Appendix 4E
Preliminary Final Report
Name of entity
ABN
Analytica Limited
12 006 464 866
1. Reporting Period
Report for the financial year end
Previous corresponding reporting period
30 June 2019
30 June 2018
2. Results for announcement to the market
Revenue from ordinary activities
Profit/(loss) from ordinary activities after
tax attributable to members
Net profit/(loss) for the period attributable
to members
Percentage
increase/(decrease) over
previous corresponding
period
(18)
(5)
(5)
$
829,556
(2,054,174)
(2,054,174)
Dividends
Final dividend
Interim dividend
Amount per security
Franked amount per security
Nil
Nil
Nil
Nil
Record date for determining entitlements to
dividend
Not applicable
Brief explanation of any of the figures reported above necessary to enable the figures to be
understood
Reduction in R & D that is claimable for tax rebate in 2016 reduced tax rebate in 2017. Reduction in costs. Company focus was on R & D
and limited marketing.
3. Income
Statement
Refer to Attachment A
4. Balance Sheet Refer to Attachment A
5. Statement of
Changes in
Equity
6. Cash Flow
Statement
Refer to Attachment A
Refer to Attachment A
Page 1 of 2
7. Dividends
Date dividend is payable
Record date to determine entitlement to the dividend
Amount per security
Total dividend
Amount per security of foreign sourced dividend or distribution
Details of any dividend reinvestment plans in operation
The last date for receipt of an election notice for participation in any
dividend reinvestment plans
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
8. Statement of retained earnings
Consolidated Entity
Balance at the beginning of the year
(101,563,734)
(99,404,643)
2019
2018
Net profit attributable to members of the parent
entity
Transfer from option reserve
Balance at end of the year
9. Net tangible assets per security
Net tangible asset backing per ordinary
security
(2,054,174)
(2,159,091)
485,538
(103,132,370)
(101,563,734)
Current period
Previous
corresponding
period
$0.0005
$0.0009
10. Details of entities over which control has been gained or lost
during the period
Not applicable
11. Details of associated and joint venture entities
Name of associate or joint venture entity
PeriCoach Pty Ltd
% Securities held
100
Page 2 of 2
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF ANALYTICA LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2019 there has
been:
i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001
in relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
Bentleys Brisbane Partnership
Chartered Accountants
Ashley Carle
Partner
Brisbane
22 August 2019
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ANALYTICA LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Analytica Limited (The Company and its subsidiary, together, the
“Group”), which comprises the consolidated statement of financial position as at 30 June 2019 and the
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and other explanatory information, and the
director’s declaration.
In our opinion:
a.
the consolidated financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the Australian
Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (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.
Material Uncertainty Related to Going Concern
Without modifying our opinion, we draw attention to Note 1v in the financial report, which indicates that
Analytica Limited will be required to raise additional funds to meet forecast cash needs. These
conditions, along with other matters as set forth in Note 1v, indicate the existence of a material
uncertainty that may cast significant doubt about the ability to continue as a going concern and therefore,
Analytica Limited may be unable to realise its assets and discharge its liabilities in the normal course of
business.
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. In addition to the matter described in the ‘Material Uncertainty
Relating to Going Concern’ section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ANALYTICA LIMITED
(Continued)
Key Audit Matter
Accounting For and Disclosure of Options
We focused on this area as a key audit
matter due to:
How Our Audit Addressed the Key Audit Matter
Our procedures included, amongst others:
•
inherent complexity and
• Options, including the movements in option
holdings, option expenditure and option
reserves are material in nature and can
have a material dollar value impact on the
financial report.
level of
The
judgment involved in correctly valuing and
accounting for options, especially in regard
to unlisted options.
The
for
adequate and appropriate disclosure of
options
the
in
remuneration report.
the financial report and
importance and
requirement
•
• Verifying the completeness of options on issue
with reference to ASX announcements and other
third party supporting information.
Testing the valuation of options by agreeing to
valuation reports completed by
independent
valuers.
•
• Checking vesting calculations and correct
accounting for options in accordance with AASB
2 Share-based Payment.
• Ensuring
the disclosure of options
the
financial report was adequate and appropriate,
verifying movements
to relevant
supporting information.
in options
in
Existence and Valuation of Inventory
We focused on this area as a key audit
matter due to:
Our procedures included, amongst others:
risk of
impairment due
• Analytica’s inventory is a material balance
on the statement of financial position, and is
at high
to
technological obsolescence.
In recent years Analytica has impaired the
overall
inventory balance by material
amounts as a result of impairment reviews
conducted by Analytica’s management and
Audit.
•
• A significant amount of Analytica’s inventory
is held by third parties.
•
• Verifying the existence of inventory by agreeing
the client’s year end balances and records to
third party confirmations from those entities that
inventory on Analytica’s behalf. Those
hold
entities performed stocktakes at 30 June 2019,
and we obtained copies of these stocktake
reports.
for
Testing
impairment and write offs recorded during the
year, based on our knowledge of the client and
risk of
the specific
obsolescence. Where
indicators
were noted, further enquiries were made with
management and
recalculation of potential
impairment was compared to the provision in the
financial report.
items at
impairment
the adequacy of
the provision
inventory
• Ensuring
the accuracy of
the Analytica’s
inventory records by checking that the correct
cost per unit was applied to inventory on hand at
year end. Given
there has been minimal
purchases in recent times, the applied cost per
unit was compared to the rates applied in the
prior year.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ANALYTICA LIMITED
(Continued)
Key Audit Matter
Existence and Valuation of Intangibles – Patents and Trademarks
We focused on this area as a key audit
matter due to:
Our procedures included, amongst others:
How Our Audit Addressed the Key Audit Matter
•
•
•
Intangibles being material in nature and
having a material dollar value impact on the
financial report.
• Verifying on a substantive basis the existence
and cost of eligible expenditure on patents and
trademarks.
inherent complexity and
The
level of
judgment involved in correctly accounting
for intangibles like patents and trademarks.
The potential risk of impairment, given the
intangibles relate to hi-tech products.
• Verifying
the capitalisation of costs
that
to patents and
in
trademarks was
relation
relevant
completed
recognition and measurement requirements of
Australian accounting standards.
accordance with
in
• Challenging management’s impairment review
and overall assessment of the fair value of
intangibles recognised at year end.
Information Other than the Financial Report and Auditor's Report Thereon
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2019, but does not include the financial
report and our auditor's report thereon.
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 Group are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group 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 Group or to cease
operations, or have no realistic alternative but to do so.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ANALYTICA LIMITED
(Continued)
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 Standards 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.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors' use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor's report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor's report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ANALYTICA LIMITED
(Continued)
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 14 to 24 of the directors' report for the year
ended 30 June 2019.
In our opinion, the Remuneration Report of Analytica Limited, for the year ended 30 June 2019, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of Analytica Limited 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 Standards.
Bentleys Brisbane Partnership
Chartered Accountants
Ashley Carle
Partner
Brisbane
22 August 2019