditional right to defer settlement for any of these obligations.
The non-current portion of the long service leave liability is measured based on the present value of expected future payments to
be made in respect of services provided by employees up to the end of the reporting period. Consideration is given to expected
future wage and salary increases and past experience of employee retention. Expected future payments are discounted using
market yields at the end of the reporting period of high-quality corporate bonds with terms and currencies that match, as closely
as possible, the estimated future cash outflows. Remeasurements as a result of experience adjustments and changes in actuarial
assumptions are recognised in profit or loss.
Based on past experience, the group does not expect all employees to take the full amount of accrued leave or require payment
within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months.
(h)
Provisions
The provision has not been discounted to its present value as the effect is not material. It is expected that the expense
will be incurred within a 5-year period.
Current
2024
$000
2023
$000
Annual leave
2,076
2,062
Long service leave
1,900
1,856
Performance pay
1,284
979
5,260
4,897
Non-Current
Long service leave
475
446
2024
$000
2023
$000
Current obligations expected to be settled after 12 months
1,687
1,621
Non-Current
2024
$000
2023
$000
Make Good
418
142
Movement in provision
Balance at 1 July
142
182
Net increase / (decrease) during year
276
(13)
Utilised during year
-
(27)
Balance at 30 June
418
142
Pg 67
Acumentis Annual Report 2024
7
Equity
(a)
Ordinary shares
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote
per share on a poll at meetings of the Company. On a show of hands, every shareholder present at a meeting or by proxy
is entitled to one vote. There are currently 219,955,046 ordinary fully paid shares on issue (2023: 218,174,605). Shares
have no par value, and the Company does not have a limited amount of capital.
On 9 February 2023, the Company issued 21,928,571 ordinary shares at 7 cents per share under a placement to
institutional, professional and sophisticated investors under ASX Listing Rule 7.1.
On 17 March 2023, the Company issued 6,642,857 ordinary shares at 7 cents per share to directors of the Company,
under a placement with the issue to directors approved at an Extraordinary General Meeting held on 10 March 2024.
On 17 March 2023, the Company issued 3,685,732 ordinary shares at 7 cents per share to existing shareholders
under a Share Purchase Plan (SPP).
On 24 March 2023, the Company issued 10,600,000 ordinary shares at 7 cents per share to institutional, professional
and sophisticated investors under a placement of the SPP Shortfall with the placement of the shortfall approved by
shareholders at an Extraordinary General Meeting held on 10 March 2024.
On 21 May 2024, the Company issued 1,780,441 ordinary shares at 7.52 cents per share to settle the deferred,
contingent consideration payable in relation to the acquisitions of Acumentis (WA) Pty Ltd and Acumentis (SA) Pty Ltd.
Share capital
Note
Number
$000
Balance at 30 June 2022
175,317,445
19,433
Capital raise
Placement of shares
21,928,571
1,535
Placement of shares to directors
6,642,857
465
Share Placement Plan (SPP)
3,685,732
258
Placement of SPP Shortfall shares
10,600,000
742
Costs of capital raise
-
(225)
Balance at 30 June 2023
218,174,605
22,208
Settlement of deferred, contingent consideration
Acumentis (WA) Pty Ltd
5(h)(i)
1,595,747
120
Acumentis (SA) Pty Ltd
5(h)(i)
184,694
14
Balance at 30 June 2024
219,955,046
22,342
Pg 68
Acumentis Annual Report 2024
(b)
Options to acquire ordinary shares
The holders of options are not entitled to receive dividends nor are they entitled to vote at meetings of the Company.
On 23 August 2019, 2,500,000 options were issued to the underwriter and lead manager of the share offer in part
consideration of the services provided. These options had an exercise price of $0.12 and an expiry date of 23 August
2023. The options were not exercised prior to the expiry date and so lapsed.
8
Other Reserves
9
Cash flow information
(a)
Reconciliation of profit after income tax to net cash inflow from operating activities
Options
2024
Number
2023
Number
Balance at 1 July
2,500,000
2,500,000
Lapsed
(2,500,000)
-
Balance at 30 June
-
2,500,000
Share-based payments
30 June
2024
$000
30 June
2023
$000
Balance at 1 July
165
127
Performance rights expense
185
38
Balance at 30 June
350
165
Notes
2024
$000
2023
$000
Profit for the period after tax
1,425
429
Adjustments for the period
Depreciation & amortisation
2,790
2,287
Loss on disposal of fixed assets
57
53
Fair value adjustment on early settlement of deferred,
contingent consideration
5(h)(i)
(995)
-
Performance rights expense
185
38
3,462
2,807
Changes in assets & liabilities during the period net of
amounts relating to acquisition of controlled entities
(Increase)/decrease in trade and other receivables
5(c)
214
371
(Increase)/decrease in other financial assets
5(d)
370
347
(Increase)/decrease in deferred tax assets
6(e)
220
290
(Increase)/decrease in other assets
6(f)
(132)
297
Increase/(decrease) in trade and other payables
5(e)
406
(328)
Increase/(decrease) in provision for income tax
6(d)
-
(28)
Increase/(decrease) in employee benefit obligations
6(g)
389
(395)
Increase/(decrease) in provisions
6(h)
(71)
(40)
Net cash from operating activities
4,858
3,321
Pg 69
Acumentis Annual Report 2024
THIS PAGE IS AN INTENTIONALLY BLANK PAGE
Pg 70
Acumentis Annual Report 2024
Pg 70
Acumentis Annual Report 2024
Risk
ASX:ACU FY23-24
Pg 71
Acumentis Annual Report 2024
RISK
This section of the notes discusses the Consolidated Entity’s exposure to various risks and shows how these could
affect the Consolidated Entity’s financial position and performance.
10
Significant estimates & judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the Consolidated Entity’s
accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items
which are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed
information about each of these estimates and judgements is included in notes 1 to 7 together with information about
the basis of calculation for each affected line item in the financial statements.
The areas involving significant estimates or judgements and which have the potential for material impact to the
financials are:
•
Deferred contingent consideration (note 5(h))
•
Intangible assets (note 6(c))
•
Employee benefits (note 6(g))
11
Financial risk management
This note explains the Consolidated Entity’s exposure to financial risks and how these risks could affect the
Consolidated Entity’s future financial performance. Current year profit and loss information has been included where
relevant to add further context.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. The Chief Executive Officer and Chief Financial Officer are responsible for developing and monitoring risk
management policies.
