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ABN: 66 000 375 048
ANNUAL REPORT
For the financial year ended
30 September 2020
Lodged with ASX under listing rule 4.2A.3
Aspermont Limited
Full Year Report
For the Year ended 30 September 2020
Table of Contents
Corporate Directory
Operational Highlights Report – Managing Director
Directors’ Report
Auditor’s independence declaration
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Information for Listed Public Companies
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Aspermont Limited
Full Year Report
For the Year ended 30 September 2020
CORPORATE DIRECTORY
Directors
Andrew Leslie Kent
John Stark (Alternate to Andrew Kent)
Alex Kent
Geoffrey Donohue
Christian West
Clayton Witter
Company Secretary
Tim Edwards
Other Key Management Personnel
Nishil Khimasia – Chief Financial Officer, Group
Ajit Patel – Chief Operating Officer, Group
Matt Smith – Chief Commercial Officer, Group
Leah Thorne – People Director, Group
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
Solicitors
Ian B. Mitchell & Associates
19-29 Martin Place
Sydney NSW 2000
Auditors
Elderton Audit Pty Ltd
Level 2, 267 St Georges Terrace
Perth WA 6000
Share Registry
Automic Registry Services
Level 2 / 267 St Georges Terrace
Perth WA 6000
Bankers
National Australia Bank Group
197 St Georges Terrace
Perth WA 6000
Australian Stock Exchange Limited
ASX Code: ASP
Website
www.aspermont.com
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
Recent History
Aspermont is the leading media services provider to the global resource industries.
Over the last 5 years the company has completed a comprehensive operational,
digital, and financial turnaround. The company has transitioned from 185 years as
a print publisher into a digital media and marketing business with 3 new business
models.
1. XaaS1 (‘Anything-as-a-Service’)
2. Services
3. Data
Timeframe:
In 2014 Aspermont was a Print Publisher and Live Events business with a
$40m turnover.
By 2017, 83% ($33.2m) of traditional revenues had been disrupted or
divested.
A new technology platform (Horizon) was developed over 2015-2017 to
support a high growth digital subscriptions business (XaaS).
By 2018 the XaaS model was established, enabling Aspermont to build a
range of new client products (Services).
New product divisions such as Research, Events, Content Agency, and
Content Marketing were launched, and are growing rapidly.
By 2017 Aspermont’s legacy advertising division, (still the largest product in
the Service business) had returned to growth with digital display growth more
than offsetting the decline in print advertising 2.
Aspermont’s digital audiences have grown extremely rapidly year on year
since 2015 providing the opportunity to develop a new lead generation
business (Data).
As of today, Aspermont ‘s business model has changed to such an extent that the
company bears little resemblance to the one it was 5 years ago.
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1 In Aspermont’s recent presentation and reports we have referenced our SaaS model. XaaS is simply a terminology
update for the group as the model is now referred to in this way by the market
2 To this day this remains an achievement of Aspermont’s that almost no other traditional print publishers; that
have survived the internet age, have matched
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
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The above slide shows the transformation of Aspermont from print publisher to
XaaS, Services and Data business.
Overview
FY20 has been a year of great achievement for Aspermont despite the disruptions
caused by COVID-19. The business has delivered a breakthrough in earnings to
confirm both the resilience and capability of our operational team and our robust
business models. Aspermont achieved several key milestones in audience
development this year whilst also launching new products and divisions.
At the Half Year stage, we stated that our developed technology and operational
structure had given Aspermont a new agility. Faced with massive disruptions from
COVID-19, we told investors that ‘we adapt with speed, and that’s what sets us
apart’. Comparing Aspermont’s FY20 performance to our peers in the global media
market underlines why we had confidence in that statement.
Over the last 12 months, despite COVID-19 causing the shutdown of live Events,
our overall business has reported strong growth in profitability, free cash flow and
in all other revenue streams.
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
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Performance Vs Guidance
Our guidance for FY20 had been for:
1. Continued top-line performance,
2. Improving bottom line and cashflow performance
3. Margin expansions (gross and net)
4. Continued growth in all audience and XaaS and metrics
The COVID-19 pandemic obliged us to remove that guidance, as announced on April
15th, and then we updated our prognosis in the Half Year report for:
1. Single digit growth for Media, as opposed to double digit
2. Single digit growth for subscriptions, as opposed to double digit
3. Low to no revenue for the Events division
4. Bolstered cashflow position through the initiation of various, defensive,
measures
The directors are pleased to announce that despite the difficulties faced through
COVID-19, all guidance has been met, except total revenue where COVID-19
directly impacted the Live Events business.
Aspermont reported a net cash figure of $0.4m at the Half Year stage which has
subsequently increased to over $4m at the time of writing in mid December.
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
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In the context of COVID-19 and its impacts on the global media market3, Aspermont
has delivered a strong set of results and is well positioned to deliver top line growth
with improved profitability in FY21.
Key Financial Highlights
Period Ended 30 September
2020
2019
Improvement
Media (1)
Subscriptions
Events & Other
$7.6m
$7.2m
$6.7m
$1.0m
$6.4m
$2.8m
Total Revenue
$15.2m
$16.4m
Gross Margins
59%
54%
+6%
+5%
-65%
-7%
+9%
Normalised EBITDA
$1.2m
$0.5m
+140%
Normalised
Cash
Flow
from
$2.3m
$0.9m
+156%
Operating Activities
Notes:
(1) Media’ revenues are a catchall aggregate for: Display Advertising, Content Marketing, Content Agency &
Lead Generation
Refer to Appendix 1 for full reconciliation of normalized figures
-
Actual Results
• Subscription revenue proves robust at 5% despite COVID-19 related payment
delays affecting revenue recognition figures. On a Subscriptions cash
collected basis the growth was at 7%
• Media revenue benefited from the launch of new products and services to
grow 6%, despite client marketing spend contractions due to economic
conditions
• An initial $0.7m of new revenue was generated from Lead Generation (Data)
and Content Agency divisions (both of which are included in the overall Media
revenue number).
• Events revenue was severely impacted by postponements and saw a 65%
decline.
• Gross Margins, EBITDA and Operating cashflow were impacted by COVID-19
related Event postponements.
• Despite COVID-19 all bottom-line indicators and margins saw strong growth
3 https://www.nytimes.com/2020/04/10/business/media/news-media-coronavirus-jobs.html
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
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COVID Impact on live Events and FY results
• Live Events from March onwards had to be postponed due to restrictions over
large public gatherings
• Consequently, pre-booked revenue has been shifted out of this financial year
and into FY21
• A new suite of virtual events and exhibitions (our VEE division) was launched,
as announced to the market with the launch of Investor Outreach and Future
Of Mining 365
• Revenues generated from the new VEE division will be recognized in FY21
• The postponement of Events revenue negatively impacted results for FY20
Key Audience Metrics
Aspermont audiences have grown extremely rapidly over the past 4 years. It took
the company 15 years to achieve 1 million Digital Users but only 4 years to more
than treble that audience at a 33% CAGR. This is highly significant as it enables
Aspermont to develop a new business model in Data that we will refer to later in
this report.
For the last 17 consecutive quarters Aspermont has delivered consistent growth
across all key XaaS metrics.
Key Subscriptions (XaaS) Metrics
As at
As at
Compound
June 2016
Sept 2020
Annual Growth
Number of Subscriptions (1)
7,158
7,849
Average Revenue Per Unit (ARPU)
$623
$1,071
Annual Contract Value (ACV)
$4.5m
$8.4m
Monthly Active Users
Digital Users
Renewal Rate (Volume)
Net Retention Rate (NRR)
Unit Economics
Lifetime Years
115k
1.1m
73%
82%
18:1
3.7
277k
3.7m
85%
101%
32:1
6.7
Lifetime Value (LTV)
$16.5m
$56.2m
Rate
2%
14%
16%
23%
33%
4%
5%
36%
15%
33%
Notes:
(1) Aspermont does not present the number of Paid Members per subscription, for competitive reasons. While
‘Number of Subscriptions’ orders shows low growth the actual number of Paid Members shows double digit
growth due to our successful ABM strategies. The increased member per subscription ratio also drive ARPU.
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
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Three of these metrics prominently highlight the growing demand for the company’s
subscriptions products and are significant for Aspermont’s future growth.
1. 14% CAGR in ARPU (Average Revenue Per Unit)
a. ARPU growth confirms that clients value Aspermont’s products and
services and find it beneficial to increase the capacity of those that
they subscribe to.
b. ARPU growth also demonstrates pricing power for those products and
services related to the client benefits they provide.
c. Increasing ARPU confirms stability in client base and the likelihood of
retention.
2. 100%+ NRR (Net Retention Rate)
a. A net retention rate above 100% means that growth from the existing
customer base more than offsets any losses from churn.
b. Aspermont’s current 101% net retention rate shows strong organic
growth. The company would have still grown revenue by 1% had it not
signed up any new customers and lost 15% (i.e. due to its 85%
renewal rate).
c. The company expects NRR to continue to trend higher going forward,
as it has done consistently over the last 4 years
3. 33% CAGR in Digital Users
a. The growing user base confirms increasing demand for Aspermont’s
products and services, but also determines the amount of data that
can be collected.
b. As Aspermont monetizes its Data, having a larger user base will allow
it to attract more clients and increase the quality and reach of its
services
c. Larger audiences also enable the company to analyze user trends and
demands to optimize existing product design and inform new product
generation.
Over the last few years Aspermont’s:
Pricing has almost doubled and exceeds $1k per unit
ACV has almost doubled and exceeds $8m
Digital Users have more than trebled
The LTV of subscriptions has more than trebled
Renewals rates continue to increase;
NRR has gathered momentum and now exceeds 100% 82% to 101%
$623 to $1,071
$4.5m to $8.4m
1.1m to 3.7m
$16m to $56m
73% to 85%
All things combined make Aspermont’s subscriptions business a high performing
asset which has not yet been recognised by the market as shown by the company’s
current valuation.
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
Valuation
Aspermont A$ 13.7m market capitalisation in October meant the company had a:
0.94x
0.3x
1.5x
Price to Sales Ratio
Lifetime Value of Subscriptions
Value of Recurring Subscriptions Revenue
Comparing Aspermont to other companies with similar business models suggests
heavy discounting in terms of its current valuation, particularly its PS ratio given
Aspermont last few years of high growth.
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
Lifetime Value (LTV) and EV/ARR4 multiples are common ways to value specific XaaS
revenues. On both yardsticks the value of Aspermont’s subscriptions by themselves
should exceed $50m.
All indicators show Aspermont to be significantly undervalued on the core metrics
alone but with a profitable outcome in FY20 we hope that shareholders will benefit
from greater investor understanding of Aspermont’s value proposition and further
increases in profitability being reported.
Business Model Evolution – The Rise of Data
Aspermont’s current management team started in 2015 when revenues were
derived from Print Advertising and Live Events.
By 2017 the primary income model was shifting to subscriptions with a high growth
rate underpinned by the XaaS model.
By 2019 Aspermont had developed a full multi-media, multi-platform, product suite
capable of building bespoke end to end marketing solutions for its clients
Today, with the paid growth in audiences delivered through brought @ the paid
content (subscriptions) model the business is embarking on a new and very exciting
opportunity in Data.
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The launch of Aspermont’s lead generation business in late 2019 foreshadows what
we anticipate will be an increasingly rapid growth in Data revenues for the business.
All new virtual exhibitions and events products will be founded on data propositions
4 ARR = Annual Recurring Revenue. At Aspermont this is the same as ACV (or Annual Contract Value) which we
report quarterly. This is because of the 12-month nature of all our subscriptions.
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
for our client base and the company looks forward to reporting on the evolution of
an exciting new business to our investors over the coming years.
Financial Position
Aspermont has no debt, a solid quick ratio of 1.1 and a cash balance of more than
$4m at mid December. This has grown from a cash balance of $0.4m in March which
is in line with our stated defensive cashflow strategy due to COVID-19.
Aspermont, in common with all media companies, was severely impacted by COVID-
19, particularly the Live Events business, and we experienced client spend
contractions in both Media and Subscriptions. Despite these challenges, the
company has continued to grow in all income areas, other than Live Events, and
has made strong improvements in profitability and free cash flow.
Aspermont will continue to be defensive for the first half of FY21 as we carefully
navigate the ongoing impacts of COVID-19 but we are now well positioned for a
surge in new investment, to drive higher growth, in the second half of the year, if
conditions permit.
FY21 Execution Priorities
Aspermont has demonstrated extreme agility and rapid responses in an uncertain
environment, and this will be the key to our success in FY21. Aspermont now has
the scalable infrastructure in place to facilitate further and continuing optimisation
to improve our efficiency and effectiveness.
FY20 saw significant upgrades in staff quality, capabilities, and skill sets. People will
continue to be a core focus for our business both in FY21 and beyond.
We expect to deliver positive progress in product expansion, package pricing and
market penetration through our ABM (account-based marketing) programmes. At
some point in FY21 we intend to increase investment to build our content model to
upscale subscriptions (geographically and by language)
We have identified major audience and data opportunities within our business, and
in FY21 we will focus on marketing new products and solutions to our expanding
customer base to build additional and recurring revenue streams through data.
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
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Outlook
Aspermont has a proven business model and an innovative management team
which has demonstrated resilience in the abnormal market conditions presented by
COVID-19.
The business models in XaaS, Services and Data are all robust and scalable.
Our technological versatility is enabled by the Horizon platform and our fluid
organisational structure which encourage agility and rapid response to changing
market conditions.
Subscriptions have been the bedrock of Aspermont’s business from 2015, delivering
growth over 17 consecutive quarters. As we allocate more investment to our content
models, we should see an acceleration in our growth rates.
