ACADEMIES AUSTRALASIA GROUP LIMITED
ANNUAL REPORT 2025
ACN 000 003 725
- 1 -
ACADEMIES AUSTRALASIA GROUP LIMITED
ANNUAL REPORT 2025
CONTENTS
Page
Report of the Chairman and the Group Managing Director and CEO
2
Directors’ Report
4
Information on the Directors and Company Secretaries
8
Information on Senior Company Executives
10
Remuneration Report - Audited
10
Corporate Governance Statement
12
Auditor’s Independence Declaration
13
Consolidated Financial Statements
Statement of Comprehensive Income
14
Statement of Financial Position
15
Statement of Changes in Equity
16
Statement of Cash Flows
17
Notes
18
Directors’ Declaration
51
Independent Auditor’s Report
52
Additional Information for a Company listed on the ASX
56
Corporate Information
58
Glossary
59
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REPORT OF THE CHAIRMAN AND THE GROUP MANAGING DIRECTOR AND CEO
Dear Shareholder
FY25 was another difficult year. The turmoil in Australia’s international education sector that we referred to
in our report for FY24 continued in FY25. Indeed, there were significant provider closures in FY25. The year
was fraught with challenges.
In the circumstances we are not unhappy with the Company’s performance:
•
Revenue grew 1.5%.
•
EBITDA of $7.2 million was $9.7 million better than the negative $2.5 million in FY24.
•
Adjusted EBITDA was $7.5 million, double that of FY24.
•
After adjustments, FY25 profit before tax was $1.0 million compared to a loss of $2.6 million in FY24.
•
Net operating cashflow of $3.8 million was more than eight times that in FY24 ($441,000).
•
Costs were carefully controlled:
•
Expenses from ordinary activities decreased by $3.2 million (6.5%) to $46.5 million.
•
Student acquisition and teaching costs decreased by $2.8 million (11%) to $22.4 million.
•
Personnel and other administrative expenses decreased by $565,000 (3.8%) to $14.3 million.
•
Total occupancy costs were $10.7 million – an increase of only $129,000 or 1.2% over FY24.
It was the commitment of our management team as well the careful diversification of the education business
we built that took us through this difficult year. Certain areas did well. Others not. HE revenue grew by $9.5
million (145%) to $16.1 million. Revenue from our Singapore operations, unaffected by high student visa fees
and difficult to understand restrictions on international students, went up by 26% to $7.6 million. Senior high
school revenue grew by 44% to $754,000. Our revenue from international students studying English language
and VET courses in Australia dropped by $10 million – a staggering 36% drop in the revenue they contributed
in FY24. High student visa fees and other restrictions had the biggest impact on our English language and VET
operations in Australia.
The position on student visa fees in FY26 is not yet clear, though there appears to be signs of some let up in
the visa fees for students studying English language and non-award courses of less than 12 months. This would
help improve English language enrolments.
The Directors’ Report addresses NOSC allocations on pages 6 and 7. To be eligible for a maximum average
of only 101 commencements per college is very disappointing. Especially when calendar 2026 allocations are
based on only a 3% increase on calendar 2023 actuals. The more relevant reference should be calendar 2024
actuals. But this is for another forum.
We will continue growing our operations overseas – especially in Singapore where we have been operating for
many years and now offer honours degrees on behalf of a university in the United Kingdom. And, to minimise
the influence of difficult to understand policies towards international students, we will devote more resources
to domestic operations.
We are continuing to take steps to reduce occupancy costs further.
The acquisition of the shares in CSF that we did not already own is significant. Now all our colleges and other
subsidiaries are wholly owned. More specifically, we can now proceed with further growth of CSF solely in
the interests of CSF and the Group.
- 3 -
Our three English language colleges, especially DE, have done us proud. AOE, DE and LLI have been
recognised by International Development Program (IDP) for their commitment to excellence in English
language education and IELTS preparation. DE recently won the English Australia 2025 Award for Innovation.
On 5 September 2025, at the PIEoneer Awards 2025 ceremony celebrating innovation and achievement in
global education at Guildhall in London, it was announced that DE won the PIEoneer ‘Language training
provider of the year’ award for 2025. The finalists were from Australia, Myanmar, New Zealand, Taiwan and
the United Kingdom. This was no mean feat.
Academies Test Center which we own, has been selected to run LanguageCert test centres operating in
Melbourne, Sydney and Perth. The Australian Department of Home Affairs now recognises LanguageCert for
all visa applications requiring proof of English proficiency.
We would like to record our thanks to all directors who extended loans to the Company.
On behalf of our colleagues on the Board, and ourselves, we would like to thank all shareholders, students,
clients, partners, associates and other stakeholders for their loyalty, contribution and support. Thank you.
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chairman
Group Managing Director and CEO
8 September 2025
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DIRECTORS’ REPORT
Your Directors present their report on the Group for FY25.
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 from 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 loss before tax for the Group in FY25 was $1,777,000 (FY24: loss $11,009,000). The
consolidated loss for the Group, after providing for income tax, was $1,282,000 (FY24: loss $9,653,000).
REVIEW OF OPERATIONS
Compared to FY24, FY25 revenue from ordinary activities increased by 1.5% from $46,831,000 to $47,537,000.
The increase was not consistent throughout our operations. HE revenue more than doubled from $6,530,000 to
$16,048,000, mainly the result of significant expansion in our operations in Perth. Our operations in Singapore,
through AAC, grew by 26% from $6,055,000 to $7,648,000 and our senior high school (AIHS) by 44% from
$523,000 to $754,000.
On the other hand, our English language operations from DE, LLI and AOE declined by a substantial nine
million dollars or 46% from $19,381,000 to $10,425,000.
VET revenue declined 12% from $13,882,000 to $12,155,000: International VET was down $1,004,000 to
$7,013,000; Domestic VET down $723,000 to $5,142,000.
The reduction of about ten million dollars from English language and International VET operations can be
attributed to the fall in international student enrolments because of Australian government policy changes
regarding student visas, including substantial increases in fees for student visas.
FY25 student acquisition and teaching costs of $22,436,000 were $2,844,000 (11%) lower than in FY24.
Personnel and other administration expenses were reduced by $565,000 (3.8%) to $14,284,000 in FY25.
Total occupancy costs in FY25 of $10,692,000 was only 1.2% ($129,000) more than in FY24 ($10,563,000).
Net operating cash flow in FY25 was $3,820,000 - more than eight times the $441,000 in FY24
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Material factors impacting net loss
In FY25 the lease for the Goulburn Street premises contributed $2,463,000 to the result (FY24: $2,353,000),
comprising depreciation and amortisation and finance costs. Renovation works associated with 9B-approval
plans have been deferred pending greater clarity on Federal Government policy settings towards international
students.
A provision for impairment of $370,000 (FY24: $1,150,000) was made against the non-recourse loans of
$2,000,000 that secure the 5,000,000 shares issued at 40 cents each under the employee incentive plan. The
share price at 30 June 2025 was 9.6 cents compared to 17 cents at 30 June 2024. This provision is adjusted
according to the share price while the loans are in place. At 30 June 2025 the total provision was $1,520,000.
Profit / (loss) before tax after adjustments
FY25
$000
FY24
$000
Loss from ordinary activities before tax
(1,777)
(11,009)
Add back impairments / provisions
- goodwill
-
4,408
- right of use assets
-
575
- loans secured for the issue of shares in the employee incentive plan
370
1,150
Add back Goulburn Street
- depreciation and amortisation
1,568
1,568
- finance costs
714
771
- other costs (outgoings, facilities etc)
181
14
Add back relocation and make good STA
64
-
Deduct Government grants
(110)
(91)
Adjusted profit / (loss) before tax
1,010
(2,614)
Earnings before interest, tax, depreciation and amortisation (EBITDA)* after adjustments
FY25
$000s
FY24
$000s
EBITDA
7,173
(2,496)
Add back impairments / provisions
- goodwill
-
4,408
- right of use assets
-
575
- loans secured for the issue of shares in the employee incentive plan
370
1,150
Add back relocation and make good STA
64
-
Deduct Government grants
(110)
(91)
EBITDA after adjustments
7,497
3,546
* [Note: ‘EBITDA’ is not a term prescribed by the Australian Accounting Standards (‘AAS’).]
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Acquisition of the remaining interest in CSF
On 30 June 2025, AKG3 Investment Holdings Pty Limited, a wholly owned subsidiary of AKG, acquired the
remaining 32.46% of CSF which it did not own, for a consideration of $100,000 to be paid in three instalments.
The first instalment of $40,000 was paid on 30 June 2025. The second and third instalments of $30,000 shall be
paid by 30 September and 31 December 2025.
Directors’ and Director-related loans
On 17 December 2024 Christopher Campbell extended a one-year loan of $1.0 million to AKG. A loan of $0.2
million for one-year was extended by his wife, Sarah Campbell, on 17 June 2025.
On 12 February 2025, AKG accepted a loan of $800,000 from Dr John Schlederer. This loan was repaid on 2
May 2025.
The loans totalling $1.0 million in April 2024 from Dr John Schlederer ($200,000), Chiang Meng Heng
($700,000), Gabriela Rodriguez ($50,000), and Sartaj Hans ($50,000) were repaid as scheduled on the due dates.
