ABN: 66 000 375 048
ANNUAL REPORT
For the financial year ended
30 June 2017
For personal use only
ASPERMONT LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE
2017
CORPORATE DIRECTORY
Directors
Andrew Leslie Kent
John Stark (Appointed Alternate Director May 2017) 11/37 Bligh Street
Colm O’Brien (resigned May 2017)
Sydney NSW 2000
Alex Kent
Rhoderic Whyte (resigned May 2017)
Geoffrey Donohue (appointed October 2016)
Christian West (appointed May 2017)
Clayton Witter (appointed May 2017)
Auditors
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
Solicitors
Stephen Roy Webster
Company Secretary
David Straface
Key Management Personnel
Alex Kent – Managing Director, Group
Nishil Khimasia – Chief Financial Officer, Group
Robin Booth – General Manager Publishing
Ajit Patel – Chief Operating Officer, Group
Share Registry
Advanced Share Registry Services
110 Stirling Hwy
Nedlands WA 6009
Bankers
ANZ Banking Group Limited
7/77 St Georges Terrace
Perth WA 6000
Registered Office
613-619 Wellington St
Perth WA 6000
Telephone: (08) 6263 9100
Facsimile: (08) 6263 9148
Postal Address
PO Box 78
Leederville WA 6902
Australian Stock Exchange Limited
ASX Code : ASP
Website
www.aspermont.com
1
For personal use only
ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
DIRECTOR’S REPORT AND OPERATIONAL HIGHLIGHTS
FOR THE YEAR ENDED 30 JUNE 2017
Full Year Results – Improved Margins and a Return to Positive Earnings.
Aspermont, the leading media services provider to the global resources industry,
announces its results for the twelve months ended 30 June 2017 ahead of release of full
annual report following the change of balance sheet date to September 2017.
The Group has made significant progress this year; returning the company to positive
earnings and profitability (on a normalised basis), transforming the balance sheet
through the elimination of long-term debt and completing the sale of our problematic
joint venture in Beacon Events which had been a 5 year drain on management time and
company resources.
Our key highlights presented below show prior year variances on both a reported and
constant currency basis. In FY17 Brexit had a unique impact on AUD-GBP exchange rates
FY 17 – Key Highlights
$ Millions
FY17
Variance
Variance
PY
@Constant
currency
Group Revenue including discontinued
$20.8
(8%)
+5%
Revenue from continuing operations
$11.4
(10%)
(2%)
Digital Revenue from continuing operations
$2.8
+16%
+27%
Subscriptions Revenue from continuing operations
$4.4
+2%
+7%
Subscriptions Cash receipts from continuing operations
$5.1
+21%
+27%
FY 17
FY 16
Variance
PY
Gross Margin %
16%
10%
+6%
(pre overheads/ group adjustments)
Normalised EBITDA 1
$0.1
($1.1)
+$1.3
EBITDA
($1.8)
($1.8)
+$0.02
Normalised Profit/(Loss) for the year 2
$0.04
($6.8)
+$6.9
Profit/(Loss) for the Year
($1.2)
($6.8)
+$5.6
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
DIRECTOR’S REPORT AND OPERATIONAL HIGHLIGHTS
FOR THE YEAR ENDED 30 JUNE 2017
Net Assets
$8.8
$1.2
+$7.6
Note 1 – EBITDA pre-exceptional one-off charges of $1.8m in FY 17 and $0.7m in FY 16
Note 2 – Reported profit for the year adjusted for fair value adjustment of Loan receivable
Operational Highlights
The Company has delivered strong growth in digital advertising and subscriptions this
year, whilst gross margins have continued to improve. The momentum in our
subscriptions business which is the key strategic growth driver to our overall commercial
model has seen a strong growth in all its key SAAS indicators.
Subscription orders are growing with significant price uplifts (ARPU) alongside gains in
customer loyalty and renewal rates.
The Key subscriptions SAAS metrics are highlighted below:
FY17
IMPROVEMENT
Orders
Renewal Rate (Volume)
8,963
78%
Annual Contract Value (ACV)
$5.1m
ARPU
Sessions
Users
Lifetime Years
$600
4.0m
1.4m
4.5
Lifetime Value
$22.7m
Loyalty Index
Client Acquisition Cost (CAC)
52%
51
4%
6%
14%
16%
5%
27%
19%
35%
27%
12%
The large growth in both ACV and lifetime value of subscriptions emanates from
improvements in all other indicators listed and it is these two metrics that are the most
important growth measures within the business.
Commenting, Alex Kent, Managing Director of Aspermont said:
“The second half of this financial year saw the completion of our 2 year transformation
programme and the migration of all our brands onto the Project Horizon platform. As a
direct consequence of this and further investments in people and content we saw large
3
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
DIRECTOR’S REPORT AND OPERATIONAL HIGHLIGHTS
FOR THE YEAR ENDED 30 JUNE 2017
lifts in subscription cash collected for H2 most of whose revenues will be recognised in
FY18. Digital advertising continued to grow solidly and in offset to continued print
decline.
This year through successful capital raisings, debt conversion and asset disposal we have
also transformed our balance sheet and at the same time brought the company back to
positive earnings.
Our new management team has been aligned with a highly capable new board and we
look forward to a positive FY18 as the company enters an accelerated and sustained New
Growth phase.”
