ACADEMIES AUSTRALASIA GROUP LIMITED
ANNUAL REPORT 2019
ACN 000 003 725
ACADEMIES AUSTRALASIA GROUP LIMITED
ANNUAL REPORT 2019
CONTENTS
Page
Report of the Chairman and the Group Managing Director and CEO
Directors’ Report
Information on the Directors and Company Secretaries
Information on Senior Executives
Remuneration Report - Audited
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Financial Statements
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes
Directors’ Declaration
Independent Auditor’s Report
Additional Information for Listed Public Companies
Corporate Information
Glossary
- 1 -
2
5
8
10
10
12
13
14
15
16
17
18
49
50
56
58
59
REPORT OF THE CHAIRMAN AND THE GROUP MANAGING DIRECTOR AND CEO
Dear Shareholder
We are very pleased to present your Company’s results for FY19. Indeed, we are particularly delighted to report:
-
-
-
a 34% increase in EBITDA after adjustment for significant items, compared to FY18, making FY19’s
performance by far the best in your Company’s 111 years of operation;
that your Company repaid all its bank borrowings in June 2019 and continues to be debt-free; and
the declaration of a fully-franked 2.37 cents final dividend to take the total dividend for the financial
year to 3.67 cents per share.
EBITDA after adjustment for significant items ($’000)
EBITDA
Gain from sale of shares
Redundancies
Impairment of receivables
Other restructure/non- recurring costs
EBITDA after adjustment for significant items
FY19
7,926
-
136
1,241
-
9,303
FY18
7,456
(1,527)
540
513
(40)
6,942
+34%
[Note:‘EBITDA’ and ‘significant item’ are not terms prescribed by the Australian Accounting Standards
(‘AAS’). The directors consider that ‘EBITDA after adjustment for significant items’ provides a better
understanding of the underlying performance of the business.]
FY19 improvements on FY18
- Revenue from ordinary activities
- Profit from ordinary activities before tax
- Profit from ordinary activities after tax
- EBITDA
Up 8% to $66.35 million
Up 10% to $6.71 million
Up 8% to $4.81 million
Up 6% to $7.93 million
- EBITDA after adjustment for significant items
Up 34% to $9.30 million
- Net assets
- Net cash at 30 June
- Net operating cash flows
Up 1% to $37.23 million
Up 16% to $15.00 million
Up 114% to $7.99 million
- 2 -
Operations and Outlook
In FY18, we reported a $5.75 million (30%) decline in revenue from our domestic business (compared to FY17).
We were not optimistic about business from this sector. We were not wrong. FY19 showed a further drop – of
$0.91 million (7%) to $12.41 million.
The recently re-elected Federal Government has made positive statements about the need for more attention to
be given to VET training for domestic students. We agree; for too long, university has been promoted as the
better destination. However, one cannot assume that if VET studies are going to be promoted, there will be a
level playing field – with subsidies or incentives for government, but not independent, education institutions.
Let’s see.
We are still positive about the strength of the international education market. For FY19, this sector’s contribution
to Australian exports was a record $37.7 billion, a 15.5% growth from FY18. Our numbers saw a $5.85 million
(12%) growth from FY18, to $53.65 million. Yes, there are comments about risks and expected decline in
student numbers from the People’s Republic of China (‘China’). But there’s a positive feature too: The on-going
trade war between the United States of America and China has adversely affected the external value of the
Australian Dollar. That should be positive for our export business. We see the sector as continuing to be strong,
though not necessarily with the double-digit growth of the past 4 years.
There is another relevant point to note. For several years we have raised the need for a long-term road map
outlining national targets, to facilitate better coordination amongst all the participants in the international
education sector and address many issues that have nagged this sector for a long time. International education
is, after all, Australia’s second largest export sector, after minerals. Continuing short-termism is imprudent and
unwise. Our experience with the speed of government action, however, warns us not to hold our breath.
Bank Borrowings
In June we repaid the last of our bank borrowings and continue to be debt-free. It was no easy task, considering
that at its height 4 years ago, our bank borrowings were $15.5 million.
Dividend
The fully-franked final dividend of 2.37 cents per share will be paid on 11 October 2019. That will take the total
dividends for FY19 to a fully-franked 3.67 cents per share - a 59% increase on FY18’s 2.5 cents, also fully-
franked.
In our last report, we said that it is the Board’s intention to, generally, adopt a dividend payout ratio of 75%. This
intention has not changed. The 100% payout ratio in respect to FY19 performance should be considered in the
context of your Company’s strong cash position and the objective to maximise shareholders’ access to franking
credits.
Shares
On 22 August 2018, your Company bought-back and cancelled 4,139,612 shares, bringing the total outstanding
shares on issue to 127,614,467.
- 3 -
Priorities for FY20
We will be looking to continue to grow our international operations – teaching international students in Australia
as well as overseas – which now accounts for 81% of our revenue from services. Secondly, we will be continuing
with further improving financial discipline and implementing cost savings measures.
Acknowledgement
The Board acknowledges the commitment and contribution of all members of management and staff who
produced the second year of record results in an environment that was not easy. We also appreciate the loyalty
and support of all shareholders, students, clients, partners, associates and other stakeholders. We thank you all.
Dr John Lewis Schlederer
Chairman
28 August 2019
Christopher Elmore Campbell
Group Managing Director and CEO
- 4 -
DIRECTORS’ REPORT
Your Directors present their report on Academies Australasia Group Limited (the Company) and its controlled
entities (jointly the Group) for the year ended 30 June 2019.
DIRECTORS
The names of Directors in office at any time during, or since the end of, the financial year are:
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
All Directors have been in office since the start of the financial year to the date of this report.
Details on the Directors and Company Secretaries are set out on pages 8 and 9.
PRINCIPAL ACTIVITY
The principal activity of the Group during the financial year was the provision of training and education services.
CONSOLIDATED RESULT
The consolidated profit of the Group for the financial year, after providing for income tax, amounted to
$4,805,000 (2018:$4,454,000).
REVIEW OF OPERATIONS
Revenue from services increased by 8% to $66,056,000 (2018: $61,120,000).
Profit from ordinary activities before income tax increased by 10% to $6,706,000 (2018: $6,120,000).
Earnings before interest, tax, depreciation and amortisation (EBITDA) was $7,926,000 (2018:$7,456,000)
The following table presents EBITDA after adjustment for significant items.
EBITDA
Gain from sale of shares
Redundancies
Impairment of receivables
Other restructure/non- recurring costs
EBITDA after adjustment for significant items
FY19
7,926
-
136
1,241
-
9,303
FY18
7,456
(1,527)
540
513
(40)
6,942
+34%
- 5 -
[Notes
a. ‘EBITDA’ and ‘significant item’ are not terms prescribed by the Australian Accounting Standards
(‘AAS’). The Directors consider that ‘EBITDA after significant items’ provides a better understanding
of the underlying performance of the business.
b.
Impairment of receivables: In November 2018, the Group announced a provision of $1,300,000 for
accrued debtors, which led to an impairment of $1,241,000. Ninety five percent of the $1,241,000
($1,175,000), was in respect to SPT which was acquired in June 2014. Most of the write-off was for
debts incurred prior to FY19. About 52% ($613,000) of the $1,175,000 was for SPT students enrolled
between 2003 and 2014.]
Dividends
A fully franked dividend of 1.0 cent per share ($1,276,000) was paid on 19 October 2018.
A fully franked dividend of 1.3 cents per share ($1,659,000) was paid on 28 February 2019.
The Directors have announced the payment of a fully franked dividend of 2.37 cents per share ($3,024,000) to
be paid on 11 October 2019.
SELECTIVE REDUCTION OF CAPITAL
Following approval at an Extraordinary General Meeting convened for the purpose, the Company bought back
and cancelled 4,139,612 shares at the price of 35 cents per share. After that cancellation there are 127,614,467
shares on issue.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the Company’s state of affairs during the financial year.
EVENTS AFTER THE REPORTING DATE
There were no matters or circumstances that have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state of
affairs of the Group in subsequent financial years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
Please refer to the Report of the Chairman and the Group Managing Director and CEO (Pages 2 to 4).
ENVIRONMENTAL ISSUES
The Group’s operations are not subject to any significant environmental legislation.
- 6 -
INDEMNIFICATION AND INSURANCE OF OFFICERS
The Company’s constitution provides an indemnity to officers of the Company. The Company is required to
pay all costs, losses and expenses that an officer may incur by reason of any contract entered into or act or thing
done by them in the discharge of their duties except where they act dishonestly.
The Company has paid an insurance premium amounting to $21,000 in respect of a directors and officers
liability insurance policy covering the directors’ and officers’ liabilities as officers of the Company.
OPTIONS
There are no other options over unissued share capital.
ROUNDING OF AMOUNTS
The Director’s report is presented in Australian Dollars and rounded to the nearest thousand dollars in
accordance with Instrument 2016/191.
- 7 -
INFORMATION ON DIRECTORS AND COMPANY SECRETARIES
Dr John Lewis Schlederer
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
Non-executive Director, appointed 21 August 2009. Chairman since 1
January 2014.
B.Sc. (Hons), Grad. Diploma, PhD.
More than 20 years teaching experience at University of New South
Wales and TAFE NSW and many years in business.
8,600,000 shares (6.74%)
Chairman of the Board. Chairman of the Remuneration Committee.
Member of the Audit and Risk Committee.
None
Christopher Elmore Campbell Group Managing Director and Chief Executive Officer, appointed 1
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
Chiang Meng Heng
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
July 1996.
B.Soc.Sci. (Hons), FFin, FAICD, FCIS, FSCA.
Experience in mergers and acquisitions and more than 19 years’
experience in managing educational institutions. Previous positions
include senior appointments with the Monetary Authority of Singapore
and an international bank in Australia.
Director, Asia Society Australia.
17,750,000 shares (13.91%)
Member of the Remuneration Committee.
None.
Non-executive Director, appointed 15 February 2000.
BBA (Hons).