Risk management policies are established to identify and analyse the risks faced by the Consolidated Entity, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Consolidated Entity’s activities. The
Consolidated Entity, through their training and management standards and procedures, aim to develop a disciplined
and constructive control environment in which all employees understand their roles and obligations.
Risk
Exposure arising from
Measurement
Management
Credit risk
Cash and cash equivalents, trade
receivables and debt investments and
contract assets
Ageing analysis
Credit ratings
Diversification of
bank deposits
Credit limits
Liquidity risk
Borrowings and other liabilities
Rolling cash flow
forecasts
Availability of
borrowing facilities
Interest rate risk
Long-term borrowings at variable
rates
Sensitivity analysis
Accept risk given low
levels of debt
Pg 72
Acumentis Annual Report 2024
The Consolidated Entity’s Audit & Risk Committee oversees how management monitors compliance with the
Consolidated Entity’s risk management policies and procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Consolidated Entity.
(a)
Credit Risk
Credit risk is the risk of financial loss to the Consolidated Entity if a customer or counterparty to a financial instrument
fails to meet its contractual obligations and arises principally from the Consolidated Entity’s receivables from
wholesale and retail clients.
Trade and other receivables
The Consolidated Entity’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The demographics of the Consolidated Entity’s customer base, including the default risk of the industry
and country, in which clients operate, has less of an influence on credit risk.
The Consolidated Entity has established a credit policy under which each new customer is analysed individually for
creditworthiness before the Consolidated Entity’s standard payment and delivery terms and conditions are offered.
Credit limits are established for each customer, these limits are reviewed regularly. Clients which fail to meet the
Consolidated Entity’s benchmark creditworthiness are placed on a restricted customer list and may transact with the
Consolidated Entity only on a prepayment basis.
In monitoring customer credit risk, clients are grouped according to their credit characteristics, including whether
they are an individual or legal entity, whether they are a wholesale, retail or end-user customer, geographic location,
industry, ageing profile, maturity and existence of previous financial difficulties. The Consolidated Entity’s trade and
other receivables relate mainly to the Consolidated Entity’s retail clients. The Consolidated Entity does not require
collateral in respect of trade and other receivables.
The Consolidated Entity has established an allowance for credit losses that represents their estimate of expected
credit losses in respect of trade and other receivables.
Exposure to credit risk
The carrying amount of the Consolidated Entity’s financial assets represents the maximum credit risk exposure.
The Consolidated Entity’s maximum exposure to credit risk at the end of the reporting period was:
The Consolidated Entity’s maximum exposure to credit risk for trade and other receivables before impairment losses
at the end of the reporting period by type of customer was:
Note
2024
$000
2023
$000
Trade and other receivables
5(c)
5,702
5,916
Other financial assets
5(d)
280
655
Cash and cash equivalents
5(a)
4,140
1,697
Term deposits & other
5(b)
940
914
11,062
9,182
Pg 73
Acumentis Annual Report 2024
Impairment Losses
The aging of the Consolidated Entity’s trade and other receivables and expected loss rates at the end of the reporting
period was:
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
The Consolidated entity applies the AASB 9 simplified approach to measuring expected credit losses which uses a
lifetime expected loss allowances for all trade receivables. To measure the expected credit losses, trade receivables
have been grouped based on shared credit risk characteristics and the days past due.
The expected loss rates are based on payment profiles of sales over a 5 year period ended 30 June 2023 and the
corresponding historical credit losses experienced over this period and to 30 June 2024 (for invoices raised prior to
30 June 2023). The historical loss rates are adjusted to reflect current and forward-looking macro-economic factors
that might impact the ability of customers to settle the receivables.
2024
$000
2023
$000
Financial clients
3,821
3,657
Non-financial clients
1,355
1,710
Government non-financial clients
608
701
5,784
6,068
The Consolidated Entity’s most significant clients included the following
amounts within trade and other receivables carrying amounts:
An Australian financial client
1,025
928
An Australian non-financial client
89
146
An Australian Government non-financial client
205
239
Gross
2024
$000
Expected
Loss Rate
2024
%
Impairment
2024
$000
Gross
2023
$000
Expected
Loss Rate
2023
%
Impairment
2023
$000
Not past due
4,451
0.1%
4
5,019
0.1%
7
Past due 0-30 days
850
0.4%
3
663
0.3%
2
Past due 31-120 days
341
2.9%
10
108
1.9%
2
Past due 121 days or more
142
45.8%
65
278
50.7%
141
5,784
82
6,068
152
2024
$000
2023
$000
Balance at 1 July
152
299
(Decrease) / Increase during year
(70)
(147)
Balance at 30 June
82
152
Pg 74
Acumentis Annual Report 2024
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no
reasonable expectation of recovery include, amongst others, the failure of the debtors to engage in a repayment plan
and the failure to make contractual payments for a period of greater than 120 days past due.
Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent
recoveries of amounts written off are credited against the same line item.
(b)
Liquidity risk
Liquidity risk is the risk that the Consolidated Entity will not be able to meet its financial obligations as they fall
due. The Consolidated Entity’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 Consolidated Entity’s reputation.
Typically, the Consolidated Entity ensures that it has sufficient cash on demand to meet expected operational
expenses for a period of 45 to 60 days, including the servicing of financial obligations; this excludes the potential
impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting arrangements:
(c)
Interest risk
Interest rate risk is the risk that changes in interest rates will affect the Consolidated Entity’s income and expenses or
the value of its holdings of financial instruments and financial liabilities. The objective of interest rate risk management
is to manage and control interest rate risk exposures within acceptable parameters, while optimising the return.
Interest rate risk is managed by seeking to maximise the yield achieved on cash held at bank and minimise the
interest rates incurred on borrowings.
Non-derivative financial
liabilities
Note
Carrying
Amount
$000
Contractual
cash flows
$000
Payable
6 months
or less
$000
Payable
between
6 and 12
months
$000
Payable
after 12
months
$000
30 June 2024
Trade and other payables
5(e)
4,240
4,240
4,040
100
100
Short and long term loans
5(f)
39
39
4
4
31
Lease liabilities
5(g)
1,939
1,939
725
454
760
Deferred consideration
5(h)
287
287
134
42
111
6,505
6,505
4,903
600
1,002
30 June 2023
Trade and other payables
5(e)
3,834
3,834
3,834
-
-
Short and long term loans
5(f)
47
47
4
4
39
Lease liabilities
5(g)
3,331
3,331
865
900
1,566
Deferred consideration
5(h)
1,406
1,406
143
-
1,263
8,618
8,618
4,846
904
2,868
Pg 75
Acumentis Annual Report 2024
At the end of the reporting period the interest rate profile of the Consolidated Entity’s interest-bearing financial
instruments and borrowings was:
(d)
Cash flow sensitivity analysis for rate instruments
The impact of interest rate changes on the profitability of the Consolidated Entity is likely to be immaterial.