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
DIRECTOR’S REPORT AND OPERATIONAL HIGHLIGHTS
FOR THE YEAR ENDED 30 JUNE 2017
Comparative year on year results for the business for the year ended 30 June
2017
Revenue
Advertising - Digital
Advertising - Print
Subscriptions
Other
Total continuing operations
Discontinued publishing products
Discontinued conferencing revenue
Total segment revenue
Result
Segment result
Segment margin
2017
$000
2,773
4,108
4,406
123
11,410
-
9,394
20,804
2016
$000
2,384
5,779
4,337
123
12,623
1,427
8,485
22,536
3,239
16%
2,299
10%
The reconciliation of statutory earnings to EBITDA is as follows:
2017
$000
2016
$000
Loss from continuing operations before
income tax expense
(10,443)
(6,510)
Add back:
Interest
Depreciation and amortisation
Impairment of receivables
Impairment of intangible assets
Discontinued
continued operations*
operations
relating
to
Subtract:
Re-estimation of Beacon put option liability
Other income
Foreign exchange
Net profit attributable to the non-controlling
interest (excluding preferred dividend)
EBITDA
Exceptional one-off charges
Normalised EBITDA
1,183
545
-
6,395
869
-
(334)
-
-
(1,785)
1,845
60
1,758
544
203
6,165
(76)
(3,387)
(502)
(363)
359
(1,809)
710
(1,099)
*While the amounts relating to the discontinued operations have been classified in discontinued
operations the gain/(loss) relates to the shareholders of Aspermont
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
DIRECTOR’S REPORT AND OPERATIONAL HIGHLIGHTS
FOR THE YEAR ENDED 30 JUNE 2017
Outlook for the upcoming 2017/2018 year:
Aspermont has lodged an investor presentation (with supporting text commentary) to the
market outlining the company’s execution priorities over the next 12 months and also its
growth strategies over the next few years.
The company intends to:
• Continuing the organic build of its core and ancillary revenue bases
• Leverage its existing infrastructure to scale its model into new markets
• Target other iconic print brands (such as the 200 years old Mining Journal) for
potential acquisition and successful digitalization
Over the next 12 months our focus will be on:
1. Launching new business lines in events, data and research
2. Launching the next version of our Project Horizon platform (V4)
3. Accelerating subscriptions growth and Lifetime Value
4. Continuing development on our integrated sponsorship solutions for client
For further details on all these new strategies and our overall picture please do refer to
our recent investor presentation.
Summary
After a 2 year transformation Aspermont now has the world’s leading industrial content
for the global resources industry
The company has a clear and substantial growth opportunity to leverage its platform and
digital media expertise, to aggressively expand the business across multiple geographies
and sectors
Our high performance SAAS based subscription model, with growing profitability, high
quality recurring revenues and world leading customer endorsements position us to
maximize our short term objectives and;
With a relentless focus on executing growth opportunities, with a highly capable and
aligned board and management team, we are set to experience an accelerated and
sustained new growth phase
Yours sincerely,
Alex Kent
Managing Director
Aspermont Limited
6
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017
The Directors present their twelve month interim report on the consolidated entity
(referred to hereafter as the Group) consisting of Aspermont Limited and the entities it
controlled at the end of, or during, the year ended 30 June 2017. The full financial report
will be published reporting on the 15 months to September 2017 following the change in
the balance sheet date recently announced.
Directors
The following persons were directors of Aspermont Limited during the financial year and up
to the date of this report:
Andrew L. Kent
John Stark (appointed Alternate Director May 2017)
Colm O’Brien (resigned May 2017)
Alex Kent
Rod Whyte (resigned May 2017)
Geoffrey Donohue (appointed October 2016)
Christian West (appointed May 2017)
Clayton Witter (appointed May 2017)
Principal activities
The Group’s principal activities during the year were to provide market specific content
across the Resources sectors through a combination of print, digital media channels and
face to face networking channels.
Operating results
The operating loss after tax for continuing operations was $11.9 million (2016: loss $6.2
million). The operating profit after tax for discontinued operations was $10.7 million
(2016: loss $0.6 million). The consolidated loss after tax for the group was $1.2 million
(2016: loss $6.8 million).
Dividends
No dividend has been declared for the year (2016: no dividend).
Review of operations
A review of the operations of the Group during the financial year has been set out in pages
2 to 8 of this report.
Modification to Review Report
The group auditor has included a qualification in the Review Report in relation to
consolidating the disposed events business results up to the date of disposal and the profit
on disposal of the Events business. The Group did not have access to books and records
at date of disposal and the information provided is based on management’s best estimate
of the financial information of the subsidiary at date of disposal. The Group auditor has
also included an emphasis of matter paragraph relating to the going concern of the Group.
The directors’ disclosure on going concern is located in Note 3.
The Directors believe it is appropriate to prepare the financial statements on a going
concern basis as there are no matters existing to indicate that the consolidated entity will
be unable to manage the matters referred to in Note 3 and above in the next 12 months.
7
For personal use only
ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017
Significant changes in the state of affairs
The significant changes in the state of affairs of the Group during the financial period are
outlined in the preceding review of operations.
Events subsequent to the end of the half year
No events subsequent to 30 June 2017 require disclosure.
Likely developments and expected results of operations
The upcoming year is expected to be one of further development in our Technology base
and business models, alongside a return to profitability for the Group.
Environmental regulations
Environmental regulations do not have any impact on the Group, and the Group is not
required to report under the National Greenhouse and Energy Reporting Act 2007.
AUDITORS DECLARATION
The lead auditor’s independence declaration is set out on page 9 and forms part of the
director’s report for the year ended 30 June 2017.