Previous positions include Treasurer, Citibank NA, Singapore and
Hong Kong; Adviser & Head, Banking Supervision, Monetary
Authority of Singapore; EVP, Overseas Union Bank Ltd including
secondments as Executive Director, International Bank of Singapore
Ltd and President, Asia Commercial Bank Ltd; Managing Director,
First Capital Corporation Ltd; Executive Director, Far East
Organization and Group Managing Director, Lim Kah Ngam Ltd.
Member of Singapore Parliament for 4 terms from 1985 to 2001.
51,185,961 shares (40.11%)
Member of the Audit and Risk Committee and Remuneration
Committee.
None.
- 8 -
Gabriela Del Carmen
Rodriguez Naranjo
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
Sartaj Hans
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
COMPANY SECRETARIES
Directorships
Deputy Group Managing Director and Group Chief Operating Officer.
Appointed Executive Director, 21 October 2013.
Alternate Director, 10 May 2011 to 31 December 2013, (Alternate to
Neville Thomas Cleary (Retired 31 December 2013)). Appointed
Chief Operating Officer on 15 August 2017 and Deputy Group
Managing Director on 1 January 2019.
B. Comp.Sci, B.Sci. Sys. Eng.
Joined the Group in April 2001. More than 18 years’ experience
in
managing
acquisitions, marketing,
curriculum
development and lecturing.
Director, IHEA from 17 May 2017. Deputy Chairman of IHEA since
29 May 2019.
80,549 shares (0.06%)
Group Chief Operating Officer from 15 August 2017. Joint Company
Secretary from 14 September 2016.
None
compliance,
institutions,
educational
experience
regulatory
including
Independent, Non-executive Director, appointed 19 October 2016.
B.E. Honours (Electronics)
Experience in information technology and superannuation at BT
Financial Group, the wealth management arm of Westpac. A pivotal
role in the development of Goulburn Health Hub, a medical facilities
project in Goulburn. Many years experience in managing investments
and financial affairs in private family companies.
788,929 shares (0.62%)
Chairman of the Audit and Risk Committee (Appointed 19 October
2016).
None
Stephanie Noble
Qualifications
Experience
Other Responsibilities
Appointed 27 November 2006
BA (Hons) Accounting, FCCA (UK), CPA (Australia).
More than 10 years as Company Secretary of Academies
Australasia Group Limited.
Group Finance Manager.
Gabriela Del Carmen
Rodriguez Naranjo
Appointed 14 September 2016
See Information on Directors.
- 9 -
MEETINGS OF DIRECTORS
Director
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
Directors’
Meetings
Audit and Risk
Committee
Remuneration
Committee
A
6
6
6
6
6
B
6
6
5
6
6
A
2
2
2
2
2
B
2
2
2
2
2
A
2
2
2
-
-
B
2
2
2
-
-
A - Number of meetings held during the time the Director held office during the period
B - Number of meetings attended
INFORMATION ON SENIOR EXECUTIVES
Christopher Elmore Campbell
Group Managing Director and Chief Executive Officer.
See Information on Directors.
Gabriela Del Carmen Rodriguez
Naranjo
Deputy Group Managing Director and Group Chief Operating
Officer.
See Information on Directors.
REMUNERATION REPORT – AUDITED
Remuneration Policies
The Remuneration Committee reviews and makes recommendations to the Board on remuneration packages and
policies applicable to the Group Managing Director and Chief Executive Officer, Senior Executives and the
Directors themselves. This role also includes responsibility for share option schemes, performance incentive
packages, superannuation entitlements, retirement and termination entitlements, fringe benefit policies and
professional indemnity and liability insurance policies. Remuneration levels are set to attract appropriately
qualified and experienced directors and senior executives.
During the year, the members of the Remuneration Committee were Dr John Lewis Schlederer, Chiang Meng
Heng and Christopher Elmore Campbell.
All executives receive a fixed base salary, which is based on factors such as market factors and experience, and
superannuation (as required by law). Executives may sacrifice part of their salary towards superannuation.
The Company does not have an employee share option plan.
All remuneration paid to Directors and Executives is valued at the cost to the Company and expensed.
Non-executive Directors’ remuneration comprises fixed fees. The maximum aggregate amount of fees that can
be paid to Non-executive Directors is subject to approval by shareholders at the Annual General Meeting. The
amount approved at the 2009 Annual General Meeting is $250,000 per annum. Fees for Non-executive Directors
are not linked to the performance of the Group.
- 10 -
Directors and Senior Executives
Details of the Directors and Senior Executives holding office at any time during the financial year are set out on
pages 8 to 10.
a. Remuneration
30 June 2019 Directors and Senior
Executives
Short-term employee benefits
Bonus
Cash, salary
and
commissions
Non-
monetary
benefits
Post- employment
benefits
Superannuation
Total
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
$000s
$000s
$000s
$000s
$000s
36
422
36
261
45
800
-
-
-
-
-
-
-
-
-
-
-
-
26
28
3
25
4
86
62
450
39
286
49
886
30 June 2018 Directors and Senior
Executives
Short-term employee benefits
Bonus
Cash, salary
and
commissions
Non-
monetary
benefits
Post- employment
benefits
Superannuation
Total
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
$000s
$000s
$000s
$000s
$000s
30
430
32
207
40
739
-
-
-
10
-
10
-
-
-
-
-
-
25
20
3
20
4
72
55
450
35
237
44
821
None of the remuneration paid to any Director or Senior Executive is tied to any specific performance condition.
b. Options issued as part of remuneration for the year ended 30 June 2019
The Group has no employee share plan. No options were granted as part of remuneration.
c. Employment contracts of Executives
The employment conditions of all executives are formalised in written contracts of employment. Generally, the
employment contracts stipulate a one-month notice period. Termination payments are generally not payable on
resignation or dismissal for serious misconduct. In the instance of serious misconduct the company can terminate
employment at any time.
With respect to senior executives, Christopher Elmore Campbell has a fixed term contract of employment which
expires on 31 December 2020, and Gabriela Del Carmen Rodriguez Naranjo has a fixed term contract of
employment which expires on 31 December 2021.
- 11 -
AUDITORS’ INDEPENDENCE DECLARATION
The Auditor’s Independence Declaration for the year ended 30 June 2019 appears on page 13. It forms part of
the Directors’ Report for the year ended 30 June 2019.
NON-AUDIT SERVICES
The Board of Directors, in accordance with advice from the Audit and Risk Committee, is satisfied that the
provision of non-audit services by the external auditors, Pilot Partners, during the year is compatible with the
general standard of independence of auditors imposed by the Corporations Act 2001. The Directors are satisfied
that the services disclosed below did not compromise the external auditors’ independence for the following
reasons:
All non-audit services are reviewed and approved by the Audit and Risk Committee.
The nature of services provided does not compromise the general principles relating to audit
independence.
The following fees were paid or payable for non-audit services to the external auditors during the year ended
30 June 2019:
Taxation services
Other services
$36,000
$27,000
(2018: $66,000)
(2018: $43,000)
CORPORATE GOVERNANCE STATEMENT
The Company’s Corporate Governance Statement and its Key to Disclosures, Corporate Governance Council
Principles and Recommendations (ASX Appendix 4G) are provided to ASX together with the Company’s
Annual Report. The Corporate Governance Statement is on the Company’s website: www.academies.edu.au
Signed in accordance with a resolution of the Board of Directors pursuant to section 298 (2)(a) of the
Corporations Act 2001.
Dr John Lewis Schlederer
Director
28 August 2019
Christopher Elmore Campbell
Director
- 12 -
piloP
AUDITOR'S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
ACADEMIES AUSTRALASIA GROUP LIMITED
PILOT PARTNERS
Chartered Accountants
Level 10, Waterfront Place
1 Eagle St. Brisbane 4000
PO Box 7095 Brisbane 4001
Queensland Australia
P+61 7 3023 1300
F+61 7 3229 1227
pilotpartners. com. au
I declare that to the best of my knowledge and belief, during the year ended 30 June 2019,
there have been:
i.
no contraventions of the auditor's 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.
?iM Pdjki^
PILOT PARTNERS
Chartered Accountants
DANIEL GILL
Partner
Signed on 28 August 2019
Level 10
1 Eagle Street
Brisbane QId 4000
A member of
iNexia
ABN 60 063 687 769 I Pilot is a registered trade mark licensed to Pilot Partners I Liability limited by a scheme approved under Professional Standards Legislation
Nexia International is a worldwide network of independent accounting and consulting firms.
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2019
Note 2019
$000s
2018
$000s
Revenue from services
Student acquisition and teaching costs
Gross profit
Personnel expenses
Premises expenses
Other administration expenses
Restructure and non-recurring costs
Realised gain on investments
Other income
Earnings before interest, depreciation and amortisation
Depreciation and amortisation expense
Loss on disposal of assets
Interest paid
Interest received
Profit before income tax
Income tax expense
Profit for the year
Other comprehensive income:
Exchange differences on translating foreign controlled entities
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Profit attributable to:
Owners of the parent entity
Non-controlling interests
Total comprehensive income attributable to:
Owners of the parent entity
Non-controlling interests
Earnings per share (cents per share)
Basic
Diluted
Dividends per share (cents)
The accompanying notes form part of these financial statements.
- 14 -
2
3
3
3
3
3
2
4
7
7
8
66,056
(29,191)
36,865
(14,067)
(9,752)
(3,886)
9,160
(1,377)
7,783
-
143
7,926
(1,119)
-
(250)
149
6,706
(1,901)
4,805
39
39
4,844
4,708
97
4,805
4,747
97
4,844
3.67
3.67
2.37
61,120
(26,522)
34,598
(14,303)
(9,396)
(3,962)
6,937
(1,061)
5,876
1,527
53
7,456
(1,005)
(10)
(432)
111
6,120
(1,666)
4,454
13
13
4,467
4,270
184
4,454
4,283
184
4,467
3.30
3.30
2.00
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2019
Note
2019
2018
$000s $000s
14,996
4,186
6,465
25,647
1,772
6,026
3,906
32,850
44,554
70,201
20,660
4,165
534
-
3,613
28,972
-
3,996
3,996
32,968
37,233
42,066
(5,315)
107
375
37,233
12,968
7,557
6,094
26,619
2,180
6,717
4,014
32,973
45,884
72,503
19,125
4,661
2,367
1,069
2,443
29,665
201
5,779
5,980
35,645
36,858
43,515
(7,088)
68
363
36,858
Current Assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total Current Assets
Non-Current Assets
Trade and other receivables
Plant and equipment
Deferred tax assets
Intangible assets
Total Non-Current Assets
Total Assets
Current Liabilities
Tuition fees in advance (Deferred income)
Trade and other payables
Current tax liabilities
Borrowings
Provisions
Total Current Liabilities
Non-Current Liabilities
Borrowings
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Share capital
Accumulated losses
Foreign currency translation reserve
Non-controlling interests
Total Equity
The accompanying notes form part of these financial statements.