Our unit economies are attractive, we have a relatively stable fixed cost base, have
no debt, and have a growing net cash position.
Until the relaxation of business restrictions as Covid-19 is overcome, we remain
cautious in our investment approach and will continue to focus on bottom line and
margin strengthening investments to position ourselves to benefit from the
inevitable global economic recovery.
Aspermont has the people, the brands, the audiences, and the technologies in place
to achieve further strong improvements in FY21 regardless of the environment.
In FY21 we expect:
1. A return to overall revenue growth
2. Continuing expansion in margins and profitability
3. Further growth in audience and in all other key XaaS metrics
4. High growth in our new data products
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Aspermont Limited
Operational Highlights Report
For the Year ended 30 September 2020
Appendix 1:
1. Normalised EBITDA
The reconciliation of statutory earnings to EBITDA is as follows:
Year Ended
income/(loss)
Reported
operations before income tax expense
from
continuing
30 Sept 2020
$000
30 Sept 2019
$000
(873)
(7,466)
Net interest
Depreciation and amortisation
Other (share-based payments & provisions, foreign
exchange, other income)
Write-down of Loan receivable
Reported EBITDA
Exceptional one-off charges (2)
New business establishment costs (3)
Normalised EBITDA (1)
82
1,437
(222)
-
424
38
716
1,178
103
1,061
278
4,944
(1,080)
384
1,157
461
2. Normalised Cash Flow from Operations Reconciliation
Year Ended
30 Sept 2020
$000
30 Sept 2019
$000
Cash flows from operating activities
Cash receipts from customers
Cash outflows to suppliers and employees
Interest received / (paid)
Cash inflow/(outflow) from Operating activities
Exceptional cash outflows (2), (3)
Exceptional other income
Normalised
operating activities (1)
Cash
inflow/(outflow)
from
16,758
(14,254)
(23)
2,481
776
(966)
2,291
18,772
(19,123)
(42)
(393)
1,295
902
Notes for Normalised EBITDA and Normalised Cash Flow from Operations reconciliations:
(1) Based on unaudited management accounts
(2) One-off expenses relating business restructuring. We have referenced the evolution of our sales approach from
transactional to solution-based selling. These expenses reflect upskilling costs in our commercial teams as part
of that process.
(3) Expenditure in relation to the establishment of new business lines. In previous years, the Company has launched
new business such as in Live Events and Research. In the last 12 months the business has launched Content Works,
Lead Generation and Virtual Events, as previously announced. Establishment costs normalised in this year relate
to those new divisions.
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
The Directors present their twelve-month financial 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 September 2020.
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
Alex Kent
Geoffrey Donohue
Christian West
Clayton Witter
Principal activities
The Group’s principal activities during the period were to provide market specific content across the
Resource sectors through a combination of print, digital media channels and face to face networking
channels.
Operating results
The consolidated loss before tax for the group was $0.9 million (2019: loss $7.5 million).
Dividends
No dividend has been declared for the period (2019: no dividend).
Review of operations
A review of the operations of the Group during the financial year has been set out in pages 4 to 14 of
this report.
Significant changes in the state of affairs
The significant changes in the state of affairs of the Group during the year are outlined in the preceding
review of operations.
Events subsequent to the end of the year
There were no events subsequent to the year-end that require disclosure.
Likely developments and expected results of operations
The upcoming year is expected to be one of further difficulty in managing the impact of COVID and
the resulting economic crisis. The business intends to focus on its innovation hubs to deliver new
products to market that suit the conditions.
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 34 and forms part of the director’s
report for the year ended 30 September 2020.
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
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 17th December 2020
Signed in accordance with a resolution of Directors:
Alex Kent
Managing Director
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
A.L Kent, AAICD
Chairman and non-executive director
Experience and expertise:
Mr Kent is an experienced business manager
and corporate advisor with over 30 years of
experience in international equities and media.
Mr Kent was the CEO of Aspermont Limited
from 2000 to 2005 and holds considerable
knowledge of its products and the market
landscape. Mr Kent joined the Board in 1998.
Mr Kent is a member of the Australian Institute
of Company Directors.
J Stark, AAICD
Alternative Director
Experience and expertise:
Mr Stark is an experienced business manager
with experience and interests across various
listed and unlisted companies. Mr Stark has
been a member of the Board since 2000. Mr
Stark was appointed Alternative Director to Mr
Andrew Kent on the 26th May 2018.
Other current directorships:
No other listed company directorship
Former directorships in last 3 years:
No other listed company directorships
Special responsibilities:
Chairman of the Board
Interest in shares and options:
588,692,951 ordinary shares
Other current directorships:
None
Former directorships in last 3 years:
No other listed company directorships
Special responsibilities:
None
Interest in shares and options:
407,170,603 ordinary shares
Alex Kent, (Double Hons) BSc Economics, Accounting & Business Law
Managing Director
Experience and expertise
Since joining the company in 2007, Mr Alex
Kent has worked across all divisions of
Aspermont Group. During this time, he has
built up an extensive knowledge of its product
portfolio and been a key driver in the overall
business vision. He is currently the Group's
Managing Director but has held previous
executive roles in both marketing and digital
strategy.
honors
graduated
previously
Having
through
Microsoft's Executive Academy and with a
double
Economics,
degree
Accounting and Business Law, Mr Alex Kent
brings further depth to the Aspermont board
and operations as the Group continues its
digital evolution.
in
Other current directorships
No other listed company directorship
Special responsibilities
Managing Director
Former directorships in last 3 years
No other listed company directorships
Interest in shares and options
266,892,102 ordinary shares
258,245,641 options
69,000,000 performance rights
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
Geoffrey Donohue, B.COM, Grad. Dip Financial Analysis (FINSIA), CPA
Lead Independent Director
Experience and expertise
Mr Geoffrey Donohue has over 30 years’
experience at both board and
senior
management level within public companies and
the securities industry.
Mr Donohue holds a Bachelor of Commerce
from
James Cook University of North
Queensland, Graduate Diploma in Financial
from the Securities Institute of
Analysis
Australia and
is a Certified Practicing
Accountant.
Christian West, FCA CF30/RDR
Non-Executive Director
Experience and expertise
Mr Christian West has over 16 years’
experience in advising public companies on
portfolio structure and in deal origination,
for private
development and
companies. Mr West has a successful track
record investing in global equities, through
public market, venture capital and private
equity investment channels across media,
technology and natural resource sectors.
financing
Other current directorships
No other listed company directorship
Special responsibilities
Chairman of Audit Committee
Chairman of Remuneration Committee
Former directorships in last 3 years
Zamanco Minerals Limited
Interest in shares and options
64,055,746 ordinary shares
Other current directorships
No other listed company directorships
Special responsibilities
Member of Audit Committee
Member of Remuneration Committee
Former directorships in last 3 years
No other listed company directorships
Interest in shares and options
9,009,925 ordinary shares
Clayton Witter, BBA Batchelor of Business Administration, & International Marketing
Non-Executive Director
Experience and expertise
Mr Clayton Witter has over 20 years’
experience advising large and medium size
organisations on
implementation of new
technologies to transform business process
across a number of sectors including FMCG
(consumer goods), Manufacturing, Banking,
Information
Electrical
household appliances. Mr Witter was previously
Managing Director at Beko Plc, the UK home
appliance manufacturer where under his
management, Beko became market leader
across multiple product categories.
Technology
and
Other current directorships
No other listed company directorships
Special responsibilities
Member of Audit Committee
Member of Remuneration Committee
Former directorships in last 3 years
No other listed company directorships
Interest in shares and options
5,929,567 ordinary shares
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The above directors have been in office since the start of the financial year to the date of this report
unless otherwise stated.
Company secretary
The Company Secretary is Mr Tim Edwards. Mr Edwards was appointed to the position of Company
Secretary on 5th February 2020. Mr Edwards is a Qualified Chartered Accountant and an Associate of
Governance Institute of Australia.
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
Meetings of directors
The number of meetings of the Company’s Board of Directors and of each Board committee held during
the year ended 30 September 2020, and the number of meetings attended by each director were:
Full meetings of Directors
Meetings of committees
Audit & Risk
Remuneration
A
12
7
13
13
12
13
B
13
13
13
13
13
13
A
**
**
3
3
3
B
**
**
3
3
3
**
**
A
**
**
**
3
3
3
B
**
**
**
3
3
3
A.L Kent
J Stark
A Kent
G Donohue
C West
C Witter
A Number of meetings attended
B Number of meetings held during the time the director held office or was a member of the committee during the
year
** Not a member of the relevant committee
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
Remuneration report (Audited)
The information provided in this remuneration report has been audited as required by section 308
(3C) of the Corporations Act 2001.
The remuneration report is set out under the following main headings:
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
A
B
C
D-G Additional information
H
Other transactions with directors and KMP
A)
Principles used to determine the nature and amount of remuneration
The objective of the Group’s executive reward framework is to ensure reward for performance is
competitive and appropriate for the results delivered. The framework aligns executive reward with
achievement of strategic objectives and the creation of long-term value for shareholders and conforms
with market practice for delivery of reward. The Board ensures that executive reward satisfies the
following criteria for good reward governance practices:
competitiveness and reasonableness;
acceptability to shareholders;
performance linkage/ alignment of executive compensation; and
transparency.
Alignment to shareholders’ interests:
has sustainable economic profit as a core component of plan design;
focuses on key fundamentals for long term growth in shareholder wealth, consisting of
dividends and growth in share price, and delivering constant return on assets as well as
focusing the executive on key non-financial drivers of value; and
attracts and retains high caliber executives.
Alignment to program participants’ interests:
rewards capability and experience;
reflects competitive reward for contribution to growth in shareholder wealth;
provides a clear structure for earning rewards; and
provides a recognition for contribution.
The Board has established a Remuneration Committee which provides advice on remuneration and
incentive policies and practices, and specific recommendations on remuneration packages and other
terms of employment for executive directors, other senior executives and non-executive directors.
Remuneration Consultants
During the financial year the Group’s remuneration committee did meet but did not engage the services
of a remuneration consultant.
Directors’ fees:
The base remuneration was reviewed in the year and the following base fees were determined:
Base Fees(2)
Non-Executive Chairman
Non-Executive Directors
Lead Independent Director
30 September 2020
$75,000(1)
$33,750
$75,000
.
(1) The Chairman in addition to base fees also has an agreement with management for additional non-chairman related
services amounting to $100,000 per annum
(2) The Directors took a 50% reduction in fees in the second half of this financial year
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
Executive pay
The executive pay and reward framework have three components. The combination of these comprises
an executive’s total remuneration.
Base Pay
This is structured as a total employment cost package which may be delivered as a combination of
cash and prescribed non-financial benefits at the executives’ discretion. Executives are offered a
competitive base pay that comprises the fixed component of pay and rewards. Base pay for executives
is reviewed annually to ensure the executive’s pay is competitive with the market. An executive’s pay
is also reviewed on promotion. There is no guaranteed base pay increases in an executive’s contract.
Benefits
Executives receive benefits including health and life insurance.
Superannuation & Pension
Australian based Executives are paid the statutory contribution of 9.50%. United Kingdom based
Executives are paid a pension of up to 10% on their base salary. Executives may elect to sacrifice base
pay into superannuation at their discretion.
Short-term incentives (STI)
The STI annual payment is reviewed annually against a combination of financial targets, strategic and
operational objectives. Each executive STI is tailored to the achievement of objectives under that
executive’s direct sphere of influence. The use of profit targets ensures variable reward is only available
when value has been created for shareholders and when profit is consistent with the business plan.
The annual bonus payments are approved by the Remuneration Committee.
The Group currently does have a policy to limit “at risk” remuneration for executives. In the current
year STI was linked to revenue, EBITDA and cashflow targets as well as other operational and personal
performance measures.
Feature
Description
Max opportunity MD and other executives: 50% of fixed remuneration
Performance
metrics
The STI metrics align with our strategic priorities of market penetration,
growth, operational excellence, shareholder value and fostering talented
and engaged people.
Metric
Weighting Reason for selection
Target
Revenue Growth and
Adjusted EBITDA
Increase group’s
market share in
subscriptions and
media
Operational
Excellence
Individual
performance
metrics
25%
Increase &
positive
EBITDA
10%
increase
40-50%
20-40%
Reflects improvements
in both revenue and cost
control
Focus of the group’s
growth strategy for the
next 5 years
10-20%
10-20%
Individual
KPIs set
annually
Specific
to
individuals
Retention of customers
and increasing market
share
Targeted metrics that
are critical to individual
roles
Delivery of STI
STI awarded is paid in cash or shares at the end of the financial year and
can be deferred at Board’s discretion and is subject to forfeiture on
resignation.
Board discretion
The Board has discretion to adjust remuneration outcomes up or down to
prevent any inappropriate reward outcomes, including reducing (down to
zero, if appropriate) any deferred STI award.
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
STI awards for this year were based on meeting increase in market share in media, subscriptions,
delivering events planned, where possible, and EBITDA, delivering 50% of individual KPIs and that
specific to individuals. The payments made for this year are disclosed in the remuneration table on
page 23 as well on page 25 showing how much each award represented as percentage of each
individual fixed remuneration.
Long-term incentives
Long-term incentives are provided to certain employees to incentivise long-term objectives and tenure
via performance rights. Performance Rights provide a non-cash incentive that aligns directors and
employees interests with those of the shareholders and are granted to motivate and retain directors
and employees over a multi-year tenure.
The Company granted Performance Rights for this financial period as disclosed on page 28.
B) Details of remuneration
Amounts of remuneration
Details of the remuneration of the directors and key management personnel of the Group (as defined
in AASB 124 Related Party Disclosures) of Aspermont Limited and the Aspermont Limited Group are
set out in the following tables.
