CPT Global Limited
Annual Report
www.cptglobal.com
CPT Global FY23 Annual Report
FY2023
1
Table of Contents
Chairman’s Review ............................................................................. 3
Managing Director’s Review ........................................................... 5
Director’s Report ................................................................................. 9
Remuneration Report (Audited) .................................................. 19
Auditor’s Independence Declaration ........................................ 28
Consolidated Financial Statements ............................................ 29
Notes to the Financial Statements ............................................. 34
Directors’ Declaration ..................................................................... 74
Independent Auditor’s Report ..................................................... 75
Corporate Information ................................................................... 79
ASX Additional Information .......................................................... 80
CPT Global FY23 Annual Report
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Chairman’s Review
Dear Fellow CPT Global Shareholder,
Despite a profitable first half, CPT’s business had a disappointing final six months and recorded
an overall loss for the 2023 financial year. The Australian business was adversely impacted by the
completion of some large projects, while uncertain economic conditions in the US delayed the
commencement and signing of contracts. However, under the active leadership of our CEO Luke
Tuddenham, much positive work has been progressed with the development of a new business
plan, strengthening of CPT’s management team, establishment of some major new partnerships,
and the updating of our systems and procedures.
CPT has a loyal team of specialist technical consultants and is well positioned to continue to
assist some of the world’s largest companies solve their complex IT problems. The foundations
for a strong and prosperous future are being put in place and our focus is to ensure that we
actively sell our services to clients worldwide in an ever more complex and dynamic
environment.
CPT’s Australian business increased sales slightly in 2023 but margins were lower due to the
sales mix. Since Covid restrictions were relaxed, it has taken our sales force time to rebuild the
new business pipeline, and active efforts are underway to bolster our sales team and improve its
performance. Once again in 2023, five of our ten largest clients were based in Australia.
After the strong growth in recent years, revenue from CPT’s international business slipped in FY
2023 particularly in the second half as clients delayed committing to new contracts and
extensions due to the uncertain economic environment. However, margins improved and
momentum in revenue lifted towards the end of the FY. Our efforts to bolster the international
sales team continue and our sales pipeline is building. For the fifth year in a row, CPT’s largest
client was in the USA and five of our top ten clients in 2023 were based in North America.
In 2023 our revenue fell by 6% to $28.1m with a modest increase from the Australian operations
more than offset by a reduction in revenue in the Northern Hemisphere. CPT recorded a net loss
before tax of $1.5m as against profit before tax of $2.1m in the prior year. Our 2023
performance was impacted by the fall in revenue, particularly in the US which has higher
margins, and additional costs relating to enhancing our talent and capabilities and some non-
recurring business expenses. In addition, we impaired CAD$1.0m (AUD$1.1m) related to
Canadian tax.
CPT Global FY23 Annual Report
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CPT paid a fully franked interim dividend of 0.6 cents per share in April 2023 but will not pay a
final dividend this year. However, CPT intends to return to our traditional dividend payout ratio
as soon as circumstances permit. At financial year end, we had a cash position of $1.2m as
against $4m in the prior year.
While the FY23 financial results were disappointing, CPT retains a strong focus on delivering
solutions for our client’s complex IT problems across the world. Our immediate focus is to
enhance the performance of our sales teams to expand the scale of our existing relationships
and to add new clients. During the year, we have strengthened and established new strategic
partnerships to further expand our sales pipeline and drive revenue growth. Furthermore, our
strategic initiative in software has progressed to the testing phase at some of CPT’s established
customers and offers potential to grow the scope and scale of our global business.
Under the active leadership of our CEO Luke Tuddenham, CPT’s team has been strengthened
and initiatives introduced to further enhance our culture, to mentor our younger talent, and to
drive the success of our team. During the year, we were pleased to appoint Steve Targett and
Deborah Hadwen as directors of CPT, and both are already making a significant contribution to
the Board. Steve brings many years of international management experience in the banking
industry while Deborah has successfully led and grown major IT service providers in the
Australian and international markets.
In conclusion I would like to thank all CPT’s staff together with my fellow directors for their
continuing dedication and commitment to serving our clients and positioning CPT for an
exciting and prosperous future.
Fred Grimwade
Chairman
CPT Global FY23 Annual Report
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Managing Director’s
Review
Dear Shareholders,
As we conclude the fiscal year ending on 30 June 2023 and begin our 30th year in business, I am
pleased to share the Managing Director’s Review for CPT Global Limited and its subsidiaries
(CPT Global).
After my first full year serving as CEO and Managing Director, the company has continued its
strategic progress as we set the stage for future opportunities. After a strong start to the year,
the downturned economy presented numerous challenges for our business and clients in Q3.
However, the team has stayed aligned to our vision of being a premier partner and consultancy
that helps companies tackle their toughest IT challenges.
As we look back at FY2023, it is important to note several important milestones:
• We successfully launched several complex projects for clients, which includes deploying a
new service offering with our largest client.
• Strategic partnerships were forged and strengthened with leading vendors to support
the deployment of an even deeper suite of services and solutions for CPT Global.
• Led by our founder and former CEO, the proprietary software initiative we announced
last year is advancing, and we expect testing to be completed by early next year.
• New hires have advanced our team's capabilities across sales, marketing, product and
practice management and technical leadership, enhancing our ability to meet market
and client demand.
Despite the challenging economic climate and some delayed projects, our customers and
partners continue to require our services. Cost is also a focus, as we continue to evolve our
model and adapt to market and business conditions. The following review takes a deeper look at
last year's accomplishments and our future plans.
Achieving Success with Clients
In FY2023, our team achieved numerous successes by continuing to focus on the client
experience and delivering results.
CPT Global FY23 Annual Report
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These major projects included:
• Completing a successful multi-year database modernisation program at a Fortune 500
US financial services company.
• Continuing our work with long-term clients as we deepen these trusted relationships by
expanding our portfolio of services.
• Delivering several large mainframe Risk Reward engagements across the banking,
healthcare, and insurance industries.
• Successfully completing several Delivery Governance and Test Assurance engagements
across state government, education, and online employment industries.
Our team was also proactive in strengthening client relationships by expanding our team's
capabilities and incorporating client and market feedback into our operations.
Overcoming Project Challenges
Despite a profitable first half of 2023, where CPT Global saw considerable success across the
business, there were some challenges in the third quarter that impacted our second half.
Most of the challenges we faced in FY2023 were connected to the economic uncertainty that
persists within the industry. While CPT Global is not immune to it, we are still set up well for
success, and playing to our core strengths and offerings as a more competitive business takes
shape.
Rather than drastically shifting our focus to new or untested services, we are laser focused on
what we do best – delivering proven offerings that have made CPT Global successful. Our
strength has always been CPT Global's team of experts, and leveraging this talent to drive
growth and innovation is key, as it will help us stay competitive and empower us to continue
delivering on client expectations.
Solidifying Partnerships
In the past year, CPT Global also forged a strategic partnership with Amazon Web Services
(AWS) to expand our business pipeline. This collaboration joins other notable partnerships with
Accenture, Deloitte, and Google.
The AWS partnership opens new opportunities for our team to get in front of more clients at a
faster pace, and better positions us to support large-scale projects for enterprise-level
customers. It also unlocks a wide range of additional services for CPT Global.
In FY2023, we saw a major surge in partnerships driven by market needs. Our established
partnerships have always been an integral part of our success, and our new AWS relationship
should drive even more opportunities for us moving forward.
CPT Global FY23 Annual Report
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Launching Proprietary Software
Last year we announced the development of proprietary testing software led by our founder and
former CEO and current Executive Director, Gerry Tuddenham. We are pleased to share an
update on how this project is progressing.
CPT Global's new capability is currently being discussed with clients, and we expect testing to be
completed by early next year. This innovative solution is designed to:
• Enhance the efficiency of our clients' mainframe environments.
•
• Mitigate risks while accelerating time to market for internal IT projects.
Improve their team’s testing capabilities across the full development lifecycle.
In addition to bringing great value to our clients, this software will be an invaluable addition to
our portfolio of solutions and services in the coming years.
Strengthening Our Team and Culture
In the past year, we have added strategic talent to marketing and sales, strengthening CPT
Global's capacity to engage in new markets, secure additional accounts, and better serve our
existing clients.
This year, we welcomed our first in-house marketing expert to help transform our outreach
approach. We expect this team addition will enhance our visibility, strengthen our reputation,
and ultimately help drive our growth strategy.
Also contributing to our success is CPT Global's mainframe mentoring program. This program
pairs new hires with seasoned employees, fostering a culture of learning and professional
growth, which has always been part of our DNA and why we have been successful. As this young
talent taps into our team's experience and knowledge, it helps protect the business against
retiring senior talent. Being proactive with professional development has proven to be
invaluable in ensuring our new hires are integrated seamlessly and ready to make a positive
impact.
In FY2023, we invested in our sales team. While increasing our sales staff will prove to be
meaningful in the long term, it takes time for them to be fully integrated into our process, and
we expect to see results from this investment over the next 12 months.
In our journey towards excellence, we have also made significant strides in strengthening our
Board. Steve Targett (January 23) and Deborah Hadwen (July 23) have joined the Board, bringing
their unique perspectives, extensive experience, and commitment to our company's mission.
Their contributions to our strategic direction have been valuable, and we are confident that our
strengthened Board will play a pivotal role in guiding us toward our short and long-term goals.
CPT Global FY23 Annual Report
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Looking Toward the Future
As we begin FY2024, our vision is clear: to continue delivering exceptional service and innovative
solutions to clients leveraging our experience from the past 30 years. Our team has proven that
despite an unpredictable economic climate and shifting client needs, CPT Global is adaptable,
resilient, and ready for the future.
Between our strategic alliances, proprietary software, and talented workforce, the company is
building a strategic edge that helps us continue to meet and exceed client expectations. With
the support of the Board and the entire leadership team, we will stay focused on our core
principles and values to be well-positioned for growth ahead.
Once again, I want to express my sincere gratitude to our dedicated team, as well as to our loyal
clients for their unwavering support and trust in CPT Global. We are excited about the future and
look forward to another year of successes, partnerships, and growth. Thank you for being part of
our journey.
Luke Tuddenham
Managing Director, CEO
Aspen, Colorado
28 September 2023
CPT Global FY23 Annual Report
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Director’s Report
The directors submit the financial report of CPT Global (the Company) and its controlled entities
(the Group) for the full year ended 30 June 2023.
Directors
The directors of CPT Global for the year ending 30 June 2023 and up until the date of this report
are:
Fred Grimwade
Chairman
Fred chairs CPT’s Finance and Audit Committee and is a member of the
Remuneration Committee. He is a director of specialist corporate advisory
and investment firm Fawkner Capital and and is also a non-executive
director of ASX-listed companies Australian United Investment Company
Limited and XRF Scientific Ltd where he is Chairman. Fred was a director
of Select Harvests Limited until he retired on 27 February 2023
Fred was a commercial lawyer and later worked with Goldman, Sachs & Co. in New York, and
Sydney. He also served as Company Secretary and General Manager of Shareholder Relations at
Western Mining Corporation. In 1996, he joined Colonial Mutual as Group Company Secretary
and General Manager for Legal Affairs and subsequently became Head of Private Capital for
Colonial First State Investments.
Fred was Managing Director of the Colonial Agricultural Company from 1998 to 2006 and a
non-executive director of AWB Limited from 2008 to 2010. Fred is a senior fellow and life
member of the Financial Services Institute of Australasia (Finsia), and a Fellow of the Australian
Institute of Company Directors and Chartered Secretaries Australia.
CPT Global FY23 Annual Report
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Luke Tuddenham
CEO
Luke Tuddenham is a technology leader with over 18 years of experience in
driving growth and success for Fortune 500 clients. As CEO of CPT Global,
he has played an instrumental role in the company's evolution, expanding
its service offerings and delivery across the globe to meet the changing
needs of industry-leading clients.
Luke started his career in Melbourne with Andersen in 2000 and joined CPT Global in 2005 from
PricewaterhouseCoopers. Luke joined CPT overseeing the company’s Australian and US markets,
before becoming Vice President in 2011. In 2016, Luke was named President of the Americas
and Europe, where he played a critical role in helping the company generate record-breaking
revenue and profit margins in FY2021.
