Annual Report 2O24
Acknowledgement of Country
Atturra acknowledges the Traditional Custodians of Country throughout Australia and their connections to Land, Sea
and Community. We pay our respects to Elders past and present and extend that respect to all First Nations Peoples
across Australia and the Torres Strait Islands.
Contents
Letter to Shareholders
2
Business Overview
4
Client Showcase
6
Board of Directors and Key Management
8
ESG Highlights
10
General Information
12
Directors’ Report
13
Auditor’s Independence Declaration
31
Financial Report
32
Notes to the Consolidated Financial Statements
37
Consolidated Entity Disclosure Statement
84
Directors’ Declaration
86
Independent Auditor’s Report
87
Shareholder Information
92
Corporate Directory
95
Atturra Limited ABN 34 654 662 638
We’ll lead
you there.
Atturra Annual Report 2024
1
I’m proud to share our achievements
over the last 12 months in Atturra’s
Annual Report.
Key Milestones
One of Atturra’s key growth areas is continuing to expand
our service offerings and industry position through
acquisitions. Atturra completed the acquisitions of
Silverdrop in August 2023, Sabervox Pty Ltd (Sabervox) in
September 2023, and Cirrus Networks Holdings Limited
(Cirrus) in December 2023.
Whilst Silverdrop added specialist capability in HR and
payroll services, the Cirrus and Sabervox acquisitions
have significantly boosted Atturra’s managed services
capability and collectively this has strengthened the
foundation on which our industry and technology
strategies are built. Together they have changed Atturra’s
revenue mix, significantly increasing the share of
predictable, recurring revenue.
Our applications and infrastructure expertise and PMO
capability enabled us to win a strategic multi-year deal in
the mining and resources sector, and this is expected to
generate $30 million in revenue over the next three years.
Our strength in the local government sector enabled us
to win a transformational deal valued at $8 million over
three years.
We also signed over 40 new federal government
contracts across multiple departments and agencies
including Departments of Defence, Home Affairs,
Finance, and Treasury, as well as the Australian Signals
Directorate, Australian Criminal Intelligence Commission
and Australian Financial Security Authority, showing
confidence in Atturra’s sovereign capabilities.
Financial Highlights
We’re extremely proud that even with the difficult market
in Canberra, Atturra has managed to again overachieve
our minimum benchmark of 20% revenue growth and
10.5% underlying EBITDA. Atturra has delivered FY24
revenue of $243.4 million, an increase of 36.5% compared
to the pcp. Underlying EBITDA of $25.5 million is in line
with previous guidance. This strong revenue growth
reflects the successful integration of acquisitions and
is a testament to Atturra’s ability to continue to execute
against its strategy. Statutory EBIT of $14.1 million, down
15% on pcp primarily due to an increase in one‑off M&A
costs and acquisition-related amortisation compared
to pcp.
In fact, since our listing on the ASX in 2021, we have
exceeded our annual growth target of 20% and
underlying EBITDA of 10.5% each year and continue to
attain or outperform this key growth promise.
Letter to Shareholders
Atturra Annual Report 2024
2
Focus on our People
Our vision of being Australia’s leading advisory and IT
solutions provider continues to gain traction. Our total
employee base is now more than 900 team members,
and I’m pleased to see many high performing teams
amongst this base across various areas of the business.
I’m proud of how all employees have embraced our
One Atturra approach and culture. We have successfully
integrated the managed services acquisitions into
one strong-performing business unit, and our people’s
resilience and adaptability have enabled the rapid scale
of our managed services capabilities.
As we expand, so does the diversity of our workforce —
enriching our business through different experiences and
perspectives. Through multiple initiatives, we strive to
promote gender equality, diversity and inclusion within
Atturra. Our efforts in this area have seen us win a Merit
Award in the TechDiversity Awards business category
this year, and saw us receive two finalist nominations in
the Women in ICT Awards, in the Innovation and Shining
Star categories.
Integrating AI into our solutions
We recognise the value of all forms of AI capabilities
and are acting on the opportunity it brings to improve
business outcomes and community benefits. We are
working closely with our technology partners to integrate
and optimise AI models, data and infrastructure to deliver
solutions to our clients that accelerate time to value.
Progressing towards our vision
We remain steadfast in our goal to become Australia’s
leading advisory and IT solutions provider, with high
engagement across technology, industries, employees,
and clients.
Our industry strategy is to focus on:
• Expanding into industries with a high barrier to entry,
for example, Defence, requiring security clearances,
and driving client retention.
• Industries without a clear market leader so that Atturra
can become a service provider of choice. Specifically,
Manufacturing, Local Government, and Education,
where we rapidly grew to 300 schools in H1 FY24.
• Building scale through high-growth industries to
develop sustainable and long-term relationships.
Our technology strategy is to focus on:
• High-growth technologies so we can grow in lockstep
with them. For example, Atturra has the largest team
of onshore Boomi consultants and is the number one
Boomi Partner APJ.
• Becoming the dominant provider of specialist
technologies such as webMethods, OpenText,
and QAD. For example, we are the only ANZ-based
OpenText platinum Certified Partner.
• Expanding client adoption of AI and other smart
technologies to reduce data management costs.
Looking ahead
The pivot to managed services is set to increase the
number of multi-year deals, meaning we can build
stronger client relationships and have a higher chance
of securing wins in the Business Applications space. This
will further increase the share of predictable, recurring
revenue and validate the inherent strength and relevance
of our strategy.
Our recent acquisition of Brisbane-based advisory
business Exent is also set to provide great opportunities.
It will allow us to move beyond the challenging Canberra
market and have a national presence. Instead of relying
on defence and government work, Atturra will be able to
secure advisory work in the commercial sector.
Thank you for your support and for joining us in another
year of transformational change for Atturra. We look
forward to continuing to build our exciting future together.
Shan Kanji
Chairman
Atturra Annual Report 2024
3
21%
23%
11%
13%
18%
6%
4%
5%
Atturra is an Australian, ASX-listed advisory and IT
solutions business. We’re headquartered in Sydney and
have over 900 employees across Australia, New Zealand,
Singapore and Hong Kong. We offer end-to-end digital
transformation services for our clients.
Partnering with other leading global technology
providers, we offer scalable, expert solutions. Atturra helps
clients see exciting possibilities through technologies that
work today and into the future.
Business
Overview
Key Acquisitions
August 2023
• Silverdrop Assets &
Business Acquisition
September 2023
• Sabervox Pty Ltd
December 2023
• Cirrus Networks
Holdings Limited
Awards
OpenText
• APAC Regional
Partner of the Year
Smartsheet
• APJ MVP
Mimecast
• Australian Acceleration
Partner of the Year
HPE
• Service Partner of the
Year
HP
• Education Partner of the
Year
AFR
• Australian Financial
Review Fast 100 List
Boomi
• APJ Partner of the Year
• ANZ Partner of the Year
• APJ Practice Excellence
Partner of the Year
Pure Storage
• APJ Partner of the Year
Key Industries
Defence
Federal & State
Government
Financial
Services
Education
Local
Government
Manufacturing
Utilities
Resources
2023-24 Highlights
■ Defence and Federal Government
■ State and Local Government
■ Utilities
■ Financial Services
■ Manufacturing
■ Education
■ Energy and Resources
■ Other
Client Metrics
Client Metrics FY24
Revenue by Industry
Atturra Annual Report 2024
4
Major Partnerships
MARKET SIZE
$48.8 billion
Estimated IT services spend
in Australia in 2024
STAFF
900+
Employees
SECURITY
CLEARANCE
300+
Number of security-cleared staff
NEW CLIENTS
80+
New clients during FY24
Atturra’s Annual Reporting suite includes:
2024 full-year financial results
Corporate governance documents
2024 Sustainability Report
Atturra Annual Report 2024
5
Bass Coast Shire Council
Atturra helped progressive regional council, Bass
Coast Shire advance its transformation strategy
through a commercially competitive, high-quality
IT solutions partnership.
Since 2017, Atturra’s local support has enabled the
council to adapt and respond to change and challenges
while ensuring the best value for their taxpayers.
Infrastructure, systems and processes have been
uplifted, ICT management and governance has been
enhanced, and visibility of their environment has
been improved. Atturra’s Managed Services supports
and maintains reliable and cost-effective computing
systems that reduce the risk of bugs and cyber breaches.
Brisbane Grammar School
Brisbane Grammar School aspires to be the leading
school for boys in Australia, and to achieve this they
have a strong digital transformation agenda. A big
part of this agenda is the work Atturra have been doing
with the school in delivering a new Student Information
System (SIS), called Scholarion.
It’s the ultimate digital assistant for their school, a
platform that organises and manages all the important
information about their students, teachers, and
school activities in one easy-to-use system. The new
SIS will replace a legacy, on-premise system housing
42 bespoke applications, which couldn’t provide them
with up-to-date and reliable data.
As well as supporting Brisbane Grammar’s strategic
imperative around digital transformation and their
growth agenda, it will allow them to remain competitive
and enhance the collaboration and productivity of
their people. The school is working with Atturra to offer
the SIS modules to other educational institutions.
Schools that lack the resources to develop their own
SIS, but still need to streamline operations and ease
the administrative load on their educators.
“
The new SIS is a key anchor for
our growth and digital innovation.
Atturra is a valuable partner, and
it’s great to see them meeting our
set delivery timeframes for services
and solutions that will underpin our
SIS and digital ways of working for
many years to come.
”
Alexis Hill
Chief Information Officer
Brisbane Grammar School
Client Showcase
“
We value the Atturra teams’ in-depth
knowledge and retained IP of our
environment. It enables us to reduce
our commercial and delivery risk.
Atturra’s client-first attitude, agility and
responsiveness to our requests have
only strengthened the relationship
over the years. They are an asset to our
team and give us confidence we can
deliver on our responsibilities to the
citizens of Bass Coast Shire.
”
Keith Ludowyk
Manager Transformation and
Technology, Bass Coast Shire Council
Atturra Annual Report 2024
6
Synergy
Western Australia’s largest integrated electricity
generator and energy retailer has been able to
improve its user experience with Atturra’s Award-
Winning OpenText solution.
Through a creative and collaborative approach,
Atturra combined the management of over 250,000
drawings and technical documents into one system
– OpenText. The team created prebuilt searches to
improve searchability and then applied filters within
the OpenText environment. Because the solution was
simple and effective, no complex development or
system training was required.
The drawing portal solution has enabled Synergy to
work more efficiently across sites, improving cross-
collaboration efforts. The experience for daily onsite
users has been dramatically enhanced, and the
solution has been embraced by all stakeholders,
particularly Synergy’s site leadership teams who
supported this innovative project from the outset.
“
Our partner Atturra helped us implement
a drawing management portal. It turned
out the solution was using the OpenText
product out of the box.
”
Debbie Cutts
Manager of Enterprise Information
Management, Synergy
Atturra Annual Report 2024
7
Board of Directors
and Key Management
Shan Kanji
Non-Executive Chairman /
Non-Independent
Shan Kanji is the Non-Executive
Chairman of Atturra. Shan has
spent more than 15 years as a
senior business leader with a
proven track record of running scale
diversified and complex industrial
and technology businesses in
Australia and New Zealand. He has
extensive experience with start-ups
in technology, property development,
manufacturing and other sectors.
Shan was instrumental in the
formation of, and growth in, Atturra
and its predecessor organisations.
Shan is on the Board of the Australian
Steel Institute, the nation’s peak
body representing the Australian
manufactured steel supply chain.
Shan holds a Bachelor of Laws and
a Bachelor of Commerce from the
University of NSW and is a practising
lawyer and the Principal of Kanji & Co.
Stephen Kowal
CEO & Executive Director /
Non‑Independent
Stephen Kowal is the CEO and
Executive Director of Atturra. Stephen
has been the CEO since early 2019
and, prior to his appointment, has
held senior executive and non-
executive positions in the IT and
consultancy sectors since 2001. Prior
to joining Atturra, Stephen led sales
for the Australian and New Zealand
division for DXC Technology, a US
multinational business-to-business
IT services provider.
Stephen is highly experienced across
the insurance, banking, government,
and natural resources sectors,
holding several Chief Information
Officer roles within the US, Chile,
and Australia.
Stephen holds a Bachelor of
Science from the University of NSW,
a Graduate Diploma in Applied
Finance and Investment from the
Securities Institute of Australia
(FINSIA), and Diploma of Insurance
from the Australian and New Zealand
Institute of Insurance and Finance
(ANZIF). ANZIF awarded Stephen the
PC Wickens award in 2015.
Stephen is a Fellow of the
Governance Institute of Australia
(GIA), Fellow of FINSIA, Senior
Associate of ANZIF and a member of
the Australian Institute of Company
Directors (AICD).
Nicole Bowman
Non-Executive Director /
Independent
Nicole is an experienced leader, non-
executive director and lawyer whose
leadership career has spanned over
two decades across industries as
diverse as mining, finance, sport
and manufacturing, both in Australia
and internationally.
In addition to her executive and
legal experience, Nicole spent a
combined total of seven years as a
non-executive director of ASX-listed
mining and exploration companies
Blackthorn Resources Limited, and
Intrepid Mines Limited. During this
period Nicole chaired each of the
Audit and Risk Committee and the
Nomination and Remuneration
Committee in turn.
Nicole also spent 5 years on the
Board of the charity Dress for
Success Sydney Inc. and is the
founder of its Illawarra branch. In
2019 she was appointed the Australia
Day Ambassador for Wollongong in
recognition of her philanthropic work.
In 2019, Nicole established her own
leadership practice and designed
a bespoke leadership program,
focused on coaching and training
leaders and teams to enable them
to achieve exceptional results using
readily implementable and practical
tools, insights and skills.
Nicole holds a Bachelor of Economics
and Bachelor of Laws (Hons) from
the University of Sydney, a Graduate
Certificate in E-Commerce from the
University of New England and is a
member of the AICD.
Atturra Annual Report 2024
8
Jonathan Rubinsztein
Non-Executive Director /
Independent
Jonathan, a seasoned CEO with a
track record of building world class
global technology companies and
leading high-performance teams
in the technology sector, has been
a Non-Executive Director of Atturra
since 2021.
Jonathan is currently the Chief
Executive Officer at Nuix, an ASX-
listed global company and a leading
provider of investigative analytics
and intelligence software with a
vision of being a Force for Good and
Finding Truth in a Digital Age.
Previously, Jonathan was Managing
Director and CEO of Infomedia Ltd, an
ASX-listed SaaS company.
Prior to that role, Jonathan was
CEO and founding shareholder at
UXC Red Rock Consulting, where he
was instrumental in growing the
business from a start-up to over 700
people across 13 offices in Australia,
New Zealand, India, and Singapore.
Jonathan was also a Founder and
Director of RockSolid SQL, a company
that built monitoring and automated
data management software for over
18,000 databases globally.
Jonathan is an active member of
YPO, a Global Leadership Community
of CEOs and alongside his wife and
three daughters, dedicates holiday
time to working at the Missionvale
charity in South Africa.
Herb To
Chief Financial Officer
Herb To is the CFO of Atturra. He has
held CFO roles in the IT, Telecoms,
professional services and media
industries for over 25 years across
Australia, North America and the
South Pacific.
Over his career, Herb has been
the CFO of ASX-listed companies
and held divisional executive
positions with global multinational
corporations. As CFO at Kantar ANZ,
Herb oversaw the successful merger
of Kantar with the WPP AUNZ Data
Investment Management Group.
Herb is a Chartered Accountant, a
Chartered Professional Accountant,
and a Chartered Business Valuator.
He holds a Bachelor of Accounting
and Finance (Hons) from the
University of Waterloo and a
Graduate Diploma in Applied Finance
and Investment from the Securities
Institute of Australia (FINSIA).
Kunal Shah
Company Secretary
Kunal Shah is the Company
Secretary. Kunal has over 23 years
of financial experience in the
technology, manufacturing, and
construction industries. Kunal
has co-ordinated and assisted in
numerous corporate transactions
including acquisitions, divestments,
and business restructures.
Kunal holds a Bachelor of Commerce
from Gujarat University and a Master
of Business in Accounting from the
University of Technology, Sydney.
Kunal is an Affiliate member of the
Governance Institute of Australia.
Atturra Annual Report 2024
9
Ethics and
governance
We continue to integrate
our company values
throughout all business
areas, including newly
acquired businesses,
defining and clarifying
the behaviours we expect.
Our business operations
are supported by a strong
Corporate Governance
framework overseen by
the Board of Directors.
Employees have access
to tools for raising
concerns, and we conduct
regular internal audits to
ensure compliance.
People and culture
We have focused on
keeping our promises to
our people by uplifting our
organisational learning
and development and
empowering employees
to better manage and
track their career growth.
We’ve also become
more intentional about
workplace adjustments
that help employees feel
included and able to
perform at their best. Over
25% of employees have
voluntarily completed a
neurodiversity e-learning
module, which has led
to greater acceptance.
Our staff are 18% more
engaged in peer-to-
peer recognition and
collectively we have
saved 11% more on retail
purchases through our
Elevate discount portal.
Over the last 12 months, Atturra has continued on
its growth trajectory through both organic growth
and acquisitions of companies aligned to our
business strategy. An important part of this process
includes incorporating newly acquired businesses
into our ESG planning. This will enable us to remain
sustainably competitive, which is essential if
we want to remain at the forefront of Australia’s
technology industry.
Our sustainability behaviours are aligned to the
following five pillars:
1
2
ESG Highlights
Sustainability approach
Atturra Annual Report 2024
10
Protecting our
workplace
and clients
Atturra has doubled down
on Business Continuity and
Cyber Security by adopting
a Defence-in-Depth
strategy. This integrates
people, technology, and
operational capabilities,
layering multiple security
measures that protect
our users and assets and
adhere to frameworks such
as ISO 27001: Information
Security Management
Systems, and Essential
Eight. We have introduced
desktop cyber security
simulations for executives
and mandatory security-
specific training for
all employees.
Community support
Atturra exceeded its
goal of saving 200 lives
through blood and
plasma donations to the
Life Blood Bank. Across
five states, our collective
donations saved 270 lives.
We provided 13,700+ fresh
meals to people in need
as part of our initiative
with PonyUp for Good, an
Engagement Agency &
Social Enterprise. With the
number of employees
growing significantly
through acquisitions, we
also achieved our most
successful Cancer Council
Biggest Morning Tea
fundraising total to date.
Environmental
accountability
Atturra’s partnership
with PonyUp for Good
also resulted in 3,847 kgs
of e-waste saved from
landfill, with 20% of
technology reused. We’ve
also continued to progress
towards our carbon
offsetting and recycling
targets, with most of our
offices having NABERS
ratings of 4.5 to 5.5.