The key management personnel of the Group are the following:
Andrew Leslie Kent – Chairman and Non-Executive Director
Alex Kent – Managing Director, Group
John Stark – Alternative Director to Mr Andrew Kent
Geoffrey Donohue – Lead Independent Director
Christian West – Non-Executive Director
Clayton Witter – Non-Executive Director
Ajit Patel – Chief Operating Officer, Group
Nishil Khimasia – Chief Financial Officer, Group
Matt Smith – Chief Commercial Officer, Group
Leah Thorne – People Director, Group
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Name
Executive
directors
A Kent (2)
Sub-total
e
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u
Non-executive
directors
A.L Kent
(Chairman)
G Donohue (3)
C West (4)
C Witter (4)
Sub-total
Other key
management
personnel
A Patel (2)
N Khimasia (2)
M Smith (2)
L Thorne (2)(5)
Sub-total
Total (Group)
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
Details of Directors and key management personnel of the Group remuneration for the year ended 30
September 2020 are as follows:
Short-term employee benefits
Share
based
payments
Salary or
fees
STI related
payments
Non-
monetary
benefits
Performance
rights (1)
Long
term
employee
benefits
Long
service
leave
Post-
employment
benefits
Super-
annuation/
Pension
Total
372,438
102,903
27,991
189,794
372,438
102,903
27,991
189,794
168,493
75,000
32,330
33,750
309,573
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
282,150
282,150
282,150
65,707
912,157
59,068
69,691
34,045
4,085
166,889
19,523
7,821
3,934
495
31,773
63,265
63,265
36,760
-
163,290
1,594,168
269,792
59,764
353,084
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,507
-
-
-
6,507
28,215
22,572
22,572
-
73,359
693,126
693,126
175,000
75,000
32,330
33,750
316,080
452,221
445,499
379,461
70,287
1,347,468
79,866
2,356,674
1. Performance rights have been issued to executives for three consecutive years. The value of those rights that has vested or been exercised
is $nil.
2. UK executive remuneration, paid in British Pounds, has been converted to Australian Dollars at the average exchange rate for the year ended
30 September. All executives participated in cash pay reduction of 30% for the 4 month period from 1 July ending on 31 October 2020 and
took a 30% payment in equity from July to September 2020. There has been no growth in the base pay of any executive over the last few years.
3. Remuneration of 62,500 was in stock with the share price set at the higher of volume weighted average price (VWAP) over the 3 month
period of services rendered or 0.01. At year end, 12,500 was outstanding and this was settled in cash.
4. Remuneration was all settled in cash.
5. Leah was on maternity leave from September 2019 and returned in June 2020. From June 2020 to September 2020, she was on reduced
working hours of 4 days a week.
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
Key management personnel of the Group and other executives of the Company and the
Group (continued):
Short-term employee benefits
Share based
payments
Salary or
fees
STI
related
payments
Non-
monetary
benefits
Performance
rights (1)
Long term
employee
benefits
Post-
employment
benefits
Long
service
leave
Super-
annuation/
Pension
Total
359,040
56,100
21,220
96,125
359,040
56,100
21,220
96,125
191,324
100,000
45,000
45,000
381,324
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
272,000
272,000
272,000
126,869
942,869
31,450
53,550
-
6,800
91,800
15,117
6,206
2,039
-
23,362
32,042
32,042
7,898
-
71,982
1,683,233
147,900
44,582
168,107
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
532,485
532,485
8,676
200,000
-
-
-
8,676
100,000
45,000
45,000
390,000
27,200
21,760
15,323
-
64,283
377,809
385,558
297,260
133,669
1,194,296
72,959
2,116,781
2019
Name
Executive
directors
A Kent (2)
Sub-total
Non-executive
directors
A.L Kent
(Chairman)
G Donohue (4)
C West (5)
C Witter (5)
Sub-total
Other key
management
personnel
A Patel (2)
N Khimasia (2)
M Smith (2)
L Thorne (2, 3)
Sub-total
Total (Group)
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1. Performance rights have been issued to executives for two consecutive years. The value of those rights that has vested or been
exercised is $nil.
2. UK executive remuneration, paid in British Pounds, has been converted to Australian Dollars at the average exchange rate for the year
ended 30 September 2019.
3. Appointed December 2018.
4. Remuneration will be entirely in stock with the share price set at the volume weighted average price (VWAP) over the 12 months of
the calendar year.
5. Remuneration was $25,000 in cash and remainder will be entirely in stock with the share price set at the volume weighted average
price (VWAP) over the 12 months of the calendar year.
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
The relative proportions of remuneration that are linked to performance (variable component) and
those that are fixed are as follows:
Name
Executive directors
A Kent
Non-Executive directors
A.L Kent (Chairman)
J Stark
G Donohue
C West
C Witter
Other key management personnel
A Patel
N Khimasia
M Smith
L Thorne
Fixed remuneration
2020
At risk –
STI 2020
At risk –
LTI 2020
58%
15%
27%
100%
100%
100%
100%
100%
73%
70%
81%
94%
-
-
-
-
-
13%
16%
9%
6%
-
-
-
-
-
14%
14%
10%
-
The following table demonstrates the Group’s performance over shareholder value during the last
five years:
2020
2019
2018
2017
2016
Profit attributable to owners
of the company
(970,000)
(7,452,000)
(1,025,000)
(1,342,604)
(6,468,480)
Dividends paid
-
-
- -
-
Share price at 30 Sept
$0.007
$0.01
$0.01
$0.01
$0.01
Return on capital employed
(11.4%)
(282.9%)
(9.8%)
(15.7%)
(574.8%)
The table below illustrates the link between the Group’s financial performance and the incentive
compensation amounts (including the value of share options in long term incentives) for the key
management personnel:
2,000
1,000
-
(1,000)
(2,000)
(3,000)
(4,000)
2015
2016
2017
2018
2019
2020
Normalised EBITDA (000's)
Short term incentive bonus amount (000's)
Long term incentive amount (000's)
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
C) Service agreements
On appointment to the Board, all directors enter into a service agreement with the Company in the
form of a letter of appointment. The letter summarises the Board policies and terms, including
compensation, relevant to the office of the director. Non-Executive Directors can elect to take all/part
of fees in shares subject to shareholder approval on 12 month VWAP basis.
Remuneration and other terms of employment for the Managing Director and other key management
personnel are formalised and reviewed by the Remuneration Committee. Each of these agreements
provides for the provision of performance-related cash & share based bonuses, other benefits including
certain expenses and allowances. Other major provisions of the agreements relating to remuneration
are set out below.
All contracts with executives may be terminated early by either party subject to termination payments
as detailed below
A Kent Managing Director, Group
Term of agreement – updated commencing 1 July 2016
Base compensation and benefits for the year ended 30 September 2020 is GBP 267,587
(AUD $503,332).
Payment of a benefit on early termination by the Company, other than for gross misconduct,
equal to 12 months’ base salary.
Notice period: 12 months
A Patel Chief Operating Officer, Group
Term of agreement – ongoing commencing 23 January 2013.
Base compensation, inclusive of salary, pension contribution and benefits, for the year ended
30 September 2020 is GBP 206,781 (AUD $388,956). This amount to be reviewed annually by
the remuneration committee.
Payment of a benefit on early termination by the Company, other than for gross misconduct,
equal to 6 months’ base salary.
Notice period: 6 months
N. Khimasia Chief Financial Officer, Group
Term of agreement – ongoing, commencing November 2015.
Base compensation, inclusive of salary, pension contribution and benefits for year ended 30
September 2020 of GBP 203,208 (AUD $382,234).
Payment of a benefit on early termination by the Company, other than for gross misconduct,
equal to 6 months’ base salary.
Notice period: 6 months
M. Smith Chief Commercial Officer, Group
Term of agreement – ongoing, commencing August 2018.
Base compensation, inclusive of salary, pension contribution and benefits for the year period
ended 30 September 2020 of GBP 182,191 (AUD $342,701).
Payment of a benefit on early termination by the Company, other than for gross misconduct,
equal to 6 months’ base salary.
Notice period: 6 months
L. Thorne People Officer, Group
Term of agreement – ongoing, commencing December 2018.
Base compensation, inclusive of salary, pension contribution and benefits for the nine-month
period ended 30 September 2020 of GBP 37,367 (AUD $70,287).
Payment of a benefit on early termination by the Company, other than for gross misconduct,
equal to 6 months’ base salary.
Notice period: 6 months
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
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D) Options held by directors and key management personnel
The numbers of options over ordinary shares in the Company held during the year by each director
and other key management personnel, including their personally related parties, are set out below.
All outstanding options were fully vested on the date of grant.
Balance 1
October
2019
Received as
part of
convertible
note issue
Exercised
Forfeited
Balance 30
September
2020
258,245,641
-
-
-
258,245,641
Directors
A Kent and beneficial
interests
No other director options were exercised or lapsed in Aspermont Limited in 2020.
E) Number of shares held by directors and key management personnel (KMP)
The number of shares in the Company held during the financial year by each director and other key
management personnel, including their personally related parties, are set out below. There were no
shares issued during the year for the exercise of options.
Balance
Disposed
Acquired(1)
1 October
2019
Balance at
resignation
Balance 30
September
2020
Directors
A.L Kent and beneficial
interests
J Stark and beneficial
interests
A Kent and beneficial
interests
G Donohue and beneficial
interests
C West
C Witter and beneficial
interests
Other KMP
N Khimasia and beneficial
interests
A Patel and beneficial
interests
M Smith (KMP)
566,780,087
18,571,430
40,484,294
385,897,000
259,749,245
51,561,485
8,409,262
5,534,262
11,237,893
13,685,606
-
-
-
-
-
-
-
-
-
21,273,603
7,142,857
12,494,261
600,663
395,305
4,374,054
319,454
4,285,715
-
-
-
-
-
-
-
-
-
588,692,951
407,170,603
266,892,102
64,055,746
9,009,925
5,929,567
15,611,947
14,005,060
4,285,715
(1) During the financial year a capital raising, by way of rights issue, was successfully completed. All Directors
and KMPs participated in the capital raising, taking up their right and subscribing for any shortfall. The rights
issue was fully underwritten by Taylor Collinson and heavily oversubscribed. A number of Directors and KMPs
had also sub-underwrote the offer.
No other shares were issued to key management personnel and other executives of the Company and
the Group during 2020.
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Director
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KMPs
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Rights in
Issue
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Employees(4)
Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
F)
Employee Performance Rights
The Company issued 45,622,970 Performance Rights during the reporting year to a director and
employees pursuant to the Aspermont Performance Rights Plan (“The Plan”).
The value and number of Performance Rights that vested or were exercised during the year was nil.
At 30 September 2020, the Company had the following unlisted Performance Rights in issue:
Issue
Year
Rights
Outstanding at
Start of the
Year
(no.)
Share Rights
Granted in
Year
(no.)
Award Date
Fair Value
per Right
at award
date
$
Vesting Date
Exercised
Forfeited
Rights
Outstanding at
End of the
Year
(no.)
(no.)
(no.)
FY 18
FY 18
FY 19
FY 19
FY 20
FY 20
FY 18
FY 19
FY 20
FY 20
13,500,000(1)
13,500,000(2)
10,500,000(1)
10,500,000(2)
-
-
-
-
-
-
10,500,000(1)
10,500,000(2)
01-Feb-18
01-Feb-18
24-May-19
24-May-19
05-Feb-20
05-Feb-20
$0.009000
$0.007096
$0.011000
$0.009308
$0.009000
$0.007800
01-Feb-2021
01-Feb-2021
25-May-2022
25-May-2022
05-Feb-2023
05-Feb-2023
18,000,000(3)
21,000,000(3)
-
-
-
10.500,000(1)
10.500,000(2)
01-Feb-18
24-May-19
05-Feb-20
05-Feb-20
$0.009000
$0.011000
$0.009000
$0.007800
01-Feb-2021
25-May-2022
05-Feb-2023
05-Feb-2023
FY 19
FY 20
2,500,000
-
-
3,622,970
30-Nov-18
15-Nov-19
$0.010300
$0.010351
30-Nov 2018/19/ 20
15-Nov 2019/20/21
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,500,000
13,500,000
10,500,000
10,500,000
10,500,000
10,500,000
18,000,000
21,000,000
10,500,000
10,500,000
750,000
-
1,750,000
3,622,970
89,500,000
45,622,970
-
750,000
134,372,970
(4) The grant of employee performance rights are subject to certain milestone conditions: A three year period,
33.3% of the total performance rights will vest per annum with the first tranche eligible for vest upon issue of the
Performance Rights. Any Rights not exercised on the measurement date lapse.
The Plan was approved by the shareholders at the February 2018 annual general meeting. The scheme
is designed to provide long-term incentives to the executive management team (including executive
Directors) to deliver long-term shareholder returns. Under the Plan, participants are granted
Performance Rights to receive ordinary shares which only vest if certain performance conditions are
met. Participation in the Plan is at the Board’s discretion and no individual has a contractual right to
participate in the Plan or to receive any guaranteed benefits. The Board can amend vesting conditions
on issued Performance Rights. Any change to vesting conditions which affects a related party requires
shareholder approval.
Performance Rights for the Managing Director for all plan years and KMP’s rights awarded for FY 20
have the following performance conditions:
(1) Fifty percent of grant vests if the Company’s returns on equity over a three-year period are within
50-75% range of all companies in the S&P ASX 300.
(2) Fifty percent of grant vests if the Company’s total shareholder return (TSR) over a three-year period
is within 50-75% range of all companies in the S&P ASX 300
Performance Rights for KMPs have the following amended performance conditions (pursuant to
approval by the Board) for the following issues:
(3) FY 18 and FY 19 issues – These grants are time based and will be eligible to vest from the third
anniversary from the grant dates.