ROUNDING OF AMOUNTS
The parent entity has applied the relief available to it under Legislative Instrument
2016/191 and accordingly, amounts in the financial statements have been rounded off to
the nearest thousand dollars, unless otherwise stated.
Dated at Perth this 31st August 2017
Signed in accordance with a resolution of Directors:
Alex Kent
Managing Director
8
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Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF ASPERMONT LIMITED
As lead auditor for the review of Aspermont Limited for the year ended 30 June 2017, I declare that, to
the best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the review; and
2. No contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Aspermont Limited and the entities it controlled during the period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth, 31 August 2017
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for
the acts or omissions of financial services licensees
9
For personal use only
ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Consolidated Income Statement for the year ended 30 June 2017
Continuing operations
Revenue
Cost of sales
Gross Profit
Distribution expenses
Marketing expenses
Occupancy expenses
Corporate and administration
Finance costs
Other expenses
Change in fair value of investments
Re-estimation of Beacon put option
Other income
Impairment of loan receivables
Note
2017
$000
Restated
2016
$000
11,410
(5,292)
6,118
(554)
(2,137)
(1,140)
(4,163)
(1,183)
(1,323)
-
-
334
-
14,051
(6,848)
7,203
(972)
(2,877)
(1,341)
(2,217)
(1,758)
(2,521)
(85)
3,387
1,039
(203)
Impairment of intangible assets
5
(6,395)
(6,165)
tax benefit/(expense)
Profit/(loss) from continuing operations
before income tax expense
Income
continuing operations
Profit/(loss) for the year from continuing
operations
Profit/(loss)
(attributable to equity holders of the company)
Profit for the year
discontinued
operation
relating
from
to
(10,443)
(6,510)
(1,516)
318
(11,959)
(6,192)
10
10,728
(637)
(1,231)
(6,829)
Profit/(loss) attributable to:
Net profit/(loss) attributable to non-controlling
interest
Net loss attributable to equity holders of the
parent entity
456
(359)
(1,687)
(6,470)
(1,231)
(6,829)
The accompanying notes form part of these consolidated financial statements.
10
For personal use only
ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Consolidated Income Statement for the year ended 30 June 2017
Note
Cents
2017
Restated
Cents
2016
Earnings per share for profit from continuing
operations attributable to the ordinary equity
holders of the company
Basic and diluted earnings/(loss)
(0.75)
(0.39)
Earnings per share for profit from discontinued
operations attributable to the ordinary equity
holders of the company
Basic and diluted earnings/(loss)
Earnings per share for profit attributable to the
ordinary equity holders of the company
0.67
(0.04)
Basic and diluted earnings/(loss)
(0.08)
(0.43)
The accompanying notes form part of these consolidated financial statements.
11
For personal use only
ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Consolidated Statement of Comprehensive Income for the year ended 30 June
2017
Note
2017
$000
Restated
2016
$000
Net profit/(loss) after tax for the year
(1,231)
(6,829)
Other comprehensive income/(loss)
(Items that will be reclassified to profit or loss)
Foreign currency translation differences for
foreign operations
Other comprehensive income/(loss) for the
period net of tax
Total comprehensive loss for the year (net
of tax)
Total comprehensive income/(loss) attributable
to:
Non-controlling interest
Owners of Aspermont Limited
Total comprehensive income for the year
attributable to owners of Aspermont Limited
arises from:
Continuing operations
Discontinued operations
128
128
(2,283)
(2,283)
(1,103)
(9,112)
182
(1,285)
(517)
(8,595)
(1,285)
182
(8,595)
(517)
The accompanying notes form part of these consolidated financial statements.
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Consolidated Balance Sheet as at 30 June 2017
Note
2017
$000
2016
$000
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Financial assets
Property, plant and equipment
Deferred tax assets
Intangible assets and goodwill
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Income in advance
Borrowings
Income tax payable
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Deferred tax liabilities
Provisions
Other liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Parent entity interest
Non-controlling interest
TOTAL EQUITY
10
5
6
6
2,626
1,476
4,102
1,795
3,734
5,529
4,481
101
90
1,725
7,756
14,153
18,255
4,470
2,999
124
17
26
-
68
155
3,137
17,729
21,089
26,618
7,235
5,788
5,141
373
-
7,636
18,537
-
1,725
53
-
1,778
9,414
8,841
3,120
3,129
95
562
6,906
25,443
1,175
7
65,565
56,433
(11,132)
(10,150)
(45,592)
(43,905)
8,841
2,378
-
(1,203)
8,841
1,175
The accompanying notes form part of these consolidated financial statements
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Consolidated Statement of Changes in Equity for the year ended 30 June 2017
Issued
Capital
Accumulated
Losses
Other
Reserves
Share
Based
Reserve
Currency
Translation
Reserve
Fixed
Assets
Reserve
Sub-
Total
Non-
Controlling
Interest
Total
Balance at 1 July 2015
Profit/ (loss) for the year
$000
54,158
-
$000
(38,649)
(6,470)
$000
(8,053)
-
$000
$000
$000
1,458
-
9
-
(276)
-
$000
8,647
(6,470)
$000
(685)
(359)
$000
7,962
(6,829)
Other comprehensive income
Foreign currency translation differences for
foreign operations
Realised loss on equity investments transferred
Financial assets reserve movements
Income tax relating to components of other
comprehensive income
Total Comprehensive income
Transactions with owners in their capacity
as owners;
Share issued (net of issue cost)
Transfer of option reserve on vested options
-
-
-
-
-
-
-
-
-
(6,470)
2,275
-
-
1,214
-
-
-
-
-
-
-
Balance at 30 June 2016
56,433
(43,905)
(8,053)
-
-
-
-
-
-
(1,163)
295
(2,125)
-
-
-
(2,125)
-
-
-
-
-
-
-
-
-
(2,116)
(276)
(2,125)
-
-
-
(8,595)
(158)
-
-
(2,283)
-
-
-
(517)
-
(9,112)
(2,275)
51
2,378
-
-
(1,203)
(2,275)
51
1,175
Balance at 1 July 2016
56,433
(43,905)
(8,053)
295
(2,116)
(276)
2,378
(1,203)
1,175
Profit/(loss) for the year
Other comprehensive income
Foreign currency translation differences for
foreign operations
Total Comprehensive income
Transactions with owners in their capacity
as owners:
Shares issued (net of issue costs)
Issue of share options
Disposal of non-controlling interest
-
-
-
9,132
-
-
(1,687)
-
(1,687)
-
-
-
-
-
-
-
-
(1,901)
Balance at 30 June 2017
65,565
(45,592)
(9,954)
-
-
-
-
521
-
816
-
398
398
-
-
-
-
-
-
-
-
-
(1,687)
456
(1,231)
398
(274)
128
(1,289)
182
(1,103)
9,132
521
(1,901)
-
-
1,021
9,132
521
(880)
(1,718)
(276)
8,841
-
8,841
The accompanying notes form part of these consolidated financial statements.