3
5
4
Atturra Annual Report 2024
11
General information
30 June 2024
The financial statements cover Atturra Limited and the entities it controlled at the end of, or during, the financial year
(Atturra Group). The financial statements are presented in Australian dollars, which is Atturra Limited’s functional and
presentation currency.
Atturra Limited is a listed public company limited by shares, incorporated, and domiciled in Australia. Its registered
office and principal place of business are:
Registered office
Principal place of business
Level 33, Aurora Place
Level 2
88 Phillip Street
10 Bond Street
Sydney NSW 2000
Sydney NSW 2000
A description of the nature of Atturra Group’s operations and its principal activities are included in the Directors’ report,
which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 23 August 2024.
The Directors have the power to amend and reissue the financial statements.
Atturra Annual Report 2024
12
Directors’ report
30 June 2024
The Directors present their report, together with the financial statements, on Atturra Group at the end of, or during, the
year ended 30 June 2024.
Directors
The following persons were Directors of Atturra Limited during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Shan Kanji – Non-Executive Chairman
Stephen Kowal – Executive Director and Chief Executive Officer
Nicole Bowman – Independent Non-Executive Director
Jonathan Rubinsztein – Independent Non-Executive Director
Principal activities
Atturra Group provides whole-of-organisation technology solutions covering service lines of advisory, managed
services, business applications, data & integration, cloud services, change management, managed control solutions
and industry engagement.
Dividends
No dividends were paid, recommended, or declared during the current financial year to Atturra Limited shareholders.
During the current financial year, a dividend of $265,000 (2023: $513,000) was paid to the minority shareholders of
Noetic Group Pty Ltd, with the remainder being paid to Atturra Holdings Pty Ltd and FTS NHC Pty Ltd that was eliminated
on consolidation.
Review of operations
Atturra Group is a leading Australian technology solutions and managed services business. It provides expertise across
a broad range of specialist in‑demand IT areas to deliver solutions to clients. Atturra Group uses transformative, market
leading technologies and business applications that enable digital transformations. Atturra Group engages over
900 consultants, IT and support personnel in Australia, New Zealand, Singapore, and Hong Kong.
Atturra Group has two key strategies, a technology strategy, and an industry strategy. The technology strategy is
to focus on high growth technologies or technologies where it can have a market dominant position. The industry
strategy is to focus on industries in which there is either a high barrier to entry or there is no clear market leader. These
strategies are supported by an end-to-end IT managed services capability, ensuring that Atturra Group can manage
the entire customer technology lifecycle.
The profit for Atturra Group after providing for income tax and non-controlling interest was $9,784,000 (30 June 2023:
$10,241,000).
Shareholders’ equity attributable to owners of Atturra Limited increased by $71,125,000 from 30 June 2023 to $150,186,000
as at 30 June 2024 and Atturra Group had cash on hand of $60,639,000 as at 30 June 2024 (2023: $44,250,000). Atturra
Limited has 312,770,789 shares on issue as at 30 June 2024 (2023: 232,524,941).
Underlying earnings before interest, taxation, depreciation, and amortisation and other adjustments as disclosed
(Underlying EBITDA) is a financial measure which is not prescribed by the Australian Accounting Standards Board
(AASB) and represents the profit under AASB adjusted for specific items, including capital raising, share based
payments, and merger and acquisition (M&A) transaction costs integration and retention costs. The Directors
consider Underlying EBITDA to be one of the key financial measures of Atturra Group.
Atturra Annual Report 2024
13
Directors’ report
The following table summarises key reconciling items between statutory profit after-tax and Underlying EBITDA:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Profit after income tax
9,731
10,643
Add: Interest expense
1,823
1,110
Add: Income tax expense
3,332
5,308
Less: Interest income
(768)
(490)
Reported EBIT
14,118
16,571
Share-based payments
1,086
1,155
Revaluation of contingent consideration
(506)
–
M&A transaction and Capital raising costs
2,061
570
Gain on bargain purchase
(347)
–
M&A related retentions
692
399
Integration cost
1,926
–
Underlying EBIT
19,030
18,695
Depreciation
3,950
1,846
Amortisation
2,482
208
Depreciation included in cost of sales
–
260
Underlying EBITDA
25,462
21,009
Business risks
A summary of material business risks that could adversely affect Atturra Group’s financial performance and growth
potential in future years include:
Ability to attract and retain clients
Atturra Group may not be able to retain existing clients when contract terms expire, or otherwise retain those clients
to use Atturra Group’s service offerings. Atturra Group may not be able to attract new clients at the rate, over time
frames or with the pricing revenues and costs it currently expects or have experienced historically. Atturra Group
ensures regular communications with clients and the assigned representative regularly connects with clients to ensure
satisfaction with services, in addition all the major businesses have key Executive General Managers that overlook
service delivery to ensure satisfaction. In relation to growth, Atturra Group runs a centralised process to coordinate
sales to ensure that the Group actively looking to grow at all times. With the centralised oversight of sales, Atturra Group
can continually react to market changes in both composition of services but also in prices in the market.
Competitive market and changes to market trends
Atturra Group operates in a competitive market with a number of other companies that provide similar IT services.
There is a risk that competitors could enter the market who offer more cost-efficient services, develop new software
or have significantly greater resources. Atturra Group continually monitors the competitive landscape for emerging
technologies that may compete with existing offerings to ensure that Atturra Group can change the go to market if
required. The risks Atturra Group faces are lower than the general market given the majority of the revenue in Atturra
Group is a result of being a leader in certain specialisations, so the risk of disruption is minimised as any new market
entrant would have significant resourcing challenges.
Atturra Annual Report 2024
14
Reliance on third party technology
Atturra Group relies on the success of third-party software for the development, implementation and operation of its
service offerings. Atturra Group’s operations would be materially impacted if existing third-party suppliers no longer
made their software and technologies available or materially increase their pricing. Although Atturra Group has
exposure to changes in directions of third party technology providers, and this exposure is material, it is likely any such
change would provide us with a long lead time to react and find an alternative partner/product and it is likely that we
would be well positioned to assist the client to transition to a new technology stack.
Cyber security and Information technology infrastructure
There is a risk that security and technology precaution measures taken by Atturra Group will not be sufficient to prevent
unauthorised access to the Atturra Group’s networks, systems, and data bases. Atturra Group monitors its environment
on a continuous basis to ensure security compliance, and in the event of an attack, Atturra Group has an advanced
backup and recovery solutions.
Significant changes in the state of affairs of Atturra Group during the current financial year
On 20 July 2023, Atturra Limited announced to the ASX that a wholly owned subsidiary, Galaxy 42 Pty Ltd, had entered
into a binding sale and purchase agreement to acquire the business and certain assets of Silverdrop Education Pty Ltd,
a specialist HR and payroll consulting firm. The maximum purchase consideration is $3,300,000. $2,120,000 was settled
on completion, $500,000 of Atturra Limited shares were issued to the Silverdrop vendors (577,367 shares at an issue
price $0.87) and there is additional earn out consideration of up to $600,000 in cash subject to Silverdrop achieving
performance hurdles based on audited EBIT results for the 10 months to 30 June 2024. The purchase consideration
was funded from the Westpac debt facility. The transaction was completed on 30 August 2023.
On 6 September 2023, Atturra Limited announced to the ASX that a wholly owned subsidiary, Atturra Holdings
Pty Ltd, had entered into a binding sale and purchase agreement to acquire Sabervox Pty Ltd (Sabervox) and
its controlled entities, a managed IT services provider in regional NSW. The maximum purchase consideration is
$7,500,000. $4,000,000 was settled on completion in cash with a working capital adjustment of $148,000 resulting in
a net cash payment of $3,852,000, $1,000,000 of Atturra Limited shares were issued to the Sabervox vendors (1,176,471
shares at an issue price $0.85) and there is additional earn out consideration of up to $2,500,000 in cash subject to
Sabervox achieving performance hurdles based on audited EBITDA results for the 12 months ended 30 September
2024. The purchase consideration was funded from internal cash reserves. The transaction was completed on
29 September 2023.
On 11 September 2023, Atturra Limited announced to the ASX that a wholly owned subsidiary, Atturra Holdings Pty
Ltd and Cirrus Networks Holdings Limited (Cirrus) and its controlled entities had entered into a binding scheme
implementation deed under which Atturra Holdings Pty Ltd will acquire 100% of the shares in Cirrus, pursuant to a
scheme of arrangement. Cirrus is a managed service and IT solutions provider with a presence primarily in ACT, WA
and Victoria. On 15 September 2023, a revised offer of 6.3 cents per Cirrus share was made to Cirrus shareholders
of cash and Atturra Limited shares resulting in a total purchase consideration of $58,617,000. Of the total purchase
consideration, $44,568,000 was settled in cash and $14,048,900 was settled by the issue of new Atturra Limited shares
(15,937,505 shares at an issue price of $0.8815). The purchase consideration was funded from debt funding, internal
cash reserves and the issuance of new shares. The transaction was completed on 11 December 2023.
On 12 December 2023, Atturra Limited announced to the ASX an underwritten capital raising of approximately
$50 million (Capital Raising) at an issue price of $0.80 per Atturra Limited share (Issue Price) comprising a 1 for 4 fully
underwritten accelerated pro-rata non-renounceable entitlement offer (‘Entitlement Offer’ or ‘Offer’) to existing Atturra
Limited shareholders. The Capital Raising was split up into two components:
• an accelerated institutional component (Institutional Entitlement Offer); and
• a retail component (‘Retail Entitlement Offer’).
The Institutional Entitlement Offer was completed on 19 December 2023 and resulted in 48,688,810 fully paid ordinary
shares (New Shares) being issued. The New Shares issued under the Institutional Entitlement Offer rank equally with
existing Atturra Limited shares on completion of the Capital Raising.
Post transaction costs, approximately $38,170,000 was raised from the Institutional Entitlement Offer. Post the
Institutional Entitlement Offer, Atturra Limited had 298,905,094 shares on issue.
Atturra Annual Report 2024
15
Directors’ report
The Retail Entitlement Offer was completed on 30 January 2024 and resulted in 13,865,695 fully paid ordinary shares
being issued. The New Shares issued under the Retail Entitlement Offer rank equally with existing Atturra Limited shares
on completion of the Capital Raising.
Post transaction costs, approximately $10,865,000 was raised from the Retail Entitlement Offer. Post the Retail
Entitlement Offer, Atturra Limited has 312,770,789 shares on issue.
There were no other significant changes in the state of affairs of the Atturra Group during the financial year.
Matters subsequent to the end of the financial year
On 15 July 2024, Atturra Limited announced to the ASX that a wholly owned subsidiary, Atturra Advisory Pty Ltd
entered in a binding sale and purchase agreement to acquire the business of Exent Holdings Pty Ltd (Exent) and
its controlled entities, an advisory and consulting firm specialising in business transformation in technology and
data. The maximum total purchase consideration is $8,000,000, with $6,000,000 payable upfront in cash and up
to $2,000,000 for earn‑out/post-completion consideration, subject to Exent achieving performance hurdles for
FY25. The transaction was completed on 31 July 2024. At the time of signing of the Annual Report the Purchase Price
Allocation is yet to be completed.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly
affect Atturra Group’s operations, the results of those operations, or Atturra Group’s state of affairs in future
financial years.
Likely developments and expected results of operations
Information on likely developments in the operations of Atturra Group and the expected results of operations have
not been included in this report because the Directors believe it would be likely to result in unreasonable prejudice to
Atturra Group.
Environmental regulation
Atturra Group is not subject to any significant environmental regulation under Australian Commonwealth or State law.
Information on Directors
Name:
Shan Kanji
Title:
Non-Executive Chairman
Qualifications:
Shan holds a Bachelor of Laws and a Bachelor of Commerce from the University
of NSW.
Experience and expertise:
Shan has spent more than 20 years as a senior business leader with a proven
track record of running scale diversified and complex industrial and technology
businesses in Australia and New Zealand. He has extensive experience with
start‑ups in technology, property development, manufacturing, and other sectors.
Shan is a practising lawyer and the Principal of Kanji & Co.
Other current directorships:
Spirit Technology Solutions Limited (ASX: ST1) – appointed 31 January 2024
Former directorships
(last 3 years):
None
Special responsibilities:
Member of the Audit and Risk Committee and Nominations and Remuneration
Committee
Interests in shares:
173,909,207 ordinary shares
Interests in options:
None
Interests in performance rights:
None
Contractual rights to shares:
None
Atturra Annual Report 2024
16
Name:
Stephen Kowal
Title:
Chief Executive Officer and Executive Director
Qualifications:
Stephen holds a Bachelor of Science from the University of NSW, a Graduate
Diploma in Applied Finance and Investment from the Securities Institute of
Australia, and Diploma of Insurance from Australian and New Zealand Institute of
Insurance and Finance (ANZIF).
Experience and expertise:
Prior to his appointment as CEO for Atturra Group, Stephen has held senior
executive and non-executive positions in the IT and the consultancy sectors since
2001. Stephen is highly experienced across the insurance, banking, government,
and natural resources sectors, holding several Chief Information Officer roles
within the United States, Chile, and Australia.
Other current directorships:
None
Former directorships
(last 3 years):
None
Special responsibilities:
CEO and Executive Director
Interests in shares:
7,095,318 ordinary shares
Interests in options:
None
Interests in performance rights:
1,817,058
Contractual rights to shares:
None
Name:
Nicole Bowman
Title:
Independent Non-executive Director
Qualifications:
Nicole holds a Bachelor of Economics and Bachelor of Laws (Hons) from the
University of Sydney and is a member of the AICD.
Experience and expertise:
Nicole is an experienced leader, non-executive director and former lawyer whose
leadership career has spanned over 22 years across industries as diverse as
mining, finance, sport and manufacturing, both in Australia and internationally.
Other current directorships:
None
Former directorships
(last 3 years):
None
Special responsibilities:
Chair of the Audit and Risk Committee and Chair of the Nomination and
Remuneration Committee
Interests in shares:
141,667 ordinary shares
Interests in options:
None
Interests in performance rights:
None
Contractual rights to shares:
None
Atturra Annual Report 2024
17
Directors’ report
Name:
Jonathan Rubinsztein
Title:
Independent Non-executive Director
Experience and expertise:
Jonathan is the Group Chief Executive at Nuix, which is an ASX Listed Company and
a leading provider of investigative analytics and intelligence software with a vision
of “finding truth in the digital age”.
Other current directorships:
Nuix Limited – appointed 6 December 2021
Former directorships
(last 3 years):
Infomedia Ltd – appointed 14 March 2016, resigned 29 October 2021
Special responsibilities:
Member of the Audit and Risk Committee and Nomination and Remuneration
Committee
Interests in shares:
6,075,055 ordinary shares
Interests in options:
None
Interests in performance rights:
None
Contractual rights to shares:
None
‘Other current directorships’ quoted above are current directorships for listed entities only and excludes directorships of
all other types of entities, unless otherwise stated.
‘Former directorships (last three years)’ quoted above are directorships held in the last three years for listed entities
only and excludes directorships of all other types of entities, unless otherwise stated.
Company secretary
Kunal Shah is the company secretary. Kunal has over 23 years’ financial experience in the technology, manufacturing,
and construction industries. Kunal has coordinated and assisted in numerous corporate transactions including
acquisitions, divestments, and business restructures.
Kunal holds a Bachelor of Commerce from Gujarat University and a Master of Business in Accounting from the
University of Technology, Sydney. Kunal is an Affiliate member of the Governance Institute of Australia.
Meetings of Directors
The number of meetings of Atturra Limited’s Board of Directors (Board) and of each Board committee held during the
year ended 30 June 2024, and the number of meetings attended by each Director were:
Full Board
Nomination and
Remuneration Committee
Audit and Risk Committee
Attended
Held
Attended
Held
Attended
Held
Shan Kanji
13
13
4
4
7
7
Stephen Kowal*
13
13
–
–
4
7
Nicole Bowman
13
13
4
4
7
7
Jonathan Rubinsztein
13
13
4
4
7
7
*
Attended the Audit and Risk Committee meetings as a non-member.
Held: represents the number of meetings held during the time the Director held office or was a member of the
relevant committee.
Note: The meetings of the Directors above relate to the meetings that took place during the year ended 30 June 2024.
Atturra Annual Report 2024
18
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for Atturra Group, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the entity, directly or indirectly, including all Directors (KMPs).
The remuneration report is set out under the following main headings:
• Principles used to determine the nature and amount of remuneration
• Details of remuneration
• Service agreements
• Share-based compensation
• Additional disclosures relating to KMPs
Principles used to determine the nature and amount of remuneration
The objective of Atturra Group’s executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic
objectives and the creation of value for shareholders, and it is considered to conform to the market best practice for
the delivery of reward. The Board ensures that executive reward satisfies the following key criteria for good reward
governance practices:
• competitiveness and reasonableness;
• acceptability to shareholders;
• performance linkage/alignment of executive compensation; and
• transparency.
The Nomination and Remuneration Committee is responsible for determining and reviewing remuneration arrangements
for its Directors and executives. The performance of Atturra Group depends on the quality of its directors and executives.
The remuneration philosophy is to attract, motivate and retain high performance and high-quality personnel.
The Nomination and Remuneration Committee has structured an executive remuneration framework that is market
competitive and complementary to the reward strategy of Atturra Group.
The reward framework is designed to align executive reward to shareholders’ interests. The Board has considered that it
should seek to enhance shareholders’ interests by:
• having economic profit as a core component of plan design;
• focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and
delivering constant or increasing return on assets as well as focusing the executive on key non-financial drivers of
value; and
• attracting and retaining high calibre executives.
Additionally, the reward framework should seek to enhance executives’ interests by:
• rewarding capability and experience;
• reflecting competitive reward for contribution to growth in shareholder wealth; and
• providing a clear structure for earning rewards.
In accordance with best practice corporate governance, the structure of non-executive Director and executive Director
remuneration is separate.
Atturra Annual Report 2024
19
Directors’ report
Non-executive Directors’ remuneration
Fees and payments to non-executive Directors reflect the demands and responsibilities of their role. Non-executive
Directors’ fees and payments are reviewed annually by the Nomination and Remuneration Committee, except in
relation to Shan Kanji who was not paid any Directors fees in the current or previous financial year. The Nomination
and Remuneration Committee may, from time to time, receive advice from independent remuneration consultants
to ensure non-executive Directors’ fees and payments are appropriate and in line with the market. Non-executive
Directors do not receive performance rights, share options or other incentives.
The total aggregate amount provided to all non-executive Directors of Atturra Limited for their services as Directors
must not exceed in any financial year the amount fixed by Atturra Limited in a general meeting. This amount is fixed at
$900,000 per annum.
Executive remuneration
Atturra Group aims to reward executives based on their position and responsibility, with a level and mix of remuneration
which has both fixed and variable components.