A highly accomplished and respected leader, Luke is known for his strategic thinking,
operational excellence, and commitment to customer success. Under Luke's leadership, CPT
Global has achieved record-breaking revenue and profit margins. He is also a passionate
advocate for a collaborative and inclusive work culture.
As a former athlete, Luke is competitive both on and off the field, and is a strong advocate for
teamwork and collaboration. One of Luke’s trademarks is his dedication to surrounding himself
with like-minded positive and motivated individuals.
Luke holds a Bachelor of Business Information Systems and earned his Certificate in Business
Excellence at Columbia University's Business School. He is also a member of the Australian
Computer Society and the Australian Institute of Company Directors
Gerry Tuddenham
Executive Director
Gerry is the founder of and a major shareholder in CPT. He has more than
40 years of experience in IT consulting and is a hands-on technologist with
a reputation for delivering practical solutions.
Gerry is widely known as a technical specialist in performance tuning,
capacity planning, and testing in IBM mainframes, with additional expertise in expert systems,
transaction processors, middleware, and database management systems.
Gerry was the lead developer of Expetune and Expetest utilities, which automate a number of
intricate tuning and testing activities. He has worked internationally in a broad range of
industries, with a focus on financial services and telecommunications. Gerry is a member of the
Australian Institute of Company Directors and the Finance and Audit Committee.
CPT Global FY23 Annual Report
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Steve Targett
Non-Executive Director
As a Non-Executive Director, Steve chairs CPT’s Remuneration Committee.
He also holds several other positions, including Chair of Member Owned
Banking Group Police and Nurses Limited, and Chair of ASX listed Pioneer
Credit Limited.
In his executive career, Steve ran large global Divisions of ANZ Bank and NAB in Australia, and
Lloyds Bank in London. Throughout his professional career, he has lived and worked in Australia,
United Kingdom, and Japan.
Steve is a member of the Australian Institute of Company Directors. Previously, he held roles as
Chair of Australian Financial Markets Association, and was the only Australian elected to the
Board of New York based International Swaps and Derivatives Association.
Deborah Hadwen
Non-Executive Director
Ms. Hadwen is an experienced Non-Executive Director, Managing Director,
and CEO with over 30 years of experience in the technology sector.
Deborah currently serves as Non-Executive Director of Ambition Group
Limited, sits on the Advisory Board for Watermark Search International, and is a member of the
Governing Council of Macquarie University, where she is also a member of its Audit and Risk
Committee and its Information Management & Technology Special Purpose Committee.
Previously, Deborah was Chief Executive Officer, Australia & New Zealand for Tata Consultancy
Services Limited (TCS), a global leader in IT services, digital and business solutions. Before TCS,
she held several commercial roles at Compuware Asia Pacific Pty Ltd in Australia and Asia.
Deborah is Managing Director of Apoidea Group Pty Ltd, an advisory firm.
CPT Global FY23 Annual Report
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Mark Licciardo
Company Secretary
Appointed on 22 June 2022, Mark Licciardo is the founder of Mertons
Corporate Services, now part of Acclime Australia and is responsible for
Acclime Australia’s Listed Services Division.
Mark is also an ASX-experienced director and chair of public and private
companies, with expertise in the listed investment, infrastructure, biotechnology, and digital
sectors. He currently serves as a director on a number of Australian company boards as well as
foreign controlled entities and private companies.
*Nigel Sandiford, Non-Executive Director resigned 1 August 2022
**Steve Targett, Non-Executive Director was appointed 24 January 2023
***Deborah Hadwen, Non-Executive Director appointed 1 July 2023
CPT Global FY23 Annual Report
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Operating & Financial Review
The revenue for the year ended 30 June 2023 was $28.1m, a 6% decrease on previous year’s
revenue of $29.9m. The net loss before tax & including impairment was $1.5m ($0.4m loss
before impairment), with a net loss after tax & impairment of $2.1m ($1.0m loss before
impairment). FY2023 second half was a loss predominantly driven by Q3, resulting from market
conditions impacting project extensions and approval of new business
The table below shows the performance over the last three reporting periods:
Revenue
(Loss) / profit before tax
Tax expense
(Loss) / profit after tax
Impairment of financial assets*
(Loss) / profit after tax & before impairment
FY2023
$M
28.1
(1.5)
(0.6)
(2.1)
1.0
(1.0)
HY2023
$M
16.2
0.8
(0.3)
0.5
-
0.5
FY2022
$M
29.9
2.1
(0.6)
1.5
-
1.5
*Impairment relates to the CAD non-cash write down net of tax
Notable points for FY2023:
• Australia revenue of $15.4m up on FY2022 ($14.9m) with a lower margin from business
mix and unusually high leave post Covid.
• Northern Hemisphere revenue of $12.7m down on FY2022 ($15m) with improved
margin.
• Operating costs increased as we invested in talent and capabilities as well as from several
non-recurring business expenses, including Canadian tax review, investment in back-
office systems, and implementation of strategic initiatives. Also, insurance and occupancy
costs increased.
• Short-term incentives lower on the back of business performance.
• Financing costs declined as we actively managed our cash balances across jurisdictions.
• Following a comprehensive review, an impairment of CAD$1.018m (AUD$1.141m) related
to Canadian tax was required. The closing balance held as a non-current receivable is
CAD$0.581m (AUD$0.660m), which is the probability weighted amount currently being
pursued for recovery from the CRA and associated individuals these relate to.
Basic loss per share amounted to 4.92 cents per share (diluted loss 4.92 cents per share).
Compared to FY2022 basic profit amounted to 3.54 cents per share (diluted profit 3.49 cents per
share).
CPT Global FY23 Annual Report
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Financial Position
CPT Global’s performance has resulted in a decrease of net assets of $2.4m compared to $5.3m
in 2022.
Movements in the balance sheet:
• Trade and other receivables decreased $3.5m, due to impairment of Canadian tax
receivable and lower client receivables.
• Trade and other payables decreased by $3.9m, predominately from settling outstanding
payable balances and offsetting Canadian tax related balances.
Cash Flow
CPT Global had $1.2m in cash as of 30 June 2023 and $4m on 30 June 2022. Settlement of
outstanding payables, lower revenues with associated margins, and increase in operating costs
contributed to the reduced cash reserves. We continue to actively manage our cash balances,
utilise our funding facility, and monitor aged receivables to effectively manage our cash flow.
Capital Management
No final dividend has been declared for 30 June 2023. However, it is our intention to return to
our traditional dividend payout ratio in future.
A fully franked interim dividend of 0.60 cents per share was paid on 14 April 2023.
On 30 June 2023, funds drawn down against debtor funding was $0.8m, leaving a balance of
$0.3m available to draw down.
Interests in the Shares and Options of the Company and
Related Bodies Corporate
As at the date of this report, the interests of the directors in the shares and performance rights
of the Company were:
Ordinary
Shares
Performance
Rights
Shares
Under
Option
Shares Issued
on Exercise of
Option
Nigel Sandiford (resigned 1 August
2022)
Fred S Grimwade
Luke Tuddenham
Gerry Tuddenham
Steve Targett
Deborah Hadwen
309,058
-
-
1,000,000
-
718,200
1,269,619
13,568,127
38,000
112,001
-
-
-
-
CPT Global FY23 Annual Report
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-
-
-
14
Earnings Per Share
Earnings Per Share
Basic earnings per share
Diluted earnings per share
Cents
(4.92)
(4.92)
Dividends
A fully franked interim dividend of 0.60 cents per share was paid on 14 April 2023. The total
value of the interim dividend was $250,675. No final dividend has been declared for 30 June
2023. However, it is our intention to return to our traditional dividend payout ratio in future.
Corporate Information
Nature of Operation and Principal Activities
The principal activities of the Group during the financial year were the provision of specialist IT
consultancy services.
There have been no significant changes in those activities during the year.
Disclosure of Material Business Risk
Risk
Description
Mitigation
Strategic Accounts
Loss of key strategic accounts.
Proactively fostering relationships, exceeding delivery
expectations, and exploring more diverse channels such as
strategic partnerships, proprietary software, and marketing
campaigns to enhance our reach and pipeline growth.
Cyber Security
Unauthorised access to systems or data,
and associated system degradation,
reputational, legal, personnel, and
financial consequences.
Cyber and data security has been prioritised internally.
There is a dedicated working group established and
enhanced system security, training and monitoring being
rolled out.
Delivery Quality
Assurance
Not delivering to an acceptable standard
nor expected outcome of clients, as the
size and complexity of programs
increases.
Formalised governance exists for large programs covering
all phases of the project lifecycle.
Liquidity
Management
Less cash due to unexpected / one off
costs, slow down of business and delays
in payment by major accounts.
Regular monitoring, forecasting and reporting of cash and
aged receivables, and access to debtor’s financing facility as
required.
Succession Planning
Inability to adequately cover and replace
Executive Team & Key Management
Personnel
Succession plans and coverage models under development
to address short- and long-term risk.
CPT Global FY23 Annual Report
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Employees
The Group employed 132 employees and contractors as at 30 June 2023 (2022: 138 employees
and contractors).
Significant Changes in the State of Affairs
No significant changes in the state of affairs of the Company occurred during the financial year.
Significant Events After the Balance Date
No other matters or circumstances have arisen since the end of the financial year which
significantly affected or may significantly affect the operations of the Group, the results of those
operations, or the state of affairs of the Group in future financial years.
Likely Developments and Expected Results
Likely developments, future prospects and business strategies of the operations of the Group
are detailed in the Chairman’s Statement and Managing Director’s Review on pages 3 and 5,
respectively.
Environmental Regulation and Performance
The Company’s operations are not regulated by any significant environmental regulation under
a law of the Commonwealth or of a State or Territory.
Indemnification and Insurance of Directors and Officers
The Company has paid premiums to insure the current directors and officers against liabilities
for costs and expenses incurred by them in defending any legal proceedings arising out of their
conduct while acting in the capacity of director and officer of the Company, other than conduct
involving a willful breach of duty in relation to the Company. The total premium paid was
$96,332.04.
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Director’s Meetings
The number of meetings of directors (including meetings of committees of directors) held
during the year and the number of meetings attended by each director were as follows:
Directors’ Meetings Finance & Audit
Committee
Meetings
Fred S Grimwade
Nigel Sandiford*
Luke Tuddenham
Gerry Tuddenham
Steve Targett
11
1
11
11
5
11
1
11
11
5
2
-
2
2
1
* Nigel Sandiford resigned on 1 August 2022
Remuneration &
Nomination
Committee
Meetings
1
-
1
1
1
1
-
1
1
1
2
-
2
2
1
** Due to the composition of the Board, the remuneration and nomination functions were dealt
with by the Board for the reporting period
Committee Membership
As at the date of this report, the Company had a Finance and Audit Committee and a
Remuneration and Nomination Committee of the Board of Directors.
Members acting on the committees of the Board during the year were:
Audit
Fred Grimwade (Chair)
Gerry Tuddenham
Nigel Sandiford (resigned 1 August 2022)
Remuneration and Nomination
Steve Targett (Chair, appointed 24 January 2023)
Fred Grimwade
Gerry Tuddenham
Nigel Sandiford (resigned 1 August 2022)
Proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or
intervene in any proceedings to which the Company is a party for the purpose of taking
responsibility on behalf of the company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
Non-Audit Services
The Board of Directors, in accordance with advice from the Finance and Audit Committee, is
satisfied that the provision of non-audit services during the year is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001. The directors are
CPT Global FY23 Annual Report
17
satisfied that the services disclosed below did not compromise the external auditor’s
independence for the following reasons:
•
• all non-audit services are reviewed and approved by the Finance and Audit Committee
prior to commencement to ensure they do not adversely affect the integrity and
objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to
auditor independence in accordance with APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) set by the Accounting Professional &
Ethical Standards Board.