The one-year $4.0 million loan extended by Chiang Meng Heng on 29 June 2024 has been extended to a date
to be mutually agreed by Mr Heng and AKG. Apart from the revised repayment date all the other terms remain
the same.
Generally, the material features of each of the above loans are:
-
The interest rate applicable to each loan is 9% per annum calculated on a simple interest basis.
-
Interest on each loan is paid quarterly.
-
The principal must be paid within 12 months of the advance date.
-
The loans are unsecured.
-
The loan agreements contain warranty and covenant clauses standard for agreements of this nature.
-
The loan agreements do not include any right to convert the loans to AKG shares.
The total balance of all Directors’ and Director-related loans at the end of FY25 was $5.2 million (FY24: $5.0
million)
NOSC allocations
The operating environment in FY25 continued to be challenging. While the proposed ‘caps’ announced by the
government in August 2024 did not eventuate, on 19 December 2024 the Australian Government announced a
Ministerial Direction for a new prioritisation system for processing offshore visa applications from students
wishing to study VET or HE courses in Australia. The priority processing, which took effect from that day and
is in place until the end of this year, is based on the provider’s indicative 2025 NOSC allocation. This
prioritisation system does not apply to visa applications lodged in Australia.
Refunds
Visa rejections in FY25 were significantly lower than in FY24. Refunds paid to students in FY25, mainly
because of visa rejections, totalled $1.9 million (FY24: $6.2 million).
DIVIDENDS
There were no dividends paid or declared during the year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the Company’s state of affairs during the financial year.
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EVENTS AFTER THE REPORTING DATE
On 4 August 2025, the government announced that Australia's international education sector in 2026 will
operate under a National Planning Level (NPL) of 295,000 NOSC allocations in VET and HE courses from 1
January 2026. This represents a 25,000 increase from the NPL in 2025.
Eight of the 18 Academies Australasia colleges are affected by the NOSC restrictions. These colleges are
AAHB, AAI, AAPOLY, ACT, CBC, CSF, SBC and STA. Those not affected are our college in Singapore
(AAC), our five domestic RTOs (BMC, PTA, RBT, SPT and VOS), our three English language colleges (AOE,
DE and LLI), and our senior high school (AIHS). The latter four colleges are registered on CRICOS, meaning
that they are able to enrol international students.
The total indicative NOSC allocation for the eight colleges in calendar 2026 is (up to) 811*. Although that’s an
increase of (up to) 220 or 37% on the 2025 total of 591, the average of 101 per college is very disappointing.
[*602 plus up to 80 each for providers with 100 or less NOSC allocations. Five of our eight colleges come under
this category of providers]. The financial impact of the 2026 NOSC allocation and any other regulatory changes
to subsequent financial years is not clear. Focusing more on our operations overseas, especially in Singapore,
and devoting more resources to domestic operations, should counter any negative impact.
There were no other 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 (Page 2 and 3).
ENVIRONMENTAL ISSUES
The Group’s operations are not subject to any significant environmental legislation.
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 $55,000 for 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.
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INFORMATION ON DIRECTORS AND COMPANY SECRETARIES
Dr John Lewis Schlederer
Non-executive Director, appointed 21 August 2009. Chairman since 1
January 2014.
Qualifications
B.Sc. (Hons), Grad. Diploma, PhD.
Experience
More than 22 years teaching experience at University of New South
Wales and TAFE NSW and many years in business.
Interest in Shares
17,036,346 shares (12.85 %)
Special Responsibilities
Chairman of the Board. Chairman of the Remuneration Committee.
Member of the Audit and Risk Committee.
Directorships held in other listed
entities
None
Christopher Elmore Campbell
Group Managing Director and Chief Executive Officer, appointed 1
July 1996.
Qualifications
B.Soc.Sci. (Hons), FFin, FAICD, FCG (CS, CGP), FGIA.
Experience
Experience in mergers and acquisitions and more than 29 years’
experience in managing educational institutions. Previous positions
include senior appointments with the Monetary Authority of Singapore
and an international bank in Australia. Member of the Advisory
Council of Asia Society Australia (‘ASA’) since November 2020 after
8 years on the Board of ASA.
Interest in Shares
21,430,000 shares (16.16 %)
Special Responsibilities
Member of the Remuneration Committee.
Directorships held in other listed
entities
None.
Chiang Meng Heng
Non-executive Director, appointed 15 February 2000.
Qualifications
BBA (Hons).
Experience
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.
Interest in Shares
51,185,961 shares (38.60%)
Special Responsibilities
Member of the Audit and Risk Committee and Remuneration
Committee.
Directorships held in other listed
entities
None.
- 9 -
Gabriela Del Carmen
Rodriguez Naranjo
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.
Qualifications
B. Comp.Sci, B.Sci. Sys. Eng.
Experience
Joined the Group in April 2001. More than 24 years’ experience
managing
educational
institutions,
including
experience
in
acquisitions,
marketing,
regulatory
compliance,
curriculum
development and lecturing.
Director, IHEA since 17 May 2017. Deputy Chair of IHEA from 29
May 2019 to 27 April 2023.
Interest in Shares
2,600,000 shares (1.96 %)
Special Responsibilities
Group Chief Operating Officer from 15 August 2017. Joint Company
Secretary from 14 September 2016.
Directorships held in other listed
entities
None
Sartaj Hans
Independent, Non-executive Director, appointed 19 October 2016.
Qualifications
B.E. Honours (Electronics)
Experience
Experience in information technology and superannuation at BT
Financial Group, the wealth management arm of Westpac. Played 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.
Interest in Shares
863,929 shares (0.65%)
Special Responsibilities
Chairman of the Audit and Risk Committee (Appointed 19 October
2016).
Directorships held in other listed
entities
None
COMPANY SECRETARIES
Stephanie Noble
Appointed 27 November 2006
Qualifications
BA (Hons) Accounting, FCCA (UK), CPA (Australia).
Experience
More than 18 years as Company Secretary of Academies
Australasia Group Limited.
Other Responsibilities
Group Finance Manager.
Gabriela Del Carmen
Rodriguez Naranjo
Appointed 14 September 2016
See Information on Directors.
- 10 -
MEETINGS OF DIRECTORS
Director
Directors’
Meetings
Audit and Risk
Committee
Remuneration
Committee
A
B
A
B
A
B
Dr John Lewis Schlederer
3
3
2
2
2
2
Christopher Elmore Campbell
3
3
2
2
2
2
Chiang Meng Heng
3
2
2
1
2
2
Gabriela Del Carmen Rodriguez Naranjo
3
3
2
2
-
-
Sartaj Hans
3
3
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 COMPANY 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 Company 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 company 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’s Employee Incentive Plan has 5 million shares issued to eligible participants since adoption on 5
October 2022. The shares issued were fully funded by loans provided by the Company. The shares issued under
the Plan were recognised in Share Capital at the issue date. The loan amounts were recognised under the non-
current assets at amortised cost. Loans are interest free and unsecured. The recourse under the loans is limited to
the shares issued. The loans must be repaid on the earlier of either 3 years from the date of issue or 3 months from
when the participant ceases to be an employee of the Group. The repayment amount is the outstanding amount at
the repayment date.
The participants are not permitted to sell, transfer or otherwise deal in the shares without the Company’s consent.
Gabriela Del Carmen Rodriguez Naranjo was issued 2,500,000 shares with an attributed value of $1,000,000.
The Company does not have an employee share option plan.
- 11 -
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.
Directors and Senior Company Executives
Details of the Directors and Senior Company Executives holding office at any time during the financial year are
set out on pages 8 to 9.
a. Remuneration
FY25 Directors and Senior Company
Executives
Short-term employee benefits
Post- employment
benefits
Cash, salary
and
commissions
Bonus
Non-
monetary
benefits
Superannuation
Total
$000s
$000s
$000s
$000s
$000s
Dr John Lewis Schlederer
70
-
-
-
70
Christopher Elmore Campbell
510
-
-
30
540
Chiang Meng Heng
45
-
-
-
45
Gabriela Del Carmen Rodriguez Naranjo
338
-
-
30
368
Sartaj Hans
50
-
-
6
56
1,013
-
-
66
1,079
FY24 Directors and Senior Company
Executives
Short-term employee benefits
Post- employment
benefits
Cash, salary
and
commissions
Bonus
Non-
monetary
benefits
Superannuation
Total
$000s
$000s
$000s
$000s
$000s
Dr John Lewis Schlederer
69
-
-
-
69
Christopher Elmore Campbell
512
-
-
28
540
Chiang Meng Heng
44
-
-
-
44
Gabriela Del Carmen Rodriguez Naranjo
339
-
-
27
366
Sartaj Hans
50
-
-
5
55
1,014
-
-
60
1,074
None of the remuneration paid to any Director or Senior Company Executive is tied to any specific performance
condition.
b. Options issued as part of remuneration for the year ended 30 June 2025
No options were granted as part of remuneration.
- 12 -
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 company executives, the expiry date of Christopher Elmore Campbell’s fixed term
contract of employment has been extended to 31 December 2026. Gabriela Del Carmen Rodriguez Naranjo’s
fixed term contract has been extended to 31 December 2027.