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
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Once vested, the Performance Rights remain exercisable for a period of four years. Performance Rights
Shares are granted under the Plan for no consideration and carry no voting rights during the vesting
period. The Performance Rights have an implied service condition meaning the Directors and
Employees must remain employed for the entire period.
Performance Rights issued in FY20 were valued for a total of $352,800 being expensed over the vesting
period, with $78,400 charged to the Consolidated Income Statement for this reporting period. This is
reflected in the share-based payment expense at 30 September 2020.
Fair values were determined as follows:
The fair value at grant date for Performance Rights with no market conditions were based on share
price at grant date.
The fair value at grant date for Performance Rights with market conditions were independently
assessed using a model that combines Trinomial and Monte Carlo methodologies and utilises the
correlations, betas and volatilities of Aspermont, the S&P/ASX 300 Index and its constituents.
The model inputs for the FY 20 rights granted included:
Rights are granted at no consideration
Vesting Period: three years
Risk free rate: 1.00%
Dividend yield: n/a
Expiry date: seven years from issue
Expected future price volatility of shares: 100%
The Employee Performance Rights were valued based on prior 12 month weighted average market
price on the date of grant.
Where vesting conditions have been amended the rights are revalued immediately after the change.
Where this results in an increase in the fair value the additional amount is recognized over the
remaining vesting period.
G) Loans from directors related entities
Liabilities to Mr A.L Kent and entities related to them are set out below.
Andrew L. Kent
Beginning of year
Loan Repayments / (advances)
2020
2019
45,700
(29,700)
43,469
2,231
End of year/period – owed
16,000
45,700
H) Other transactions with directors and key management personnel
A number of directors, or their related parties, hold positions in other entities that result in them
having control or joint control over the financial or operating policies of those entities.
These entities transacted with the Group during the year. The terms and conditions of the transactions
with directors and their related parties were no more favourable than those available, or which might
reasonably be expected to be available, on similar transactions to non-key management personnel
related entities on an arm’s length basis.
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Aspermont Limited
Directors’ Report
For the Year ended 30 September 2020
The Group leases its principal office facility from Ileveter Pty Ltd, a company associated with a director,
Mr A.L Kent. The rent paid was at market rates at the time of lease inception and amounted to
$488,019 for the current year (2019: $465,531). The lease agreement has a term of five years expiring
October 2022.
At 30 September 2020, the Company owed $23,750 (2019: $47,500) in unpaid Director Fees to
current Non-Executive Directors of the Company. Non-Executive Directors can elect to take all/part
of fees in shares subject to shareholder approval on 3 month VWAP basis. At the AGM, 100% of votes
received were in favour of adoption of the remuneration report. Votes received represented 4% of
the full registry.
This is the end of the Audited Remuneration Report.
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Aspermont Limited
Director’s Report
For the Year ended 30 September 2020
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Shares under option
Unissued ordinary shares of Aspermont Limited under option at the date of this report are as follows:
Date of Issue
Date of Expiry
Exercise Price
Number of Options
12-Dec-17
18-Oct-16
12-Dec-22
30-Sep-25
3c
3c
10,000,000
303,577,323
Insurance of officers
During the financial year, Aspermont Limited paid a premium to insure the directors and officers of
the Company and its Australian-based controlled entities.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings
that may be brought against the officers in their capacity as officers of entities in the Group, and any
other payments arising from liabilities incurred by the officers in connection with such proceedings.
Not included are such liabilities that arise from conduct involving a wilful breach of duty by the officers
or the improper use by the officers of their position or of information to gain advantage for themselves
or someone else to cause detriment to the Company. It is not possible to apportion the premium
between amounts relating to the insurance against legal costs and those relating to other liabilities.
Indemnity of auditors
The Company has not, during or since the end of the financial year, given an indemnity or entered
into an agreement to indemnify, or paid insurance premiums in respect of the auditors of the Group.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a
party, for the purpose of taking responsibility on behalf of the Company for all or part of those
proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court
under section 237 of the Corporations Act 2001.
Non-audit services
The Group may decide to employ the auditor on assignments additional to their statutory audit duties
where the auditor’s expertise and experience with the Company and/or the Group are important. The
Board of Directors has considered the position and, in accordance with advice received from the audit
committee, is satisfied that the provision of the non-audit services is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001.
The directors are satisfied that the provision of non-audit services by the auditor, as set out below,
did not compromise the auditor independence requirements of the Corporations Act 2001 for the
following reasons:
All non-audit services have been reviewed by the audit committee to ensure they do not impact
the impartiality and objectivity of the auditor.
None of the services undermine the general principles relating to auditor independence as set
out in APES 110 Code of Ethics for Professional Accountants.
During the year the following fees were paid or payable for non-audit services provided by the auditor
of the parent entity, its related practices and non-related audit firms:
Tax compliance
Tax advisory
Total non-assurance remuneration
2020
$
2019
$
10,000
-
10,000
2,500
-
2,500
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Aspermont Limited
Director’s Report
For the Year ended 30 September 2020
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations
Act 2001 is set out on page 34.
This report of the directors incorporating the remuneration report is made in accordance with a
resolution of the Board of Directors.
A. Kent
Managing Director
Perth
17 December 2020
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Aspermont Limited
Director’s Report
For the Year ended 30 September 2020
Corporate Governance
The primary role of the Aspermont Board (the “Board”) is the protection and enhancement of long-
term shareholder value. The Board is accountable to shareholders for the performance of the Group.
It directs and monitors the business and affairs of the Group on behalf of shareholders and is
responsible for the Group’s overall corporate governance.
The company is committed to a governance framework using the Australian Securities Exchange’s
(ASX) “Principles of Good Governance and Best Practice Recommendations”. The Corporate
Government statements have been released to the ASX and are available on our website at
http://www.aspermont.com/static/corporate-governance.
Diversity disclosures regarding the proportion of women in the Aspermont
workforce at 30 September 2020:
Directors and
Employees
Board
Senior Management
Department Head
Employees
Total
Total
Total
Women
Men
Women
%
6
3
6
33
48
-
1
2
28
31
0%
25%
25%
46%
39%
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Auditor's Independence Declaration
To those charged with Governance of Aspermont Limited.
As auditor for the audit of Aspermont Limited for the year ended 30 September 2020, I declare that, to the best
of my knowledge and belief, there have been no contraventions of:
•
the independence requirements of the Corporations Act 2001 in relation to the audit; and
• any applicable code of professional conduct in relation to the audit.
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Elderton Audit Pty Ltd
Nicholas Hollens
Managing Director
Perth
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17 December 2020
Aspermont Limited
Consolidated Income Statement
For the Year ended 30 September 2020
Revenue
Cost of sales
Gross Profit
Distribution expenses
Marketing expenses
Occupancy expenses
Corporate and administration
Finance costs
Share based payments
Other expenses
Other income
Impairment of loan receivable
Loss before income tax
Income tax expense
Note
30 September
2020
$000
30 September
2019
$000
4
15,204
(6,324)
8,880
(527)
(4,315)
(392)
(4,229)
(82)
(664)
(763)
1,218
-
(874)
(96)
13b
4
6
16,379
(7,461)
8,918
(620)
(5,170)
(511)
(4,159)
(103)
(166)
(1,195)
484
(4,944)
(7,466)
14
Net loss attributable to equity holders of the
parent entity
(970)
(7,452)
The accompanying notes form part of these consolidated financial statements.
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Aspermont Limited
Consolidated Statement of Comprehensive Income
For the Year ended 30 September 2020
30 September
2020
$000
30 September
2019
$000
Net loss after tax for the period
(970)
(7,452)
Other comprehensive loss
(Items that will be reclassified to profit or loss)
Foreign currency translation differences for foreign
operations
Other comprehensive loss for the period net of tax
121
121
(102)
(102)
Total comprehensive loss for the period
(849)
(7,554)
30 September
2020
Cents
30 September
2019
Cents
Loss per share attributable to the ordinary equity
holders of the company
Basic and diluted earnings loss
19
(0.05)
(0.05)
(0.36)
(0.36)
The accompanying notes form part of these consolidated financial statements.
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Aspermont Limited
Consolidated Statement of Financial Position
For the Year ended 30 September 2020
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CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
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
Lease Liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Deferred tax liabilities
Lease Liabilities
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2020
$000
2019
$000
15
7
9
6
10
11
12
9b
6
9b
13
3,182
1,306
4,488
727
1,379
2,106
71
980
1,423
8,400
10,874
15,362
4,081
5,457
35
543
71
1,445
1,519
8,827
11,862
13,968
3,553
4,702
43
541
10,116
8,839
1,423
1,519
452
118
882
94
1,993
2,495
12,109
11,334
3,253
2,634
8,540
(1,385)
(3,902)
3,253
7,441
(1,826)
(2,981)
2,634
The accompanying notes form part of these consolidated financial statements
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Aspermont Limited
Consolidated Statement of Changes in Equity
For the Year ended 30 September 2020
Issued
Capital
Accumulated
Losses
Other
Reserves
Share
Based
Reserve
Currency
Translation
Reserve
Fixed
Assets
Reserve
Total
Balance at 1 October 2018
$000
67,744
$000
(46,191)
$000
(9,954)
$000
$000
$000
$000
909
(2,559)
(278)
9,671
Loss for the period
Other comprehensive income
Foreign currency translation differences for
foreign operations
Total Comprehensive loss
Transactions with owners in their capacity
as owners;
Shares issued (net of issue costs)
Issue of performance rights
Transfer of reserves to retained losses
258F Capital Adjustment
Balance at 30 September 2019
-
-
-
313
-
-
(60,616)
7,441
(7,452)
-
(7,452)
-
-
(9,954)
60,616
(2,981)
Balance at 1 October 2019
7,441
(2,981)
Loss for the year
Other comprehensive income
Foreign currency translation differences for
foreign operations
Total Comprehensive loss
Transactions with owners in their capacity
as owners:
Transfer of expired options
Shares issued (net of issue costs)
Issue of performance rights
Balance at 30 September 2020
-
-
-
(970)
-
(970)
-
1,099
-
8,540
49
-
-
(3,902)
-
-
-
-
-
-
-
(102)
(102)
-
-
-
(7,452)
(102)
(7,554)
-
-
9,954
-
-
-
204
-
-
1,113
-
-
-
-
(2,661)
-
-
-
-
(278)
313
204
-
-
2,634
-
-
-
-
-
-
-
-
1,113
(2,661)
(278)
2,634
-
-
-
-
121
121
-
-
-
(970)
121
(849)
(49)
-
369
1,433
-
-
-
(2,540)
-
-
-
(278)
-
1,099
369
3,253
The accompanying notes form part of these consolidated financial statements.
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Aspermont Limited
Consolidated Statement of Cash Flows
For the Year ended 30 September 2020
Cash flows from operating activities
Cash receipts from customers
Cash payments to suppliers and employees
Interest and other costs of finance paid
Interest received
Note
2020
$000
2019
$000
16,758
18,772
(14,254)
(19,123)
(25)
2
(48)
6
Net cash (used in)/ from operating activities
15(b)
2,481
(393)
Cash flows from investing activities
Payments for plant and equipment
Payment for intangible assets
Interest on lease liabilities
(46)
(533)
(57)
(36)
(502)
(55)
Net cash (used in)/from investing activities
(636)
(593)
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Repayment of lease liabilities
Net cash from financing activities
Net increase/(decrease) in cash held
Cash at the beginning of the year
Effects of exchange rate changes on the balance of cash
held in foreign currencies
1,157
(58)
(484)
615
-
(6)
(346)
(352)
2,460
727
(1,338)
2,059
(5)
6
Cash at the end of the year
3,182
727
The accompanying notes form part of these consolidated financial statements.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
1. General information
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 (the “Group”) comprises the Company and its
subsidiaries and the consolidated entity’s interests in associates and jointly controlled entities.
These financial statements were approved for issue by the Board of Directors on 17 December
2020.
Aspermont Limited’s registered office and its principal place of business are as follows:
Principal place of
business and registered
office
613-619 Wellington Street
PERTH WA 6000
Principal place of business
United Kingdom
WeWork
1 Poultry
London, UK EC2R 8EJ
Tel: +61 8 6263 9100
Tel: +44 (0) 208 187 2330
2. Significant accounting policies
Statement of compliance
These financial statements are general purpose financial statements that have been prepared in
accordance with Australian Accounting Standards, including Australian Accounting Interpretations,
other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations
Act 2001. The Group is a for-profit entity for the purposes of preparing the financial statements.
The financial report covers the consolidated group of
Aspermont Limited and controlled entities. Separate financial statements of Aspermont Limited, as an
individual entity, are no longer presented as a consequence of a change to the Corporations Act 2001.
Financial information for Aspermont Limited as an individual entity is included in note 3.
The financial report of Aspermont Limited and controlled entities comply with all International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Basis of preparation
The financial report has been prepared on an accruals basis and is based on historical costs modified
by the revaluation of selected financial assets for which the fair value basis of accounting has been
applied.
The accounting policies set out below have been consistently applied to all years presented, unless
otherwise stated.
New Accounting Standards Issued but not yet Applied
Certain new accounting standards and interpretations have been published that are not mandatory for
the 30 September 2020 reporting period.
Rounding of Amounts
The Company is of a kind referred to in Legislative Instrument 2016/191 and in accordance with the
Legislative Instrument, amounts in the consolidated financial statements have been rounded off to
the nearest thousand dollars, unless otherwise stated.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
2. Significant accounting policies (continued)
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 September 2020 the entity recorded a loss before tax for the year of $1m, a net
cash inflow from operating activities of $2.4m and net working capital deficiency excluding deferred
revenue of $0.2m.