9
10
11
10
13
14
15
16
16
4
17
18
17
18
19a
- 15 -
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2019
Ordinary
Shares
Share
Option
Reserve
Retained
Profits
Reserves
Non -
Controlling
Interests
Total
$000s
$000s
$000s
$000s
$000s
$000s
Year ended 30 June 2018
43,515
Profit for the period
Exchange differences on translating
foreign operations
Total comprehensive income for
the year
Share buy back and cancellation
Dividend paid
Balance at 30 June 2019
-
-
-
(1,449)
-
42,066
-
-
-
-
-
-
-
Year ended 30 June 2017
42,677
88
Profit for the period
Exchange differences on translating
foreign operations
Total comprehensive income for
the year
Issue share capital
Share option
Acquisition of subsidiaries
Dividend paid
-
-
-
750
88
-
-
Balance at 30 June 2018
43,515
-
-
-
-
(88)
-
-
-
(7,088)
4,708
-
4,708
-
(2,935)
(5,315)
(8,748)
4,270
-
4,270
-
-
-
(2,610)
(7,088)
68
-
39
39
-
-
107
55
-
13
13
-
-
-
-
68
363
97
36,858
4,805
-
39
97
-
(85)
375
4,844
(1,449)
(3,020)
37,233
206
184
34,278
4,454
-
13
184
4,467
-
-
(27)
750
-
(27)
-
(2,610)
363
36,858
The accompanying notes form part of these financial statements.
- 16 -
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2019
Note
2019
$000s
2018
$000s
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Dividend received
Interest received
Finance costs
Income taxes paid
70,027
(58,307)
-
149
(250)
(3,626)
63,327
(58,339)
48
111
(432)
(981)
Net cash provided by (used in) operating activities
23a
7,993
3,734
Cash Flows from Investing Activities
Proceeds from sale of plant & equipment
Purchase of plant & equipment
Proceeds from sale of investment
Net cash on acquisition/disposal of subsidiaries
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities
Dividends paid
Repayment of borrowings
Proceeds from share issue
Payment for share buy back
Net cash provided by (used in) financing activities
Net increase in cash held
Net cash at the beginning of the financial year
Net cash at the end of the financial year
9
2
(280)
-
-
(278)
(2,968)
(1,270)
-
(1,449)
(5,687)
2,028
12,968
14,996
-
(429)
4,581
819
4,971
(2,610)
(3,497)
750
-
(5,357)
3,348
9,620
12,968
The accompanying notes form part of these financial statements.
- 17 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
This financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board (AASB) and the Corporations Act 2001.
The financial report includes the consolidated financial statements of Academies Australasia Group Limited
and controlled entities (the Group). Details of the parent entity can be found in Note 27.
Academies Australasia Group Limited is a listed public company, incorporated and domiciled in Australia.
The Group is a for profit entity for financial reporting purposes under Australian Accounting Standards which
set out accounting policies that the AASB has concluded would result in a financial report containing relevant
and reliable information about transactions, events and conditions. Compliance with Australian Accounting
Standards ensures that the financial statements and notes also comply with International Financial Reporting
Standards. Material accounting policies adopted in the preparation of this financial report are presented below
and have been consistently applied unless otherwise stated.
The financial statements were authorised for adoption on 28 August 2019.
New, revised or amending Accounting Standards and Interpretations
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the AASB that are mandatory for the current reporting period.
AASB 9: Financial Instruments (applicable to annual reporting periods beginning on or after 1 January
2019).
AASB 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some
contracts to buy or sell non-financial items. AASB 9 contains three principal classification categories for
financial assets: measured at amortised cost, fair value through other comprehensive income (FVOCI) and fair
value through profit and loss (FVTPL). The classification of financial assets under AASB 9 is based on the
business model in which a financial asset is managed and its contractual cash flow characteristics. AASB 9
eliminates or re-names the previous AASB 139 categories of held to maturity, loans and receivables and
available for sale.
The Group performed a detailed assessment of the impact of the application of AASB 9 on its financial
statements. Apart from the application of the expected credit loss impairment model, there are no deviations
in the current classification of financial assets as they are in line with AASB 9. There is also no impact on the
Group’s accounting for financial liabilities, as the new requirements only affect the accounting for financial
liabilities that are designated at fair value through profit or loss and the Group does not have any such liabilities.
- 18 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The following table presents the original measurement categories under AASB 139 and the new measurement
categories under AASB 9 for each class of the Group’s financial assets and financial liabilities as at 1 July
2018. Any change in the allowance for impairment over these receivables were also assessed.
Classification and measurement of financial assets and financial liabilities ($000’s) (1 July 2018)
Financial
assets
Cash and cash
Equivalents
Trade and other
receivables
Contract assets
Total financial
assets
Financial
liabilities
Trade and other
payables
Borrowings
Total financial
liabilities
Allowance for
expected credit
losses
Original
classification
under AASB 139
Loans and
receivables
Loans and
receivables
Loans and
receivables
Note
9
10
11
New
classification
under AASB 9
Amortised
Cost
Amortised
Cost
Amortised
Cost
16
17
Other financial
liabilities
Other financial
liabilities
Amortised
Cost
Amortised
Cost
Original carrying
amount under
AASB 139
New carrying
amount under
AASB 9
12,968
12,968
7,150
2,140
7,150
2,140
22,258
22,258
(4,661)
(1,270)
(5,931)
(4,661)
(1,270)
(5,931)
(588)
(588)
AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019).
When effective, this Standard will replace the current accounting requirements applicable to leases in AASB
117: Leases and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates
the requirement for leases to be classified as operating or finance leases.
The main changes introduced by the new Standard include:
-
recognition of a right-to-use asset and liability for all leases (excluding short-term leases with less than
12 months of tenure and leases relating to low-value assets);
- depreciation of right-to-use assets in line with AASB 116: ‘Property, Plant and Equipment’ in profit or
loss and unwinding of the liability in principal and interest components;
- variable lease payments that depend on an index or a rate are included in the initial measurement of the
lease liability using the index or rate at the commencement date;
- by applying a practical expedient, a lessee is permitted to elect not to separate non-lease components
and instead account for all components as a lease; and
- additional disclosure requirements.
- 19 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to
comparatives in line with AASB 108 or recognise the cumulative effect of retrospective application as an
adjustment to opening equity on the date of initial application.
During the course of the year work has been completed to quantify the impact of the change.
Based on the current leases held in the portfolio, and which will continue to be held by the Group at the date
of application of the standard, the Group has initially estimated the following impact on the financial
statements for the year ended 30 June 2020.
Consolidated Statement of Financial Position ($000’s) (1 July 2019)
Increase in Right of Use Assets
Increase in Lease Liabilities (Current)
Increase in Lease Liabilities (Non- Current)
Decrease of Lease Incentives Recognised
Increase in Deferred Tax Asset
Cumulative Impact on Retrospective
Application of Standard to Opening Retained
Earnings
DR
18,012
CR
2,713
1,870
1,653
Consolidated Statement of Comprehensive Income ($000’s) (30 June 2020)
DR
CR
Increase in Depreciation Expense
Increase in Interest Expense
Decrease in Premises Expenses
Profit Before Tax Increase / (Reduction)
4,267
1,712
(305)
3,539
20,709
5,674
Bases of preparation
The financial report has been prepared on the accruals basis and is based on historical costs, modified by the
revaluation of certain non-current assets, financial assets and financial liabilities, for which the fair value basis
of accounting has been applied. The financial report is presented in Australian Dollars and rounded to the
nearest thousand dollars in accordance with Instrument 2016/191.
- 20 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Accounting Policies
Basis of consolidation
a.
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent
(Academies Australasia Group Limited) and all its subsidiaries (including any structured entities). Subsidiaries
are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over
the entity. A list of the subsidiaries is provided in Note 12.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the
Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or
losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies of
subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting
policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-
controlling interests”. The Group initially recognises non-controlling interests that are present ownership
interests in subsidiaries and are entitled to a proportionate share of the subsidiary’s net assets on liquidation at
either fair value or at the non-controlling interests’ proportionate share of the subsidiary’s net assets.
Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and each
component of other comprehensive income. Non-controlling interests are shown separately within the equity
section of the statement of financial position and statement of comprehensive income.
Business combinations
b.
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisiton method, unless it is a combination
involving entities or businesses under common control. The business combination is accounted for from the
date that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including
contingent liabilities) assumed is recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from
a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent
consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
equity. Contingent consideration classified as an asset or liability is remeasured each reporting period to fair
value, recognising any change to fair value in profit or loss, unless the change in value can be identified as
existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the statement of
comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
- 21 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Cash and cash equivalents
c.
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of one month or less, and bank overdrafts. Bank overdrafts are shown
within short-term borrowings in current liabilities on the balance sheet.
Trade and other receivables
d.
Trade and other receivables include amounts due from customers for services performed in the ordinary course
of business. Receivables expected to be collected within 12 months of the end of the reporting period are
classified as current assets. All other receivables are classified as non-current assets.
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost
using the effective interest method, less any provision for impairment. Refer to Note 10 for further information
on the determination of impairment losses.
e.