• The following fees for non-audit services were paid/payable to SW Accountants &
Advisors Pty Ltd (an affiliated entity of SW Audit) during the year ended 30 June 2023:
o Taxation compliance services: $74,181
o Other services $3,500
CPT Global FY23 Annual Report
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Remuneration
Report (Audited)
The Remuneration Report for the year ended 30 June 2023 outlines the Director and executive
remuneration arrangements of CPT Global in accordance with the requirements of the
Corporations Act 2001 and its regulations. For the purposes of this Report, key management
personnel (KMP) of CPT Global are defined as those persons having authority and responsibility
for planning, directing, and controlling the major activities of CPT Global, directly, or indirectly,
including any Director of the parent Company.
Person to who the report applies
The remuneration disclosures in this Report cover the following persons:
Fred Grimwade
Nigel Sandiford
Steve Targett
Luke Tuddenham
Gerry Tuddenham
Nathan Marburg
Yasas Jayasuriya
Non-Executive Chairman
Non-Executive Director (resigned 1 August 2022)
Non-Executive Director (appointed 24 January 2023)
CEO
Executive Director
Chief Financial Officer (appointed 26 April 2023)
Chief Financial Officer (resigned 19 May 2023)
Remuneration Policy
The Remuneration and Nomination Committee of the Board of Directors is responsible for
determining and reviewing compensation arrangements for the directors, the managing
director, and the executive team. The Remuneration and Nomination Committee assesses the
appropriateness of the nature and amount of remuneration of such officers on a periodic basis
by reference to relevant employment market conditions with the overall objective of ensuring
maximum stakeholder benefit from the retention of a high-quality Board and executive team.
The outcomes of the remuneration structure are expected to comply with Executive Share and
Option Scheme Guidelines. The payment of bonuses, performance rights and other incentive
payments are reviewed by the Remuneration and Nomination Committee annually as part of the
review of executive remuneration and a recommendation is put to the Board for approval. All
bonuses, performance rights and incentives must be linked to pre-determined performance
CPT Global FY23 Annual Report
19
criteria. The Board can exercise its discretion in relation to approving the incentives, bonuses
and performance rights and can recommend changes to the Committee’s recommendations.
Any changes must be justified by reference to measurable performance criteria. Details of such
incentives awarded during the year are detailed below.
To assist in achieving these objectives, the Remuneration and Nomination Committee links the
nature and amount of executive directors’ and officers’ remuneration to the Company’s financial
and operational performance and shareholders’ value.
Performance-Based Remuneration
Executives have short-term ‘at risk’ cash bonuses, the payment of which depends on the
executive meeting their KPIs. Additional bonuses for exceptional performance in relation to the
pre-agreed KPIs may be paid up to a maximum of three times the target bonus. The KPIs are set
annually after consultation with the directors and executives. The measures are specifically
tailored to the areas where each executive has a level of control. The KPIs target areas the Board
believes hold the greatest potential for expansion and profit, covering financial and non-
financial goals, for both the short and long-term. They can include financial, people, client,
strategy, and risk measures.
Executive directors can receive performance rights with vesting conditions tied to the cumulative
profit before tax and total shareholder return.
The performance-based remuneration does not include any clawback provisions.
Company Performance, Shareholder Wealth and Director and
Executive Remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders,
directors, and executives. There have been two methods applied in achieving this aim, the first
being annual salary reviews based on key performance indicators, and the second being the
issue of shares and options to selected directors and executives to encourage the alignment of
personal and shareholder interests.
During FY2023 executive bonuses moved in line with the performance of the business as net
profit was below target.
The following table shows the net profit and dividends for the last five years for the listed
Company, as well as the share price at the end of the respective financial years.
There has been a profit in three of the last 5 years with one-time events impacting years 2020
(goodwill impairment) and 2023 (Canadian tax impairment). The board believes the
remuneration policy is effective and can be linked to current year’s results.
CPT Global FY23 Annual Report
20
2019
$1.0m
$0.20
0.75c
2020
($3.3m)
$0.115
1.25c
2021
$3.4m
$0.50
5.0c
2022
$1.5m
$0.37
2.5c
2023
($2.0m)
$0.24
0.60c
Net profit/(loss)
Share price at year end
Dividends paid and
declared
Basic and diluted
earnings per share
Franking percentage
(4.92)
(4.92)
25%
During the year, no shares were purchased as part of the share buyback. The share price during
the year ranged from a low of $0.22 to a high of $0.385.
(8.73)
(8.73)
25%
2.62
2.60
25%
3.54
3.49
25%
8.77
8.76
25%
Remuneration of Non-executive Directors
Non-executive Directors are entitled to a fixed fee per annum for acting as a Director of CPT
Global. No additional fees are paid for membership of an active committee.
Under CPT Global’s Constitution, Non-Executive Director’s fees cannot exceed the aggregate
cap approved by shareholders by an ordinary resolution. The current cap is $300,000 and was
adopted at the 2018 AGM. The aggregate fees paid to non-Executive directors in the 2023
financial year do not exceed the cap.
There has been no change to the fees paid to individual Non-executive Directors during or after
the year end.
Renumeration of Senior Executives
The executive directors and the executives specified in this remuneration report have their
employment conditions formalised in contracts of employment and are permanent employees
of CPT Global. The employment contracts are for a fixed term of one year and contain the
following common features:
• an annual review of the Base Salary which is dependent upon CPT Global’s performance,
the individual’s performance, and market changes. Any increase has to be approved by
the Managing Director and the Remuneration and Nomination Committee;
short term performance incentive payments are paid, dependent upon CPT Global
achieving its objectives and the individual achieving their KPIs;
•
• at CPT Global’s discretion, allowances and adjustments to Base Salary may be paid when
an Executive is required to travel on CPT Global business. Any adjustments must be
agreed in advance, documented in writing, and signed by the Executive and the
Company;
• post-employment restraints covering non-solicitation of employees, contractors, and
clients and non-competition;
• CPT Global may at its discretion elect to make payment in lieu of notice when the
contract is terminated by the employee or the Company;
CPT Global FY23 Annual Report
21
• a contract can be terminated immediately without notice by CPT Global for serious
misconduct; and
• any options not vested as at the date of termination will lapse.
Specific details of each Senior Executive’s contract of employment which applied at the end of
the financial year ending 30 June 2023 are summarised in the tables on the following pages.
Details of the nature and amount of each element of the remuneration of each director of the
Company and executive officers of the company and the Group receiving the highest
remuneration for the financial year and its comparative year are as follows:
Summary of Contracts of Employment Applicable at 30 June
2023
Position
CEO and Managing Director
Luke Tuddenham
Fixed Remuneration
Base Salary excl statutory on-costs
US$350,000
401K (incl. matching)
Medical Insurance
Non-monetary benefits
US$42,000
US$33,612
Mobile telephone, car parking, motor vehicle lease, education
expenses (until 22 Sep), executive health check, flights for family
(chairman preapproval required) and other miscellaneous expenses
Performance Based Remuneration
Annual target bonus
US$250,000
Other benefits
Post-employment benefits
Post-employment restraint
Termination
Termination benefits
Nil
Nil
12 months
3 months
US$125,000
CPT Global FY23 Annual Report
22
Position
Fixed Remuneration
Gerry Tuddenham
Executive Director
Base Salary excl statutory on-costs
$340,466
Superannuation
$27,500
Non-monetary benefits
Mobile telephone, car park, road tolls
Performance Based Remuneration
Annual target bonus
Other benefits
Post-employment benefits
N/a
Nil
Nil
Post-employment restraint
6 months
Termination
4 weeks’ notice
Termination benefits
Nil
Position
Fixed Remuneration
Base Salary
Superannuation
Nathan Marburg
Chief Financial Officer
$304,000
$27,500
Non-monetary benefits
Mobile telephone, professional subscription
Performance Based Remuneration
Annual target bonus
$40,000
Other benefits
Post-employment benefits
Nil
Nil
Post-employment restraint
6 months
Termination
2 months’ notice
Termination benefits
Nil
CPT Global FY23 Annual Report
23
Position
Fixed Remuneration
Base Salary
Superannuation
Fred Grimwade
Non-Executive Director
$77,629
$8,151
Non-monetary benefits
Professional subscription
Position
Non-Executive Director
Steve Targett
Fixed Remuneration
Base Salary
Superannuation
$67,873
$7,127
Non-monetary benefits
Professional subscription
Position
Fixed Remuneration
Base Salary
Superannuation
Deborah Hadwen
Non-Executive Director
$67,873
$7,127
Non-monetary benefits
Professional subscription
CPT Global FY23 Annual Report
24
Short-Term Benefits
Post Emp’t Benefits
Total
Performance
related
Annual &
Long
Service
Leave
$
Salary
$
Short-term
Bonus
Other
Benefits
Super
Other
Long-term
Bonus
Share Based
Payments
$
$
$
$
$
$
$
$
77,629
78,647
- - - 8,151
- - -
7,798
- -
- -
12,500
50,228
- - - 1,313
5,023
- -
-
- -
- -
28,221
- - - 2,916
- -
-
-
-
-
-
85,780
86,445
13,813
55,251
0.0%
0.0%
0.0%
0.0%
31,138
0.0%
601,405
524,796
49,132
41,492
206,453 152,218
205,510
149,038
-
-
- 112,000
- -
207,148
130,092
1,328,356
1,050,929
39.6%
31.9%
340,466
265,991
56,320
(29,766)
- 4,304
6,443
-
27,500
27,500
- - - 428,590
- -
- 270,168
0.0%
0.0%
Directors
Fred Grimwade
2023
2022
Nigel Sandiford
2023
2022
Steve Targett
2023
Luke Tuddenham
2023
2022
Gerry Tuddenham
2023
2022
Total Directors Remuneration
2023
2022
1,060,222 105,452
11,726
919,662
206,453 156,522
155,481
205,510
39,880
40,321
- 112,000
- -
207,148
130,092
1,887,677
1,462,792
27.8%
22.9%
Executive Officers
Nathan Marburg
2023
Yasas Jayasuriya
2023
Grant Sincock
2022
23,462
6,972
-
100
7,988
-
- - 38,522
0.0%
137,202
- 3,017
456
14,597
3,304
- - 158,577
1.9%
302,089
8,370
44,000
688
28,349
14,508
- - 398,004
11.1%
Total Executive Officers Remuneration
2023
2022
160,664
302,089
6,972
8,370
3,017
44,000
556
688
22,585
28,349
3,304
14,508
- - 197,098
- - 398,004
1.5%
0.0%
Total Remuneration
2023
2022
1,220,886 112,424
20,096
1,221,751
209,470 157,078
156,170
249,510
62,465
68,670
3,304
14,508
112,000
0
207,148
130,092
2,084,775
1,860,796
25.4%
20.4%
Notes
1.
2.
The elements of remuneration have been determined based on the cost to the Group.
Luke Tuddenham’s remuneration is primarily in US dollars, the amounts above have been translated into Australian dollars
at a yearly average rate.
3. Other long-term bonus for Luke Tuddenham includes a provision of $112k related to full year 2023, expected to be
granted at November 2023 AGM. These payments will only be made if the relevant performance criteria are achieved
4. Nigel Sandiford resigned on 1 August 2022
5.
6.
Yasas resigned as CFO on 19 May 2023 and was replaced by Nathan Marburg (appointed 26 April 2023)
Steve Targett was appointed as Non-Executed Director on 24 January 2023
CPT Global FY23 Annual Report
25
Performance Income as a Proportion of Total Remuneration
Executive directors and executives are paid performance-related bonuses based on set monetary
figures, rather than proportions of salary since these payments are discretionary. This has led to
the proportions of remuneration related to performance varying between individuals.
Performance Rights Granted as Remuneration
Grant Date
Granted
No.
Vested
No.
Value per
Share at
Grant Date
$
Exercise
Price
Last Exercise
Date
Luke Tuddenham
1,000,000
29/11/21
Total
1,000,000
$
-
-
$0.66
$0.00
29/11/24
-
-
Further details on the service and performance criteria attached to these rights can be found in
Note 16.