The Directors have reviewed the Company’s overall position and believe the Company will have
sufficient funds to meet the Company’s commitments.
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:
1. The Directors have forecast the group to generate positive operating cash flows in the next 12
months through an increase in revenue in the digital, subscription and events revenue streams
and/or
2. The Directors expect the Group to be successful in securing additional funds through debt or
equity issues if the need arises.
(a)
Basis of consolidation
The consolidated accounts comprise the accounts of Aspermont Limited and all of its controlled entities,
the “Group”. A controlled entity is any entity that Aspermont is exposed to, or has the rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power
over the entity. The financial statements of controlled entities are included in the consolidated accounts
from the date on which control commences until the date on which control ceases.
A list of controlled entities is contained in note 14 to the financial statements.
All inter-company balances and transactions between entities in the consolidated group, including any
unrealised profits or losses, have been eliminated on consolidation.
Where controlled entities have entered or left the economic entity during the year, their operating
results have been included from the date control was obtained or until the date control ceased.
Non-controlling interests in the equity and results of the entities that are controlled are shown as a
separate item in the consolidated financial report.
In the parent entity the investments in the subsidiaries are carried at cost, less impairment.
Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as
transactions with equity owners of the Group. A change in ownership interest results in an adjustment
between the carrying amounts of the controlling and non-controlling interests to reflect their relative
interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling
interests and any consideration paid or received is recognised in a separate reserve within equity
attributable to owners of Aspermont Limited.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
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2. Significant accounting policies (continued)
When the Group ceases to have control, joint control or significant influence, any retained interest in
the entity is remeasured to its fair value with the change in carrying amount recognised in the
Statement of Profit or Loss and Other Comprehensive Income.
The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained
interest as an associate, jointly controlled entity or financial asset. Any amounts previously recognised
in other comprehensive income in respect of that entity are accounted for as if the Group had directly
disposed of the related assets or liabilities. This may mean that amounts previously recognised in other
comprehensive income are reclassified to profit or loss.
If the ownership interest in a jointly-controlled entity or an associate is reduced but joint control or
significant influence is retained, only a proportionate share of the amounts previously recognised in
other comprehensive income are reclassified to the Statement of Profit or Loss and Other
Comprehensive Income where appropriate.
(b) Cash and cash equivalents
For the purpose of the statement of cash flows, cash includes:
i. cash on hand and at call deposits with banks or financial institutions, net of bank overdrafts; and
ii. investments in money market instruments with less than 14 days to maturity.
(c) Plant and equipment
Each class of plant and equipment is carried at cost less accumulated depreciation and impairment.
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. An asset’s carrying amount is written down
immediately to its recoverable amount if the carrying amount is greater than the 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 Profit or Loss and Other Comprehensive Income.
When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are
transferred to retained earnings.
The depreciable amounts of all plant and equipment are depreciated on a diminishing value basis over
their useful lives to the economic entity commencing from the time an asset is held ready for use.
The depreciation rates used for depreciable assets are:
Class of Fixed Asset
Plant and equipment
Right-of-use asset
(d) Employee benefits
Depreciation Rate
13.5% - 40%
Range remaining lease term: 1-2 years
Provision is made for the Group’s liability for employee entitlements arising from services rendered by
employees to reporting date. Employee entitlements expected to be settled within one year together
with entitlements arising from wages and annual leave, which will be settled after one year, have been
measured at their nominal amount. Other employee entitlements payable later than one year has been
measured at the present value of the estimated future cash outflows to be made for those entitlements.
Contributions are made by the Group to employee superannuation funds and are charged as expenses
when incurred.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
2. Significant accounting policies (continued)
(e) Financial instruments
Recognition
The Group recognises receivables on the date that they are originated. All other financial assets are
recognised initially on the trade date at which the Group becomes a party to the contractual provisions
of the instrument.
Financial assets are classified based on the objective of the Group’s business model for managing the
financial assets and the characteristics of the contractual cash flows.
The Group derecognises a financial asset when the contractual cash flows from the asset expires, or it
transfers the rights to receive the contractual cash flows such that substantially all the risks and rewards
of ownership of the financial asset are transferred.
Financial assets at fair value
Financial assets at fair value are non-derivative financial assets.
Financial assets at fair value are measured initially at fair value which includes transaction costs directly
attributable to the acquisition of the financial asset. They are measured subsequently at fair value with
movements in fair value being recognised in the profit or loss, unless:
The financial asset is an equity investment, and
The Group has made an irrevocable election to present gains and losses on the financial asset in
other comprehensive income. This election has been made on an individual equity basis.
Dividends from equity investments are included in the profit or loss regardless of whether the election
has been made to recognise movements in fair value in other comprehensive income.
Profit or loss arising on the sale of equity investments is recognised in the profit or loss unless the
election has been made to recognise fair value movements in other comprehensive income.
Financial assets at amortised cost
Financial assets held at amortised cost are non-derivative finance assets with fixed or determinable
payments not quoted in an active market. If the financial assets are expected in one year or less they
are classified as current assets. If not, they are presented as non-current assets.
Impairment
Impairment losses on financial assets at fair value are recognised in profit or loss, unless the election
has been made to recognise movements in fair value in other comprehensive income, in which case
impairment losses are recognised in other comprehensive income.
(f) 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 statement of financial position 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 year when the asset
is realised or liability is settled.
Deferred tax is credited in the statement of profit or loss and other comprehensive income except where
it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted
directly against equity. Deferred income tax assets are recognised to the extent that it is probable that
future tax profits will be available against which deductible temporary differences can be utilised.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
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2. Significant accounting policies (continued)
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 economic entity will derive sufficient future assessable income to enable the benefit to be realised
and comply with the conditions of deductibility imposed by the law.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the end of the reporting period in the countries where the company’s subsidiaries and
associates operate and generate taxable income. Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying
amount and tax bases of investments in controlled entities where the parent entity is able to control
the timing of the reversal of the temporary differences and it is probable that the differences will not
reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised
in other comprehensive income or directly in equity, respectively.
Aspermont Limited and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the Tax Consolidation System. Aspermont Limited is responsible for
recognising the current and deferred tax assets and liabilities for the tax consolidated group. The Group
notified the ATO in April 2004 that it had formed an income tax consolidated group to apply from July
2002.
Tax consolidation
Aspermont and its wholly-owned Australian subsidiaries are a tax consolidated group. As a
consequence, as the head entity in the tax consolidated group, Aspermont will recognise current and
deferred tax amounts relating to transactions, events and balances of the wholly-owned Australian
controlled entities in the Group in future financial statements as if those transactions, events and
balances were its own, in addition to the current and deferred tax balances arising in relation to its own
transactions, events and balances. These tax amounts are measured as if each entity in the tax
consolidated group continues to be a standalone taxpayer in its own right.
(g) Foreign currency
Functional and Presentation Currency
The functional currency of each of the Group’s entities is measured using the currency of the primary
economic environment in which that entity operates. The consolidated financial statements are
presented in Australian dollars which is the parent entity’s functional and presentation currency.
Transaction and Balances
Foreign currency transactions are translated into 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.
Exchange differences arising on the translation of monetary items are recognised in the Statement of
Profit or Loss or Other Comprehensive Income, except where deferred in equity as a qualifying cash
flow or net investment hedge, in which case they are included in other comprehensive income.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
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2. Significant accounting policies (continued)
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 at that reporting date.
Income and expenses are translated at average exchange rates for the period.
All resulting 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
through other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign
entities, are recognised in other comprehensive income. When a foreign operation is sold or any
borrowings forming part of the net investment are repaid, the associated exchange differences are
reclassified to profit or loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as
assets and liabilities of the foreign operation and translated at the closing rate.
(h) Intangible Assets
Goodwill
Goodwill and goodwill on consolidation are initially recorded at the amount by which the purchase price
for a business exceeds the fair value attributed to its net assets at date of acquisition. Goodwill is
tested annually for impairment and carried at cost less accumulated impairment losses. Goodwill on
acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is
included in investments in associates.
Mastheads
Mastheads acquired separately are capitalised at cost and from a business combination are capitalised
at fair value as at the date of acquisition. Following initial recognition, the cost model is applied to the
class of intangible assets.
Mastheads are tested for impairment where an indicator of impairment exists, and the carrying amount
is reviewed annually by the directors to ensure that it is not in excess of the recoverable amount.
IT development and software
Costs incurred in developing products or systems and costs incurred in acquiring software and licenses
that will contribute to future period financial benefits through revenue generation and/or cost reduction
are capitalised to software and systems. Costs capitalised include direct payroll and payroll related costs
of employees time spent on the project. Amortisation is calculated on a straight-line basis over periods
generally ranging from 2 to 5 years.
IT development costs include only those costs directly attributable to the development phase and are
only recognised following completion of technical feasibility and where the Group has an intention and
ability to use the asset.
Intangible assets acquired as part of an acquisition
Intangible assets acquired as part of an acquisition of a business are capitalised separately from goodwill
if the asset is separable or arises from contractual or legal rights, and the fair value can be measured
reliably on initial recognition. Purchased intangible assets are initially recorded at cost and finite life
intangible assets are amortised over their useful economic lives on a straight line basis.
Where amortisation is calculated on a straight line basis, the following useful lives have been determined
for classes of intangible assets:
Trademarks:
Customer & subscription contracts/relationships:
10 years
5 years
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
2. Significant accounting policies (continued)
(i) Revenue
Recognition and Measurement
Revenues are recognised at fair value of the consideration received or receivable net of the amount
GST or relevant sales tax payable to the relevant taxation authority.
Performance obligations and timing of revenue recognition
The majority of the Group’s revenue is derived from selling services with revenue recognised at a
point in time when service has been delivered or consumed by the customer and control has
transferred to the customer. This is generally when the services are delivered to or consumed by
the customer. There is limited judgement needed in identifying the point control passes.
Advertising and Sponsorship Revenues:
Revenue for advertising and sponsorship activities are recognised when the advertisement has been
broadcast/displayed or the sponsorship service has been performed.
Subscriptions Revenues:
Subscriptions are received in advance for the subscription period applied for. Subscriptions received
during the financial year for content to be published or accessed online after reporting date have been
deferred and will be recognised in the accounting period in which the respective content services
subscribed for are made available.
Event and Delegate Revenues:
Event revenue whether for sponsorship, exhibition stand or delegate tickets for attending the event is
recognised in the accounting period in which the respective event occurs.
Determining the transaction price
Most of the Group’s revenue is derived from fixed price contracts and therefore the amount of revenue
to be earned from each contract is determined by reference to those fixed prices.
Allocating amounts to performance obligations
For most contracts, there is a fixed unit price for each product sold, with discounts sometimes given for
orders placed at a specific time. Therefore, there is no judgement involved in allocating the contract
price to each product ordered in such contracts. Where a customer orders more than one product line,
the Group is able to determine the split of the total contract price between each product line by
reference to each product’s standalone selling prices (all product lines are capable of being, and are,
sold separately).
Costs of fulfilling contracts
No judgement is needed to measure the amount of costs of obtaining contracts – it is the commission
paid.
Transition
The Group adopted AASB 15 on the required effective date using the modified retrospective method.
Thus, the Group will not apply AASB 15 requirements to the comparative period presented. The Group’s
revenue recognition policies prior to AASB 15 were in line with the requisites of the new standard and
the impact if any would be immaterial.
(j) Other income
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable
to the financial assets.
Grants from the government are recognised as other income when they are received by the Group and
all attached conditions have been fulfilled.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
2. Significant accounting policies (continued)
(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 Profit or Loss.
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.
(l) 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.
(m) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the statement of financial position are shown inclusive of GST.
(n) Share-based payment transactions
The Group in some instances has settled services received through issue of shares or share options.
The costs of these transactions are measured by reference to the fair value at the date at which they
are granted. Where options are issued, the fair value at grant date is determined using a combination
of trinomial and monte carlo option pricing models which require estimated variable inputs. In
particular, the expected share price volatility is estimated using the historic volatility (using the
expected life of the option), adjusted for any expected changes to future volatility. The cost is
recognised together with a corresponding increase in equity over the period in which the performance
conditions are fulfilled. Information relating to share based payments is set out in note 13.
(o) Critical accounting estimates and judgments
The Directors evaluate estimates and judgments 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.
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. Key assumptions used for value-in-use calculations are
disclosed in note 10(b).
Key Estimates — Useful lives
The Group assesses the useful lives at each reporting date in respect of assets within indefinite useful
lives such as the Mastheads. The assets are assessed utilising conditions specific to the Group. This
requires judgement and consideration of the assets utilisation and continued use within the Group.
Key Estimates — Income tax
The Aspermont Group operates in multiple jurisdictions which have applicable taxation laws. During any
given year Aspermont seeks independent taxation advice and records the impact of that advice and
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
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2.
Significant accounting policies (continued)
any tax applicable. Should there be a change to the taxation position as a result of past transactions
this may give rise to an income tax liability or asset.
Key Estimates — Shared Based Payments
The Group in some instances has settled services received through issue of shares or share
options. The costs of these transactions are measured by reference to the fair value at the
date at which they are granted. Where options are issued, the fair value at grant date is
determined using a combination of trinomial and monte carlo option pricing models which require
estimated variable inputs. In particular, the expected share price volatility is estimated using the historic
volatility (using the expected life of the option), adjusted for any expected changes to future volatility.
Information relating to share based payments is set out in note 13. The cost is recognised together
with a corresponding increase in equity over the period in which the performance conditions are fulfilled.
The Group received shareholder approval on 1 February 2018 for an Incentive Performance Rights Plan
for issue to the Executive team. Performance Rights were issued in two tranches:
1. Fifty percent of grant vests if the Company’s returns on equity over a three year period are
within 50-75% range of all companies in the S&P ASX 300.