Financial instruments
Recognition and Initial Measurement
All financial assets and financial liabilities are initially recognised when the Group becomes a party to the
contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability
is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable
to its acquisition or issue. A trade receivable without a significant financing component is initially measured
at the transaction price.
Financial Assets – Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt investment;
FVOCI – equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business
model for managing financial assets, in which case all affected financial assets are reclassified on the first day
of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated
as at FVTPL:
– it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
– its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to
present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-
investment basis. All financial assets not classified as measured at amortised cost or FVOCI are measured at
FVTPL.
- 22 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value
basis are measured at FVTPL.
Financial liabilities – Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as
at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest
expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost
using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in
profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
Derecognition
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all
of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither
transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the
financial asset.
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or
expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the
modified liability are substantially different, in which case a new financial liability based on the modified terms
is recognised at fair value.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying
amount and the amount of the consideration received and receivable is recognised in profit and loss.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or
loss.
Fair value
Fair value is the price the Group would receive to sell an asset in an orderly transaction between independent,
knowledgeable and willing parties at measurement date. There are no financial assets or liabilities carried at
fair value.
Financial guarantees
Where material, financial guarantees are issued, which require the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due, are
recognised as a financial liability at fair value on initial recognition. The guarantee is subsequently measured
at the higher of the best estimate of the obligation and the amount initially recognised less, when appropriate,
cumulative amortisation in accordance with AASB 15: ‘Revenue from Contracts with Customers’. Where the
entity gives guarantees in exchange for a fee, revenue is recognised under AASB 15.
- 23 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The fair value of financial guarantee contracts has been assessed using a probability weighted discounted cash
flow approach. The probability has been based on:
-
-
-
the likelihood of the guaranteed party defaulting in a year period;
the proportion of the exposure that is not expected to be recovered due to the guaranteed party
defaulting; and
the maximum loss exposed if the guaranteed party were to default.
Interest borrowing costs
Interest payable costs are recognised as expenses in the period in which they are incurred.
Leases
f.
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but
not the legal ownership, are transferred to entities in the Group, are classified as finance leases. Finance leases
are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the
leased property or the present value of the minimum lease payments, including any guaranteed residual values.
Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the
period. Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or
the lease term.
Operating lease rental payments are recognised on a straight line basis over the lease term and contingent rental
payments are recognised in the period when incurred.
Assets receivable under lease incentives are recognised when the Group has a contractual right to them and
they can be reliably estimated. Where applicable, specific categories of assets received under such
arrangements are recognised in the appropriate asset heading and accounted for in accordance with the Group’s
applicable accounting policy for that asset.
Lease incentives under operating leases are recognised as a liability and amortised as a reduction in rent on a
straight-line basis over the lease term, unless another systematic basis is more representative of the time pattern
in which the economic benefits from the leased asset are consumed.
Leasehold improvements and plant and equipment
g.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of
the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net
cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash
flows have been discounted to their present values in determining recoverable amounts.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.
- 24 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Depreciation
h.
The depreciable amount of all fixed assets including capitalised lease assets is depreciated on a straight-line or
a diminishing value basis over their useful lives to the Group commencing from the time the asset is held ready
for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or
the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Leasehold improvements
Plant and equipment
Leased plant and equipment
Depreciation Rate
12.5 – 22.5%
5 – 67%
5 – 25%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by
comparing proceeds with the carrying amount. These gains and losses are included in the statement of
comprehensive income.
Goodwill
i.
Goodwill is carried at cost less accumulated impairment losses. Goodwill is calculated as the excess of the sum
of:
-
-
-
the consideration transferred;
any non-controlling interest; and
the acquisition date fair value of any previously held equity interest
over the acquisition date fair value of net identifiable assets acquired.
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition
date fair value of any previously held equity interest shall form the cost of the investment in the separate
financial statements.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive
income. Where changes in the value of such equity holdings had previously been recognised in other
comprehensive income, such amounts are recycled to profit or loss.
The amount of goodwill recognised on acquisition of each subsidiary in which the Group holds less than a
100% interest will depend on the method adopted in measuring the non-controlling interest.
- 25 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
i. Goodwill (continued)
The Group can elect in most circumstances to measure the non-controlling interest in the acquiree either at fair
value (full goodwill method) or at the non-controlling interest’s proportionate share of the subsidiary’s
identifiable net asets (proportionate interest method). In such circumstances, the Group determines which
method to adopt for each acquisition and this is stated in the respective notes of these financial statements
disclosing the business combination.
Under the full goodwill method, the fair value of the non-controlling interest is detemined using valuation
techniques which make the maximum use of market information where available. Under this method, goodwill
attributable to the non-controlling interests is recognised in the consolidated financial statements.
Goodwill on acquisitions of subsidiaries is included in intangible assets.
Goodwill is tested for impairment annually and is allocated to the Group’s cash-generating units or groups of
cash-generating units, representing the lowest level at which goodwill is monitored not larger than an operating
segment. Gains and losses on the disposal of an entity include the carrying amount of goodwill related to the
entity disposed of.
Intangible assets
j.
Intangible assets include course development costs and other intangible assets.
Course development costs are capitalised where they can be related to the development of an identifiable and
separable resource and which yields particular streams of future economic benefits. They are only capitalised
when technical feasibility studies identify that the project is expected to deliver future economic benefits and
these benefits can be measured reliably. These capitalised costs are amortised over their useful lives starting
from the time the development of a particular resource is complete and available for use. The period of
amortisation is up to 5 years.
Impairment of assets
k.
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the
recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is
compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount
is expensed to the statement of comprehensive income.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. Where it is
not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Collectibility of trade and other receivables and contract assets are reviewed on an ongoing basis. Debts are
written off when they are known to be uncollectible. An allowance for expected credit losses is raised where
some doubt as to collection exists and is the difference between the total amount owing and the amount
expected to be recovered. The Group also applies the AASB 9 simplified model of recognising lifetime
expected credit losses for receivables as these items do not have a significant financing component. An
expected credit loss allowance is recognised for the total expected loss from possible default events that may
arise over the expected life of the financial asset.
- 26 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Impairment of assets (continued)
k.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial
instrument. A credit loss is the difference between all contractual cash flows that are due and all cash flows
expected to be received, all discounted at the original effective interest rate of the financial instrument.
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or
loss in the statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to
that asset.
The Group has applied the expected credit loss model based on lifetime expected loss allowance for contract
assets.
Trade and other payables
l.
Trade and other payables represent the liabilities for goods and services received by the entity that remain
unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts
normally paid within 30 days of recognition of the liability.
Provisions and employee benefits
m.
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the balance sheet date. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees
to balance date. Employee benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later
than one year have been measured at the present value of the estimated future cash outflows to be made for
those benefits.
Issued capital
n.
Ordinary shares are classified as equity, and are recognised at the fair value of the consideration received by
the company. Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction, net of tax, from the proceeds.
- 27 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue
o.
With effect from 1 July 2014, the consolidated entity early-adopted the new Accounting Standard AASB 15
‘Revenue from Contracts with Customers’. This Standard applies to annual reporting periods beginning on or
after 1 January 2017 and it may be applied to annual reporting periods beginning on or after 1 January 2015.
The consolidated entity, in adopting the new AASB 15, changed its basis for recognising income in accordance
with that standard. The change followed analysis of the Group’s contracts with its customers, the rights and
obligations emanating from those contracts and the possible risks associated with receiving payments for
revenue generating contractual services provided by the Group. In making its assessments, the Group formed
its opinion for the appropriate accounting based on its business judgement and careful consideration of the
customer contract.
Each contract was broken down into performance obligations and revenue to be recognised as those
performance obligations are completed.
Revenue is recognised over the period of tuition, upon completion of specific performance obligations of each
of the contracts. No revenue is recognised prior to a student commencing the tuition phase of delivery. As all
student contracts are for the provision of tuition, income for tuition is recognised as training is provided.
Payment terms vary from contract to contract but in most cases, cash is received prior to the performance
obligation being delivered. International students in particular are required to pay some level of tuition in
advance. Monies received in advance are held as unearned income and recognised as revenue as the
performance obligations are satisfied. Generally, the Group’s obligations in respect of refunds cease after the
course commences.
Revenue derived from the provision of education services is measured at the fair value of consideration
received or receivable to the extent that economic benefits will flow to the Group and the revenue can be
reliably measured.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
Dividend revenue is recognised when the right to receive a dividend has been established.
Rental revenue is recognised on a straight line accrual basis over the term of the lease.
All revenue is stated net of the amount of goods and services tax (GST).
p. Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as
part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
- 28 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Income tax
q.
The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable
or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by
the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be
credited directly to equity, in which case the deferred tax is adjusted directly against equity.
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income taxation legislation and the anticipation that the Group will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law.
Academies Australasia Group Limited and its wholly-owned Australian subsidiaries have formed an income
tax consolidated group under the tax consolidation regime. The Group notified the Australian Tax Office that
it had formed an income tax consolidated group to apply from 1 July 2003.
The tax consolidated group has entered a tax sharing agreement whereby each company in the group contributes
to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated
group.
Foreign currency transactions and balances
r.
Foreign currency transactions are translated into Australian currency (the functional currency) using the
exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the
year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange
rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate
at the date when fair values were determined.
Foreign Group Companies
The financial results and position of foreign operations whose functional currency is different from the Group’s
presentation currency are translated as follows:
-
-
-
assets and liabilities are translated at year-end exchange rates prevailing at the end of the financial year;
income and expenses are translated at average rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the Group’s foreign
currency translation reserve in the statement of financial position. These differences are recognised in the
statement of comprehensive income.
- 29 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Earnings per share
s.
Basic earnings per share are calculated as net profit attributable to members of the parent divided by the
weighted average number of ordinary shares.
t. Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
u. Critical accounting estimates and judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events
and are based on current trends and economic data, obtained both externally and within the Group. These
estimates and judgements are considered significant items of revenue and expenses relevant in explaining the
financial performance.
Key Estimates – Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may
lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is
determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of
key estimates. Further details on the key estimates used in impairment can be found in Note 15. No impairment
has been recognised in respect of goodwill for the year ended 30 June 2019.