AUDITORS’ INDEPENDENCE DECLARATION
The Auditor’s Independence Declaration for FY25 appears on page 13. It forms part of the Directors’ Report
for the year ended FY25.
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 2025:
• Taxation services
$66,000 (FY24: $66,000)
• Other services
$5,000 (FY24: $4,000)
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/corporate.
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
Christopher Elmore Campbell
Director
Director
8 September 2025
PILOT PARTNERS
Chartered Accountants
Level 10, 1 Eagle Street
Brisbane QLD 4000
PO Box 7095
Brisbane QLD 4001
P +61 7 3023 1300
pilotpartners.com.au
AUDITOR'S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
ACADEMIES AUSTRALASIA GROUP LIMITED
I declare that to the best of my knowledge and belief, during the year ended 30 June
2025, 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.
Chartered Accountants
PILOT PARTNERS
Partner
DANIEL GILL
Signed on 8 September 2025
Level 10
1 Eagle Street
Brisbane Qld 4000
ABN 60 063 687 769 | Pilot is a registered trade mark licensed to Pilot Partners | Liability limited by a scheme approved under Professional Standards Legislation
Nexia International is a worldwide network of independent accounting and consulting firms.
-13-
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2025
- 14 -
Note
FY25
FY24
$000s
$000s
Revenue from services
2
47,030
46,371
Student acquisition and teaching costs
3
(22,436)
(25,280)
Gross profit
24,594
21,091
Personnel expenses
3
(12,097)
(12,308)
Premises expenses
3
(3,007)
(2,834)
Other administration expenses
3
(2,187)
(2,541)
7,303
3,408
Other expenses – Impairments / provisions
3
(434)
(6,133)
6,869
(2,725)
Other income
2
304
229
Earnings before interest, depreciation and amortisation
7,173
(2,496)
Depreciation and amortisation expenses
3
(6,723)
(6,711)
Loss on disposal of assets
(23)
(13)
Finance costs
3
(2,407)
(2,020)
Interest income
203
231
Loss before income tax
(1,777)
(11,009)
Income tax expense
4
495
1,356
Loss for the year
(1,282)
(9,653)
Other comprehensive income:
Exchange differences on translating foreign controlled entities
(85)
3
Other comprehensive income for the year, net of tax
(85)
3
Total comprehensive income for the year
(1,367)
(9,650)
(Loss) / profit attributable to:
Owners of the parent entity
(1,272)
(9,779)
Non-controlling interests
(10)
126
(1,282)
(9,653)
Total comprehensive income attributable to:
Owners of the parent entity
(1,357)
(9,776)
Non-controlling interests
(10)
126
(1,367)
(9,650)
Earnings per share (cents per share)
Basic
7
(0.96)
(7.37)
Diluted
7
(0.96)
(7.37)
Dividends per share (cents)
8
-
-
The accompanying notes form part of these financial statements.
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2025
- 15 -
Note
FY25
FY24
$000s $000s
Current Assets
Cash and cash equivalents
9
2,715
5,832
Trade and other receivables
10
1,515
1,905
Other current assets
11
2,178
2,408
Security deposit
9
455
-
Total Current Assets
6,863
10,145
Non-Current Assets
Plant and equipment
13
1,768
2,337
Right of use assets
14
26,245
31,774
Deferred tax assets
15
7,384
6,647
Intangible assets
16
28,369
28,372
Other non-current assets
-
850
Security deposit
9
3,141
3,736
Total Non-Current Assets
66,908
73,716
Total Assets
73,771
83,861
Current Liabilities
Tuition fees in advance (Deferred income)
17
6,772
10,666
Trade and other payables
17
6,377
5,036
Current tax liabilities
4
292
219
Borrowings
25
5,200
5,000
Lease liabilities
18
6,952
7,013
Provisions
19
3,879
3,712
Total Current Liabilities
29,472
31,646
Non-Current Liabilities
Lease liabilities
18
27,747
34,153
Provisions
19
357
400
Total Non-Current Liabilities
28,104
34,553
Total Liabilities
57,576
66,199
Net Assets
16,195
17,662
Equity
Share capital
20
44,066
44,066
Retained earnings
(27,859)
(26,482)
Foreign currency translation reserve
(12)
73
Non-controlling interests
-
5
Total Equity
16,195
17,662
The accompanying notes form part of these financial statements.
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2025
- 16 -
Ordinary
Shares
Retained
Earnings
Reserves
Non -
Controlling
Interests
Total
$000s
$000s
$000s
$000s
$000s
Balance at 1 July 2024
44,066
(26,482)
73
5
17,662
Loss for the period
-
(1,272)
(10)
(1,282)
Exchange differences on translating foreign
operations
-
-
(85)
-
(85)
Total comprehensive income for the year
-
(1,272)
(85)
(10)
(1,367)
Acquisition of remaining 32.46% of CSF (Note
12)
-
(105)
-
5
(100)
Balance at 30 June 2025
44,066
(27,859)
(12)
-
16,195
Balance at 1 July 2023
44,066
(17,292)
70
564
27,408
Loss for the period
-
(9,779)
-
126
(9,653)
Exchange differences on translating foreign
operations
-
-
3
-
3
Total comprehensive income for the year
-
(9,779)
3
126
(9,650)
Acquisition of remaining 25% of LLI
-
589
-
(685)
(96)
Balance at 30 June 2024
44,066
(26,482)
73
5
17,662
The accompanying notes form part of these financial statements.
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2025
- 17 -
Note
FY25
FY24
$000s
$000s
Cash Flows from Operating Activities
Receipts from customers
44,607
42,908
Payments to suppliers and employees
(38,423)
(42,371)
Interest received
203
231
Interest paid
(2,395)
(2,007)
Income taxes paid
(172)
1,680
Net cash provided by (used in) operating activities
23a
3,820
441
Cash Flows from Investing Activities
Purchase of intangible assets
(175)
(117)
Purchase of plant & equipment
(70)
(160)
Proceeds from sale of plant & equipment
-
14
Expenditure on make good
(100)
-
Net cash provided by (used in) investing activities
(345)
(263)
Cash Flows from Financing Activities
Directors’ and Director-related loans
200
5,000
Acquisition of remaining 25% of LLI
(64)
(32)
Acquisition of remaining 32.46% of CSF
(40)
-
Lease payments
(6,828)
(6,124)
Net cash provided by (used in) financing activities
(6,732)
(1,156)
Net increase in cash held
(3,257)
(978)
Net cash at the beginning of the financial year
9,568
10,546
Net cash at the end of the financial year
6,311
9,568
Reconciliation of cash balance
Cash at bank and on hand
9
2,715
5,832
Security deposit
9, 23b
3,596
3,736
6,311
9,568
The accompanying notes form part of these financial statements.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 18 -
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 the Group. Details of AKG can be found
in Note 27.
AKG is a public listed 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 8 September 2025.
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.
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.
Accounting Policies
a.
Basis of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of AKG and all its
subsidiaries (including any structured entities). Subsidiaries are entities AKG controls. AKG 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.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 19 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
b.
Business combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition 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.
c.
Cash and cash equivalents
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.
d.
Trade and other receivables (including contract assets)
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.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 20 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 21 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 22 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
f.
Right of use assets and lease liabilities
The Group’s lease portfolio includes property and equipment.
The Group has adopted AASB 16 Leases using the full retrospective restatement approach from 1 July 2019,
recognising right of use assets (ROUA) and an equivalent lease liability at the commencement of the lease.
The ROUA is initially measured at cost less any lease incentives and the lease liability is measured as the
present value of the remaining future lease payments discounted at the Group’s incremental borrowing rate at
the date of initial application.
A depreciation charge against the leased ROUA replaces the straight line expense payment and an interest
expense is recognised against the lease liability. Lease payments are no longer recognised as operating cash
flows, but as financing cash flows in the Statement of Cash Flows.
AASB 16 eliminates the distinction between operating and finance leases and brings all leases except short
term and low value onto the Statement of Financial Position.
The Group recognises a ROUA, representing its right to use the underlying assets and a corresponding lease
liability representing its obligation to make future lease payments. The Group recognises a ROUA and lease
liability at the commencement date of the lease.
ROUA are initially measured at cost (present value of the lease liability) and subsequently at cost less any
accumulated depreciation, impairment losses and adjustments for re-measurement of the lease liability. The
ROUA are depreciated using the straight line method from the commencement date to the end of the lease
term.
Short term leases (with a term of less than 12 months) and leases of low value assets are not recognised as
ROUA and corresponding lease liability. Lease payments on these assets are expensed to the profit and loss
account as incurred.
The lease liabilities are initially measured as the present value of future lease payments expected to be paid
over the lease term, discounted using the Group’s incremental borrowing rate. The lease liability is re-measured
if the future estimated lease payments change as a result of rate changes or the likelihood of exercise of
extension. The lease liabilities are subsequently increased by the interest cost on the lease liability and
decreased by the lease payments.
Make good liability
A liability is recognised for the present value of expected costs for future restoration of the leased premises.