Balance at
beginning
of Period
Granted
as
Remu-
neration
Rights
Exercised
Rights
Lapsed
/Cancelled
Balance at
End of
Period
Exercisable
at End of
Period
Vested and
Unexercised
at End of
Period
Luke Tuddenham
1,000,000
Total
1,000,000
-
-
-
-
-
-
1,000,000
1,000,000
-
-
-
-
Shareholdings of Key Management Personnel
Shares held by key management personnel directly, indirectly, or beneficially including their
related parties:
Shares held in CPT Global
Limited
Balance
1 July 2021
Granted as
Remuneration
On Exercise of
Options
Net Change
Other
Balance 30
June 2022
Fred S Grimwade
Nigel Sandiford
Gerry Tuddenham
Luke Tuddenham
Specified Executives
Grant Sincock (resigned 13 May
2022)
Total
Ord
718,200
240,817
12,902,618
991,335
254,282
15,107,252
Ord
-
-
-
-
-
-
Ord
-
-
50,000
-
-
Ord
-
68,241
609,190
75,513
Ord
718,200
309,058
13,561,808
1,066,848
-
254,282
50,000
752,944
15,910,196
CPT Global FY23 Annual Report
26
Shares held in CPT Global
Limited
Balance 30
June 2022
Granted as
Remuneration
On Exercise of
Options
Net Change
Other
Balance 30
June 2023
Fred S Grimwade
Nigel Sandiford (resigned 1 August
2022)
Gerry Tuddenham
Luke Tuddenham
Steve Targett
Total
Ord
718,200
309,058
13,561,808
1,066,848
-
15,964,972
Ord
Ord
Ord
-
-
-
-
-
-
-
-
-
-
-
Ord
718,200
309,058
-
-
6,319
13,568,127
202,771
-
209,090
1,269,619
-
16,174,062
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2023 has been received
and can be found on page 28 of the directors’ report.
Rounding
The amounts contained in this report and in the financial statements have been rounded to the
nearest $1,000 (where rounding is applicable) under the option available to the Company under
ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. The
Company is an entity to which the Class Order applies.
Signed in accordance with a resolution of the directors.
Luke Tuddenham
Managing Director, CEO
Aspen, Colorado
28 September 2023
CPT Global FY23 Annual Report
27
Take the lead
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF CPT GLOBAL LIMITED
As lead auditor, I declare that, to the best of my knowledge and belief, during the year ended 30 June 2023 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.
SW Audit
Chartered Accountants
R Blayney Morgan
Partner
Melbourne, 28 September 2023
Brisbane
Level 15
240 Queen Street
Brisbane QLD 4000
T + 61 7 3085 0888
Melbourne
Level 10
530 Collins Street
Melbourne VIC 3000
T + 61 3 8635 1800
Perth
Level 18
197 St Georges Terrace
Perth WA 6000
T + 61 8 6184 5980
Sydney
Level 7, Aurora Place
88 Phillip Street
Sydney NSW 2000
T + 61 2 8059 6800
SW Audit ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards
Legislation. SW Audit is an independent member of ShineWing International Limited.
sw-au.com
28
Consolidated
Financial Statements
CPT Global FY23 Annual Report
29
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
YEAR ENDED 30 JUNE 2023
Revenue
Other income
Salaries and employee benefits
Consultants’ benefits
Depreciation and amortisation
Insurance
Finance costs
Occupancy costs
Professional Services
Other expenses
Impairment of financial assets
Foreign currency gains
Notes
3
3
30 Jun 23
$’000
28,131
10
(4,462)
(20,598)
(15)
(475)
(67)
(322)
(858)
(1,698)
(1,141)
1
30 Jun 22
$’000
29,941
16
(2,768)
(21,741)
(16)
(355)
(92)
(266)
(427)
(2,262)
-
23
(LOSS) / PROFIT BEFORE INCOME TAX
(1,494)
2,053
INCOME TAX EXPENSE
5
(566)
(581)
(LOSS) / PROFIT AFTER INCOME TAX
(2,060)
1,472
Other Comprehensive Income:
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations
Total Other Comprehensive Income/(loss) for the year, net of tax
19
19
(463)
(463)
TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE YEAR
(2,041)
1,009
(LOSS) / PROFIT ATTRIBUTABLE TO MEMBERS OF CPT GLOBAL LIMITED
(2,060)
1,472
TOTAL COMPREHENSIVE (LOSS) / INCOME ATTRIBUTABLE TO MEMBERS
OF CPT GLOBAL LIMITED
(2,041)
1,009
Basic (loss) / earnings per share (cents per share)
Diluted (loss) / earnings per share (cents per share)
17
17
(4.92)
(4.92)
3.54
3.49
The Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in
conjunction with the Notes to the Financial Statements.
CPT Global FY23 Annual Report
30
Consolidated Statement of Financial Position
AT JUNE 30 2023
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Contract assets
Other current assets
Current tax assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Deferred tax assets
Property, plant, and equipment
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Current tax liabilities
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Deferred tax liabilities
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Notes
30 Jun 23
30 Jun 22
$’000
$’000
6
7
8
9
5
7
5
10
11
5
13
5
13
14
15
1,245
3,193
1,095
658
450
6,641
662
834
34
1,530
8,171
3,800
-
1,313
5,113
-
139
139
5,252
2,919
13,919
935
(11,935)
2,919
4,087
5,119
1,318
639
-
11,163
2,262
1,200
14
3,476
14,639
8,355
52
760
9,167
121
32
153
9,320
5,319
13,818
709
(9,208)
5,319
The Consolidated Statement of Financial Position is to be read in conjunction with the Notes to
the Financial Statements.
CPT Global FY23 Annual Report
31
Consolidated Statement of Changes in Equity
YEAR ENDED 30 JUNE 2023
$’000
Issued
Capital
$’000
Accumulated
$’000
Employee
Compensation
Ordinary
Losses
Reserve
$’000
Foreign
Currency
Translation
Reserve
$’000
Total
13,033
(8,849)
1,706
(657)
5,232
-
-
-
1,472
-
1,472
-
-
-
-
(463)
(463)
1,472
(463)
1,009
-
785
-
(1,831)
-
-
-
(7)
130
-
-
-
(1,831)
778
130
785
(1,831)
123
-
(923)
Balance at 1 July 2021
Comprehensive Income
Profit for the year
Other comprehensive loss
Total comprehensive income for
the year
Transactions with owners, in their
capacity as owners
Dividends paid or provided for
Issue of shares
Share-based payments
Total transactions with owners, in
their capacity as owners
Balance at 30 June 2022
13,818
(9,208)
1,829
(1,120)
5,319
Balance at 1 July 2022
13,818
(9,208)
1,829
(1,120)
5,319
Comprehensive Income
Profit for the year
Other comprehensive income
Total comprehensive income for
the year
Transactions with owners, in their
capacity as owners
Dividends paid or provided for
Issue of shares
Share-based payments
Total transactions with owners, in
their capacity as owners
-
-
-
-
101
-
101
(2,060)
-
(2,060)
(667)
-
-
(667)
-
-
-
-
-
207
207
-
19
19
-
-
-
-
(2,060)
19
(2,041)
(667)
101
207
(359)
Balance at 30 June 2023
13,919
(11,935)
2,036
(1,101)
2,919
The Consolidated Statement of Changes in Equity is to be read in conjunction with the Notes to
the Financial Statements.
CPT Global FY23 Annual Report
32
Consolidated Statement of Cash Flows
YEAR ENDED 30 June 2023
Notes
30 Jun 23
30 Jun 22
$’000
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Income tax (paid) / refunded
30,018
(31,414)
5
(48)
(822)
NET CASH FLOWS (USED IN) / FROM OPERATING ACTIVITIES
19
(2,261)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment, software
NET CASH FLOWS USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of dividends on ordinary shares
NET CASH FLOWS USED IN FINANCING ACTIVITIES
NET DECREASE IN CASH AND CASH EQUIVALENTS HELD
Opening cash and cash equivalents
Effects of exchange rate changes on cash and cash equivalents
CLOSING CASH AND CASH EQUIVALENTS
6
(35)
(35)
(566)
(566)
(2,862)
4,087
20
1,245
29,020
(27,193)
5
(22)
(794)
1,016
(12)
(12)
(1,178)
(1,178)
(175)
4,264
(2)
4,087
The Consolidated Statement of Cash Flows is to be read in conjunction with the Notes to the
Financial Statements.
CPT Global FY23 Annual Report
33
Notes to the
Financial Statements
Year Ended 30 June 2023
1. Summary of Significant Accounting Policies
The consolidated financial statements comprise the financial statements of CPT Global Limited
(the Company) and its subsidiaries (the Group). The separate financial statements of the Parent
Entity, CPT Global Limited, have not been presented within this financial statement as permitted
by the Corporations Act 2001.
The principal activities of the Group during the financial year were the provision of specialist IT
consultancy services. The registered address and principal place of business is level 3, 818
Bourke Street, Docklands, Victoria.
The financial statements were authorised for issue on [28 September 2023] by the Board of
Directors.
Basis of Preparation
These general-purpose financial statements have been prepared in accordance with the
Corporations Act 2001, Australian Accounting Standards and Interpretations of the Australian
Accounting Standards Board and International Financial Reporting Standards as issued by the
International Accounting Standards Board. The Group is a for-profit entity for financial reporting
purposes under Australian Accounting Standards.
Material accounting policies adopted in the preparation of these financial statements are
presented below and have been consistently applied unless otherwise stated.
The financial statements, except for the cash flow information, have been prepared on an
accruals basis and is based on historical costs, modified, where applicable, by the measurement
at fair value of selected non-current assets, financial assets, and financial liabilities. All amounts
are in Australian dollars unless otherwise stated.
Current year loss
For the year ending 30 June 2023, the Group has a net loss after tax of $2,041,000 (2022: net
profit after tax of $1,009,000) and net cash flows used in operating activities of $2,261,000 (2022:
CPT Global FY23 Annual Report
34
net cash provided by operating activities $1,016,000). The directors have considered the cash
flow forecast for the next 12 months and believe it is reasonable for the financial statements to
be prepared on a going concern basis.
(a) Principles of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities, and results of the
parent (CPT Global Limited) and all the subsidiaries. Subsidiaries are entities the parent controls.
The parent controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the
entity. A list of the subsidiaries is provided in Note 21.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial
statements of the Group from the date on which control is obtained by the Group.
Intercompany transactions, balances and unrealised gains or losses on transactions between
Group entities are fully eliminated on consolidation. The accounting policies of subsidiaries have
been changed and adjustments made where necessary to ensure uniformity of the accounting
policies adopted by the Group.
The financial statements of the subsidiaries used in the preparation of these consolidated
financial statements have been prepared as of the same reporting date as the parent.
(b) Income Tax
The income tax expense for the year comprises current income tax expense/(benefit) and
deferred tax expense/(benefit).
Current income tax expense/(benefit) charged to the profit or loss is the tax payable/(receivable)
on taxable income/(loss) for the current period. Current tax liabilities/ (assets) are therefore
measured at the amounts expected to be paid to/(recovered from) the relevant taxation
authority using tax rates (and tax laws) that have been enacted or subsequently enacted by the
end of the reporting period.
Deferred income tax expense/(benefit) reflects movements in deferred tax asset and deferred tax
liability balances during the year as well as unused tax losses.
Current and deferred income tax expense/(benefit) is charged or credited directly to equity
instead of the profit or loss when the tax relates to items that are credited or charged directly to
equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. Deferred tax assets also result where amounts have been fully expensed but future
tax deductions are available. No deferred income tax will be recognised from the initial
CPT Global FY23 Annual Report
35
recognition of an asset or liability, excluding a business combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the
period when the asset is realised or the liability is settled, based on tax rates enacted or
substantively enacted at the end of the reporting period. Their measurement also reflects the
manner in which management expects to recover or settle the carrying amount of the related
asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only
to the extent that it is probable that future taxable profits will be available against which the
benefits of the deferred tax asset can be utilised.
Deferred tax assets and liabilities are not recognised for temporary differences between the
carrying amount and tax bases of investments in controlled entities where the parent entity is
able to control the timing of the reversal of the temporary differences, and it is probable that
the differences will not reverse in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and
it is intended that net settlement or simultaneous realisation and settlement of the respective
asset and liability will occur. Deferred tax assets and liabilities are offset where a legally
enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or different taxable
entities where it is intended that net settlement or simultaneous realisation and settlement of
the respective asset and liability will occur in future periods in which significant amounts of
deferred tax assets or liabilities are expected to be recovered or settled.