(e)
Fair values
The Directors consider that the fair value of financial assets and financial liabilities of the Consolidated Entity
approximate their carrying amount.
(f)
Financial instruments at fair value
The Consolidated Entity has adopted the following fair value hierarchy in relation to its financial instruments that are
carried in the balance sheet at fair value:
Level 1
Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2
Inputs, other than quoted prices included within Level 1, that are observable for the asset
or liability either directly (as prices) or indirectly (derived from prices).
Level 3
Inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
Variable rate instruments
Note
2024
$000
2023
$000
Assets
- Cash and cash equivalents
5(a)
4,140
1,697
- Non-current financial assets
5(d)
185
189
Liabilities
- Current borrowings
5(f)
8
8
- Non-current borrowings
5(f)
31
39
Fixed rate instruments
Assets
- Term deposits
5(b)
940
914
- Current financial assets
5(d)
95
371
- Non-current financial assets
5(d)
-
95
Liabilities
- Current lease liabilities
5(g)
1,179
1,765
- Non-current lease liabilities
5(g)
760
1,566
Pg 76
Acumentis Annual Report 2024
The following table sets out the fair value of liabilities that are measured at fair value:
The fair value of the deferred contingent consideration is determined based on the expected payment which is dependent
upon the revenue for the acquired business for the three years ended 31 January 2025, 2026 and 2027. This unobservable
input is estimated by applying an annual growth in revenue of 18% over the remaining two years of the three year
measurement period.
If the weighted average growth in revenue changed then the deferred consideration would change as follows:
•
Growth in profit increased by 10%, deferred consideration would increase by $15,000
•
Growth in profit decreased by 10%, deferred consideration would decrease by $14,000
The amount is not discounted due to the immaterial impact that discounting would have.
12
Capital management
(a)
Risk management
The Company’s objectives when managing capital are to:
•
Safeguard their ability to continue as a going concern, so they can continue to provide returns to shareholders and
benefits to other stakeholders;
•
To maintain a capital structure that is appropriate for a professional services firm with limited tangible assets; and
•
To reduce the overall cost of capital.
In order to maintain or adjust capital structure, the Company may adjust the level of dividends to shareholders, return
capital to shareholders, issue new shares, source new debt finance or repay debt finance.
Level 1
$000
Level 2
$000
Level 3
$000
Total
$000
30 June 2024
Deferred contingent consideration (note 5(h))
-
-
153
153
30 June 2023
Level 1
$000
Level 2
$000
Level 3
$000
Total
$000
Deferred contingent consideration (note 5(h))
-
-
1,263
1,263
Pg 77
Acumentis Annual Report 2024
The Company monitors capital on the basis of the following gearing ratio:
The Company also monitors net working capital calculated as follows:
The net working capital increased during the year as a result of the improved trading performance.
The Company has access to a $3M receivables finance facility which does not require the Consolidated Entity to
comply with any financial covenants or capital restrictions.
Note
2024
$000
2023
$000
Borrowings
5(f)
39
47
Cash or cash equivalents
5(a)
(4,140)
(1,697)
(Net cash) / net debt
(4,101)
(1,650)
Total Equity
26,024
24,070
Net debt to equity ratio
(16%)
(7%)
Note
2024
$000
2023
$000
Cash or cash equivalents
5(a)
4,140
1,697
Trade and other receivables
5(c)
5,702
5,916
Trade and other payables
5(e)
(4,240)
(3,834)
Current borrowings
5(f)
(8)
(8)
Current tax liabilities
6(d)
-
-
Current deferred consideration
5(h)
(176)
(143)
Current employee benefit obligations
- Total
6(g)
(5,260)
(4,897)
- Expected to be settled after 12 months
6(g)
1,687
1,621
1,845
352
Net debt (borrowings minus cash or cash equivalents) / total equity
Pg 78
Acumentis Annual Report 2024
(b)
Dividends
(i)
Ordinary shares
Dividends recognised in the current and prior years by the Company are:
(ii)
Franked dividends
After the end of the reporting period, the directors have not declared a final dividend.
The above available amounts are based on the balance of the dividend franking account at the end of the
reporting period adjusted for:
a)
Franking credits that will arise from the payment of the current tax liabilities;
b)
Franking debits that will arise from the payment of dividends recognised as a liability at
the year-end; and
c)
Franking credits that will arise from the receipt of dividends recognised as receivables by
the tax consolidated group at the year-end.
The ability to utilise the franking credits is dependent upon there being sufficient available profits to declare
dividends. As there is no dividend declared for 2024, there is no impact on the dividend franking account for
dividends proposed after the end of the reporting period but not recognised as a liability (2023: nil).
Cents per
share
Total amount
$000
Franked/
unfranked
Date of
Payment
2024
No dividends declared
-
-
-
-
2023
No dividends declared
-
-
-
-
Dividend franking account
Company
2024
$000
Company
2023
$000
30% franking credits available to shareholders of Acumentis Group Limited
for subsequent financial years
2,079
2,079
Pg 79
Acumentis Annual Report 2024
THIS PAGE IS AN INTENTIONALLY BLANK PAGE
Pg 80
Acumentis Annual Report 2024
Group
structure
ASX:ACU FY23-24
Pg 80
Acumentis Annual Report 2024
Pg 81
Acumentis Annual Report 2024
GROUP STRUCTURE
This section provides information which will help users understand how the group structure affects the financial position
and performance of the Consolidated Entity as a whole. In particular, there is information about:
•
Changes to the structure that occurred during the year as a result of business combinations and the disposal of a
discontinued operation;
•
Transactions with non-controlling interests; and
•
Interests in joint operations.
A list of significant subsidiaries is provided in note 14(a). This note also discloses details about the Consolidated Entity’s
equity accounted investments.
13
Business combinations - Acquisitions
(a)
Gill Wright & Associates Business Valuations (“GWA”)
Summary of acquisition
Effective 1 February 2024, the Company acquired the business and assets of GWA.
Details of the purchase consideration, the net assets acquired, and goodwill were as follows:
Contingent consideration
Additional contingent consideration is payable calculated as 8.5% of net fees generated by the acquired business for
the 36 months following the acquisition date. Contingent consideration is payable within 2 months of each anniversary
of the acquisition date. The amounts provided in the financial statements are based on managements’ forecasts for
the acquired business.