2. Fifty percent of grant vests if the Company’s total shareholder return (TSR) over a three year
period is within 50-75% range of all companies in the S&P ASX 300
Valuation was undertaken in accordance with Accounting Standard AASB 2 (‘Share Based Payments’)
and an independent expert was retained to determine fair value of a trance of Performance Rights which
were based on market conditions. The valuation approach followed a two-step process:
1. calculate the fair value of each PR issued; and
2. determine the total value of the PRs issued giving consideration to the total number of equity
instruments expected to vest for Tranche 1.
The Directors interpreted AASB 2 to require the valuer for Tranche 1 to (a) consider the current likely
probability of achieving each of the vesting conditions within the specified performance periods, and
then (b) determine the number of equity securities that would be expected to vest, based on an
estimate of the likely success or failure of each of the vesting conditions for Tranche 1 with non Market
conditions. The Directors concluded that there was 100% estimated probability of success for the
Tranche 1 with non Market conditions.
(p) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
the profit attributable to owners of the Group, excluding any costs of servicing equity other
than ordinary shares
by the weighted average number of ordinary shares outstanding during the financial year,
adjusted for bonus entitlements in ordinary shares issued during the year and excluding
treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account:
the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares, and
the weighted average number of additional ordinary shares that would have been outstanding
assuming the conversion of all dilutive potential ordinary shares.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
2.
Significant accounting policies (continued)
(q) Trade receivables
Trade receivables are recognised at fair value, being the original invoice value any credit loss
allowance. They are non-interest bearing and generally on 30 credit terms from date of invoice.
The loss allowance is based on a simplified model of recognising lifetime expected credit losses
immediately upon recognition. Where a debt is known to be uncollectable, it is considered a bad
debt and written off.
(r) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of
financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition.
(s) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs
directly attributable to the issue of new shares or options for the acquisition of a business are not
included in the cost of the acquisition as part of the purchase consideration.
(t) Accounting standards adopted
The Group has adopted the following new accounting standards that have previously been assessed for
their impact on the Group’s financial report. There have been no changes in the previous assessment
of their impact which is not material to the Group:
AASB 2012-3
AASB 2013-3
Amendments to Australian Accounting Standards – Offsetting Financial
Assets and Financial Liabilities
Amendments to AASB 136 – Recoverable Disclosures for Non-Financial
Assets
AASB 2014-1
Amendments to Australian Accounting Standards (Parts A to C)
AASB 15
AASB 9
AASB 16
Revenues from contracts with Customers
Financial Instruments
Leases
(w) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the Chief
Executive Officer who makes strategic decisions.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
3. Parent Entity Information
The following details relate to the parent entity, Aspermont Limited, at 30 September 2020. The
information presented here has been prepared using consistent accounting policies as presented in note
2.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Contributed equity
Accumulated losses
Reserves:
Share based payment reserve
Financial asset reserves
Other Reserves
Currency Translation Reserve
Total Equity
Profit/(Loss) for the year
Other comprehensive loss for the year
2020
$000
2019
$000
2,632
8,049
942
8,179
10,681
9,122
5,484
1,979
4,034
2,454
7,463
6,488
8,540
7,441
(5,508)
(4,661)
1,482
(276)
(639)
(345)
1,113
(276)
(712)
(270)
3,254
2,634
(1,440)
(6,670)
121
(102)
Total Comprehensive income/(loss) for the year
(1,319)
(6,772)
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
4. Revenue
Continuing operations:
Sales revenue – subscriptions and advertising
Events revenue
Other income:
Interest
Other income
2020
$000
2019
$000
14,273
931
13,823
2,556
15,204
16,379
3
1,215
6
478
1,218
484
Amounts contained within other income is income generated through non-core activities such as the
disposal of non-core assets or government grants. The increase in this year is predominantly driven
by one-off Covid related Government grants received.
5. Expenses
Profit/ (loss) before income tax includes the following specific expenses:
(a) Expenses:
Bad debts written off
Consulting and accounting services
Depreciation and amortisation of plant, equip and intangible assets
Directors fees
Employee benefits expense
Foreign exchange gains/(losses)
Finance costs
Legal costs
Rental expense on operating lease
Write down of loan receivable
(b) Remuneration of auditors of the parent entity for:
Auditing or reviewing the accounts
2020
$000
2019
$000
27
82
1,437
312
3,127
(53)
82
(47)
393
-
(61)
55
1,062
364
3,754
(173)
97
218
511
4,944
5,360
10,771
82
79
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
6. Taxation
(a) Income tax expense/(benefit)
The components of tax expense/ (revenue) comprise:
Current tax
Deferred tax
The prima facie tax on profit/ (loss) before tax is reconciled to the income tax
as follows:
Profit/(loss) from operations
Income tax calculated at 27.5% (2018: 30%)
Tax effect of permanent differences:
Increase in income tax expense due to:
Non-deductible expenditure
Tax losses not recognised
Reversal of previously recognised temporary difference
Decrease in income tax expense due to:
Derecognise capital losses
Non-assessable income
Effect of different tax rates of foreign operations
Income tax expense/(benefit) attributable to profit from ordinary activities
2020
$000
2019
$000
-
96
96
-
(14)
(14)
(874)
(240)
(7,466)
(2,053)
183
99
96
49
544
-
(42)
-
1,355
91
96
(14)
Effective tax rate
(11%)
0%
(b) Deferred Tax
Deferred income tax at 30 September relates to the following:
Liabilities
Intangible assets in relation to business combinations
Other
Total
Assets
Provisions
Future benefit of carried forward losses
Fair value gain adjustments
Other
1,423
1,519
-
-
1,423
1,519
243
1,180
-
191
1,276
52
1,423
1,519
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
6. Taxation (continued)
Balance at 1 October 2018
Credited/(charged):
- to profit or loss
-to equity
Currency movements
Balance at 30 September 2019
Credited/(charged):
- to profit or loss
-to equity
Currency movements
Balance at 30 September 2020
Intangible assets
relating to
business
combinations
$000
2,272
(753)
-
-
1,519
-
(96)
-
1,423
The movement in deferred tax assets for each temporary difference during the year
is as follows:
Provisions
$000
Future
benefit of
carried
forward
losses
$000
Fair value
gain
adjustments
$000
Total
$000
Balance at 1 October 2018
176
2,044
Credited/(charged):
- to profit or loss
-to equity
Currency movements
15
-
(768)
-
Balance at 30 September 2019
191
1,276
Credited/(charged):
- to profit or loss
-to equity
Currency movements
52
-
(96)
-
Balance at 30 September 2020
243
1,180
52
-
-
52
(52)
-
-
2,272
(753)
-
1,519
(96)
-
1,423
2020
$000
2019
$000
Amounts recognised directly in equity
Aggregate current and deferred tax arising in the reporting period and
not recognised in the statement of comprehensive income but directly
debited or credited to equity:
Net deferred tax – credited directly to equity
(96)
14
Tax expense/(income) relating to items of other comprehensive income
Financial assets reserve
-
-
-
-
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
6.
Taxation (continued)
Tax consolidation
Aspermont and its wholly owned Australian subsidiaries are a tax consolidated group. The accounting
policy in relation to this legislation is set out in note 2 (f).
On adoption of the tax consolidation legislation, the entities in the tax consolidated group entered into
a tax sharing agreement which limits the joint and several liability of the wholly owned entities in the
case of a default by the head entity, Aspermont Limited.
7. Trade and other receivables
Current
Trade receivables
Allowance for expected credit loss
Note 7(a)
Other receivables
Related party receivables
Note 16(b)
2020
$000
2019
$000
1,004
(112)
892
398
16
929
(105)
824
509
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Total current trade and other receivables
1,306
1,379
Non-current
Loan – Nomad Limited Partnership
Loan – Impairment
Total non-current trade and other receivables
1,911
1,911
(1,911)
(1,911)
-
-
The consolidated entity has recognised a charge of $27,806 (2019: gain of $61,000) in profit or loss
in respect of the expected credit losses for the year ended 30 September 2020. The total 2020 ECL
allowance is $111,974 as detailed below.
The ageing of the receivables and allowance for expected credit losses provided for above are as
follows:
Consolidated
Not overdue
0-30 days overdue
30-60 days overdue
60+ days overdue
Expected ECL
%
Carrying
amount
$
Allowance
for ECL
$
4.50 %
1,322,145
5.55 %
20.54 %
33,444
14,169
24.49 %
194,577
59,554
1,855
2,910
47,656
1,564,335
111,975
Information about the Group’s exposure to interest rate risk and credit risk is provided in note 17.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
7. Trade and other receivables (continued)
(a) Allowance for Expected Credit Loss (“ECL”)
As at 30 September 2020 current trade receivables of the Group with a nominal value of $0.1m were
provided against (2019 – $0.1m).
The ageing of these receivables is as follows:
1 to 3 months
Over 3 months
Movements in the allowance for the impairment of receivables are as follows:
At 1 October
Allowance for impairment
Foreign exchange movement
Receivables written off
2020
$000
2019
$000
-
112
-
105
112
105
2020
$000
2019
$000
105
19
(12)
1,105
(65)
154
-
(1,089)
112
105
The creation and release of the allowance for impaired receivables has been included in “other
expenses” in the Statement of Profit or Loss. Amounts charged to the provision are generally written
off when there is no expectation of recovering additional cash.
(b)
Past due but not impaired
As at 30 September 2020, trade receivables of $0.4m (2019: $0.3m) were past due but not impaired.
These are not considered impaired due to the geographical location resulting in a delay in receiving
payment. Trade receivables include revenues deferred. The ageing analysis of these trade debtors is as
follows:
1 to 3 months
Over 3 months
2020
$000
2019
$000
217
193
239
34
410
273
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
7. Trade and other receivables (continued)
The other classes within trade and other receivables do not contain impaired assets and are not past
due. Based on the credit history of these other classes, it is expected that these amounts will be received
when due. The Group does not hold any collateral in relation to these receivables.
Information about the Group’s exposure to foreign currency risk and interest rate risk in relation to
trade and other receivables is provided in note 17.
Due to the short term nature of these receivables, their carrying amount is assumed to approximate
their fair value. The maximum exposure to credit risk at the end of the reporting period is the carrying
amount of each class of receivable mentioned above.
8. Other assets
Prepayments
2020
$000
2019
$000
394
411
394
411
Prepayments consist of insurance and rent that are recognised over the relevant period.
9. Property, Plant and Equipment
Property, Plant and Equipment comprise owned and leased assets that do not meet the definition of
investment property.
Property, Plant and Equipment – at cost
Accumulated depreciation
Owned Property, Plant & Equipment
Right-of-use assets – at cost
Accumulated depreciation
Right-of-use assets – at 1 October 2018 as previously reported
Adjustment on transition to AASB 16
Right-of-use assets – at 1 January 2019
Accumulated depreciation
Right-of-use assets – at 30 September 2019
Total Property, Plant and Equipment
Consolidated
2020
$000
2019
$000
1,766
1,724
(1,701)
(1,649)
65
75
105
(105)
-
-
1713
(798)
105
(105)
-
1,713
1,713
(343)
915
1,370
980
1,445
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
9. Property, Plant and Equipment (continued)
(a) Movements in carrying amounts
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Gross carrying amount
Balance at 1 October 2018
Adjustment on transition to AASB 16
Currency movements
Additions
Disposals
Additions
Disposals
Balance at 30 September 2019
Currency movements
Balance at 30 September 2020
Accumulated Depreciation
Balance at 1 October 2018
Adjustment on transition to AASB 16
Depreciation expense
Currency movements
Disposals
Depreciation expense
Currency movements
Disposals
Balance at 30 September 2019
Adjustment on transition to AASB 16
Net Book Value
As at 30 September 2019
As at 30 September 2020
Property,
Plant and
Equipment
$000
Leases and Right-
of-use Assets (b)
$000
Total
$000
1,686
-
36
2
-
105
1,713
-
-
-
1,791
1,713
36
2
-
1,724
1,818
3,542
46
(4)
-
-
-
-
46
(4)
-
1,766
1,818
3,584
(1,546)
-
(86)
(17)
-
(1,649)
-
(56)
4
-
(105)
(343)
-
-
-
(448)
-
(455)
-
-
(1,651)
(343)
(86)
(17)
-
(2,097)
-
(473)
4
-
75
65
1,370
1,445
915
980
Balance at 30 September 2020
(1,701)
(903)
(2,566)
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
9. Property, Plant and Equipment (continued)
(b)
Leases Liabilities
Maturity Analysis – contractual undiscounted cashflows
Less than one year
One to five years
More than five years
Current
Non-current
Total Undiscounted Lease Liabilities at 30 September
Lease liabilities included in the statement of financial position at 30
September
2020
$000
2019
$000
508
534
-
484
1,042
-
1,042
1,526
543
452
995
541
882
1,423
2020
$000
2019
$000
-
-
-
213
-
213
The Company leases its office building under a lease agreement on a five-year term with two years
remaining. It adopted AASB 16 on its effective date of 1 January 2019 and recognised this lease as a
right-of-use asset and a lease liability (see note 20). This resulted in recognising $1.7m as a right-of-
use asset previously treated as an operating lease and accumulated depreciation for the period from I
January 2019 of $0.3m. At 30 September 2020, the net carrying amount of right-of-use assets was
$1.0m (2019: $1.4m).
Lease payments not recognised as a liability
The Group has elected not to recognise a lease liability for short term leases (leases of expected term
of 12 months or less) or leases of low value assets. Payments made under such leases are expensed
on a straight-line basis.