(c) Contract Assets
Contract assets are revenue that has not been invoiced at period end and is measured and
recognised in accordance with the policies set out in Note 8.
(d) Property, Plant, & Equipment
Each class of property, plant, and equipment is carried at cost less accumulated depreciation and
where applicable, impairment losses.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance are recognised in profit or loss during the financial period in which they are
incurred.
CPT Global FY23 Annual Report
36
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight-line basis over the asset’s
useful life to the Group commencing from the time the asset is held ready for use. Leasehold
improvements are depreciated over the shorter of either the unexpired period of the lease or
the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Leasehold Improvements
Fixtures Fittings and Equipment
Motor Vehicles
Depreciation Rate
20% to 50%
33% to 50%
12% to 20%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end
of each reporting period.
Gains and losses on disposals are determined by comparing net proceeds with the carrying
amount. These gains and losses are recognised in profit and loss.
(e) Leases
The Group assesses whether a contract is or contains a lease at inception of the contract. A
right-of-use asset and a corresponding lease liability is recognised on the balance sheet for all
lease arrangements in which the Group is the lessee, except for leases with a term of 12 months
or less and leases of low value assets. The lease payments for these leases are recognised as an
operating expense on a straight-line basis over the term of the lease unless another systematic
basis is more representative of the time pattern in which economic benefits from the leased
asset are consumed.
Lease liabilities are initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted by using the rate implicit in the:
fixed lease payments less any lease incentives receivable;
•
• variable lease payments that depend on an index or rate which are initially measured
•
•
using the index or rate at the commencement date;
the amount expected to be paid under residual guarantees;
the exercise price of purchase options if it is reasonably certain that the option will be
exercised; and
• payments of penalties for terminating a lease if the lease term reflects the exercise of an
option to terminate a lease.
Lease liabilities are presented in the borrowings line item in the consolidated statement of
financial position.
CPT Global FY23 Annual Report
37
Lease liabilities are subsequently measured by increasing the carrying amount to reflect interest
on the lease liability and reducing the carrying amount for lease payments made.
The lease liability is remeasured whenever:
•
•
the lease term has changed or there has been a change in the assessment of the exercise
of a purchase option as a result of a significant event or change in circumstances;
the lease payments change due to a change in an index or a change in expected
payment under a guaranteed residual value;
• a lease contract is modified, and the modification is not accounted for as a separate
lease.
Corresponding adjustments to the right-of-use asset are made whenever the lease liability is
remeasured. No adjustments to the lease liability were required during this financial period.
Right-of-use assets comprise the initial measurement of the lease liability, lease payments made
at or before the commencement date, less any lease incentives received and any initial direct
costs.
Subsequent measurement is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or the useful life of the underlying asset,
whichever is shorter. Depreciation starts from the commencement date of the lease.
Right-of-use assets are presented as a separate line in the consolidated statement of financial
position.
(f) Financial Instruments
Recognition and Measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the instrument. For financial assets, this is equivalent to the date that
the Group commits itself to either the purchase or sale of the asset (e.g., trade date accounting
is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the
instrument is classified ‘at fair value through profit or loss,’ in which case transaction costs are
expensed to profit or loss immediately.
Classification of Financial Assets
Financial assets recognised by the Group are subsequently measured at either amortised cost or
fair value subject to their classification. Financial assets, other than those designated and
effective as hedging instruments, are classified into the following categories:
(i) measured at amortised cost;
(ii) fair value through profit or loss; and
CPT Global FY23 Annual Report
38
(iii) fair value through other comprehensive income.
The classification of financial assets is based on both the business model for managing the
financial asset and the contractual cash flow characteristics of the financial asset. The Group
does not have any financial assets categorised as fair value through other comprehensive
income.
Classification of Financial Liabilities
Financial liabilities classified as held-for-trading, contingent consideration payable by the Group
for the acquisition of a business and financial liabilities designated at fair value through profit or
loss are subsequently measured at fair value.
All other financial liabilities recognised by the Group are subsequently measured at amortised
cost.
Impairment of Financial Assets
At the end of each reporting period, the Group tests financial assets for impairment by applying
the expected credit loss impairment model.
The Group has adopted the simplified approach under AASB 9 Financial Instruments to measure
the allowance for credit losses for receivables from contracts with customers and contract assets.
The allowance for credit losses is determined based on the lifetime expected credit losses of the
financial asset. Lifetime expected credit losses represent the credit losses that are expected to
result from default events over the life of the financial asset. The Group has no other financial
assets subject to impairment testing under AASB 9.
In applying the simplified approach under AASB 9, the Group uses a provision matrix based on
historical experience at the client and segment level, adjusted for factors that are specific to the
financial asset, as well as current and future expected economic conditions relevant to the
financial asset. The time value of money is incorporated into the measurement of expected
credit losses if it is material. There has been no change in the estimation techniques or
significant assumptions made during the reporting period.
Contractual payments more than 180 days past due are considered default events for the
purpose of measuring expected credit losses based on the historical experience of the Group.
The measurement of expected credit losses reflects the Group’s expected rate of loss and is
measured as the difference between all contractual cash flows due and all contractual cash flows
expected based on the Group’s exposure at default, discounted at the financial asset’s effective
interest rate, where appropriate.
Financial assets are considered credit impaired when one or more events have occurred that
provide objective evidence that there has been a detrimental impact on the estimated future
cash flows of the financial asset. Indicators that a financial asset is credit impaired include
observable data that: the debtor has significant financial difficulties; the debtor is likely to enter
CPT Global FY23 Annual Report
39
bankruptcy or financial reorganisation; breaches of contract have occurred; and the debtor has
defaulted or there is delinquency in payments. Financial assets which are not collectible are
written off by reducing the carrying amount directly when the Group has no realistic expectation
of recovery of the financial asset. Financial assets written off remain subject to enforcement
action by the Group. Any financial assets that have been written off but subsequently recovered
in whole or in part are recognised in profit or loss.
Financial Guarantees
Where material, financial guarantees issued, which require the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make
payment when due, are recognised as a financial liability at fair value on initial recognition.
The guarantee is subsequently measured at the higher of the best estimate of the obligation
and the amount initially recognised less, when appropriate, cumulative amortisation in
accordance with AASB 15: Revenue from Contracts with Customers. Where the Group gives
guarantees in exchange for a fee, revenue is recognised under AASB 15.
The fair value of financial guarantee contracts has been assessed using a probability weighted
discounted cash flow approach. The probability has been based on:
•
•
•
the likelihood of the guaranteed party defaulting in a year period;
the proportion of the exposure that is not expected to be recovered due to the guar-
anteed party defaulting; and
the maximum loss exposed if the guaranteed party were to default.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or
the asset is transferred to another party whereby the Group no longer has any significant
continuing involvement in the risks and benefits associated with the asset. Financial liabilities are
derecognised where the related obligations are either discharged, cancelled, or expired. The
difference between the carrying value of the financial liability extinguished or transferred to
another party and the fair value of consideration paid, including the transfer of non-cash assets
or liabilities assumed, is recognised in profit or loss.
(g) Receivables
Trade receivables are a part of financial instruments (loans and receivables) and are initially
recognised at transaction price and are subsequently measured at amortised cost less any
impairment allowance. Trade receivables are generally due for settlement within 30 days.
(h) Impairment of Non-financial Assets
At the end of each reporting period, the Group reviews the carrying values of its tangible and
intangible assets to determine whether there is any indication that those assets have been
impaired. If such an indication exists, the recoverable amount of the asset, being the higher of
CPT Global FY23 Annual Report
40
the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value.
Any excess of the asset’s carrying value over its recoverable amount is recognised as an expense
in the profit and loss.
Impairment testing is performed annually for goodwill and other intangible assets with
indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Non-financial assets, other than goodwill that suffered impairment, are reviewed for possible
reversals of the impairment at the end of each reporting period.
(i) Intangibles
Goodwill
Goodwill is initially recorded at the amount by which the purchase price for a business
combination exceeds the fair value attributed to the interest in the net fair value of identifiable
assets, liabilities, and contingent liabilities at the date of acquisition. Goodwill on acquisitions of
subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in
investments in associates. Goodwill is tested annually for impairment and carried at cost less
accumulated impairment losses. Gains and losses on the disposal of an entity include the
carrying amount of goodwill relating to the entity sold.
Intellectual property
Intellectual property is recognised at the cost of acquisition and has an indefinite useful life.
Intellectual property is tested annually for impairment and carried at cost less accumulated
impairment losses.
Computer Software
Computer software is recognised at the cost of acquisition. Computer software costs have a
finite useful life and are carried at cost less accumulated amortisation and any impairment
losses. Computer software costs are amortised on a straight-line basis over their useful life. The
amortisation rate used for software costs varies from 14% to 50%.
(j) Foreign Currency Transactions and Balances
Functional and Presentation Currency
The functional currency of each of the Group’s entities is the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented
in Australian dollars which is the Company’s functional and presentation currency.
Transaction and Balances
Foreign currency transactions are translated into functional currency using the exchange rates
prevailing at the date of the transaction. Foreign currency monetary items are re-translated at
CPT Global FY23 Annual Report
41
the year-end exchange rate. Non-monetary items measured at historical cost continue to be
carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair
value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the profit or
loss, except where deferred in equity as a qualifying cash flow or net investment hedges.
Exchange differences arising on the translation of non-monetary items are recognised directly in
equity to the extent that the underlying gain or loss is directly recognised in equity, otherwise
the exchange difference is recognised in the profit or loss.
Group Companies
The financial results and position of foreign operations whose functional currency is different
from the Group’s presentation currency are translated as follows:
• assets and liabilities are translated at year-end exchange rates prevailing at the end of
the reporting period;
income and expenses are translated at average exchange rates for the period;
•
• and retained earnings are translated at the exchange rates prevailing at the date of the
transaction.
On consolidation, exchange differences arising from translation of transactions considered to be
net investment in foreign operations are transferred directly to the Group’s foreign currency
translation reserve in the statement of financial position. These differences are recognised in the
profit or loss in the period in which the operation is disposed.
(k) Trade and Other Payables
Trade and other payables are a part of financial instruments (non-derivative financial liabilities).
These amounts represent liabilities for goods and services provided to the Group prior to the
end of the financial year which are unpaid. The amounts are unsecured and are usually paid
within 30 days of recognition. Trade and other payables are initially measured at fair value and
subsequently measured at amortised cost using the effective interest method.
(l) Employee Benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered
by employees to balance date. Employee benefits that are expected to be wholly settled within
one year have been measured at the amounts expected to be paid when the liability is settled.
Employee benefits payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those benefits. Those cashflows are discounted
using market yields on corporate bonds with terms to maturity that match the expected timing
of cashflows.
CPT Global FY23 Annual Report
42
(i) Wages and salaries, annual leave, and sick leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave
expected to be settled wholly within 12 months of the end of the reporting period are
recognised in other payables in respect of employees’ services up to the end of the
reporting period and are measured at the undiscounted amounts expected to be paid
when the liabilities are settled. When measuring sick leave entitlement, only the
unutilised entitlement that is likely to be utilised over and above the leave entitlement
that continues to accrue in the future periods is taken into account.
(ii) Long service leave
The liability for long service leave is recognised in the provision for employee benefits
and measured as the present value of expected future payments to be made in respect
of services provided by employees up to the end of the reporting period. 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 end of the reporting period on corporate bonds with terms to maturity and currency
that match, as closely as possible, the estimated future cash outflows.
(iii) Retirement benefit obligations
Contributions to defined contributions superannuation funds are recognised as an
expense as they become payable.
(iv) Share-based payments
Share-based compensation benefits are provided to certain directors and employees via
the Group Employee Equity Plan. Information relating to this scheme is set out in Note
16.
The fair value of performance rights granted under the CPT Employee Equity Plan is recognised
as an employee benefit expense with a corresponding increase in equity in the period the rights
vest. The fair value is measured at grant date and recognised over the period during which the
employees become unconditionally entitled to the rights.