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For personal use only
ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Consolidated Statement of Cash Flows for the year ended 30 June 2017
Note
2017
$000
2016
$000
Cash flows from operating activities
Cash receipts from customers
Cash payments to suppliers and employees
Interest and other costs of finance paid
Interest received
Income tax paid
Net cash (used in)/ from operating activities
Cash flows from investing activities
Payments for investments
Proceeds from sale of equity investments
Proceeds from disposal discontinued operations
10
Payments for plant and equipment
Payment for intangible assets
19,435
24,889
(23,462)
(24,550)
(45)
(496)
-
-
(4,072)
(16)
-
4,192
(19)
(177)
2
359
204
(691)
7
-
(85)
(125)
Net cash from/(used in) investing activities
3,980
(894)
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Proceeds from borrowings
Repayment of borrowings
Net cash from financing activities
Net increase in cash held
Cash at the beginning of the year
Effects of exchange rate changes on the balance of cash
held in foreign currencies
Cash at the end of the year
Cash flows of discontinued operation
10
3,193
(296)
-
(1,911)
986
894
1,795
1,879
(63)
512
(950)
1,378
688
1,645
(63)
(538)
2,626
1,795
The accompanying notes form part of these consolidated financial statements.
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
1. Reporting entity
Aspermont Limited (the “Company”) is a company limited by shares incorporated in Australia
whose shares are publicly traded on the Australian Stock Exchange. The consolidated financial
statements of Aspermont Limited and it’s controlled entities (together referred to as the
“Group”) for the year ended 30 June 2017 comprises the Company and its subsidiaries and the
consolidated entity’s interests in associates and jointly controlled entities.
The consolidated annual financial statements of the consolidated entity as at and for the year
ended 30 June 2016 are available on request from the Company’s registered office at 613-619
Wellington Street, Perth WA 6000 or at www.aspermont.com.
Comparatives
Where applicable, certain comparatives have been adjusted to conform to current year
presentations.
Statement of compliance
2.
The consolidated year-end financial statements are general purpose financial statements which
have been prepared in accordance with Australian Accounting Standards AASB 134 Interim
Financial Reports and the Corporations Act 2001.
The consolidated year-end financial statements do not include all of the information required
for annual financial statements, and should be read in conjunction with the consolidated annual
financial statements of the consolidated entity as at and for the year ended 30 June 2016.
The consolidated financial statements were approved by the directors on 30th August 2017.
The Company is of a kind referred to in Legislative Instrument 2016/191 and in accordance
with the Legislative Instrument, amounts in the consolidated interim financial statements have
been rounded off to the nearest thousand dollars, unless otherwise stated.
The Company during the year applied and was granted approval for the transition from a year
end of 30 June to 30 September.
3. Going concern
The financial statements have been prepared on the basis that the entity is a going concern,
which contemplates the continuity of normal business activity, realization of assets and
settlement of liabilities in the normal course of business.
For the year ended 30 June 2017 the entity recorded a loss for the year of $10.4 million from
continuing operations before income tax and had net cash outflows from operating activities of
$4.1 million.
The ability of the entity to continue as a going concern is dependent on the group generating
positive operating cash flows and/or securing additional funding through the raising of debt
or equity to continue to fund its operational and marketing activities.
These conditions indicate a material uncertainty that may cast a significant doubt about the
entity’s ability to continue as a going concern and, therefore, that it may be unable to realise
its assets and discharge its liabilities in the normal course of business.
Management believe there are sufficient funds to meet the entity’s working capital
requirements and as at the date of this report.
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
The financial statements have been prepared on the basis that the entity is a going concern,
which contemplates the continuity of normal business activity, realisation of assets and
settlement of liabilities in the normal course of business for the following reasons:
• The Directors have forecasted the group to generate positive operating cash flows in
the next 12 months through an increase in revenue in the digital and subscription
revenue streams.
• The Directors expect the Group to be successful in securing additional funds through
debt or equity issues if the need arises.