$000
Details of the consideration transferred
Cash paid
94
Contingent consideration
Payable March 2025
42
Payable March 2026
51
Payable March 2027
60
247
Fair value of assets and liabilities acquired
Other current assets
7
Employee benefits
(3)
4
Goodwill
243
247
Net cashflows from acquisition
Cash paid
(94)
Pg 82
Acumentis Annual Report 2024
Acquisition costs
No acquisition costs were incurred.
(b)
Revenue & Profit Contribution
The GWA business contributed the following revenue and profit between the effective date of acquisition (1 February
2024) and the end of the financial year:
If the acquisitions had occurred on 1 July 2023, consolidated revenue and loss before tax would have been:
2024
$000
Revenue
194
Net profit / (loss) before tax
-
2024
$000
Revenue
582
Net profit before tax
-
Pg 83
Acumentis Annual Report 2024
14
Interests in other entities
(a)
Subsidiaries
The Consolidated Entity’s subsidiaries at 30 June 2024 are set out below. Unless otherwise stated, they have share capital
consisting solely of ordinary shares that are held directly by the Consolidated Entity, and the proportion of ownership interests
held equals the voting rights held by the Consolidated Entity. All entities are incorporated and operate in Australia only.
Ownership interest
held by the
Consolidated Entity
Ownership interest
held by non-
controlling
interests
Name of entity
2024
%
2023
%
2024
%
2023
%
Principal activities
Acumentis Pty Ltd
100
100
-
-
Valuations
Acumentis Brisbane Pty Ltd
100
100
-
-
Commercial valuations
Acumentis Gold Coast Pty Ltd
100
100
-
-
Commercial valuations
Acumentis Melbourne Pty Ltd
100
100
-
-
Commercial valuations
Acumentis Statutory Services Pty Ltd
100
100
-
-
Government valuations
Taylor Byrne Holdings Pty Ltd
100
100
-
-
Non-trading
Acumentis Regional Pty Ltd
100
100
-
-
Regional valuations
Lane Infrastructure Pty Ltd
100
100
-
-
Property advisory services
Acumentis Australia Pty Ltd
100
100
-
-
National valuation
contracting entity
Acumentis Management Pty Ltd
100
100
-
-
Group employer
Acumentis Advisory Pty Ltd
100
100
-
-
Non-trading
Hoolihan Valuations Pty Ltd
100
100
-
-
Non-trading
Acumentis (WA) Holdings Pty Ltd
100
100
-
-
Non-trading
Acumentis (WA) Pty Ltd
100
100
-
-
Valuations
Acumentis (WA) Advisory Pty Ltd
100
100
-
-
Property advisory services
HPG Nominees Pty Ltd
100
100
-
-
Franchisor
WA Property Valuers Pty Ltd
100
100
-
-
Non-trading
Acumentis (SA) Pty Ltd
100
100
-
-
Valuations
Acumentis Employee Benefits Pty Ltd
100
100
-
-
Trustee for employee share plan
Pg 84
Acumentis Annual Report 2024
Pg 84
Acumentis Annual Report 2024
Unrecognised
items
ASX:ACU FY23-24
Pg 85
Acumentis Annual Report 2024
UNRECOGNISED ITEMS
This section of the notes provides information about items that are not recognised in the financial statements as they do
not (yet) satisfy the recognition criteria.
15
Contingent liabilities
At 30 June 2023, the Consolidated Entity reported a contingent liability relating to the cyber attacks in 2019 and the claim
by insurers that the two attacks should be aggregated. The insurers had demanded repayment of $1.1M. The Consolidated
Entity has agreed to repay $300K in full and final settlement of the aggregation claim in order to avoid legal costs defending
the claim and the associated litigation risk if the matter progressed to trial. Accordingly, the $300K has been recorded
within other payables and accruals as at 30 June 2024 and the Consolidated Entity is no longer exposed to a contingent
liability related to this matter.
The Consolidated Entity, from time to time, is involved in matters of litigation in the normal course of business in undertaking
valuation services. At 30 June 2024 there are no open litigated claims that are expected to have a material impact on the
results of the Consolidated Entity. The Consolidated Entity has professional indemnity insurance, and under the terms of
the insurance policy, each claim has an excess which is required to be paid by the Consolidated Entity. It was not practical
to estimate the maximum contingent liability arising from litigation; however, in a worst-case situation there could be a
material adverse effect on the Consolidated Entity’s financial position. In the directors’ opinion, disclosures of any further
information in relation to litigation would be prejudicial to the interests of the Consolidated Entity.
16
Commitments
Capital expenditure
The Consolidated Entity does not have any capital expenditure commitments at the end of the reporting period.
Under accounting standard AASB16 – Leases, except for leases with terms of 12 months or less or where the value of the
leased asset does not exceed $5,000, commitments under leases are now recorded on the statement of financial position.
Where the Consolidated Entity leases property and equipment under non-cancellable operating leases with lease terms
less than or equal to 12 months or with asset values less than or equal to $5,000 the leases continue to be accounted for
off consolidated statement of financial position with operating lease commitments disclosed in the above table.
Guarantees
Acumentis Group Limited has not entered into any guarantees, in the current or previous financial year, in relation to the
debts of its subsidiaries.
Operating lease commitments
2024
$000
2023
$000
Within one year
353
247
One year or later and no later than five years
-
-
Later than five years
-
-
353
247
Pg 86
Acumentis Annual Report 2024
17
Events occurring after the reporting period
Subsequent to 30 June 2024, the Consolidated Entity reached agreement to settle the cyber insurance aggregation claim
previously disclosed as a contingent liability. The matter was settled for $300,000 which has been included in other
payables and accruals as at 30 June 2024. Refer note 15.
There were no other events occurring after the reporting period that have a material impact on the financial statements or
the operating activities of Acumentis Group Limited.
Pg 87
Acumentis Annual Report 2024
THIS PAGE IS AN INTENTIONALLY BLANK PAGE
Pg 88
Acumentis Annual Report 2024
Other disclosures
ASX:ACU FY23-24
Pg 89
Acumentis Annual Report 2024
OTHER DISCLOSURES
This section of the notes includes other information that must be disclosed to comply with the accounting standards
and other pronouncements, but that is not immediately related to individual line items in the financial statements.
18
Related party transactions
(a)
Subsidiaries
Interests in subsidiaries are set out in note 14(a).
(b)
Key management personnel compensation
Detailed remuneration disclosures are provided in the remuneration report on pages 29 to 35.