The fair value at grant date is determined using a Black-Scholes option pricing model that takes
into account the exercise price, the term of the right, the impact of dilution, the share price at
grant date and expected price volatility of the underlying share, the expected dividend yield, and
the risk-free interest rate for the term of the right.
The fair value of the rights granted is adjusted to reflect market vesting conditions but excludes
the impact of any non-market vesting conditions (for example, profitability and sales growth
targets). Non-market vesting conditions are included in assumptions about the number of rights
that are expected to become exercisable. At the end of each reporting period, the Group revises
its estimate of the number of rights that are expected to become exercisable. The employee
benefit expense recognised each period takes into account the most recent estimate. The
impact of the revision to the original estimates, if any, is recognised in the profit and loss with a
corresponding adjustment to equity.
CPT Global FY23 Annual Report
43
(m) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of
past events, for which it is probable that an outflow of economic benefits will result, and that
outflow can be reliably measured. A provision for dividends is not recognised as a liability unless
the dividends are declared, determined, or publicly recommended on or before the end of the
reporting period.
(n) Issued Capital
Issued and paid-up capital is recognised at the fair value of the consideration received by the
Group.
Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as
a reduction of the share proceeds received.
(o) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-
term highly liquid investments with original maturities of three months or less, and bank
overdrafts.
Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of
financial position.
(p) Revenue and Other Income
The Group recognises revenue to represent the transfer of promised goods or services to
customers in an amount that reflects the consideration to which the Group expects to be
entitled in exchange for the goods or services.
The Group enters contracts with clients to provide IT consulting services on a time and materials,
fixed price, milestone based and risk/reward basis, or variations thereof. The performance
obligations in each contract are identified and the total transaction price for each contract is
allocated against the various performance obligations based on their stand-alone selling prices.
The transaction price excludes any amounts collected on behalf of third parties.
The Group determines the stand-alone selling price by direct reference to contracts and pricing
schedules for the services being delivered.
Revenue is recognised either at a point in time or over time as performance obligations are
satisfied by transferring the goods or services to the client. Revenue is recognised over time if:
•
•
•
the client simultaneously receives and consumes the benefits as the Group performs;
the client controls the asset as the Group creates or enhances it; or
the Group’s performance does not create an asset for which the client has an alternative
use and there is a right to payment for performance to date.
CPT Global FY23 Annual Report
44
If the criteria above are not met, revenue is recognised at a point in time.
When revenue is recognised over time the progress towards complete satisfaction of the
performance obligations as the services are delivered is measured using the stage of completion
method, except for risk/reward contracts as discussed below. Stage of completion is measured
by reference to the labour hours incurred to date as a percentage of total estimated hours for
each performance obligation. Clients are invoiced monthly in arrears unless the contract
specifies otherwise. Payment terms are generally 30 days. Any amounts that remain unbilled at
the end of a reporting period are presented in the statement of financial position as contract
assets. Only the passage of time is required before these amounts are invoiced and collected.
Risk/reward revenue is recognised by measuring the progress towards complete satisfaction of
the performance obligations. The method of measuring progress is determined using an output
method as the Group has determined that an output method best reflects the pattern of transfer
of value to the customer. The output is measured in either MIPS or MSUs saved for the customer
and the progress is measured by reference to the MIPS or MSUs saved to date as a percentage
of total estimated MIPS or MSUs for each performance obligation. The MIPS or MSUs saved to
date is determined by identifying all opportunities identified at a point in time and weighting
the likelihood of the client realising the savings based on fixed and measurable stages in a
risk/reward project. The weighting at each stage is based on the Group’s experience completing
risk/reward projects. Clients are invoiced in accordance with the contract terms which generally
stipulate that invoices can be submitted when the savings have been measured and confirmed
by the client and the Group. Payment terms are generally 30 days. Any amounts that remain
unbilled at the end of a reporting period are presented in the statement of financial position as
a contract asset.
Clients may be invoiced in advance for the provision of services, and this is recognised as a
liability until the Group provides, and the client consumes, the benefits of the service.
Interest revenue is recognised on a proportional basis considering the effective interest rates
applicable to the financial assets.
All revenue is stated net of the amount of goods and services tax (GST).
(q) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction, or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use of those assets, until such time as the assets are substantially ready for their
intended use or sale.
CPT Global FY23 Annual Report
45
(r) Earnings per Share (EPS)
Basic EPS is calculated as net profit attributable to members, adjusted to exclude costs of
servicing equity (other than dividends) and preference share dividends, divided by the weighted
average number of ordinary shares, adjusted for any bonus element.
Diluted EPS is calculated as net profit attributable to members, adjusted for:
• costs of servicing equity (other than dividends) and preference share dividends;
•
the after-tax effect of dividends and interest associated with dilutive potential ordinary
shares that have been recognised as expenses;
• other non-discretionary changes in revenues or expenses during the period that would
result from the dilution of potential ordinary shares;
• divided by the weighted average number of ordinary shares and dilutive potential
•
ordinary shares, adjusted for any bonus element; and
the effect of antidilution, if there is a loss it is deemed that dilutive shares will be
excluded.
(s) Consumption Taxes (GST, VAT and HST)
Revenues, expenses, and assets are recognised net of the amount of GST, VAT and HST, except
where the amount of GST, VAT and HST incurred is not recoverable from the taxation authority.
In these circumstances, the GST, VAT and HST are recognised as part of the cost of acquisition of
the asset or as part of an item of the expense. Receivables and payables in the statement of
financial position are shown inclusive of GST, VAT and HSTGST and VAT.
Cash flows are presented in the statement of cash flows inclusive of GST, VAT and HST. The GST
and VAT components of cash flows arising from investing or financing activities which are
recoverable from, or payable to, the taxation authority are presented as operating cash flows
included in receipts from customers or payments to suppliers.
(t) Government Grants
Government grants are recognised at fair value where there is reasonable assurance that the
grant will be received, and all grant conditions will be met. Grants relating to expense items are
recognised as income over the periods necessary to match the grant to the costs they are
compensating.
(u) Rounding of Amounts
The parent entity has applied the relief available to it under ASIC Corporations (Rounding in
Financial/Directors’ Reports) Instrument 2016/191 and accordingly, amounts in the financial
statements and directors’ report have been rounded off to the nearest $1,000, or in certain cases
the nearest dollar.
CPT Global FY23 Annual Report
46
(v) Critical Accounting Estimates & Judgements
The directors evaluate estimates and judgements incorporated into the financial statements
based on historical knowledge and best available current information. Estimates assume a
reasonable expectation of future events and are based on current trends and economic data,
obtained both externally and within the Group.
Key Estimates and Judgements
(i) Impairment losses on trade and other receivables, and contract assets
An impairment loss is recognised based on an expected credit loss model. The Group
assesses the expected credit loss of trade receivables and contract assets based on
individual debtor level expectations relative to credit terms. The Group assesses the
expected credit loss on receivables due from tax authorities based on the expected
recovery. There is a high degree of judgement in estimating whether these receivables
require a provision for estimated credit losses and what level of provision is needed.
(ii) Contract assets
The Group measures contract assets based on information available at the time of
recognition. This information includes historical trends, data analysis, significant
judgments from key management personnel as to the reasonable expectations of future
events and completion of projects in progress. See Note 8 for further details.
(iii) Deferred taxes
In assessing whether future taxable amounts will be available to utilise temporary
differences and losses, management review the past performance of the relevant
company, the budgets for the forthcoming financial year, forecasts, and sales pipelines.
(w) Accounting Standards Issued but Not Yet Effective
Certain new accounting standards and interpretations have been published that are not
mandatory for 30 June 2023 reporting periods and have not been early adopted by the group.
These standards are not expected to have a material impact in the current or future reporting
periods.
2. Operating Segments
Identification of Reportable Segments
The Group has identified its operating segments based on the internal reports that are reviewed
and used by the Board of Directors (Chief Operating Decision Makers, CODM) in assessing the
performance and determining the allocation of resources. The reportable segments disclosed
have been adjusted to aggregate Europe and North America as the Northern Hemisphere.
Reportable segments disclosed are based on aggregating operating segments where the
segments are considered to have similar economic characteristics and are also similar with
respect to the following:
CPT Global FY23 Annual Report
47
services provided by the segment;
the type of customer for the services provided; and
•
•
• external regulatory requirements
Types of Services by Segment
Below outlines the major lines of services provided to customers for each reportable segment:
Australia
• Transformation and Modernisation services
• Program Governance and Assurance Services
• Quality Assurance Services
• Mainframe and Midrange Optimisation and Cost Reduction Services
• Capacity Management Services
Northern Hemisphere
• Mainframe & Midrange performance
• Technical Support services
• Mainframe & Midrange performance
• Management, Functional & Automation Testing
• Technical Support services
• Cost Reduction
• Capacity Planning
Basis of accounting for purposes of reporting by reportable segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors with respect to
operating segments are determined in accordance with accounting policies that are consistent
with those adopted in the annual financial statements of the Company.
Inter-segment transactions
Segment revenues, expenses and results exclude transfers between segments. The prices
charged on intersegment transactions are the same as those charged for similar services to
parties outside of the Group on an arm’s length basis. These transfers are eliminated on
consolidation.
Segment Assets and Liabilities
Segment assets and liabilities reported are based on the internal reports reviewed by the Board
of Directors. Assets include trade debtors and contract asset balances. Liabilities include trade
creditors and accruals.
CPT Global FY23 Annual Report
48
Unallocated Items
The Board of Directors review segment performance to the gross profit level. Items, other than
operating expenses that can be allocated to a segment, are not allocated to operating segments
as they are not considered part of the core operations of any segment.
Segment Performance
Australia
Northern Hemisphere
Consolidated
Revenue
Cost of Sales
Segment Gross Profit Before Tax
Reconciliation of segment result to
group profit before tax
Operating Expenses
Profit before tax before
unallocated items
Corporate costs
Impairment of financial assets
(loss) / profit before tax
Segment Assets
Segment Assets
Reconciliation of segment assets to
group assets
Unallocated Assets
- Capital Expenditure
- Depreciation
- Other Assets
Total Group Assets
Jun-23
$'000
15,394
Jun-22
$'000
14,937
Jun-23
$'000
12,737
Jun-22
$'000
15,004
Jun-23
$'000
28,131
Jun-22
$'000
29,941
12,116
11,266
5,921
7,416
18,036
18,682
3,279
3,671
6,816
7,588
10,095
11,259
1,846
1,432
981
2,690
3,806
3,010
2,450
5,138
5,652
4,442
4,795
1,141
3,431
7,828
5,775
-
(1,494)
2,053
Australia
Northern Hemisphere
Consolidated
Jun-23
Jun-22
Jun-23
Jun-22
Jun-23
Jun-22
$'000
2,273
$'000
2,674
$'000
4,378
$'000
5,878
$'000
6,651
$'000
8,552
-
-
-
-
-
-
-
-
-
-
-
-
19
15
14
16
1,486
6,057
8,171
14,639
Segment Liabilities
Australia
Northern Hemisphere
Consolidated
Segment Liabilities
Reconciliation of segment liabilities to
group liabilities
Unallocated Liabilities
- Provisions
- Other Liabilities
Total Group Liabilities
CPT Global FY23 Annual Report
Jun-23
Jun-22
Jun-23
Jun-22
Jun-23
Jun-22
$'000
1,506
$'000
5,250
$'000
2,005
$'000
3,100
$'000
3,512
$'000
8,350
846
-
826
-
-
-
87
-
846
895
970
-
5,252
9,320
49
Major Customers
The Group provides services to a range of clients in the financial services, superannuation,
healthcare, and government industries. The Group’s top 10 clients account for 82% of the
Group’s global revenue (2022: 89%), totaling $23.1m (2021: $26.9m). Three of the Group’s clients
contributed more than 10% of the annual revenue (23% - a major American bank, 15% - an
Australian Recruitment company, 13% - a major Australian Bank).