Should the entity not be able to continue as a going concern, it may be required to realise its
assets and discharge its liabilities other than in the ordinary course of business, and at
amounts that differ from those stated in the financial statements and that the financial report
does not include any adjustments relating to the recoverability and classification of recorded
asset amounts or liabilities that might be necessary should the entity not continue as a going
concern.
4. Significant accounting policies
Certain new accounting standards and interpretations have been published that are mandatory
for 30 June 2017 interim reporting period and these did not result in any changes to the
accounting policies or disclosures for the year end.
(a) Discontinued operations
A discontinued operation is a component of the entity that has been disposed of or is classified
as held for sale and that represents a separate major line of business or geographical area of
operations, is part of a single co-ordinated plan to dispose of such a line of business or area of
operations, or is a subsidiary acquired exclusively with a view to resale. The results of
discontinued operations are presented separately in the statement of profit or loss.
17
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
5. Intangible assets
Consolidated
Goodwill
$000
Software
$000
Purchased
masthead
s
$000
Other
acquired
assets
$000
Total
$000
Gross carrying amount
Balance at 1 July 2015
Additions
Currency movements
Disposals
21,399
-
(1,443)
-
3,216
125
(107)
-
11,565
2,388
38,568
-
(1,005)
-
-
(5)
(1,113)
125
(2,555)
(1,118)
Balance at 30 June 2016
19,956
3,234
10,555
1275
35,020
Additions
Currency movements
Disposals
-
(1,006)
(6,357)
177
(46)
(402)
-
(493)
-
-
-
-
177
(1,545)
(6,759)
Balance at 30 June 2017
12,593
2,963
10,062
1,275
26,893
Accumulated
Amortisation
Balance at 1 July 2015
(6,132)
(2,535)
(1,992)
(2,101)
(12,760)
Amortisation expense
-
(250)
Impairment
Reversal of impairment
Currency movements
Disposal
(8,047)
-
761
-
-
-
106
-
Balance at 30 June 2016
(13,418)
(2,679)
Amortisation expense
-
(779)
-
-
1,882
110
-
-
-
Impairment
Currency movements
Disposals
(3,780)
685
3,920
-
44
760
(2,615)
-
-
(201)
-
-
(5)
1,113
(451)
(8,047)
1,882
972
1,113
(1,194)
(17,291)
(81)
-
-
-
(860)
(6,395)
729
4,680
Balance at 30 June 2017
(12,593)
(2,654)
(2,615)
(1,275)
(19,137)
Net Book Value
As at 30 June 2016
6,538
555
10,555
81
17,729
As at 30 June 2017
-
309
7,447
-
7,756
18
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
5.
Intangible assets (continued)
During the year an analysis was performed in respect of the Purchased Mastheads and
Goodwill. As part of impairment testing performed for the financial year 30 June 2017 it was
noted that the carrying amount of the Goodwill exceeded its recoverable value which resulted
in an impairment of $3.8 million. The combined impairment arising from the Mastheads and
the Goodwill amounted to $6.4 million. During the year there was a disposal of Beacon which
resulted in the removal of Goodwill which had a carrying amount of $6.4 million and
accumulated impairment of $3.9 million. Further information in relation to the disposal is
contained within Note 10.
(a) Impairment tests for intangible assets
Intangible assets are allocated to the Group’s cash generating units (CGUs) identified
according to business segment and country of operation. The recoverable amount of each CGU
is based on value-in-use calculations using business plans and estimated terminal values for
each CGU.
2017
Total
$000
2016
Total
$000
Goodwill
Conferencing
Conferencing impairment
Publishing (print & online)
Publishing impairment (print)
Foreign exchange reserve
Software
Cost
Accumulated Amortisation
Purchased Mastheads
Mastheads (print & online)
Mastheads impairment (print)
Foreign exchange reserve
Other Intangible Assets
Acquired intangibles assets
Impairment
Accumulated amortisation
-
-
16,118
(12,593)
(3,525)
-
2,954
(2,645)
309
12,279
(2,615)
(2,217)
7,447
1,275
(81)
(1,194)
-
5,661
(4,049)
16,118
(9,374)
(1,818)
6,538
3,233
(2,678)
555
12,279
-
(1,724)
10,555
1,275
(100)
(1,094)
81
Total Intangible Assets
7,756
17,729
19
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
5.
Intangible assets (continued)
Intangibles are allocated to the CGU’s as follows:
Publishing
Cumulative impairment
Conferencing
Cumulative impairment
2017
Total
$000
26,884
(19,128)
7,756
-
-
-
2016
Total
$000
28,450
(13,233)
15,217
6,561
(4,049)
2,512
Total Intangible Assets
7,756
17,729
(b) Key assumptions used for value-in-use calculations
The Company has reviewed the Intangible assets for impairment.
Intangible assets are allocated to the Group’s cash generating units (CGUs) identified
according to business segment. The recoverable amount of each CGU is based on value-
in-use calculations using business plans and estimated terminal values for each CGU.
Publishing
Conferencing
2017
2016
Discount
rate
Discount
rate
15.1%
n/a
13.9%
8.7%
Cash flow forecasts were used based on the EBITDA for each Cash Generating Unit as per
the Group’s latest five-year business plan consistent with its use at 30 June. The discount
rates used reflect specific risks relating to the relevant segments and the countries in
which they operate.
20
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
5.
Intangible assets (continued)
These assumptions have been used for the analysis of each CGU within the business
segment. Management determined budgeted gross margin based on past performance
and its expectations for the future. If any of these assumptions were to change this could
affect the carrying amounts of the intangible assets.