The executive remuneration and reward framework has four components:
• base pay and non-monetary benefits;
• short-term performance incentives;
• long-term share-based payments performance incentives; and
• other remuneration such as superannuation and long service leave.
The combination of these comprises the executive’s total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually
by the Nomination and Remuneration Committee based on individual and business unit performance, the overall
performance of Atturra Group and comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to Atturra Group and provides additional value to the executive.
The short-term incentives (STI) program is designed to align the targets of the business units with the performance
hurdles of executives. STI payments are granted to executives based on annual targets being achieved for a
combination of:
i. Consolidated revenue for Atturra Group,
ii. Revenue controlled by the relevant executive,
iii. Consolidated EBIT for Atturra Group, and
iv. EBIT controlled by the relevant executive.
These financial measures have been chosen as they align executive effort to key drivers of entity profitability and
growth which are considered to be drivers of shareholder value. Financial methods of assessing the achievement of
performance conditions have been selected because they are easily measured and establish clear transparent targets.
The long-term incentives (LTI) include share-based payments. Performance rights are awarded to executives based on
long-term incentive measures assessed over periods in excess of 12 months.
Atturra Annual Report 2024
20
Consolidated entity performance and link to performance
Performance rights are issued by Atturra Limited to KMPs and other executives under its long-term incentive plan at
the discretion of the Board. The purpose of this incentive plan is to align the remuneration of executives and senior
management with shareholder value, while retaining key executives.
The key metrics that are considered for the creation of shareholder wealth by KMPs and other executives are revenue
growth, Underlying EBIT growth and total shareholder return of Atturra Group. Key metrics for the financial years since
Atturra Limited has been listed are set out below:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Revenue
243,352
178,331
Underlying EBIT
19,030
18,695
Underlying EBITDA
25,462
21,009
The share price of Atturra Limited on IPO was $0.50 and increased to $0.73 at 30 June 2024.
The long-term incentive plan offers performance rights in Atturra Limited subject to the satisfaction of the relevant
performance milestones, as well as service and other conditions, at the relevant vesting date.
The performance rights in place for KMPs as at 30 June 2024 are set out below:
Plan
Issued to
Grant
date
Date of
record
Total
performance
rights
granted
Converted
Forfeited
Total
balance at
the end of
the financial
year
2022 LTI award
KMP – Stephen Kowal
22/12/2021
31/12/2024
375,000
–
–
375,000
2022 LTI award
KMP – Stephen Kowal
22/12/2021
31/12/2025
375,000
–
–
375,000
2023 LTI award
KMP – Stephen Kowal
07/10/2022
31/12/2025
311,307
–
–
311,307
2023 LTI award
KMP – Stephen Kowal
07/10/2022
31/12/2026
311,307
–
–
311,307
2023 LTI award
KMP – Stephen Kowal
13/10/2023
15/12/2026
222,222
–
–
222,222
2023 LTI award
KMP – Stephen Kowal
13/10/2023
15/12/2027
222,222
–
–
222,222
2023 LTI award
KMP – Herbert To
21/10/2023
01/11/2026
39,100
–
–
39,100
1,856,158
–
–
1,856,158
2022 LTI award: The average fair value of the performance rights at grant date was $0.29 each.
2023 LTI award: The average fair value of the performance rights at grant date was $0.38 each.
2023 LTI award: The average fair value of the performance rights at grant date was $0.48 each for Stephen Kowal
and $0.81 for Herbert To.
Each performance right is issued by Atturra Limited and converts into one ordinary share in Atturra Limited. If the
employment and performance criteria are satisfied, the relevant Executive will be allocated shares on the date of
record. Performance rights carry no dividend or voting rights. For performance rights to convert, the relevant Executive
must remain employed or engaged by Atturra Group at the relevant date of record and the relevant performance
milestones must be satisfied.
No price is payable on conversion of performance rights. If the minimum set value for each performance milestone is
not satisfied on a particular date of record, the relevant performance rights will lapse. The performance hurdles were
chosen to align with Atturra Group’s strategy and shareholder interests and best reflect the key financial performance
metrics of Atturra Group and strike an appropriate balance between growth and long-term profitability.
Atturra Annual Report 2024
21
Directors’ report
The key vesting conditions for the LTI awards for KMPs are:
Stephen Kowal
2022 LTI award
• For the financial year ended 30 June 2022, Atturra Group must meet or exceed the Prospectus EBIT forecast.
This vesting condition has been met.
• As at the date of release of the annual audited results for 30 June 2024, the total shareholder return (dividends
plus or minus increase in share price) must be 78% or greater than the IPO issue price, based on the 30-day volume
weighted average price of Atturra Limited ordinary shares for the 30 days before the date of announcement of the
30 June 2024 financial results.
• Stephen Kowal must remain in the employment of Atturra Group and if the vesting conditions are met,
375,000 shares are scheduled to be issued in December 2024 and 375,000 shares are scheduled to be issued in
December 2025.
2023 LTI award
The number of performance rights has been calculated by dividing $400,000 (being Stephen Kowal’s on target long
term incentive plan remuneration per annum) by 64.2453 cents, being the rounded volume weighted average price
(VWAP) of Atturra Limited’s shares on 16 August 2022, being the date of preparation of the agreement relating to
Stephen Kowal’s long term incentive.
The percentage (if any) of the 622,614 performance rights that will vest is to be determined in accordance with the total
shareholder return post 16 August 2022 (Reference Date) taking into account:
a. any dividends paid per Share since the Reference Date; plus or minus
b. any increase or decrease in the Atturra Limited share price from:
i. 64.2 cents per Share (being an agreed VWAP calculation as at the Reference Date); to
ii. Atturra Limited closing share price on the 5th trading day after the date of announcement of the 2025 annual results.
Shareholder return
Percentage of the 622,614 performance rights that will vest
≥ 33% – 42.3%
40%
≥ 42.4% – 52.0%
60%
≥ 52.1% – 62.1 %
80%
≥ 62.2%
100%
If the performance criteria are satisfied and Stephen Kowal remains in the employment of Atturra Group, he will be
entitled to be allocated shares, Atturra Limited will allocate:
• 311,307 shares by no later than 31 December 2025; and
• 311,307 shares by no later than 31 December 2026.
2023 LTI award
The number of performance rights has been calculated by dividing $400,000 (being Stephen Kowal’s on target long
term incentive plan remuneration per annum) by 90.0 cents, being the rounded volume weighted average price
(VWAP) of Atturra Limited’s shares on 10 August 2023, being the date of preparation of the agreement relating to
Stephen Kowal’s long term incentive.
Atturra Annual Report 2024
22
The percentage (if any) of the 444,444 performance rights that will vest is to be determined in accordance with the
total shareholder return post 10 August 2023 (Reference Date) taking into account:
a. any dividends paid per Share since the Reference Date; plus or minus
b. any increase or decrease in the Atturra Limited share price from:
i. 90.0 cents per Share (being an agreed 30 day VWAP calculation as at the Reference Date); to
ii. the 30-day VWAP for the Shares for the period of 30 trading days starting on the trading day after the date of
announcement of the FYE 2026 annual results.
Shareholder return
Percentage of the 444,444 performance rights that will vest
≥ 42%
25%
≥ 52%
50%
≥ 64 %
70%
≥ 77%
100%
If the performance criteria are satisfied and Stephen Kowal is otherwise entitled to be allocated shares, Atturra Limited
will allocate:
• 222,222 shares by no later than 31 December 2026; and
• 222,222 shares by no later than 31 December 2027.
c. Performance Criteria based on “market relative total shareholder return” – XTX
If less than 50.1% of the 444,444 Performance Rights vest by reference to the Total Shareholder Return Performance
Criteria, and Stephen Kowal is otherwise entitled to be allocated Shares (including a requirement that Stephen
Kowal is an Eligible Employee on the relevant allocation date), the Board will instead measure the Company’s
relative total shareholder return for the period commencing on the Start Reference Date and ending on the date of
announcement of the FYE 2026 annual results (Reference Period) by reference to the S&P/ASX All Technology Index
(XTX Index) (or any successor that the Board nominates if it ceases to be measured).
If the Company falls within the top 10% of the total shareholder returns of companies on the XTX Index for the
Reference Period, then 75% of the Performance Rights will vest and the Company will allocate:
• half of any Shares (which are entitled to be allocated) in December 2026; and
• the other half of any Shares (which are entitled to be allocated) in December 2027.
Herbert To
On 21 October 2023, Herbert To was granted 39,100 performance rights. The only performance criteria is continued
employment with the Atturra Group until 1 November 2026.
Consolidated entity performance and link to remuneration
Remuneration for KMP’s is directly linked to the performance of Atturra Group. A portion of cash bonus and incentive
payments are dependent on performance targets being met. The remaining portion of the cash bonus and incentive
payments are at the discretion of the Nomination and Remuneration Committee.
The Nomination and Remuneration Committee is of the opinion that the performance-based compensation will assist
in increasing shareholder wealth over the coming years.
Use of remuneration consultants
During the financial year ended 30 June 2024, Atturra Group did not engage a remuneration consultant to advise on
the remuneration package awarded to the Directors and KMPs.
Atturra Annual Report 2024
23
Directors’ report
Details of remuneration
Amounts of remuneration
Details of the remuneration of KMPs of Atturra Group are set out in the following tables.
The KMPs of Atturra Group consisted of the Directors of Atturra Limited:
• Shan Kanji (Non-Executive Chairman)
• Stephen Kowal (Executive Director and Chief Executive Officer)
• Nicole Bowman (Non-Executive Director)
• Jonathan Rubinsztein (Non-Executive Director)
And:
• Herbert To (Chief Financial Officer)
Changes since the end of the reporting period: None
Short-term benefits
Post-
employment
benefits
Long-term
benefits
30 June 2024
Cash
salary
and fees
$
Cash
bonus
$
Non-
monetary
$
Super-
annuation
$
Annual/
Long
service
leave
$
Share-
based
payments
Equity-
settled
$
Total
$
Non-Executive Directors:
Nicole Bowman
76,575
–
–
8,423
–
–
84,998
Jonathan Rubinsztein
70,000
–
–
1,925
–
–
71,925
Shan Kanji
–
–
–
–
–
–
–
Executive Director:
Stephen Kowal
364,619
400,000
–
27,399
9,913
168,858
970,789
Other Key
Management Personnel:
Herbert To
263,236
50,000
–
27,399
3,625
7,238
351,498
774,430
450,000
–
65,146
13,538
176,096
1,479,210
Atturra Annual Report 2024
24
Short-term benefits
Post-
employment
benefits
Long-term
benefits
30 June 2023
Cash
salary
and fees
$
Cash
bonus
$
Non-
monetary
$
Super-
annuation
$
Annual/
Long
service
leave
$
Share-
based
payments
Equity-
settled
$
Total
$
Non-Executive Directors:
Nicole Bowman
68,182
–
–
7,159
–
–
75,341
Jonathan Rubinsztein
–
–
–
–
–
–
–
Shan Kanji
–
–
–
–
–
–
–
Executive Director:
Stephen Kowal
371,587
400,000
–
25,292
7,701
108,417
912,997
Other Key
Management Personnel:
Richard Shaw1
190,565
–
–
12,646
–
–
203,211
Herbert To2
187,281
33,000
–
18,969
13,708
–
252,958
817,615
433,000
–
64,066
21,409
108,417
1,444,507
1.
Richard Shaw departed during the financial year on 14 September 2022, he was previously Chief Financial Officer.
2. Herbert To joined on 3rd October 2022 as Chief Financial Officer.
The proportion of remuneration linked to performance and the fixed proportion for the current financial year are
as follows:
Fixed remuneration
At risk – STI
At risk – LTI
Name
30 June 2024
30 June 2023
30 June 2024
30 June 2023
30 June 2024
30 June 2023
Non-Executive Directors:
Nicole Bowman
100%
100%
–
–
–
–
Jonathan Rubinsztein
100%
–
–
–
–
–
Shan Kanji
–
–
–
–
–
–
Executive Director:
Stephen Kowal
42%
44%
41%
44%
17%
12%
Other Key Management
Personnel:
Richard Shaw
–
100%
–
–
–
–
Herbert To
84%
87%
14%
13%
2%
–
Atturra Annual Report 2024
25
Directors’ report
The proportion of the cash bonus paid/payable or forfeited for the current financial year is as follows:
Cash bonus paid/payable
Cash bonus forfeited
Name
30 June 2024
30 June 2023
30 June 2024
30 June 2023
Non-Executive Directors:
Nicole Bowman
–
–
–
–
Jonathan Rubinsztein
–
–
–
–
Shan Kanji
–
–
–
–
Executive Director:
Stephen Kowal
100%
100%
–
–
Other Key Management Personnel:
Herbert To
100%
100%
–
–
Service agreements
Remuneration and other terms of employment for KMPs are formalised in service agreements. Details of these
agreements are as follows:
Name:
Shan Kanji
Title:
Non-Executive Chairman
Agreement commenced:
20 October 2021
Term of agreement:
Permanent
Details:
Shan does not receive a fee for services as Non-Executive Director and Chairman of
Atturra Limited.
Name:
Stephen Kowal
Title:
Chief Executive Officer
Agreement commenced:
20 October 2021
Term of agreement:
Permanent
Details:
Stephen is entitled to receive a remuneration of $400,000 per annum, inclusive of
superannuation and a discretionary STI cash bonus of up to $480,000 per annum (inclusive
of superannuation) to be paid within three months of the end of the relevant financial year.
Stephen may be issued a LTI subject to shareholders approving it at the AGM.
6 months termination notice in writing.
Name:
Nicole Bowman
Title:
Independent, Non-Executive Director
Agreement commenced:
20 October 2021
Term of agreement:
Permanent
Details:
$85,000 per annum, inclusive of superannuation (including remuneration as chair of Audit
and Risk and Nomination and Remuneration Committees).
Name:
Jonathan Rubinsztein
Title:
Independent, Non-Executive Director
Agreement commenced:
4 November 2021
Term of agreement:
Permanent
Details:
$70,000 per annum, exclusive of superannuation.
Atturra Annual Report 2024
26
Name:
Herbert To
Title:
Chief Financial Officer
Agreement commenced:
3 October 2022
Term of agreement:
Permanent
Details:
Herbert is entitled to receive a remuneration of $270,000 per annum, exclusive of
superannuation. For the period commencing 1 November 2023 to 30 June 2024, a target STI of
$50,000 per annum (inclusive of superannuation) and a LTI of 39,100 performance rights
which are subject to continued employment with the Atturra Group until 1 November 2026.
3 months termination notice in writing after 3 October 2023.
KMPs have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no ordinary shares of Atturra Limited issued on the exercise of performance rights during the year ended
30 June 2024 and up to the date of this report.
Performance rights
During the year ended 30 June 2024, 444,444 performance rights were issued to Stephen Kowal (30 June 2023: 622,614
performance rights). The fair value of the performance rights at grant date was $0.48 each (2023: $0.38 each).
39,100 of performance rights were issued to Herbert To during the year ending 30 June 2024. The fair value of the
performance rights at the grant date was $0.81 each.
Performance rights granted carry no dividend or voting rights.
Additional disclosures relating to KMPs
Shareholding
The number of shares in Atturra Limited held during the financial year by each Director and KMPs of Atturra Group,
including their personally related parties, is set out below:
Balance at
the start of
the year
Received
as part of
remuneration
Additions
Disposals/
other
Balance at
the end of
the year
Ordinary shares
Shan Kanji
130,049,595
–
43,859,612
–
173,909,207
Stephen Kowal
7,072,943
–
22,375
–
7,095,318
Nicole Bowman
113,333
–
28,334
–
141,667
Jonathan Rubinsztein
6,075,055
–
–
–
6,075,055
Herbert To
–
–
20,000
–
20,000
143,310,926
–
43,930,321
–
187,241,247
Atturra Annual Report 2024
27
Directors’ report
Option holding
No Directors held any options over ordinary shares.
Performance Rights holding
The number of performance rights over ordinary shares in Atturra Limited held during the financial year by each
Director and KMPs of Atturra Group, including their personally related parties, is set out below:
Balance at
the start of
the year
Granted
Vested
Expired/
forfeited/
other
Balance at
the end of
the year*
Performance rights over
ordinary shares
Stephen Kowal
1,372,614
444,444
–
–
1,817,058
Herbert To
–
39,100
–
–
39,100
1,372,614
483,544
–
–
1,856,158
*
Performance rights at the end of the year are unvested and not exercisable.
Other transactions with key management personnel and their related parties
The following transactions occurred with parties related to Shan Kanji.
Consolidated
30 June 2024
$
30 June 2023
$
Sale of goods and services:
Sale of services to other related party
248,695
360,628
Payment for goods and services:
Payment for services from other related party
386,292
41,068
As at 14 June 2024, Atturra Group sold two of its Liberty Technologies Pty Ltd and UREA Corp of Australia Pty Ltd to parties
related to Shan Kanji.
Loans to key management personnel and their related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
Consolidated
30 June 2024
$
30 June 2023
$
Current receivables:
Trade receivables from Kanji Group Pty Ltd
–
15,950
There are no other loans provided to or related party transactions with KMPs.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
This concludes the remuneration report, which has been audited.
Atturra Annual Report 2024
28
Shares under option
There were no unissued ordinary shares of Atturra Limited under option outstanding at the date of this report.
Shares under performance rights
Unissued ordinary shares of Atturra Limited under performance rights at the date of this report are as follows:
Grant date
Date of
record
Exercise
price
Number
under rights
22/12/2021
31/12/2024
$0.00
375,000
22/12/2021
31/12/2025
$0.00
375,000
29/04/2022
01/11/2024
$0.00
1,691,000
28/07/2022
01/11/2024
$0.00
182,910
29/07/2022
01/11/2024
$0.00
684,132
07/10/2022
31/12/2025
$0.00
311,307
07/10/2022
31/12/2026
$0.00
311,307
13/10/2023
15/12/2026
$0.00
222,222
13/10/2023
15/12/2027
$0.00
222,222
21/10/2023
01/11/2026
$0.00
1,332,138
5,707,238
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to
participate in any share issue of Atturra Limited or of any other body corporate.
Shares issued on the exercise of options
There were no ordinary shares of Atturra Limited issued on the exercise of options during the year ended 30 June 2024
and up to the date of this report.
Shares issued on the exercise of performance rights
There were no ordinary shares of Atturra Limited issued on the exercise of performance rights during the year ended
30 June 2024 and up to the date of this report.
Indemnity and insurance of officers
Atturra Limited has indemnified the Directors and executives of Atturra Limited for costs incurred, in their capacity as
a Director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, Atturra Limited paid a premium in respect of a contract to insure the Directors and executives
of Atturra Limited against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
Atturra Limited has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of
Atturra Limited or any related entity against a liability incurred by the auditor.