3. Revenue
REVENUE
Services Revenue – recognised over time
Total Revenue
OTHER INCOME
Interest Income
Government grants received
Sundry income
Total Other Income
2023
2022
$’000
$’000
28,131
29,941
28,131
29,941
5
-
5
10
5
11
-
16
CPT Global FY23 Annual Report
50
4. Profit or Loss for the Year
Profit or loss for the year also includes the following specific expense
items:
Finance costs:
Interest expense on borrowings
Total finance costs
Occupancy expenses
Depreciation of property plant and equipment
Defined benefit superannuation expense – Others
Defined benefit superannuation expense – KMP
5. Income Tax Expense
(a) Income Tax Expense
Tax (benefit)/expense comprises:
Current tax (benefit)/expense
Deferred tax
Under/(over) provision of previous year
2023
2022
$’000
$’000
67
67
322
15
1,364
62
92
92
301
16
958
129
2023
2022
$'000
$'000
370
763
(244)
(182)
440
566
-
581
The prima facie tax on profit before income tax is reconciled to the
income tax as follows:
(Loss)/profit before tax
Prima facie tax (benefit)/expense on profit before income tax at 25%
(2021: 26%)
CPT Global FY23 Annual Report
(1,494)
2,053
(374)
513
51
Tax Effect of
Change in tax rate
Tax on overseas income at a different rate
Other non-allowable items
Current year tax losses not brought to account
Tax losses utilised that were not previously recognised
Impairment of financial assets
Under provision of previous year
Non-deductible interest expense
Income tax (benefit)/expense attributable to the entity
The applicable weighted average effective tax rates are as follows:
(b) Deferred Tax Liabilities
LIABILITIES
Non-Current
Deferred tax liabilities comprise:
Prepayments
Unrealised foreign exchange gain
Reconciliation of deferred tax liabilities
Opening balance
Credited to the profit or loss as current tax
Closing balance
Netted off with deferred tax assets
Net deferred tax liability
18
-
131
140
24
73
105
65
(213)
(314)
178
440
246
566
(38%)
-
33
82
581
28%
2023
2022
$'000
$'000
32
-
32
122
(90)
32
(32)
-
34
87
122
158
(36)
122
-
122
CPT Global FY23 Annual Report
52
(c) Deferred Tax Assets
ASSETS
Non-Current
Deferred tax assets comprise:
Foreign currency losses
Employee entitlements
Accruals
Income losses
Other
2023
2022
$'000
$'000
125
335
50
356
-
628
376
37
123
36
866
1,200
Reconciliation of deferred tax assets
Opening balance
1,200
1,017
(Debited)/Credited to the profit or loss
5
(334)
183
Closing balance
Deferred tax liabilities netted with deferred tax assets
Net Deferred Tax
866
(32)
834
1,200
-
1,078
The future income tax benefit of the deferred tax assets will only be realised if the conditions of
deductibility set out in Note 1(b) occur. Deferred tax assets not brought to account for which the
benefits will only be realised if the conditions for deductibility set out in Note 1(b) occur amount
to $818,611 (2022: $712,313). The Group’s tax losses that have not been brought to account are
generally not subject to restrictions. Of the losses not brought to account in FY2022 64% relate
to the UK.
CPT Global FY23 Annual Report
53
6. Cash and Cash Equivalents
Cash at bank
Reconciliation of cash
Cash at the end of the financial year as shown in the statement of cash
flows is reconciled to items in the statement of financial position as
follows:
Cash and cash equivalents
7. Trade and Other Receivables
CURRENT
Trade receivables
Provision for impairment
Other receivables
GST/HST receivables
NON-CURRENT
Employee withholding tax receivables
GST/HST receivables
2023
2022
$'000
$'000
1,245
4,087
1,245
4,087
1,245
4,087
Notes
2023
2022
$'000
$'000
(a)
2,940
4,336
-
-
2,940
4,336
235
-
147
636
3,193
5,119
662
-
-
2,262
662
2,262
(c)
(b)
(c)
CPT Global FY23 Annual Report
54
a) Trade receivables are non-interest bearing and generally on 30-day terms. The average
credit period on rendering of services is 42 days (2022: 53 days).
b) Employee withholding tax receivables are refunds expected from the Canada Revenue
Agency relating to tax payments made on behalf of employees.
c) GST/HST receivables are refunds expected from the Canada Revenue Agency relating to
payments made associated with GST/HST that are expected to be refunded. During the
year these amounts were cleared against payables to the Canada Revenue Agency or
impaired.
Before accepting new customers, the Group assesses the creditworthiness of the potential client
using information provided by independent rating agencies, publicly available information, and
its own trading record. The Group’s client portfolio consists of leading blue-chip companies,
Fortune Global 500 companies, and Government departments within Australia. The profile of the
trade receivable balance as at the reporting date is as follows:
Of the trade receivable balance at the end of the reporting period:
• $611k (2022: $960k) was due from a leading banking institution in Australia with an S&P
credit rating of AA-.
• $163k (2022: $290k) was due from a leading Australian online recruitment platform.
• $218k (2022: nil) was due from a major banking institution in Canada.
• $966k (2022: $1.060m) was due from a leading healthcare company in the USA.
There are no other customers who represent more than 5% of the total balance of trade
receivables.
Of the trade receivables balance at the end of the reporting period, a concentration of $1.5m
(50%) relates to Australia (2022: $2.5m (58%)) and $1.5m relates to Northern Hemisphere (2022:
$1.8m (42%)). The remaining amounts are not individually significant.
Trade receivables that are past due and are impaired
There is no provision for impairment on trade receivables during the year.
Trade receivables that are past due but not impaired
Included in the trade receivable balance are debtors with a carrying amount of $165k (2022:
$491k) in the Group which are past due at the end of the reporting period but have not been
provided for as there has not been a significant change in credit quality and the amounts are
still considered recoverable. The balance relates to two USA clients and one for Australia. Since
the end of year, we have collected payments for some invoices and are in the process of
collecting the balance payments. At this stage, no risk is foreseen in collecting all the
outstanding payments.
CPT Global FY23 Annual Report
55
Ageing analysis of trade receivables
The ageing analysis of trade receivables is:
1-3 months
Within initial trade terms
2023
2022
$'000
$'000
165
491
2,775
3,845
2,940
4,336
The carrying value of trade and other receivables approximates fair value. Trade and other
receivables are recoverable within 12 months; hence the effects of discounting are immaterial.
8. Contract Assets
Contract asset
Total
2023
2022
$'000
$'000
1,095
1,318
1,095
1,318
Contract assets represent amounts relating to revenue recognised in accordance with the
accounting policies detailed in Note 1(c) that had not been invoiced to the customer as at the
end of the reporting period. There is no amount of the contract asset that was initially
recognised more than 12 months prior to the end of the reporting period.
9. Other Current Assets
Prepayments
Other Current Assets
2023
2022
$'000
$'000
314
344
658
322
317
639
Prepayments consists of insurance policies, licence fees, subscriptions, and other expenses.
CPT Global FY23 Annual Report
56
10. Property, Plant, & Equipment
Motor vehicles
At cost
Accumulated depreciation
Office equipment
At cost
Purchases
Accumulated depreciation
Furniture, fixtures, and fittings
At cost
Accumulated depreciation
2023
2022
$'000
$'000
36
(36)
-
164
35
36
(36)
-
148
16
(165)
(150)
34
14
6
(6)
-
6
(6)
-
Total property, plant, and equipment
34
14
CPT Global FY23 Annual Report
57
Reconciliations of the carrying amounts of property, plant and
equipment at the beginning and end of the current financial year
Office equipment
Cost at beginning of year
Purchases
Cost at end of year
Accumulated depreciation at beginning of year
Depreciation and effects of movements in exchange rate
Write back of accumulated amortisation on disposals
Accumulated depreciation at end of year
2023
2022
$'000
$'000
164
35
199
148
16
164
(150)
(131)
(15)
-
(19)
-
(165)
(150)
Carrying amount
34
14
11. Trade and Other Payables
CURRENT
Trade and other payables
Accruals
Contract liabilities
2023
2022
$'000
$'000
3,023
6,563
580
197
837
302
3,800
7,702
Due to the short-term nature of these payables, their carrying value is assumed to approximate
their fair value. There are no financial guarantees in place other than the bank guarantee for the
head office lease as disclosed in Note 26.
Contract liabilities are recorded as a current liability as the underlying performance obligations
are expected to be completed within 12 months. The balance of unearned revenue at 30 June
2022 was recognised as revenue in FY2023.
CPT Global FY23 Annual Report
58
12. Borrowings
Unutilised financing facilities
Credit facility available
Amount utilised
Note
2023
2022
$'000
$'000
5,000
5,000
14(d)
-
-
5,000
5,000
The parent entity has a debtor’s financing facility in place. The facility is secured by a first
registered company charge (mortgage debenture) over the carrying value of the total assets of
the parent entity, which totaled $1.0m at the end of the reporting period. Interest is charged at a
9.7%. The maximum facility is $5m with the available facility based on the value of the Australian
debtor book. At 30 June 2023, the available funding under the facility was $0.8m. It is a rolling
facility which can be terminated with following notice; 3 month notice (CPT) & 1 month
(provider)
13. Provisions
Current
Employee benefits – Long Service Leave
Employee benefits – Annual Leave
Total Current Provisions
Non-Current
Employee benefits – Long Service Leave
Long Term Incentive Provision
Total Non-Current Provisions
2023
2022
$'000
$'000
707
606
760
653
1,313
1,413
27
112
139
32
-
32
Total Provision
1,452
1,445
A provision has been recognised for employee entitlements relating to long service leave. In
calculating the present value of future cash flows in respect of long service leave, the probability
of long service leave being taken is based on historical data.
CPT Global FY23 Annual Report
59
Analysis of Total Provisions
Opening balance at 1 July 2022
Provided for during the year
Taken during the year
Balance at 30 June 2023
14. Issued Capital
(a) Issued and paid-up capital
41,897,365 (2022: 41,607,143)
fully paid ordinary shares
Long Service
Leave
Annual Leave
Total
$'000
$'000
792
16
(74)
734
653
551
(598)
606
$'000
1,445
567
(672)
1,340
2023
2022
$’000
$’000
13,919
13,818
13,919
13,818
(b) Movements in shares on issue
2023
2022
Number of
shares
$’000’
Number of
shares
$’000’
Beginning of the financial year
41,607,143
13,818
40,306,551
13,033
Dividend reinvestment plan - 11 November 2022
Dividend reinvestment plan - 13 April 2023
172,030
118,192
63
38
1,300,592
-
785
-
End of the financial year
41,897,365
13,919
41,607,143
13,818
(i) Ordinary shares participate in dividends and the proceeds on winding up of the parent
entity in proportion to the number of shares held. At shareholders’ meetings each
ordinary share is entitled to one vote when a poll is called, otherwise each shareholder
has one vote on a show of hands. During the year ended 30 June 2023 no ordinary
shares were bought back under the on-market buyback (2022: nil). Ordinary shares have
no par value.
CPT Global FY23 Annual Report
60
(ii) The on-market buyback commenced on the 27 August 2020 with 3,000,000 shares being
the maximum to be bought back of which 2,385,106 were outstanding as at 30 June
2023.
(c) Options
For information relating to the CPT Global Limited employee option plan, including details of
options issued, exercised, and lapsed during the financial year and the options outstanding at
year-end, refer to Note 16 Share-based payments.
For information relating to share options issued to key management personnel during the
financial year, refer to the Note 16 Share-Based Payments.
(d) Capital Management
The board of directors controls the capital of the Group in order to maintain an appropriate
debt to equity ratio, provide shareholders with adequate returns and ensure that the Group can
fund its operations and continue as a going concern.
The Group does not currently have significant debt capital employed in the business as
indicated in the following table. Management effectively manages the Group’s capital by
assessing the Group’s financial risks and adjusts its capital structure in response to changes in
these risks and in the market. These responses include the management of debt levels,
distributions to shareholders, share buy-backs and share issues.
There have been no changes in the strategy adopted by management to control the capital of
the group since the prior year. This strategy is to ensure that the Group’s gearing ratio remains
at an appropriate level between 0% and 50%.