(c)
Transactions with other related parties
The following transactions occurred with related parties:
Executive directors and other key management personnel
2024
$
2023
$
Short term employee benefits
1,009,960
953,680
Post-employment benefits
65,973
59,366
Long-term benefits
3,878
(5,383)
Share based payments
189,178
2,057
1,268,989
1,009,720
2024
$
2023
$
Group management fee income from associates & franchisees
21,450
21,450
Pg 90
Acumentis Annual Report 2024
(d)
Loans to related parties
19
Share-based payments
(a)
Employee option & performance rights plans
The directors at their discretion allocate share options or performance rights that entitle key management personnel
and senior employees to purchase shares in the entity. The terms of the options including vesting conditions and
performance criteria vary depending upon the incentive arrangements appropriate for key management personnel
and senior employees and are a part of an approved Employee Share Acquisition Scheme, which was approved by
shareholders at the 2018 Annual General Meeting and renewed at the 2021 Annual General Meeting.
Movements in options during the period were as follows:
Performance rights were granted under the Acumentis Group Performance Rights and Option Plan which was approved
by shareholders at the 2018 Annual General Meeting and renewed at the 2021 Annual General Meeting.
The Plan allows the Company to grant options or rights to selected key employees to acquire ordinary shares in the
Company. Participants are required to satisfy performance and service conditions at the time of the offer. The exercise
price for performance rights is nil. Rights cannot be transferred and are not quoted on the ASX.
Executive directors and other key management personnel
2024
$
2023
$
Balance at 1 July
188,978
185,991
Interest charged
13,100
10,487
Loan & interest repayments received
(17,507)
(7,500)
Balance at 30 June
184,571
188,978
1.
The employee loan was advanced to a vendor shareholder of Acumentis (WA) Holdings Pty Ltd to enable retirement of debt secured against that shareholder’s
investment in Acumentis (WA) Holdings Pty Ltd. The loan carries interest at market rates, equal to the 6 monthly bank bill swap rate plus 2.6%. On grant, this loan
was repayable in full when the deferred, contingent consideration relating to the acquisition of Acumentis (WA) Holdings Pty Ltd was settled. When the deferred,
contingent consideration was settled early in May 2024 (refer note 5(h)) the terms were amended so that the loan is now payable in full by 30 June 2024 and now
has minimum payments of $20,000 capital plus accrued interest per calendar year. The loan is secured by the 2,606,565 ordinary shares in Acumentis Group
Limited issued to the vendor as part consideration for the acquisition.
2024
Average
Exercise
Price
2024
Number of
Options
2023
Average
Exercise
Price
2023
Number of
Options
As at 1 July
-
-
-
-
Exercised during the year
-
-
-
-
As at 30 June
-
-
-
-
Pg 91
Acumentis Annual Report 2024
Movements in performance rights during the period were as follows:
2024
Number of
Rights
2023
Number of
Rights
As at 1 July
2,316,000
2,416,000
Granted during the year
9,000,000
1,140,000
Forfeited during year
Failure to meet service condition
-
(240,000)
Failure to meet performance and market conditions
(1,176,000)
(1,000,000)
Vested and exercised during the year
-
-
As at 30 June
10,140,000
2,316,000
Pg 92
Acumentis Annual Report 2024
Grant date
15 Oct 20
20 Sep 21 &
28 Oct 21
25 Oct 22
25 Oct 23
25 Oct 23
25 Oct 23
Number of rights
Originally issued
1,000,000
1,680,000
1,140,000
1,500,000
1,500,000
6,000,000
Forfeited
(1,000,000)
(1,680,000)
-
-
-
-
Vested & exercised
-
-
-
-
-
-
On issue
-
-
1,140,000
1,500,000
1,500,000
6,000,000
Weighted average fair value at
grant date1 (cents)
11.83
13.25
6.92
6.05
5.76
5.48
Inputs into Monte Carlo and
Binomial valuation models used
to determine fair value
Share price at measurement
date (cents)
13.00
15.00
8.60
6.30
6.30
6.30
Expected volatility
60%
60%
60%
50%
50%
50%
Dividend yield
0%
0%
0%
3-7%
3-7%
3-7%
Risk free interest rate
0.14%
0.17%
3.50%
4.51%
4.43%
4.37%
Service Condition
The executive must remain
employed from grant date
until the finalisation of
the statutory audit for the
financial year ended
30 Jun 23
30 Jun 24
30 Jun 25
30 Jun 24
30 Jun 25
30 Jun 26
Market Condition
Applicable to (% of rights)
The performance rights will
vest if the total shareholder
return (“TSR”) for Acumentis
is at least equal to the TSR
for the ASX300 for the period
50%
1 Jul 20 –
30 Jun 23
50%
1 Jul 21 –
30 Jun 24
50%
1 Jul 22 –
30 Jun 25
N/A
N/A
N/A
Performance Condition
Applicable to (% of rights)
The performance rights will
vest pro-rata based on
the earnings per share of
Acumentis Group Limited being
between
50%
2.4 & 3.2
cents for
FY23
50%
2.5 & 3.4
cents for
FY24
50%
2.6 & 3.5
cents for
FY25
N/A
N/A
100%
1.0 & 2.0
cents for
FY26
Management estimate of likely
outcome of performance (non-
market) condition as at:
30 June 2024
N/A
0%
0%
N/A
N/A
100%
30 June 2023
N/A
100%
100%
N/A
N/A
N/A
Details of performance right valuations and vesting conditions are as follows:
Pg 93
Acumentis Annual Report 2024
The Board has the discretion to adjust the number of rights that ultimately vest and/or the service condition period
if it forms the view that the unadjusted outcome is not appropriate to the circumstances that prevailed over the
measurement period.
The Board has discretion to determine that some or all unvested rights held lapse on a specified date if allowing
the rights to vest would, in the opinion of the Board, result in an inappropriate benefit to the rights holder. Such
circumstances would include joining a competitor or actions that harm the Company’s stakeholders.
In the case of fraud or misconduct, all unvested rights will be forfeited.
(b)
Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the period as part of employee
benefit expense were as follows:
20
Remuneration of auditors
2024
$
2023
$
Options
-
-
Performance rights
184,494
38,000
184,494
38,000
2024
$
2023
$
Audit services
Auditor of the Consolidated Entity – William Buck
Audit and review of the financial reports
220,000
234,000
Other services
Other William Buck related entities
Taxation and other services
9,690
9,790
Total services
229,690
243,790
Pg 94
Acumentis Annual Report 2024
21
Earnings per share
(a)
Basic earnings per share
The calculation of basic earnings per share was calculated as follows:
(b)
Diluted earnings per share
The calculation of diluted earnings per share was calculated as follows:
As at the date of this report there are no options over ordinary shares and 10,140,000 performance rights in the
Company.