During the financial year, Atturra Limited has not paid a premium in respect of a contract to insure the auditor of
Atturra Limited or any related entity.
Atturra Annual Report 2024
29
Directors’ report
Proceedings on behalf of Atturra Limited
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of Atturra Limited, or to intervene in any proceedings to which Atturra Limited is a party for the purpose of taking
responsibility on behalf of Atturra Limited for all or part of those proceedings.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of Atturra Limited who are former partners of Crowe Audit Australia
There are no officers of Atturra Limited who are former partners of Crowe Audit Australia.
Rounding of amounts
Atturra Limited is of a kind referred to in ASIC Legislative Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set
out immediately after this Directors’ report.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations
Act 2001.
On behalf of the Directors
Shan Kanji
Chairman
23 August 2024
Atturra Annual Report 2024
30
Auditor’s independence declaration
Crowe Audit Australia
ABN 13 969 921 386
Level 24, 1 O’Connell Street
Sydney NSW 2000
Main +61 (02) 9262 2155
Fax +61 (02) 9262 2190
www.crowe.com.au
Some of the Crowe personnel involved in preparing this document may be members of a professional scheme approved under Professional
Standards Legislation such that their occupational liability is limited under that Legislation. To the extent that applies, the following disclaimer
applies to them. If you have any questions about the applicability of Professional Standards Legislation Crowe’s personnel involved in preparing
this document, please speak to your Crowe adviser.
Liability limited by a scheme approved under Professional Standards Legislation.
The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an
equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership
is external audit, conducted via the Crowe Australasia external audit division and Unison SMSF Audit. All other professional services offered by
Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.
Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a
separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe
Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or
partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe Audit Australia, an affiliate of Findex (Aust) Pty Ltd.
© 2024 Findex (Aust) Pty Ltd
Auditor’s Independence Declaration Under Section 307c
of the Corporations Act 2001 to the Directors of Atturra
Limited
As lead engagement partner, I declare that, to the best of my knowledge and belief, during the year
ended 30 June 2024, there have been:
(i) no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
Yours sincerely,
Crowe Audit Australia
Ash Pather
Senior Partner
23 August 2024
Sydney
Atturra Annual Report 2024
31
FY24 Financial Report
30 June 2024
Contents
Consolidated statement of profit or loss
and other comprehensive income
33
Consolidated statement of financial position
34
Consolidated statement of changes in equity
35
Consolidated statement of cash flows
36
Notes to the consolidated financial statements
37
Consolidated entity disclosure statement
84
Directors’ declaration
86
Independent auditor’s report
87
Atturra Annual Report 2024
32
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Consolidated
Note
30 June 2024
$’000
30 June 2023
$’000
Revenue
Revenue from contracts with customers
4
243,352
178,331
Cost of providing services
(164,311)
(124,223)
Gross margin
79,041
54,108
Share of profits of associates accounted for using the equity method
116
72
Other income
1,183
1,301
Interest revenue calculated using the effective interest method
768
490
Expenses
Depreciation and amortisation expense
5
(6,432)
(2,054)
General and administrative expenses
(58,125)
(35,680)
Sales and marketing expenses
(1,549)
(1,190)
Impairment of receivables
8
(116)
(8)
Finance costs
5
(1,823)
(1,088)
Profit before income tax expense
13,063
15,951
Income tax expense
6
(3,332)
(5,308)
Profit after income tax expense for the year
9,731
10,643
Other comprehensive income for the year, net of tax
–
–
Total comprehensive income for the year
9,731
10,643
Profit for the year is attributable to:
Non-controlling interest
(53)
402
Owners of Atturra Limited
9,784
10,241
9,731
10,643
Total comprehensive income for the year is attributable to:
Non-controlling interest
(53)
402
Owners of Atturra Limited
9,784
10,241
9,731
10,643
Cents
Cents
Basic earnings per share
38
3.59
4.71
Diluted earnings per share
38
3.52
4.61
The above consolidated statement of profit and loss and other comprehensive income should be read in conjunction
with the accompanying notes.
Atturra Annual Report 2024
33
Consolidated statement of financial position
As at 30 June 2024
Consolidated
Note
30 June 2024
$’000
30 June 2023
$’000
Assets
Current assets
Cash and cash equivalents
7
60,639
44,250
Trade and other receivables
8
67,065
39,627
Contract assets
9
739
422
Inventories
10
1,621
755
Other current assets
11
3,015
2,356
Total current assets
133,079
87,410
Non-current assets
Trade and other receivables
8
6,718
–
Investments accounted for using the equity method
12
1,307
1,191
Property, plant and equipment
13
2,425
1,716
Right-of-use assets
14
11,236
9,645
Intangible assets
15
126,401
56,539
Deferred tax asset
6
3,322
5,869
Total non-current assets
151,409
74,960
Total assets
284,488
162,370
Liabilities
Current liabilities
Trade and other payables
16
71,272
41,339
Contract liabilities
17
9,652
7,616
Borrowings
18
395
–
Lease liabilities
19
3,046
2,797
Income tax payable
6
2,080
906
Employee benefits
20
9,328
7,670
Other liabilities
21
7,045
3,592
Total current liabilities
102,818
63,920
Non-current liabilities
Trade and other payables
16
5,704
–
Borrowings
18
14,099
5,352
Lease liabilities
19
9,264
7,399
Employee benefits
20
2,022
1,446
Other liabilities
21
395
5,192
Total non-current liabilities
31,484
19,389
Total liabilities
134,302
83,309
Net assets
150,186
79,061
Equity
Issued capital
22
142,105
77,958
Reserves
23
(9,897)
(10,983)
Retained earnings
24
17,978
11,463
Equity attributable to the owners of Atturra Limited
150,186
78,438
Non-controlling interest
35
–
623
Total equity
150,186
79,061
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Atturra Annual Report 2024
34
Consolidated statement of changes in equity
For the year ended 30 June 2024
Consolidated
Issued
capital
$’000
Reserves
$’000
Retained
earnings
$’000
Non-
controlling
interest
$’000
Total equity
$’000
Balance at 1 July 2022
52,312
(11,762)
1,120
734
42,404
Profit after income tax expense
for the year
–
–
10,241
402
10,643
Other comprehensive income
for the year, net of tax
–
–
–
–
–
Total comprehensive income
for the year
–
–
10,241
402
10,643
Transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs (note 22)
26,396
–
–
–
26,396
Other
–
–
102
–
102
Issue of shares under Employee
share scheme – share-based
payments (note 39)
376
–
–
–
376
Share-based payments (note 39)
–
779
–
–
779
Treasury shares
(1,126)
–
–
–
(1,126)
Dividends paid
–
–
–
(513)
(513)
Balance at 30 June 2023
77,958
(10,983)
11,463
623
79,061
Consolidated
Issued
capital
$’000
Reserves
$’000
Retained
earnings
$’000
Non-
controlling
interest
$’000
Total equity
$’000
Balance at 1 July 2023
77,958
(10,983)
11,463
623
79,061
Profit/(loss) after income tax expense
for the year
–
–
9,784
(53)
9,731
Other comprehensive income
for the year, net of tax
–
–
–
–
–
Total comprehensive income
for the year
–
–
9,784
(53)
9,731
Transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs (note 22)
64,645
–
–
–
64,645
Share buy-back –
Treasury shares (note 22)
(498)
–
–
–
(498)
Share-based payments (note 39)
–
1,086
–
–
1,086
Other
–
–
56
–
56
Transactions with non-controlling
interests – Noetic share purchase
–
–
(3,325)
(305)
(3,630)
Dividends paid
–
–
–
(265)
(265)
Balance at 30 June 2024
142,105
(9,897)
17,978
–
150,186
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
Atturra Annual Report 2024
35
Consolidated
Note
30 June 2024
$’000
30 June 2023
$’000
Cash flows from operating activities
Receipts from customers (inclusive of GST)
221,285
192,426
Payments to suppliers and employees (inclusive of GST)
(206,023)
(175,611)
15,262
16,815
Interest received
768
490
Interest and other finance costs paid
(1,004)
(622)
Income taxes paid
(3,182)
(6,214)
Net cash from operating activities
37
11,844
10,469
Cash flows from investing activities
Payments for acquisition of subsidiaries, net of cash acquired
34
(41,217)
(18,365)
Payments for purchase of business
(3,482)
–
Payments for deferred consideration for purchase of subsidiaries
(4,292)
(3,800)
Payments for property, plant and equipment
13
(776)
–
Payments for intangibles
15
–
(281)
Proceeds from disposal of property, plant and equipment
–
97
Proceeds for investments
–
664
Net cash used in investing activities
(49,767)
(21,685)
Cash flows from financing activities
Proceeds from issue of shares, net of costs
49,035
24,254
Proceeds from borrowings from third parties
42,200
4,600
Payments for share buy-backs
(265)
(1,126)
Repayment of borrowings to third parties
(33,198)
–
Repayment of loans to related parties
–
(4,750)
Repayments of lease liabilities
(3,195)
(2,129)
Dividends paid
25
(265)
(513)
Net cash from financing activities
54,312
20,336
Net increase in cash and cash equivalents
16,389
9,120
Cash and cash equivalents at the beginning of the financial year
44,250
35,130
Cash and cash equivalents at the end of the financial year
7
60,639
44,250
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
Consolidated statement of cash flows
For the year ended 30 June 2024
Atturra Annual Report 2024
36
Notes to the consolidated
financial statements
30 June 2024
Contents
Note 1. Material accounting policy information
38
Note 2. Critical accounting judgements, estimates and assumptions
40
Note 3. Operating segments
41
Note 4. Revenue from contracts with customers
42
Note 5. Expenses
44
Note 6. Income tax
45
Note 7. Cash and cash equivalents
47
Note 8. Trade and other receivables
48
Note 9. Contract assets
49
Note 10. Inventories
49
Note 11. Other current assets
49
Note 12. Investments accounted for using the equity method
50
Note 13. Property, plant and equipment
50
Note 14. Right-of-use assets
52
Note 15. Intangible assets
53
Note 16. Trade and other payables
57
Note 17. Contract liabilities
58
Note 18. Borrowings
58
Note 19. Lease liabilities
60
Note 20. Employee benefits
60
Note 21. Other liabilities
61
Note 22. Issued capital
62
Note 23. Reserves
63
Note 24. Retained earnings
64
Note 25. Dividends
64
Note 26. Financial instruments
65
Note 27. Fair value measurement
67
Note 28. Key management personnel disclosures
69
Note 29. Remuneration of auditors
69
Note 30. Contingent liabilities
69
Note 31. Commitments
69
Note 32. Related party transactions
69
Note 33. Parent entity information
71
Note 34. Business combinations
72
Note 35. Interests in subsidiaries
77
Note 36. Interests in associates
78
Note 37. Reconciliation of profit after income tax to net cash from operating activities
79
Note 38. Non-cash investing and financing activities
79
Note 39. Earnings per share
80
Note 40. Share-based payments
80
Note 41. Events after the reporting period
83
Atturra Annual Report 2024
37
Notes to the consolidated financial statements
Note 1. Material accounting policy information
The accounting policies that are material to the Atturra Group are set out either in the respective notes or below.
The accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
Atturra Group has adopted all the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. The adoption of these
Accounting Standards and Interpretations did not have any significant impact on the financial performance or position
of Atturra Group.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards
and Interpretations issued by the AASB and the Corporations Act 2001, as appropriate for for-profit oriented entities.
These financial statements also comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board (IASB).
Comparative figures
Certain comparative amounts have been reclassified to conform with the current period’s presentation. There was no
effect on profit, net assets, or equity.
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss and contingent consideration payable in
a business combination.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of Atturra Group only.
Supplementary information about the parent entity is disclosed in note 33.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Atturra Limited as at
30 June 2024 and the results of all subsidiaries for the year then ended. Atturra Limited and its subsidiaries together are
referred to in these financial statements as Atturra Group.
Subsidiaries are all those entities over which Atturra Group has control. Atturra Group controls an entity when Atturra
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on
which control is transferred to Atturra Group. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in Atturra Group are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
the policies adopted by Atturra Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the non-controlling interest acquired is recognised
directly in equity attributable to the parent.
Atturra Annual Report 2024
38
Notes to the consolidated financial statements
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss
and other comprehensive income, statement of financial position and statement of changes in equity of Atturra Group.
Losses incurred by Atturra Group are attributed to the non-controlling interest in full, even if that results in a deficit
balance.
Where Atturra Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. Atturra
Group recognises the fair value of the consideration received and the fair value of any investment retained together
with any gain or loss in profit or loss.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Atturra Group’s functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into Atturra Group’s functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of
such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in Atturra
Group’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or
used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in Atturra Group’s normal operating cycle; it is
held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is
no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other
liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Impairment of non-financial assets
Goodwill is not subject to amortisation and are tested annually for impairment, or more frequently if events
or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed
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 carrying amount exceeds its
recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use
is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to
the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are
grouped together to form a cash-generating unit.
Rounding of amounts
Atturra Limited is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Atturra Annual Report 2024
39
Notes to the consolidated financial statements
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts in the financial statements. Management continually evaluates its judgements
and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including expectations
of future events, management believes to be reasonable under the circumstances. The resulting accounting
judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to
the respective notes) within the next financial year are discussed below.
Share-based payment transactions
Atturra Group measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The accounting estimates and assumptions relating to
equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within
the next annual reporting period but may impact profit or loss and equity.
Principal versus agent considerations – revenue
Management has determined that SME Gateway is the agent in respect of transactions with its customers.
This determination has been made on the basis that SME Gateway does not bear primary responsibility for service
delivery to the customer. This is a key judgment given it significantly reduces the amount of revenue recognised by
Atturra Group.
Software licencing revenue includes commission received as an agent for selling software licences of other
software providers.
Goodwill
Atturra Group tests annually, or more frequently if events or changes in circumstances indicate impairment, whether
goodwill has suffered any impairment, in accordance with the accounting policy stated in note 15. The recoverable
amounts of cash-generating units have been determined based on value-in-use calculations. These calculations
require the use of assumptions, including estimated discount rates based on the current cost of capital and growth
rates of the estimated future cash flows.
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease
or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when
ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances
that create an economical incentive to exercise an extension option, or not to exercise a termination option, are
considered at the lease commencement date. Factors considered may include the importance of the asset to Atturra
Group’s operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties;
existence of significant leasehold improvements; and the costs and disruption to replace the asset. Atturra Group
reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there
is a significant event or significant change in circumstances.
Atturra Annual Report 2024
40
Notes to the consolidated financial statements
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is
estimated to discount future lease payments to measure the present value of the lease liability at the lease
commencement date. Such a rate is based on what Atturra Group estimates it would have to pay a third party to
borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security
and economic environment.
Employee benefits provision
As discussed in note 20, the liability for employee benefits expected to be settled more than 12 months from the
reporting date are recognised and measured at the present value of the estimated future cash flows to be made in
respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition
rates and pay increases through promotion and inflation have been taken into account.
Business combinations
As discussed in note 1, business combinations are initially accounted for on a provisional basis. The fair value of assets
acquired, liabilities, contingent consideration and contingent liabilities assumed are initially estimated by Atturra Group
taking into consideration all available information at the reporting date. Fair value adjustments on the finalisation of
the business combination accounting is retrospective, where applicable, to the period the combination occurred and
may have an impact on the assets and liabilities, depreciation and amortisation reported.
Note 3. Operating segments
Identification of reportable operating segments
Atturra Group is organised into only one operating and reporting segment based on the market it serves which
is Information Technology (IT) Solutions in Australia. This operating segment is based on the internal reports that
are reviewed and used regularly by the Board (who is identified as the Chief Operating Decision Maker (‘CODM’))
in assessing performance and in determining the allocation of resources.
Upon becoming a listed entity, the CODM now reviews Underlying EBITDA (earnings before interest, tax, depreciation,
and amortisation, and other adjustments as disclosed) for the reportable segment’s measure of profit or loss.
The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the
financial statements.
The information reported to the CODM is on a monthly basis. Refer to note 4 for revenue from products and services.
Major customers
During the year ended 30 June 2024 and 30 June 2023, no single customer contributed more than 10% of Atturra
Group’s total revenue.
Accounting policy for operating segments
Operating segments are presented using the ‘management approach’, where the information presented is on the
same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM is responsible
for the allocation of resources to its operating segment and assessing its performance.
Atturra Annual Report 2024
41
Notes to the consolidated financial statements
Note 4. Revenue from contracts with customers
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Consulting services – time and materials agreements
137,724
114,592
Consulting services – fixed price agreements
20,641
34,209
Software licensing
5,695
2,124
Software maintenance and managed services
53,613
16,661
Management fee revenue
6,789
7,974
Product sales revenue
16,500
503
Other revenue
2,390
2,268
Revenue from contracts with customers
243,352
178,331
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
2024
Time and
materials
$’000
Fixed
price
$’000
Software
licensing
$’000
Software
mainte-
nance
and
managed
services
$’000
Manage-
ment fee
$’000
Product
sales
$’000
Others
$’000
Total
$’000
Timing of revenue
recognition
At a point in time
–
–
5,695
–
–
16,500
2,390
24,585
Over time
137,724
20,641
–
53,613
6,789
–
–
218,767
137,724
20,641
5,695
53,613
6,789
16,500
2,390
243,352
2023
Time and
materials
$’000
Fixed
price
$’000
Software
licensing
$’000
Software
mainte-
nance
and
managed
services
$’000
Manage-
ment fee
$’000
Product
sales
$’000
Others
$’000
Total
$’000
Timing of revenue
recognition
At a point in time
–
–
2,124
–
–
503
2,268
4,895
Over time
114,592
34,209
–
16,661
7,974
–
–
173,436
114,592
34,209
2,124
16,661
7,974
503
2,268
178,331
Atturra Annual Report 2024
42
Notes to the consolidated financial statements
Accounting policy for revenue recognition
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which Atturra Group is expected to be entitled in
exchange for transferring goods or services to a customer. For each contract with a customer, Atturra Group: identifies
the contract with a customer; identifies the performance obligations in the contract; determines the transaction price
which takes into account estimates of variable consideration and the time value of money; allocates the transaction
price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct
good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in
a manner that depicts the transfer to the customer of the goods or services promised. The majority of customer
payment terms are between 30 and 60 days.
Atturra Group recognises revenue for its major business activities as follows:
Project revenue – time and materials agreements
Where Atturra Group provides services charged on the basis of time and materials, revenue is recognised over time
when the services are rendered, and costs are incurred. If services have not been invoiced at reporting date but are
billable by Atturra Group, an amount is recorded as trade receivables.