The expenses relating to payments not included in the measurement of lease liability is as follows:
Short term leases
Leases of low value assets
Total
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
10. Intangible assets
Consolidated
Goodwill
$000
Software
$000
Purchased
mastheads
$000
Other
acquired
assets
$000
Total
$000
Gross carrying amount
Balance at 1 October 2018
13,439
3,886
10,582
1,275
29,182
Additions
Currency movements
-
128
502
-
-
136
-
-
502
264
Balance at 30 September
2019
Additions
Currency movements
Balance at 30 September
2020
Accumulated Amortisation
13,567
4,388
10,718
1,275
29,948
-
(146)
533
(13)
-
61
-
-
533
(98)
13,421
4,908
10,779
1,275
30,383
Balance at 1 October 2018
(13,439)
(2,835)
(2,791)
(1,275)
(20,340)
Amortisation expense
Currency movements
-
(577)
(128)
-
-
(76)
-
-
(577)
(204)
Balance at 30 September
2019
Amortisation expense
Currency movements
Balance at 30 September
2020
Net Book Value
As at 30 September 2019
As at 30 September 2020
(13,567)
(3,412)
(2,867)
(1,275)
(21,121)
-
146
(926)
32
-
(114)
-
-
(926)
64
(13,421)
(4,306)
(2,981)
(1,275)
(21,983)
-
-
976
7,851
602
7,798
-
-
8,827
8,400
The Group has allocated goodwill, software, purchased mastheads and other acquired assets to the
Publishing cash generating units (“CGU”).
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
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10. Intangible assets (continued)
a) Determination of Recoverable Amounts
The recoverable amount of the CGUs, which are classified within Level 3 of the fair value hierarchy, is
determined based on value in use using discounted cash flow projections based on financial forecasts
covering a five-year period with a terminal growth rate applied thereafter. The Group determined that
each of the components of Publishing (Print, Online and Events) to be a CGU. The Group performed its
annual impairment test in September 2020.
The cash flow projections which are used in determining any impairment require management to make
significant estimates and judgements (key assumptions in preparing projections are set out below).
Each of the assumptions is subject to significant judgement about future economic conditions and the
ongoing structure of the publishing and digital industries. Management has applied their best estimates
to each of these variables but cannot warrant their outcome. Management has determined that there
is no impairment as at 30 September 2020. In determining that no impairment was required at 30
September 2020, Management also took into consideration that the market capitalisation of the Group
was above the book value of its equity.
b) Impairment losses recognized
As a result of the analysis performed, there is headroom in the Group’s CGU (the recoverable value
exceeded the carrying amount) and management did not identify an impairment charge (2019: nil).
c) Key assumptions
The key assumptions on which management has based its cash flow projections when determining the
fair value less cost of disposal calculations are set out below. These assumptions are consistent with
industry market participant expectations.
Cash flow forecasts were used based on the EBITDA for the CGU for the Group’s latest five-year business
plan approved by the board on the following basis:
Year 1 cash flows - Based on current forecast in line with Board approved budgets.
Year 2-5 cash flows:
o Average EBITDA growth of 268% as a result of the following underlying assumptions:
o Revenue growth of 8% is assumed for media related activity on market maturity of established
products, continued roll-out, introduction of new products and services, product extensions and
continued channel development.
o Revenue growth of 12% in subscriptions – these assumptions are in line with current performance,
industry trends and management’s expectation of market development.
o Revenue decline in live events due to ongoing Covid impact for 12 months followed by growth of
30% in events – these assumptions are in line with past performance, and management’s
expectation of market development.
Investment expense for new initiatives on new products and services.
o
o Expenses expected to grow in line with business expansion.
o Terminal growth rate of 2% (30 September 2019: 2%) based on accepted principles of a mature
business operating in a stable environment for the foreseeable future.
o The pre-tax discount rate applied to the cash flow projections was 16% (2019: 16%) which reflects
management’s best estimate of the time value of money and the risks specific to media and events
market not already reflected in the cash flows and reflects the capital structure of the Group with
zero debt.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
10. Intangible assets (continued)
d) Sensitivity
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 16.0% to 24.5%,
Terminal growth rate – decrease from 2% to -17%
Year 1 to 5 cash flow forecasts – reduction of 45% EBITDA year on year.
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 that these mastheads are not used indefinitely given the brand recognition and market
position.
11. Trade and other payables
Current – unsecured
Trade payables
Sundry creditors and accrued expenses
Annual leave and long service leave provision
2020
$000
2019
$000
1,896
1,571
614
1,719
1,264
570
4,081
3,553
Trade and other payables are carried at amortised cost. Liabilities are brought to account for
amounts payable in relation to goods received and services rendered, whether or not billed to the
Group at reporting date. The Group operates in a number of diverse markets, and accordingly the
terms of trade vary by business. Terms of trade in relation to trade payables are, on average, 30
to 60 days from the date of invoice.
Information about the Groups’ exposure to risk is provided in note 17.
Due to the short-term nature of these payables, their carrying value is assumed to approximate
their fair value.
12. Income in advance
Current
Opening balance
Net movement during the year
2020
$000
2019
$000
4,702
755
4,193
509
5,457
4,702
Current income in advance relates to subscription, advertising and event revenue received prior to
services rendered.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
13. Issued capital
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Fully paid ordinary shares
Ordinary shares
At the beginning of the reporting period
Shares issued during the year:
Rights issue
Share issue costs
Employee share issue
Other
258F Capital Adjustment
At Reporting date
2020
#
2019
#
2020
$000
2019
$000
2,277,314,738
2,116,392,421
8,540
7,441
2,116,392,421
2,083,294,903
7,441
67,744
151,674,974
-
8,307,211
940,132
-
-
-
33,097,518
-
1,062
(58)
89
8
-
2,277,314,738
2,116,392,421
8,540
-
(6)
319
(60,616)
7,441
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.
Issued capital at 30 September 2020 amounted to $8.5m (2,277,314,738 ordinary shares). In October
2019, the Board of Directors resolved to reduce the share capital of the Company by $60.6m in
accordance with section 258F of Corporation act 2001. The capital reduction had the effect of reducing
the share capital account and Accumulated losses in the financial statements and did not impact the
net assets, financial results, cash flow, funding of the consolidated group or the number of shares
issued. As at 30 September 2019, prior to the reduction, the Company had accumulated losses of
approximately of $65.3m and its net assets were less than its share capital. The deficiency in its net
assets arose as a result of impairment in goodwill and intangible assets, losses related disposal or
discontinuation of businesses in the past and historical investment write-offs.
(a) Options
The establishment of the Executive Option Plan was approved by the directors in April 2000. The
Executive Option Plan is designed to retain and attract skilled and experienced board members and
executives and provide them with the motivation to make the Group successful. Participation in the
plan is at the Board’s discretion.
The exercise price of options issued will be not less than the greater of the minimum value set by the
ASX Listing Rules and the weighted average closing sale price of the Company's shares on the ASX over
the five days immediately preceding the day of the grant, plus a premium determined by the directors.
When shares are issued pursuant to the exercise of options, the shares will rank equally with all other
ordinary shares of the Company.
No options were granted under the plan during the year.
The table below summaries options in issue for the Consolidated and parent entity:
Balance at
the start of
the year
Number
Granted
during the
year Number
Exercised
during the
year
Number
Lapsed
during the
year Number
Balance at
end of the
year Number
Vested and
exercisable at
end of the
year Number
Weighted
Average
Exercise
Price
2020
333,577,323
2019
333,577,323
-
-
-
-
20,000,000
313,577,323
313,577,323
-
333,577,323
333,577,323
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
13. Issued capital (continued)
Of the above options 10,000,000 expire 12 December 2022 and 303,577,323 expire 30 September
2025.
The weighted average share price during the financial year was 0.9 cent (2019: 1.0 cent).
The weighted average remaining contractual life of options outstanding at the end of the financial
year was 4.62 years (2019: 5.61 years).
(b) Employee Performance Rights
Under the executive long-term incentive plan, Performance Rights (“Rights”) have been granted to
executives and other senior management who will have an impact on the Group’s performance. On
satisfaction of any vesting conditions, each Right will convert to a share on a one-for-one basis.
Details of the plan are included in the Remuneration Report on pages 28 to 29.
The total expense recognised for share-based payments during the financial year for the Group was
$664,323 (2019: $166,325). In addition to the normal issue of performance rights, there was an
additional accrual for the cost for some employee shares that will be issued in lieu of pay cuts that
were implemented during the year.
Outstanding at 1 October
Granted during the year
Forfeited during the year
Exercised
Lapsed during the year
2020
Number
2019
Number
89,500,000
45,000,000
45,622,970
44,500,000
-
-
750,000
-
-
-
Outstanding at 30 September
134,372,970
89,500,000
Share based reserve
The share-based payments reserve is used to recognise the grant date fair value of options issued to
employees but not yet exercised.
Currency translation reserve
Exchange differences arising on translation of the foreign controlled entity are taken to the currency
translation reserve, as described in note 2. The reserve is recognised in profit or loss when the net
investment is disposed of.
(c) Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going
concern, so that they can continue to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Group monitors capital on the basis of regularly reviewing working capital requirements and
projected cashflow needs of the business. Further information regarding the liquidity and capital risk
maintained by the Group is disclosed in Note 17 (c).
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
13. Issued capital (continued)
The gearing ratios at 30 September 2020 and 30 September 2019 were as follows:
Total Borrowings
Less: cash and cash equivalents
Net debt
Total equity
Total capital
Gearing ratio
2020
$000
2019
$000
35
(3,182)
(3,147)
3,253
43
(727)
(684)
2,634
106
(2,969%)
1,950
(35%)
14. Particulars in relation to controlled entities
Name of Entity
Parent entity:
Aspermont Limited
Controlled Entities:
Resourceful Events Pty Ltd
Corporate Intelligence & Communications Pty Ltd
Kondinin Information services Pty Ltd
Aspermont Media Limited
Aspermont (Hong Kong) Ltd
Aspermont Brazil Ltd
E-Farming
Place of
Incorp.
Class of
share
Economic Entity
Interest
2020
%
2019
%
NSW
NSW
WA
WA
UK
HKG
Brazil
NSW
Ord
Ord
Ord
Ord
Ord
Ord
Ord
100
100
100
100
100
100
100
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
15. Cash flow information
(a) Reconciliation of cash and cash equivalents
Cash at the financial year as shown in the statement of Cash Flows is reconciled
to items in Statement of financial Position as follows:
Cash at bank and on deposit
(b) Reconciliation of operating profit/ (loss) after tax to net cash from operating
activities
2020
$000
2019
$000
3,182
3,182
727
727
Loss after income tax
(970)
(7,452)
Non-cash flows in profit/ (loss)
Depreciation and amortisation
Impairment of loan receivable
Profit on sale of subsidiary
Impairment of intangible assets
Revaluation of loan receivable
Non-cash income tax expense
Share based payments
Non-cash items
Change in assets and liabilities:
(Increase)/Decrease in receivables
Increase/(Decrease) in creditors and accruals
Increase/(Decrease) in unearned revenue
(Decrease) in provisions
Decrease in income taxes payable
Increase in deferred taxes payable
1,437
-
96
664
43
456
755
1,062
5,480
-
-
-
(14)
166
-
527
(672)
509
-
-
-
Net cash used in operating activities
2,481
(394)
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
16. Key management personnel and related party disclosures
(a) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share based payments
2020
$000
2019
$000
1,924
80
353
1,876
73
168
2,357
2,117
Detailed remuneration disclosures are provided in the audited remuneration report on pages 17 to 28
of the Directors’ Report.
(b) Liabilities and loans from director related entities
Unsecured loans
Beginning of year
Loan advances
Loan repayments
End of year
2020
$000
2019
$000
(46)
811
(781)
(16)
(43)
814
(816)
(46)
Detailed loan movements are disclosed in the audited remuneration report on pages 17 to 30 of the
Directors’ Report.
(c) Other transactions with key management personnel and director related entities
Transactions between key management personnel are on normal commercial terms and conditions no
more favourable than those available to other parties unless otherwise stated. The Group leases its
principal office facility from Ileveter Pty Ltd, a company associated with a director, Mr A.L Kent. The
rent paid was at market rates at the time of lease inception. The lease agreement has a term of five
years expiring 30 October 2022.
2020
$000
2019
$000
Rental expense for principal offices
488
465
At 30 September 2020 the Company owed $23,750 (2019: $47,500) in unpaid Director Fees to current
Directors of the Company.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
17. Financial risk management
In the normal course of its operations, the consolidated entity is exposed to a variety of financial risks,
including market risk, credit risk and liquidity risk.
The consolidated entity’s overall risk management focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the financial performance of the business. The
consolidated entity does not use derivative financial instruments such as foreign exchange contracts to
hedge certain risk exposures. The consolidated entity uses different methods to measure different types
of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate,
foreign exchange and other price risks and ageing analysis for credit risk.
Risk management is carried out by the management team within the parameters thought prudent by
the Audit & Risk Committee of the Board.
(a) Market risk
(i)
Foreign exchange risk
The consolidated entity operates internationally and is exposed to foreign exchange risk arising from
various currency exposures, primarily with respect to the United Kingdom pound and US dollar and to
a lesser extent the Euro.
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities
that are denominated in a currency that is not the consolidated entity’s functional currency. The risk is
measured using sensitivity analysis and cash flow forecasting.
Management has instituted a policy requiring group companies to manage their foreign exchange risk
against their functional currency. The group companies are required to bring significant foreign currency
transactions to the attention of the central finance function for evaluation, if they occur.
A 10% strengthening/weakening of the Australian dollar against the following currencies at 30
September 2020 and 30 September 2019 would have increased/(decreased) profit or loss by the
amounts shown in the following table. The analysis assumes that all other variable, in particular interest
rate remain constant.
