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WE EXIST TO BUILD AND
IMPROVE THE PERFORMANCE
OF ATHLETES AND TEAMS
CONTENTS
01 FY19 Key Achievements
02 Chairman’s Letter
04 Business Overview
06 FY19 Review of Operations
1 1 Report of the Directors
and Financial Report
98 Corporate Directory
Cover image: This photo was
taken during the semi-finals of
the Série A: Campeonato Carioca
state championship between
Clube de Regatas do Flamengo
and Fluminense FC. The game
was 1-0 in favour of Fluminense
when in the 23rd minute of the
second half, Flamengo forward
Gabriel Barbosa Almeida
scored a goal to level the game,
securing Flamengo’s place in
the Championship Final.
ANNUAL REPORT 2019
ANNUAL REPORT 2019
01
FY19 KEY
ACHIEVEMENTS
CUSTOMERS
PRODUCTS
FINANCIALS
2,970
teams, up more than
1,100 vs last year
›
153
teams with more than
one product
›
› Continued to sign league-
wide (aggregated) deals
including NRL, FFF, ITF, CAF
› Launched 7th generation
› Revenue
wearables product, Catapult
Vector, with first sales
$95.4m
› First sales of new video
up 24%
product, Catapult Vision
across all geo segments
– Americas, EMEA,
Asia-Pacific and Australia
› Launched PlayerTek+
› Enhancements to PLAYR
› EBITDA
$4.1m
up 310%
› ARR
$66.1m
up 24%
02
CATAPULT GROUP INTERNATIONAL LTD
CHAIRMAN’S LETTER
“
Catapult’s purpose is to improve the
performance of athletes and teams.
We continue to make great progress
serving this purpose. In 2019 Catapult
delivered its first positive EBITDA result
and extended its global leadership.
Dear Shareholders,
On behalf of your Board of Directors, it is our
pleasure to share with you the Catapult Group
International Ltd Annual Report for the financial
year ended 30 June 2019 (FY19).
Catapult’s global scale and emerging operating
leverage became more evident during FY19.
The Company added a record 1,100 new teams
as customers and delivered its first positive
EBITDA result.
Catapult is beginning to experience the scalability
typical of a successful subscription software
business, with expense growth falling whilst
revenue growth accelerates. The gap between
revenue and expense growth is now widening
as we pass this scalability inflection point.
We delivered our maiden positive EBITDA result
in a year that also included material investment
in R&D and the launch of several new and
innovative products. Our FY19 achievements
included the launch of the new elite wearable
platform, Catapult Vector, as well as significant
developments in Catapult Vision, our AMS
product and our consumer product PLAYR.
Vector provides a new standard for accuracy,
usability and efficiency to empower critical
decisions around performance, risk and return-
to-play. The company is pleased with Vector’s
initial take up by customers and is committed
to remaining the industry’s global leader
in technology and product innovation.
Global leadership and reputation
Catapult is the global leader in the elite sports
performance technology industry. We are
working with more than 2,970 teams in
137 countries across 39 sports.
Leveraging our global scale we delivered
significant revenue growth across all regions.
The Americas region continues to be Catapult’s
largest market and the Company recently
passed 1,000 teams in North America, including
11 of Catapult’s top 15 clients by revenue.
Pleasingly, the Americas continued to deliver
strong revenue growth, with revenue rising
19% to $65 million. This region accounts for 69%
of Catapult’s revenue and continues to represent
a key market opportunity with a very large
unaddressed market.
Elsewhere, the EMEA region was a standout for
growth with revenue growing 44% to $20 million.
The promising Asia-Pacific (APAC) region grew
revenue by 40% and the more mature Australia
region still reported revenue growth of 20%.
Catapult’s Elite wearables revenue grew by
33% to $45.3 million with an all-time record
volume of units sold. Unit ARPU was stable and
subscription churn fell further.
Catapult’s elite video revenue grew 14% to
$44.8 million, with 544 teams now using
Catapult’s video products. Demand continues
to be strong, and in line with the Company’s
growth strategy this product suite delivers high
gross margin subscription revenue.
Whilst the video business unit has traditionally
focused on North American clients, this division
is beginning to develop a global footprint.
FY19 was an important year for this global
expansion following the launch of Catapult
Vision, Catapult’s newest video solution that
delivers high margin subscription revenue and
addresses a wider range of international sports.
There has been positive early adoption of Vision
across all regions.
The prosumer category grew 54% to $5.3 million,
driven by the PLAYR consumer product.
Consistent with Catapult’s communicated
strategy, the prosumer division is right-sized
to focus on controlling expenditure and cash
ANNUAL REPORT 2019
03
flow, while capturing the large potential market
opportunity across the sub-elite and consumer
segments in a measured way. Regular updates
to the PLAYR offering have enhanced the
high engagement delivered to its growing
customer base.
2019 Financial highlights
Highlights from the 2019 financial results include;
› First positive EBITDA of $4.1 million, an
improvement of $6 million
› Annual recurring revenue (ARR) growth
of 24% to $66.1 million
› Group revenue growth of 24% to $95.4 million
› Operating expense growth reduced to
9%, down from 14% (pro-forma basis)
› Net loss after tax of $12.3 million, an
improvement of 29%
› $21.5 million cash at bank (at 16 August 2019);
up from $11.7 million at 30 June 2019
› Lower Elite Wearable subscription unit churn
of 5.2%, down from 8.4%
› Client growth of over 1,100 new teams taking
the total to 2,970 teams
Employing more than 340 people in a global
workforce Catapult continues to have its
major offices in the large sporting capitals
of Melbourne, Boston, and Leeds. We invested
in our sales and marketing capability over the
last two years and expect to leverage the future
growth opportunities in the elite market.
Outlook
The Board expects continued strong revenue
growth, and the emerging scalability will further
reduce operating expense growth.
There are three key drivers supporting continued
revenue and profit growth: greenfield sales
to new teams, up-selling additional capacity
to existing clients, and cross-selling additional
products to the more than 2,800 existing clients
that still use only one Catapult product.
Executing these growth opportunities will
progress Catapult’s transition to positive free
cash flow. I reiterate the company’s commitment
to positive free cash flow by FY21. We are
focused on bringing forward this positive free
cash flow target.
Your Company is at an exciting time in its history.
To maximise this opportunity the Board remains
focused on successfully completing the global
search to appoint a new CEO, and appointing a
CFO, whilst maintaining Catapult’s consistently
strong financial growth to deliver long-term
value to shareholders.
Finally, the Board wishes to thank the athletes,
teams and shareholders for their continued
support in the past year. Catapult’s continued
growth would not be possible without the
support of the Board, the Executive team
and the strong contributions from all our hard
working employees around the globe. Thank you.
Regards
Catapult has the characteristics of a subscription
software business with significant recurring
revenue, high growth, strong margins, and
low churn.
Dr Adir Shiffman
Executive Chairman
04
CATAPULT GROUP INTERNATIONAL LTD
BuSINESS OVERVIEW
CATAPuLT TIMELINE
Working with 2,970 teams
1999
2006
2013
2014
2017
2018
2019
First
Collaboration
in Australia
Catapult is
commercialised
IPO Stock
exchange
Reached
300
employees
Launched
Catapult
Vision &
PLAYR
Multiple acquisitions
First positive
EBITDA
of $4.1m
Launched
PlayerTek+
Launched
Catapult Vector
Elite Wearables
platform
GLOBAL MARKET LEADERSHIP IN ELITE SPORT
Countries with Catapult clients
Catapult Hub Offices
› 2,970 teams
› More than 1,100 new teams
as customers in FY19
› Operating in 137 countries
›
Involved with 39 sports
ANNUAL REPORT 2019
05
OuR STRATEGY
PuRPOSE
STRATEGIC OBJECTIVES
TO BuILD AND
IMPROVE THE
PERFORMANCE
OF ATHLETES
AND SPORTING
TEAMS AROuND
THE WORLD
OuR KEY POINTS
OF DIFFERENCE
Integrated sports
tech platform
Own the performance
technology stack for
Elite Sport
› Deliver integrated tech solution
› Aggressively grow market share
in team sport globally
Deep sports performance
knowledge
› Extend our product leadership
and stay on top of sports
tech innovation
› Provide market leading sports
performance knowledge
and support
› Leverage consumer products
as strategic asset in team/
league deals
› Effectively monetize our
wearable data and video content
Build a successful consumer
business
Global scale & reach
Best in class customer
experience and support
06
CATAPULT GROUP INTERNATIONAL LTD
FY19 REVIEW OF OPERATIONS
CATAPuLT’S GLOBAL SCALE AND EMERGING
OPERATING LEVERAGE
A high-growth
recurring revenue
business generating
high gross margins
and low churn
The global market
leader with the
best products
and service
Scalability: delivering
profitability and
transitioning to
positive free cash
› 24% ARR Growth
› 2,970 teams
› 73% gross margin
› 5.2% subscription
churn in FY19
› First positive
EBITDA result
of $4.1m
ANNUAL REPORT 2019
07
Catapult’s global scale and emerging operating leverage became more evident during FY19.
The Company adding a record 1,100 new teams as customers and delivering its first positive
EBITDA result.
Our first positive EBITDA result was driven by recurring revenue and new business growth.
Annualised recurring revenue (ARR) grew by 24% and EBITDA improved by $6 million to $4.1 million.
FY19 CONTINuED STRONG REVENuE GROWTH AND FIRST
POSITIVE EBITDA
TOTAL GROuP
FY19 $M
FY18 $M
% CHANGE
Annualised Recurring Revenue (ARR)
Revenue
EBITDA
66.1
95.4
4.1
53.4
76.8
(1.9)
24%
24%
310%
$6M
increase
We are pleased with the scalability evident in the result. Incremental revenue in FY19 produced
a higher EBITDA contribution or yield relative to the FY18 results. This higher EBITDA yield is an
outcome of continuing strong revenue growth and a declining rate of growth for operating
expenses as the business matures. The graphs following illustrate these dynamics.
EBITDA ($M)
REVENuE
INCREMENT
EBITDA
INCREMENT
6
4
2
0
-2
-4
-6
FY17
FY18
FY19
20
15
10
5
0
$18.6M
$12.4M
FY18
FY19
$6.0M
$2.0M
FY18
FY19
16%
Yield
32%
Yield
08
CATAPULT GROUP INTERNATIONAL LTD
FY19 REVIEW OF OPERATIONS CONT.
IMPROVING SCALE AND LEVERAGE ACROSS THE BuSINESS
OPERATING EXPENSE
TO REVENuE (%)
LABOuR EXPENSE
TO REVENuE (%)
90
80
70
60
60
50
40
FY17
FY18
FY19
FY17
FY18
FY19
We continue to deliver high rates of revenue growth and remain committed to innovation and
product development.
We believe this commitment enhances our ability to deliver future profitable growth. In FY19 we
invested $14.9 million in capital projects including $10.7 million in product development and research
and development.
This investment in product development also ensures we continue to provide unique world class
solutions across the performance technology stack – encompassing wearable technology, video
analysis and athlete management systems (AMS).
Our FY19 achievements included the launch of the new elite wearable platform, Catapult Vector,
as well as significant developments in Catapult Vision, our AMS product and our consumer
product PLAYR.
We see the potential to achieve growth in three key areas:
1. Greenfield opportunities with teams that are yet to adopt performance technology;
2. Up-sell within existing teams; and
3. Cross-sell opportunities across the technology stack.
There are now more than 2,970 teams in 137 countries across 39 sports who are customers of Catapult.
The growth and scale of our customer base reinforces our global leadership position in the sports
technology industry.
ANNUAL REPORT 2019
09
CATAPuLT HAS EXTENDED ITS GLOBAL LEADERSHIP
TEAMS BY
REGION (%)
TEAMS BY
SPORT (%)
7%
12%
42%
39%
● EMEA / 1,169
● AMERICAS / 1,231
● AUS / 349
● APAC / 221
24%
46%
5%
7%
9%
9%
● SOCCER / 1,385
● AMERICAN FOOTBALL / 257
● RUGBY / 267
● ICE HOCKEY / 203
● BASKETBALL / 148
● OTHER SPORTS / 712
Leveraging our global scale we delivered significant and efficient revenue growth across all regions
in FY19.
Revenue contribution and headcount growth by region
AMERICAS
EMEA
AuSTRALIA
ASIA PAC
GROuP
REVENuE
$65.4m
$19.6m
$5.4m
$5.0m
$95.4m
REVENuE
GROWTH
FY19
HEADCOuNT
GROWTH
+19%
+44%
+20%
+40%
+24%
+10%
+27%
+7%
+7%
+14%
The Americas region continues to be Catapult’s largest market and the Company recently passed
1,000 teams in North America, including 11 of Catapult’s top 15 clients by revenue. Pleasingly, the
Americas continued to deliver strong revenue growth, with revenue rising 19% to $65 million.
10
CATAPULT GROUP INTERNATIONAL LTD
FY19 REVIEW OF OPERATIONS CONT.
ELITE WEARABLE ANALYSIS
CuMuLATIVE ELITE uNITS
(000’S)
40
30
20
10
0
38.5
5.9
11.3
21.3
24.2
7.1
17.1
FY18
FY19
› $45.3M revenue up 33%
› 5.2% subs churn down from 8.4%
› Total units sold is 15.7k
› Total units sold excluding PT+ is 9.8k
› Cumulative subscription units up 25%
› EW subs ARPU* on subscriptions
stable at $108 per month
(FY18 $109)
› EW Capital ARPU: c$3k up 7%*
● SUBS UNITS ● CAPITAL UNITS
● PLAYERTEK+
*Excluding PlayerTek+
Catapult’s Elite wearables revenue grew by 33% to $45.3 million with an all-time record volume
of units sold. Unit ARPU was stable and subscription churn fell further.
Catapult’s elite video revenue grew 14% to $44.8 million, with 544 teams now using Catapult’s video
products. Demand continues to be strong, and in line with the Company’s growth strategy this
product suite delivers high gross margin subscription revenue.
The prosumer category grew by 54% to $5.3 million, driven by the PLAYR consumer product.
Total prosumer units sold grew by 47% to 20.5k units.
Consistent with Catapult’s communicated strategy in February 2019, the prosumer division has
been re-sized and is focused on controlling expenditure and cash flow and also capturing the large
potential market opportunity across the sub-elite and consumer segments in a more measured way.
Catapult is in a strong financial position as the business transitions to generating positive free cash
flow. Pleasingly, and as seasonally expected, cash receipts are strong in the early part of FY20 and
the cash balance as at 16 August 2019 was $21.5 million.
As at 30 June 2019 cash at bank was $11.8 million. The reduction in cash during FY19 was impacted by
two material non-recurring items with the Company becoming debt free having repaid a $3.3 million
loan in the first half of FY19 and investing $7 million in the consumer business. In addition there was a
one-off incremental investment in labour ($5 million) to drive growth in elite sales and product revenue.
AnnuAl RepoRt 2019
11
REPORT OF THE DIRECTORS
AND FINANCIAL REPORT
For the year ended 30 June 2019
CONTENTS
Directors’ Report
Remuneration Report (Audited)
Auditors Independence Declaration
Consolidated Statement of profit or loss
Consolidated Statement of other Comprehensive Income
Consolidated Statement of Financial position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes In equity
notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Directory
12
21
34
35
36
37
38
39
40
89
90
95
98
12
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT
the Directors of Catapult Group International ltd (‘Catapult’) present their Report together
with the financial statements of the consolidated entity, being Catapult Group International ltd
(‘the Company’) and its controlled entities (‘the Group’) for the year ended 30 June 2019 (‘FY19’).
DIRECTOR DETAILS
the following persons were Directors of Catapult Group International ltd during or since the end
of the financial year
Dr Adir Shiffman
MBBS, Medicine
executive Chairman
Appointed 4 September 2013
Member of Remuneration and
nomination Committee
Dr Adir Shiffman, executive Chairman
of Catapult, has extensive Ceo and board
experience in the technology sector.
Adir has founded and sold more than half
a dozen technology startups, many of which
were high growth SaaS (software as a service)
businesses. His expertise includes strategic
planning, international expansion, mergers
and acquisitions, and strategic partnerships.
Adir currently sits on several boards.
He is regularly featured in the media
in Australia, the uS and europe.
Adir graduated from Monash university
with a Bachelor of Medicine and a Bachelor
of Surgery. prior to becoming involved in the
technology sector, he practised as a doctor.
Other current Directorships:
none
Previous Directorships (last 3 years):
In past three years he has also been
a Director of iBuynew Group limited
(ASX:IBn) (Appointed February 2013.
Resigned March 2017).
Mr Shaun Holthouse
B.E. (Hon), Mechanical Engineering, GAICD
Founder, executive Director
(previously Ceo till 30 April 2017)
Shaun co-founded Catapult in 2006 and
served as Ceo up until 2017. During that
time, he played a central role in developing
Catapult’s wearable technology and is the
author of many of its patents. under his
leadership Catapult launched and expanded
sales into more than 15 countries – including
establishing subsidiaries in the uS and uK
and becoming the dominant elite wearable
company globally.
Shaun was responsible for raising early capital,
listing on the ASX, acquiring GpSports, XoS
and Kodaplay (playertek) and developing
Catapult’s strategy to grow from a wearable
only company to building out the technology
stack for elite sport and leveraging this into
consumer team sports.
prior Catapult, Shaun had extensive experience
in new technology transitioning into commercial
products, including biotechnology, MeMS, fuel
cells, and scientific instrumentation.
Shaun holds a Bachelor of engineering
(Hons) from the university of Melbourne
and is a graduate member of the Australian
Institute of Company Directors. He is the
author of numerous patents and patent
applications in athlete tracking, analytics
and other technologies. He also works as
a professional director as well as providing
advisory services for technology start-ups.
Other current Directorships:
none
Previous Directorships (last 3 years):
none
AnnuAl RepoRt 2019
13
Mr Igor Van de Griendt
B.E. Electrical Engineering
Mr Calvin Ng
BComm (Fins) LLB AMC DFP
Founder, executive Director
non-executive Director
Member of Risk and Audit Committee
Appointed 29 november 2013
Mr Igor van de Griendt was Chief operating
officer and an executive Director of Catapult
before moving into the role as Cto.
In his capacity as Cto, he has been responsible
for providing strategic direction and leadership
in the development of Catapult’s products, both
in the analytical space, as well as with respect
to Catapult’s various hardware offerings.
Igor also provides guidance and operational
support to Catapult’s R&D and software
and cloud development teams.
prior to co-founding Catapult, Igor
was a project Manager for the CRC for
microtechnology which, in collaboration
with the Australian Institute of Sport,
developed several sensor platforms and
technologies ultimately leading to the
founding of Catapult.
prior to joining the CRC for microtechnology,
Igor ran his own consulting business that
provided engineering services for more than
13 years to technology companies such as
Redflex Communications Systems (now part
of exelis, nYSe:XlS), Ceramic Fuel Cells
(ASX:CFu), ericsson Australia, Siemens,
neC Australia and telstra.
Igor holds a Bachelor of electrical engineering
from Darling Downs Institute of Advanced
education (now university of Southern
Queensland). Igor is also the author of numerous
patents and patent applications in athlete
tracking, and other sensor technologies.
Chair of Risk and Audit Committee
Mr Calvin ng has significant investment
banking, mergers & acquisitions and funds
management experience.
Calvin is a co-founder and Managing Director
of the Aura Group, an independent corporate
advisory and funds and wealth management
business. He is also a co-founder of the Finsure
Group, one of Australia’s largest mortgage
groups. Finsure recently merged with Goldfields
Money limited to create Australian challenger
bank BnK Banking Corporation (ASX:BnK).
Calvin has significant board experience in
several businesses, with particular expertise
in providing management oversight and
strategic guidance to small and medium
sized enterprises.
Calvin currently sits on a number of boards,
including entities associated with the Aura
Group, Finsure Group and ASX-listed iBuynew
Group limited (ASX:IBn).
Calvin holds a Bachelor of Commerce and
Bachelor of laws from the university of
new South Wales. Calvin has also completed
a Graduate Diploma of legal practice and
has been admitted to practice as a lawyer
in the Supreme Court of new South Wales.
Other current Directorships:
iBuynew Group limited (ASX:IBn)
(Appointed February 2013)
Other current Directorships:
Previous Directorships (last 3 years):
none
none
Previous Directorships (last 3 years):
none
14
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT (CONTINUED)
Mr Brent Scrimshaw
Independent Non-Executive Director
Mr James Orlando
BSc, MBA
Appointed 24 november 2014
executive Director, Interim CFo
Appointed 24 october 2016
Member of Risk and Audit Committee
Member of Remuneration and
nomination Committee
Mr James orlando has held senior finance
positions driving growth and shareholder
value in the united States, Asia and Australia.
Most recently he was the CFo of Veda Group
ltd (VeD.ASX), leading the company through
its successful Ipo in December 2013.
Before joining Veda, James was the CFo
of AApt where he focused on improving
the company’s earnings as well as divesting
its non-core consumer business. He also served
as the CFo of powertel ltd, an ASX-listed
telecommunications service provider which
was sold to telecom new Zealand in 2007.