The liability considers the costs associated with the removal of fittings, fit-out, furniture, signage, and other
structures, as well as the cost of restoration of the premises to its original condition by reconditioning or
repainting the walls, replacing, or cleaning the surfaces including carpets, tiles, vinyl, wallpaper and so on. The
calculation of the make good liability involves assumptions such as lease end dates and cost of make good.
The liability recognised for each lease is reviewed at the end of report date and the liability amount is updated
based on the information available at the time. Changes to the estimated future make good obligation for leases
are recognised in the financial statements by adjusting the lease liabilities account. The make good liability
will be carried forward after the lease end date until the make good obligations are fully discharged. The initial
estimate of the future make good liability is recognised as part of lease liabilities and the right-of-use assets.
The right-of-use asset component is depreciated across the lease term on a straight-line basis. The interest on
the make good liability is recognised as part of finance costs.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 23 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g.
Leasehold improvements and plant and equipment
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.
h.
Depreciation
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
Depreciation Rate
Leasehold improvements
2.5 – 30%
Plant and equipment
5 – 67%
Leased plant and equipment
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.
i.
Goodwill
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.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 24 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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 assets (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 determined 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.
j.
Intangible assets
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.
k.
Impairment of assets
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.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 25 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
l.
Trade and other payables
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.
m.
Provisions and employee benefits
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.
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.
n.
Issued capital
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.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 26 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
o.
Revenue
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 Taxation 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.
q.
Income tax
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.
AKG and its wholly-owned Australian subsidiaries formed an income tax consolidated group under the tax
consolidation regime with effect from 1 July 2003. Each company in the tax consolidated group contributes to
the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated
group.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 27 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r.
Foreign currency transactions and balances
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.
s.
Earnings per share
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 restated 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 16. For FY25, a
provision for impairment of $370,000 has been made against the loans secured for the issue of shares in the
employee incentive scheme.
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)).
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 28 -
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 Group has only one operating segment: Education.
w. Going Concern
These financial statements have been prepared adopting the going concern assumption, which contemplates
the orderly realisation of assets and payment of liabilities in the ordinary course of business.
The appropriateness of this assumption is dependent upon:
-
the continued support of the Group’s bankers;
-
the continued support of shareholders in the event of a capital raising;
-
the ability of the Group to return to profitable trading; and
-
the orderly realisation of selected assets in the ordinary course of business at values at least equal to their
book values.
The financial statements show that the Group had a net loss of $1,282,000 in FY25 (FY24: loss 9,653,000).
After adjusting for non-cash impairments/provisions totalling $370,000, the loss was $912,000.
The Board recognises that the Statement of Financial Position shows that the current liabilities exceed
current assets by $22,609,000. Included in the current liabilities are fees paid in advance of $6,772,000. This
is not an amount payable in the ordinary course of business and will be recognised as income as tuition is
delivered.
The Board is currently satisfied that there are reasonable grounds to assume that the Group will meet its
future financial obligations as and when they fall due.
The following factors support this assumption:
-
Positive cash flow from operations for the year of $3,820,000.
-
Substantial cash holdings across the Group of $6,311,000 of which $1,807,000 is required to be held in
the TPS controlled accounts.
-
Positive net assets of $16,195,000.
-
No bank debt.
-
Significant efforts made to rationalise the cost structures of the business.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 29 -
3. PROFIT FOR THE YEAR
Student acquisition and teaching costs
- Teaching
12,836
15,004
- Acquisition
8,646
8,949
- Teaching materials
954
1,327
22,436
25,280
Personnel expenses
- Wages and salaries
10,292
10,510
- Superannuation
727
715
- Payroll tax
585
651
- Other
493
432
12,097
12,308
Premises expenses
- Rental
432
420
- Outgoings
1,504
1,251
- Electricity
276
267
- Cleaning
443
493
- Other
352
403
3,007
2,834
Other administration expenses
- Other administration
2,192
2,556
- Bad and doubtful debts
(5)
(15)
2,187
2,541
Other expenses – Impairments / provisions
- Impairment for goodwill - STA
-
4,408
- Provision for impairment - ROUA
-
575
- Provision for impairment on loans secured for the issue of shares in
the employee incentive plan
370
1,150
- Relocation and make good - STA
64
-
434
6,133
Depreciation and Amortisation expenses
- Depreciation plant and equipment
169
211
- Amortisation of intangible assets
627
600
- Depreciation of right of use assets
5,905
5,877
- Depreciation of make good
22
23
6,723
6,711
Finance costs
- Interest and bank facility fees
154
191
- Interest on Directors’ and Director-related loans
495
-
- Interest recognised on lease liability
1,746
1,816
- Interest recognised on make good
12
13
2,407
2,020
FY25
FY24
$000s
$000s
2. REVENUE
Operating activities
Revenue from services
47,030
46,371
Non-operating activities
Government grants
110
91
Rent received /rental rebates
194
124
Other income
-
14
304
229
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 30 -
FY25
FY24
4. INCOME TAX EXPENSE
$000s
$000s
a. The components of tax expense comprise:
Current tax
(242)
(232)
Deferred tax
737
(368)
Deferred tax – adjustments to FY23 balance *
-
1,956
495
1,356
* The adjustments to the FY23 deferred tax balance relate to the carry back of losses to prior years resulting in a
refund of tax.
b. The prima facie tax on loss from ordinary activities before tax is reconciled to income tax as follows:
FY25
FY24
$000s
$000s
Tax payable on loss from ordinary activities before tax at 25% (FY24: 25%)
(444)
(2,752)
Add/(less) tax effect of:
i. Permanent differences
126
1,538
ii. Assumption of tax balances of controlled entities
(177)
(142)
Income tax expense attributable to the entity
(495)
(1,356)
The effective tax rate is 28 % (FY24: 12%).
c. Current tax payable for the year reconciles as follows:
Opening provision
219
270
Add: Current year provision
242
232
Less: Prior year adjustments to deferred tax balance
-
(1,956)
Add: Prior year
3
(7)
Less: Tax paid
(172)
1,680
Closing provision
292
219
AAC is resident in Singapore for tax purposes.
5. DIRECTORS AND SENIOR COMPANY EXECUTIVES’ COMPENSATION
a.
Details of Directors and Senior Company Executives, including remuneration, have been set out on pages 8 to 12.
b.
Shareholdings
Number of shares in AKG held by Senior Company Executives and parties related to them:
Balance
1 July 2024
Purchased
on ASX
Balance
30 June 2025
Christopher Elmore Campbell
20,703,875
726,125
21,430,000
Gabriela Del Carmen Rodriguez Naranjo
2,600,000
-
2,600,000
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 31 -
FY25
FY24
6. AUDITORS’ REMUNERATION
$000s
$000s
Remuneration of the auditors of the parent entity for:
- Auditing and reviewing the financial report
282
288
- Taxation services
66
66
- Other services
5
4
353
358
Remuneration of other auditors of subsidiaries for:
- Auditing and reviewing the financial report
41
29
- Taxation services
3
3
- Other services
4
4
48
36
7. EARNINGS PER SHARE
Basic (cents per share)
(0.96)
(7.37)
Diluted (cents per share)
(0.96)
(7.37)
Weighted average number of ordinary shares used in calculation of basic
earnings per share
132,614,467
132,614,467
The earnings amount used was a loss on ordinary activities after tax attributable to owners of the parent entity of
$1,272,000 (FY24: loss $9,779,000).
FY25
FY24
8. DIVIDENDS PER SHARE
$000s
$000s
Distributions recognised:
Year ended 30 June 2025: interim ordinary dividend of 0 cents per share, fully
franked (FY24: 0 cents per share)
-
-
Year ended 30 June 2024: final ordinary dividend of 0 cents per share, fully
franked, paid in 2024 (FY23: 0 cents per share)
-
-
-
-
Dividends proposed or declared but not recognised in the financial statements:
Proposed fully franked ordinary dividend of 0 cents per share (FY24: fully
franked 0 cents)
-
-
Balance of franking account at year end adjusted for franking credits arising
from payment of income tax
3,315
2,901
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 32 -
FY25
FY24
10. TRADE AND OTHER RECEIVABLES
$000s
$000s
CURRENT
Trade receivables
169
209
Less allowance for expected credit losses
(22)
(29)
147
180
Contract assets
959
1,250
Other receivables
409
475
1,515
1,905
FY25
FY24
9. CASH AND CASH EQUIVALENTS
$000s
$000s
CURRENT
Cash at bank and on hand
2,715
5,832
CURRENT
Security deposit
455
-
NON-CURRENT
Security deposit
3,141
3,736
There is no overdraft balance at 30 June 2025 (FY24: NIL). The net cash position is $2,715,000 (FY24: 5,832,000).
The security deposit is in respect to rental bonds on leased premises. (See note 23b)
Included in the above amounts are tuition fees held in TPS accounts in Australia.
As at 30 June 2025, the Group held $1,807,000 (FY24: $3,166,000) 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).
a.