GBP
Total
2020
$000
2019
$000
10
10
(100)
(100)
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
17. Financial risk management (continued)
(a)
Market risk
The consolidated entity has revenues and resulting trade and other receivables in non-functional
currencies as follows:
Financial assets
Trade and other receivables
Non-current receivables
Total
USD
2020
EUR
USD
2019
EUR
$000
$000
$000
$000
194
194
61
61
211
-
211
58
-
58
Based on the financial instruments held by the consolidated entity as at the reporting date, the
sensitivity of the consolidated entity’s profit/(loss) after tax for the year and equity at the reporting
date to movements in the Australian dollar to US dollar and Australian dollar to Euro exchange rates
was:
Had the Australian dollar weakened/strengthened by 5% against the US dollar with all other
variables remaining constant, the consolidated entity’s profit after tax would have been $9,700
lower/higher (2019: $11,000 lower/higher).
Had the Australian dollar weakened/strengthened by 5% against the Euro with all other variables
remaining constant, the consolidated entity’s profit after tax would have been $3,050 lower/higher
(2019: $2,900 lower/higher).
(b) Credit Risk
Credit risk is the risk that counterparty will not complete its obligations under a financial instrument
resulting in a financial loss for the consolidated entity. Credit risk is managed co-operatively by the
finance function and operations for customers, including receivables and committed transactions and
at the consolidated entity level for credit risk arising from cash and cash equivalents, deposits with
banks and financial institutions.
The consolidated entity does not generally obtain collateral or other security to support financial
instruments subject to credit risk. As the profile of the revenue comprises a very large number of small
customers, the Group accepts some amount of credit risk but has historically experienced no significant
loss.
All cash balances are on deposit with banks that have S&P Long Term credit ratings of A in the UK and
AA in Australia.
The consolidated entity’s total capital is defined as the shareholders’ net equity plus net borrowings,
which amounted to $3.2m at 30 September 2020 (2019: $2.6m). The objectives when managing the
economic entity’s capital is to safeguard the business as a going concern, to maximise returns to
shareholders and to maintain an optimal capital structure in order to reduce the cost of capital.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
17. Financial risk management (continued)
(c)
Liquidity and capital risk
The consolidated entity does not have a target debt/equity ratio but has a policy of maintaining a
flexible financing structure so as to be able to take advantage of investment opportunities when they
arise.
The consolidated entity’s liquidity position is managed to ensure sufficient liquid funds are available to
meet its financial obligations in a timely manner. The consolidated entity manages liquidity risk by
continuously monitoring forecast and actual cash flows and ensuring that the consolidated entity has
the ability to access required funding. The consolidated entity has historically maintained backup
liquidity for its operations and currently maturing debts through its financial asset portfolio.
The following tables analyse the consolidated entity’s financial liabilities into maturity groupings based
on the remaining period from the reporting date to the contractual maturity date. As amounts disclosed
in the table are the contractual undiscounted cash flows including future interest payments, these
balances will not necessarily agree with the amounts disclosed on the statement of financial position.
Consolidated entity as at 30 September 2020:
Less
than 6
months
6-12
months
Between
1 and 2
years
Between
2 and 5
years
Total
contractual
Cashflows
Carrying
Amount
Non-derivatives
$000
$000
$000
$000
$000
$000
Trade and other payables
3,394
-
-
-
3,394 3,394
Borrowings
35
-
-
-
35
35
3,429
-
-
-
3,429
3,429
Consolidated entity as at 30 September 2019:
Non-derivatives
Trade and other payables
Borrowings
Less
than 6
months
6-12
months
Between
1 and 2
years
Between
2 and 5
years
Total
contractual
Cashflows
Carrying
Amount
$000
$000
$000
$000
$000
$000
2,950
43
2,993
-
-
-
-
-
-
-
-
-
2,950
43
2,950
43
2,993
2,993
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
17. Financial risk management (continued)
(c) Financial assets and liabilities by category
The financial instruments consist mainly of deposits with banks, accounts receivable and payable, bank
loans, related party loans and leases. Investments accounted for using the equity method are excluded
from the information provided below:
Weighted
average
interest
rate
Weighted
average
interest
rate
Balance
Balance
2020
2019
$000
$000
Financial Assets
Cash and cash equivalents
0.00%
3,182
0.00%
727
Trade and other receivable
Financial Liabilities
Trade and other payables
Related party borrowings
-
-
9.50%
1,306
1,896
35
-
-
9.50%
1,379
1,773
43
The fair value of cash and cash equivalents, trade and other receivables and trade and other payables
is considered to be a reasonable approximation of their fair value due to their short-term nature. The
fair value of borrowings as at the reporting date is considered to be a reasonable approximation of their
fair value. Refer to note 2 for the method used to fair value the non-current receivable.
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
18. 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:
Revenue
Media
Subscriptions
Events & Other revenue
Total segment revenue
Revenue by Geography
Australia/ Asia
Europe
America
Other
Total revenue
Result
Segment result
Unallocated items:
Corporate overheads and provisions
Depreciation
Amortisation
Impairment of receivable
Other income
Share based payments
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
2020
$000
7,575
6,664
965
15,204
8,396
2,103
3,948
757
15,204
2019
$000
7,175
6,401
2,803
16,379
8,914
2,849
4,123
493
16,379
3,291
2,714
(3,200)
(511)
(926)
-
1,218
(664)
(82)
(874)
10,758
3,181
1,423
-
15,362
10,651
-
1,423
35
12,109
(4,389)
(485)
(577)
(4,944)
484
(166)
(103)
(7,466)
11,723
726
1,519
-
13,968
9,727
(5)
1,519
94
11,335
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Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
18. Segment information (continued)
Reconciliation of reportable segment profit or loss:
Description of segments:
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 Chief
Executive Officer 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 to one category, being Publishing (a
combination of the Print, Digital and Events)
The segments derive revenue from the following products and services:
The Publishing segment derives subscription, advertising and sponsorship revenues from print and
online publications as well as from running events and holding conferences in various locations across
a number of trade sectors including the mining, agriculture, energy and resources sector. The Events
revenue derives revenue
Segment revenue and expenses:
Segment revenue and expenses are accounted for separately and are directly attributable to the
segments.
19. Earnings/ (loss) per share (EPS)
2020
$000
2019
$000
(a) Basic loss per share (cents per share)
(0.05)
(0.36)
(b) Diluted loss per share (cents per share)
(0.05)
(0.36)
(c) Loss used in calculating earnings per share
Loss attributable to the ordinary equity holders of the company used
in calculating basic and diluted loss per share
(970)
(7,452)
(d) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares outstanding during the
year used in calculating basic earnings per share
2,154,106,242
2,098,731,883
Options
313,577,323
333,577,323
Weighted average number of ordinary shares outstanding during the
year used in calculating diluted earnings per share
2,154,106,242
2,098,731,883
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72
Aspermont Limited
Notes to the Consolidated Financial Statements
For the Year ended 30 September 2020
20. Lease commitments
(a) Operating Lease
Operating lease commitments
Non-cancellable operating leases contracted for but not capitalised in the
financial statements:
Not later than 12 months
Between 12 months and 5 years
AASB 16 Adjustments
Non-cancellable operating leases contracted for capitalised in the financial
statements:
Not later than 12 months
Between 12 months and 5 years
2020
$000
2019
$000
-
-
-
508
534
1,042
213
-
213
484
1,042
1,526
(b) Finance Lease
The Group leases an office building for its office space. The Group has reclassified the lease as a finance lease. The
lease typically has a term of five years and adjusted for annual change in lease payment of up to 5% based on
changes in price indices.
21. Events subsequent to the year end
There were no events subsequent to the end of the year end that require disclosure.
22. 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 of the Group.
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73
Aspermont Limited a its Controlled Entities 30 September 2020
Directors’ Declaration
In the directors’ opinion:
1.the financial statements and notes set out on pages 35 to 73 are in accordance with the
Corporations Act 2001, including:
a) complying with Australian Accounting Standards, the Corporations Regulation
2001 and other mandatory professional reporting requirements; and
b) giving a true and fair view of the consolidated entity’s financial position as at 30
September 2020 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.
The directors have been given the declarations by the chief executive officer and chief
financial officer required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
A. Kent
Director
Perth
17 December 2020
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Independent Auditor’s Report to the members of Aspermont Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Aspermont Limited (the Company) and its subsidiaries (the Group), which comprises
the consolidated statement of financial position as at 30 September 2020, the consolidated statement of profit or loss and
other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and
the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 September 2020 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 as 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 forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters
described below to be key audit matters to be communicated in our report.
Intangible Assets
Refer to Note 10, Intangible Assets ($8,400,000) and accounting policy Notes 2(h).
Key Audit Matter
The Group has a significant amount of
Intangible assets.
Australian Accounting Standard (AASB) 136
Impairment of Assets, requires an annual
impairment test for intangible assets with
indefinite useful lives.
The impairment assessment involves
How our audit addressed the matter
Our audit work included, but was not restricted to, the following:
• Assessing
the
valuation methodology adopted by
management which is disclosed in Note 10 to the consolidated
financial statements;
• Assessing the assumptions and methodologies used by the
Group in the preparation of the discounted cash flow models;
T +61 8 6324 2900
ABN 51 609 542 458
E info@eldertongroup.com
W www.eldertongroup.com
A Level 2, 267 St Georges Terrace, Perth WA 6000
significant judgements and estimation from
management.
Due to these facts, the assessment of carrying
value of the intangible assets is considered to
be a key audit matter.
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• Challenging the key assumptions utilized in the discounted
cash flow model including the revenue and expense growth
rates, the terminal growth rate and discount rate by comparing
them to historical results, economic and other forecasts;
• Recalculating the mathematical accuracy of the discounted
cash flow model, agreeing budgeted cash flows to the latest
budget
against
budget/forecasts in prior periods;
performance
assessing
and
the
• Performed sensitivity analysis around the key assumptions
including the revenue and expense growth rates and discount
rate applied; and
• Evaluating the adequacy of the related disclosures.
Revenue Recognition
Refer to Note 4 and accounting policy Notes 2(i).
Key Audit Matter
The entity has
AUD15,204,000.
recognized
revenue of
Our audit work included, but was not restricted to, the following:
How our audit addressed the matter
The application of
recognition
accounting standards is complex and involves a
number of key judgements and estimates.
revenue
There is also a risk around the timing of revenue
the
recognition, particularly
contractual terms of delivery and location of the
customers.
focused on
Based on these factors, we have identified
revenue recognition as a key risk for our audit
• considering the appropriateness of the revenue recognition
accounting policies.
• understanding the significant revenue processes including
performance of an end to end walkthrough of the revenue
assurance process and identifying the relevant controls.
• testing the design and operating effectiveness of the relevant
controls
• performing cut off procedures by selecting a sample of
transactions close to the year-end and testing whether revenue
related to next financial year has been reported as income in
advance.
• assessing the transfer of control to the customer by reviewing
contracts and other supporting documentation.
• verifying a sample of transactions with supporting documents
• ensuring adequate disclosure in the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information in the Group’s annual
report for the year ended 30 September 2020, 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 on the other information obtained prior to the date of this auditor's report, 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.
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Responsibilities of Directors for the Financial Report
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The directors of the Group are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the
directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free
from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
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 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 the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the
financial report represents the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit
of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included on page 20 to page 30 of the directors' report for the year ended 30
September 2020.
In our opinion, the Remuneration Report of the Group, for the year ended 30 September 2020, complies with section 300A
of the Corporations Act 2001.
Responsibilities
The directors of the Group 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.
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Elderton Audit Pty Ltd
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Nicholas Hollens
Managing Director
Perth
17 December 2020
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Aspermont Limited
Additional Information for Listed Public Companies
(as 30 September 2020)
The following additional information is required by the Australian Securities Exchange Limited
in respect of listed companies:
a)
Shareholding
Ordinary Share Capital
2,277,314,738 (2019: 2,116,392,421) shares are held by 323 (2019: 322) individual
holders. All issued ordinary shares carry one vote per share.
Distribution of Shareholders Number
Category (size of holding)
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Ordinary shares
2020
2019
14
4
10
53
242
323
14
3
10
52
243
322
The number of shareholdings held with less than marketable parcel is 62 (2019:47).
b) Share Options (Unquoted)
Number of
Options
10,000,000
303,577,323
Number of Holders
Exercise Price
Date of Expiry
1
7
3c
3c
12 December 2022
30 September 2025
c) Unlisted Performance Rights
Number of
Rights
Number of Holders
134,372,970
11
d) Company Secretary
The name of the Company Secretary is Mr Tim Edwards.
e) Principal Registered Office
The address of the principal registered office in Australia is
613-619 Wellington Street, Perth, WA 6000
Ph +61 8 6263 9100
f) Register of Securities
The register of securities is held at the following address:
Automic Registry Services
Level 2, 267 St. Georges Tce, Perth WA, 6000
g) Stock Exchange Listing
Quotation has been granted for all of the ordinary shares of the Company on
all Member Exchanges of the Australian Securities Exchange Limited under the
symbol ASP.
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Aspermont Limited
Additional Information for Listed Public Companies
(as 30 September 2020)
h) Substantial Shareholders
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1
Name
Mr. Andrew Kent and beneficial
interests
Mr. John Stark and beneficial
interests
2
3 A Kent and beneficial interests
4 T Klinger and beneficial interests
Number of Ordinary fully
paid shares held
% Held of Issued
Ordinary Capital
588,692,951
407,170,603
266,892,102
140,915,087
25.85%
17.88%
11.72%
6.19%
i) 20 Largest Shareholders – Ordinary shares
Position Holder Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
DRYSDALE INVESTMENTS LIMITED
ALLANDALE HOLDINGS PTY LTD
MEGA HILLS LIMITED
ANNIS TRADING LIMITED
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