James also held various international treasury
positions at At&t and lucent technologies
in the uS and Hong Kong including running
lucent’s international project and export
finance organisation.
Other current Directorships:
none
Previous Directorships (last 3 years):
none
Chair of Remuneration and
nomination Committee
Mr Brent Scrimshaw has over 25 years of
experience in consumer innovation, executive
business leadership and brand management
within the global sports industry.
Brent had an 18-year career at nike Inc,
where he held senior leadership roles in
Australia, europe and the united States,
including Vice president and Chief executive
of nike Western europe; Chief Marketing
officer and Vice president of Category
Businesses for nike europe, Middle east and
Africa; and General Manager of nike’s east
Coast united States operations in new York.
As one of nike Inc’s 30 most senior leaders
worldwide, Brent has also served on nike’s
Global Corporate leadership team, where
he helped lead the creation of nike’s overall
brand and global operating strategy, as
well as playing a senior role as a key member
of the Global Commercial operations
executive team, responsible for sales
and distribution strategies worldwide.
Brent is also a non-executive Director
at Rhinomed ltd, an ASX listed medical
technology company focused on enhancing
human efficiency through innovative
respiratory technologies and also a
non-executive Director at ASX listed
Kathmandu Holdings ltd, a specialty
outdoor clothing and equipment retailer
with over 160 stores in AuS, nZ and the uK.
Brent was formerly a Director of Fox Head Inc,
the worlds largest manufacturer and marketer
of performance Moto-X and actions sports
lifestyle products, and Founder and Ceo of
unscriptd ltd which was acquired by new York
media company the players tribune in Dec 2018.
Other current Directorships:
Rhinomed ltd (ASX:Rno)
(Appointed February 2014)
Kathmandu ltd (ASX:KAt)
Previous Directorships (last 3 years):
unscriptd ltd
AnnuAl RepoRt 2019
15
COMPANY SECRETARY
Markus Ziemer is a lawyer and was previously employed in legal and commercial roles including
as General Manager Corporate Services at pacific Hydro pty ltd., Ashton Mining ltd., and
Senior Counsel newcrest Mining ltd. He received his undergraduate llB and BA degrees from
the university of Melbourne and an MBA from Melbourne Business School. Markus was appointed
Company Secretary of Catapult Group International on 28 September 2017.
PRINCIPAL ACTIVITIES
During the year, the principal activities of entities within the Group were:
• the development and sale of wearable tracking solutions and analytics to elite sporting
teams, leagues and associations;
• the development and sale of digital video coaching and analytics solutions to elite sporting
teams, leagues and associations;
• the development and sale of wearable tracking solutions and analytics to prosumer athletes,
sporting teams and associations; and
• the development and sale of an athlete management platform and analytics to elite sporting
teams, leagues and associations.
the Group’s wearable and video solutions are provided to elite clients on both a subscription
and upfront sales basis, with subscription sales forming the majority of all sales to elite clients.
the Group is the global leader in wearable tracking technology and analytics solutions for the
sports performance market with 2,970 teams. the Group is also a market leader in providing
innovative digital and video analytic software solutions to elite sports teams in the united States.
With major offices in Australia, the united States and the united Kingdom and over 340 staff
in more than 18 countries, Catapult is an Australian technology success story with a truly global
footprint that is committed to advancing the way data is used in elite sports.
REVIEW OF OPERATIONS & FINANCIAL RESULTS
the Group has recorded a decreased loss of $12,580,990 (2018: $17,360,108).
loss per share for the year was ($0.066) cents (2018: ($0.10) cents) and no dividend will be paid
or declared.
the Group’s net assets decreased to $120,683,169 compared to the previous years’ position
of $127,070,810.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
During the year, the following change occurred within the Group:
new product Release: During the year, Catapult launched its new elite wearables VeCtoR
product. VeCtoR delivers a new level of accuracy, usability, and efficiency to empower critical
decisions about performance, risk, and return to play. this product launch continues the Group’s
commitment to being the global leader in wearable tracking technology.
In the Directors’ opinion, there have been no other significant changes in the state of affairs
of the consolidated entity during the financial year.
EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD
the Directors are not aware of any matter or circumstance that has arisen since the end of the
financial year that, in their opinion, has significantly affected, or may significantly affect in future
years, Catapult’s operations, the results of those operations or the state of Catapult’s affairs.
16
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT (CONTINUED)
LIKELY DEVELOPMENTS, BUSINESS STRATEGIES AND PROSPECTS
Based on the expected demand for athlete analytics globally and the continued growth
in the Group’s sales and marketing platform across key regions, we are optimistic about the
long-term growth opportunity. Furthermore, Catapult Group has continued to broaden its
suite of athlete analytics solutions through the acquisitions of XoS, plAYeRteK and AMS,
resulting in a substantially larger addressable market opportunity across a wider range of
customers in both elite and prosumer sporting leagues. Catapult Group expects to benefit
in these new segments with increasing sales and brand loyalty.
BUSINESS RISK
In executing its growth plans, Catapult Group is subject to the following key market,
operational and acquisition risks outlined below:
Economic risk
Catapult may be affected by general economic conditions. Changes in the broader economic
and financial climate may adversely affect the conduct of the Catapult’s operations. In particular,
sustained economic downturns in key geographies or sectors, in particular sports business and
consumer sectors, where Catapult is focused, may adversely affect its financial performance.
Changes in economic factors affecting general business cycles, inflation, legislation, monetary
and regulatory policies, as well as changes to accounting standards, may also affect the
performance of Catapult.
Industry and competition risk
Catapult’s performance could be adversely affected if existing or new competitors reduce
Catapult’s market share, or its ability to expand into new market segments. Catapult’s existing
or new competitors may have substantially greater resources and access to more markets than
Catapult. Competitors may succeed in developing new technologies or alternative products
which are more innovative, easier to use or more cost effective than those that have been or
may be developed by Catapult. this may place pricing pressure on Catapult’s product offering
and may impact on Catapult’s ability to retain existing clients, as well as Catapult’s ability to
attract new clients. If Catapult cannot compete successfully, Catapult’s business, operating
results and financial position could be adversely impacted.
Technology and hosting platforms
Catapult relies on a third-party hosting provider to maintain continuous operation of its
technology platforms, servers and hosting services and the cloud-based environment in
which Catapult provides its products. there is a risk that these systems may be adversely
affected by various factors such as damage, faulting or aging equipment, power surges or
failures, computer viruses, or misuse by staff or contractors. other factors such as hacking,
denial of service attacks, or natural disasters may also adversely affect these systems and
cause them to become unavailable. Further, if Catapult’s third-party hosting provider ceased
to offer its services to Catapult and Catapult was unable to obtain a replacement provider
quickly, this could lead to disruption of service to the Catapult website and cloud infrastructure.
this could lead to a loss of revenue while Catapult is unable to provide its services, as well
as adversely affecting its reputation. this could have a material adverse effect on Catapult’s
financial position and performance.
AnnuAl RepoRt 2019
17
Cyber security
Catapult provides its services through cloud based and other online platforms. Hacking or
exploitation of any vulnerability on those platforms could lead to loss, theft or corruption of
data. this could render Catapult’s services unavailable for a period while data is restored.
It could also lead to unauthorised disclosure of users’ data with associated reputational
damage, claims by users, regulatory scrutiny and fines. Although Catapult employs strategies
and protections to try to minimise security breaches and to protect data, these strategies
and protections might not be entirely successful. In that event, disruption to Catapult’s services
could adversely impact on Catapult’s revenue, profitability and growth prospects. the loss
of client data could have severe impacts to client service, reputation, and the ability for clients
to use the products.
Manufacturing and product quality risks
Catapult currently uses third party manufacturers to produce components of its products.
there is no guarantee that these manufacturers will be able to meet the cost, quality and volume
requirements that are required to be met for Catapult to remain competitive. Catapult’s products
must also satisfy certain regulatory and compliance requirements which may include inspection
by regulatory authorities. Failure by Catapult or its suppliers to continuously comply with applicable
requirements could result in enforcement action being taken against Catapult.
As a manufacturer, importer and supplier of products, product liability risk, faulty products and
associated recall and warranty obligations are key risks of the Catapult business. While Catapult
has product liability insurance, not all claims will be covered by this and the fallout from product
liability issues may be far greater than what an insurance policy is able to cover.
Foreign exchange
Foreign exchange rates are particularly important to Catapult’s business given the significant
amount of revenue which Catapult derives outside Australia. Catapult’s financial statements
are prepared and presented in Australian dollars. Adverse movements in foreign currency
markets could affect Catapult’s profitability and financial position.
Development and commercialisation of intellectual property
Catapult relies on its ability to develop and commercialise its intellectual property. A failure
to protect, develop and commercialise its intellectual property successfully would lead to a loss
of opportunities and adversely impact the operating results and financial position of Catapult.
Furthermore, any third party developing superior technology or technology with greater commercial
appeal in the fields in which Catapult operates may harm the prospects of Catapult.
Catapult’s success depends, in part, on its ability to obtain, maintain and protect its intellectual
property, including its patents. Actions taken by Catapult to protect its intellectual property
may not be adequate, complete or enforceable and may not prevent the misappropriation
of its intellectual property and proprietary information or deter independent development
of similar technologies by others.
the granting of a patent does not guarantee that Catapult’s intellectual property is protected
and that others will not develop similar technologies that circumvent such patents. there can
be no assurance that any patents Catapult owns, controls or licences, whether now or in the
future, will give Catapult commercially significant protection of its intellectual property.
Monitoring unauthorised use of Catapult’s intellectual property rights is difficult and can be
costly. Catapult may not be able to detect unauthorised use of its intellectual property rights.
Changes in laws in Australia and other jurisdictions in which Catapult operates may adversely
affect Catapult’s intellectual property rights.
18
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT (CONTINUED)
BUSINESS RISK (continued)
Development and commercialisation of intellectual property (continued)
other parties may develop and patent substantially similar or substitute products, processes,
or technologies to those used by Catapult, and other parties may allege that Catapult’s products
incorporate intellectual property rights derived from third parties without their permission.
Whilst Catapult is not the subject of any claim that its products infringe the intellectual property
rights of a third party, allegations of this kind may be received in the future and, if successful,
injunctions may be granted against Catapult which could materially affect the operation of
Catapult and Catapult’s ability to earn revenue, and cause disruption to Catapult’s services.
the defence and prosecution of intellectual property rights lawsuits, proceedings, and related
legal and administrative proceedings are costly and time-consuming, and their outcome is
uncertain. In addition to its patent and licensing activities, Catapult also relies on protecting
its trade secrets. Actions taken by Catapult to protect its trade secrets may not be adequate
and this could erode its competitive advantage in respect of such trade secrets. Further, others
may independently develop similar technologies.
Further product development risk
Catapult has developed its athlete video and tracking technology and software products
and continues to invest in further systems and product development.
Catapult gives no guarantee that further development of its video and athlete tracking technology
and software products will be successful, that development milestones will be achieved, or that
Catapult’s intellectual property will be developed into further products that are commercially
exploitable. there are many risks inherent in the development of technologies and related products,
particularly where the products are in the early stages of development. projects can be delayed
or fail to demonstrate any benefit or may cease to be viable for a range of reasons, including
scientific and commercial reasons.
Brand and reputation damage
the brand and reputation of Catapult and its individual products are important in retaining
and increasing the number of clients that utilise Catapult’s technology and products and could
prevent Catapult from successfully implementing its business strategy. Any reputational damage
or negative publicity surrounding Catapult, or its products could adversely impact on Catapult’s
business and its future growth and profitability.
Product liability
Catapult’s business exposes it to potential product liability claims related to the manufacturing,
marketing and sale of its products. Catapult maintains product liability insurance. However, to
the extent that a claim is brought against Catapult that is not covered or fully covered by insurance,
such claim could have a material adverse effect on the business, financial position and results
of Catapult. Claims, regardless of their merit or potential outcome, may adversely impact on
Catapult’s business and its future growth and profitability.
Litigation
Catapult may in the ordinary course of business be involved in disputes. these disputes could
give rise to litigation. While the extent of any disputes and litigation cannot be ascertained
at this time, any dispute or litigation may be costly and may adversely affect the operational
and financial results of Catapult.
Dividends
In respect of the current year, no dividend has been paid by Catapult Group International limited.
AnnuAl RepoRt 2019
19
DIRECTORS’ MEETINGS
the number of Directors’ meetings (including meetings of Committees of Directors) held
during the year, and the number of meetings attended by each Director, is as follows:
Board Meetings
Audit and Risk
Committee
Remuneration
and Nomination
Committee
A
8
8
8
8
8
8
B
8
8
8
7
8
8
A
–
–
5
5
–
5
B
–
–
5
5
–
5
A
3
–
–
–
3
3
B
3
–
–
–
3
3
Director’s Name
Adir Shiffman
Shaun Holthouse
Igor van de Griendt
Calvin ng
Brent Scrimshaw
James orlando
Where:
Column A is the number of meetings the Director was entitled to attend; and
Column B is the number of meetings the Director attended.
UNISSUED SHARES UNDER OPTION AND RIGHTS
unissued ordinary shares of Catapult Group International limited under option at the date
of this report are as follows:
Date Options Granted
Expiry Date
31 october 2014
31 october 2014
14 April 2016
14 April 2016
14 April 2016
14 April 2016
31 october 2019
31 october 2019
14 April 2021
1 January 2021
1 January 2021
14 April 2021
22 September 2016
22 September 2019
22 September 2016
29 March 2021
22 September 2016
22 September 2019
30 november 2016
1 May 2017
1 May 2022
1 May 2022
1 november 2017
31 october 2022
19 December 2017
22 September 2022
19 December 2017
22 June 2022
19 December 2017
31 December 2020
19 December 2017
19 December 2017
22 July 2021
30 July 2022
19 December 2017
19 December 2022
23 January 2019
14 March 2019
30 June 2023
24 March 2024
Exercise
Price of
Shares
Number
under
Options
$0.55
$0.61
$2.20
$2.31
$1.55
$1.68
$3.78
$2.50
$2.50
$3.00
$2.54
$1.72
$2.50
$2.08
$2.08
$2.59
$2.13
$1.83
$1.42
$0.78
381,000
960,000
404,666
50,000
300,000
90,000
300,000
24,182
40,000
645,000
837,500
150,000
75,000
400,000
175,000
65,000
54,000
695,000
2,456,911
611,112
8,714,371
20
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT (CONTINUED)
UNISSUED SHARES UNDER OPTION AND RIGHTS (continued)
During the financial year ending 30 June 2019 the company issued 4,237,426 options as part
of the employee Share plan. the options were issued at an average exercise price of $1.33 and
an average fair value of $0.23.
unissued ordinary shares of Catapult Group International ltd under rights at the date
of this report:
Date Rights Granted
Expiry Date
30 november 2016
22 September 2019
23 January 2019
31 August 2019
Exercise
Price of
Shares
$0.00
$0.00
Number
under
Rights
100,000
305,116
405,116
All options and rights expire on their expiry date.
All options and rights are issued in accordance with the CSeSp, as approved by shareholders.
SHARES ISSUED DURING OR SINCE THE END OF THE YEAR AS A RESULT
OF EXERCISE
During the 12 months to 30 June 2019 the Group allocated 140,645 treasury shares as part
of options and rights exercised under the employee Share plan. the options and rights were
exercised at an average exercise price of $0.55 and $0.00 respectively.
AnnuAl RepoRt 2019
21
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
the Directors of Catapult Group International ltd present the Remuneration Report for
non-executive Directors, executive Directors and other Key Management personnel, prepared
in accordance with the Corporations Act 2001 and the Corporations Regulations 2001.
REMUNERATION REPORT
Letter from the Chairman of the Nominations and Remuneration Committee
Dear Shareholders
Catapult’s 2019 Remuneration Report for the year to 30 June 2019 is set out below.
the report reflects the revised remuneration policy which we introduced and outlined
in last year’s Remuneration Report.
It should be highlighted that the nominations and Remuneration Committee has been actively
involved in leading the recruitment process of a new Ceo, CFo and a new independent director.
We have been well served in the interim by our executive directors engaging more deeply in
the business, most notably Jim orlando who is capably serving all shareholders as our Interim
CFo. As previously communicated, executive Directors Adir Shiffman and Shaun Holthouse
also increased their time commitment to the business during the past six months as required.
the Committee has also been greatly assisted by improvements made by the human resources
team during the year improving staff remuneration structures, implementing detailed salary
banding, more granular performance assessment to aid talent management and initiatives
to promote improved gender diversity across the business.
As discussed in last year’s Annual Report and more recently in our announcement to the ASX
on 31 May 2019, we remain committed to review the composition of the Board in the medium
term. to that end Mr Igor van de Griendt has already transitioned to a non-executive director
role from July 2019, following the appointment of Rick Wingfield as Cto. Shaun Holthouse
will also transition to a non-executive director role following the appointment of a new Ceo
in due course. Board composition will also be enhanced with the intended appointment of
a new independent director prior to the end of this calendar year.
our drive to deliver greater alignment with shareholders through our remuneration policy
is outlined in this Remuneration Report. this alignment was further underlined by the senior
executive team agreeing to take short term incentives, previously agreed to be paid in cash,
in the form of performance rights. We have an aligned team of motivated executives, staff
and directors, both executive and non-executive and our focus is on sustainably building this
high growth, global business.
Yours Sincerely
Brent Scrimshaw
Independent non-executive Director
Chairman of the nominations and Remuneration Committee
22
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (CONTINUED)
OVERVIEW
the Board’s nomination and Remuneration Committee, which operates in accordance with its
charter as approved by the Board, is responsible for determining and reviewing compensation
arrangements for the Directors’ and the executive team.
As outlined in the 2018 Annual Report, the revised remuneration policy adopted by Catapult
emphasises the Board’s desire to align executive remuneration and shareholder interests and
includes the following key improvements:
•
long term incentive equity grant terms to include a total shareholder return hurdle,
with a nil award where compounding annual growth rate is below 12.5% pa;
• Benchmarking of executive remuneration performed by independent remuneration consultant
to ensure market competitiveness;
• transition to deferral of StI awards through equity awards to create increased shareholder
alignment, motivate retention and preserve cash;
•
incentives focused on key metrics of revenue and eBItDA as Catapult continues to drive
for global dominance in its market;
• Ceo remuneration reviewed to include a market competitive mix of remuneration consisting
of fixed and ‘at risk’ components. the ‘at risk’ components consist of short-term incentives
(StI) and long-term incentives (ltI) under a clearly defined framework;
• Selected executives reporting to the Ceo will receive a performance balanced remuneration mix;
• Selected other executives will receive fixed annual remuneration (FAR) and StI with the
StI awarded in both cash and equity (with deferral); and
• All other employees will receive FAR, or FAR and StI. they may also be eligible to participate
in Catapult Sports employee Share plan (CSeSp) previously approved by shareholders,
on specific terms to be determined.
Catapult’s target mix of remuneration is as follows:
Remuneration Strategy Mix
FAR
STI
LTI
CEO
Other executive KMP
Other executives
Other employees
33% up to 33% 1 up to 34%
50% up to 25% 1 up to 25%
70% up to 30% 1
80% up to 20% 1
0% 2
0% 2
TAR
100%
100%
100%
100%
1.
STI may be awarded part in cash and part in equity with deferral.
2. CSESP participation may be considered.
the terms and participation in both StI and ltI will be decided on an annual basis.
the criteria for earning short and long-term incentives are reviewed by the nomination and
Remuneration Committee annually, consistent with the remuneration policy and as part of
the review of executive remuneration. the Committee’s recommendation is put to the full
Board for approval.
Catapult’s revised remuneration strategy relating specifically to Key Management personnel
can be further illustrated as set out in the following diagram.
AnnuAl RepoRt 2019
23
CATAPULT EXECUTIVE KMP REMUNERATION OBJECTIVES
Shareholder value
creation through
equity components.
An appropriate
balance of ‘fixed’ and
‘at risk’ components.
Creation of award
differentiation to
drive performance
culture and
behaviours.
Attract motivate
and retain executive
talent required at
stage of development.
TOTAL ANNUAL REMUNERATION (TAR) OR TOTAL TARGET REMUNERATION (TTR)
IS SET BY REFERENCE TO RELEVANT MARKET BENCHMARKS
Fixed
At Risk
Fixed Annual
Remuneration (FAR)
Fixed remuneration is
set based on relevant
market relativities
reflecting
responsibilities,
performance,
qualifications,
experience and
geographic location.
Short Term Incentives (STI)
Long Term Incentives (LTI)
StI performance criteria are
set by reference to Group,
Business unit and Individual
performance targets
appropriate to the specific
position and set each.
targets are linked to
Catapult group objectives
such as tSR CAGR or
other specified metrics
as determined by the
Board each year.
REMUNERATION TO BE DELIVERED AS:
Base salary plus
any allowances
(includes
superannuation
for Australian
executives).
paid as cash on completion
of the relevant performance
period. Deferral of a portion of
the StI into equity (performance
rights) to be considered for
individual roles.
Awarded as equity and
vest (or not) at the end
of the performance period.