The ageing analysis of trade receivables is as follows:
0 -30 days
128
177
31- 60 days – not impaired *
14
6
61- 90 days – not impaired *
3
9
Over 90 days – not impaired *
24
-
Past due and impaired
-
17
169
209
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 33 -
FY25
FY24
Allowance for expected credit losses
$000s
$000s
Trade receivables
169
209
Contract assets
959
1,250
Sub-total
1,128
1,459
Lower risk government debtors
(894)
(1,214)
Sub- total
234
245
Allowance for credit losses
(22)
(29)
Credit Loss %
9.4%
11.8%
11. OTHER CURRENT ASSETS
Prepayments
1,312
2,049
Other current assets
480
-
Security deposits
386
359
2,178
2,408
10. TRADE AND OTHER RECEIVABLES (continued)
*
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 FY25, an amount of $10,000 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.
FY25
FY24
$000s
$000s
c.
Allowance for expected credit losses at the start of the year
29
44
Movement in expected credit losses
(7)
(15)
Allowance for expected credit losses at the end of the year
22
29
d.
The following factors were considered when assessing credit losses, receivables and contract assets:
i. A review was performed during the year and credit losses were recognised as impairments
ii. Government debtors are assessed as low risk
iii. Significant amounts of debtors were recovered after the year end
iv. Other than SPT, historical levels of bad debts have been low
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 34 -
12. CONTROLLED ENTITIES
Country of
Incorporation
Percentage
Owned/Controlled
FY25
FY24
Academies Australasia Group Limited (Ultimate Parent Entity)
Subsidiaries (controlled directly or indirectly)
ACA Investment Holdings Pte. Limited
Singapore
100
100
Academies Australasia (Management) Pty Limited
Australia
100
100
Academies Australasia College Pte. Limited
Singapore
100
100
Academies Australasia Hair & Beauty Pty Limited T/A Brisbane School of
Hairdressing, Brisbane School of Barbering, Brisbane School of Beauty, Gold Coast
School of Hairdressing and Gold Coast School of Barbering
Australia
100
100
Academies Australasia Institute Pty Limited
Australia
100
100
Academies Australasia Polytechnic Pty Limited
Australia
100
100
Academies Australasia Pty Limited
Australia
100
100
Academy of English Pty Limited
Australia
100
100
AKG Investment Holdings Pty Limited
Australia
100
100
AKG2 Investment Holdings Pty Limited
Australia
100
100
AKG3 Investment Holdings Pty Limited
Australia
100
100
AKG4 Investment Holdings Pty Limited
Australia
100
100
AKG5 Investment Holdings Pty Limited
Australia
100
100
AKG6 Investment Holdings Pty Limited
Australia
100
100
AKG7 Investment Holdings Pty Limited
Australia
100
100
AMC Training Pty Limited
Australia
100
100
AMI Education Pty Limited
Australia
100
100
Australian College of Technology Pty Limited
Australia
100
100
Australian Institute of Professional Studies Pty Limited
Australia
100
100
Australian International High School Pty Limited
Australia
100
100
Australian Trades Institute Pty Limited
Australia
100
100
Benchmark Resources Pty Limited T/A Benchmark College
Australia
100
100
Centre for Australian Education Pte. Limited
Singapore
100
100
Clarendon Business College Pty Limited
Australia
100
100
CLB Training & Development Pty Limited as trustee for the CLB Unit Trust
T/A Spectra Training Australia
Australia
100
100
Discover English Pty Limited
Australia
100
100
International College of Capoeira Pty Limited T/A College of Sports & Fitness
Australia
100
67.54
Humanagement Pty Limited T/A Print Training Australia
Australia
100
100
Kreate Pty Limited T/A RuralBiz Training
Australia
100
100
Language Links International Pty Limited
Australia
100
100
Live. Laugh. Learn. Pty Limited
Australia
100
100
Newco CLB Training & Development Pty Limited
Australia
100
100
Skilled Placements Pty Limited
Australia
100
100
Supreme Business College Pty Limited
Australia
100
100
Transformations – Pathways to Competence and Developing Excellence Pty
Limited T/A Skills Training Australasia
Australia
100
100
Vostro Institute of Training Australia Pty Limited
Australia
100
100
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 35 -
12. CONTROLLED ENTITIES (continued)
Acquisition of controlled entities
The following schedule shows the effect on the equity of the Group on the acquisition of the remaining 32.46% of CSF
on 30 June 2025.
CSF
Fair Value
$’000s
Recognised in retained earnings
(105)
Non-controlling interest acquired
5
Effect on total equity of the Group.
(100)
Deed of cross guarantee
AKG and the subsidiaries listed below are parties to an ASIC-registered deed of cross guarantee under which AKG
guarantees to each creditor payment in full of any debts in the event of winding up of any of the subsidiaries under
certain provisions of the Corporations Act 2001. The subsidiaries have also given similar guarantees in the event that
AKG is wound up.
-
CLB Training & Development Pty Ltd ATF the CLB Unit Trust
-
Academies Australasia Institute Pty Limited
-
Benchmark Resources Pty Limited
-
Kreate Pty Limited
-
Academies Australasia Hair & Beauty Pty Limited (became a party to the Deed on 2 January 2025 by a Deed
of Assumption).
FY25
FY24
13. PLANT AND EQUIPMENT
$000s
$000s
Plant and equipment
At cost
4,672
4,672
Accumulated depreciation
(3,932)
(3,808)
740
864
Leasehold improvements
At cost
6,692
6,851
Accumulated amortisation
(5,664)
(5,378)
1,028
1,473
Total plant & equipment
1,768
2,337
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 36 -
13. PLANT AND EQUIPMENT (continued)
Plant and
equipment
$000s
Leasehold
improvements
$000s
Total
$000s
Year ended 30 June 2025
Balance at the beginning of the year
864
1,473
2,337
Additions
48
22
70
Disposals
(5)
(18)
(23)
Depreciation expense
(169)
(449)
(618)
Net foreign currency difference arising on translation of
financial statements of foreign operations
2
-
2
Carrying amount at the end of the year
740
1,028
1,768
Year ended 30 June 2024
Balance at the beginning of the year
1,007
1,865
2,872
Additions
91
69
160
Disposals
(23)
(1)
(24)
Depreciation expense
(211)
(460)
(671)
Carrying amount at the end of the year
864
1,473
2,337
FY25
FY24
14. RIGHT OF USE ASSETS
$000s
$000s
Right of use assets
At cost
57,571
58,999
Accumulated depreciation
(31,409)
(26,755)
Provision for impairment
-
(575)
26,162
31,669
Make good
At cost
235
293
Accumulated depreciation
(152)
(188)
83
105
Total
26,245
31,774
Balance at the beginning of the year
31,669
32,524
Additions
-
5,697
Modifications
(11)
(3)
Terminations
-
25
Depreciation expense
(5,905)
(5,877)
Provision for impairment
-
(575)
Net foreign currency difference arising on translation of financial statements of
foreign operations
409
(123)
Carrying amount at the end of the year
26,162
31,669
Make good
83
105
Total
26,245
31,774
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 37 -
FY25
FY24
15. DEFERRED TAX ASSETS / LIABILITIES
$000s
$000s
Deferred Tax Asset
7,384
6,647
The deferred tax asset is made up of the following estimated tax benefits:
Temporary differences:
-
deferred tax assets
10,551
12,278
-
deferred tax liabilities
(6,399)
(7,799)
-
losses
3,232
2,168
7,384
6,647
Opening
Charged To
Closing
Balance
Income
Balance
$000s
$000s
$000s
Deferred Tax Assets
Plant & equipment
34
29
63
Provisions
1,029
29
1,058
Unearned income
794
(211)
583
Lease liabilities and make good
9,871
(1,564)
8,307
Other
550
(10)
540
12,278
(1,727)
10,551
Deferred Tax Liabilities
Right of use assets and make good
(7,528)
1,321
(6,207)
Prepayments and other
(271)
79
(192)
(7,799)
1,400
(6,399)
Losses
2,168
1,064
3,232
Total
6,647
737
7,384
FY25
FY24
$000s
$000s
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
320
320
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 38 -
FY25
FY24
16. INTANGIBLE ASSETS
$000s
$000s
Goodwill at cost
32,758
32,758
Accumulated impairment losses
(4,790)
(4,790)
Net carrying value
27,968
27,968
Course development costs and capitalised licences
3,064
2,889
Accumulated amortisation
(2,666)
(2,488)
Net carrying value
398
401
Other at cost
3
3
28,369
28,372
Goodwill
Course
Development Costs
and capitalised
licences
Other
Total
$000s
$000s
$000s
$000s
Year ended 30 June 2025
Balance at the beginning of the year
27,968
401
3
28,372
Course development costs and capitalised licences
additions
-
175
-
175
Course development costs and capitalised licences
amortisation
-
(178)
-
(178)
Balance at the end of the year
27,968
398
3
28,369
Year ended 30 June 2024
Balance at the beginning of the year
32,376
423
3
32,802
Impairment of goodwill - STA
(4,408)
-
-
(4,408)
Course development costs and capitalised licences
additions
-
117
-
117
Course development costs and capitalised licences
amortisation
-
(140)
-
(140)
Balance at the end of the year
27,968
401
3
28,372
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.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 39 -
16. INTANGIBLE ASSETS (continued)
The following assumptions were used in the value in use calculations:
Revenue
Growth
Revenue
Growth
Pre-tax Free
Cash Flow –
Revenue from
Services
Pre-tax Free Cash
Flow – Revenue
from Services per
annum
Pre-tax Discount
Rate
Long Term Growth
Rate
FY26
FY27-FY30
FY26
FY27-FY30
12.7%
6.3%
10.4%
10.4%
10.0%
2.0%
An impairment would be triggered if any one of the key assumptions (with all other assumptions held constant) set out
below applies over a 5-year period:
•
Revenue growth rate is 5.5% or lower.