Project revenue – fixed price agreements
Where Atturra Group provides services under a fixed price agreement the performance obligation is completed
over time and hence an output method based on percentage-of-completion is applied to recognise revenue. When
the outcome of a fixed price agreement can be measured reliably, revenue is recognised over time based on the
proportion of work performed to date relative to the total contract. When the outcome of a fixed price agreement
cannot be measured reliably, revenue is recognised only to the extent the costs incurred under the contract are
expected to be recoverable. Atturra Group has adopted the practical expedient requirements of AASB 15 (121(a)),
where the performance obligations contained in the project have an original expected duration of one year or less.
Software licensing
Software licensing revenue includes commission received as an agent for selling software licenses of other software
providers. Revenue is recognised at a point in time when the software license is sold to the customer.
Software maintenance and managed services
Software maintenance and managed services revenue is recognised over time, evenly over the life of the relevant
contracts in line with the delivery of services.
Management fee revenue
One of Atturra Group’s entities, SME Gateway Pty Ltd (SME Gateway), recognises revenue based on a percentage
of amounts billed to the end customer, rather than the full amount, as SME Gateway is considered to be an agent
arranging for the member companies to provide services to the end customer. As SME Gateway is only entitled to the
management fee when an amount is invoiced to the end customer, this consideration is therefore variable, depending
on the invoiced amounts of services delivered. Revenue is recognised over time to the extent that future reversal is not
highly probable, which is usually once the services have been delivered.
Product sales revenue
Product sales revenue is recognised at a point in time when the product is delivered to the customer.
Other revenue
Other revenue mainly includes membership fees, income from security clearances and partner incentive income.
Membership fees, revenue from security clearances and partner incentive income is recognised at a point in time
when the performance obligation is completed, and control passes to the customer.
Atturra Annual Report 2024
43
Notes to the consolidated financial statements
Note 5. Expenses
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Profit before income tax includes the following specific expenses:
Depreciation
Plant and equipment
897
16
Fixtures and fittings
65
31
Buildings right-of-use assets
2,367
1,762
Equipment right-of-use assets
621
37
Total depreciation
3,950
1,846
Amortisation
Software
292
53
Client relationships
2,190
155
Total amortisation
2,482
208
Total depreciation and amortisation
6,432
2,054
Finance costs
Interest and finance charges paid/payable on borrowings
1,004
332
Interest and finance charges paid/payable on lease liabilities
565
466
Interest and finance charges paid/payable on deferred consideration
254
290
Finance costs expensed
1,823
1,088
Net foreign exchange loss
Net foreign exchange loss
94
41
Superannuation expense
Defined contribution superannuation expense
2,211
1,739
Share-based payments expense
Share-based payments expense
1,086
1,155
Employee benefits expense excluding superannuation
Employee benefits expense excluding superannuation
37,811
23,550
.
Atturra Annual Report 2024
44
Notes to the consolidated financial statements
Note 6. Income tax
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Income tax expense
Current tax
4,262
4,605
Deferred tax – origination and reversal of temporary differences
(930)
703
Aggregate income tax expense
3,332
5,308
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit before income tax expense
13,063
15,951
Tax at the statutory tax rate of 30%
3,919
4,785
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-deductible expenses
351
198
Share-based payments
326
346
Gain on bargain purchase
(104)
–
Tax losses not recognised as deferred tax assets
(407)
–
Revaluation of Noetic contingent consideration
(152)
–
Deductible IPO costs recognised through equity
(270)
(212)
Over provision and recognition of tax losses not previously recognised
(122)
205
Sundry items
(92)
(14)
3,449
5,308
Tax losses not recognised as deferred tax assets
159
–
Previously unrecognised tax losses now recouped to reduce current tax expense
(276)
–
Income tax expense
3,332
5,308
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Amounts charged/(credited) directly to equity
Deferred tax assets
270
(2)
Atturra Annual Report 2024
45
Notes to the consolidated financial statements
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Deferred tax asset
Deferred tax asset comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Tax losses
824
901
Allowance for expected credit losses
226
–
Employee benefits
4,924
4,318
Lease liabilities
3,385
2,635
Accrued expenses
2,030
1,560
Other
(528)
356
Prepayments
(120)
–
Right-of-use assets
(3,178)
(2,501)
Accrued income
904
(715)
Intangibles
(5,987)
(1,364)
Fixed assets
(415)
–
2,065
5,190
Amounts recognised in equity:
Capital raising costs
1,257
679
Deferred tax asset
3,322
5,869
Amount expected to be recovered within 12 months
7,333
–
Amount expected to be recovered after more than 12 months
(4,011)
5,869
3,322
5,869
Movements:
Opening balance
5,869
6,635
Credited/(charged) to profit or loss
930
(703)
(Charged)/credited to equity
(270)
2
Additions through business combinations
(3,497)
(65)
Additions through capital raising
290
–
Closing balance
3,322
5,869
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Provision for income tax
Provision for income tax
2,080
906
Atturra Annual Report 2024
46
Notes to the consolidated financial statements
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.
Atturra Limited (the ‘head entity’) and its wholly-owned Australian subsidiaries is income tax consolidated group
under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group continue
to account for their own current and deferred tax amounts. The tax consolidated group has applied the ‘separate
taxpayer within group’ approach in determining the appropriate amount of taxes to allocate to members of the tax
consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities
(or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each
subsidiary in the tax consolidated group.
Note 7. Cash and cash equivalents
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current assets
Cash at bank
60,639
44,250
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value.
Atturra Annual Report 2024
47
Notes to the consolidated financial statements
Note 8. Trade and other receivables
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current assets
Trade receivables
58,853
38,100
Less: Allowance for expected credit losses
(750)
(531)
58,103
37,569
Other receivables
8,962
2,058
67,065
39,627
Non-current assets
Trade receivables
6,718
–
73,783
39,627
Allowance for expected credit losses
Atturra Group has recognised a loss of $116,000 related to a movement in the allowance for expected credit losses and
bad debts (2023: $8,000) in profit or loss in respect of the expected credit losses for the year ended 30 June 2024.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rate
Carrying amount
Allowance for
expected credit losses
Consolidated
30 June 2024
%
30 June 2023
%
30 June 2024
$’000
30 June 2023
$’000
30 June 2024
$’000
30 June 2032
$’000
Current
–
–
28,072
25,608
–
–
More than
30 days past due
–
–
22,476
9,494
–
–
More than
60 days past due
–
–
2,100
919
–
–
More than
90 days past due
–
–
4,207
1,114
–
–
More than
120 days past due
13.61%
40.31%
1,445
727
197
293
Specific provision
100.00%
100.00%
553
238
553
238
58,853
38,100
750
531
Non-current
Expected credit loss rate
Carrying amount
Allowance for
expected credit losses
30 June 2024
%
30 June 2023
%
30 June 2024
$’000
30 June 2023
$’000
30 June 2024
$’000
30 June 2032
$’000
Between 1-2 years
–
–
2,136
–
–
–
Between 2-5 years
–
–
4,582
–
–
–
Over 5 years
–
–
–
–
–
–
Total
–
–
6,718
–
–
–
Atturra Annual Report 2024
48
Notes to the consolidated financial statements
Atturra Group considers that the balance of trade receivables, despite some being past-due, relate to customers that
have a good credit history. Accordingly, based on historical default rates, Atturra Group believes no further impairment
is required.
Movements in the allowance for expected credit losses are as follows:
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for
settlement within 30 to 60 days.
Trade debtors that have been classified as non-current are within their payment terms.
Atturra Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected
loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Note 9. Contract assets
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current assets
Contract assets
739
422
Note 10. Inventories
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current assets
Stock on hand – at cost
1,698
805
Less: Provision for obsolescence
(77)
(50)
1,621
755
Note 11. Other current assets
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current assets
Prepayments
2,456
1,728
Deposits
559
628
3,015
2,356
Atturra Annual Report 2024
49
Notes to the consolidated financial statements
Note 12. Investments accounted for using the equity method
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Non-current assets
Investment in associate – Protegic Pty Ltd
1,307
1,191
Reconciliation
Reconciliation of the carrying amounts at the beginning and end of the current and
previous financial year are set out below:
Opening carrying amount
1,191
1,365
Share of associates earnings
116
72
Share buy-back*
–
(246)
Closing carrying amount
1,307
1,191
Refer to note 36 for further information on interests in associates.
*
This relates to a share buy back by Protegic which resulted in the Atturra Group receiving $246,000 of proceeds during the year ended
30 June 2023, Atturra’s shareholding of 49% in Protegic has not changed from 30 June 2023 to 30 June 2024.
Note 13. Property, plant and equipment
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Non-current assets
Leasehold improvements – at cost
848
392
Less: Accumulated depreciation
(333)
(86)
515
306
Plant and equipment – at cost
536
882
Less: Accumulated depreciation
(386)
(801)
150
81
Fixtures and fittings – at cost
253
678
Less: Accumulated depreciation
(150)
(568)
103
110
Motor vehicles – at cost
213
205
Less: Accumulated depreciation
(72)
(46)
141
159
Data Centre Equipment – at cost
2,898
1,771
Less: Accumulated depreciation
(1,911)
(902)
987
869
Managed Services Equipment – at cost
884
825
Less: Accumulated depreciation
(355)
(634)
529
191
2,425
1,716
Atturra Annual Report 2024
50
Notes to the consolidated financial statements
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Consolidated
Leasehold
improve-
ments
$’000
Plant and
equipment
$’000
Fixtures
and fittings
$’000
Motor
vehicles
$’000
Data
Centre
Equipment
$’000
Managed
Services
Equipment
$’000
Total
$’000
Balance at 1 July 2023
306
81
110
159
869
191
1,716
Additions
131
–
79
8
–
558
776
Additions through
business combinations
(note 34)
238
172
–
–
647
–
1,057
Disposals
(70)
(43)
(21)
–
(3)
(25)
(162)
Depreciation expense
(90)
(60)
(65)
(26)
(526)
(195)
(962)
Balance at
30 June 2024
515
150
103
141
987
529
2,425
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and
equipment (excluding land) over their expected useful lives as follows:
Leasehold improvements
5 to 7 years
Plant and equipment
3 to 5 years
Fixtures and fittings
3 to 7 years
Motor vehicles
6 to 8 years
Data centre equipment
3 to 5 years
Managed service equipment
3 to 5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each
reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the
assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit
to Atturra Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Atturra Annual Report 2024
51
Notes to the consolidated financial statements
Note 14. Right-of-use assets
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Non-current assets
Buildings – right-of-use
17,099
12,360
Less: Accumulated depreciation
(6,495)
(3,680)
10,604
8,680
Equipment – right-of-use
1,644
1,905
Less: Accumulated depreciation
(1,012)
(940)
632
965
11,236
9,645
Atturra Group leases buildings for its offices under agreements between one year and seven years with, in some cases,
options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.
Atturra Group leases office equipment under agreements of less than one year. For these leases that are either
short‑term or low-value, they have been expensed as incurred and not capitalised as right-of-use assets.
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
Consolidated
Buildings
$’000
Equipment
$’000
Total
$’000
Balance at 1 July 2022
5,887
–
5,887
Additions
3,665
–
3,665
Additions through business combinations (note 34)
1,402
1,002
2,404
Disposals
(206)
–
(206)
Transfers in/(out)
(306)
–
(306)
Depreciation expense
(1,762)
(37)
(1,799)
Balance at 30 June 2023
8,680
965
9,645
Additions
1,296
–
1,296
Additions through business combinations (note 34)
925
288
1,213
Lease variations
2,070
–
2,070
Depreciation expense
(2,367)
(621)
(2,988)
Balance at 30 June 2024
10,604
632
11,236
Atturra Annual Report 2024
52
Notes to the consolidated financial statements
For other lease disclosures refer to:
• note 5 for depreciation on right-of-use assets, interest on lease liabilities and other lease expenses;
• note 19 for lease liabilities;
• note 26 for undiscounted future lease commitments; and
• consolidated statement of cash flows for repayment of lease liabilities.
Accounting policy for right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or
before the commencement date net of any lease incentives received, any initial direct costs incurred, and an estimate
of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where Atturra Group expects to obtain ownership of the leased
asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to
impairment or adjusted for any remeasurement of lease liabilities.
Atturra Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit
or loss as incurred.
Note 15. Intangible assets
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Non-current assets
Goodwill – at cost
104,987
51,154
Customer relationships – at cost
22,354
4,661
Less: Accumulated amortisation
(2,345)
(155)
20,009
4,506
Software – at cost
2,018
2,246
Less: Accumulated amortisation
(613)
(1,367)
1,405
879
126,401
56,539
Atturra Annual Report 2024
53
Notes to the consolidated financial statements
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
Consolidated
Goodwill
$’000
Customer
relationships
$’000
Software
$’000
Total
$’000
Balance at 1 July 2022
30,715
–
31
30,746
Additions
–
–
281
281
Additions through business combinations (note 34)
20,439
4,661
620
25,720
Amortisation expense
–
(155)
(53)
(208)
Balance at 30 June 2023
51,154
4,506
879
56,539
Additions
–
–
–
–
Additions through business combinations (note 34)
53,833
17,693
818
72,344
Amortisation expense
–
(2,190)
(292)
(2,482)
Balance at 30 June 2024
104,987
20,009
1,405
126,401
Impairment testing
The Group employs a growth strategy that combines both organic expansion and strategic acquisitions. Since
30 June 2022, the Group has made several acquisitions in key strategic sectors, including managed services,
business applications, cloud business solutions and data integration.
A cash-generating unit (CGU) is the smallest identifiable group of assets that generate cash inflows that are largely
independent of the cash inflows from other assets or group of assets.
In the current financial year, the Group has reassessed its CGUs with five CGUs (previously seven) identified.
The Group has integrated the acquisitions since 30 June 2022 and has considered the following factors in determining
Atturra Group’s five CGUs;
• The five identified CGU share projects, clients and revenue and generate cash inflows dependent on statutory
entities within the CGU
• Each identified CGUs is managed by a dedicated group manager and project decisions for clients are made at the
group level and not at the statutory entity level; and
• Atturra Group’s acquisition strategies involves identifying and acquiring complementary business that would be
integrated into each CGU.
As cash inflows generated by the group of statutory entities are dependent on each other, the Group considers the
CGU identification of five separate CGUs to be appropriate.
Atturra Annual Report 2024
54
Notes to the consolidated financial statements
The goodwill allocation to each CGU is presented below:
Consolidated
Previous CGUs
30 June 2023
$’000
Galaxy 42, ESAM and Chartsmart
3,665
Noetic
4,388
Mentum
3,903
Kettering
4,898
Hayes Information Systems
13,861
Hammond Street Developments
4,233
The Somerville Group
16,206
51,154
Consolidated
Current CGUs
30 June 2024
$’000
Business Applications
11,905
Advisory & Consulting
4,388
Data & Integration
17,764
Cloud Business Solutions
4,231
Managed Services
66,699
104,987
At 30 June 2024 management performed impairment testing for each CGU of the Atturra Group where there is
goodwill. No impairment losses were identified at 30 June 2024.
Key assumptions
• Revenue growth is based on the Board approved budget for the next financial year (FY25) as well as management
assessment over the forecast period (FY26 to FY29). Budgeted revenue for 2025 is based on management
expectations and the average annual revenue growth thereafter, for the purpose of impairment testing, is assumed
to be maintained at 5% p.a. over the remaining forecast period for all CGUs. The forecast revenue assumption has
been assumed to be the same for all the CGU’s due to the risk profile and the composition of the client base being
similar historically and this is expected to continue over the forecast period.
• EBIT margins are based on the Board approved budget for the next financial year and management assessment
over the forecast period. The EBIT margin ratio shows EBIT as a percentage of net revenue. For the purpose of
impairment testing, this is assumed to be maintained between 2% and 13% over the forecast period.
• Discount rates represent the current market assessment of the risks specific to Atturra Group, considering the
time value of money and specific risk of the underlying assets that have not been incorporated into the cash
flow estimates. The discount rate is calculated using the weighted average cost of capital (WACC) and reflects
management’s estimation of the time value of money and specific risk estimated for Atturra Group. The WACC
considers both debt and equity. The cost of equity is derived from the expected return on investment by Atturra
Group’s investors. It incorporates a beta factor to reflect the specific risk associated with the industries in which
Atturra Group operates. The cost of debt is based on the interest-bearing borrowings Atturra Group is obliged to
service. Management utilised a post-tax discount rate of 13% (2023: 13%).
Atturra Annual Report 2024
55
Notes to the consolidated financial statements
• It is assumed for the purpose of impairment testing that the long-term growth rate (terminal rate) will equate to the
long-term average growth rate of the national economy. Management estimate this to be 2.5% p.a. which is in line
with the long-term expected Australian inflation rate. The sensitivity analysis concluded that changing this rate to
reflect possible lower growth projections would not materially impact the valuations of the individual CGUs.
As disclosed in note 2, the Directors have made judgements and estimates in respect of impairment testing of
goodwill. Should these judgements and estimates not occur the resulting goodwill carrying amount may decrease.
The sensitivities are as follows:
• Revenue would need to increase by less than 3% for the Advisory & Consulting CGU for the forecast period before
goodwill would need to be impaired, with all other assumptions remaining constant.
• The discount rate would need to increase to more than 15% for the Advisory & Consulting CGU for the forecast period
before goodwill would need to be impaired, with all other assumptions remaining constant.
Management believes that other reasonable changes in the key assumptions on which the recoverable amount of the
CGUs’ goodwill is based would not cause the CGU’s carrying amount to exceed its recoverable amount.
Accounting policy for intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair
value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life
intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible
assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in
profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal
proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets
are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively
by changing the amortisation method or period.
Goodwill
Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for
impairment, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried
at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not
subsequently reversed.
Customer relationships
Customer relationships acquired in a business combination are amortised on a straight-line basis over the period of
their expected benefit, being their finite life of 7 years.
Software
Costs associated with maintaining software programmes are recognised as an expense as incurred. Development
costs that are directly attributable to the design and testing of identifiable and unique software products controlled by
Atturra Group are recognised as intangible assets where the following criteria are met:
• it is technically feasible to complete the software so that it will be available for use;
• management intends to complete the software and use or sell it;
• there is an ability to use or sell the software;
• it can be demonstrated how the software will generate probable future economic benefits;
• adequate technical, financial and other resources to complete the development and to use or sell the software are
available; and
• the expenditure attributable to the software during its development can be reliably measured.
Significant costs associated with software are deferred and amortised on a straight-line basis over the period of their
expected benefit, being their finite life of 5 years.