TOTAL ANNUAL REMUNERATION (TAR) OR TOTAL TARGET REMUNERATION (TTR)
tAR or ttR is intended to be positioned in the 3rd quartile compared to relevant
market-based comparisons.
4th quartile tAR or ttR may be derived if demonstrable out performance is achieved
by Catapult Group.
these remuneration objectives will be reviewed annually by the Board. Any variation from these
objectives will be considered on a ‘case’ by ‘case’ basis to ensure Catapult retains flexibility in the
various international markets in which it operates.
SHORT TERM INCENTIVE (STI)
the following table sets out the revised criteria for StI awards as recommended by the Independent
Remuneration Consultants, reviewed by the nominations and Remuneration Committee and
adopted by the Board. StI awards will continue to be measured against business critical financial,
Group and business unit objectives. performance gates will be set annually to determine the
threshold standard to be met for eligibility for the financial metrics related portion of the StI
award. the performance gate will emphasise and drive executive performance alignment with
shareholder interests. In setting the financial and personal KpIs and the performance gate, the
Board will apply measurable and controllable objectives which align with strategic objectives
and enhance shareholder value.
24
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (CONTINUED)
SHORT TERM INCENTIVE (STI) (continued)
the measures target areas the Board believes hold the greatest potential for expansion and profit
and cover financial and non-financial measures.
the Key performance Indicators (‘KpI’s’) for the executive team are summarised as follows:
performance area:
• financial – consistent with the early growth stage focus of the business key metrics of achieving
revenue growth targets and underlying eBItDA; and
• non-financial – strategic goals set in relation to each executive’s business unit objectives and
job description.
Some key financial performance measures are highlighted in the following table.
Item
epS (dollars)
2019
2018
2017
2016
(0.066)
(0.100)
(0.086)
(0.050)
Dividends (cents per share)
–
–
–
Revenue ($’000)
95,375
76,793
60,783
underlying eBItDA* ($’000)
Statutory eBItDA ($’000)
net loss ($’000)
Share price ($)
5,461
4,081
955
(1,945)
2,858
(3,713)
(12,581)
(17,360)
(13,581)
1.095
1.225
2.330
–
17,368
(4,400)
(6,789)
(5,871)
3.080
2015
(0.04)
–
11,777
(2,500)
(4,600)
(4,309)
1.040
* Underlying EBITDA is statutory EBITDA, adding back employee share plan costs and severance costs. In previous years
acquisition and integration costs have also been added back to underlying EBITDA.
the board determined that the best alignment with company strategy was to build revenue
through growth in sales and market share. the executive team was accordingly set financial
targets relating to revenue and underlying eBItDA.
the StI program for FY19 is a cash and equity-based reward for the executive team and cash
reward for other employees consistent with the remuneration policy.
An important development in the revised StI policy to apply from 1 July 2018 is the transition
to deferral of StI through a Board determined proportion of annual StI awards to be awarded
as equity. Such awards will be forfeited if the participant leaves their employment with Catapult
before the vesting date. this service condition can be waived only in exceptional circumstances.
the number of equity units awarded will be determined as at 1 July in the year after the completion
of the performance period, based on the 5-day VWAp applicable on that date.
STI criteria
Revised terms adopted effective 1 July 2018
Participants
KMp and other employees as determined by the Board.
STI $ Value
Based on remuneration strategy intention.
Performance
Criteria and
Weightings
Performance
Period
STI Payment
Date
STI Deferral
For disclosed executives (KMp) StI awards will be weighted towards financial
outcomes and/or be subject to a financial performance gate or cap. KpI will consist
of a mix of financial, customer, talent and employees and businesses unit objectives.
1 July to 30 June.
on or before 30 September each year.
StI deferral will apply to the Ceo, designated executive KMp and selected
others in FY19 grants vest in August 2020. In subsequent years the deferral
period will be at least one (1) year after vesting and be contingent on future
service only. Deferred StI will be awarded as RSu, performance rights or
similar. the Board will determine the % of any StI to be awarded as equity.
STI $ value
‘trade-off’
the number of equity units (RSu, performance rights or similar) will be
determined as at 1 July in the year after the completion of the performance
period based on the 5 day VWAp applicable on that date.
AnnuAl RepoRt 2019
25
STI criteria
Revised terms adopted effective 1 July 2018
Service
restriction
Clawback
Any StI deferral provided will be forfeited if the participant leaves before
the vesting date. the Board has the discretion to waive this restriction,
in exceptional circumstances.
StI to executive KMp will be subject to a Clawback and Malus policy that
may apply from time to time.
Date of Offer
– STI & Equity
on or before 30 September once the StI $ value has been determined
and the number of equity units for StI deferral is calculated.
In accordance with the above policy, the following StI awards were made in relation to the
performance of executive Directors and KMp during FY19:
Total
At Risk
Amount
($)
Earned
during
year
Percentage
vested
during the
year
Percentage
undeter-
mined at
30 June Performance criteria
Executive Directors
Adir
Shiffman
Shaun
Holthouse
Igor
van de
Griendt
James
orlando (i)
200,000
129,000
65%
50,000
29,563
65%
0% performance against Revenue
& eBItDA targets, operational
and strategic metrics
0% performance against Revenue
& eBItDA targets, operational
and strategic metrics
123,000
79,335
65%
0% performance against Revenue
0
0
0%
& eBItDA targets
technology development targets
0% performance against Revenue
& eBItDA targets, operational
and strategic metrics
Other Key Management Personnel
Joe
powell (ii)
400,000
150,000
0
0
0%
0% performance against Revenue
& eBItDA targets
performance against operational
& people Metrics
0%
0% performance against Revenue
& eBItDA targets
Finance Function targets
141,300
85,133
60%
0% performance against Revenue
& eBItDA targets
Key performance targets for
RoW Region
257,922
152,174
59%
0% performance against Revenue
& eBItDA targets
Key performance targets for
Americas Region
(i) James Orlando was not eligible for an STI award per his employment contract and appointment as Interim CFO.
(ii) Mark Hall and Joe Powell resigned during FY19.
Mark
Hall (ii)
Barry
Mcneill
Matt
Bairos
26
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (CONTINUED)
LONG TERM INCENTIVE (LTI)
the following table sets out the revised criteria for ltI awards as recommended by the
Independent Remuneration Consultants, reviewed by the nominations and Remuneration
Committee and adopted by the Board. the Board has determined that executives will be
motivated by the granting of premium priced share options (15% above 5 day VWAp at the
time of option pricing) with a hurdle rate to be achieved of a minimum compounding annual
growth rate (CAGR) of 12.5% in total Shareholder Return (tSR). If that hurdle is met at the
relevant vesting date, 50% of those options become exercisable. the proportion of options
vesting increases to 100% if a 17.5% tSR CAGR is achieved, with a pro rata entitlement between
12.5% and 17.5% tSR CAGR. Directors are of the view that this simple and transparent formula
for awarding premium priced options provides strong incentive for executives and only rewards
them when all shareholders have benefited from a meaningful CAGR in total shareholder return.
LTI Terms FY19
Applicable from 1 July 2018
Participants
KMp and other employees as determined by the Board.
LTI $ Value
Based on remuneration strategy intention, as approved by the Board.
Equity type
options.
Exercise Price
15% above the VWAp at the date of pricing the option.
Date of Pricing
the date of pricing will be the 5 day VWAp as at 1 July.
Number
the number of options will be determined by dividing the ltI $ value (in
accordance with the remuneration strategy) by the option value determined
using the ‘Contract life’ value of the option at the date of pricing of the option.
Issue Price
none.
Performance
Criteria
Hurdle Rates
Service and
Performance
Period
tSR absolute.
tSR CAGR <12.5% p.a. (0% vesting); 12.5% p.a. to 17.5% p.a. (50% to 100%
pro-rata).
From FY20 a 3 year term applies for service and tSR measurement.
Last Exercise Date 5 years after grant.
Dilution
Clawback
Minimum
Shareholding
Change
of Control
total dilutive impact and prospectus relief calculation to be determined
once final allocations approved.
unexercised ltI will be subject to any Clawback policy that may apply from
time to time.
no minimum shareholding guidelines or policies are in place.
100% of unvested options will vest on a Change of Control.
AnnuAl RepoRt 2019
27
the relative proportions of remuneration, earned by executive Directors and KMp during FY19,
that are linked to performance and those that are fixed are as follows:
Name
Executive Directors
Adir Shiffman
Shaun Holthouse (i)
Igor van de Griendt (i)
James orlando (ii)
Other Key Management Personnel
Joe powell (iii)
Mark Hall (iii)
Barry Mcneill
Matt Bairos
Fixed
remuneration
At risk -
STI
At risk -
options
65%
76%
71%
80%
n/a
n/a
72%
55%
28%
12%
21%
0%
n/a
n/a
17%
20%
7%*
12%*
8%*
20%
n/a
n/a
11%
25%
* At risk options pertain to options voluntarily relinquished by Directors’ in FY19.
(i)
Includes Director Fees.
(ii) James Orlando was not eligible for an STI award per his employment contract and appointment as Interim CFO.
(iii) Mark Hall and Joe Powell resigned during FY19.
long term incentives are provided exclusively by way of options, and the percentages
disclosed reflect the valuation of remuneration consisting of options, based on the value
of options expensed during the year.
SERVICE AGREEMENTS
Remuneration and other terms of employment for the executive Directors and other
Key Management personnel are formalised in a Service Agreement. the major provisions
of the agreements relating to remuneration are set out below:
Name
salary Term of agreement
Notice period
Base
Annual
Director’s
fees not
included
in base
salary
Adir Shiffman
$300,000 Director appointment
one (1) month
–
term in accordance with
CAt constitution
Shaun Holthouse (i)
$164,384 Director appointment
three (3) months
$85,000
term in accordance with
CAt constitution
Igor van de Griendt (ii)
$182,648 Director appointment
three (3) months
$85,000
term in accordance with
CAt constitution
James orlando
$283,101 Director appointment
two (2) months
$92,528
term in accordance with
CAt constitution
Joe powell
Mark Hall
Barry Mcneill
Matt Bairos
$500,000 permanent
$300,000 permanent
$379,953 permanent
$423,344 permanent
Six (6) months
three (3) months
three (3) months
twelve (12) months
–
–
–
–
(i) Shaun Holthouse will transition to a non-executive director role following the appointment of a new CEO.
(ii)
Igor van de Griendt has transitioned to a non-executive director role from July 2019.
28
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (CONTINUED)
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30
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (CONTINUED)
SHARE-BASED REMUNERATION
All options refer to options over ordinary shares of the Company, which are exercisable
on a one-for-one basis under the terms of the agreements. All options remain subject
to review and approval by the Remuneration and nomination Committee and Board.
DETAILS OF OPTIONS AND RIGHTS HOLDINGS
Name
Grant Date
Held at
1 July
2018
Granted
as
remuner-
ation
Net
change
other
Held at 30
June 2019
Vested
during the
year
Joe powell
1-May-17 2,000,000
– (1,662,500)
337,500
500,000
23-Jan-19
23-Jan-19
–
–
Adir Shiffman
1-Dec-16
200,000
Calvin ng
1-Dec-16
200,000
30-nov-16
100,000
Shaun Holthouse
1-Dec-16
200,000
Igor van de
Griendt
1-Dec-16
200,000
Brent Scimshaw
1-Dec-16
200,000
–
–
–
–
–
–
161,290
(80,645)
80,645
80,645
796,052
(796,052)
(200,000)
(200,000)
–
–
–
–
100,000
100,000
–
100,000
100,000
(200,000)
(200,000)
–
–
100,000
100,000
(200,000)
–
100,000
–
(iv)
Mark Hall
1-nov-17
750,000
–
(600,000)
150,000
150,000
150,000
150,000
31-oct-18 30-oct-22
$0.75
$112,845
$1.72
23-Jan-19
23-Jan-19
–
–
60,484
(60,484)
238,815
(238,815)
–
–
–
960,000
–
–
–
Barry Mcneill
31-oct-14
960,000
14-Apr-16
100,000
–
–
23-Jan-19
23-Jan-19
–
–
25,555
201,805
Matthew Bairos
22-Sep-16
66,000
22-Jun-17
400,000
–
–
23-Jan-19
23-Jan-19
–
–
47,130
372,180
–
–
–
–
–
–
–
100,000
100,000
100000
100,000
12-Apr-19
14-Apr-21
$0.54
$54,150
25,555
201,805
66,000
–
400,000
100,000
47,130
372,180
–
–
James orlando
14-Mar-19
–
611,112
–
611,112
–
–
(iii)
611,112 25-May-20 24-Mar-24
$0.33
$203,256
(i) Options which did not meet vesting during the period (30,000) but under issue terms may be eligible to vest in the
event of future performance.
(ii)
Issuance of new share rights and options in line with updated Executive remuneration policy outlined in the FY2018
financial statements.
(iii) As disclosed to ASX on 30 May 2019, Mr Orlando was granted 611,112 share options as part of his remuneration
as Interim CFO.
(iv) During the reporting period, Directors Shiffman, Holthouse, van de Griendt, Scrimshaw and Ng surrendered 100,000
options issued in accordance with shareholder resolutions passed at the 2016 AGM.
(v) Forfeited options for Mark Hall and Joe Powell following their resignations in FY2019.
(vi) Performance conditions for KMP options and rights is included under ‘LTI’ section of the remuneration report.
(v)
(ii)
(ii)
(iv)
(iv)
(iv)
(iv)
(v)
(ii)
(ii)
(ii)
(ii)
(i)
(ii)
(ii)
–
–
–
–
–
–
–
–
–
–
Vested
as at
30 June
337,500
80,645
2019 Note
Vesting
Schedule
Vesting
date
Expiry
rights at
rights at
Date
grant date
grant date
337,500
1-May-18
1-May-22
$0.52
$174,386
40,322
31-Dec-18
31-Jan-19
40,323
30-Jun-19
30-Jun-19
$1.24
$1.24
$49,999
$50,001
Exercise
price per
option
$2.54
$0.00
$0.00
Value per
Total value
option/
of option/
100,000
100,000 23-Mar-19
22-Sep-19
$3.27 $327,000
$0.00
960,000
320,000
15-Sep-15
31-oct-19
$0.08
$24,960
320,000
15-Sep-16
31-oct-19
320,000
15-Sep-17
31-oct-19
$0.13
$0.17
$42,240
$55,040
25,555
31-Aug-19
30-Jun-23
$1.24
$31,688
201,805
31-Aug-20 30-Jun-23
66,000
22-Sep-19 20-Mar-20
$0.22
$1.20
$43,428
$78,995
170,000
100,000
22-Jun-18
22-Jun-22
$0.77
$76,820
100,000
22-Jun-19
22-Jun-22
$0.83
$82,530
100,000 22-Jun-20
22-Jun-22
$0.88
$88,110
100,000
22-Jun-21
22-Jun-22
$0.93
$93,320
47,130
31-Aug-19
30-Jun-23
$1.24
$58,441
372,180 31-Aug-20 30-Jun-23
$0.22
$80,093
$0.61
$0.61
$0.61
$2.20
$0.00
$1.42
$2.50
$2.08
$2.08
$2.08
$2.08
$0.00
$1.42
$0.78
AnnuAl RepoRt 2019
31
Vesting
Schedule
Vesting
date
Expiry
Date
Value per
option/
rights at
grant date
Total value
of option/
rights at
grant date
337,500
1-May-18
1-May-22
$0.52
$174,386
40,322
31-Dec-18
31-Jan-19
40,323
30-Jun-19
30-Jun-19
$1.24
$1.24
$49,999
$50,001
Exercise
price per
option
$2.54
$0.00
$0.00
Vested
as at
30 June
2019 Note
337,500
80,645
–
–
–
(v)
(ii)
(ii)
(iv)
(iv)
30-nov-16
100,000
–
–
100,000
100,000
100,000
100,000 23-Mar-19
22-Sep-19
$3.27 $327,000
$0.00
–
–
(iv)
(iv)
–
(iv)
150,000
–
–
(v)
(ii)
(ii)
150,000
31-oct-18 30-oct-22
$0.75
$112,845
$1.72
Barry Mcneill
31-oct-14
960,000
–
960,000
960,000
320,000
15-Sep-15
31-oct-19
$0.08
$24,960
14-Apr-16
100,000
100,000
100,000
100000
100,000
12-Apr-19
14-Apr-21
$0.54
$54,150
320,000
15-Sep-16
31-oct-19
320,000
15-Sep-17
31-oct-19
$0.13
$0.17
$42,240
$55,040
James orlando
14-Mar-19
–
611,112
–
611,112
–
–
(iii)
611,112 25-May-20 24-Mar-24
$0.33
$203,256
(ii)
(ii)
(i)
(ii)
(ii)
–
170,000
–
–
25,555
31-Aug-19
30-Jun-23
$1.24
$31,688
201,805
31-Aug-20 30-Jun-23
66,000
22-Sep-19 20-Mar-20
$0.22
$1.20
$43,428
$78,995
100,000
22-Jun-18
22-Jun-22
$0.77
$76,820
100,000
22-Jun-19
22-Jun-22
$0.83
$82,530
100,000 22-Jun-20
22-Jun-22
$0.88
$88,110
100,000
22-Jun-21
22-Jun-22
$0.93
$93,320
47,130
31-Aug-19
30-Jun-23
$1.24
$58,441
372,180 31-Aug-20 30-Jun-23
$0.22
$80,093
$0.61
$0.61
$0.61
$2.20
$0.00
$1.42
$2.50
$2.08
$2.08
$2.08
$2.08
$0.00
$1.42
$0.78
SHARE-BASED REMUNERATION
All options refer to options over ordinary shares of the Company, which are exercisable
on a one-for-one basis under the terms of the agreements. All options remain subject
to review and approval by the Remuneration and nomination Committee and Board.
DETAILS OF OPTIONS AND RIGHTS HOLDINGS
Held at
1 July
2018
Granted
as
remuner-
ation
Net
Vested
change
Held at 30
during the
other
June 2019
year
Name
Grant Date
Joe powell
1-May-17 2,000,000
– (1,662,500)
337,500
500,000
23-Jan-19
23-Jan-19
–
–
796,052
(796,052)
161,290
(80,645)
80,645
80,645
Adir Shiffman
1-Dec-16
200,000
Calvin ng
1-Dec-16
200,000
Shaun Holthouse
1-Dec-16
200,000
Igor van de
Griendt
1-Dec-16
200,000
(200,000)
(200,000)
(200,000)
(200,000)
Brent Scimshaw
1-Dec-16
200,000
(200,000)
–
100,000
Mark Hall
1-nov-17
750,000
–
(600,000)
150,000
150,000
23-Jan-19
23-Jan-19
–
–
60,484
(60,484)
238,815
(238,815)
Matthew Bairos
22-Sep-16
66,000
22-Jun-17
400,000
400,000
100,000
23-Jan-19
23-Jan-19
23-Jan-19
23-Jan-19
–
–
–
–
25,555
201,805
47,130
372,180
–
–
–
–
–
–
–
25,555
201,805
66,000
47,130
372,180
–
100,000
100,000
100,000
100,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(i) Options which did not meet vesting during the period (30,000) but under issue terms may be eligible to vest in the
(ii)
Issuance of new share rights and options in line with updated Executive remuneration policy outlined in the FY2018
(iii) As disclosed to ASX on 30 May 2019, Mr Orlando was granted 611,112 share options as part of his remuneration
event of future performance.
financial statements.
as Interim CFO.
(iv) During the reporting period, Directors Shiffman, Holthouse, van de Griendt, Scrimshaw and Ng surrendered 100,000
options issued in accordance with shareholder resolutions passed at the 2016 AGM.
(v) Forfeited options for Mark Hall and Joe Powell following their resignations in FY2019.
(vi) Performance conditions for KMP options and rights is included under ‘LTI’ section of the remuneration report.
32
CAtApult GRoup InteRnAtIonAl ltD
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (CONTINUED)
DETAILS OF SHAREHOLDINGS
the movement during the year in the number of ordinary shares held directly, indirectly or
beneficially, by each key management personnel, including their related parties, is as follows:
Name
Adir Shiffman (a)
Shaun Holthouse
Held at
1 July 2018
7,292,100
21,275,000
Igor van de Griendt
20,508,000
James orlando (b)
Brent Scrimshaw (c)
Calvin ng (d)
Joe powell
55,000
15,150
621,100
50,000
Received
on exercise
of options/
rights
Purchased
or sold
during year
Net change
other*
Held at
30 Jun 2019
–
–
–
–
–
–
80,645
–
–
–
25,000
–
–
–
–
–
7,292,100
21,275,000
– 20,508,000
–
–
–
–
80,000
15,150
621,100
130,645
(a) Adir Shiffman holds a relevant interest in another 9,811,600 shares held by Disruptive Special Opportunities Fund I
by virtue of him being the sole shareholder in BBHF Pty Ltd which is a 23% shareholder of Disruptive Capital Pty Ltd
which is the Trustee of the Fund. He holds a relevant interest in another 11,552,000 shares held by Disruptive Special
Opportunities Fund II by virtue of him being the sole shareholder in BBHF Pty Ltd which is a 23% shareholder of
Disruptive Capital Pty Ltd which is the Trustee of the Fund.