•
Pre-tax discount rate exceeds 11.0%.
•
Pre-tax free cash flow – revenue from services per annum FY26-FY30 is 7.9% or lower.
•
Long term growth rate is 1.0% or lower
FY25
FY24
17. TRADE AND OTHER PAYABLES
$000s
$000s
CURRENT
Unsecured Liabilities
Tuition fees in advance (Deferred income)
6,772
10,666
Trade payables
2,478
1,331
Sundry payables and accrued expenses
3,899
3,705
13,149
15,702
18. LEASE LIABILITIES
Balance at beginning of year
40,594
41,140
Additions – new leases
-
5,672
Terminated
-
28
Lease modifications
(22)
(3)
Lease payments
(6,828)
(6,124)
Net foreign currency difference arising on translation of financial statements of
foreign operations
413
(119)
Balance at end of year
34,157
40,594
Make good
542
572
Total
34,699
41,166
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 40 -
FY25
FY24
18. LEASE LIABILITIES (continued)
$000s
$000s
Current
6,952
7,013
Non-current
27,747
34,153
Total
34,699
41,166
Lease liability – undiscounted
Less than one year
8,802
9,484
One to five years
30,636
36,402
More than five years
3,073
6,562
Total undiscounted lease liabilities at end of year
42,511
52,448
Short-term lease payments expensed to the profit and loss account in the year $432,000 (FY24: $420,000) (Note 3)
FY25
FY24
19. PROVISIONS
$000s
$000s
CURRENT
Employee entitlements
3,879
3,712
NON-CURRENT
Employee entitlements
357
400
20. SHARE CAPITAL
FY25
FY25
FY24
FY24
Share number
$000s
Share number
$000s
Issued Share Capital
Ordinary shares fully paid
132,614,467
44,066
132,614,467
44,066
Ordinary share capital
Balance at the beginning and end of the financial year
132,614,467
44,066
132,614,467
44,066
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.
The number of shares authorised is equal to the number of shares issued. Shares have no par value.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 41 -
20. SHARE CAPITAL (continued)
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 ensures 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.
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.
iii. Employee incentive plan
Shareholders on 18 November 2022 authorised the issue of 2,500,000 ordinary shares to Gabriela Del Carmen Rodriguez
Naranjo under the Plan. The shares were issued on 22 November at 40 cents per share, which was the closing price the
day before. Under the Plan, the issue was secured by an interest free non-recourse loan of $1,000,000.
On 5 January 2023 2,500,000 shares at 40 cents per share, which was the closing price the day before, were issued under
the Plan. The shares were issued to Bibhod Dotel (1,000,000 shares), Joanna Kelly (1,000,000 shares) and Dr Sreekanth
Vinnakota (500,000 shares). Under the Plan, the issues were secured by interest free non-recourse loans of $400,000,
$400,000 and $200,000 respectively.
A provision for impairment of $370,000 (FY24: $1,150,000) has been made against the non-recourse loans of $2,000,000
that secure the 5,000,000 shares issued at 40 cents each under the employee incentive plan. The share price at 30 June
2025 was 9.6 cents compared to 17 cents as at 30 June 2024. This provision will be adjusted according to the share price
while the loans are in place. At 30 June 2025 the total provision was $1,520,000.
21. CONTINGENT LIABILITIES
Corporate Guarantees
There is a corporate guarantee between Group companies as security for bank facilities in effect during the year, other
than the following:
Academies Australasia College Pte. Limited
Academies Australasia Hair & 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
AKG has provided a corporate guarantee to the landlord of the Goulburn Street premises in respect to rental of the
premises by Academies Australasia Pty Limited, the lessee. AKG is also a guarantor for leases taken out by BMC and
AAHB.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 42 -
22. SEGMENT REPORTING
Business segments
The Group 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 2025 are as follows:
$000s
$000s
Geographic Location
Australia
Singapore
Revenues from External Customers
39,381
7,649
Non-current assets
57,237
9,671
Accounting Policies
Segment revenues and expenses are those directly attributable to the segments.
FY25
FY24
23. CASH FLOW INFORMATION
$000s
$000s
a. Reconciliation of cash flow from operations with loss after
income tax
Loss after income tax
(1,282)
(9,653)
Non-cash flows in profit
Amortisation
627
600
Depreciation
6,096
6,111
Net loss on disposal of plant and equipment
23
13
Write-downs to recoverable amounts
(5)
(15)
Unrealised foreign exchange movement
(77)
(27)
Impairment of goodwill - STA
-
4,408
Provision for impairment ROUA
-
575
Provision for impairment on loans secured for the issue of shares in
the employee incentive plan
370
1,150
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
395
(52)
(Increase)/decrease in other current assets
711
1,258
(Increase)/decrease in deferred tax assets
(741)
375
Increase/(decrease) in trade and other payables
(2,551)
(4,305)
Increase/(decrease) in tax payables
73
(51)
Increase/(decrease) in provisions
181
54
Cash flow from operations
3,820
441
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 43 -
FY25
$000s
FY24
$000s
23. CASH FLOW INFORMATION (continued)
b. Borrowing arrangements with banks
Total Facilities
Credit standby facility available
3,596
4,032
Amount utilised
(3,596)
(4,031)
-
1
Overdraft facility available
-
100
Amount utilised
-
-
-
100
Credit standby
Line fee 2.0%. Usage fee 1.10%.
Security deposit for rental bonds on leased premises $3,596,000 (FY24: $3,736,000). Interest rates are variable and
subject to adjustment.
Bank overdraft
General terms and conditions apply. Interest rates are variable and subject to adjustment.
The credit standby, bank overdraft and commercial card facilities are due for review on 24 November 2025.
24. EVENTS AFTER THE BALANCE SHEET DATE
On 4 August 2025, the government announced that Australia's international education sector in 2026 will operate under
a National Planning Level (NPL) of 295,000 NOSC allocations in VET and HE courses from 1 January 2026. This
represents a 25,000 increase from the NPL in 2025.
Eight of the 18 Academies Australasia colleges are affected by the NOSC restrictions. These colleges are AAHB, AAI,
AAPOLY, ACT, CBC, CSF, SBC and STA. Those not affected are our college in Singapore (AAC), our five domestic
RTOs (BMC, PTA, RBT, SPT and VOS), our three English language colleges (AOE, DE and LLI), and our senior high
school (AIHS). The latter four colleges are registered on CRICOS, meaning that they are able to enrol international
students.
The total indicative NOSC allocation for the eight colleges in calendar 2026 is (up to) 811*. Although that’s an increase
of (up to) 220 or 37% on the 2025 total of 591, the average of 101 per college is very disappointing. [*602 plus up to 80
each for providers with 100 or less NOSC allocations. Five of our eight colleges come under this category of providers].
The financial impact of the 2026 NOSC allocation and any other regulatory changes to subsequent financial years is not
clear. Focusing more on our operations overseas, especially in Singapore, and devoting more resources to domestic
operations, should counter any negative impact.
There were no other 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.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 44 -
25. RELATED PARTY TRANSACTIONS
Directors’ transactions with the Company and the Group
Directors’ and Director-related loans
On 17 December 2024 Christopher Campbell extended a one-year loan of $1.0 million to AKG. A loan of $0.2 million
for one-year was extended by his wife, Sarah Campbell, on 17 June 2025.
On 12 February 2025, AKG accepted a loan of $800,000 from Dr John Schlederer. This loan was repaid on 2 May 2025.
The loans totalling $1.0 million from Dr John Schlederer ($200,000), Chiang Meng Heng ($700,000), Gabriela Rodriguez
($50,000), and Sartaj Hans ($50,000) were repaid as scheduled on the due dates.
The one-year $4.0 million loan extended by Chiang Meng Heng on 29 June 2024 has been extended to a date to be
mutually agreed by Mr Heng and AKG. Apart from the revised repayment date all the other terms remain the same.
Generally, the material features of each of the above loans are:
-
The interest rate applicable to each loan is 9% per annum calculated on a simple interest basis.
-
Interest on each loan is paid quarterly.
-
The principal must be paid within 12 months of the advance date.
-
The loans are unsecured.
-
The loan agreements contain warranty and covenant clauses standard for agreements of this nature.
-
The loan agreements do not include any right to convert the loans to AKG shares.
The total balance of all Directors’ and Director-related loans at the end of FY25 was $5.2 million (FY24: $5.0 million)
Accrued interest on the loans to 30 June 2025 of $95,548 (FY24: $21,570) is included in accrued expenses (Note 17).
The total interest charge for FY25 was $495,000 (FY24: NIL) (Note 3).
Details of Directors’ remuneration are set out in the Remuneration Report on pages 10 to 12. Directors are reimbursed
for expenses incurred by them on behalf of the Group.
Other Directors’ transactions
Included in sundry payables (Note 17) is an amount owing to Christopher Campbell of $200,000 for expenses paid. There
is no interest on this balance.