Key Estimates – Revenue
The extent to which performance obligations have been satisfied in respect of revenue is estimated as per the
revenue policy (Note 1(o)).
Key Estimates- Recoverability of Receivables
The extent to which receivables are recoverable is used in estimating any allowance for expected credit
losses.
Factors considered include:
-
-
-
-
-
the aging profile of receivables;
the recognition of a corresponding deferred income liability;
the nature of the debtor (e.g. government, business or individual);
subsequent recovery of the receivable after date; and
prior history.
v. Segment reporting
An operating segment is a component of an entity:
-
that engages in business activities from which it may earn revenues and incur expenses (including
revenues and expenses relating to transactions with other components of the same entity);
- whose operating results are regularly reviewed by the entity’s Board to make decisions about resources
to be allocated to the segment and assess its performance; and
for which discrete financial information is available.
-
The Company has only one operating segment: Education.
- 30 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
2. REVENUE
Operating activities
Revenue from services
Non-operating activities
Rent received
Dividend received
3. PROFIT FOR THE YEAR
Student acquisition and teaching costs
- Teaching costs
- Acquisition costs
- Teaching materials
Personnel costs
- Wages and Salaries
- Superannuation
- Payroll Tax
- Other
Premises
- Rental
- Electricity
- Cleaning
- Other
Other administration expenses
- Other administration expenses
- Bad and doubtful debts
Restructure and non-recurring costs
- Costs of personnel now retrenched, including redundancies
- Costs of premises now vacated, including make-good payments
- Provision for impairment of receivables
- 31 -
2019
$000s
2018
$000s
66,056
61,120
143
-
143
5
48
53
15,712
10,850
2,629
29,191
11,560
1,159
813
535
14,067
8,547
338
496
371
9,752
3,881
5
3,886
136
-
1,241
1,377
14,260
10,118
2,144
26,522
11,443
1,204
786
870
14,303
8,270
336
462
328
9,396
3,897
65
3,962
540
8
513
1,061
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
4. INCOME TAX EXPENSES
a. The components of tax expense comprise:
Current tax
Deferred tax
b. The prima facie tax on profit from ordinary activities before tax is reconciled
to income tax as follows:
Tax payable on profit from ordinary activities before tax at 30%
Add/(less):
Tax effect of:
Permanent differences
Assumption of tax balances of controlled entities
Income tax expense attributable to the entity
The effective tax rate is 28.3% (2018: 27.2%)
c. Current tax payable for the year reconciles as follows:
Opening provision
Add: Current year provision
Less: Tax paid
Closing provision
2019
$000s
2018
$000s
(1,793)
(108)
(1,901)
(2,727)
1,061
(1,666)
2,012
1,836
(47)
(64)
1,901
2,367
1,793
(3,626)
534
(58)
(112)
1,666
621
2,727
(981)
2,367
5. DIRECTORS AND SENIOR EXECUTIVES COMPENSATION
a. Details of Directors and Senior Executives, including remuneration, have been set out on pages 8 to 10.
b.
Shareholdings
Number of shares in the Company held by Senior Executives and parties related to them:
Shareholdings: Executive Directors and Senior
Executives
Balance
1 July 2018
Purchased
on ASX
Balance
30 June 2019
Christopher Elmore Campbell
Gabriela Del Carmen Rodriguez Naranjo
16,815,195
934,805
17,750,000
80,549
-
80,549
- 32 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
6. AUDITORS’ REMUNERATION
Remuneration of the auditors of the parent entity for:
- Auditing and reviewing the financial report
- Taxation services
- Other services
Remuneration of other auditors of subsidiaries for:
- Auditing and reviewing the financial report
- Taxation services
- Other services
7. EARNINGS PER SHARE
Basic (cents per share)
Diluted (cents per share)
2019
$000s
2018
$000s
307
36
27
370
39
10
-
49
3.67
3.67
260
66
43
369
34
1
-
35
3.30
3.30
Weighted average number of ordinary shares used in calculation of basic
earnings per share
128,215,561
129,233,531
The earnings amount used was $4,708,000 (2018: $4,270,000), being profit on ordinary activities after tax
attributable to owners of the parent entity.
8. DIVIDENDS
Distributions recognised:
Year ended 30 June 2019: interim ordinary dividend of 1.3 cent per share,
fully franked (2018: 1.5 cents per share, which included a one-off special
dividend of 1.0 cent )
Year ended 30 June 2018: final ordinary dividend of 1.0 cent per share,
fully franked, paid in 2019 (2018: 0.5 cents)
Dividends proposed or declared but not recognised in the financial
statements:
Proposed fully franked ordinary dividend of 2.37 cent per share (2018: fully
franked 1.0 cents)
1,659
1,976
1,276
2,935
634
2,610
3,024
1,276
Balance of franking account at year end adjusted for franking credits arising
from payment of income tax
4,951
2,787
- 33 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
9. CASH AND CASH EQUIVALENTS
Cash at bank and on hand
2019
$000s
2018
$000s
14,996
12,968
There is no overdraft balance at 30 June 2019 (2018: NIL) (Note 17). The net cash position is $14,996,000 (2018:
$12,968,000)
Included in the above amounts are tuition fees held in TPS accounts in Australia.
As at 30 June 2019, the Group held $12,019,000 (2018: $8,502,000) in TPS accounts.
(In 2012 the Education Services for Overseas Student Act 2000 (“ESOS Act”) was amended to provide additional
protection for international students studying in Australia. With effect from 1 July 2013, the Group is required to
maintain, in Australia, separate bank accounts (TPS accounts) for prepaid fees received from international students
prior to commencement of their course. Once the students commence their course, the funds may be transferred from the
TPS accounts to operating cash reserves. At all times, the Group must ensure that there are sufficient funds in the TPS
accounts to repay any prepaid tuition fees to international students who have not yet commenced their course. Fees
paid by students who have commenced their course are deposited directly to operating cash reserves. All fees received,
whether deposited to TPS or Group cash reserves are initially accounted for as unearned income, being subject to the
Group’s revenue recognition policy).
10. TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
Less allowance for expected credit losses
Other receivables
Lease incentives
NON-CURRENT
Lease incentives
TOTAL
Trade receivables
Less allowance for expected credit losses
Other receivables
Lease incentives
- 34 -
3,435
(96)
3,339
440
407
4,186
1,772
1,772
3,435
(96)
3,339
440
2,179
5,958
6,682
(588)
6,094
1,056
407
7,557
2,180
2,180
6,682
(588)
6,094
1,056
2,587
9,737
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
10. TRADE AND OTHER RECEIVABLES (continued)
a. The ageing analysis of trade receivables is as follows:
0 -30 days
31- 60 days – not impaired *
61- 90 days – not impaired *
Over 90 days – not impaired *
Past due and impaired
2019
2018
$000s
$000s
1,562
559
221
997
96
3,435
1,377
651
448
3,618
588
6,682
* These are debtors that are past due for which no collateral is held and for which no provision for doubtful debts
has been made as there has not been a significant change in credit quality and the directors believe that the
amounts are still recoverable.
b. The Group has an exposure to credit risk in Singapore and Australia given the Group’s operations in those
countries. For FY19, an amount of $146,000 is included in trade and other receivables in respect of the business
operations in Singapore. All other receivables of the Group are exposures in Australia.