(b) James Orlando holds a relevant interest in 80,000 shares by way of his relationship with Kimberly Ann Foltz.
(c) Brent Scrimshaw holds a relevant interest in 15,150 shares held by B&A Scrimshaw Superannuation Fund which
is controlled by Mr Scrimshaw.
(d) Calvin Ng holds a relevant interest in another 9,811,600 shares held by Disruptive Special Opportunities Fund I by
virtue of him being the sole shareholder in Ng Capital Management Pty Ltd which is a 24.34% shareholder in Aura
Group Holdings Pte Ltd which is the ultimate shareholder of entities owning 77.06% of Disruptive Capital Pty Ltd
which is the Trustee of the Fund. He holds a relevant interest in another 11,552,000 shares held by Disruptive Special
Opportunities Fund II by virtue of him being the sole shareholder in Ng Capital Management Pty Ltd which is a 24.34%
shareholder in Aura Group Holdings Pte Ltd which is the ultimate shareholder of entities owning 77.06% of Disruptive
Capital Pty Ltd which is the Trustee of the Fund. He also holds a relevant interest in another 2,000 shares held by
Aura Funds Management 1 Pty Ltd Ltd by virtue of him being the sole shareholder in Ng Capital Management Pty Ltd
which is a 24.34% shareholder in Aura Group Holdings Pte Ltd, which is the ultimate shareholder of entities owning
a 100% shareholding in Aura Funds Management Pty Ltd.
Refer to note 29 in the financial statements for details regarding related party transactions and
transactions with key management personnel, summarised as follows:
Calvin ng is a director of Aura Group pty ltd. During the year, the Group did not engage Aura
Capital pty ltd (a subsidiary of Aura Group Services ltd) for advisory services (2018: $5,189).
Catapult rents office space from Aura Group Services ltd in Sydney and Singapore for a total cost
of $27,716 (2018: $28,971) and had an amount payable as at 30 June 2019 of $3,618 (2018: $6,794).
INDEPENDENT REMUNERATION CONSULTANT
During FY19 a remuneration consultancy contract was entered by the company and accordingly
the following disclosure is made in accordance with s300A(1)(h) of the Corporations Act.
Consultant: Ian Crichton, Remuneration Consultant, Crichton & Associates pty ltd.
Services provided: Remuneration benchmarking, review of remuneration policy and practice
and recommendations for the improvement of those policies and practices (fees: $8,625).
other services: pricing and valuations of grants made during the FY19 and related work
(fees: $11,244).
the Board is satisfied that the making of remuneration recommendations and related advice
was free from undue influence by the executive KMp. As a result, the appointment selection,
engagement and interaction was the responsibility of the independent director member of the
nomination and Remuneration Committee, Mr Brent Scrimshaw. the Independent Remuneration
Consultant confirmed that he was not subject to any undue influence.
END OF AUDITED REMUNERATION REPORT
AnnuAl RepoRt 2019
33
DIRECTORS’ REPORT
ENVIRONMENTAL LEGISLATION
Catapult Group International ltd operations are not subject to any particular or significant
environmental regulation under a law of the Commonwealth or of a State or territory in Australia.
INDEMNITIES GIVEN AND INSURANCE PREMIUMS PAID TO AUDITORS AND OFFICERS
During the year, Catapult Group International ltd paid a premium to insure officers of the
Group. the officers of the Group covered by the insurance policy include all Directors.
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 the Group, and any other
payments arising from liabilities incurred by the officers in connection with such proceedings, other
than where such liabilities arise out of 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 Group.
Details of the amount of the premium paid in respect of insurance policies are not disclosed
as such disclosure is prohibited under the terms of the contract.
the Group has not otherwise, during or since the end of the financial year, except to the extent
permitted by law, indemnified or agreed to indemnify any current or former officer or auditor
of the Group against a liability incurred as such by an officer or auditor.
NON-AUDIT SERVICES
During the year, Grant thornton, the Company’s auditors, performed certain other services
in addition to their statutory audit duties.
the Board has considered the non-audit services provided during the year by the auditor and
is satisfied that the provision of those non-audit services during the year is compatible with,
and did not compromise, the auditor independence requirements of the Corporations Act 2001
for the reason the non-audit services do not undermine the general principles relating to auditor
independence as set out in ApeS 110 Code of ethics for professional Accountants, as they did not
involve reviewing or auditing the auditor’s own work, acting in a management or decision-making
capacity for the Company, acting as an advocate for the Company or jointly sharing risks
and rewards.
Details of the amounts paid to the auditors of the Company, Grant thornton, and its related
practices for audit and non-audit services provided during the year are set out in note 25 to the
Financial Statements.
A copy of the Auditor’s Independence Declaration as required under s307C of the Corporations
Act 2001 is included on page 34 of this financial report and forms part of this Directors’ Report.
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, to taking responsibility on behalf of the Company for all or part
of those proceedings.
Signed in accordance with a resolution of the Directors.
Dr Adir Shiffman
executive Chairman
22 August 2019
34
CAtApult GRoup InteRnAtIonAl ltD
AUDITORS INDEPENDENCE DECLARATION
AnnuAl RepoRt 2019
35
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 30 June 2019
Revenue
other income
Cost of goods sold
employee benefits expense
employee share option compensation expense
Capital raising and listing expenses
travel, marketing and promotion
occupancy
professional fees
other expenses
loss on disposal of assets
Operating profit/(loss) before depreciation
and amortisation
Depreciation and amortisation
Operating loss
Finance costs
Finance income
other financial items
Loss before income tax benefit/(expense)
Income tax benefit/(expense)
Loss after income tax benefit/(expense)
for the year attributable to the owners
of Catapult Group International Limited
Earnings per share
Note
7
8
19
19
22
22
23
24
2019
$’000
95,375
313
2018
$’000
76,793
392
(25,784)
(18,570)
(43,086)
(38,005)
(1,184)
(196)
(9,192)
(2,935)
(2,602)
(6,370)
(258)
4,081
(1,512)
(274)
(7,716)
(3,143)
(2,611)
(6,806)
(493)
(1,945)
(17,043)
(12,962)
(14,141)
(16,086)
(35)
290
211
(76)
169
(266)
(12,496)
(16,259)
(85)
(1,101)
(12,581)
(17,360)
Basic and diluted earnings per share (cents per share)
26
(6.6) cents
(10.0) cents
the above statement of profit or loss should be read in conjunction with the accompanying notes.
36
CAtApult GRoup InteRnAtIonAl ltD
CONSOLIDATED STATEMENT
OF OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2019
loss for the year from continuing operations
this statement should be read in conjunction with the
notes to the financial statements.
Other comprehensive income
2019
12 months
$’000
2018
12 months
$’000
(12,581)
(17,360)
Items that will not be reclassified subsequently to profit or loss
Foreign currency translation differences for foreign operations,
net of tax
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year attributable to the owners
4,703
3,256
4,703
(7,878)
3,256
(14,104)
this statement should be read in conjunction with the notes to the financial statements.
AnnuAl RepoRt 2019
37
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2019
Assets
Current assets
Cash and cash equivalents
trade and other receivables
Contract assets
Inventories
other
Total current assets
Non-current assets
Receivables
property, plant and equipment
Goodwill
other intangible assets
Deferred tax assets
Total non-current assets
Total assets
Liabilities
Current liabilities
trade and other payables
Contract liabilities
other liabilities
employee benefits
Borrowings
Total current liabilities
Non-current liabilities
Contract liabilities
other liabilities
employee benefits
Deferred tax liabilities
Borrowings
Total non-current liabilities
Total liabilities
Net assets
Note
30-Jun-19
$’000
30-Jun-18
$’000
9
10
10
11
10
12
13
14
15
16
17
19
19
15
11,747
38,056
402
6,101
–
31,715
30,849
–
3,819
89
56,306
66,472
599
8,934
59,554
40,826
10,433
120,346
176,652
275
8,683
56,730
42,097
10,172
117,957
184,429
8,834
29,634
1,804
7,557
108
11,199
25,657
1,794
8,798
3,452
47,937
50,900
1,775
562
41
5,466
188
8,032
55,969
120,683
584
582
53
5,137
103
6,459
57,359
127,071
Equity
Share capital
Share option reserve
Foreign currency translation reserve
Accumulated losses
Total equity
20
165,002
164,324
5,365
5,228
(54,912)
120,683
4,847
525
(42,625)
127,071
the above statement of financial position should be read in conjunction with the accompanying notes.
38
CAtApult GRoup InteRnAtIonAl ltD
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2019
Cash flows from operating activities
Cash receipts from customers
Cash paid to suppliers and employees
Cash (used in)/generated from operations
Interest received
other income
Income taxes paid
Note
2019
$’000
2018
$’000
96,009
(98,494)
(2,485)
77,253
(72,978)
4,275
385
2
(98)
169
95
1,881
6,420
Net cash flows (used in)/generated from
operating activities
28
(2,196)
Cash flows from investing activities
payments for property, plant and equipment
purchase of other intangible assets
Acquisition of subsidiaries net of cash acquired
Deferred consideration on acquisitions
Net cash flows used in investing activities
Cash flows from financing activities
loans repaid
loans received
Interest paid
proceeds from issue of share capital
proceeds from share options
transaction costs related to share capital issued
Net cash flows (used in)/generated from
financing activities
net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the
financial period
effect of exchange rate fluctuations on cash held
Cash and cash equivalents at the end
of the financial period
(3,875)
(10,988)
–
(25)
(5,849)
(8,579)
(1,534)
–
(14,888)
(15,962)
(3,537)
188
(22)
–
33
–
(3,338)
(20,422)
31,715
454
11,747
–
253
(51)
25,000
447
(1,138)
24,511
14,969
16,686
60
31,715
the above statement of cash flows should be read in conjunction with the accompanying notes.
AnnuAl RepoRt 2019
39
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2019
Share
Option
Reserve
$’000
Foreign
Currency
Translation
Reserve
$’000
Accumu-
lated
Losses
$’000
Total
equity
$’000
4,033
(2,731)
(25,264)
114,762
Share
Capital
$’000
138,724
–
–
–
24,111
1,489
25,600
164,324
–
–
–
–
813
813
–
(17,360)
(17,360)
3,256
–
3,256
3,256
(17,360)
(14,104)
–
–
–
–
–
–
24,111
2,302
26,413
4,847
525
(42,625)
127,071
Balance at 1 July 2017
Comprehensive income
for the year
loss after income tax expense
for the year
other comprehensive income
for the year, net of tax
Total comprehensive income
Transactions with owners
in their capacity as owners:
Contributions by and
Distributions to owners
Issue of ordinary shares,
net of transaction costs
Share-based payments
Total transactions with owners
Balance at 30 June 2018
Balance at 1 July 2018
164,324
4,847
–
–
164,324
4,847
525
–
525
(42,625)
127,071
294
294
(42,331)
127,365
Adoption of AASB 15
Balance at 1 July 2018
– restated
Comprehensive income
for the year
loss after income tax benefit
for the year
other comprehensive income
for the year, net of tax
Total comprehensive income
for the year
Transactions with owners
in their capacity as owners:
Share-based payments
Total transactions with owners
–
–
–
–
–
–
–
(12,581)
(12,581)
4,703
–
4,703
4,703
(12,581)
(7,878)
678
678
518
518
–
–
1,196
–
–
Balance at 30 June 2019
165,002
5,365
5,228
(54,912)
120,683
the above statement of changes in equity should be read in conjunction with the
accompanying notes.
40
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2019
NOTE 1. NATURE OF OPERATIONS
Catapult Group International ltd and its controlled entities (the ‘Group’) principal activities
are the development and supply of wearable tracking devices, athlete monitoring system
and software and video analytics solutions for athletes and sports teams.
NOTE 2. GENERAL INFORMATION AND BASIS OF PREPARATION
the consolidated general purpose financial statements of the Group have been prepared
in accordance with the requirements of the Corporations Act 2001, Australian Accounting
Standards and other authoritative pronouncements of the Australian Accounting Standards
Board. Compliance with Australian Accounting Standards results in full compliance with the
International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting
Standards Board (IASB). Catapult Group International ltd is a for-profit entity for the purpose
of preparing the financial statements.
Catapult Group International ltd is the Group’s ultimate parent Company. Catapult Group
International ltd is a public Company incorporated and domiciled in Australia and listed on the
Australian Stock exchange. the address of its registered office and its principal place of business
is 75–83 High Street, prahran, Victoria, Australia.
the consolidated financial statements for the year ended 30 June 2019 were approved and
authorised for issue by the Board of Directors on 22 August 2019.
NOTE 3. CHANGES IN ACCOUNTING POLICIES
3.1 New standards adopted as at 1 July 2018
Several new and revised standards became effective for the first time to annual periods beginning
on or after 1 July 2018. only those that are significant to the Group have been included.
AASB 15 Revenue from Contracts with Customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and several
revenue-related interpretations. the new Standard has been applied as at 1 July 2018
using the modified retrospective approach. under this method, the cumulative effect
of initial application is recognised as an adjustment to the opening balance of retained
earnings at 1 July 2018 and comparatives are not restated. In accordance with the transition
guidance, AASB 15 has only been applied to contracts that are incomplete as at 1 July 2018.
the adoption of AASB 15 has mainly affected the following areas:
(1) training revenue element in contracts
(2) Consumer revenue deferral
(3) Dealer commissions on subscription deals
(4) Warranties.
(1) Training revenue element in contracts
Management have undertaken a detailed review of contract obligations and the underlying
transactions. this review indicates that compliance with the standard may result in a requirement
to adjust the current revenue recognition methodology.
A number of elite Wearable contracts contain an obligation to provide training. this is currently
amortised over the life of the contract. Compliance with the standard will require this revenue to
be recognised as the service is incurred, generally within the first 90 days of the contract, causing
a change in the first year of revenue recognition. this is not considered to have a material impact.
AnnuAl RepoRt 2019
41
(2) Consumer revenue deferral
A review of the functionality of the Consumer ‘plAYR’ product has outlined a software
component that should be considered as a separate performance obligation alongside the
hardware component of the device. Management have valued the transaction price for this
software component at 10% of the contract value, consistent with industry comparatives and
standards, and have determined the software period to be 24 months. this revenue, which has
historically been recognised upfront when the service has been incurred, will now be amortised
over the software period. the impact of this change in FY18 and FY19 is not considered material.
(3) Dealer commissions on subscription deals
A review of costs incurred in acquiring an elite Wearable contract indicates that the dealer
commissions on total contract value, which are incremental to obtaining the contract with
the customer, and Catapult expects to recover from cash flows generated by the contract, will
require a change in accounting treatment under AASB 15. these costs, which have historically
been expensed immediately when incurred, will now be amortised over the life of the contract.
this change has resulted in a net expense reduction of $400,000 (rounded to the nearest $’000)
in FY19.
When adopting AASB 15, the Group elected not to restate prior periods. Rather, the Group has
adopted the modified retrospective restatement approach and differences arising from the
adoption of AASB 15 in relation to classification, measurement, and impairment are recognised
in opening retained earnings as at 1 July 2018.
the total adjustment to the opening balance of retained earnings arising from the initial
application of AASB 15 to dealer commissions costs is a deferral of $420,000 (rounded to the
nearest $’000), with an increase in the tax expense relating to this cost reduction of $126,000
(rounded to the nearest $’000). the net impact of these adjustments is a $294,000 (rounded
to the nearest $’000) improvement to retained earnings (see table below).
Current year impact
During the normal course of business, the Group incurs a number of incremental costs, such as
commissions paid to dealers. the Group recognises such incremental costs initially as contract
assets. this asset is then amortised on a systematic basis consistent with the transfer to the
customer the good or service to which the asset relates. Where the amortisation period of these
costs, if capitalised, would be less than one year, the Group makes use of the practical expedient
in AASB 15.94 and expenses them as they incur.
the tables below highlight the impact of AASB 15 on the Group’s consolidated statement of profit
or loss and other comprehensive income and the statement of financial position for the year
ending 30 June 2019. the adoption of AASB 15 did not have a material impact on the Group’s
statement of cash flows.
Statement of profit or loss and other
comprehensive income (Extract)
other expenses
Loss for the period
Total comprehensive income for the period
Amounts
under
AASBs
118 & 111
$’000
(6,770)
(12,981)
(8,278)
Adjust-
ments
$’000
400
400
400
Amounts
under
AASB 15
$’000
(6,370)
(12,581)
(7,878)
42
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 3. CHANGES IN ACCOUNTING POLICIES (continued)
3.1 New standards adopted as at 1 July 2018 (continued)
AASB 15 Revenue from Contracts with Customers (continued)
Current year impact (continued)
Statement of financial position
Current assets
Contract assets
Total assets
Equity
Retained earnings
(4) Warranties
Amounts
under
AASBs
118 &111
$’000
Adjust-
ments
$’000
Amounts
under
AASB 15
$’000
–
176,252
400
400
400
176,652
(55,312)
400
(54,912)
AASB 15 requires that service contracts are ‘un-bundled’ and each performance obligation
identified. the Group has considered the impact of warranty costs in its contracts, based
on historical trends and analysis of existing contracts with customers, and has determined
that the adjustment to the financial statements is not material. the Group will continue
to review and monitor this with future contracts.
AASB 9 Financial Instruments
AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition
and Measurement requirements. It makes major changes to the previous guidance on the
classification and measurement of financial assets and introduces an ‘expected credit
loss’ model for impairment of financial assets.
When adopting AASB 9, the Group elected not to restate prior periods. Rather, differences
arising from the adoption of AASB 9 in relation to classification, measurement, and impairment
are recognized in opening retained earnings as at 1 July 2018.
The adoption of AASB 9 has mostly impacted the following areas relating to the Group:
the impairment of financial assets applying the expected credit loss model. this applies to the
Group’s trade receivables and investments in debt-type assets previously classified as HtM or
AFS (unless classified as fair value through profit or loss). For contract assets arising from AASB
15 and trade receivables, the Group applies a simplified model of recognizing lifetime expected
credit losses as these items do not have a significant financing component.
the recognition of gains and losses arising from the Group’s own credit risk. the Group continues
to elect the fair value option for certain financial liabilities which means that fair value movements
from changes in the Group’s own credit risk are now presented in other comprehensive income
rather than profit or loss.
the Group has reviewed the requirements of AASB 9 and noted that the adoption of AASB 9
relating to the change in accounting policy at the interim stage did not give rise to a need
to restate prior financial results.
AnnuAl RepoRt 2019
43
3.2 Accounting standards issued but not yet effective and have not been adopted
early by the Group
Certain new accounting standards and interpretations have been published that are not mandatory
for 30 June 2019 reporting periods and have not yet been adopted by the Group. the Group’s
assessment of the impact of these new standards and interpretations is set out below:
AASB 16 Leases
AASB 16:
• replaces AASB 117 leases and some lease-related interpretations
• requires all leases to be accounted for ‘on-balance sheet’ by lessees, other than short-term
and low value asset leases
• provides new guidance on the application of the definition of lease and on sale and lease
back accounting
•
largely retains the existing lessor accounting requirements in AASB 117
• requires new and different disclosures about leases.
Management has reviewed the applicable provisions relating to the Group’s position as a lessor
and lessee under the new standard when it is first adopted for the year ending 30 June 2020.
In relation to the Group being a lessor of operating leases of wearables under subscription
arrangements the standard is not expected to have a material impact on the transactions
and balances recognized in the financial statements.
In relation to the Group being a lessee it is expected that the first-time adoption of AASB 16 for
the year ending 30 June 2020 will have the following impact on the transactions and balances
recognized in the financial statements, in particular:
•
lease assets and financial liabilities on the balance sheet will increase by $6,595,089 and
$5,263,233 respectively (based on the facts at the date of the assessment)
• there will be a reduction in the reported equity as the carrying amount of lease assets
will reduce more quickly than the carrying amount of lease liabilities
• eBIt in the statement of profit or loss and other comprehensive income will be higher as
the implicit interest in lease payments for former off-balance sheet leases will be presented
as part of finance costs rather than being included in operating expenses
• operating cash outflows will be lower and financing cash flows will be higher in the statement
of cash flows as principal repayments on all lease liabilities will now be included in financing
activities rather than operating activities. Interest can also be included within financing activities.
3.3 Revision of Employee Benefits Expense
As outlined in Catapult’s 2018 Remuneration Report the nominations and Remuneration
Committee has reviewed and revised Catapult’s remuneration policies effective FY19.
As part of these changes the Ceo and a number of executives will have total At Risk (tAR)
remuneration set with a combination of Fixed Annual Remuneration and at risk Short and
long term Incentives. Short term Incentives (StI) may be awarded in cash and part in equity
(with deferral) whilst long term Incentives (ltI) will be award as equity. Given these amounts
form part of agreed annual employee remuneration arrangements and for StI may be paid
in part cash and equity the amount recognized in our financial statements is recognized within
employee Benefits expense. the amount recognized within employee Benefits expense for the
year ended 30 June 2019 representing estimated equity related grants is $340,000 (rounded
to the nearest $’000) for StI and $200,000 (rounded to the nearest $’000) for ltI.