Directors’ and specified executives’ relevant interests in shares
See Directors’ Report on pages 8,9 and 30.
Other related party transactions
Transactions within the Group comprise loans, management fees and interest and are eliminated on consolidation.
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 45 -
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 2025. Senior management continues to evaluate this risk on an ongoing basis.
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
$000s
Fixed
interest
maturing
in:
1 year
or less
$000s
Fixed
interest
maturing
in:
1 to 5
Years
$000s
Non-
Interest
bearing
$000s
Total
$000s
Year ended 30 June 2025
Financial assets
Cash and cash
equivalents
9
5.72%
2,715
-
-
-
2,715
Security deposit
9
4.12%
3,596
-
-
-
3,596
Trade and other
receivables
10
-
-
-
556
556
Contract assets
10
-
-
-
959
959
6,311
-
-
1,515
7,826
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 46 -
26. FINANCIAL INSTRUMENTS (continued)
Note
Weighted
average
interest
rate
Floating
interest
rate
$000s
Fixed
interest
maturing
in:
1 year
or less
$000s
Fixed
interest
maturing
in:
1 to 5
years
$000s
Non-
Interest
bearing
$000s
Total
$000s
Year ended 30 June 2025
Financial liabilities
Trade and other
payables
17
-
-
-
6,377
6,377
Lease liabilities
18
-
6,952
27,747
-
34,699
-
6,952
27,747
6,377
41,076
Year ended 30 June 2024
Financial assets
Cash and cash
equivalents
9
5.06%
5,832
-
-
-
5,832
Security deposit
9
5.05%
3,736
-
-
-
3,736
Trade and other
receivables
10
-
-
-
655
655
Contract assets
10
-
-
-
1,250
1,250
9,568
-
-
1,905
11,473
Financial liabilities
Trade and other
payables
17
-
-
-
5,036
5,036
Lease liabilities
18
-
7,013
34,153
-
41,166
-
7,013
34,153
5,036
46,202
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.
Profit
Equity
$’000
$’000
FY25
+/- 2% in interest rates
306
306
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 47 -
27. PARENT INFORMATION
The following information has been extracted from the books of the parent and has been prepared in
accordance with Australian Accounting Standards.
FY25
FY24
$000s
$000s
STATEMENT OF FINANCIAL POSITION
Assets
Current
46,800
47,693
Non-current
8,370
8,516
Total Assets
55,170
56,209
Liabilities
Current
8,020
7,437
Non-current
-
-
Total Liabilities
8,020
7,437
Equity
Share capital
44,066
44,066
Retained earnings
3,084
4,706
Total Equity
47,150
48,772
STATEMENT OF COMPREHENSIVE INCOME
Total profit
(1,621)
(2,824)
Total comprehensive income
(1,621)
(2,824)
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 48 -
28. COMPANY DETAILS
The registered office and principal place of business of AKG is:
Level 6, 505 George Street
Sydney NSW 2000
Australia
Principal places of business of AKG colleges:
NEW SOUTH WALES
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
Ground Floor, 331 High Street
Sydney, NSW 2750
College of Sports & Fitness
Level 6, 505 George Street
Sydney, NSW 2000
RuralBiz Training
46 Wingewarra Street, Dubbo, NSW 2830
QUEENSLAND
Brisbane School of Hairdressing
Brisbane School of Barbering
Brisbane School of Beauty
Queen Adelaide Building
90-112 Queen Street Mall
Brisbane, QLD 4000
Gold Coast School of Hairdressing
Gold Coast School of Barbering
Pivotal Point Tower
3/2 Nerang Street
Southport, QLD 4215
VICTORIA
Academies Australasia Polytechnic
Skills Training Australasia
Spectra Training Australia
Vostro Institute of Training Australia
Level 7, 628 Bourke Street
Melbourne,VIC 3000
Discover English
247 Collins Street, Melbourne, VIC 3000
SOUTH AUSTRALIA
Print Training Australia
Unit 17, 169 Unley Road, Unley, SA 5061
WESTERN AUSTRALIA
Language Links International
120 Roe Street, Perth, WA 6003
SINGAPORE
Academies Australasia College
45 Middle Road, Singapore 1889954
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 49 -
29. CONTROLLED ENTITY DISCLOSURE STATEMENT
Academies Australasia Group Limited ABN 93 000 003 725 and Controlled Entities Consolidated Entity Disclosure
Statement
Name of entity
Type of Entity
% share
capital
Country of
Incorporation
Australian or
foreign resident
Academies Australasia Group Limited
Body Corporate
n/a
Australia
Australian
ACA Investment Holdings Pte. Limited
Body Corporate
100
Singapore
Foreign
(Singapore)
Academies Australasia (Management) Pty
Limited
Body Corporate
100
Australia
Australian
Academies Australasia College Pte. Limited
Body Corporate
100
Singapore
Foreign
(Singapore)
Academies Australasia Hair & Beauty Pty
Limited
Body Corporate
100
Australia
Australian
Academies Australasia Institute Pty Limited
Body Corporate
100
Australia
Australian
Academies Australasia Polytechnic Pty Limited
Body Corporate
100
Australia
Australian
Academies Australasia Pty Limited
Body Corporate
100
Australia
Australian
Academy of English Pty Limited
Body Corporate
100
Australia
Australian
AKG Investment Holdings Pty Limited
Body Corporate
100
Australia
Australian
AKG2 Investment Holdings Pty Limited
Body Corporate
100
Australia
Australian
AKG3 Investment Holdings Pty Limited
Body Corporate
100
Australia
Australian
AKG4 Investment Holdings Pty Limited
Body Corporate
100
Australia
Australian
AKG5 Investment Holdings Pty Limited
Body Corporate
100
Australia
Australian
AKG6 Investment Holdings Pty Limited
Body Corporate
100
Australia
Australian
AKG7 Investment Holdings Pty Limited
Body Corporate
100
Australia
Australian
AMC Training Pty Limited
Body Corporate
100
Australia
Australian
AMI Education Pty Limited
Body Corporate
100
Australia
Australian
Australian College of Technology Pty Limited
Body Corporate
100
Australia
Australian
Australian Institute of Professional Studies Pty
Limited
Body Corporate
100
Australia
Australian
Australian International High School Pty Limited
Body Corporate
100
Australia
Australian
Australian Trades Institute Pty Limited
Body Corporate
100
Australia
Australian
Benchmark Resources Pty Limited
Body Corporate
100
Australia
Australian
Centre for Australian Education Pte. Limited
Body Corporate
100
Singapore
Foreign
(Singapore)
Clarendon Business College Pty Limited
Body Corporate
100
Australia
Australian
CLB Training & Development Pty Limited as
trustee for the CLB Unit Trust
Trustee
100
Australia
Australian
Discover English Pty Limited
Body Corporate
100
Australia
Australian
International College of Capoeira Pty Limited
Body Corporate
100
Australia
Australian
Humanagement Pty Limited
Body Corporate
100
Australia
Australian
Kreate Pty Limited
Body Corporate
100
Australia
Australian
Language Links International Pty Limited
Body Corporate
100
Australia
Australian
Live. Laugh. Learn. Pty Limited
Body Corporate
100
Australia
Australian
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2025
- 50 -
29. CONTROLLED ENTITY DISCLOSURE STATEMENT (continued)
Name of entity
Type of Entity
%
share
capital
Country of
Incorporation
Australian or
foreign
resident
Newco CLB Training & Development Pty Limited
Body Corporate
100
Australia
Australian
Skilled Placements Pty Limited
Body Corporate
100
Australia
Australian
Supreme Business College Pty Limited
Body Corporate
100
Australia
Australian
Transformations – Pathways to Competence and
Developing Excellence Pty Limited
Body Corporate
100
Australia
Australian
Vostro Institute of Training Australia Pty Limited
Body Corporate
100
Australia
Australian
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
DIRECTORS DECLARATION
- 51 -
The Directors of AKG declare that:
1. the financial statements and notes, set out on pages 14 to 50, 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 2025 and of the performance for the
year ended on that date of AKG and the Group; and
2. the Consolidated Entity Disclosure Statement is true and correct (Note 29); and
3. the Chief Executive Officer and Group Finance Manager have each declared that:
(i) the financial records of AKG and the Group for the financial year have been properly maintained in
accordance with s 286 of the Corporations Act 2001; and
(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
4. in the Directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its
debts as and when they become due and payable. (See Note 1w).
This declaration is made in accordance with a resolution of the Board of Directors.
Dr John Lewis Schlederer
Christopher Elmore Campbell
Director
Director
8 September 2025
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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 (collectively with the Company “the Group”), which
comprises the consolidated statement of financial position as at 30 June 2025, 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, consolidated entity disclosure statement 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 2025
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.
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
-52-
Liability limited by a scheme approved under Professional Standards Legislation
forming our opinion thereon, and we do not provide a separate opinion on these
matters.
REASON FOR SIGNIFICANCE
HOW OUR AUDIT ADDRESSED THE MATTER
Risk of impairment of goodwill and intangible assets
Goodwill
and
intangible
assets
comprise a significant portion of the
Group’s total assets.