2024
$000
2023
$000
Profit / (loss) attributable to ordinary shareholders
1,425
429
Weighted average number of ordinary shares and potential
ordinary shares used as the denominator
Number
Number
Issued Ordinary Shares at 1 July
218,174,605
175,317,445
Shares issued during year
1,780,441
42,857,160
Issued Ordinary Shares at 30 June
219,955,046
218,174,605
Weighted average number of ordinary shares at 30 June
218,369,189
189,605,747
Options on issue at 30 June (note 7(b))
-
2,500,000
Performance rights on issue at 30 June (note 19(a))
10,140,000
2,316,000
Weighted average number of ordinary shares and potential ordinary shares at
30 June
228,509,189
194,421,747
Calculated diluted earnings per share
0.62 cents
0.22 cents
2024
$000
2023
$000
Profit attributable to ordinary shareholders
1,425
429
Weighted average number of shares used as the denominator
Number
Number
Issued Ordinary Shares at 1 July
218,174,605
175,317,445
Shares issued during year
1,780,441
42,857,160
Issued Ordinary Shares at 30 June
219,955,046
218,174,605
Weighted average number of ordinary shares at 30 June
218,369,189
189,605,747
Calculated basic earnings per share
0.65 cents
0.23 cents
Pg 95
Acumentis Annual Report 2024
22
Parent entity financial information
The following information has been extracted from the books and records of the parent and has been prepared in
accordance with the accounting standards.
(a)
Statement of financial position
(b)
Statement of profit & loss and other comprehensive income
23
Going concern
The directors are satisfied that the going concern basis of preparation is appropriate and therefore the financial
information does not include any adjustments relating to the recoverability or classification of recorded asset amounts
or to the amounts or classification of liabilities that might be necessary should the company not be able to continue
as a going concern.
Assets
2024
$000
2023
$000
Current assets
5,118
2,532
Non-current assets
55,793
57,019
Total assets
60,911
59,551
Liabilities
Current liabilities
31,297
26,957
Non-current liabilities
-
1,382
Total liabilities
31,297
28,339
Net assets
29,614
31,212
Equity
Issued capital
22,342
22,208
Retained earnings
6,922
8,839
Other reserves
350
165
Total equity
29,614
31,212
2024
$
2023
$
Total profit / (loss)
(1,917)
(1,950)
Total comprehensive income / (loss)
(1,917)
(1,950)
Pg 96
Acumentis Annual Report 2024
24
Summary of significant accounting policies
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated
financial statements to the extent they have not already been disclosed in the other notes above. These policies have
been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the
Consolidated Entity consisting of Acumentis Group Limited and its subsidiaries.
(a)
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Acumentis
Group Limited is a for-profit entity for the purpose of preparing the financial statements.
(i)
Compliance with IFRS
The consolidated financial statements also comply with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board (IASB).
(ii)
Historical cost convention
The financial statements have been prepared on a historical cost basis, except for deferred consideration
which is recorded as a financial liability at fair value with changes recorded through the statement of profit
and loss and other comprehensive income.
(iii)
New and amended standards adopted by the Consolidated Entity
No new or amended standards were applicable to the Consolidated for the current financial year.
(iv)
New standards and interpretations not yet adopted
The AASB has issued new and amended accounting standards and interpretations that have mandatory
application dates for future reporting periods and which the Consolidated Entity has decided not to early
adopt. These standards are not expected to have a material impact on the Consolidated Entity in the current
or future reporting periods and on foreseeable future transactions.
(b)
Segment reporting
The Consolidated Entity’s operations and clients are located entirely in Australia.
The Consolidated Entity’s operating segments have been identified based on the segments analysed within
management reports. Based on these criteria, it has been determined that the Consolidated Entity only operates in
the Valuation segment, which provides valuation, research and advice services in relation to property and businesses.
Accordingly, no separate segment reporting is required.
Pg 97
Acumentis Annual Report 2024
(c)
Employee benefits
(i)
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are recognised
in respect of employees’ services up to the end of the reporting period and are measured at the amounts
expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit
obligations in the consolidated statement of financial position.
(ii)
Other long-term employee benefit obligations
The liabilities for long service leave and annual leave are not expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service. They are therefore measured as
the present value of expected future payments to be made in respect of services provided by employees up
to the end of the reporting period using the projected unit credit method. Consideration is given to expected
future wage and salary levels, experience of employee departures and periods of service. Expected future
payments are discounted using market yields at the end of the reporting period of high-quality corporate
bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. Re-
measurements as a result of experience adjustments and changes in actuarial assumptions are recognised
in profit or loss.
The obligations are presented as current liabilities in the consolidated statement of financial position if the
entity does not have an unconditional right to defer settlement for at least twelve months after the reporting
period, regardless of when the actual settlement is expected to occur.
(iii)
Post-employment obligations
The Consolidated Entity operates various defined contribution pension plans.
Pension obligations
For defined contribution plans, the Consolidated Entity pays contributions to publicly or privately
administered pension insurance plans on a mandatory, contractual or voluntary basis. The Consolidated
Entity has no further payment obligations once the contributions have been paid. The contributions are
recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an
asset to the extent that a cash refund or a reduction in the future payments is available.
(iv)
Share-based payments
Share-based compensation benefits are provided to employees via the Acumentis Group Employee Option
& Performance Rights Plan and an employee share scheme. Information relating to these schemes is set out
in note 19.
Pg 98
Acumentis Annual Report 2024
Employee options and performance rights
The fair value of options and performance rights granted under the Acumentis Group Limited Employee
Option and Performance Rights Plan is recognised as an employee benefits expense with a corresponding
increase in equity. The total amount to be expensed is determined by reference to the fair value of the
options and performance rights granted:
• Including any market performance conditions (e.g. the entity’s share price);
• Excluding the impact of any service and non-market performance vesting conditions (e.g. profitability,
sales growth targets and remaining an employee of the entity over a specified time period); and
• Excluding the impact of any non-vesting conditions (e.g. the requirement for employees to save or
holdings shares for a specific period of time).
The total expense is recognised over the vesting period, which is the period over which all of the specified
vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the
number of options and performance rights that are expected to vest based on the non-market vesting and
service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with
a corresponding adjustment to equity.