Cash flow forecasts were used based on the EBITDA for each Cash Generating Unit as per
the Group’s latest five-year business plan approved by the board on the following basis:
• Year 1 cash flows - Based on current management forecast in line with current
trending.
• Year 2-5 cash flows:
❖ Average EBITDA growth of 118% as a result of the following underlying
assumptions:
o A revenue decline of 10% has been assumed for printed products
businesses as management expect structural change to continue.
Assumptions have been made in line with past performance and
management’s expectation of market development.
o Revenue growth of 25% is assumed in the digital businesses based on
roll-out and
market maturity of established products, continued
introduction of new products and services through product extensions and
continued channel development.
o Revenue growth of 10% in subscriptions – these assumptions are in line
with current performance, industry trends and management’s expectation
of market development.
o A lower expense growth as a result of the digital platform relative to the
growth in revenues as the business continues to scale.
o Expansion of new Publishing initiatives as it improves penetration in North
American market, roles out new products and services and launches the
events business.
o Expenses expected to grow in line with business expansion and managed
following restructuring initiatives which have already produced a cost
saving trend.
Long Term Growth Rate – a terminal value of growth into perpetuity of year 5 cash flows
equivalent to 8 times multiple for Publishing using the discount rate.
Each of the above factors is subject to significant judgement about future economic
conditions and the ongoing structure of the publishing and digital industries. Specifically,
the Directors note that the extent and duration of the structural change in print
advertising is difficult to predict. The Directors have applied their best estimates to each
of these variables but cannot warrant their outcome.
The discount rates used reflect specific risks relating to the relevant segments and the
countries in which they operate. The increase in the rate for Publishing in this financial
year reflects the change in capital mix in that segment.
Management determined budgeted EBITDA margin based on past performance and its
expectations for the future. If any of these assumptions were to change this could affect
the carrying amounts of the intangible assets.
21
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
5.
Intangible assets (continued)
Impact of possible changes in key assumptions
The calculations are sensitive to changes in key assumptions as set out below:
The recoverable amount of the CGU would equal the carrying amount if the key
assumptions were to change as follows:
•
•
Discount rate – increase from 15.1% to 16.4%,
Year 1 to 5 cash flow forecasts – reduction of 20% EBITDA year on year.
(c) Mastheads
The Mastheads support the brand acquired which has been publishing for a significant
period of time (circa 100 years) and although content is distributed both in print and
digital format, both content is driven off the mastheads which have not changed and the
same brand content is marketed. There is no reason for these mastheads not be used
indefinitely given the brand recognition and market position.
6. Borrowings
Current
Unsecured loans from external parties
Secured loans from external parties
Loans from related parties
Non-Current
Secured Liabilities
Loans advanced for convertible debt
2017
$000
2016
$000
-
-
124
245
1,565
3,331
124
5,141
-
-
3,120
3,120
Due to the short-term nature of these payables, their carrying value is assumed to
approximate their fair value.
22
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
7. Issued capital
2017
#
2016
#
2017
$000
2016
$000
Fully paid ordinary shares
1,848,363,913
958,700,907
65,565
56,433
Ordinary shares
At the beginning of the reporting period
958,700,907
724,918,019
56,433
54,158
Shares issued during the year:
Rights issue
68,217,100
233,782,888
Shares
conversion (see note 10)
issued as part of debt/equity
Private placement of fully paid ordinary
shares
Share issue costs
581,429,406
229,516,500
10,500,000
-
-
-
714
5,814
2,900
(296)
2,368
-
-
(93)
At Reporting date
1,848,363,913
958,700,907
65,565
56,433
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in
proportion to the number of shares held. At shareholders’ meetings, each ordinary share is
entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show
of hands.
23
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
8. Key management personnel and related parties disclosures
(a) Liabilities and loans from director related entities
Unsecured loans
Beginning of year
Loan advances
Loan repayments
Loan conversion to ordinary shares
Interest charged at 9.5% (2016: 9.5%)
End of year
2017
$
2016
$
3,331,000
2,834,807
681,540
1,928,800
(1,053,710)
(1,586,664)
(2,799,599)
(150,000)
77,401
304,057
236,632
3,331,000
The Company sought and was granted approval from shareholders to convert loans from
related parties into equity.
(b) Convertible debt with key management personnel and director related entities
Unsecured loans
Beginning of year
Loan advances
Loan repayments
Loan conversion to ordinary shares
Interest charged at 10% (2016: 10%)
Finance charge arising from ratchet feature
End of year
2017
$
2016
$
2,616,530
1,389,997
-
-
(2,660,374)
43,844
-
-
222,409
(179,501)
-
157,079
1,026,547
2,616,530
The settlement of the convertible debt during the year ended 30 June 2017 gave rise to a
finance charge. The year ended 30 June 2016 finance charge amounted to $1.9m. Subsequent
to 30 June 2016 an additional finance charge totalling $1.1m was incurred. The finance charge
arose through accelerated interest arising from the convertible debt which granted additional
shares and options to the relevant holders.
24
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
9. Segment information
The economic entity primarily operates in the media publishing industry as well as in
conferencing and investments, within Australia and in the United Kingdom.