The impairment assessment made by
the
Group
for
its
goodwill
and
intangible assets relies upon significant
judgements in respect of factors such
as forecast cash flows, growth rates
and
economic
and
operational
assumptions.
Our
audit
considered
whether
the
methodology and principles applied by the
Group in their discounted cash flow model
met the requirements of AASB 136
Impairment of Assets (“AASB 136”).
Using our understanding of the nature of
the Group’s business and the environment
in which it operates, we assessed and
tested the assumptions and methodologies
used in the Group’s discounted cash flow
model. In doing so:
(a) We reviewed the Group’s impairment
test, including an assessment of its
arithmetical accuracy and conceptual
soundness;
(b) We assessed the basis for the Group’s
expected future performance, including
consideration of historical performance;
(c) We assessed management explanations
against available relevant data;
(d) We compared the discount rate to
available external data;
(e) We assessed growth rates against
recent historical rates performance and
current actual revenue drivers;
(f) We assessed the basis for terminal
values and long-term growth rates
against generally-accepted techniques
and relevant external data;
(g) We performed sensitivity analysis and
evaluated whether a reasonable change
in assumptions could cause the carrying
amount of the CGU to exceed its
recoverable amount; and
(h) We also considered the adequacy of the
relevant disclosures in the financial
report.
-53-
Liability limited by a scheme approved under Professional Standards Legislation
Going Concern
During the year ended 30 June 2025,
the Group incurred a net loss of
$1.282m after asset impairments of
$0.370m, and as of that date, the
Group’s current liabilities exceed its
current assets by $22.609m.
As at 30 June 2025 the Group had cash
and cash equivalents of $2.715m
(excluding
security
deposits
of
$3.596m). For the year ended 30 June
2025, net cash provided by operating
activities was $3.820m.
The going concern assessment made
by the Group relies upon significant
judgements in respect of future cash
flows
as
well
as
economic
and
operational assumptions.
Using our understanding of the nature of
the Group’s business and the environment
in which it operates, we reviewed detailed
information from management on the
assumptions made in their assessment of
the Group’s ability to continue as a going
concern. In doing so:
(a) We reviewed the Group’s cash flow
forecast for the next 12 months,
including
an
assessment
of
its
arithmetical accuracy and conceptual
soundness;
(b) We assessed the reasonableness of the
Group’s assumptions underlying the
forecast against available information;
(c) We performed analysis on the forecast
to assess whether a reasonable change
in assumptions could cast doubt on the
Group’s ability to continue as a going
concern; and
(d) We reviewed the adequacy of the
disclosures in the financial report in
relation to going concern.
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 2025, 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
-54-
Liability limited by a scheme approved under Professional Standards Legislation
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. A further
description of our responsibilities for the audit of the financial report is located at:
http://www.auasb.gov.au/Home.aspx. This description forms part of our auditor’s
report.
REPORT ON THE REMUNERATION REPORT
OPINION ON THE REMUNERATION REPORT
We have audited the Remuneration Report included in pages 10 to 12 of the directors’
report for the year ended 30 June 2025.
In our opinion, the Remuneration Report of Academies Australasia Group Limited, for
the year ended 30 June 2025 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.
PILOT PARTNERS
Chartered Accountants
DANIEL GILL
Partner
Signed on 8 September 2025
Level 10
1 Eagle Street
Brisbane Qld 4000
Liability limited by a scheme approved under Professional Standards Legislation
-55-
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR A COMPANY LISTED ON THE ASX
- 56 -
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 5 September 2025 were:
Shareholder
No. of Shares Held
%
Mr Chiang Meng Heng a
51,185,961
38.60
Mr Christopher Elmore Campbell b
21,430,000
16.16
Jilcy Pty Ltd
17,650,000
13.31
Dr John Lewis Schlederer d
17,036,346
12.85
Andrew Low c
13,656,455
10.29
Eng Kim Low
7,648,232
5.77
a Includes 7,648,232 shares held by Eng Kim Low
b Includes 17,650,000 shares held by Jilcy Pty Ltd and 1,700,000 shares held by
Bankura Pty Ltd
c Includes 1,529,474 shares held by Paris Pushkin Pty Ltd and 1,809,091 shares held by Mutual
Trust Pty Limited.
d 7,700,001 shares held by J&B Schlederer Pty Ltd and 9,336,345
shares held by Schlederer Nominees Pty Ltd
VOTING RIGHTS
Ordinary Shares
At 5 September 2025 there were 397 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.”
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR A COMPANY LISTED ON THE ASX
- 57 -
20 LARGEST SHAREHOLDERS AS AT 5 SEPTEMBER 2025
Registered Name
No. Shares
%
1
Mr Chiang Meng Heng
43,537,729
32.83
2
Jilcy Pty Ltd
17,650,000
13.31
3
Andrew Low
10,317,890
7.78
4
Schlederer Nominees Pty Ltd
9,336,345
7.04
5
J&B Schlederer Pty Ltd
7,700,001
5.81
6
Eng Kim Low
7,648,232
5.77
7
Gotterdamerung Pty Limited
3,724,114
2.81
8
Ms Gabriela Rodriguez Naranjo
2,600,000
1.96
9
Kin Group Pty Ltd
2,595,514
1.96
10
Mr Christopher Elmore Campbell
2,080,000
1.57
11
Mutual Trust Pty Ltd
1,809,091
1.36
12
Bankura Pty Ltd
1,700,000
1.28
13
Paris Pushkin Pty Ltd
1,529,474
1.15
14
DMX Capital Partners Limited
1,180,056
0.89
15
Salvage Pty Ltd
1,178,351
0.89
16
Vanward Investments Limited
1,020,103
0.77
17
Mr Bibhod Dotel
1,000,000
0.75
18
Ms Joanna Kelly
1,000,000
0.75
19
HSBC Custody Nominees (Australia) Limited
921,090
0.69
20
Sarah Rose Pty Ltd
800,595
0.60
119,328,585
89.98
HOLDING RANGE (SHAREHOLDERS) AS AT 5 SEPTEMBER 2025
Range
No. Holders
Total No. Shares
%
1 - 1,000
65
33,523
0.03
1,001 - 5,000
139
383,661
0.29
5,001 - 10,000
58
438,250
0.32
10,001 - 100,000
80
3,258,040
2.46
100,001 +
55
128,500,993
96.90
397
132,614,467
100.00
UNMARKETABLE PARCELS AS 5 SEPTEMBER 2025
Minimum Parcel Size
No. Holders
Units
Minimum $500 parcel at $0.11 per unit
4,546
190
347,994
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
- 58 -
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
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
GLOSSARY
- 59 -
AAC
Academies Australasia College Pte. Limited
AAHB
Academies Australasia Hair & Beauty Pty Limited
AAI
Academies Australasia Institute Pty Limited
AAPoly
Academies Australasia Polytechnic Pty Limited
AASB
Australian Accounting Standards Board or a numbered Standard issued by it
ACT
Australian College of Technology Pty Limited
AIHS
Australian International High School Pty Limited
AKG
Academies Australasia Group Limited – (ACN 000 003 725)
AOE
Academy of English Pty Limited
ASIC
Australian Securities and Investments Commission
ASX
Australian Securities Exchange
BIT
Bachelor of Information Technology
BMC
Benchmark Resources Pty Limited - trading as Benchmark College
Board
Board of Directors of AKG
CBC
Clarendon Business College Pty Limited
College
Subsidiary company of AKG that is licensed to operate as an education institution
Company
AKG
Corporations Act
Corporations Act 2001 (Cth)
CRICOS
Commonwealth Register of Institutions and Courses for Overseas Students
CSF
International College of Capoeira Pty Limited - trading as College of Sports & Fitness
DE
Discover English Pty Limited
Directors
Board of Directors of AKG
EBITDA
Earnings before interest, taxation, depreciation and amortisation
EPS
Earnings per share
FVTPL
Fair value through profit and loss
FVOCI
Fair value through other comprehensive income
FY25 to FY31
Financial Year to 30 June 2025 to Financial Year to 30 June 2031, respectively
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
GLOSSARY
- 60 -
Group
AKG and all its subsidiaries
GST
Goods and Services Tax
HE
Higher Education
IHEA
Independent Higher Education Australia (Previous name: Council of Private Higher Education
– COPHE)
LLI
Language Links International Pty Limited
MIT
Master of Information Technology
NOSC
New Overseas Student Commencement
NPL
National Planning Level
OCI
Other Comprehensive Income
PCP
Previous corresponding period
PLAN
Employee incentive plan
PTA
Humanagement Pty Limited – trading as Print Training Australia
RBT
Kreate Pty Limited – trading as RuralBiz Training
ROUA
Right of Use Assets
RTO
Registered Training Organisation
SBC
Supreme Business College Pty Limited
Shares
Fully paid ordinary shares in AKG
SPT
CLB Training & Development Pty Limited as trustee for the CLB Unit Trust - trading as
Spectra Training Australia
STA
Transformations – Pathways to Competence and Developing Excellence Pty Limited - trading
as Skills Training Australasia
TAFE
Technical and Further Education
TEQSA
Tertiary Education Quality and Standards Agency
TPS
Tuition Protection Scheme
VET
Vocational Education and Training
VOS
Vostro Institute of Training Australia Pty Limited