The Employee Option and Performance Rights Plan is administered by the Acumentis Employee Share
Trust, which is not consolidated. When the options or performance rights are exercised, the trust transfers
the appropriate number of shares to the employee. The proceeds received net of any directly attributable
transaction costs are credited directly to equity.
(v)
Profit-sharing and bonus plans
The Consolidated Entity recognises a liability and an expense for bonuses and profit-sharing based on a
formula that takes into consideration the profit attributable to the company’s shareholders after certain
adjustments. The Consolidated Entity recognises a provision where contractually obliged or where there is a
past practice that has created a constructive obligation.
(vi)
Termination benefits
Termination benefits are payable when employment is terminated by the Consolidated Entity before the
normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits.
The Consolidated Entity recognises termination benefits at the earlier of the following dates: (a) when the
Consolidated Entity can no longer withdraw the offer of those benefits; and (b) when the entity recognises
costs for a restructuring that is within the scope of AASB 137 and involves the payment of terminations
benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are
measured based on the number of employees expected to accept the offer. Benefits falling due more than
12 months after the end of the reporting period are discounted to present value.
(d)
Rounding of amounts
The company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of
amounts in the financial statements. Amounts in the financial statements have been rounded off in accordance with
the instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Pg 99
Acumentis Annual Report 2024
THIS PAGE IS AN INTENTIONALLY BLANK PAGE
Pg 100
Acumentis Annual Report 2024
Consolidated entity
disclosure statement
ASX:ACU FY23-24
Pg 101
Acumentis Annual Report 2024
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT 30 JUNE 2024
Name of entity
Type of Entity
% of share
capital
Country of
incorporation
Australian resident
or foreign resident2
Acumentis Pty Ltd
Body corporate
100
Australia
Australian
Acumentis Brisbane Pty Ltd
Body corporate
100
Australia
Australian
Acumentis Gold Coast Pty Ltd
Body corporate
100
Australia
Australian
Acumentis Melbourne Pty Ltd
Body corporate
100
Australia
Australian
Acumentis Statutory Services Pty Ltd
Body corporate
100
Australia
Australian
Taylor Byrne Holdings Pty Ltd
Body corporate
100
Australia
Australian
Acumentis Regional Pty Ltd
Body corporate
100
Australia
Australian
Lane Infrastructure Pty Ltd
Body corporate
100
Australia
Australian
Acumentis Australia Pty Ltd
Body corporate
100
Australia
Australian
Acumentis Management Pty Ltd
Body corporate
100
Australia
Australian
Acumentis Advisory Pty Ltd
Body corporate
100
Australia
Australian
Hoolihan Valuations Pty Ltd
Body corporate
100
Australia
Australian
Acumentis (WA) Holdings Pty Ltd
Body corporate
100
Australia
Australian
Acumentis (WA) Pty Ltd
Body corporate
100
Australia
Australian
Acumentis (WA) Advisory Pty Ltd
Body corporate
100
Australia
Australian
HPG Nominees Pty Ltd
Body corporate
100
Australia
Australian
WA Property Valuers Pty Ltd
Body corporate
100
Australia
Australian
Acumentis (SA) Pty Ltd
Body corporate
100
Australia
Australian
Acumentis Employee Benefits Pty Ltd
Body corporate
100
Australia
Australian
Notes
1.
None of the entities noted above were trustees of trusts within the Consolidated Entity, partners in a partnership within the consolidated entity or participants in
a joint venture within the consolidated entity except for Acumentis Employee Benefits Pty Ltd which is trustee of the Employee Share Plan.
2.
Residency in accordance with the Income Tax Assessment Act 1997 (Cth)
Pg 102
Acumentis Annual Report 2024
Directors’
declaration
ASX:ACU FY23-24
Pg 103
Acumentis Annual Report 2024
DIRECTORS’ DECLARATION
1
In the opinion of the directors of Acumentis Group Limited (‘the Company’):
(a)
the financial statements and notes set out on pages 40 to 98 and the remuneration disclosures of
the Remuneration report in the Directors’ report, set out on pages 29 to 35, are in accordance with
the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position of the Company and the Consolidated Entity
as at 30 June 2024 and of its performance, for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001;
(b)
the financial report also complies with International Financial Reporting Standards
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable;
(d) the Consolidated Entity Disclosure Statement set out on page 100 is true and correct.
2
The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2024.
Dated at Sydney this 30th day of August 2024
Signed in accordance with a resolution of the directors:
Keith Perrett
Director
Pg 104
Acumentis Annual Report 2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
Level 29, 66 Goulburn Street, Sydney NSW 2000
Level 7, 3 Horwood Place, Parramatta NSW 2150
+61 2 8263 4000
nsw.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report to the members of Acumentis Group
Limited
Report on the audit of the financial report
Our opinion on the financial report
In our opinion, the accompanying financial report of Acumentis Group Limited (the Company) and its
subsidiaries (the Consolidated Entity) is in accordance with the Corporations Act 2001, including:
— giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2024 and of its
financial performance for the year then ended; and
— complying with Australian Accounting Standards and the Corporations Regulations 2001.
What was audited?
We have audited the financial report of the Consolidated Entity, which comprises:
— the consolidated statement of financial position as at 30 June 2024,
— the consolidated statement of profit or loss and other comprehensive income for the year then ended,
— the consolidated statement of changes in equity for the year then ended,
— the consolidated statement of cash flows for the year then ended,
— notes to the financial statements, including material accounting policy information,
— the consolidated entity disclosure statement, and
— the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards1. 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 Consolidated Entity in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional &
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 also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Pg 105
Acumentis Annual Report 2024
1 We elected to early adopt the revised ASA600 Audits of a Group Financial Report (Including the work of Component Auditors)
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. These matters were 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 these matters.
Impairment
assessments -
Goodwill
Area of focus
(refer also to notes 6 (c), & 13(a)
The Consolidated Entity’s net assets include
a significant amount of intangible assets, the
majority of which have originated from
acquisitions in the current and prior years.
As at 30 June 2024, the Consolidated
Entity’s net assets include Goodwill of $20.5
million (2023: $20.3 million)
There is a risk that the Consolidated Entity
may not trade in line with initial expectations
and forecasts, resulting in the carrying
amount of intangible assets exceeding the
recoverable amount and therefore requiring
impairment.
In accordance with the requirements of
AASB 136 Impairment of Assets, the
Consolidated Entity is required to test
goodwill for impairment annually and
whenever there is an indicator of impairment.