c. Allowance for expected credit losses at the start of the year
Movement in expected credit losses
Allowance for expected credit losses at the end of the year
588
(442)
96
104
484
588
d. The following factors were considered when assessing credit losses, receivables and contract assets:
i. A detailed review was performed during the year and significant credit losses were recognised as impairments
(Note 3)
ii. Risk of non-recovery for a significant portion of receivables and contract assets is offset by a corresponding
deferred revenue liability (Note 16)
iii. Government debtors are assessed as low risk
iv. Significant amounts of debtors were recovered after the year end
v. Other than SPT, historical levels of bad debts have been low
Allowance for expected credit losses
Trade receivables
Contract assets
Sub-total
Corresponding amounts included in deferred income liabilities
Colleges at which credit losses have already been written off
Lower risk government debtors
Sub- total
Allowance for credit losses
Credit Loss %
$000s
3,435
3,021
6,456
(1,857)
(1,104)
(2,327)
1,168
(96)
8%
11. OTHER ASSETS
CURRENT
Contract assets
Prepayments
Security deposits
3,021
2,932
512
6,465
2,140
3,482
472
6,094
- 35 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
12. CONTROLLED ENTITIES
Academies Australasia Group Limited (Ultimate Parent Entity)
Subsidiaries (controlled directly or indirectly)
ACA Investment Holdings Pte. Limited
Academies Australasia (Management) Pty Limited
Academies Australasia College Pte. Limited
Academies Australasia Institute Pty Limited
Academies Australasia Polytechnic Pty Limited
Academies Australasia Pty Limited
Academy of English Pty Limited
AKG Investment Holdings Pty Limited
AKG2 Investment Holdings Pty Limited
AKG3 Investment Holdings Pty Limited
AKG4 Investment Holdings Pty Limited
AKG5 Investment Holdings Pty Limited
AKG6 Investment Holdings Pty Limited
AKG7 Investment Holdings Pty Limited
AMC Training Pty Limited
AMI Education Pty Limited
Australian College of Technology Pty Limited
Australian Institute of Professional Studies Pty Limited
Australian International High School Pty Limited
Australian Trades Institute Pty Limited
Benchmark Resources Pty Limited T/A Benchmark College
Centre for Australian Education Pte. Limited
Clarendon Business College Pty Limited
Academies Australasia Hair and Beauty T/A Brisbane School of Hairdressing, Gold
Coast School of Hairdressing, Brisbane School of Beauty and Brisbane School of
Barbering
CLB Training & Development Pty Limited as trustee for the CLB Unit Trust
T/A Spectra Training
Discover English Pty Limited
International College of Capoeira Pty Limited T/A College of Sports & Fitness
Humanagement Pty Limited T/A Print Training Australia
Kreate Pty Limited T/A RuralBiz Training
Language Links International Pty Limited
Live. Laugh. Learn. Pty Limited
Newco CLB Training & Development Pty Limited
Skilled Placements Pty Limited
Supreme Business College Pty Limited
Transformations – Pathways to Competence and Developing Excellence Pty
Limited T/A Skills Training Australia
Vostro Institute of Training Australia Pty Limited
Country of
Incorporation
Percentage
Owned/Controlled
2019
2018
Singapore
Australia
Singapore
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Singapore
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
67.54
100
100
67.54
100
75
75
100
100
100
100
100
100
100
75
75
100
100
100
100
100
100
- 36 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
13. PLANT AND EQUIPMENT
2019
$000s
2018
$000s
Plant and equipment
At cost
Accumulated depreciation
Leasehold improvements
At cost
Accumulated amortisation
Leased plant and equipment
Capitalised leased assets
Accumulated depreciation
Total plant & equipment
Year ended 30 June 2019
$000s
$000s
Plant and
equipment
Leasehold
improvements
Balance at the beginning of the year
Additions
Disposals
Transfers between categories
Depreciation expense
Net foreign currency difference arising on
translation of financial statements of foreign
operations
Carrying amount at the end of the year
Year ended 30 June 2018
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Net foreign currency difference arising on
translation of financial statements of foreign
operations
Carrying amount at the end of the year
1,632
181
(2)
123
(397)
3
1,540
4,962
25
-
-
(526)
25
4,486
1,785
247
(10)
(392)
5,285
75
-
(405)
2
7
1,632
4,962
- 37 -
6,131
(4,591)
1,540
8,769
(4,283)
4,486
-
-
-
6,026
Leased
plant and
equipment
$000s
123
-
-
(123)
-
-
-
89
90
-
(56)
-
123
5,556
(3,924)
1,632
8,718
(3,756)
4,962
379
(256)
123
6,717
Total
$000s
6,717
206
(2)
-
(923)
28
6,026
7,159
412
(10)
(853)
9
6,717
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
14. DEFERRED TAX ASSETS / LIABILITIES
2019
$000s
2018
$000s
Deferred Tax Asset
3,906
4,014
The deferred tax asset is made up of the following estimated tax benefits:
Temporary differences:
-
-
deferred tax assets
deferred tax liabilities
4,724
(818)
3,906
4,962
(948)
4,014
Opening
Balance
$000s
Charged To
Income
$000s
Closing
Balance
$000s
979
3,047
698
4,724
(191)
(627)
(818)
(62)
(177)
1
(238)
346
(216)
130
(108)
3,906
2019
$000s
2018
$000s
389
398
Deferred Tax Assets
Provisions
Unearned income
Other
Deferred Tax Liabilities
Plant & equipment
Prepayments and other
Total
1,041
3,224
697
4,962
(537)
(411)
(948)
4,014
Deferred tax assets not brought to account, the benefits of which will only be
realised if the conditions for deductibility set out in Note 1(q) occur:
Tax (operating) losses
- 38 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
15. INTANGIBLE ASSETS
Goodwill at cost
Accumulated impairment losses
Net carrying value
Course development costs
Accumulated amortisation
Net carrying value
Other at cost
Year ended 30 June 2019
Balance at the beginning of the year
Foreign exchange AAC
Rebranding costs amortisation
Course development costs acquisition
Course development costs amortisation
Balance at the end of the year
Year ended 30 June 2018
Balance at the beginning of the year
Foreign exchange AAC
Rebranding costs amortisation
Acquisition additional 16.54% CSF
Course development costs acquisition
Course development costs amortisation
Balance at the end of the year
2019
$000s
32,758
(382)
32,376
2,175
(1,736)
439
35
32,850
2018
$000s
32,753
(382)
32,371
2,099
(1,540)
559
43
32,973
Goodwill
$000s
32,371
5
-
-
-
32,376
32,312
4
-
55
-
-
32,371
Course
Development Costs
$000s
Other
Total
$000s
$000s
559
-
-
76
(196)
439
604
-
-
-
107
(152)
559
43
-
(8)
-
-
35
50
-
(7)
-
-
-
43
32,973
5
(8)
76
(196)
32,850
32,966
4
(7)
55
107
(152)
32,973
Goodwill is assessed by management at the cash generating unit level. The recoverable amount of the cash-generating
unit is determined based on a value in use calculation using cash flow projections covering five years. Cash flows beyond
the five year period are estimated using a terminal value calculated under standard valuation principles incorporating a
long term growth rate.
The following assumptions were used in the value in use calculations:
Revenue
Growth
2.5%
EBITDA
Margin
10.8%
Pre-tax Discount
Rate
9.6%
Long Term Growth
Rate
2.0%
An impairment would be triggered based on changing any one of the key assumptions (with all other assumptions held
constant) as set out below:
Revenue growth rate to be minus 21.4%.
Pre-tax discount rate exceeding 39.9%.
EBITDA margin of less than 5.9%.
Long term growth rate to be minus 14.0%.
- 39 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
16. TRADE AND OTHER PAYABLES
CURRENT
Unsecured Liabilities
Tuition fees in advance (Deferred income)
Trade payables
Sundry payables and accrued expenses
17. BORROWINGS
CURRENT
Secured Liabilities – Interest Bearing
Cash Advance Facilities
Lease purchase
NON-CURRENT
Secured Liabilities – Interest Bearing
Cash Advance Facilities
Lease purchase
a. Total current and non-current secured liabilities:
Cash Advance Facilities
Lease purchase
b. The carrying amounts of non-current assets pledged as security are:
Floating charge over assets
Plant and equipment
Note
2019
$000s
2018
$000s
20,660
425
3,740
24,825
19,125
551
4,110
23,786
-
-
-
-
-
-
-
-
-
1,000
69
1,069
123
78
201
1,123
147
1,270
44,469
-
44,469
45,270
123
45,393
17a
17a
17a
17a
26
20, 26
c. The cash advance facilities are secured by a floating charge over the assets of the parent entity and its wholly
owned subsidiaries (other than those in Note 21).
The major bank facilities comprise Bank overdraft, Cash Advance Facilities and Bank Guarantees.
Interest rates are variable and subject to adjustment.
The Group’s utilisation of bank facilities as at 30 June 2019 is shown in Note 23b.
- 40 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
18. PROVISIONS
CURRENT
Employee entitlements
Lease incentives
NON-CURRENT
Employee entitlements
Lease incentives
TOTAL
Employee entitlements
Lease incentives
2019
$000s
2,749
864
3,613
423
3,573
3,996
3,172
4,437
7,609
2018
$000s
1,579
864
2,443
1,343
4,436
5,779
2,922
5,300
8,222
19. SHARE CAPITAL
Issued Share Capital
2019
Share number
2019
2018
$000s Share number
2018
$000s
Ordinary shares fully paid
127,614,467
42,066
131,754,079
43,515
Ordinary share capital
Balance at the beginning of the financial year
131,754,079
43,515
126,754,079
42,677
Buy back and cancellation of 4,139,612 shares
(4,139,612)
(1,449)
-
-
Exercise of 5,000,000 options over unissued shares
-
-
5,000,000
838
Balance at the end of the financial year
127,614,467
42,066
131,754,079
43,515
- 41 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
19. SHARE CAPITAL (continued)
i. Shares disclosure.
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number
of shares held.
At a shareholders meeting each ordinary share is entitled to one vote when a poll is called. Otherwise, each shareholder
has one vote on a show of hands.
The number of shares authorised is equal to the number of shares issued. Shares have no par value.
ii. Capital Management.
Management controls the capital of the Group in order to maintain an acceptable debt to equity ratio, provide the
shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
There are no externally imposed capital requirements.
Management effectively manages the Group’s capital by assessing financial risks and adjusting its capital structure in
response to changes in these risks and in the market. These responses include the management of debt levels, distributions
to shareholders and share issues.
There were no changes in the Group’s capital management procedures during the year.
20. LEASING COMMITMENTS
Lease purchase commitments
Payable – minimum lease payments
Not later than one year
Later than one year but not later than five years
Minimum lease payments
Less future finance charges
Present value of minimum lease payments
Note
2019
$000s
2018
$000s
-
-
-
-
-
77
85
162
(15)
147
17a
At the end of the lease periods the lessor’s charges over the plant and equipment cease, leaving the assets the
unencumbered property of the Group.
Operating Lease commitments
Non-cancellable operating leases contracted for but not capitalised in the financial statements:
Not later than one year
Later than one year but not later than five years
Later than five years
7,354
20,862
24,652
52,868
6,231
16,251
15,760
38,242
The Group leases property under operating leases expiring from 1 year to 11 years. Lease payments comprise a base
amount plus an incremental rental, based on either movement in the Consumer Price Index or minimum percentage
increase criteria. Lease incentives have been recognised in accordance with the Group’s accounting policies.
- 42 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
21. CONTINGENT LIABILITIES
Contingent Liabilities
Corporate Guarantee
There is a corporate guarantee between wholly-owned Group companies as security for bank facilities in effect during
the year. This guarantee does not include:
Academies Australasia College Pte. Limited
Academies Australasia Hair and Beauty Pty Limited
AKG6 Investment Holdings Pty Limited
AMC Training Pty Limited
Centre for Australian Education Pte. Limited
Humanagement Pty Limited
International College of Capoeira Pty Limited
Kreate Pty Limited
Language Links International Pty Limited
22. SEGMENT REPORTING
Business segments
The Company has determined that it has only one operating segment: Education.
Geographical information
The Group operates in Australia and Singapore. The revenues and non-current assets of the Group for the year ended 30
June 2019 are as follows:
Geographic Location
Revenues from External Customers
Non-current assets
$000s
Australia
61,630
44,225
$000s
Singapore
4,426
329
Accounting Policies
Segment revenues and expenses are those directly attributable to the segments.