44
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES
4.1 Overall considerations
the consolidated financial statements have been prepared using the significant accounting policies
and measurement bases summarised below.
4.2 Basis of consolidation
the Group financial statements consolidate those of the parent Company and all of its subsidiaries
as of 30 June 2019. the parent controls a subsidiary if it is exposed, or has rights, to variable returns
from its involvement with the subsidiary and could affect those returns through its power over
the subsidiary. All subsidiaries have a reporting date of 30 June with the exception of Kodaplay
limited (based in Ireland), which has a reporting date of 31 March.
All transactions and balances between Group companies are eliminated on consolidation, including
unrealised gains and losses on transactions between Group companies. Where unrealised losses
on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for
impairment from a group perspective. Amounts reported in the financial statements of subsidiaries
have been adjusted where necessary to ensure consistency with the accounting policies adopted
by the Group.
profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the
year is recognised from the effective date of acquisition, or up to the effective date of disposal,
as applicable.
non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit
or loss and net assets that is not held by the Group. the Group attributes total comprehensive
income or loss of subsidiaries between the owners of the parent and the non-controlling interests
based on their respective ownership interests.
4.3 Business combination
the Group applies the acquisition method in accounting for business combinations.
the consideration transferred by the Group to obtain control of a subsidiary is calculated
as the sum of the acquisition-date fair values of assets transferred, liabilities incurred, and
the equity interests issued by the Group, which includes the fair value of any asset or liability
arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.
the Group recognises identifiable assets acquired and liabilities assumed in a business combination
regardless of whether they have been previously recognised in the acquiree’s financial statements
prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their
acquisition-date fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated
as the excess of the sum of (a) fair value of consideration transferred, (b) the recognised amount
of any non-controlling interest in the acquiree, and (c) acquisition-date fair value of any existing
equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets.
If the fair values of identifiable net assets exceed the sum calculated above, the excess amount
(i.e. gain on a bargain purchase) is recognised in profit or loss immediately.
4.4 Foreign currency translation
Functional and presentation currency
the consolidated financial statements are presented in Australian dollars (‘AuD’), which is also
the functional currency of the parent Company.
AnnuAl RepoRt 2019
45
Foreign currency transactions and balances
Foreign currency transactions are translated into the functional currency of the respective Group
entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate).
Foreign exchange gains and losses resulting from the settlement of such transactions and from the
re-measurement of monetary items at year end exchange rates are recognised in profit or loss.
non-monetary items are not re-translated at year-end and are measured at historical cost
(translated using the exchange rates at the date of the transaction), except for non-monetary
items measured at fair value which are translated using the exchange rates at the date when
fair value was determined.
Foreign operations
In the Group’s financial statements, all assets, liabilities and transactions of Group entities
with a functional currency other than the AuD are translated into AuD upon consolidation.
the functional currency of the entities in the Group has remained unchanged during the
reporting period.
on consolidation, assets and liabilities have been translated into AuD at the closing rate at the
reporting date. Income and expenses have been translated into AuD at the average rate over the
reporting period. exchange differences are charged or credited to other comprehensive income
and recognised in the currency translation reserve in equity. on disposal of a foreign operation
the cumulative translation differences recognised in equity are reclassified to profit or loss and
recognised as part of the gain or loss on disposal.
4.5 Revenue
Revenue arises from the sale of goods and the rendering of services. It is measured by
reference to the fair value of consideration received or receivable, excluding sales taxes,
rebates, and trade discounts.
the Group enters into sales transactions involving an outright sale to the client, on a subscription
basis or for the rendering of services. the Group applies the revenue recognition criteria set out
below to each separately identifiable component of the sales transaction in order to reflect the
substance of the transaction.
Outright sale of goods
outright sale of goods is recognised when the Group has transferred to the buyer the significant
risks and rewards of ownership, and control of the goods. the timing of the transfer of risks and
rewards/control varies depending on the individual terms of the sales agreement. For sales of
wearable units the transfer usually occurs on dispatch of the goods from Catapult’s premises.
For sales of hardware in the video analytics business the transfer usually occurs on dispatch
of the goods from Catapult’s premises.
Subscription and Services
(i) Wearables Subscription sale
the Group generates revenues from subscription sales and once the customer has taken
undisputed delivery of the goods, the revenue from the subscription agreement is recognised
on a monthly basis in equal amounts for each month of the subscription agreement. In determining
that wearable subscription constitute an operating lease under AASB 117 the Group considers
the nature of the term of the agreement and the useful life of the goods being provided under
the subscription agreement.
46
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.5 Revenue (continued)
Subscription and Services (continued)
(ii) Rendering of Services
the Group is involved in providing software, support and maintenances services. the Group
recognises revenue from such activities on a monthly basis in equal amounts for each month
of the subscription agreement.
(iii) Multiple Element contracts
the Group’s Sub-elite Wearables offering includes an ‘outright sale’ element for the GpS tracking
unit sold to the customer and a ‘rendering of services’ element for the hosted software platform
that customers have access to over the duration of the sales agreement. the consideration received
for the bundled offering is allocated to each element on the basis of relative fair value. the fair
value used for allocating revenue is based on customer contracts and internal pricing models.
the revenues associated with the ‘outright Sale’ and ‘Rendering of services’ elements of the
sales agreements are recognised on the basis set-out above.
(iv) Content Licensing
the Group is involved in the provision of licensed video content to customers. Where video
content is purchased on a one-off basis, associated revenue is recognised upon delivery of the
licensed content. Where video content is purchased via a term contract with content available
for consumption during the contract term, associated revenue is recognised on a monthly basis
in equal amounts for each month of the content licensing agreement.
(v) Interest and dividend income
Interest income and expenses are reported on an accrual basis using the effective interest method.
Dividends, other than those from investments in associates, are recognised at the time the right
to receive payment is established.
4.6 Operating expenses
operating expenses are recognised in profit or loss upon utilisation of the service or at the date
of their origin.
4.7 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying
asset are capitalised during the period of time that is necessary to complete and prepare the
asset for its intended use or sale. other borrowing costs are expensed in the period in which
they are incurred and reported in finance costs (see note 23).
4.8 Goodwill
Goodwill represents the future economic benefits arising from a business combination that
are not individually identified and separately recognised. See note 4.3 for information on how
goodwill is initially determined. Goodwill is carried at cost less accumulated impairment losses.
Refer to note 13.1 for a description of impairment testing procedures.
4.9 Other intangible assets
Acquired intangible assets
Acquired computer software licences are capitalised on the basis of the costs incurred to
acquire and install the specific software. Brand names and customer lists acquired in a business
combination that qualify for separate recognition are recognised as intangible assets at their
fair values (see note 4.3).
AnnuAl RepoRt 2019
47
Internally developed software
expenditure on the research phase of projects to develop new customised software
for athlete tracking and analytic analysis is recognised as an expense as incurred.
Costs that are directly attributable to a project’s development phase are recognised
as intangible assets, provided they meet the following recognition requirements:
• the development costs can be measured reliably;
• the project is technically and commercially feasible;
• the Group intends to and has sufficient resources to complete the project;
• the Group has the ability to use or sell the software; and
• the software will generate probable future economic benefits.
Development costs not meeting these criteria for capitalisation are expensed as incurred.
Directly attributable costs include employee costs and costs incurred on software development.
Internally developed hardware IP
expenditure on the research phase of projects to develop new hardware for athlete tracking
and analytic analysis is recognised as an expense as incurred.
Costs that are directly attributable to a project’s development phase are recognised as
intangible assets, provided they meet the following recognition requirements:
• the development costs can be measured reliably;
• the project is technically and commercially feasible;
• the Group intends to and has sufficient resources to complete the project;
• the Group has the ability to use or sell the hardware; and
• the hardware will generate probable future economic benefits.
Development costs not meeting these criteria for capitalisation are expensed as incurred.
Directly attributable costs include employee costs and costs incurred on hardware development.
Subsequent measurement
All intangible assets, including capitalised internally developed software and hardware, are
accounted for using the cost model whereby capitalised costs are amortised on a straight-line
basis over their estimated useful lives, as these assets are considered finite. Residual values and
useful lives are reviewed at each reporting date. In addition, they are subject to impairment
testing as described in note 4.12.
the following useful lives are applied:
• software (licenses and internally developed): 4–5 years, except with regard to identified
projects with 2 years
• brand names: annually assessed by management for impairment
• customer lists: 7–10 years
• hardware: 3 years
• distributor relationships: 10 years
• distributor contracts: 10 years
• goodwill: annually assessed by management for impairment.
Amortisation has been included within depreciation, amortisation and impairment
of non-financial assets.
Subsequent expenditures on the maintenance of computer software and brand names are
expensed as incurred.
48
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.9 Other intangible assets (continued)
Subsequent measurement (continued)
When an intangible asset is disposed of, the gain or loss on disposal is determined as the difference
between the proceeds and the carrying amount of the asset which is recognised in profit or loss
within other income or other expenses.
4.10 Property, plant and equipment
plant, It equipment and other equipment (comprising fittings and furniture) are initially
recognised at acquisition cost or manufacturing cost, including any costs directly attributable
to bringing the assets to the location and condition necessary for it to be capable of operating
in the manner intended by the Group’s management. plant, It equipment and other equipment
are subsequently measured using the cost model, cost less subsequent precaution and
impairment losses.
Depreciation is recognised on a diminishing-value basis to write down the cost less estimated
residual value of plant buildings, It equipment and other equipment. the following useful lives
are applied:
• plant 3-10 years
• office equipment 3-20 years
• fixture and fittings 20 years
• other equipment 2-7 years
• property improvements 7 years.
Depreciation is recognised on a straight-line basis to write down the cost less estimated residual
value of subscription, service and demonstration wearable units over their useful life of 4 years.
In the case of leasehold property, expected useful lives are determined by reference to comparable
owned assets or over the term of the lease, if shorter.
Material residual value estimates and estimates of useful life are updated as required,
but at least annually.
Gains or losses arising on the disposal of property, plant and equipment are determined
as the difference between the disposal proceeds and the carrying amount of the assets
and are recognised in profit or loss within other income or other expenses.
4.11 Leased assets
Operating leases
Where the Group is a lessee, payments on operating lease agreements are recognised as an
expense on a straight-line basis over the lease term. Associated costs, such as maintenance
and insurance, are expensed as incurred.
4.12 Impairment testing of goodwill, other intangible assets and property,
plant and equipment
For impairment assessment purposes, assets are grouped at the lowest levels for which
there are largely independent cash inflows (cash-generating units). As a result, some assets
are tested individually for impairment and some are tested at cash-generating unit level.
Goodwill is allocated to those cash-generating units that are expected to benefit from
synergies of the related business combination and represent the lowest level within the
Group at which management monitors goodwill.
AnnuAl RepoRt 2019
49
Cash-generating units to which goodwill has been allocated (determined by the Group’s
management as equivalent to its operating segments) are tested for impairment at least
annually. All other individual assets or cash-generating units are tested for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s
carrying amount exceeds its recoverable amount, which is the higher of fair value less costs to
sell and value-in-use. to determine the value-in-use, management estimates expected future
cash flows from each cash-generating unit and determines a suitable interest rate in order to
calculate the present value of those cash flows. the data used for impairment testing procedures
are directly linked to the Group’s latest approved budget, adjusted as necessary to exclude the
effects of future reorganisations and asset enhancements. Discount factors are determined
individually for each cash-generating unit and reflect management’s assessment of respective
risk profiles, such as market and asset-specific risks factors.
Impairment losses for cash-generating units reduce first the carrying amount of any goodwill
allocated to that cash-generating unit. Any remaining impairment loss is charged pro rata
to the other assets in the cash-generating unit. With the exception of goodwill, all assets are
subsequently reassessed for indications that an impairment loss previously recognised may
no longer exist. An impairment charge is reversed if the cash-generating unit’s recoverable
amount exceeds its carrying amount.
4.13 Financial instruments
Recognition, initial measurement and de-recognition
Financial assets and financial liabilities are recognised when the Group becomes a party to
the contractual provisions of the financial instrument, and are measured initially at fair value
adjusted by transactions costs, except for those carried at fair value through profit or loss, which
are measured initially at fair value. Subsequent measurement of financial assets and financial
liabilities are described below.
Financial assets are de-recognised when the contractual rights to the cash flows from the
financial asset expire, or when the financial asset and all substantial risks and rewards are
transferred. A financial liability is de-recognised when it is extinguished, discharged, cancelled
or expires.
Classification and Subsequent Measurement of Financial Assets
For the purpose of subsequent measurement, financial assets other than those designated and
effective as hedging instruments are classified into the following categories upon initial recognition:
• Amortised cost;
• Financial assets at Fair Value through profit or loss (‘FVtpl’); and
• Financial assets reported through other Comprehensive Income (‘FVoCI’).
All financial assets except for those at FVtpl are subject to review for impairment at least
at each reporting date to identify whether there is any objective evidence that a financial asset
or a group of financial assets is impaired. Different criteria to determine impairment are applied
for each category of financial assets, which are described below.
All income and expenses relating to financial assets that are recognised in profit or loss are
presented within finance costs, finance income or other financial items, except for impairment
of trade receivables which is presented within other expenses.
Amortised cost
loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. After initial recognition, these are measured at amortised
cost using the effective interest method, less provision for impairment. Discounting is omitted
where the effect of discounting is immaterial. the Group’s cash and cash equivalents, trade and
most other receivables fall into this category of financial instruments.
50
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.13 Financial instruments (continued)
Classification and Subsequent Measurement of Financial Assets (continued)
Amortised cost (continued)
Individually significant receivables are considered for impairment when they are past due or when
other objective evidence is received that a specific counterparty will default. Receivables that
are not considered to be individually impaired are reviewed for impairment in groups, which are
determined by reference to the industry and region of a counterparty and other shared credit risk
characteristics. the impairment loss estimate is then based on recent historical counterparty
default rates for each identified group.
Classification and subsequent measurement of Financial Liabilities
the Group’s financial liabilities include borrowings, trade and other payables and derivative
financial instruments.
Financial liabilities are measured subsequently at amortised cost using the effective interest
method, except for financial liabilities held for trading or designated at FVtpl, that are carried
subsequently at fair value with gains or losses recognised in profit or loss. All derivative financial
instruments that are not designated and effective as hedging instruments are accounted for
at FVtpl.
Derivative financial instruments and hedge accounting
Derivative financial instruments are accounted for at FVtpl except for derivatives
designated as hedging instruments in cash flow hedge relationships, which requires
a specific accounting treatment.
4.14 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost includes all expenses
directly attributable to the manufacturing process as well as suitable portions of related
production overheads, based on normal operating capacity. Costs of ordinarily interchangeable
items are assigned using the first in, first out cost formula. net realisable value is the estimated
selling price in the ordinary course of business less any applicable selling expenses.
4.15 Income taxes
tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not
recognised in other comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the
Australian taxation office (‘Ato’) and other fiscal authorities relating to the current or prior
reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit,
which differs from profit or loss in the financial statements. Calculation of current tax is based
on tax rates and tax laws that have been enacted or substantively enacted by the end of the
reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between
the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not
provided on the initial recognition of goodwill or on the initial recognition of an asset or liability
unless the related transaction is a business combination or affects tax or accounting profit.
Deferred tax on temporary differences associated with investments in subsidiaries and joint
ventures is not provided if reversal of these temporary differences can be controlled by the
Group and it is probable that reversal will not occur in the foreseeable future.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that
are expected to apply to their respective period of realisation, provided they are enacted
or substantively enacted by the end of the reporting period.
AnnuAl RepoRt 2019
51
Deferred tax assets are recognised to the extent that it is probable that they will be able to
be utilised against future taxable income, based on the Group’s forecast of future operating
results which is adjusted for significant non-taxable income and expenses and specific limits
to the use of any unused tax loss or credit. Deferred tax liabilities are always provided for in full.
Deferred tax assets and liabilities are offset only when the Group has a right and intention
to set off current tax assets and liabilities from the same taxation authority.
Changes in deferred tax assets or liabilities are recognised as a component of tax income
or expense in profit or loss, except where they relate to items that are recognised in other
comprehensive income (such as the revaluation of land) or directly in equity, in which case the
related deferred tax is also recognised in other comprehensive income or equity, respectively.
Catapult Group International ltd and its wholly owned Australian controlled entities have
implemented the tax consolidation legislation. As a consequence, these entities are taxed
as a single entity and the deferred tax assets and liabilities of these entities are set off in the
consolidated financial statements.
4.16 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other
short-term, highly liquid investments that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of changes in value.
4.17 Equity, reserves and dividend payments
Share capital represents the fair value of shares that have been issued. Any transaction costs
associated with the issuing of shares are deducted from share capital, net of any related income
tax benefits.
other components of equity include the following:
• foreign currency translation reserve – comprises foreign currency translation differences
arising on the translation of financial statements of the Group’s foreign entities into AuD
(see note 4.4)
• share option reserve – comprises the grant date fair value of options issued but not exercised.
Retained earnings include all current and prior period retained profits.
Dividend distributions payable to equity shareholders are included in other liabilities when
the dividends have been approved in a general meeting prior to the reporting date.
All transactions with owners of the parent are recorded separately within equity.
4.18 Post-employment benefits and short-term employee benefits
Post-employment Benefit Plans
the Group provides post-employment benefits through defined contribution plans.
Short-term Employee Benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected
to be settled wholly within twelve (12) months after the end of the period in which the employees
render the related service. examples of such benefits include wages and salaries, non-monetary
benefits and accumulating sick leave. Short-term employee benefits are measured at the
undiscounted amounts expected to be paid when the liabilities are settled.
52
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.19 Share-based employee remuneration
the Group operates equity-settled share-based remuneration plans for its employees.
none of the Group’s plans feature any options for a cash settlement.
All goods and services received in exchange for the grant of any share-based payment are measured
at their fair values. Where employees are rewarded using share-based payments, the fair values
of employees’ services are determined indirectly by reference to the fair value of the equity
instruments granted. this fair value is appraised at the grant date and excludes the impact
of non-market vesting conditions (for example performance conditions).
All share-based remuneration is ultimately recognized as an expense in profit or loss with
a corresponding credit to share option reserve. If vesting periods or other vesting conditions
apply, the expense is allocated over the vesting period, based on the best available estimate
of the number of share options expected to vest.
non-market vesting conditions are included in assumptions about the number of options that
are expected to become exercisable. estimates are subsequently revised if there is any indication
that the number of share options expected to vest differs from previous estimates. Any cumulative
adjustment prior to vesting is recognized in the current period. no adjustment is made to any
expense recognized in prior periods if share options ultimately exercised are different to that
estimated on vesting.
upon exercise of share options, the proceeds received net of any directly attributable transaction
costs are allocated to share capital.
4.20 Provisions, contingent liabilities and contingent assets
provisions for product warranties, legal disputes, onerous contracts or other claims are recognised
when the Group has a present legal or constructive obligation as a result of a past event, it is
probable that an outflow of economic resources will be required from the Group and amounts
can be estimated reliably. timing or amount of the outflow may still be uncertain.
Restructuring provisions are recognised only if a detailed formal plan for the restructuring has
been developed and implemented, or management has at least announced the plan’s main
features to those affected by it. provisions are not recognised for future operating losses.
provisions are measured at the estimated expenditure required to settle the present obligation,
based on the most reliable evidence available at the reporting date, including the risks and
uncertainties associated with the present obligation. Where there are a number of similar
obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. provisions are discounted to their present
values, where the time value of money is material.
Any reimbursement that the Group can be virtually certain to collect from a third party with
respect to the obligation is recognised as a separate asset. However, this asset may not exceed
the amount of the related provision.
no liability is recognised if an outflow of economic resources as a result of present obligation
is not probable. Such situations are disclosed as contingent liabilities, unless the outflow
of resources is remote in which case no liability is recognised.
4.21 Goods and Services Tax, Sales taxes and Value Added 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 appropriate tax authority in the relevant
tax jurisdiction. 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.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GSt
components of investing and financing activities, which are disclosed as operating cash flows.
AnnuAl RepoRt 2019
53
4.22 Significant management judgement in applying accounting policies
When preparing the financial statements, management undertakes a number of judgements,
estimates and assumptions about the recognition and measurement of assets, liabilities, income
and expenses.
Significant management judgement
the following are significant management judgements in applying the accounting policies
of the Group that have the most significant effect on the financial statements.
Recognition of subscription revenue and rental units
Determining when to recognise revenues from subscription agreements requires an understanding
of the customer’s use and the useful life of the products, historical experience and knowledge
of the market. the company provides GpS tracking units for team sports under both an up-front
sales model and a subscription model. under the subscription model, the customer has the right
to use the GpS tracking units for the period of the subscription, however they must return the
unit to the Group at the end of the subscription period. Management have considered various
factors under AASB 117 leases as to whether a component of the subscription agreements
represents a finance or operating lease. these include:
• the GpS tracking units for the majority of subscription contracts have a subscription period
no more than 75% of the useful life of the units.