The recoverable amount for each Cash
Generating Unit (CGU) to which goodwill has
been allocated has been calculated based
on value-in-use models, which use
discounted cash flow forecasts. The
Directors make judgements over certain key
inputs including, but not limited to, revenue
growth, gross margins, discount rates, long
term growth rates and inflation rates.
Due to the high degree of judgement and
estimation involved in the determination of
the recoverable amount of each CGU, and
the significance of the carrying amounts
involved, we have determined that this is an
area of significance in our audit of the
financial report.
How our audit addressed the key
audit matter
Our audit procedures included:
— Giving consideration to and
performing an assessment of
management’s determination of
CGUs;
— A detailed evaluation of the
Consolidated Entity’s budgeting
procedures upon which the
forecasts are based and testing the
principles and integrity of the
discounted future cash flow models;
— Testing the accuracy of the
calculation derived from each
forecast model and assessing key
inputs to the calculations such as
revenue growth, gross margins,
discount rates and working capital
assumptions;
— Engaging our own valuation
specialists to critically evaluate the
appropriateness of the discount
rates and the long-term growth
rates used in the discounted cash
flow model;
— Reviewing the historical accuracy of
the forecasts by comparing actual
results with the original forecasts
from prior years
— Performing sensitivity analysis of
the calculations; and
— Assessing whether disclosure in the
financial report is appropriate.
Pg 106
Acumentis Annual Report 2024
1 We elected to early adopt the revised ASA600 Audits of a Group Financial Report (Including the work of Component Auditors)
Other information
The directors are responsible for the other information. The other information comprises the information
contained in the Directors’ Report but does not include the financial report and the auditor’s report thereon,
which we obtained prior to the date of this auditor’s report, and the annual report, which is expected to be
made available to us after this date.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, 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.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
— the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
— the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
— the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
— the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Consolidated
Entity to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are 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 the Australian Auditing Standards1 will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and 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 this 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/media/bwvjcgre/ar1_2024.pdf
This description forms part of our auditor’s report.
Pg 107
Acumentis Annual Report 2024
1 We elected to early adopt the revised ASA600 Audits of a Group Financial Report (Including the work of Component Auditors)
Report on the Remuneration Report
Our opinion on the Remuneration Report
In our opinion, the Remuneration Report of Acumentis Group Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
What was audited?
We have audited the Remuneration Report included in pages 8 to 14 of the directors’ report for the year
ended 30 June 2024.
Responsibilities
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 responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards1.
William Buck
Accountants & Advisors
ABN 16 021 300 521
Domenic Molluso
Partner
Sydney, 30 August 2024
Pg 108
Acumentis Annual Report 2024
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Stock Exchange Limited Listing Rules and not disclosed elsewhere in
this report is set out below.
The Company was admitted to the Australian Stock Exchange under rule 1.3.2(b).
Shareholdings
Shareholding details are as at 31 July 2024.
Substantial shareholders
The number of shares held by substantial shareholders and their associates are set out below:
Distribution of equity security holders
Shareholder
Number of Ordinary Shares
Percentage
Redbrook Nominees Pty Ltd
36,860,852
16.6%
Newport Shipping Company Pty Limited
25,953,613
11.7%
Citicorp Nominees Pty Ltd
23,935,874
10.8%
Voting rights
Ordinary shares
Holders of ordinary shares are entitled to one vote per share at shareholder meetings.
Options
There are no voting rights attached to options
As at 30 June 2024 there were 219,955,046 ordinary shares on issue (note 7(a)).
On-market buy back
There is no current on-market buy back.
Unmarketable Parcels
The number of shareholders holding less than a marketable parcel of 6,173 shares (based
on closing price of $0.081 on 31 July 2024 is 269 and they hold 815,170 securities.
Category
Number of Shareholders
Number of shares
1 – 1,000
58
16,980
1,001 – 5,000
193
695,980
5,001 – 10,000
147
1,179,321
10,001 – 50,000
243
6,133,562
50,001 – 100,000
66
4,863,029
100,001 and over
156
208,566,174
Total
863
221,455,046
Pg 109
Acumentis Annual Report 2024
Name
Number of Ordinary Shares
Percentage
CITICORP NOMINEES PTY LIMITED
23,935,874
10.8%
NEWPORT SHIPPING COMPANY PTY
19,555,041
8.8%
REDBROOK NOMINEES PTY LTD
16,018,746
7.2%
ACRES HOLDINGS PTY LTD
11,676,473
5.3%
KIUT INVESTMENTS PTY LTD
10,229,536
4.6%
ENABLE INVESTMENT MANAGER PTY
6,323,817
2.9%
MR LESLIE PETER WOZNICZKA
5,720,000
2.6%
CAROSSAH PTY LTD
4,968,865
2.2%
STIBBCO INVESTMENTS PTY LTD
4,585,753
2.1%
WHITE VALUATIONS PTY LTD
3,600,000
1.6%
MS LYNETTE JANE ELLIS & MR JEFFREY GEORGE KEANE
3,558,334
1.6%
NICKSON PTY LTD
3,411,416
1.5%
GOGORM SUPER PTY LTD
3,182,494
1.4%
KEVIN KING PTY LTD
3,136,069
1.4%
NATANI INVESTMENTS PTY LTD
3,134,641
1.4%
NATHAN ALEXANDER KING
2,824,063
1.3%
MR NOEL EDWARD KAGI & MRS MICHELLE LEONIE KAGI
2,796,437
1.3%
BLAKE FRANCIS DEAN LIESCHKE
2,747,576
1.2%
TONY MICHAEL GORMAN
2,689,771
1.2%
ARKMIST PTY LTD
2,645,712
1.2%
136,740,618
61.7%
Twenty largest shareholders
Company Secretary
John Wise
Principal registered office
Level 7, 283 Clarence Street
Sydney NSW 2000
Telephone
02 8823 6300
Facsimile
02 8823 6399
Website
www.acumentis.com.au
Location of share registry
Automic Registry Services
Level 5, 126 Phillip Street
Sydney NSW 2000
Telephone 1300 288 664 (toll free within Australia)
+61 2 9698 5414 (outside Australia)
Email hello@automic.com.au
Stock exchange
The company is listed on the Australian Stock Exchange (“ACU”)
Other information
Acumentis Group Limited, incorporated and domiciled in Australia, is a publicly
listed company limited by shares.
Pg 110
Acumentis Annual Report 2024
Teri Roberts, Director - Business / Rent Roll Valuations
Pg 111
Acumentis Annual Report 2024
www.acumentis.com.au
Liability limited by a scheme approved under Professional Standards Legislation.