- 43 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
23. CASH FLOW INFORMATION
a. Reconciliation of cash flow from operations with profit after
income tax
Profit after income tax
4,805
4,454
2019
$000s
2018
$000s
Non-cash flows in profit
Amortisation
Depreciation
Net loss on disposal of plant and equipment
Write-downs to recoverable amounts
Realised gain on investments
Unrealised foreign exchange movement
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other current assets
(Increase)/decrease in intangibles
(Increase)/decrease in deferred tax assets
Increase/(decrease) in trade and other payables
Increase/(decrease) in tax payables
Increase/(decrease) in provisions
Cash flow from operations
b. Borrowing arrangements with banks
Total Facilities
Cash advance facilities available
Amount utilised
Overdraft facility available
Amount utilised
The major facility is the bank overdraft.
722
397
-
1,245
-
6
2,503
(341)
7
107
987
(1,832)
(613)
7,993
-
-
-
1,000
-
1,000
448
557
10
578
(1,527)
(1)
1,286
753
7
(1,061)
(3,048)
1,746
(468)
3,734
1,373
(1,123)
250
1,000
-
1,000
Bank overdraft
Bank overdraft facilities are arranged with the general terms and conditions. Interest rates are variable and subject
to adjustment.
The bank overdraft, asset finance and commercial card facilities are due for review on 21 September 2019. There
was nothing outstanding in respect to these facilities at 30 June 2019.
- 44 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
24. EVENTS AFTER THE BALANCE SHEET DATE
There were no matters or circumstances that have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group
in subsequent financial years.
25. RELATED PARTY TRANSACTIONS
Directors’ transactions with the Company and the Group
Details of Directors’ remuneration are set out in the Remuneration Report on pages 10 and 11. Directors are reimbursed
for expenses incurred by them on behalf of the Group.
Directors’ and specified executives’ relevant interests in shares
See Directors’ Report on pages 8, 9 and 32.
Other related party transactions
Transactions between the Company and controlled entities comprise loans, management fees and interest and are
eliminated on consolidation.
26. FINANCIAL INSTRUMENTS
Financial Risk Management
The Group’s financial instruments consist mainly of deposits with banks, investments, accounts receivable and payable,
loans to and from subsidiaries, bills and leases.
The main purpose of non-derivative financial instruments is to raise finance for operations.
i. Treasury Risk Management
Senior management meet on a regular basis to review currency and interest rate exposure and to evaluate treasury
management strategies where relevant, in the context of the most recent economic conditions and forecasts.
ii. Financial Risks
The main risks the Group is exposed to through its financial instruments are interest rate risk, foreign currency risk,
liquidity risk and credit risk.
Foreign currency risk
The Group is exposed to foreign currency risk on its purchase of products and the sale of training and education courses
to international students and on the translation of its foreign subsidiaries. The Group had not hedged foreign currency
transactions as at 30 June 2019. Senior management continues to evaluate this risk on an ongoing basis.
Liquidity risk is managed by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities
are maintained, where possible.
- 45 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
26. FINANCIAL INSTRUMENTS (continued)
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in
the balance sheet and notes to the financial statements. In the education business, credit risk is minimised by, generally,
collecting tuition fees in advance.
Interest rate risk
The interest rate risk has been managed by the Group by reducing and in most cases eliminating interest bearing debt.
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result
of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and
financial liabilities, is as follows:
Note Weighted
average
interest
rate
Floating
interest
rate
Fixed
interest
maturing
in:
1 year
or less
Fixed
interest
maturing
in:
1 to 5
years
Non-
Interest
bearing
Total
$000s
$000s
$000s
$000s
$000s
Year ended 30 June 2019
Financial assets
Cash and cash
equivalents
9
Trade and other
receivables
Contract assets
Financial liabilities
Trade and other
payables
10
11
16
Year ended 30 June 2018
Financial assets
Cash and cash
equivalents
Trade and other
receivables
Contract assets
10
11
9
1.03%
14,996
-
-
14,996
-
-
0.95%
12,968
-
-
12,968
-
-
-
-
-
-
-
-
-
-
Financial liabilities
Trade and other
payables
Bank bills
Lease purchase
agreements
16
17
17
3.66%
7.54%
-
1,000
69
1,069
-
-
-
-
- 46 -
-
-
-
-
-
-
-
-
-
-
-
14,996
3,779
3,021
6,800
4,165
4,165
3,779
3,021
21,796
4,165
4,165
-
12,968
7,150
2,140
9,290
7,150
2,140
22,258
-
123
78
201
4,661
-
-
4,661
4,661
1,123
147
5,931
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
26. FINANCIAL INSTRUMENTS (continued)
iii. Net fair values of financial assets and liabilities
The carrying amounts of financial assets and liabilities approximate their net fair value.
iv. Sensitivity Analysis
The following table illustrates sensitivity analysis to the Group’s exposure to changes in interest rates. The table
indicates the estimated impact on how profit and equity values reported at the end of the reporting period would have
been affected by changes in the interest rate that management considers reasonably possible.
2019
+/- 2% in interest rates
27. PARENT INFORMATION
Profit
$’000
Equity
$’000
277
277
The following information has been extracted from the books of the parent and has been prepared in accordance with
Australian Accounting Standards.
STATEMENT OF FINANCIAL POSITION
2019
$000s
2018
$000s
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current Liabilities
Non-current liabilities
Total Liabilities
Equity
Share capital
Retained earnings
Total Equity
STATEMENT OF COMPREHENSIVE INCOME
Total profit
Total comprehensive income
35,534
4,848
40,382
2,127
22
2,149
42,066
(3,833)
38,233
3,355
3,355
37,817
5,012
42,829
2,618
949
3,567
43,515
(4,253)
39,262
3,571
3,571
- 47 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
28. COMPANY DETAILS
The registered office and principal place of business of Academies Australasia Group Limited is:
Level 6, 505 George Street
Sydney NSW 2000
Australia
Principal places of business of AKG colleges:
NEW SOUTH WALES
VICTORIA
Academies Australasia Institute
Academy of English
Australian College of Technology
Australian International High School
Clarendon Business College
Supreme Business College
Level 6, 505 George Street
Sydney, NSW 2000
Benchmark College
140 Henry Street, Penrith, NSW 2750
Academies Australasia Polytechnic
Spectra Training
Vostro Institute
Level 7, 628 Bourke Street
Melbourne,VIC 3000
Discover English
247 Collins Street, Melbourne, VIC 3000
Skills Training Australia
Level 2, 2 Capital City Boulevard
Knox Ozone, Wantirna, South VIC 3152
College of Sports & Fitness
12 Wentworth Avenue, Darlinghurst, NSW 2010
SOUTH AUSTRALIA
RuralBiz Training
46 Wingewarra Street, Dubbo, NSW 2830
Print Training Australia
Unit 17, 169 Unley Road, Unley, SA 5061
QUEENSLAND
WESTERN AUSTRALIA
Brisbane School of Hairdressing
Brisbane School of Beauty
Brisbane School of Barbering
Queen Adelaide Building
90-112 Queen Street Mall
Brisbane, QLD 4000
Gold Coast School of Hairdressing
Pivotal Point Tower
3/2 Nerang Street
Southport, QLD 4215
Language Links
120 Roe Street, Perth, WA 6003
SINGAPORE
Academies Australasia College
45 Middle Road, Singapore 1889954
- 48 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
DIRECTORS DECLARATION
The Directors of the Company declare that:
1.
the financial statements and notes, set out on pages 14 to 48, are in accordance with the Corporations Act
2001 and
(i) comply with Accounting Standards which, as stated in accounting policy Note 1 to the financial
statements, constitutes explicit and unreserved compliance with International Financial Reporting
Standards (IFRS); and
(ii) give a true and fair view of the financial position as at 30 June 2019 and of the performance for the
year ended on that date of the Company and consolidated group;
2. The Chief Executive Officer and Group Finance Manager have each declared that:
(i)
the financial records of the Company and the consolidated group for the financial year have been
properly maintained in accordance with s 286 of the Corporations Act 2001;
(ii) the financial statements and notes for the financial year comply with Accounting Standards; and
(iii) the financial statements and notes for the financial year give a true and fair view; and
3. In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
The Company and wholly-owned subsidiaries identified in Note 12, but excluding those in Note 21, have
entered into a deed of cross guarantee under which the Company and its subsidiaries guarantee the debts of
each other.
At the date of this declaration, there are reasonable grounds to believe that the companies which are party to
this deed of cross guarantee will be able to meet any obligations or liabilities to which they are, or may become
subject to, by virtue of the deed.
This declaration is made in accordance with a resolution of the Board of Directors.
Dr John Lewis Schlederer
Director
28 August 2019
Christopher Elmore Campbell
Director
- 49 -
iloP
PILOT PARTNERS
Chartered Accountants
Level 10, Waterfront Place
1 Eagle St. Brisbane 4000
PO Box 7095 Brisbane 4001
Queensland Australia
P+61 7 3023 1300
F+61 7 3229 1227
pilotpartners. com. au
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACADEMIES AUSTRALASIA GROUP LIMITED
OPINION
We have audited the financial report of Academies Australasia Group Limited ("the
Company" and its subsidiaries ("the Group")), which comprises the consolidated
statement of financial position as at 30 June 2019, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, and the directors'
declaration.
In our opinion, the accompanying 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 financial 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 Accounting
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 confirm that the independence declaration required by the Corporations Act 2001,
which has been given to the directors of the Company, would be in the same terms if
given to the directors as at the time of this auditor's report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
A member of
Nexia
ABN 60 063 687 769 I Pilot is a registered trade mark licensed to Pilot Partners I Liabitity limited by a scheme approved under Professional Standards Legislation
Nexia International is a worldwide network of independent accounting and consulting firms.
^
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.
Reason for si nificance
Risk of im airment of oodwill and
Goodwill
assets
comprise a significant portion of the
Groups total assets.
intangible
and
The impairment assessment made by
the Group over its goodwill and
intangible assets relies upon significant
judgements in respect of factors such
as forecast cash flows, growth rates
operational
and
assumptions.
economic
and
How our audit addressed the matter
intan ible assets
Our audit considered whether
the
methodology and principles applied by the
Group in their discounted cash flow model
met
requirements of AASB 136
Impairment of Assets.
the
Using our understanding of the nature of
the Group's business and the environment
which it operates in, we assessed and
tested the assumptions and methodologies
used in the Group's discounted cash flow
model.