Atturra Annual Report 2024
56
Notes to the consolidated financial statements
Software-as-a-Service (SaaS) arrangements are service contracts providing Atturra Group with the right to access a
cloud provider’s application software over a period of time. Under the IFRIC treatment, SaaS costs are only recognised
as intangible assets if the implementation activities create an intangible asset that the entity controls and the
intangible asset meets the recognition criteria. Costs that do not result in intangible assets are expensed as incurred,
unless they are paid to the suppliers of the SaaS arrangement to significantly customise the cloud-based software for
Atturra Group, in which case the costs are recorded as a prepayment for services and amortised over the expected
renewable term of the arrangement.
Note 16. Trade and other payables
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current liabilities
Trade payables
52,387
28,195
Accrued expenses
3,714
1,408
Accrued staff bonuses
7,530
5,625
Payroll tax and PAYG payable
2,109
2,438
GST payable
2,239
2,089
Other payables
3,293
1,584
71,272
41,339
Non-current liabilities
Trade payables
5,704
–
76,976
41,339
Refer to note 26 for further information on financial instruments.
Accounting policy for trade and other payables
Current
Trade and other payables represent liabilities for goods and services provided to Atturra Group prior to the end of the
financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Non-Current
Represents unsecured non-current trade and other payables for product delivered during the financial year.
The liability will be fully settled in February 2029.
Atturra Annual Report 2024
57
Notes to the consolidated financial statements
Note 17. Contract liabilities
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current liabilities
Contract liabilities
9,652
7,616
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and
previous financial year are set out below:
Opening balance
7,616
5,712
Payments received in advance
30,528
19,148
Additions through business combinations (note 34)
1,221
3,319
Transfer to revenue
(29,713)
(20,563)
Closing balance
9,652
7,616
Accounting policy for contract liabilities
Contract liabilities represent Atturra Group’s obligation to transfer goods or services to a customer and are recognised
when a customer pays consideration, or when Atturra Group recognises a receivable to reflect its unconditional right to
consideration (whichever is earlier) before Atturra Group has transferred the goods or services to the customer.
Note 18. Borrowings
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current liabilities
Chattel mortgages and loans
395
–
395
–
Non-current liabilities
Bank loans
13,800
4,600
Chattel mortgages and loans
299
752
14,099
14,494
5,352
Refer to note 26 for further information on financial instruments.
Atturra Annual Report 2024
58
Notes to the consolidated financial statements
Financing arrangements
Unrestricted access was available at the reporting date to the following lines of credit:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Total facilities
Bank loans – Westpac Banking Corporation
65,400
25,800
Chattel mortgages and loans
694
752
66,094
26,552
Used at the reporting date
Bank loans – Westpac Banking Corporation
13,800
4,600
Chattel mortgages and loans
694
752
14,494
5,352
Unused at the reporting date
Bank loans – Westpac Banking Corporation
51,600
21,200
Chattel mortgages and loans
–
–
51,600
21,200
The total facility is $65.4 million and includes:
• $40 million term loan facility for funding future permitted acquisitions; reduced by $2 million per quarter
• $4.6 million term loan facility for the repayment of related party loans;
• a total of $15 million term loan facilities for funding permitted future acquisitions ($9 million) and deferred
consideration relating to prior acquisitions ($6 million); each of which mature three years from financial close;
• a $5 million overdraft facility for working capital requirements, which is repayable on demand;
• a $0.3 million revolving bank guarantee facility for securing lease obligations of Atturra Group, which is repayable
on demand; and
• a $0.5 million corporate credit card facility for day-to-day general corporate purposes of Atturra Group, which is
repayable on demand.
Accounting policy for borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method.
Accounting policy for finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed
in the period in which they are incurred.
Atturra Annual Report 2024
59
Notes to the consolidated financial statements
Note 19. Lease liabilities
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current liabilities
Lease liability
3,046
2,797
Non-current liabilities
Lease liability
9,264
7,399
12,310
10,196
Refer to note 26 for the maturity analysis of lease liabilities.
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit
in the lease or, if that rate cannot be readily determined, Atturra Group’s incremental borrowing rate. Lease payments
comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or
a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the
exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease
payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability
is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying
amount of the right-of-use asset is fully written down.
Note 20. Employee benefits
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current liabilities
Annual leave
7,271
5,927
Long service leave
2,057
1,743
9,328
7,670
Non-current liabilities
Long service leave
2,022
1,446
11,350
9,116
Atturra Annual Report 2024
60
Notes to the consolidated financial statements
Amounts not expected to be settled within the next 12 months
The leave obligations cover Atturra Group’s liability for long service leave and annual leave. The current portion of this
liability includes all of the accrued annual leave, the unconditional entitlements to long service leave where employees
have completed the required year of service and also for those employees who are entitled to pro-rata payments in
certain circumstances. The entire amount is presented as current, since Atturra Group does not have an unconditional
right to defer settlement. However, based on past experience, Atturra Group does not expect all employees to take
the full amount of accrued leave or require payment within the next 12 months. Management estimates that 40%
(2023: 40%) of the current leave obligations is considered as to be paid within 12 months and 60% (2023: 60%) to be paid
beyond 12 months.
The following amounts reflect leave presented as current but it is not expected to be taken within the next 12 months:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Employee benefits obligation expected to be settled after 12 months
5,597
4,602
Accounting policy for employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled wholly within
12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for long service leave not expected to be settled wholly within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees
up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee
departures and periods of service. Expected future payments are discounted using market yields at the reporting date
on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Note 21. Other liabilities
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current liabilities
Contingent consideration
7,045
3,592
Non-current liabilities
Contingent consideration
395
5,192
7,440
8,784
Contingent consideration payable relates to the acquisition of subsidiaries. Refer to note 27 for further information.
Atturra Annual Report 2024
61
Notes to the consolidated financial statements
Note 22. Issued capital
Consolidated
30 June 2024
Shares
30 June 2023
Shares
30 June 2024
$’000
30 June 2023
$’000
Ordinary shares – fully paid
312,770,789
232,524,941
143,729
79,084
Treasury shares
(1,817,326)
(1,252,672)
(1,624)
(1,126)
310,953,463
231,272,269
142,105
77,958
Movements in ordinary share capital
Details
Date
Shares
Issue price
$’000
Balance
1 July 2023
232,524,941
79,084
Issue of shares
15 November 2023
577,367
$0.87
500
Issue of shares
15 November 2023
1,176,471
$0.85
1,000
Issue of shares
11 December 2023
15,937,505
$0.88
14,049
Issue of shares
19 December 2023
48,688,810
$0.80
38,951
Issue of shares
29 January 2024
13,865,695
$0.80
10,941
Share issue costs, net of tax
–
$0.00
(796)
Balance
30 June 2024
312,770,789
143,729
Movements in treasury shares
Details
Date
Shares
Issue price
$’000
Balance
1 July 2023
(1,252,672)
(1,126)
Share buy-back
July 2023 to August 2023
(564,654)
$0.88
(498)
Balance
30 June 2024
(1,817,326)
(1,624)
Movements in treasury shares
During the year, 565,654 fully paid ordinary shares at an average price per security of $0.88 were purchased on-market
for the purpose of an employee incentive scheme or to satisfy the entitlements of the holders of performance rights
when they are expected to vest between 2024 and 2026.
Ordinary shares
Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to
shareholders should Atturra Limited be wound up, in proportions that consider both the number of shares held and the
extent to which those shares are paid up. The fully paid ordinary shares have no par value and Atturra Limited does not
have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll
each share shall have one votes.
Atturra Annual Report 2024
62
Notes to the consolidated financial statements
Capital risk management
Atturra Group’s objectives when managing capital is to safeguard its ability to continue as a going concern, so that it
can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure
to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is
calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, Atturra Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Atturra Group is subject to certain financing arrangements covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements during the
financial year.
The capital risk management policy remains unchanged from the 2023 Annual Report.
Accounting policy for issued capital
Ordinary shares are classified as equity. For Atturra Group purposes, the share capital after the reorganisation is
presented at the carried forward original parent share capital.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
Note 23. Reserves
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Share-based payments reserve
1,994
908
Consolidation reserve
(11,891)
(11,891)
(9,897)
(10,983)
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their
remuneration, and other parties as part of their compensation for services. Transfers are made to issued capital when
the awards have vested and are exercised.
Consolidation reserve
This reserve is used to record the differences between the amount of the adjustment to non-controlling interests and
any consideration paid or received which may arise as a result of transactions with non-controlling interests that do
not result in a loss of control.
Atturra Annual Report 2024
63
Notes to the consolidated financial statements
Movements in reserves
Movements in each class of reserve during the current financial year are set out below:
Consolidated
Share-based
payments
reserve
$’000
Consolidation
reserve
$’000
Total
$’000
Balance at 1 July 2023
908
(11,891)
(10,983)
Share-based payment expense (note 39)
1,086
–
1,086
Balance at 30 June 2024
1,994
(11,891)
(9,897)
Note 24. Retained earnings
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Retained earnings at the beginning of the financial year
11,463
1,120
Profit after income tax expense for the year
9,784
10,241
Non-controlling interest share purchase adjustment
(3,325)
–
Other
56
102
Retained earnings at the end of the financial year
17,978
11,463
Note 25. Dividends
Dividends
No dividends were paid, recommended, or declared during the current financial year to Atturra Limited shareholders.
During the current financial year, a dividend of $265,000 (2023: $513,000) was paid to the minority shareholders of
Noetic Group Pty Ltd, a partly owned subsidiary of Atturra Limited, with the remainder being paid to Atturra Holdings Pty
Ltd and FTS NHC Pty Ltd that was eliminated on consolidation.
Franking credits
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Franking credits available for subsequent financial years based on a tax rate of 30%
19,711
15,865
The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for:
• franking credits that will arise from the payment of the amount of the provision for income tax at the reporting date
• franking debits that will arise from the payment of dividends recognised as a liability at the reporting date
• franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date
Accounting policy for dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of Atturra Limited.
Atturra Annual Report 2024
64
Notes to the consolidated financial statements
Note 26. Financial instruments
Financial risk management objectives
Atturra Group’s risk management is predominantly controlled by a central finance department headed by the Group
CFO under the policies approved by the Board. Atturra Group’s finance team identifies, evaluates and hedges financial
risks in close cooperation with Atturra Group’s five CGUs. Atturra Group uses a variety of methods to measure different
types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign
exchange and other price risks and ageing analysis for credit risk.
Market risk
Foreign currency risk
Atturra Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk
through foreign exchange rate fluctuations.
Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated
in a currency that is not Atturra Group’s functional currency. Atturra Group’s foreign currency transactions are
predominantly payments to offshore suppliers for invoiced services. Payment terms are typically less than one month
and consequently involve minimal foreign exchange risk. Atturra Group had no material supplier or customer contracts
that were denominated in foreign currencies.
As there is minimal exposure, foreign currency risk is not hedged.
Price risk
Atturra Group is not exposed to any significant price risk.
Interest rate risk
Atturra Group’s main interest rate risk arises from long-term borrowings. Borrowings obtained at variable rates
expose Atturra Group to interest rate risk. Borrowings obtained at fixed rates expose Atturra Group to fair value interest
rate risk. Atturra Group maintains minimal long-term borrowings to manage this risk.
Atturra Group’s exposure to interest rate risk arises predominantly from assets bearing variable interest rates.
As interest income does not make up the main source of revenue, the management expects no significant interest
rate risk on these balances.
Amounts payable to related parties, trade and sundry payables and trade and other receivables are not impacted by
movements in interest rates.
Management believes that Atturra Group’s overall exposure to interest rate movements is not material.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to
Atturra Group. Atturra Group has a strict code of credit, including obtaining agency credit information, confirming
references and setting appropriate credit limits. The maximum exposure to credit risk at the reporting date to
recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in
the statement of financial position and notes to the financial statements. Atturra Group does not hold any collateral.
Liquidity risk
Atturra Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities
by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets
and liabilities.
The responsibility for liquidity risk management rests with the Board, who assess Atturra Group’s short, medium and long
term funding and liquidity management requirements. Atturra Group manages liquidity risk by maintaining adequate
reserves, borrowing facilities and instruments and by continuously monitoring forecast and actual cash flows.
Atturra Annual Report 2024
65
Notes to the consolidated financial statements
Maturities of financial liabilities
The tables below analyse Atturra Group’s financial liabilities into relevant maturity groupings based on their contractual
maturities for all non-derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal
their carrying balances as the impact of discounting is not significant.
Contractual
maturities of
financial liabilities
at 30 June 2024
Carrying
amount
$’000
Less than
6 months
$’000
6 – 12
months
$’000
Between
1 and 2
years
$’000
Between
2 and 5
years
$’000
Over
5 years
$’000
Total
contractual
cash flows
$’000
Non-derivatives
Trade and other
payables
76,976
70,383
889
1,798
3,906
–
76,976
Borrowings
14,494
193
202
285
13,814
–
14,494
Lease liabilities
12,310
1,508
1,324
2,474
6,791
2,949
15,046
Contingent
consideration
7,440
5,445
1,600
395
–
–
7,440
Total non-derivatives
111,220
77,529
4,015
4,952
24,511
2,949
113,956
Contractual
maturities of
financial liabilities
at 30 June 2023
Carrying
amount
$’000
Less than
6 months
$’000
6 – 12
months
$’000
Between
1 and 2
years
$’000
Between
2 and 5
years
$’000
Over
5 years
$’000
Total
contractual
cash flows
$’000
Non-derivatives
Trade and other
payables
41,339
41,339
–
–
–
–
41,339
Borrowings
5,352
–
–
–
5,352
–
5,352
Lease liabilities
10,196
1,475
1,445
2,651
4,949
849
11,369
Contingent
consideration
8,784
3,592
–
5,445
395
–
9,432
Total non-derivatives
65,671
46,406
1,445
8,096
10,696
849
67,492
Atturra Annual Report 2024
66
Notes to the consolidated financial statements
Note 27. Fair value measurement
Fair value hierarchy
The following tables detail Atturra Group’s assets and liabilities, measured or disclosed at fair value, using a three level
hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
Level 1:
Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly
Level 3: Unobservable inputs for the asset or liability
Consolidated – 30 June 2024
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Other liabilities
Contingent consideration
–
–
7,440
7,440
Total liabilities
–
–
7,440
7,440
Consolidated – 30 June 2023
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Other liabilities
Contingent consideration
–
–
8,784
8,784
Total liabilities
–
–
8,784
8,784
There were no transfers between levels during the financial year.
The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their
fair values due to their short-term nature.
The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current
market interest rate that is available for similar financial liabilities.
Atturra Annual Report 2024
67
Notes to the consolidated financial statements
Valuation techniques for fair value measurements categorised within level 3
The contingent consideration payable relates to acquisition of subsidiaries, refer to note 34 for further details. The fair
value of the contingent consideration is estimated by calculating the present value of the future expected cash flows.
The valuation model considers the present value of the expected future payments, discounted using a risk-adjusted
discount rate. The contingent consideration is measured on a bi-annual basis to determine the fair value.
Fair value at
Subsidiary/
Business acquired
30 June 2024
$’000
30 June 2023
$’000
Significant
unobservable inputs
Relationship of unobservable inputs
to fair value
Silverdrop
600
–
Risk-adjusted
discount rate – 5%
(30 June 2023 – 5%)
The estimated fair value would increase
(decrease) if the risk adjusted discount rate
were lower (higher).
Sabervox Pty Ltd
1,000
–
Risk-adjusted
discount rate – 5%
(30 June 2023 – 5%)
The estimated fair value would increase
(decrease) if the risk adjusted discount rate
were lower (higher).
Noetic Group Pty Ltd
–
600
Risk-adjusted
discount rate – 5%
(30 June 2023 - 5%)
The estimated fair value would increase
(decrease) if the risk-adjusted discount rate
were lower (higher).
Kettering
Professional Services
Pty Ltd
1,240
2,055
Risk-adjusted
discount rate – 5%
(30 June 2023 – 5%)
The estimated fair value would increase
(decrease) if the risk-adjusted discount rate
were lower (higher).
Hayes Information
Systems and
Communications
Pty Ltd
3,000
4,219
Risk-adjusted
discount rate – 5%
(30 June 2023 – 5%)
The estimated fair value would increase
(decrease) if the risk-adjusted discount rate
were lower (higher).
The Somerville
Group Pty Ltd
1,600
1,910
Risk-adjusted
discount rate – 5%
(30 June 2023 – 5%)
The estimated fair value would increase
(decrease) if the risk-adjusted discount rate
were lower (higher).
Total
7,440
8,784
Level 3 assets and liabilities
Movements in level 3 assets and liabilities during the current and previous financial year are set out below:
Consolidated
Contingent
consideration
$’000
Balance at 1 July 2022
10,289
Expense recognised in profit or loss
385
Additions
1,910
Settlement
(3,800)
Balance at 30 June 2023
8,784
Expense recognised in profit or loss
(52)
Additions
3,000
Settlement
(4,292)
Balance at 30 June 2024
7,440
Applying a discount rate range of 5% across the each of the contingent consideration payments results in a range of
$100,000 to $200,000 of potential movement in contingent consideration.
Atturra Annual Report 2024
68
Notes to the consolidated financial statements
Accounting policy for fair value measurement
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and
transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the
fair value measurement.
Note 28. Key management personnel disclosures
Compensation
The aggregate compensation made to Directors and KMPs of Atturra Group is set out below:
Consolidated
30 June 2024
$
30 June 2023
$
Short-term employee benefits
1,224,430
1,250,615
Post-employment benefits
65,146
64,066
Share-based payments
176,096
108,417
Long-term benefits
13,538
21,409
1,479,210
1,444,507
Note 29. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Crowe Audit Australia, the
auditor of Atturra Limited.
Consolidated
30 June 2024
$
30 June 2023
$
Audit services – Crowe Audit Australia
Audit or review of the financial statements
284,000
250,000
Note 30. Contingent liabilities
Atturra Group has given bank guarantees as at 30 June 2024 of $1,652,000 (30 June 2023: $945,000) to various landlords.
Note 31. Commitments
Atturra Group had no capital purchase commitments at 30 June 2024. (30 June 2023: nil).
Note 32. Related party transactions
Parent entity
Atturra Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 35.
Atturra Annual Report 2024
69
Notes to the consolidated financial statements
Associates
Interests in associates are set out in note 36.
Key management personnel
Disclosures relating to KMPs are set out in note 28 and the remuneration report included in the Directors’ report.
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
30 June 2024
$
30 June 2023
$
Sale of goods and services:
Sale of goods to other related party
248,695
360,628
Payment for goods and services:
Payment for services from other related party
386,292
41,068
As at 14 June 2024, Atturra Group sold two of its subsidiaries Liberty Technologies Pty Ltd and UREA Corp of Australia Pty
Ltd to parties related to Shan Kanji.