Segment Reporting:
2017
Revenue
Advertising - Digital
Advertising - Print
Subscriptions
Conferencing & Other revenue
Total segment revenue
Revenue by Geography
Australia/ Asia
Europe
Other
Total revenue
Result
Segment result
Unallocated items:
Corporate overheads
Depreciation
Amortisation
Impairment of intangible assets
Other income
Gain on disposal of
discontinued operation
Finance costs
Profit for year before
income tax
Segment assets
Unallocated assets:
Cash
Deferred tax asset
Other assets
Total assets
Liabilities
Unallocated liabilities:
Provision for income tax
Deferred tax liabilities
Borrowings
Total liabilities
Publishing
$000
Conferencing
$000
Discontinued
Operation
$000
2,773
4,108
4,406
-
11,287
6,812
4,475
-
11,287
-
-
-
123
123
123
-
-
123
-
-
-
9,394
9,394
9,394
-
-
9,394
Total
$000
2,773
4,108
4,406
9,517
20,804
16,329
4,475
-
20,804
2,086
12
1,141
3,239
(5,988)
(566)
(86)
(6,395)
334
(1,356)
13,904
7,619
(5,988)
(566)
(86)
(6,395)
334
9,587
(1,356)
(1,231)
9,587
-
-
-
13,904
2,626
1,725
-
18,255
-
7,619
17
1,725
53
9,414
25
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
2016
Revenue
Advertising - Digital
Advertising - Print
Subscriptions
Conferencing & Other revenue
Total segment revenue
Revenue by Geography
Australia/ Asia
Europe
Other
Total revenue
Result
Segment result
Unallocated items:
Corporate overheads
Depreciation
Amortisation
Impairment of intangible assets
Other income
Re-estimation of Beacon put
option
Interest
Loss for year before income
tax
Segment assets
Unallocated assets:
Cash
Deferred tax asset
Other assets
Total assets
Liabilities
Unallocated liabilities:
Provision for income tax
Deferred tax liabilities
Borrowings
Total liabilities
Publishing
$000
Conferencing
$000
Discontinued
Operation
$000
Total
$000
2,384
5,779
4,337
-
12,500
7,261
5,239
-
12,500
-
-
-
123
123
123
-
-
123
151
1,075
201
8,485
9,913
9,913
-
-
9,913
2,535
6,855
4,538
8,608
22,536
17,297
5,239
-
22,536
1,475
-
823
2,299
(7,874)
(306)
(201)
(3,603)
(36)
(2,562)
(7,874)
(342)
(201)
(6,165)
2,149
3,387
(41)
(6,788)
15,217
-
2,512
17,729
1,794
3,137
3,958
26,618
11,796
-
5,004
16,800
373
3,129
5,141
25,443
26
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
9. Segment information (continued)
Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision maker. The chief operating decision maker has
been identified as the Managing Director who makes strategic decisions.
In line with the ongoing development and strategy of the Group’s trading business, the
reporting segments have in the current reporting period has been reduced into two broad
global categories, being Publishing (a combination of the Print and Digital segments used
previously) and Conferencing.
The segments derive revenue from the following products and services:
The Publishing segment derives subscription, advertising and sponsorship revenues from
traditional print publications across a number of trade sectors including the mining,
contracting, energy and resources sector as well as from internet based media which
includes the development and maintenance of websites and daily news services covering
various sectors including mining, energy, construction and mining longwalls.
The Conferencing segment derives revenues from running events and holding
conferences in various locations and across a number of sectors.
Segment revenue and expenses:
Segment revenue and expenses are accounted for separately and are directly attributable
to the segments.
Inter-segment transfers:
There are no significant inter-segment transactions at this time.
10. Discontinued operation
(a) Description
On 15th May 2017 the Group disposed of its 60% shareholding in its events business,
Beacon Events Limited (“Beacon”). This resulted in a gain of $9.6 million.
The Group did not have access to books and records at the date of the disposal and
accordingly net profit from discontinued operations has been recognised based on
management’s best estimate of the unaudited financial information in relation to Beacon.
27
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
10. Discontinued operation (continued)
(b) Financial performance and cash flow information
The financial performance and cash flow information presented is for the period 1 July
2016 to 15 May 2017 and the year ended 30 June 2016.
Revenue
Other income
Expenses
Profit before income tax
Income tax benefit/(expense)
Gain on sale of discontinued operation (refer c)
Profit after income tax of discontinued operation
2017
$’000
2016
$’000
9,394
-
(8,373)
1,021
120
9,587
10,728
8,485
650
(9,412)
(277)
(359)
-
(636)
Exchange differences on
operations
translation of discontinued
(684)
(396)
Other comprehensive
operations
income from discontinued
10,044
(1,032)
Net cash inflow from operating activities
Net cash inflow/(outflow) from investing activities
Net cash (outflow) from financing activities
Net increase in cash generated by subsidiary
810
93
-
903
585
(35)
-
550
28
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
10. Discontinued operation (continued)
(c) Sale Consideration
Details of the fair value of assets, liabilities and disposed intangible assets are as follows:
Consideration received or receivable:
Cash
Loan Receivable
Loan receivable (refer to Note 11)
Fair value adjustment (refer to Note 11)
Total fair value receivable
Total consideration
Carrying amount of net assets sold
Gain on sale before income tax and reclassification of
foreign currency translation reserve
Reclassification of foreign currency translation reserve
Income tax expense on gain
Gain on sale after income tax
2017
$’000
4,192
5,755
(1,274)
4,481
8,673
(791)
7,882
1,705
-
9,587
11. Fair value measurement
a) Convertible Debenture
The amount due in respect of convertible debentures per note 8 is classified as a
liability at fair value through profit or loss. As at the reporting date, the fair value of
the convertible debentures approximates the carrying value. The liability is
classified as level 3 in the fair value hierarchy due to the use of unobservable
inputs. As at 30 June 2017, convertible note of $23,188 remains.