In doing so:
(a) We assessed the basis for the Group's
expected future performance, including
consideration of historical performance;
the discount rate to
(b) We compared
available external data;
(c) We assessed growth rates against
recent historical rates performance;
(d) We assessed the basis for terminal
values and long-term growth rates
against generally-accepted techniques
and relevant external data;
(e) We performed sensitivity analysis and
evaluated whether a reasonable change
in assumptions could cause the carrying
amount of the CGU
its
recoverable amount; and
to exceed
-^
Risk of non-recoverabilit
of receivables
(f) We also considered the adequacy of the
financial report disclosures in regard to
those assumptions.
Trade and Other Receivables are a
significant balance on the Statement of
Financial Position of the Group.
The recovery of Trade and Other
Receivables has a significant impact on
the group's operating cash flows and
financial performance.
The assessment of impairment risk
requires judgement and any allowance
for credit
losses depends upon
estimation techniques.
AASB
The adoption of a new accounting
standard,
Financial
Instruments, imposes significant new
obligations on the Group which are
mandatory for the first time in the year
ended 30 June 2019.
9
considered whether
Our audit
the
methodology and principles applied by the
Group to their trade and other receivables
met the requirements of AASB 9 Financial
Instruments
and
risk assessment,
Our work comprised
sampling
techniques,
substantiation of amounts, data analysis
and other analytical procedures, including
the following:
selection
(a)
reviewing the aged analysis of
the Group's receivables
(c)
(b) making enquiries of any older
amounts and assessing
the
reasonability of explanations
provided;
reviewing
the methods and
policies applied by the Group
during the year to assess and
write off amounts believed non-
recoverable;
verifying
of
receivables by examining cash
receipts after the year end;
applying data analytic techniques
to relevant databases to identify
there were anomalies or
if
inconsistencies which might
indicate recoverabitity risk;
recovery
the
(d)
(e)
(f)
any
using analytical procedures to
identify
or
in the
fluctuations
unexpected
further
relevant balances and
and
en uiries
unusual
made
(g)
(h)
(i)
as
obtained
receivables
corroborations
relevant;
recovery
reviewing historical
rates
and
for
incidence of bad debts to provide
a basis for the assessment of
current recovery risk;
assessing the adequacy of any
recognised
and
allowance for credit losses given
the risk assessment and the audit
evidence obtained; and
the adequacy of
considering
under AASB 9
disclosures
Financial
Instruments with
particular regard to trade and
other receivables.
bad debts
^
OTHER INFORMATION
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 Company 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 has 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 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.
the
A further description of our responsibilities for the audit of the financial report is located
at
at:
htt : www.auasb. ov. au Home. as x. This description forms part of our auditor's
report.
Assurance Standards Board website
Auditing
and
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 10 to 11 of the directors'
report: for the year ended 30 June 2019.
In our opinion, the Remuneration Report of Academies Australasia Group Limited, for
the year ended 30 June 2019 complies with section 300A of the Corporations Act 2001.
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 Standards.
^i^u/
PILOT PARTNERS
Chartered Accountants
Signed on 28 August 2019
Level 10
1 Eagle Street
Brisbane Qld 4000
DANIEL GILL
Partner
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
Additional information required by the Australian Securities Exchange Limited and not shown
elsewhere in this report is as follows.
SUBSTANTIAL HOLDERS
Ordinary Shares
The relevant interests of substantial shareholders as at 27 August 2019 were:
Shareholder
No. of Shares Held
%
Mr Chiang Meng Heng a
Mr Christopher Elmore Campbell b
Andrew Low c
Jilcy Pty Ltd
Dr John Lewis Schlederer d
Eng Kim Low
51,185,961
17,750,000
17,151,981
16,000,000
8,600,000
7,648,232
40.11
13.91
13.44
12.54
6.74
5.99
a Includes 7,648,232 shares held by Eng Kim Low
b Includes 16,000,000 shares held by Jilcy Pty Ltd and 1,400,000 shares held by
Bankura Pty Ltd
c Includes 4,825,000 shares held by Paris Pushkin Pty Ltd
d 5,900,000 shares held by J&B Schlederer Pty Ltd and 2,700,000
shares held by Schlederer Nominees Pty Ltd
VOTING RIGHTS
Ordinary Shares
At 27 August 2019 there were 416 holders of the ordinary shares of the Company. The voting rights
attaching to the ordinary shares, set out in Articles 69 and 70 of the Company’s constitution, are:
Article 69
“Subject to these Articles and any rights or restrictions for the time being attached to any class or
classes of shares:
(a) at meetings of members or classes of members each member entitled to attend and vote may attend
and vote in person or by proxy, or attorney and (where the member is a body corporate) by
representative;
(b) on a show of hands, every Member present has 1 vote;
(c) on a poll, every Member present has:
(i) 1 vote for each fully paid share; …….”
Article 70
“Where more than 1 joint holder votes, the vote of the holder, whose name appears first in the register
of members shall be accepted to the exclusion of the others.”
- 56 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
20 LARGEST SHAREHOLDERS AS AT 27 AUGUST 2019
Registered Name
No. Shares
%
Jilcy Pty Ltd
Andrew Low
Eng Kim Low
J&B Schlederer Pty Ltd
National Nominees Limited
Paris Pushkin Pty Ltd
Stormont Investments Pty Limited
Schlederer Nominees Pty Ltd
Sargoda Pty Ltd
Kin Group Pty Limited
Cheeky Boys Pty Ltd
Bankura Pty Ltd
Citicorp Nominees Pty Limited
Salvage Pty Ltd
1 Mr Chiang Meng Heng
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 MK & MP Investments Pty Ltd
17 Mr Sartaj Hans
18 Mrs Gail Leslie Storey
19 Mr Nicholas William Marlin
20 Mr Daniel Hing Yuen Wong
43,537,729
16,000,000
12,326,981
7,648,232
5,900,000
5,165,004
4,825,000
2,828,045
2,700,000
2,668,525
2,595,514
1,556,106
1,400,000
1,276,298
1,178,351
677,135
675,595
634,335
513,000
427,631
34.12
12.54
9.66
5.99
4.62
4.05
3.78
2.22
2.12
2.09
2.03
1.22
1.10
1.00
0.92
0.53
0.53
0.50
0.40
0.34
114,533,481
89.75
HOLDING RANGE (SHAREHOLDERS) AS AT 27 AUGUST 2019
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 +
No. Holders
58
125
53
121
59
416
Total No. Shares
34,693
349,406
421,170
4,797,385
122,011,813
127,614,467
%
0.03
0.27
0.33
3.76
95.61
100.00
UNMARKETABLE PARCELS AS 27 AUGUST 2019
Minimum $500 parcel at $0.52 per unit
Minimum Parcel Size No. Holders
962
41
Units
17,711
- 57 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
CORPORATE INFORMATION
DIRECTORS
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
COMPANY
SECRETARIES
Stephanie Noble
Gabriela Del Carmen Rodriguez Naranjo
REGISTERED OFFICE
Academies Australasia Group Limited
Level 6, 505 George Street
Sydney NSW 2000
Australia
Telephone: (02) 9224 5555
Facsimile:
(02) 9224 5550
Email: companysecretary@academies.edu.au
Web Site: www.academies.edu.au
SHARE REGISTRAR
Computershare Investor Services Pty Limited
GPO Box 2975 Melbourne, VIC 3001
Australia
Telephone: +61 (03) 9415 4000
Toll Free (Australia only): 1300 855 080
SECURITIES EXCHANGE
The Company is listed on the Australian Securities Exchange.
The Home Exchange is Sydney.
ASX Code:
AKG
- 58 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
GLOSSARY
AAC
AAHB
AAI
AAPoly
AASB
ACT
AIHS
AKG
AOE
ASX
BMC
Board
CBC
Academies Australasia College Pte. Limited
Academies Australasia Hair and Beauty Pty Limited
Academies Australasia Institute Pty Limited
Academies Australasia Polytechnic Pty Limited
Australian Accounting Standards Board or a numbered Standard issued by it
Australian College of Technology Pty Limited
Australian International High School Pty Limited
ASX code for Academies Australasia Group Limited – The Company
Academy of English Pty Limited
Australian Securities Exchange
Benchmark Resources Pty Limited - trading as Benchmark College
The Board of Directors of Academies Australasia Group Limited
Clarendon Business College Pty Limited
College
Subsidiary company of AKG that is licensed to operate as an education institution
Company
Academies Australasia Group Limited (ACN 000 003 725) - the parent company
Corporations Act
Corporations Act 2001 (Cth)
CSF
DE
International College of Capoeira Pty Limited - trading as College of Sports & Fitness
Discover English Pty Limited
Directors
Board of Directors of AKG
EBITDA
Earnings before interest, taxation, depreciation and amortisation
EGM
EPS
FVTPL
FVOCI
Extraordinary General Meeting
Earnings per share
Fair value through profit and loss
Fair value through other comprehensive income
FY17 to FY20
Financial Year to 30 June 2017 to Financial Year to 30 June 2020 respectively
- 59 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
GLOSSARY
Group
GST
IHEA
LLI
RBT
SBC
Shares
SPT
STA
AKG and all its subsidiaries
Goods and Services Tax
Independent Higher Education Australia (Previous name: Council of Private Higher Education
– COPHE)
Language Links International Pty Limited
Kreate Pty Limited – trading as RuralBiz Training
Supreme Business College Pty Limited
Fully paid ordinary shares in the Company
CLB Training & Development Pty Limited as trustee for the CLB Unit Trust - trading as
Spectra Training
Transformations – Pathways to Competence and Developing Excellence Pty Limited - trading
as Skills Training Australia
TAFE
Technical and Further Education
TPS
VET
VOS
Tuition Protection Scheme
Vocational Education and Training
Vostro Institute of Training Australia Pty Limited
- 60 -