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Consolidated
30 June 2024
$
30 June 2023
$
Current receivables:
Trade receivables from Kanji Group Pty Ltd
–
15,950
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Atturra Annual Report 2024
70
Notes to the consolidated financial statements
Note 33. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
30 June 2024
$’000
30 June 2023
$’000
Profit after income tax
332
456
Total comprehensive income
332
456
Statement of financial position
Parent
30 June 2024
$’000
30 June 2023
$’000
Total current assets
2,836
350
Total assets
207,104
127,741
Total current liabilities
–
–
Total liabilities
13,800
–
Net assets
193,304
127,741
Equity
Issued capital
190,067
125,922
Share-based payments reserve
2,351
1,265
Retained earnings
886
554
Total equity
193,304
127,741
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity has entered into cross guarantees in relation to the debts of its subsidiaries.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2024 and 30 June 2023.
Capital commitments – Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 and 30 June 2023.
Material accounting policy information
The accounting policies of the parent entity are consistent with those of Atturra Group, as disclosed in note 1, except for
the following:
• Investments in subsidiaries are accounted for at the fair value of the shares issued during the IPO process, which
was $0.50 per share, less any impairment, in the parent entity.
• Investments in associates are accounted for at cost, less any impairment, in the parent entity.
• Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
Atturra Annual Report 2024
71
Notes to the consolidated financial statements
Note 34. Business combinations
Silverdrop Education Pty Ltd
On 20 July 2023, Atturra Limited announced to the ASX that a wholly owned subsidiary, Galaxy 42 Pty Ltd, had entered
into a binding sale and purchase agreement to acquire the business and certain assets of Silverdrop Education Pty Ltd
(Silverdrop), a specialist HR and payroll consulting firm. The maximum purchase consideration is $3,300,000. $2,120,000
was settled on completion, $500,000 of Atturra Limited shares were issued to the Silverdrop vendors (577,367 shares
at an issue price $0.87) and there is additional earn out consideration of up to $600,000 in cash subject to Silverdrop
achieving performance hurdles based on audited EBIT results for the 10 months to 30 June 2024. The purchase
consideration was funded from the Westpac debt facility. The transaction was completed on 30 August 2023.
The acquired business contributed revenue of $2,009,000 and profit after tax of $666,000 to Atturra Group from
31 August 2023 to 30 June 2024. The contributed revenue and profit after tax from 1 July 2023 to 30 June 2024 has not
been disclosed as the Atturra Group did not purchase the shares of the company. The goodwill of $3,340,000 relates
predominantly to the key management, specialised know-how of the workforce, employee relationships, competitive
position and service offerings that do not meet the recognition criteria as an intangible asset at the date of acquisition.
The values identified in relation to the business acquisition of Silverdrop Education are provisional as at 30 June 2024 as
permitted by AASB 3 Business Combinations. Any true ups required to fair value of assets and liabilities taken on will be
reflected as at 31 December 2024.
Details of the acquisition are as follows:
Fair value
$’000
Trade and other payables
(33)
Employee benefits
(87)
Net liabilities acquired
(120)
Goodwill
3,340
Acquisition-date fair value of the total consideration transferred
3,220
Representing:
Cash paid or payable to vendor
2,120
Atturra Limited shares issued to vendor
500
Contingent consideration
600
3,220
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
3,220
Less: contingent consideration
(600)
Less: shares issued by Company as part of consideration
(500)
Net cash used
2,120
Atturra Annual Report 2024
72
Notes to the consolidated financial statements
Sabervox Pty Ltd
On 6 September 2023, Atturra Holdings Pty Ltd, a wholly owned subsidiary of Atturra Limited, entered into a share
sale agreement to acquire 100% of the ordinary shares of Sabervox Pty Ltd (Sabervox) and its controlled entities for a
maximum purchase consideration of $7,500,000. $4,000,000 was settled on completion in cash with a working capital
adjustment of $148,000 resulting in a net cash payment of $3,852,000, $1,000,000 of Atturra Limited shares were issued
to the Sabervox vendors (1,176,471 shares at an issue price $0.85) and an earn out consideration of up to $2,500,000 in
cash subject to Sabervox achieving performance hurdles based on audited EBITDA results for the 12 months ended
30 September 2024. The transaction completed on 29 September 2023.
The acquired business contributed revenue of $4,137,000 and profit after tax of $368,000 to Atturra Group from 30 September
2023 to 30 June 2024. If the acquisition occurred on 1 July 2023, the full year contributions would have been revenue of
$5,516,000 and a profit after tax of $441,000 respectively. The goodwill of $5,570,000 relates predominantly to customer
relationships, software, the key management, specialised know-how of the workforce, employee relationships, competitive
position and service offerings that do not meet the recognition criteria as an intangible asset at the date of acquisition.
The values identified in relation to the acquisition of Sabervox are provisional as at 30 June 2024 as permitted by
AASB 3 Business Combinations. Any true ups required to fair value of assets and liabilities taken on will be reflected as
at 31 December 2024.
Details of the acquisition are as follows:
Fair value
$’000
Cash and cash equivalents
220
Trade and other receivables
514
Inventories
13
Other current assets
27
Property, plant and equipment
425
Right-of-use assets
288
Customer relationships
2,758
Trade and other payables
(574)
Deferred tax liability
(1,015)
Employee benefits
(244)
Other current liabilities
(417)
Other non-current liabilities
(213)
Net assets acquired
1,782
Goodwill
5,570
Acquisition-date fair value of the total consideration transferred
7,352
Representing:
Cash paid or payable to vendor
3,852
Atturra Limited shares issued to vendor
1,000
Contingent consideration
2,500
7,352
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
7,352
Less: cash and cash equivalents
(220)
Less: contingent consideration
(2,500)
Less: shares issued by Company as part of consideration
(1,000)
Net cash used
3,632
Atturra Annual Report 2024
73
Notes to the consolidated financial statements
Techtonics Group Limited
On 26 September 2023, Anatas Pty Ltd, a wholly owned subsidiary of Atturra Limited, entered into a share sale
agreement to acquire 100% of the ordinary shares of Techtonics Group Limited (Techtonics) for a purchase
consideration of $1. There is no earn out consideration for the transaction. The transaction completed on
29 September 2023.
The acquired business contributed revenue of $2,559,000 and loss after tax of $37,000 to Atturra Group from
30 September 2023 to 30 June 2024. If the acquisition occurred on 1 July 2023, the full year contributions would
have been revenue of $3,302,000 and a loss after tax of $385,000 respectively.
The values identified in relation to the acquisition of Techtonics Group Limited are provisional as at 30 June 2024
as permitted by AASB 3 Business Combinations. Any true ups required to fair value of assets and liabilities taken on
will be reflected as at 31 December 2024.
Details of the acquisition are as follows:
Fair value
$’000
Trade and other receivables
326
Prepayments
38
Property, plant and equipment
98
Customer relationships
368
Software
818
Bank overdraft
(635)
Trade and other payables
(408)
Deferred tax liability
(103)
Employee benefits
(79)
Other current liabilities
(76)
Net assets acquired
347
Gain on bargain purchase
(347)
Acquisition-date fair value of the total consideration transferred
–
Atturra Annual Report 2024
74
Notes to the consolidated financial statements
Cirrus Networks Holdings Limited
On 11 September 2023, Atturra Holdings Pty Ltd, a wholly owned subsidiary of Atturra Limited, entered into a binding
scheme implementation deed to acquire 100% of the ordinary shares of Cirrus Networks Holdings Limited (Cirrus) and
its controlled entities for a purchase consideration of $58,617,000. $44,568,000 was settled in cash and $14,048,900
was newly issued Atturra Limited shares (15,937,505 shares at an issue price of $0.8815). The transaction completed
on 11 December 2023.
The acquired business contributed revenue of $25,695,000 and profit after tax of $2,348,000 to Atturra Group from
11 December 2023 to 30 June 2024. If the acquisition occurred on 1 July 2023, the full year contributions would have
been revenue of $43,830,000 and a loss after tax of $1,948,000 respectively. The loss pre completion is primarily related
to one off adjustments such as the write off of goodwill as part of the purchase price allocation exercise and the write
off of a deferred tax asset.
The values identified in relation to the acquisition of Cirrus Networks Holdings Limited are provisional as at 30 June 2024
as permitted by AASB 3 Business Combinations. Any true ups required to fair value of assets and liabilities taken on will
be reflected as at 31 December 2024.
Details of the acquisition are as follows:
Fair value
$’000
Cash and cash equivalents
9,103
Trade and other receivables
11,719
Property, plant and equipment
534
Right-of-use assets
925
Customer relationships
14,567
Deferred tax asset
1,991
Trade and other payables
(17,638)
Deferred tax liability
(4,370)
Employee benefits
(1,654)
Lease liability
(991)
Other non-current liabilities
(492)
Net assets acquired
13,694
Goodwill
44,923
Acquisition-date fair value of the total consideration transferred
58,617
Representing:
Cash paid or payable to vendor
44,568
Atturra Limited shares issued to vendor
14,049
58,617
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
58,617
Less: cash and cash equivalents
(9,103)
Less: shares issued by Company as part of consideration
(14,049)
Net cash used
35,465
Atturra Annual Report 2024
75
Notes to the consolidated financial statements
Accounting policy for business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether equity
instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments
issued, or liabilities incurred by Atturra Group to former owners of the acquiree and the amount of any non-controlling
interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured
at either fair value or at the proportionate share of the acquiree’s identifiable net assets. All acquisition costs are
expensed as incurred to profit or loss.
On the acquisition of a business, Atturra Group assesses the financial assets acquired and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic conditions, Atturra
Group’s operating or accounting policies and other pertinent conditions in existence at the acquisition-date.
Where the business combination is achieved in stages, Atturra Group remeasures its previously held equity interest
in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying
amount is recognised in profit or loss.
Contingent consideration to be transferred by Atturra Group is recognised at the acquisition-date fair value.
Subsequent changes in the fair value of the contingent consideration classified as an asset or liability, after the
acquisition date, is recognised in profit or loss. Contingent consideration classified as equity is not remeasured and its
subsequent settlement is accounted for within equity.
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling
interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing
investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value
is less than the fair value of the identifiable net assets acquired, being a bargain purchase to Atturra Group, the
difference is recognised as a gain directly in profit or loss by Atturra Group on the acquisition-date, but only after a
reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the
acquiree, if any, the consideration transferred and Atturra Group’s previously held equity interest in the acquiree.
Business combinations are initially accounted for on a provisional basis. Atturra Group retrospectively adjusts the
provisional amounts recognised and also recognises additional assets or liabilities during the measurement period,
based on new information obtained about the facts and circumstances that existed at the acquisition-date. The
measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when Atturra
Group receives all the information possible to determine fair value.
Atturra Annual Report 2024
76
Notes to the consolidated financial statements
Note 35. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in
accordance with the accounting policy described in note 1:
Ownership interest
Name
Principal place
of business/
Country of incorporation
30 June 2024
%
30 June 2023
%
Anatas Pte Ltd
Singapore
100.00
100.00
Anatas Pty Ltd
Australia
100.00
100.00
Atturra Advisory Group Pty Ltd (previously Noetic Group Pty Ltd)*
Australia
100.00
–
Atturra Asia Ltd
Hong Kong
100.00
100.00
Atturra Holdings Pty Ltd*
Australia
100.00
100.00
Atturra Limited (United Kingdom)
United Kingdom
100.00
100.00
Atturra Operations Pty Ltd
Australia
100.00
100.00
Atturra Personnel Pty Ltd
Australia
100.00
100.00
Atturra Services Pty Ltd (previously FTS Resourcing Pty Ltd)
Australia
100.00
100.00
Boab Energy Pty Ltd*
Australia
100.00
–
Chartsmart Consulting Pty Ltd
Australia
100.00
100.00
Cirrus Networks (ACT) Pty Ltd
Australia
100.00
–
Cirrus Networks (Canberra) Pty Ltd
Australia
100.00
–
Cirrus Networks (Victoria) Pty Ltd
Australia
100.00
–
Cirrus Networks (WA) Pty Ltd
Australia
100.00
–
Cirrus Networks Holdings Pty Ltd
Australia
100.00
–
Connexxion Pty Ltd*
Australia
100.00
100.00
Cubic Consulting Pty Ltd
Australia
100.00
100.00
ESAM Consultants Pty Ltd
Australia
100.00
100.00
Foundation Technology Services Pty Ltd
Australia
100.00
100.00
FTS Data & AI Pty Ltd*
Australia
100.00
100.00
FTS NHC Pty Ltd*
Australia
100.00
100.00
FTS Nominees Pty Ltd*
Australia
100.00
100.00
FTS PHC Pty Ltd*
Australia
100.00
100.00
FTS VHC Pty Ltd*
Australia
100.00
100.00
FTSG Pty Ltd*
Australia
100.00
100.00
Galaxy 42 Group Pty Ltd*
Australia
100.00
100.00
Galaxy 42 Pty Ltd
Australia
100.00
100.00
Hammond Street Developments Pty Ltd
Australia
100.00
100.00
Hayes Information Systems and Communications Pty Ltd
Australia
100.00
100.00
Kettering NZ Limited
New Zealand
100.00
100.00
Kettering Professional Services Pty Ltd
Australia
100.00
100.00
Kobold Group Pty Ltd
Australia
100.00
100.00
Atturra Annual Report 2024
77
Notes to the consolidated financial statements
Ownership interest
Name
Principal place
of business/
Country of incorporation
30 June 2024
%
30 June 2023
%
L7 Solutions Pty Ltd*
Australia
100.00
–
Mentum Systems Pty Ltd
Australia
100.00
100.00
Noetic Solutions Pty Ltd
Australia
100.00
80.04
Regional IT Newcastle Pty Ltd
Australia
100.00
–
Sabervox Pty Ltd
Australia
100.00
–
SME Gateway Pty Ltd
Australia
100.00
100.00
Techtonics Group Limited
New Zealand
100.00
–
The Somerville Group Pty Ltd
Australia
100.00
100.00
Veritec Pty Ltd
Australia
100.00
100.00
*
Dormant during the year.
During the year ended 30 June 2024 the Atturra Group acquired the remaining interests in Noetic Group Pty Ltd
(now renamed to Atturra Advisory Group Pty Ltd) and Noetic Solutions Pty Ltd. The Group now owns 100% of both
companies as at 30 June 2024 (Ownership Interest at 30 June 2023: 80.04%).
Note 36. Interests in associates
Interests in associates are accounted for using the equity method of accounting. Information relating to associates
that are material to Atturra Group are set out below:
Ownership interest
Name
Principal place of business/
Country of incorporation
30 June 2024
%
30 June 2023
%
Protegic Pty Ltd
Australia
49.00
49.00
Summarised financial information
30 June 2024
$’000
30 June 2023
$’000
Summarised statement of financial position
Current assets
975
1,543
Non-current assets
1,151
1,118
Total assets
2,126
2,661
Current liabilities
605
219
Total liabilities
605
219
Net assets
1,521
2,442
Summarised statement of profit or loss and other comprehensive income
Revenue
5,430
7,580
Expenses
(5,797)
(7,460)
(Loss)/profit before income tax
(367)
120
Other comprehensive income
–
–
Total comprehensive income
(367)
120
Atturra Annual Report 2024
78
Notes to the consolidated financial statements
Contingent liabilities
There were no contingent liabilities at 30 June 2024 and 30 June 2023.
Note 37. Reconciliation of profit after income tax to net cash from operating activities
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Profit after income tax expense for the year
9,731
10,643
Adjustments for:
Depreciation and amortisation
6,432
2,282
Make good provision
(311)
–
Gain on lease variation
(73)
–
Gain on disposal of non-current assets
(46)
–
Net loss on deferred considerations
52
–
Gain on bargain purchase
(347)
–
Share-based payments
1,086
1,155
Share of profit – associates
(116)
(72)
Change in operating assets and liabilities:
Increase in trade and other receivables
(22,573)
(6,424)
Increase in inventories
(853)
(755)
(Increase)/decrease in deferred tax assets
(660)
887
Increase in contract assets
(317)
(3)
Increase in trade and other payables
16,941
1,306
Increase in provision for income tax
1,174
3,589
Increase/(decrease) in other provisions
1,724
(2,139)
Net cash from operating activities
11,844
10,469
Note 38. Non-cash investing and financing activities
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Additions to right-of-use assets
1,296
3,665
Shares issued under employee share plan
–
376
Shares issued through acquisition of subsidiaries
15,549
1,999
16,845
6,040
Atturra Annual Report 2024
79
Notes to the consolidated financial statements
Note 39. Earnings per share
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Profit after income tax
9,731
10,643
Non-controlling interest
53
(402)
Profit after income tax attributable to the owners of Atturra Limited
9,784
10,241
Number
Number
Weighted average number of ordinary shares used in calculating
basic earnings per share
272,472,290
217,557,863
Adjustments for calculation of diluted earnings per share:
Performance rights over ordinary shares
5,431,482
4,609,286
Weighted average number of ordinary shares used in calculating
diluted earnings per share
277,903,772
222,167,149
Cents
Cents
Basic earnings per share
3.59
4.71
Diluted earnings per share
3.52
4.61
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Atturra Limited, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of additional ordinary shares that would have been outstanding assuming
conversion of all dilutive potential ordinary shares.
Note 40. Share-based payments
Atturra Limited has two incentive schemes in place, namely the Long-Term Incentive Plan (LTIP) and Exempt Employee
Share Plan (EESP).
Long-Term Incentive Plan
Atturra Limited established a LTIP to align the interests of eligible employees with shareholders through the sharing of
a personal interest in the future growth and development of the Atturra Limited. A total of 1,817,058 performance rights
have been granted to the CEO (Stephen Kowal) under the LTIP. Other executives have been granted a total of 3,890,180
performance rights under the LTIP. Further details of the valuation methodology are set out in the significant accounting
policies note.
The fair value of the Stephen Kowal’s performance rights was determined using the Monte Carlo option pricing model.
The fair value of performance rights granted to other executives under the LTIP has been determined be the Atturra
Limited share price at the date of issue. No dividend assumptions have been taken into account during the date of
record due to the future growth strategy of Atturra Group.
Atturra Annual Report 2024
80
Notes to the consolidated financial statements
Exempt Employee Share Plan
Atturra Limited has also established an EESP to align the interests of eligible employees of Atturra Group with
shareholders. 374,227 shares have been issued under the Share Plan as at 30 June 2024. A fair value of $1.00 was used
to calculate the share-based payment expense.