• Risk in the fair wear and tear of GpS tracking units remains with the Group.
As a result, this component of the subscription agreements has been considered an operating
lease with the Group as lessor. As such, those GpS tracking units provided under subscription
agreements have been capitalised as ‘Rental units’ under property, plant and equipment and
are amortised over their estimated useful life.
All revenue under subscription sales is therefore recognised on a straight-line basis over the term
of the subscription period, reflecting management’s best estimate of the delivery of services and
provision of the rental units over the term of the agreements.
Recognition of deferred tax assets
the extent to which deferred tax assets can be recognised is based on an assessment of the
probability of the Group’s future taxable income against which the deferred tax assets can
be utilised, as described in note 16. In addition, significant judgement is required in assessing
the impact of any legal or economic limits or uncertainties in various tax jurisdictions.
Estimation uncertainty
Information about estimates and assumptions that have the most significant effect on
recognition and measurement of assets, liabilities, income and expenses is provided below.
Actual results may be substantially different.
Impairment
In assessing impairment, management estimates the recoverable amount of each asset or
cash-generating unit based on expected future cash flows and uses an interest rate to discount
them. estimation uncertainty relates to assumptions about future operating results and the
determination of a suitable discount rate (see note 4.12).
54
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.22 Significant management judgement in applying accounting policies (continued)
Useful lives of depreciable assets
Management reviews its estimate of the useful lives of depreciable assets at each reporting
date, based on the expected utility of the assets. uncertainties in these estimates relate
to technical obsolescence that may change the utility of certain software and It equipment.
Inventories
Management estimates the net realisable values of inventories, taking into account the most
reliable evidence available at each reporting date. the future realisation of these inventories
may be affected by future technology or other market-driven changes that may reduce future
selling prices.
Business combinations
Management uses valuation techniques in determining the fair values of the various elements
of a business combination (see note 4.3). particularly, the fair value of contingent consideration
is dependent on the outcome of many variables that affect future profitability.
4.23 Going Concern
the financial statements have been prepared on the basis that the consolidated entity is a going
concern, which assumes continuity of normal business activities and the realisation of assets and
the settlement of liabilities in the ordinary course of business.
the consolidated group incurred a loss after tax of $12,580,990 and had net cash outflows from
operating activities of $2,196,652.
notwithstanding this, the directors are of the view that the going concern principle is appropriate
due to the following factors:
• the consolidated entity has continued to secure sale arrangements with many leading
sporting organisations across the world for which revenue and cash inflows will be
recognised in future periods;
• the business implemented a plan, in line with the Board approved strategy, to drive greater
operating leverage and therefore significantly improved cash performance in FY20 through
a number of key actions including re-sizing the consumer division and addressing operating
cost efficiencies;
•
In line with the above point, the FY20 management incentive program is heavily weighted
to the goal of accelerating the achievement of positive cashflow generation;
• the business has substantially delivered on its new product investment program launched
in FY19 which will deliver growth in the future and as such further increases in cash investment
in FY20 will not be required; and
• the acquisition of XoS brought a mature, cash generating entity into the Group, enabling
the consolidated operation to finance its day to day operations more effectively.
AnnuAl RepoRt 2019
55
NOTE 5. INTERESTS IN SUBSIDIARIES
Set out below details of the subsidiaries held directly by the Group:
Parent Entity
Catapult Group International limited (i),(iii)
Name of the Subsidiary
Catapult Sports pty ltd (i),(ii),(iii)
Catapult Gameday pty ltd
Principal Place of Business/
Principal Activity
Australia – design and sale of
wearable products and software
Australia – trading entity for
relationships with Media sector
Group Ownership Interest
2019
%
2018
%
100.00%
100.00%
100.00%
100.00%
Catapult International pty ltd (ii) Australia – holding company
100.00%
100.00%
GpSports Systems pty ltd (iii)
Australia – design and sale of
wearable products and software
100.00%
100.00%
Catapult Innovations pty ltd
Australia – non trading entity
100.00%
100.00%
Catapult Group uS Inc. (iii)
Catapult Sports llC (iii)
XoS technologies Inc
Collegiate Images llC
Catapult Sports limited (iii)
united States of America –
holding company
united States of America –
north American sales operations
united States of America –
Video Analytics
united States of America –
Content licensing
united Kingdom –
european sales operations
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Catapult Sports Godo Kaisha
Japan – Asia sales operations
100.00%
100.00%
Catapult Sports europe limited Ireland – holding company
100.00%
100.00%
Kodaplay ltd (iii)
Catapult Sports SAS (iv)
Catapult Sports technology
Beijing Co ltd (iv)
Ireland – manufacturing and
selling for Catapult sub-elite
and consumer products
Argentina – South American
sales operations
100.00%
100.00%
100.00%
n/a
n/a
China – Asia sales operations
100.00%
(i) Catapult Group International Limited (the Company) and Catapult Sports Pty Ltd (the “Closed Group”) entered
into a Deed of Cross Guarantee on 26 June 2017. The effect of the deed is that the Company has guaranteed to each
creditor to pay any deficiency in the event of the winding up of any of the controlled entities in the “Closed Group”.
All entities in the “Closed Group” have also given a similar guarantee in the event that the Company is wound up
– refer to Note 33.
(ii) Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785 Order 98/1418 (as amended)
relief has been granted to Catapult Sports Pty Ltd from the Corporations Act 2001 requirements for preparation,
audit and lodgement of financial reports and directors’ reports.
(iii) These entities have provided guarantees to Western Alliance Bank in respect of credit facilities of USD 6,000,000
granted to XOS Technologies Inc and Collegiate Images LLC.
(iv) These entities were incorporated in FY19.
56
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 6. SEGMENT REPORTING
For the year ended 30 June 2019
Management identifies its operating segments based on the Group’s business units which
represent the main products and services provided by the Group. the Group’s three main
operating segments are:
• Wearables: design, development and supply of wearable technology and analytic software
to athletes and sports teams.
• Video Analytics: develops and provides innovative digital and video analytic software solutions
to elite sports teams.
• New Products: development of the prosumer product and entry into the consumer market.
these operating segments are monitored and strategic decisions are made on the basis
of adjusted segment operating results.
the revenues and profit generated by each of the Group’s operating segments and segment
assets are summarised as follows:
12 months to 30 June 2019
Revenue – external customers
Segment eBItDA
Segment operating profit/(loss)
Segment Assets
Segment liabilities
12 months to 30 June 2018
Revenue – external customers
Segment eBItDA
Segment operating profit/(loss)
Segment Assets
Segment liabilities
Wearables
$’000
Video
Analytics
$’000
New
Products
$’000
45,257
12,436
6,070
56,235
27,332
44,845
12,545
3,443
110,408
26,989
5,273
(6,118)
(7,513)
10,009
1,648
Wearables
$’000
Video
Analytics
$’000
New
Products
$’000
34,024
7,252
1,562
68,666
26,348
39,350
10,642
2,904
106,399
29,866
3,419
(5,958)
(6,664)
9,364
1,145
Total
$’000
95,375
18,863
2,000
176,652
55,969
Total
$’000
76,793
11,936
(2,198)
184,429
57,359
AnnuAl RepoRt 2019
57
the Group’s segment operating loss reconciles to the Group’s loss before tax as presented
in its financial statements as follows:
Total reporting segment operating EBITDA
Depreciation and amortisation for the segments
Finance segment costs
Finance segment income
other financial segment income/(costs)
Total reporting segment operating profit
Corporate costs
employee benefits expense
employee share option compensation expense
Capital raising and listing expenses
travel, marketing and promotion
occupancy
professional fees
other expenses
Total Corporate costs
Finance segment income
Finance segment expense
other financial segment cost
Group loss before tax
Revenue by Geography
2019
12 months
$’000
2018
12 months
$’000
18,863
(17,043)
(20)
26
174
11,936
(14,141)
(55)
4
58
2,000
(2,198)
(7,396)
(1,116)
(196)
(534)
(887)
(2,571)
(2,091)
(6,172)
(1,512)
(242)
(332)
(876)
(2,122)
(2,627)
(14,791)
(13,883)
264
(14)
45
165
(21)
(322)
(12,496)
(16,259)
the Group’s revenues from external customers (excludes government grants) and are divided
into the following geographical areas:
Revenue – external customers
Australia
ApAC
eMeA
Americas*
Total
Wearables
2019
$’000
Video
Analytics
2019
$’000
New
Products
2019
$’000
4,823
4,846
16,576
19,012
45,257
2
5
25
44,813
44,845
615
122
2,956
1,580
5,273
Total
2019
$’000
5,440
4,973
19,557
65,405
95,375
58
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 6. SEGMENT REPORTING (continued)
Revenue by Geography (continued)
Revenue – external customers
Australia
ApAC
eMeA
Americas*
Total
Wearables
2018
$’000
Video
Analytics
2018
$’000
New
Products
2018
$’000
4,533
3,138
11,339
15,014
34,024
–
–
–
39,350
39,350
–
417
2,203
799
3,419
Total
2018
$’000
4,533
3,555
13,542
55,163
76,793
All revenue is generated from external customers and there is no inter segment revenues.
Revenues from external customers in the Group’s domicile, Australia, as well as its major markets,
europe and the Middle east (eMeA), Asia-pacific (ApAC) and the Americas, have been identified
on the basis of the customer’s geographical location.
* The prior year comparatives relating to USA has been modified to Americas to more accurately describe the geographical
region the Group operates in.
NOTE 7. REVENUE
Revenue has been generated from the following types of sales transactions:
Capital revenue
Subscription and service
other revenues
Total Revenue
NOTE 8. OTHER INCOME
other income has been generated from the following sources:
Government grants
other income
Other Income
2019
$’000
30,197
64,005
1,173
95,375
2018
$’000
24,029
51,477
1,287
76,793
2019
$’000
2018
$’000
311
2
313
174
218
392
AnnuAl RepoRt 2019
59
NOTE 9. CURRENT ASSETS – CASH AND CASH EQUIVALENTS
Cash and cash equivalents include the following components:
Cash at bank and in hand
AuD
euR
GBp
uSD
JpY
Total cash and cash equivalent
2019
$’000
5,449
821
1,033
4,172
272
11,747
2018
$’000
20,291
1,694
232
9,433
65
31,715
the amount of cash and cash equivalents inaccessible to the Group as at 30 June 2019 amounts
to $647,875 (2018: $353,721) relating to letter of Credit for rental leases held by the company.
NOTE 10. CURRENT ASSETS – TRADE AND OTHER RECEIVABLES
& CONTRACT ASSETS
trade and other receivables & contract assets consist of the following:
trade receivables, gross
Accrued revenue
Allowance for credit losses
Trade receivables
Social security and other taxes
other receivables
prepayments
Contract assets
Non-financial assets
Total trade and other receivables
other long-term financial assets
Total trade and other receivables
2019
$’000
29,924
5,109
(747)
2018
$’000
26,803
2,120
(613)
34,286
28,310
371
1,266
2,133
402
4,172
38,458
599
39,057
332
567
1,640
–
2,539
30,849
275
31,124
the net carrying value of trade receivables is considered a reasonable approximation of fair value.
All of the Group’s trade and other receivables have been reviewed for indicators of impairment.
During the year ended 30 June 2019, an amount of $328,281 (2018: $643,594) was found to be
impaired and subsequently these bad debts were written off.
60
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 11. CURRENT ASSETS – INVENTORIES
Raw materials and consumables
Work in progress
Finished goods
Total inventories
2019
$’000
1,257
4
4,840
6,101
2018
$’000
653
5
3,161
3,819
In 2019, total cost of $17,190,177 associated with inventories was included in the Consolidated
Statement of profit and loss and other Comprehensive Income as an expense (2018: $12,827,293).
$477,636 (2018: $440,338) was incurred regarding a write down of inventories associated with
a change in device models and obsolescence of raw materials.
NOTE 12. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT
Details of the Group’s property, plant and equipment and their carrying amount are as follows:
Rental &
Demo
Units
$’000
Plant &
Equipment
$’000
Furniture &
Fittings
$’000
Office
Equipment
$’000
Leasehold
Improve-
ments
$’000
7,556
2,087
(516)
–
2
2,143
529
(31)
–
35
278
–
–
–
19
1,993
1,263
–
(16)
142
2,072
–
–
–
50
Total
$’000
14,042
3,879
(547)
(16)
248
Gross carrying
amount
Balance 1 July 2018
Additions
Disposals
transfer
net exchange
Differences
Balance 30 June 2019
9,129
2,676
297
3,382
2,122
17,606
Depreciation
and impairment
Balance 1 July 2018
Depreciation
Disposals
transfer
net exchange
Differences
Balance
30 June 2019
Carrying Value
30 June 2019
(2,706)
(1,920)
278
–
–
(1,603)
(534)
6
–
(3)
(4)
(4)
–
–
–
(517)
(615)
–
5
(12)
(529)
(510)
(5,359)
(3,583)
–
–
(4)
284
5
(19)
(4,348)
(2,134)
(8)
(1,139)
(1,043)
(8,672)
4,781
542
289
2,243
1,079
8,934
AnnuAl RepoRt 2019
61
Rental &
Demo
Units
$’000
Plant &
Equipment
$’000
Furniture &
Fittings
$’000
Office
Equipment
$’000
Leasehold
Improve-
ments
$’000
Total
$’000
8,018
3,138
(3,601)
1
1,523
634
(44)
30
113
172
(11)
4
1,351
579
(14)
77
1,046
1,221
12,051
5,744
(218)
(3,888)
23
135
Gross carrying
amount
Balance 1 July 2017
Additions
Disposals
net exchange
Differences
Balance 30 June 2018
7,556
2,143
278
1,993
2,072
14,042
Depreciation and
impairment
Balance 1 July 2017
(3,090)
Depreciation
Disposals
net exchange
Differences
(2,313)
2,697
–
(471)
(1,153)
29
(8)
Balance 30 June 2018
(2,706)
(1,603)
Carrying amount
30 June 2018
4,850
540
(5)
(2)
3
–
(4)
274
(426)
(70)
10
(31)
(517)
1,476
(349)
(270)
92
(2)
(4,341)
(3,808)
2,831
(41)
(529)
(5,359)
1,543
8,683
All depreciation and amortisation charges are included within depreciation and amortisation
expense.
During the year the Group wrote off rental units with a net book value of $177,818 (2018: $137,290)
which had been upgraded to a new device in line with Catapult’s subscription agreements.
During the year the Group also conducted a review of the loan unit register and disposed of old
rental units on the register that were no longer reconciled to existing subscription contracts.
these units had a net book value of $60,150 (2018: $766,725).
there were no material contractual commitments to acquire property, plant and equipment
at 30 June 2019 (2018: nil).
the net book value of assets held under Finance leases at the 30th June 2019 was $269,440
(2018: $224,217) and are included in office equipment.
62
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 13. NON-CURRENT ASSETS – GOODWILL
the movements in the net carrying amount of goodwill are as follows:
Balance at 1 July 2018
Acquired through business combinations
Foreign exchange effect on goodwill
Balance at 30 June 2019
13.1 Impairment Testing
2019
$’000
56,730
–
2,824
59,554
2018
$’000
53,127
1,141
2,462
56,730
For the purpose of annual impairment testing goodwill is allocated to the cash-generating
units which are expected to benefit from the synergies of the business combinations in which
goodwill arises.
elite Wearables
Sub-elite Wearables
Video Analytics
Goodwill allocation at 30 June 2019
2019
$’000
2,354
4,216
52,984
59,554
2018
$’000
2,354
4,101
50,275
56,730
the recoverable amounts of the cash-generating units were determined based on value-in-use
calculations, covering the detailed five-year forecast, followed by a terminal growth rate of
expected cash flows for the units. Growth rates are determined by management. the present
value of the expected cash flows of each segment is determined by applying a suitable
discount rate.
In measuring value in use cash flow projections are based on:
(a) reasonable and supportable assumptions that represent management’s best estimate
of the range of economic conditions that will exist over the remaining useful life of the asset;
(b) most recent financial budgets/forecasts approved by management, but exclude any
estimated future cash inflows or outflows expected to arise from future restructurings
or from improving or enhancing the asset’s performance; and
(c) estimates cash flow projections beyond the period covered by the most recent budgets/
forecasts by extrapolating the projections based on the budgets/forecasts using a steady
or declining growth rate for subsequent years.
elite Wearables
Sub-elite Wearables
Video Analytics
Terminal Growth Rates (%)
Discount Rates (%)
2019
2018
2.9
–
2.9
3.5
–
3.5
2019
10.5
10.0
10.8
2018
10.8
10.0
10.7
Management have identified that a reasonably possible change in the discount rate could cause
the carrying amount of some of the CGus to exceed the recoverable amount. the following table
shows the amount by which the discount rate would need to change for the estimated recoverable
amount to be equal to the carrying amount.
AnnuAl RepoRt 2019
63
In Percent
elite Wearables
Sub-elite Wearables
Video Analytics
Brand names
Change required for carrying amount
to equal recoverable amount
Discount Rate %
27.2%
36.4%
5.5%
the carrying value of brand names associated with each cash generating unit of the Group
are outlined below:
elite Wearables
Video Analytics
Brand names at 30 June 2019
13.2 Growth Rates
2019
$’000
250
5,130
5,380
2018
$’000
250
4,867
5,117
Five years of cash flows were included in the discounted cash flow model. the cash flow
projections included specific estimates for five years and a terminal growth rate thereafter.
the terminal growth rate was determined based on management’s estimate of the long-term
compound annual eBItDA growth rate, consistent with the assumptions that a market
participant would make.
• Revenue growth was projected taking into account the average growth levels experienced over
the past five years and the estimated sales volume and price growth for the next five years.
It was assumed that the sales price would increase in line with forecast inflation over the next
five years.
• Continued investment in core product development to underpin revenue growth particularly
in video and tactical products.
the growth rates reflect a conservative management estimate, as publicly published growth
rates for this industry segment are not readily available.
13.3 Discount Rates
the discount rate reflects appropriate adjustments relating to market risk and specific risk factors
of the business unit.
the discount rate was a post-tax measure estimated based on the historical industry average
weighted-average cost of capital.
64
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
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66
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 15. NON-CURRENT ASSETS – DEFERRED TAX ASSETS AND LIABILITIES
Deferred taxes arising from temporary differences and unused tax losses can be summarised
as attributable to the following:
Recognised
directly in
equity
$’000
Recognised
in Business
Combina-
tion
$’000
Recognised
in Profit
& Loss
$’000
1 July 2018
$’000
Exchange
Differences
$’000
30 June
2019
$’000
259
16
519
110
236
7,637
1,395
–
–
–
–
–
–
–
–
(126)
10,172
(126)
(2,981)
(2,127)
(29)
(5,137)
–
–
–
–
–
(126)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(6)
14
(151)
106
(123)
646
(486)
–
–
–
–
–
–
–
387
–
–
253
30
368
216
113
8,670
909
(126)
387
10,433
(1,066)
(161)
(4,209)
883
16
(167)
(167)
–
–
(161)
276
(1,244)
(13)
(5,466)
–
Deferred Tax
Liabilities/
(Assets)
Deferred Tax
Assets
provision for
annual leave
provision for
long service leave
other employee
obligations
professional
fees and
doubtful debts
other provisions
tax losses
Section 40-880
expenditure
Adoption
of AASB 15
Deferred Tax
Liabilities
other intangible
assets
Capitalised R&D
Foreign exchange
Deferred Tax
Movement
AnnuAl RepoRt 2019
67
Recognised
directly in
equity
$’000
Recognised
in Business
Combina-
tion
$’000
Recognised
in Profit
& Loss
$’000
1 July 2017
$’000
Exchange
Differences
$’000
30 June
2018
$’000
217
65
268
45
216
7,927
1,429
10,167
(3,568)
(865)
324
(4,109)
–
–
–
–
–
–
–
342
342
–
–
(324)
(324)
18
–
–
–
–
–
–
–
–
–
–
–
–
–
42
(49)
251
65
20
(559)
(376)
(606)
–
–
–
–
–
269
–
269
259
16
519
110
236
7,637
1,395
10,172
722
(135)
(2,981)
(1,262)
(29)
(569)
(1,175)
–
–
(136)
134
(2,127)
(29)
(5,137)
–
Deferred Tax
Liabilities/
(Assets)
Deferred Tax
Assets
provision for
annual leave
provision for long
service leave
other employee
obligations
professional fees
and doubtful
debts
other provisions
tax losses
Section 40-880
expenditure
Deferred Tax
Liabilities
other intangible
assets
Capitalised R&D
Foreign exchange
Deferred Tax
Movement
the amounts recognised in other comprehensive income relate to exchange differences
on translating foreign operations. See note 24 for the amount of the income tax relating
to these components of other comprehensive income.
the Group has accumulated tax losses across multiple jurisdictions of $95,431,000 (rounded
to the nearest $‘000) (FY18 84,885,000). the amount of tax losses and other tax credits
recognised in the statement of financial position is $31,930,000 (rounded to the nearest $’000)
(FY18 27,154,000).