• The debentures mature in June 2020;
• The debentures carry annual interest at the higher of 10% or BBSW + 5%;
• Holders have the option, after December 2015, to exchange a debenture for:
o An ordinary share in the Company for a price of the lower of $0.0175 or
the share issue price for any future capital raising before the maturity of
the debentures, and
o An additional option with each share obtained in the conversion, to
acquire an ordinary share in the Company at $0.03 within five years
from the debenture conversion date.
29
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES
Notes to the Consolidated Financial Statements for the year ended 30 June
2017
11. Fair value measurement (continued)
During the prior year, the convertible debentures were revalued reflecting the prior year
rights issue price at $0.01 and the revaluation resulted in an increase of $1.2 million in the
value of the loan and associated $1.2 million expense was taken into the Statement of
Profit or Loss for the 30 June 2016 year. During the current year there was a further
finance charge arising from the conversion which occurred in September 2016. That
amounted to an additional charge of $1.0 million.
b) Loan Receivable
In 2012 Aspermont transferred its events business ‘ABLEL’ to Beacon Events Limited.
Part of the consideration was the Aspermont Loan Note. The Aspermont Loan Note
remains enforceable. The terms of the Note are:
• Term: Started July 2012, 8 years maturing in July 2020
Interest rate: 3.5% per annum compounding monthly
•
Accounting standards require the amount recognised to be discounted from the expected
future value using an arms-length market interest rate and a rate of 12% has been used.
While the amount owed of $5.7 million has not altered, the accounting standard requires
the discounting from the end of the term to 30 June 2017, resulting in a downward fair
value adjustment of $1.3 million.
The Company is currently taking legal action to recover the full value of the loan
including accrued interest.
12. Commitments and contingent liabilities
The Group is not aware of any other contingent liabilities and unrecorded commitments at
the date of this report that would significantly affect the operations or state of affairs of
the Group.
13. After reporting date events
No matters or circumstance have arisen since the end of the year, which has 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 year end.
30
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ASPERMONT LIMITED AND ITS CONTROLLED ENTITIES 30 JUNE 2017
Directors’ Declaration
In the directors’ opinion:
1. the financial statements and notes set out on pages 10 to 30 are in accordance
with the Corporations Act 2001, including:
a) complying with Australian Accounting Standards, the Corporations
reporting
Regulation 2001 and other mandatory professional
requirements; and
b) giving a true and fair view of the consolidated entity’s financial position as
at 30 June 2017 and of its performance for the financial year ended on
that date; and
2. there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable; and
Note 2 confirms that the financial statements also comply with International
Financial Reporting Standards as issued by the International Accounting Standards
Board.
This declaration is made in accordance with a resolution of the Directors.
A. Kent
Director
31 August 2017
31
For personal use only
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR’S REVIEW REPORT
To the members of Aspermont Limited
Report on the Financial Report
We have reviewed the accompanying financial report of Aspermont Limited, which comprises the
consolidated balance sheet as at 30 June 2017, the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year ended on that date, notes comprising a statement of
accounting policies and other explanatory information, and the directors’ declaration of the
consolidated entity comprising the company and the entities it controlled at year end or from time to
time during the year.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the financial report based on our review. We conducted
our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a
Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on
the basis of the procedures described, we have become aware of any matter that makes us believe
that the financial report is not in accordance with the Corporations Act 2001 including: giving a true
and fair view of the consolidated entity’s financial position as at 30 June 2017 and its performance for
the year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial
Reporting and the Corporations Regulations 2001. As the auditor of Aspermont Limited, ASRE 2410
requires that we comply with the ethical requirements relevant to the audit of the annual financial
report.
A review of a financial report consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards
and consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of Aspermont Limited, would be in the same terms if given to the
directors as at the time of this auditor’s review report.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts
or omissions of financial services licensees
32
For personal use only
Basis for Qualified Conclusion
Disposal of Beacon Events Limited
Aspermont Limited’s 60% share in Beacon Events Limited (‘Beacon’) was disposed of during the period
resulting in a profit from discontinued operations of $10.728 million (refer to Note 10(b)) being included
in the consolidated income statement for the year ended 30 June 2017. The company was unable to
obtain access to the books and records of Beacon and therefore we were unable to obtain sufficient
appropriate evidence about the carrying amount of the investment in Beacon at the date of disposal and
Aspermont Limited’s share of Beacon’s profit for the period and the corresponding gain on disposal.
Consequently, we were unable to determine whether adjustments, if any, are necessary between
Aspermont Limited’s share of Beacon’s profit before income tax and the gain on sale of discontinued
operations as disclosed in Note 10(b), and the classifications of operating, investing and financing
activities in the consolidated statement of cash flows. Our conclusion has been modified accordingly.
Qualified Conclusion
Based on our review, which is not an audit, with the exception of the matter described in the
preceding paragraph, we have not become aware of any matter that makes us believe that the
financial report of Aspermont Limited is not in accordance with the Corporations Act 2001 including:
(i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2017 and of
its performance for the year ended on that date; and
(ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations
Regulations 2001.
Emphasis of matter – Material uncertainty relating to going concern
We draw attention to Note 3 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the
consolidated entity’s ability to continue as a going concern and therefore the consolidated entity may
be unable to realise its assets and discharge its liabilities in the normal course of business. Our
conclusion is not modified in respect of this matter.
BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth, 31 August 2017
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