Set out below are summaries of the performance rights granted under the plans:
Long-term incentive plan
Number of performance rights
30 June 2024
Outstanding at the beginning of the financial year
4,609,286
Additions during the financial year
1,906,921
Expired/forfeited during the financial year
(808,969)
Outstanding at the end of the financial year
5,707,238
Exercisable at the end of the financial year
–
30 June 2024
Grant date
Date of
record
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
22/12/2021
31/12/2024
$0.00
375,000
–
–
–
375,000
22/12/2021
31/12/2025
$0.00
375,000
–
–
–
375,000
29/04/2022
01/11/2024
$0.00
1,691,000
–
–
–
1,691,000
28/07/2022
01/11/2024
$0.00
182,910
–
–
–
182,910
29/07/2022
01/11/2024
$0.00
1,302,762
–
–
(618,630)
684,132
07/10/2022
31/12/2025
$0.00
311,307
–
–
–
311,307
07/10/2022
31/12/2026
$0.00
311,307
–
–
–
311,307
13/04/2023
31/12/2025
$0.00
60,000
–
–
(60,000)
–
13/10/2023
15/12/2026
$0.00
–
222,222
–
–
222,222
13/10/2023
15/12/2027
$0.00
–
222,222
–
–
222,222
21/10/2023
01/11/2026
$0.00
–
1,462,477
–
(130,339)
1,332,138
4,609,286
1,906,921
–
(808,969)
5,707,238
Atturra Annual Report 2024
81
Notes to the consolidated financial statements
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year
was 3 years.
30 June 2023
Grant date
Date of
record
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
22/12/2021
31/12/2024
$0.00
375,000
–
–
–
375,000
22/12/2021
31/12/2025
$0.00
375,000
–
–
–
375,000
29/04/2022
01/11/2024
$0.00
1,800,000
–
–
(109,000)
1,691,000
28/07/2022
01/11/2024
$0.00
–
182,910
–
–
182,910
29/07/2022
01/11/2024
$0.00
–
1,302,762
–
–
1,302,762
07/10/2022
31/12/2025
$0.00
–
311,307
–
–
311,307
07/10/2022
31/12/2026
$0.00
–
311,307
–
–
311,307
13/04/2023
31/12/2025
$0.00
–
60,000
–
–
60,000
2,550,000
2,168,286
–
(109,000)
4,609,286
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year
was 3.00 years (2023: 3.00 years).
For the 444,444 performance rights granted during the current financial year to Stephen Kowal (two tranches of
222,222 shares), the valuation model inputs used to determine the fair value at the grant date, are as follows:
Grant date
Date of
record
Share price
at grant
date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest
rate
Fair value
at grant
date
13/10/2023
15/12/2026
$0.90
$0.00
50.00%
–
3.82%
$0.479
13/10/2023
15/12/2027
$0.90
$0.00
50.00%
–
3.82%
$0.482
Herbert To was granted 39,100 performance rights on 21 October 2023. The only performance criteria is continued
employment with the Atturra Group until 1 November 2026. The share price of Atturra Limited at the grant date of $0.81
was used to determine fair value.
Set out below is a summary of the share-based payment expense for the financial year:
30 June 2024
$’000
30 June 2023
$’000
Long-Term Incentive Plan – Key management personnel
169
108
Long-Term Incentive Plan – Other Executives
917
671
Exempt Employee Share Plan
–
376
Long-term incentive share allotment
–
–
1,086
1,155
Atturra Annual Report 2024
82
Notes to the consolidated financial statements
Accounting policy for share-based payments
Equity-settled share-based compensation benefits are provided to employees. The LTIP is for executives and Directors
and the EESP is for all other eligible employees.
Equity-settled transactions are awards of shares, options or performance rights over shares, that are provided to
employees in exchange for the rendering of services.
The cost of equity-settled transactions are measured at fair value on grant date.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the date of record. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts
already recognised in previous periods.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If the non-vesting condition is within the control of Atturra Group or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of Atturra Group or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless
the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled
and new award is treated as if they were a modification.
Note 41. Events after the reporting period
On 15 July 2024, Atturra Limited announced to the ASX that a wholly owned subsidiary, Atturra Advisory Pty Ltd
entered in a binding sale and purchase agreement to acquire the business of Exent Holdings Pty Ltd (Exent) and
its controlling entities, an advisory and consulting firm specialising in business transformation in technology and
data. The maximum total purchase consideration is $8,000,000, with $6,000,000 payable upfront in cash and up
to $2,000,000 for earn-out/post-completion consideration, subject to Exent achieving performance hurdles for
FY25. The transaction was completed on 31 July 2024. At the time of signing of the Annual Report the Purchase Price
Allocation is yet to be completed..
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly
affect Atturra Group’s operations, the results of those operations, or Atturra Group’s state of affairs in future
financial years.
Atturra Annual Report 2024
83
Consolidated entity disclosure statement
As at 30 June 2024
Atturra Limited Consolidated entity disclosure statement as at 30 June 2024.
Tax Residency
Entity name
Entity type
Place formed/
Country of
incorporation
Ownership
interest
%
(Australian
or Foreign)
(Foreign
Jurisdiction)
Atturra Limited
Body Corporate
Australia
100.00%
Australian
N/A
Anatas Pte Ltd
Body Corporate
Singapore
100.00%
Australian
N/A
Anatas Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Atturra Advisory Group Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
Atturra Asia Ltd
Body Corporate
Hong Kong
100.00%
Australian
N/A
Atturra Holdings Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
Atturra Limited (United Kingdom)
Body Corporate
United Kingdom 100.00%
Australian
N/A
Atturra Operations Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Atturra Personnel Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Atturra Services Pty Ltd
(Previously FTS Resourcing Pty Ltd)
Body Corporate
Australia
100.00%
Australian
N/A
Boab Energy Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
Chartsmart Consulting Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Cirrus Networks (ACT) Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Cirrus Networks (Canberra) Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Cirrus Networks (Victoria) Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Cirrus Networks (WA) Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Cirrus Networks Holdings Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Connexxion Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
Cubic Consulting Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
ESAM Consultants Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Foundation Technology
Services Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
FTS Data & AI Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
FTS NHC Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
FTS Nominees Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
FTS PHC Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
FTS VHC Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
FTSG Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
Galaxy 42 Group Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
Atturra Annual Report 2024
84
Tax Residency
Entity name
Entity type
Place formed/
Country of
incorporation
Ownership
interest
%
(Australian
or Foreign)
(Foreign
Jurisdiction)
Galaxy 42 Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Hammond Street
Developments Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Hayes Information Systems and
Communications Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Kettering NZ Limited
Body Corporate
New Zealand
100.00%
Australian
N/A
Kettering Professional Services Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Kobold Group Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
L7 Solutions Pty Ltd*
Body Corporate
Australia
100.00%
Australian
N/A
Mentum Systems Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Noetic Solutions Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Regional IT Newcastle Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Sabervox Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
SME Gateway Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Techtonics Group Limited
Body Corporate
New Zealand
100.00%
Foreign
New Zealand
The Somerville Group Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
Veritec Pty Ltd
Body Corporate
Australia
100.00%
Australian
N/A
*
Dormant as at year end.
Atturra Annual Report 2024
85
Directors’ declaration
In the Directors’ opinion:
• 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 1 to the financial statements;
• the attached financial statements and notes give a true and fair view of Atturra Group’s financial position as at
30 June 2024 and of its performance for the financial year ended on that date;
• there are reasonable grounds to believe that Atturra Limited will be able to pay its debts as and when they become
due and payable, and
• the information disclosed in the attached consolidated entity disclosure statement is true and correct.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
Shan Kanji
Chairman
23 August 2024
Atturra Annual Report 2024
86
Independent auditor’s report
Crowe Audit Australia
ABN 13 969 921 386
Level 24, 1 O’Connell Street
Sydney NSW 2000
Main +61 (02) 9262 2155
Fax +61 (02) 9262 2190
www.crowe.com.au
Some of the Crowe personnel involved in preparing this document may be members of a professional scheme approved under Professional
Standards Legislation such that their occupational liability is limited under that Legislation. To the extent that applies, the following disclaimer
applies to them. If you have any questions about the applicability of Professional Standards Legislation Crowe’s personnel involved in preparing
this document, please speak to your Crowe adviser.
Liability limited by a scheme approved under Professional Standards Legislation.
The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an
equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership
is external audit, conducted via the Crowe Australasia external audit division and Unison SMSF Audit. All other professional services offered by
Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.
Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a
separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe
Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or
partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe Audit Australia, an affiliate of Findex (Aust) Pty Ltd.
© 2024 Findex (Aust) Pty Ltd
87
Independent Auditor’s Report to the Members of
Atturra Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Atturra Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial statements, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Atturra Annual Report 2024
87
Independent auditor’s report
Independent Auditor’s Report
Atturra Limited
© 2024 Findex (Aust) Pty Ltd
www.crowe.com.au
88
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Key Audit Matter
How we addressed the Key Audit Matter
Business Combinations – Note 34
The Group acquired the following entities during the
year:
•
Silverdrop Education Pty Limited
•
Sabervox Pty Limited and its Controlled
Entities
•
Techtonics Group Limited
•
Cirrus Networks Holdings Limited and its
Controlled Entities
The accounting for the acquisition of a business is
complex. Australian Accounting Standards require the
Group to identify all assets, liabilities and contingent
liabilities of the acquired businesses and estimate the
fair value at the date of acquisition.
The acquisitions were a key audit matter because they
are significant transactions to the Group, and the Group
made significant judgements when accounting for the
acquisitions, including the measurement of separately
identifiable intangible assets and the measurement of
contingent consideration.
We critically analysed the Group’s business
combination supporting documentation to ensure its
appropriateness with AASB 3: Business
Combinations, including performing the following
procedures:
a)
developed an understanding of the
relevant purchase agreements.
b)
obtained the purchase price allocation
prepared by an independent valuer and,
using a valuation expert to assist us,
evaluated the reasonability of estimates
and judgements used within the fair value
assessment.
c)
agreed the amount of the purchase
consideration paid and/or payable to the
transaction agreement, bank statements
and ASX notices. Where there was
contingent consideration, we assessed the
appropriateness of management’s
assumptions in measuring the fair value of
the consideration.
d)
assessed the reasonableness of the note
disclosures in light of the requirements of
the Australian Accounting Standards.
Goodwill – Note 15
Goodwill is required by Australian Accounting
Standards to be tested annually for impairment at the
Cash Generating Unit (CGU) level.
The Group performed an impairment assessment of
goodwill by calculating the value in use for each CGU
using discounted cash flow models.
The impairment assessment was a key audit matter
due to the size of the goodwill balance and the
judgement involved in determining the value in use of
each CGU.
We critically analysed management’s supporting
documentation, including performing the following
procedures:
a)
assessed whether the Group’s
identification of CGUs was consistent with
our knowledge of the operations, internal
reporting lines and level of integration of
the acquired businesses
b)
discussed and evaluated management’s
basis for using the significant assumptions
and inputs used in the value in use model,
and challenged its appropriateness.
c)
tested the significant assumptions used by
management including discount rates and
growth rates by comparing to observable
Atturra Annual Report 2024
88
Independent Auditor’s Report
Atturra Limited
© 2024 Findex (Aust) Pty Ltd
www.crowe.com.au
89
market data, having components reviewed
with the assistance of a valuation expert
and reviewing performance against
approved budgets.
d)
checked the mathematical and historical
accuracy of the forecasts.
e)
interrogated the value in use model using
different inputs as a means to perform
sensitivity analysis.
f)
evaluated the reasonableness of the note
disclosures in light of the requirements of
Australian Accounting Standards.
Revenue – Note 4
Revenue is significant to the financial statements and
disaggregated across multiple entities.
This was a key audit matter given the materiality of the
amount, high volume of transactions, as well it being a
prescribed risk under the Australian Auditing Standards.
We performed the following audit procedures
amongst others:
a)
understood and evaluated management’s
processes and controls relating to the
recording and recognition of revenue.
b)
evaluated the Group’s approach to
revenue recognition in light of the
requirements of the Australian Accounting
Standards.
c)
performed substantive analytical
procedures to understand the movement
in revenue streams.
d)
testing of a sample of revenue
transactions, comparing transactions to a
range of supporting evidence.
e)
evaluated the reasonableness of the
Group’s disclosure on revenue in light of
the requirements of Australian Accounting
Standards.
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Group’s Annual Report for the year ended 30 June 2024, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Atturra Annual Report 2024
89
Independent auditor’s report
Independent Auditor’s Report
Atturra Limited
© 2024 Findex (Aust) Pty Ltd
www.crowe.com.au
90
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
(b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view and is free from material misstatement, whether due to fraud or error; and
(b) the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in
a manner that achieves fair presentation.
Atturra Annual Report 2024
90
Independent Auditor’s Report
Atturra Limited
© 2024 Findex (Aust) Pty Ltd
www.crowe.com.au
91
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the group as a basis for forming an
opinion on the group financial report. We are responsible for the direction, supervision and review
of the audit work performed for the purposes of the Group audit. We remain solely responsible for
our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our auditor’s report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in pages 19 to 28 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the remuneration report of Atturra Limited, for the year ended 30 June 2024, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
Crowe Audit Australia
Ash Pather
Senior Partner
23 August 2024
Sydney
Atturra Annual Report 2024
91
Shareholder information
The shareholder information set out below was applicable as at 5 August 2024.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Performance rights
Ordinary shares
Number
of holders
Units
% of total
shares
issued
Number
of holders
Units
% of total
shares
issued
1 to 1,000
–
–
–
208
141,093
0.05
1,001 to 5,000
–
–
–
230
1,424,189
0.46
5,001 to 10,000
–
–
–
190
2,133,899
0.68
10,001 to 100,000
20
1,087,603
19.10
349
11,776,575
3.76
100,001 and over
17
4,619,635
80.90
49
297,295,033
95.05
Total
37
5,707,238
100.00
1,026
312,770,789
100.00
Holding less than a
marketable parcel
–
–
–
72
27,421
–
Atturra Annual Report 2024
92
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
Number
held
% of total
shares
issued
DRIFTWOOD IT PTY LIMITED
115,724,809
37.00
263 FINANCE PTY LIMITED
58,184,398
18.60
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
53,725,743
17.18
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
14,753,190
4.72
YAZARSKIA PTY LIMITED
6,075,055
1.94
SWK FAMILY PTY LIMITED
5,976,731
1.91
CITICORP NOMINEES PTY LIMITED
2,981,509
0.95
MR ANDRIS BALMAKS
2,957,405
0.95
PETER JAMES MURPHY
2,931,985
0.94
J&B FUND MANAGEMENT PTY LTD J&B SUPERANNUATION FUND A/C >
2,850,872
0.91
INFOGATE PTY LTD
2,801,130
0.90
MICROEQUITIES ASSET MANAGEMENT PTY LTD MICROEQTS NANOCAP NO 11 A/C >
2,296,562
0.73
MERB INVESTMENTS PTY LTD
2,121,113
0.68
CPU SHARE PLANS PTY LTD ATA EST UNALLOCATED A/C >
1,821,559
0.58
UBS NOMINEES PTY LTD
1,682,325
0.54
MAYHAM PTY LTD
1,500,987
0.48
VINMAN NOMINEES PTY LTD THE VINMAN A/C >
1,275,000
0.41
MCNYGHT PTY LTD
1,176,471
0.38
MR STEPHEN KOWAL
1,096,212
0.35
STUART ALTHAUS RETIREMENT PTY LTD
1,030,283
0.33
282,963,339
90.48
Unquoted equity securities
There are 5,707,238 unquoted Performance Rights on issue.
Atturra Annual Report 2024
93
Shareholder information
Substantial holders
There are no substantial holders in the Company.
Ordinary shares
Number held
% of total
shares issued
Date
of notice
Shan Kanji, combined holdings of Driftwood IT Pty Ltd,
263 Finance Pty Ltd and Shan Kanji
173,909,207
55.60%
30 January
2024
Richmond Hill Capital Pty Ltd and associates
26,091,219
8.34%
26 June 2024
Restricted securities
Of the 312,770,789 shares on issue, 42,330,951 shares are restricted securities. The restricted securities will be released
from voluntary escrow as follows:
• 38,930,053 shares to be released from voluntary escrow on 1 October 2024
• 1,753,838 shares to be released from voluntary escrow on 30 November 2024
• 823,530 shares to be released from voluntary escrow on 3 April 2025
• 823,530 shares to be released from voluntary escrow on 3 October 2025
On-market buy-back
There is no on-market buy-back scheme in operation for the Company’s quoted shares.
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll
each share shall have one vote.
Performance Rights
There are no voting rights attached to Performance Rights.
Corporate Governance
The Company’s Corporate Governance Statement as at 30 June 2024 as approved by the Board can be viewed at
https://investors.atturra.com/governance/.
Stock exchange on which the Company’s securities are quoted
The Company’s listed equity securities are quoted on the Australian Securities Exchange.
Review of operations
A review of operations is contained in the Directors’ report.
Annual general meeting
As advised to the ASX on 16 August 2024, the annual general meeting of the Company is scheduled for Monday,
21 October 2024.
Atturra Annual Report 2024
94
Corporate directory
Directors
Shan Kanji
Stephen Kowal
Nicole Bowman
Jonathan Rubinsztein
Company secretary
Kunal Shah
Registered office
Level 33, Aurora Place
88 Phillip Street
Sydney
NSW 2000
Principal place
of business
Level 2
10 Bond Street
Sydney
NSW 2000
Telephone +61 2 9657 0999
Share register
Computershare Investor
Services Pty Limited
6 Hope St
Ermington
NSW 2115
Auditor
Crowe Audit Australia
Level 24,
1 O’Connell St
Sydney
NSW 2000
Solicitors
HWL Ebsworth
Level 14, Australia Square
264 – 278 George Street
Sydney
NSW 2000
Bankers
Westpac Banking
Corporation
Stock exchange
listing
Atturra Limited shares are
listed on the Australian
Securities Exchange
(ASX code: ATA)
Website
atturra.com/au-en/
Business objectives
In accordance with Listing Rule 4.10.19 Atturra Limited
confirms that Atturra Group has been utilising the cash
and assets in a form readily convertible to cash that it held
at the time of its admission to the Official List of ASX since its
admission to the end of the reporting period in a way that is
consistent with its business objectives.
Corporate Governance Statement
Atturra Limited and the Board are committed to achieving
and demonstrating the highest standards of corporate
governance, Atturra Limited has reviewed its corporate
governance practices against the Corporate Governance
Principles and Recommendations (4th Edition) published
by the ASX Corporate Governance Council.
Atturra Group’s Corporate Governance Statement, which
sets out the corporate governance practices that were
in operation during the financial year and identifies
and explains any Recommendations that have not
been followed and ASX Appendix 4G are released to
the ASX on the same day the Annual Report is released.
The Corporate Governance Statement and Corporate
Governance Compliance Manual can be found on Atturra
Limited’s website at investors.atturra.com/governance/.
Atturra Annual Report 2024
95