NOTE 16. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES
trade and other payables consist of the following:
Current
trade payables and other payables
Total Trade payables and other payables
2019
$’000
2018
$’000
8,834
8,834
11,199
11,199
All amounts are short-term. the carrying values of trade payables and other payables are
considered a reasonable approximation of fair value.
68
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 17. CURRENT LIABILITIES – CONTRACT LIABILITIES
Contract liabilities and other liabilities consist of the following:
Contract liabilities
Advances received for future service work
Deferred gain (lease incentive)
other
Other liabilities – Current
Deferred gain (lease incentive)
Other Liabilities – Non-Current
Contract liabilities
Contract liabilities – Non-Current
2019
$’000
29,634
2019
$’000
403
356
1,045
1,804
562
562
1,775
1,775
2018
$’000
25,657
2018
$’000
7
347
1,440
1,794
582
582
584
584
the deferred gain relates to the lease incentives associated with the Chicago and prahran
premises commencing May 2016 and August 2017 respectively. the excess of proceeds received
over fair value was deferred and is being amortised over the lease term of each lease. In 2019,
deferred gain of $73,000 (rounded to the nearest $’000) (2018: $68,000) was recognised
in profit or loss relating to this transaction. the subsequent leasing agreement is treated as
an operating lease. the non-current part of the deferred gain will be amortised between 2019
and the end of each lease term.
All amounts recognised relating to contract liabilities are assessed for current versus non-current
classification and are applied to revenue as recognised in relation to the timing of the client
contract. the Group expects to recognise $29,633,977 of contract liabilities during FY2020,
with the balance falling into FY2020 and FY2021.
NOTE 18. FINANCIAL ASSETS AND LIABILITIES
18.1 Categories of financial assets and liabilities
note 4.13 provides a description of each category of financial assets and financial liabilities and
the related accounting policies. the carrying amounts of financial assets and financial liabilities
in each category are as follows:
30 June 2019
Financial assets
other long-term financial assets
trade and other receivables
Cash and cash equivalents
Notes
Loans and
receivables
$’000
Other
assets
$’000
(carried at
amortised cost)
(carried at
amortised cost)
10
10
19
599
34,286
–
34,885
–
–
11,747
11,747
Total
$’000
599
34,286
11,747
46,632
AnnuAl RepoRt 2019
69
30 June 2019
Financial liabilities
trade and other payables
Borrowings
non-Current Borrowings
Contingent consideration
on business combination
30 June 2018
Financial Assets
other long-term financial assets
trade and other receivables
Cash and cash equivalents
30 June 2018
Financial Liabilities
trade and other payables
Borrowings
non-current borrowings
Contingent consideration
on business combination
Other
Liabilities
$’000
Notes
Other
Liabilities
at FVTPL
$’000
(carried at
amortised cost)
(carried at
amortised cost)
16
18.2
18.2
8,834
108
188
–
9,130
–
–
–
413
413
Notes
Loans and
receivables
$’000
Other
assets
$’000
(carried at
amortised cost)
(carried at
amortised cost)
10
10
9
275
28,310
–
28,585
–
–
31,715
31,715
Other
Liabilities
$’000
Notes
Other
Liabilities
at FVTPL
$’000
(carried at
amortised cost)
(carried at
amortised cost)
16
18.2
18.2
11,199
3,452
103
–
14,754
–
–
–
438
438
Total
$’000
8,834
108
188
413
9,543
Total
$’000
275
28,310
31,715
60,300
Total
$’000
11,199
3,452
103
438
15,192
the carrying amount of the following financial assets and liabilities is considered a reasonable
approximation of fair value:
• trade and other receivables
• other long-term financial assets
• cash and cash equivalents
• trade and other payables.
70
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 18. FINANCIAL ASSETS AND LIABILITIES (continued)
18.2 Borrowings
Borrowings include the following financial liabilities:
Financial Liabilities
At amortised cost:
Finance loans
2019
$’000
–
108
108
Current
2018
$’000
Non-Current
2019
$’000
2018
$’000
3,301
151
3,452
–
188
188
–
103
103
Borrowings at amortised cost
other bank borrowings are secured by land and buildings owned by the group, while finance
loans are secured against the computer equipment purchased. Current interest rates on the
bank borrowing are variable and average 5.50% (2018: 6.25%) while the Finance loans are fixed
at 5.50%. the carrying amount of the other bank borrowings and finance loans are considered
to be a reasonable approximation of the fair value.
NOTE 19. CURRENT LIABILITIES – EMPLOYEE BENEFITS
19.1 Employee benefits expense
expenses recognised for employee benefits are analysed below:
Wages and salaries
Social security costs
Share-based payments
Superannuation – Defined Contribution plans
2019
$’000
39,306
2,268
1,184
1,512
2018
$’000
35,192
1,222
1,512
1,591
Employee benefit expenses
44,270
39,517
19.2 Share-base employee remuneration
Catapult has continued to utilise its established employee Share plan (employee plan) to assist
in the motivation, retention and reward of executives and employees. the employee plan is
designed to align the interests of employees with the interests of Shareholders by providing
an opportunity for eligible employees (including any person who is a full-time or permanent
part-time employee or officer, or director of Catapult or any related body corporate of Catapult)
to receive an equity interest in Catapult through the granting of options, performance Rights
or other Awards.
the Shares held by the employee plan trustee are Restricted Securities such that the employee
plan trustee is not able to dispose of them within 24 months of official Quotation. the key terms
of the employee plan are set out below:
Eligibility
eligibility to participate in the employee plan and the number of options, performance Rights
or other Awards offered to each individual participant, will be determined by the Board.
AnnuAl RepoRt 2019
71
Grants
under the rules of the employee plan, options, performance Rights and/or other Awards may
be offered or granted to eligible employees of Catapult or any related body corporate of Catapult
from time to time, subject to the discretion of the Board.
Terms and conditions
the Board has the discretion to set the terms and conditions (including conditions in relation
to vesting, disposal restrictions or forfeiture and any applicable exercise price) on which it will
offer or grant options, performance Rights or other Awards under the employee plan and may
set different terms and conditions which apply to different participants in the employee plan.
the Board will determine the procedure for offering or granting options, performance Rights
and/or other Awards (including the form, terms and content of any offer, invitation or acceptance
procedure) in accordance with the rules of the employee plan.
options and performance Rights and other Awards will vest and become exercisable to the
extent that the applicable performance, service, or other vesting conditions specified at the
time of the grant are satisfied (collectively the “Vesting Conditions”). Vesting Conditions are
more fully described in the Remuneration Report contained in the Director’s Report above.
Shares issued (including Shares issued upon exercise of options or performance Rights granted)
under the employee plan will rank equally in all respects with the other issued Shares.
Subject to satisfaction of Vesting Conditions, a participant may exercise an option,
performance Right or other Award by lodging an exercise notice with Catapult and
complying with any requirements under the employee plan.
A participant will have a vested and indefeasible entitlement to any dividends declared and
distributed by Catapult on any Shares which, at the books closing date for determining entitlement
to those dividends, are standing to the account of the participant. A participant may exercise
any voting rights attaching to Shares registered in the participant’s name.
Catapult may, in its discretion, issue new Shares or cause existing Shares to be acquired
or transferred to the participant, or a combination of both alternatives, to satisfy Catapult’s
obligations under the employee plan. If Catapult determines to cause the transfer of Shares
to a participant, the Shares may be acquired in such manner as Catapult considers appropriate,
including from a trustee appointed under the employee plan.
pursuant to the employee plan, Catapult has appointed the employee plan trustee to acquire and
hold Shares on behalf of participants and for the purposes of the employee plan. Catapult may
give directions to the employee plan trustee as contemplated in the trust deed or if in connection
with any Award. the employee plan trustee holds 2,350,253 Shares on behalf of participants and
for the purposes of the employee plan.
options, performance Rights and other Awards which have not been exercised will be forfeited
if the applicable Vesting Conditions and any other conditions to exercise are not met during
the prescribed vesting period or if they are not exercised before the applicable expiry date.
In addition, options, performance Rights and other Awards will lapse if the participant deals with
the options, performance Rights or other Awards in breach of the rules of the employee plan or
in the opinion of the Directors, a participant has acted fraudulently or with gross misconduct.
options, performance Rights and other Awards will not be quoted on ASX. Catapult will
apply for official quotation of any Shares allotted under the employee plan, unless the Board
resolves otherwise.
the Board may in its absolute discretion determine that a participant is required to pay an
exercise price to exercise the options, performance Rights or other Awards offered or granted
to that participant.
Grants of options, performance Rights or other Awards under the employee plan to a Director may
be subject to the approval of Shareholders, to the extent required under the ASX listing Rules.
72
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 19. CURRENT LIABILITIES – EMPLOYEE BENEFITS (continued)
19.2 Share-base employee remuneration (continued)
Terms and conditions (continued)
participants in the employee plan must not enter into transactions or arrangements, including
by way of derivatives or similar financial products, which limit the economic risk of holding
unvested Awards.
Subject to the rules of the employee plan, the Board must not offer options, performance Rights
or other Awards if the total of the following exceeds 5% of the number of Shares on issue at the
time of the offer:
• the number of Shares which are the subject of the offer of Awards;
• the number of Shares which are the subject of any outstanding offers of Awards;
• the number of Shares issued during the previous 5 years under the employee plan, but not
including existing Shares transferred to a participant after having been acquired for that
purpose; and
• the number of Shares which would be issued under all outstanding Awards that have been
granted but which have not yet been exercised, terminated or expired, assuming all such
Awards were exercised ignoring any Vesting Conditions, but disregarding any offer made,
or Award offered or issued or Share issued by way or as a result of:
– an offer that does not meet disclosure to investors because of section 708 or section 1012D
of the Corporations Act;
– an offer made pursuant to a disclosure document or product disclosure statement; or
– other offers that are excluded from the disclosure requirements under the Corporations Act.
the Board may impose restrictions on dealing in Shares or Awards which are acquired under
the employee plan, for example, by prohibiting them from being sold, transferred, mortgaged,
pledged, charged or otherwise disposed of or encumbered for a period of time.
If the Board determines that for taxation, legal, regulatory or compliance reasons it is not
appropriate to issue or transfer Shares, Catapult may in lieu of and in final satisfaction of
Catapult’s obligation to issue or transfer Shares as required upon the exercise of an Award
by a participant, make a cash payment to the participant equivalent to the fair market value
of the Awards.
Where there is a change of control of Catapult, including where any person acquires a relevant
interest in more than 50% of the Shares, or where the Board concludes that there has been
a change in the control of Catapult, the Board will determine, in its sole and absolute discretion,
the manner in which all unvested and vested Awards will be dealt with.
Where there is a takeover bid made for all of the Shares or a scheme of arrangement, selective
capital reduction or other transaction is initiated which has a similar effect to a full takeover bid
for Shares, then participants are entitled to accept into the takeover offer or participate in the
other transaction in respect of all or part of their Awards notwithstanding any restriction period
has not expired. Further, the Board may in its discretion waive unsatisfied Vesting Conditions
in relation to some or all Awards in the event of such a takeover or other transaction.
If, prior to the exercise of an Award, Catapult makes a pro-rata bonus issue to Shareholders, and
the Award is not exercised prior to the record date in respect of the bonus issue, the Award will,
when exercised, entitle the participant to one Share plus the number of bonus shares which would
have been issued to the participant if the Award had been exercised prior to the record date.
If Catapult undergoes a capital reorganisation, then the terms of the Awards for the participant
will be changed to the extent necessary to comply with the ASX listing Rules.
AnnuAl RepoRt 2019
73
the employee plan also contains terms having regard to Australian law for dealing with the
administration, variation and termination of the employee plan. Share options and weighted
average exercise prices are as follows for the reporting periods presented:
Options Program
Performance Rights
Number of
Shares
8,879,091
4,237,426
(3,842,146)
(60,000)
(500,000)
8,714,371
2,931,682
Weighted
average
exercise
price ($)
2.2954
1.3300
2.3299
0.5500
4.8430
1.7583
1.4764
Number of
Shares
100,000
446,245
(60,484)
(80,645)
–
405,116
100,000
Weighted
average
exercise
price ($)
–
–
–
–
–
–
–
Options Program
Performance Rights
Number of
Shares
9,846,567
2,495,000
(2,204,476)
(758,000)
(500,000)
8,879,091
2,449,334
Weighted
average
exercise
price ($)
2.4261
1.8910
0.9886
0.5903
4.2840
2.2954
1.3235
Number of
Shares
760,000
–
(70,000)
(590,000)
–
100,000
–
Weighted
average
exercise
price ($)
–
–
–
–
–
–
–
outstanding at 1 July 2018
Granted
Forfeited
exercised
expired
Outstanding at 30 June 2019
Exercisable at 30 June 2019
Outstanding at 1 July 2017
Granted
Forfeited
exercised
expired
Outstanding at 30 June 2018
Exercisable at 30 June 2018
19.3 Employee benefits
the liabilities recognised for employee benefits consist of the following amounts:
Wages and salaries
Social security costs & payroll taxes
Defined contribution plans
Accrued leave entitlements
Total current employee benefits
Non-current
Accrued leave entitlements
Total non-current employee benefits
2019
$’000
4,793
193
1,111
1,460
7,557
2018
$’000
6,329
129
946
1,394
8,798
41
41
53
53
the current portion of these liabilities represents the Group’s obligations to its current and former
employees that are expected to be settled during the next 12 months and its accrued annual leave
liabilities and current accrued long service leave.
74
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 20. EQUITY – SHARE CAPITAL
the share capital of Catapult Group International ltd consists only of fully paid ordinary shares;
the shares do not have a par value. All shares are equally eligible to receive dividends and the
repayment of capital and represent one vote at the shareholders’ meeting of Catapult Group
International ltd.
30 June
2019
Shares
30 June
2018
Shares
Notes
Shares issued and fully paid for:
190,895,116
167,923,667
190,895,116
167,923,667
30 June
2019
$’000
164,324
164,324
–
–
–
–
30 June
2018
$’000
138,724
138,724
25,000
250
(1,139)
342
22,727,273
144,176
–
–
–
–
–
–
–
100,000
678
1,147
190,895,116
190,895,116
165,002
164,324
Beginning of the year
Shares issued for cash
Shares issued on for
acquisition of AMS
Share issue costs
Deferred tax
credit recognised
exercise of performance
options and equity options
Total contributed equity
at end of reporting year
treasury Shares
20. (a)
(2,350,253)
(2,490,898)
–
–
Total contributed equity
188,544,863 188,404,218
165,002
164,324
During the 12 months to 30 June 2019 the Group issued 4,237,426 of options as part of the
employee Share plan. the options were issued at an average exercise price of $1.33 and a fair
value of $0.23.
During the 12 months to 30 June 2019 the Group issued 446,245 of performance rights as part
of the employee Share plan. the options were issued at an average exercise price of $0.00 and
a fair value of $1.24.
20. (a) Treasury Shares
treasury shares are shares in Catapult Group International limited that are held by the Catapult
Sports employee Share plan trust for the purpose of issuing shares under the Catapult Sports
employee Share plan in respect of options and performance rights issued under that plan:
Opening Balance at 1 July 2018
transactions during the year
Closing balance at 30 June 2019
2019
Shares
2018
Shares
2,490,898
3,738,898
(140,645)
(1,248,000)
2,350,253
2,490,898
During the financial period a number of shares were issued under the employee Share purchase
performance rights plan vested. the number of shares exercised under this performance right
plan was 80,645 at an average exercise price of $0.00 per share. the amount raised was $nil.
During the financial period a number of shares were issued under the employee Share purchase
option plan vested. the number of shares exercised under this option plan was 60,000 at an
average exercise price of $0.55 per share. the amount raised was $33,000.
AnnuAl RepoRt 2019
75
20. (b) Options and performance rights on issue
the following sets out the weighted average exercise price calculations for all outstanding options
(however, excluding the effect of the performance rights as detailed at note 20.2):
Outstanding at beginning of year
outstanding at end of year
Currently exercisable
NOTE 21. CURRENT LIABILITIES – LEASES
21.1 Finance leases as lessee
Weighted average
exercise price
2.2954
1.7583
1.4764
the Group has certain computer equipment held under finance lease arrangements. As of
30 June 2019, the net carrying amount of the computer equipment held under finance lease
arrangements (included as part of office equipment) is $269,440 (2018: $224,217).
the Group’s finance lease liabilities, which are secured by the related assets held under finance
leases, are classified as follows:
Finance lease liabilities
Current:
• finance lease liabilities
Non-current:
• finance lease liabilities
2019
$’000
2018
$’000
108
–
188
151
–
103
Future minimum finance lease payments at the end of each reporting period under review were
as follows:
30 June 2019
lease payments
Finance charges
net present values
30 June 2018
lease payments
Finance charges
net present values
Minimum lease payments due
Within
1 year
$’000
2–5 years
$’000
After
5 years
$’000
Total
$’000
108
2
98
151
12
125
188
10
108
103
3
82
–
–
–
–
–
–
296
12
206
254
15
207
76
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 21. CURRENT LIABILITIES – LEASES (continued)
21.2 Operating leases as lessee
the Group leases an office and production building under an operating lease. the future minimum
lease payments are as follows:
30 June 2019
30 June 2018
Minimum Lease Payments Due
Within
1 year
$’000
2,141
1,917
2–5 years
$’000
4,455
5,030
After
5 years
$’000
–
90
Total
$’000
6,596
7,037
lease expense during the period amounted to $2,207,132 (2018: $2,273,363) representing the
minimum lease payments.
21.3 Operating leases as lessor
the Group leases out wearable athlete tracking units and laptops on a subscription basis to its
clients. the future minimum revenues are as follows:
30 June 2019
30 June 2018
Minimum Lease Payments Due
Within
1 year
$’000
23,881
19,717
2–5 years
$’000
17,951
19,023
After
5 years
$’000
–
–
Total
$’000
41,832
38,740
lease revenues during the period amounted to $27,638,813 (2018: $20,831,726) representing the
minimum subscription payments for these lease units.
Subscription agreements are in place with over 650 clients (2018: 600 clients) with a broad
range of expiry dates, based on the commencement of this kind of arrangement in 2012 and
contracts typically of 36 months with standard wording incorporating rolling renewals of these
agreements upon expiry of the initial term. the athlete tracking units and their associated
equipment are included as the Group’s Rental and loan units and are depreciated over their
useful life of 4 years (see note 12).
NOTE 22. FINANCE COSTS AND FINANCE INCOME
Finance costs for the reporting periods consist of the following:
Interest expenses for borrowings at amortised cost:
Interest expense
Amortisation of borrowing costs
2019
$’000
2018
$’000
35
35
76
76
2019
$’000
2018
$’000
Finance income for the reporting periods consists of the following:
Interest income from cash and cash equivalents
290
169
AnnuAl RepoRt 2019
77
NOTE 23. OTHER FINANCIAL ITEMS
other financial items consist of the following:
Other financial items consist of the following:
Gain/(loss) on exchange differences on payables and receivables
211
(266)
2019
$’000
2018
$’000
NOTE 24. INCOME TAX EXPENSE
the major components of tax expense and the reconciliation of the expected tax expense based
on the domestic effective tax rate of Catapult Group International ltd at 30% (2018: 30%) are:
Numerical reconciliation of income tax benefit and tax
at the statutory rate
Loss before income tax
Expected tax expense at the domestic tax rate for parent at 30%
overseas tax rate differential
Change in tax rate in foreign jurisdictions
tax losses not recognised
prior year tax losses utilised in current period
Adjustment for tax-effect of non-deductible expenses:
Adjustments for prior periods
net R&D tax offset
other non-deductible expenses
Actual tax expense
Tax benefit comprises:
Adjustments for prior periods
Current tax
Deferred tax
Income tax expense
2019
$’000
2018
$’000
(12,496)
(3,749)
(16,259)
(4,878)
491
–
2,034
(370)
(287)
(447)
2,413
85
(287)
235
137
85
756
1,132
4,272
(390)
(17)
–
226
1,101
(17)
116
1,002
1,101
Deferred tax benefit recognised directly in equity relating
to share issue costs
–
(342)
note 16 provides information on deferred tax assets and liabilities.
78
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 24. INCOME TAX EXPENSE (continued)
Accounting policy for income tax
the income tax expense or benefit for the period is the tax payable on that period’s taxable
income based on the applicable income tax rate for each jurisdiction, adjusted by the changes
in deferred tax assets and liabilities attributable to temporary differences, unused tax losses
and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates
expected to be applied when the assets are recovered or liabilities are settled, based on those
tax rates that are enacted or substantively enacted, except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill
or an asset or liability in a transaction that is not a business combination and that, at the time
of the transaction, affects neither the accounting nor taxable profits; or
• When the taxable temporary difference is associated with interests in subsidiaries, associates
or joint ventures, and the timing of the reversal can be controlled, and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses
only if it is probable that future taxable amounts will be available to utilise those temporary
differences and losses.
the carrying amount of recognised and unrecognised deferred tax assets are reviewed at each
reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer
probable that future taxable profits will be available for the carrying amount to be recovered.
previously unrecognised deferred tax assets are recognised to the extent that it is probable that
there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to
offset current tax assets against current tax liabilities and deferred tax assets against deferred
tax liabilities; and they relate to the same taxable authority on either the same taxable entity
or different taxable entities which intend to settle simultaneously.
NOTE 25. AUDITORS REMUNERATION
Assurance Services
Audit and review of the Financial Statements
overseas Grant thornton network firms
Other services
taxation compliance and general accounting advice
overseas Grant thornton network firms
other review services
Total other service remuneration
Total auditors remuneration
2019
2018
200,424
21,495
237,396
28,426
221,919
265,822
–
–
8,651
8,651
230,570
78,340
8,745
4,507
91,592
357,414
AnnuAl RepoRt 2019
79
NOTE 26. EARNINGS PER SHARE
Both the basic and diluted earnings per share have been calculated using the loss attributable
to shareholders of the parent Company (Catapult Group International ltd) as the numerator
(i.e no adjustments to profit were necessary in 2016 or 2017). 8,714,371 options and performance
rights have not been included in calculating diluted epS because their effect is anti-dilutive.
the reconciliation of the weighted average number of shares for the purpose of diluted earnings
per share to the weighted average number of ordinary shares used in the calculation of basic
earnings per share are as follows:
Weighted average number of shares used in basic and diluted
earnings per share
2019
shares
’000
2018
shares
’000
190,407
173,844
NOTE 27. EQUITY – DIVIDENDS
nil paid in the period.
27.1 Dividends paid and proposed
nil.
27.2 Franking credits
the amount of the franking credits available for subsequent
reporting periods are:
Balance of franking account at the beginning of the year
Balance of franking account adjusted for deferred debits arising
from past R&D tax offsets received and expected R&D tax offset
to be received for the current year
2019
$’000
2018
$’000
(3,841)
(3,841)
(3,841)
(3,841)
80
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 28. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH
(USED IN)/GENERATED FROM OPERATING ACTIVITIES
loss after income tax (expense)/benefit for the year
Adjustments for:
Depreciation and amortisation
Share-based payments
Foreign exchange differences
net interest and dividends received included in investing and financing
Change in operating assets and liabilities:
(Increase) in trade and other receivables
(Increase) in inventories
Decrease in current tax assets
Increase/(decrease) in trade and other payables
(Decrease) in provision for income tax
Increase in deferred tax liabilities
Increase/(decrease) in employee benefits
Increase in other provisions
Net cash (used in)/generated from operating activities
2019
$’000
2018
$’000
(12,581)
(17,360)
17,043
1,184
(233)
(255)
5,158
(7,933)
(2,282)
89
(2,365)
(220)
68
(1,253)
6,542
(2,196)
14,141
1,512
107
(93)
(1,693)
(3,985)
(477)
1,924
2,657
(53)
1,023
2,714
4,310
6,420
NOTE 29. RELATED PARTY TRANSACTIONS
the Group’s related parties include its associates and joint venture, key management,
post-employment benefit plans for the Group’s employees and others as described below.
transactions with key management
2019
27,716
2018
34,160
Calvin ng is a director of Aura Group pty ltd. During the year, the Group did not engage Aura
Capital pty ltd (a subsidiary of Aura Group Services ltd) for advisory services (2018: $5,189).
Catapult rents office space from Aura Group Services ltd in Sydney and Singapore for a total
cost of $27,716 (2018: $28,971) and had an amount payable as at 30 June 2019 of $3,618
(2018: $6,794).
AnnuAl RepoRt 2019
81
29.1 Transactions with key management personnel
Key management of the Group are the executive members of Catapult Group International’s
Board of Directors and executive team.
unless otherwise stated, none of the transactions incorporate special terms and conditions
and no guarantees were given or received. outstanding balances are usually settled in cash.
Short term employee benefits:
Salaries including bonuses and leave accruals
Social security costs
Total short-term employee benefits
long service leave
Total other long-term benefits
Share based payments
Total remuneration
NOTE 30. FINANCIAL INSTRUMENT RISK
30.1 Risk management objectives an polices
2019
2018
2,975,621
3,651,802
130,836
148,637
3,106,457
3,800,439
(44,360)
(44,360)
(44,591)
(44,591)
650,052
1,503,673
3,712,149
5,259,521
the Group is exposed to various risks in relation to financial instruments. the Group’s financial
assets and liabilities by category are summarised in note 18.1. the main types of risks are market
risk, credit risk and liquidity risk.
the Group’s risk management is coordinated in close cooperation with the Board of Directors,
and focuses on actively securing the Group’s short to medium-term cash flows by minimising
the exposure to financial markets the Group does not actively engage in the trading of financial
assets for speculative purposes nor does it write options. the most significant financial risks
to which the Group is exposed are described below.
30.2 Market risk analysis
the Group is exposed to currency risk resulting from its operating activities.
Foreign Currency Sensitivity
exposures to currency exchange rates arise from the Group’s overseas sales and purchases,
which are primarily denominated in uS dollars (uSD), pound Sterling (GBp), euro (euR),
Japanese Yen (JpY).
Foreign currency denominated financial assets and liabilities which expose the Group to currency
risk are disclosed below. the amounts shown are those translated into $AuD at the closing rate:
Short term
exposure
30 June 2019
USD
$’000
GBP
$’000
EUR
$’000
JPY
$’000
AED
$’000
Other
Currencies
$’000
Financial assets
Financial liabilities
Total exposure
27,394
(2,719)
24,675
2,860
(450)
2,410
4,045
(109)
3,936
272
(10)
262
–
–
–
–
(6)
(6)
82
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 30. FINANCIAL INSTRUMENT RISK (continued)
30.2 Market risk analysis (continued)
Foreign Currency Sensitivity (continued)
Long term
exposure
30 June 2019
Financial assets
Financial liabilities
Total exposure
Short term
exposure
30 June 2018
Financial assets
Financial liabilities
Total exposure
Long term
exposure
30 June 2017
Financial assets
Financial liabilities
Total exposure
USD
$’000
GBP
$’000
EUR
$’000
JPY
$’000
AED
$’000
Other
Currencies
$’000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
USD
$’000
GBP
$’000
EUR
$’000
JPY
$’000
AED
$’000
Other
Currencies
$’000
29,848
(4,428)
25,420
1,793
(830)
963
4,333
(103)
4,230
65
(3)
62
–
–
–
50
(48)
2
USD
$’000
GBP
$’000
EUR
$’000
JPY
$’000
AED
$’000
Other
Currencies
$’000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
the following table illustrates the sensitivity of profit and equity regarding the Group’s financial
assets and financial liabilities, and the various exchange rates ‘all other things being equal’.
It assumes a +/- 10% change of the various exchange rates for the year ended at 30 June 2019
(2018:10%).
30.3 Market risk analysis
Foreign currency sensitivity
If the AuD had strengthened by 10% against the respective currencies then this would have had
the following impact:
30 June 2019
30 June 2018
USD
$’000
(2,243)
(2,311)
GBP
$’000
(219)
(88)
EUR
$’000
(358)
(385)
JPY
$’000
Other
currencies
$’000
4
(6)
(1)
–
Total
$’000
(2,817)
(2,790)
AnnuAl RepoRt 2019
83
If the AuD had weakened by 10% against the respective currencies then this would have had the
following impact:
30 June 2019
30 June 2018
USD
$’000
2,742
2,824
GBP
$’000
EUR
$’000
JPY
$’000
268
107
437
470
29
7
Other
currencies
$’000
1
–
Total
$’000
3,477
3,408
exposures to foreign exchange rates vary during the year depending on the volume of overseas
transactions. nonetheless, the analysis above is considered to be representative of the Group’s
exposure to currency risk.
30.4 Credit risk analysis
Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. the Group
is exposed to this risk for receivables to customers. the Group’s maximum exposure to credit
risk is limited to the carrying amount of the financial assets recognised at the reporting date,
as summarised below:
Classes of financial assets
• cash and cash equivalents
• trade receivables
• other long-term financial assets
2019
$’000
2018
$’000
11,747
34,286
599
31,715
28,310
275
46,632
60,300
the Group continuously monitors defaults of customers and other counterparties, identified
either individually or by group, and incorporates this information into its credit risk controls.
Where available at reasonable cost, external credit ratings and/or reports on customers
and other counterparties are obtained and used. the Group’s policy is to deal only with
creditworthy counterparties.
the Group’s management considers that all of the above financial assets that are not impaired
or past due for each of the 30 June reporting dates under review are of good credit quality.
At 30 June the Group has certain trade receivables that have not been settled by the contractual
due date but are not considered to be impaired. the amounts at 30 June, analysed by the length
of time past due, are:
not more than (3) months
More than three (3) months but not more than six (6) months
More than six (6) months but not more than one (1) year
More than one (1) year
Total
2019
$’000
27,066
1,528
633
697
2018
$’000
24,634
1,032
493
33
29,924
26,192
In respect of trade receivables, the Group is not exposed to any significant credit risk exposure
to any single counterparty or any group of counterparties having similar characteristics.
trade receivables consist of a large number of customers in various sports and geographical
areas. Based on historical information about customer default rates management consider
the credit quality of trade receivables that are not past due or impaired to be good.
the credit risk for cash and cash equivalents is considered negligible, since the counterparties
are reputable banks with high quality external credit ratings.
84
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 30. FINANCIAL INSTRUMENT RISK (continued)
30.5 Liquidity risk analysis
liquidity risk is the risk that the Group might be unable to meet its obligations. the Group
manages its liquidity needs by monitoring scheduled debt servicing payments for long-term
financial liabilities as well as forecast cash inflows and outflows due in day-to-day business.
liquidity needs are monitored on a week-to-week basis, as well as on the basis of a rolling
90-day projection. the Group’s uS Subsidiary, XoS technologies Inc, entered into a secured loan
facility with Western Alliance Bank in April 2017, and AuD nil was drawn down at 30 June 2019.
As at 30 June 2019, the Group’s non-derivative financial liabilities have contractual maturities
(including interest payments where applicable) as summarised below:
30 June 2019
uS-Dollar loans
trade and other payables
Total
Within
6 months
$’000
Current
6–12 months
$’000
1–5 years
$’000
Non-current
5+ years
$’000
108
8,834
8,942
–
–
–
188
–
188
–
–
–
this compares to the maturity of the Group’s non-derivative financial liabilities in the previous
reporting periods as follows:
30 June 2018
uS-Dollar loans
trade and other payables
Total
Within
6 months
$’000
Current
6–12 months
$’000
1–5 years
$’000
Non-current
5+ years
$’000
–
11,199
11,199
3,641
–
3,641
103
–
103
–
–
–
the above amounts reflect the contractual undiscounted cash flows, which may differ to the
carrying values of the liabilities at the reporting date.
NOTE 31. CAPITAL MANAGEMENT POLICIES AND PROCEDURES
the Group’s objectives when managing capital are to safeguard its ability to continue as a going
concern, to provide returns for shareholders and benefits for other stakeholders and to maintain
an optimal capital structure to reduce the cost of capital. Consistent with others in the industry,
the Group monitors capital on the basis of its gearing ratio. In order to maintain or adjust its
capital structure, the group considers its issue of new capital, return of capital to shareholders
and dividend policy as well as its plan for acquisition or disposal of assets.
AnnuAl RepoRt 2019
85
NOTE 32. CONTINGENT LIABILITIES
there were no contingent liabilities as at 30 June 2019.
NOTE 33. PARENT ENTITY INFORMATION
Information relating to Catapult Group International ltd (‘the parent entity’):
Statement of financial position
Current assets
total assets
Current liabilities
total liabilities
Net assets
Issued capital
Foreign currency reserve
Retained earnings
Share option reserve
Total equity
Statement of profit and loss and other comprehensive income
loss for the year
other comprehensive income/(loss)
Total comprehensive income/(loss)
2019
$’000
2018
$’000
355
470
153,557
154,670
392
2,678
150,879
165,002
599
2,284
152,386
164,340
(4,038)
(3,832)
(15,450)
(12,968)
5,365
4,846
150,879
152,386
(2,356)
(206)
(2,562)
(4,041)
(1,787)
(5,828)
the parent entity has no capital commitments at year end (2018: $nil).
parent entity guarantees in respect of debts of its subsidiaries.
As outlined in the statement of equity there was a prior year adjustment relating to adopting
new standards in the 2019 financial statements. this resulted in an adjustment of $126,000
(round to the nearest $’000) (note 3.1) to retained earnings for the parent entity.
the parent entity entered into the following guarantee on the 26 June 2017:
A Deed of cross Guarantee with the effect that the Company guarantees debts in respect
of one of its subsidiaries. Further details to the Deed Cross Guarantee and the subsidiaries
subject to the deed, are disclosed in note 34.
86
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 34. DEED OF CROSS GUARANTEE
A consolidation income statement and consolidation balance sheet comprising the Company
and controlled entity which are a party to the Deed of Gross Guarantee (members of the
“Closed Group”), after eliminating all transactions between parties to the Deed of Gross
Guarantee are as follows.
Closed Group
2019
$’000
2018
$’000
Summarised income statement and statement
of comprehensive income and accumulated losses
profit/(loss) before income tax expense
(5,399)
(10,209)
Income tax benefit/(expense)
profit after income tax
Accumulated losses at the beginning of the financial year
Adoption of AASB15 Revenue
(38)
(5,437)
(29,786)
294
(1,111)
(11,320)
(18,466)
–
Accumulated losses at the end of the financial year
(34,929)
(29,786)
Statement of Financial position
Current assets
Cash and equivalents
trade and other receivables
Inventories
other current assets
Total current assets
Non-current assets
property, plant and equipment
Intangible assets
Investments
Deferred tax assets
other non-current assets
Total non-current assets
Total assets
Current liabilities
trade and other payables
employee benefits
other current liabilities
Total current liabilities
7,048
14,858
2,414
1,904
26,224
5,929
11,005
12,383
3,717
100,521
133,555
159,779
11,517
3,168
7,333
22,018
22,115
11,726
2,178
1,706
37,725
6,080
8,801
12,637
3,843
89,072
120,433
158,158
5,649
3,750
8,040
17,439
AnnuAl RepoRt 2019
87
Non-current liabilities
employee benefits
other non-current liabilities
Total non-current liabilities
Total Liabilities
Net assets
Shareholders’ equity
Issued capital
Share option reserve
Foreign currency reserve
Accumulated losses
Total Shareholders’ equity
Closed Group
2019
$’000
2018
$’000
41
3,088
3,129
25,147
53
2,309
2,362
19,801
134,632
138,357
165,002
164,324
5,365
(806)
4,847
(1,028)
(34,929)
(29,786)
134,632
138,357
the members of the Closed Group comprise Catapult Group International limited and
Catapult Sports pty ltd.
NOTE 35. EVENTS AFTER THE REPORTING PERIOD
no matter or circumstance has arisen since 30 June 2019 that has significantly affected,
or may significantly affect the consolidated entity’s operations, the results of those operations,
or the consolidated entity’s state of affairs in future financial years.
88
CAtApult GRoup InteRnAtIonAl ltD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NOTE 36. ACQUISITION OF ATHLETE MANAGEMENT SYSTEM (AMS)
on 4 August 2017, Catapult acquired the SportsMed elite and Baseline Athlete Management
System (AMS) products and clients and recruited key personnel, from SMG technologies pty ltd
(SMG) for consideration ranging between $1.4 million and $3.9 million depending on performance
metrics and incremental revenue generated in the two years following the acquisition.
Fair value of consideration transferred:
Amount settled in cash
Contingent consideration
Amount settled in shares
Recognised amounts of Identifiable net assets
property, plant and equipment
Identifiable Intangible Assets
Total non-current assets
Deferred revenue
employee benefits
liabilities
Identifiable Net Assets
Goodwill recognised on acquisition
Consideration transferred settled in cash
Cash acquired
Net cash outflow on acquisition
Measurement of fair values
$’000
1,534
438
250
2,222
–
1,280
1,280
(173)
(26)
(199)
1,081
1,141
1,534
–
1,534
the valuation technique used for measuring the fair value of Intangible assets was the multi-period
excess earnings method considering the present value of net cash flows expected to be generated,
excluding any cash flows related to contributory assets with cross check to replacement cost.
Acquisition-related costs
Acquisition related costs amounting to $386k are not included as part of consideration transferred
and have been recognised as an expense in the consolidated statement of profit or loss and other
comprehensive income, as part of ‘other expenses’.
Fair values measured on a provisional basis
the following amounts have been measured on a provisional basis.
the Group has agreed to pay the selling shareholders contingent consideration up to $2 million
based on future revenue earned over a period of 24 months from acquisition. the Group has
included $438K in contingent consideration reflecting the present value of the best estimate of
the deferred consideration that will be paid based on forecast earnings. the Group will continue
to measure the revenue earn-out over the post-acquisition period and revise the provisional
estimate for acquisition accounting. As at 30 June 2019 $24,691 has been paid out to SMG
in respect of this deferred consideration.
AnnuAl RepoRt 2019
89
DIRECTORS’ DECLARATION
In the opinion of the Directors of Catapult Group International ltd:
• the attached financial statements and notes comply with the Corporations Act 2001, the
Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements;
• the attached financial statements and notes comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board as described in note 4
to the financial statements;
• the attached financial statements and notes give a true and fair view of the company’s and
consolidated entity’s financial position as at 30 June 2019 and of their performance for the
financial year ended on that date;
• 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
• at the date of this declaration, there are reasonable grounds to believe that the members
of the extended Closed Group will be able to meet any obligations or liabilities to which they
are, or may become, subject by virtue of the deed of cross guarantee described in note 34
to the financial statements.
the Directors have been given the declarations required by section 295A of the Corporations Act
2001 from the executive Chairman and the Chief Financial officer for the financial year ended
30 June 2019.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the
Corporations Act 2001.
Dr Adir Shiffman
Director
Dated the 22nd day of August 2019
90
CAtApult GRoup InteRnAtIonAl ltD
INDEPENDENT AUDITOR’S REPORT
AnnuAl RepoRt 2019
91
92
CAtApult GRoup InteRnAtIonAl ltD
INDEPENDENT AUDITOR’S REPORT (CONTINUED)
AnnuAl RepoRt 2019
93
94
CAtApult GRoup InteRnAtIonAl ltD
INDEPENDENT AUDITOR’S REPORT (CONTINUED)
AnnuAl RepoRt 2019
95
SHAREHOLDER INFORMATION
Additional information required by the ASX limited listing Rules and not disclosed elsewhere
in this report is set out below.
1. CORPORATE GOVERNANCE STATEMENT
Catapult’s corporate governance statement for the financial year ended 30 June 2019 is available
at the following uRl:
www.catapultsports.com/investor/corporate-governance/
2. SUBSTANTIAL SHAREHOLDERS
Substantial holder
Manton Robin pty ltd; Manton Robin pty ltd
< Shaun Holthouse Family A/C >; Shaun Holthouse
Charlaja pty ltd; Charlaja pty ltd
< Van De Griendt Family A/C >; Igor Van De Griendt
Shares Held
Notice date
21,375,000
8 June 2017
20,508,000
7 June 2017
one Managed Investment Funds limited
1,7867,096 3 october 2019
3. NUMBER OF HOLDERS OF EACH CLASS OF EQUITY SECURITY
Equity security class
ordinary shares
employee options and performance rights
Number
of holders
6,606
104
4. VOTING RIGHTS ATTACHED TO EACH CLASS OF
EQUITY SECURITY
At a general meeting, every Shareholder present in person or by proxy, body corporate
representative, or attorney has one vote on a show of hands and one vote for each Share
held on a poll.
Votes are cast by a show of hands unless a poll is demanded. A poll may be demanded by the
chairperson or at least five Shareholders entitled to vote on the resolution or Shareholders
with at least 5% of the votes that may be cast on the resolution on a poll.
option and performance rights holders do not have voting rights.
96
CAtApult GRoup InteRnAtIonAl ltD
SHAREHOLDER INFORMATION (CONTINUED)
5. DISTRIBUTION SCHEDULE IN EACH CLASS OF EQUITY SECURITIES
Ordinary shares
Range (size of holding)
1–1,000
1,001–10,000
10,001–100,000
100,001 and over
Employee options and performance rights
Range (size of holding)
1–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total
holders
2,066
3,699
Number
of Shares
1,157,004
14,489,711
767
74
20,275,490
154,972,911
Total
holders
Number
of Shares
0
31
59
14
0
281,001
2,308,351
6,125,019
%
0.6
7.6
10.6
81.2
%
0.0
3.2
26.5
70.3
6. UNMARKETABLE PARCELS
number of holders holding less than a marketable parcel of the Company’s main class of securities
(in this case, fully paid ordinary shares) based on the closing market price at $1.095.
Minimum $500.00 parcel (at $1.095 per share)
Number
of holders
798
AnnuAl RepoRt 2019
97
7. 20 LARGEST SHAREHOLDERS
the 20 largest holders of ordinary shares and number of ordinary shares and percentage
of capital held by each are follows.
Rank Shareholder
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
one Managed Investment Funds
Manton Robin pty ltd
Charlaja pty ltd
HSBC Custody nominees (Australia) limited
Bnp paribas nominees pty ltd
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