The gearing ratios for the year ended 30 June 2023 and 30 June 2022 are as follows:
Borrowings
Lease liabilities
Less cash and cash equivalents
Net Debt
Total equity
Total capital employed
Gearing ratio
2023
2022
$’000
$’000
-
-
-
-
(1,245)
(4,087)
(1,245)
(4,087)
2,919
5,319
2,919
5,319
0%
0%
CPT Global FY23 Annual Report
61
A bank guarantee facility provided by the Company’s banker is cash backed in the amount of
$191k. The cash is not available for CPT Global to utilise until the bank guarantee is returned to
our Banker at the end of the lease. The lease expires in June 2023. The facility was not utilised as
at 30 June 2023.
15. Reserves
(a) Foreign Currency Translation
The foreign currency translation reserve records exchange differences arising from translation of
the financial statements of foreign subsidiaries.
(b) Employee compensation reserve
The employee compensation reserve is a non-distributable reserve used to record share-based
payment expense.
16. Share-Based Payments
The following share-based payment arrangements existed at 30 June 2023:
Directors
Performance
Rights
CEO
performance
rights
Issue
date
Expiry
date
Exercise
Price
Granted
As at 1
July
2022
29/11/21
28/11/24
$0.00
1,000,000
-
Forfeited /
Exercised /
transferred/
expired
-
As at 30
June
2023
1,000,000
1,000,000
-
-
1,000,000
On 29 November 2021, at the Company’s Annual General Meeting, 1,000,000 performance
rights were granted to Luke Tuddenham to take up ordinary shares at an exercise price of $0.00
per share. The fair value of these performance rights at the date of grant was $616,346. The fair
value has been calculated using a Black Scholes pricing methodology using the following inputs:
Weighted average exercise price
Maximum life of right
Underlying share price
$0.00
3 years
$0.660
As the exercise price is $0.00, share price volatility, risk free interest rate and dividend yield do
not have a material impact on the fair value of the performance rights.
The exercise of the performance rights related to FY2022 was contingent upon the following
conditions being met:
CPT Global FY23 Annual Report
62
No of Shares to be Issued
1,000,000
Conditions to be met
at least 10% of the Company’s revenue, as reported in
the Company’s 30 June 2024 Annual Report is earned
from the sale, subscription or licensing of software and
intellectual property; and
the cumulative earnings per share (EPS) as reported in
the Company’s Annual Report for the three financial
years ending on 30 June 2022, 30 June 2023 and 30
June 2024 is equal to or greater than the cumulative
basic EPS target over the 3-year period from 1 July 2021
to 30 June 2024.
The performance rights hold no voting or dividend rights, are not transferrable and will lapse in
the event of the resignation of the director.
An amount of $207,148 (30 June 2022: $130,092) pertaining to these entitlements has been
included in the statement of comprehensive income for the period.
Information with respect to the number of performance rights granted is as follows:
2023
2022
Number of
performance
rights
Weighted
average exercise
price
Number of
performance
rights
Weighted
average exercise
price
Outstanding at the
beginning of the year
1,000,000
Granted
Exercised
-
-
Outstanding at year
end
1,000,000
$
-
-
-
-
50,000
1,000,000
50,000
1,000,000
$
-
-
-
-
There are no other options or performance rights granted by CPT Global Limited to any other
party. Options do not confer on the holder any right to vote or participate in the dividends of
the Company and are not transferable.
CPT Global FY23 Annual Report
63
17. Earnings per Share
(a) The following reflects the income and share data used
in the calculations of basic and diluted earnings per share:
2023
$'000
2022
$'000
Net (loss)/profit & earnings used in calculating basic and
diluted earnings per share
(2,060)
1,472
Weighted average number of ordinary shares used in
calculating basic earnings per share
Weighted average number of options outstanding
Effect of antidilution
Adjusted weighted average number of ordinary shares used in
calculating diluted earnings per share
Number of shares Number of shares
41,897,365
41,607,143
1,000,000
594,521
(1,000,000)
-
41,897,365
42,201,664
18. Dividends Paid or Provided for on Ordinary Shares
(a) Dividends paid during the year
• Current year interim
2023
2022
$'000
$'000
Franked dividends (0.60c per share) (2022: 1.50c per share)
251
621
•
Prior year final
Franked dividends (1.00c per share) (2022: 3.00c per share)
416
667
1,209
1,830
(b) Dividends proposed and not recognised as a liability
Franked dividends (0.0c per share) (2022: 1.00c per share)
-
416
(c) Franking credit balance
Balance of franking account at year end adjusted for payment of the
current tax liability
2,408
2,291
CPT Global FY23 Annual Report
64
19. Cash Flow Information
(a) Reconciliation of the profit after tax to the net cash flows from
operations
Net (loss)/profit
Non-Cash Items
Depreciation and amortisation of non-current assets
Impairment of financial assets
Share-based payments
Changes in assets and liabilities
Decrease/(Increase) in trade and term receivables
Increase in prepayments
Decrease in contract asset
Increase in deferred tax asset
(Decrease)/Increase in trade payables and accruals
(Decrease)/Increase in income taxes payable
Decrease in deferred tax liabilities
(Increase)/Decrease in employee entitlements
2023
2022
$'000
$'000
(2,060)
1,472
15
1,141
319
16
-
133
2,385
(1,878)
(20)
(44)
223
3
(83)
(182)
(3,903)
1,344
(52)
6
(121)
(36)
(105)
182
Net cash flow (used in)/from operating activities
(2,261)
1,016
20. Financial Instruments
Financial Risk Management
The Group’s financial instruments consist mainly of deposits with banks, accounts receivable and
payable.
The main purpose of non-derivative financial instruments is to raise finance for Group
operations.
Derivatives may be used by the Group for hedging purposes. Such instruments include forward
exchange and currency option contracts. The Group does not speculate in the trading of
derivative instruments.
CPT Global FY23 Annual Report
65
The board of directors is responsible for monitoring and managing financial risk exposures of
the Group. The board reviews the effectiveness of internal controls relating to interest rate risk
and foreign currency risk. The overall risk management strategy seeks to assist the Group in
meeting its financial targets, while minimising potential adverse effects on financial performance
from financial and currency rate risk.
The main risks the Group is exposed to through its financial instruments are interest rate risk,
foreign currency risk, liquidity risk and credit risk.
(a) Interest Rate Risk
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value
and cash flows will fluctuate as a result of changes in market interest rates and the effective
weighted average interest rates on classes of financial assets and financial liabilities, is as follows:
Economic Entity
Floating interest
rate
Fixed interest rate
maturing in 1 to 5
years
Non-interest
bearing
Total carrying
amount as per
statement of
financial position
Weighted
average
effective
interest rate
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
$'000
$'000
$'000
$'000 $'000 $'000
$'000
$'000
%
%
(i) Financial assets
Cash and cash equivalents
1,245
4,540
Trade receivables
-
-
Total financial assets
1,245
4,540
(ii) Financial liabilities at
amortised cost
Trade and sundry payables
Total financial liabilities
-
-
-
-
-
-
-
-
-
-
-
-
1,245
4,087 0.34
0.10
- 3,193
5,119
3,193
5,119
- 3,193
5,119
4,540
9,206
- 3,023
6,563
3,023
6,563
- 3,023
6,563
3,023
6,563
Interest rate risk arises on cash and cash equivalents, debtor funding facilities and bank
overdrafts. Interest rate risk is managed by monitoring and reviewing cash flow forecasts and
the trade receivables balance of the Group.
Interest rate sensitivity analysis
The sensitivity analysis has been determined based on the exposure to interest rates for cash
and cash equivalents as this is the only financial instrument materially exposed to floating
interest rates. The analysis is based on actual monthly borrowing amounts throughout the year,
CPT Global FY23 Annual Report
66
as reported to management, with the stipulated change taking place at the beginning of the
financial year and held constant throughout the reporting period. A 100-basis point increase or
decrease has been used and represents management’s assessment of the possible changes in
interest rates. At the reporting date, if interest rates had been 100 basis points higher or lower
and all other variables were held constant, the Group’s profit before income tax would increase
by $20k and decrease by $20k (2022: increase by $46k and decrease by $46k).
(b) Foreign Currency Risk
The group is exposed to fluctuations in foreign currencies arising from the sale and purchase of
services in currencies other than the group’s functional currency, and the translation of foreign
subsidiary results, financial position and borrowing between the group on consolidation.
The carrying amount of the Group’s foreign currency denominated monetary assets and
monetary liabilities at the end of the reporting period is as follows:
US dollars
Euro
Liabilities
Assets
2023
2022
2023
2022
$'000
$'000
$'000
$'000
152
-
136
-
193
15
256
38
The amounts disclosed above in relation to Australian dollars relate to intercompany payables
and receivables in each of the foreign subsidiaries whose functional currency is not Australian
dollars.
Foreign currency sensitivity analysis
The Group is mainly exposed to US dollars, Sterling, Euros and Canadian dollars.
The following table details the Group’s sensitivity to a 10% increase and decrease in the
Australian dollar against the relevant foreign currencies. 10% is the sensitivity rate used as it
represents management’s assessment of the possible change in foreign exchange rates. The
sensitivity analysis includes only outstanding foreign currency denominated monetary items and
adjusts their translation at the period end for a 10% change in foreign currency rates.
The sensitivity analysis includes external assets and liabilities as well as loans, receivables, and
payables balances with foreign subsidiaries where the denomination of the balance is in a
currency other than the functional currency of the lender or borrower. A positive number
indicates an increase in profit or loss and other equity where the Australian dollar strengthens
against the respective currency. For a weakening of the Australian dollar against the respective
CPT Global FY23 Annual Report
67
currency there would be an equal and opposite impact on the profit and other equity, and the
balances below would be opposite those shown.
USD Impact
Sterling Impact
Euro Impact
CAD Impact
2023
2022
2023
2022
2023
2022
2023
2022
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Profit or loss
7
70
15
24
11
(34)
140
Other equity
(68)
(95)
(205)
(200)
(129)
(134)
(173)
(26)
(23)
The above impacts are mainly attributable to the exposure of intercompany payables,
receivables, and loan balances at the end of the reporting period.
(c) Liquidity Risk
Liquidity risk is the risk the Group will not be able to meet its financial obligations as they fall
due. The group manages liquidity risk by monitoring forecast cash flows and ensuring that
adequate unutilised borrowing facilities are maintained. Included in Note 12 is a listing of
additional undrawn facilities that the Group has at its disposal to further reduce liquidity risk.
The borrowing facilities may be drawn at any time and may be terminated by the financing
provider with three months’ notice. All facilities are subject to annual review.
Maturity Analysis
The table below represents the undiscounted contractual settlement terms for financial
instruments and management’s expectations for settlement of undisclosed maturities.
<12 months
1-5 years
Total contractual
cash flows
Carrying amount
2023
2022
2023
2022
2023
2022
2023
2022
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Cash and cash equivalents
1,245
4,087
Receivables
3,193
4,483
Contract asset
1,095
1,318
Payables
(3,023)
(5,457)
Net maturities
2,570
4,488
-
-
-
-
-
-
-
-
-
-
1,245
4,087
1,245
4,087
3,193
4,540
3,193
4,540
1,095
1,318
1,095
1,318
(3,023)
(5,457)
(3,023)
(5,457)
2,510
4,488
2,510
4,488
CPT Global FY23 Annual Report
68
(d) Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations
resulting in financial loss to the Group and essentially arises from holdings of cash and deposits
and trade receivables as well as from the parent’s potential obligations under the indemnity
guarantee provided to banks. The risk is largely managed through a policy of only dealing with
creditworthy counterparties. Periodic assessments of debtor balances are undertaken and
provisions for impairment are recognised where appropriate.
The maximum credit risk exposure is the carrying value of cash and deposits and trade
receivables as disclosed in Notes 6 and 7.
Information of the Group’s credit risk exposure to any single debtor or group of debtors under
financial instruments entered into by the Group is included in Note 7.
The Group minimises concentrations of credit risk in relation to trade receivables by undertaking
transactions with a large number of clients.
(i) Cash Deposits
Credit risk for cash deposits is managed by holding all cash deposits with major
Australian and global banks.
(ii) Trade Receivables
Credit risk for trade receivables is managed by setting credit limits and completing credit
checks for new customers. Outstanding receivables are regularly monitored for payment
in accordance with credit terms.
The ageing analysis of trade and other receivables is provided in Note 7. As the Group
undertakes transactions with a large number of customers and regularly monitors
payments in accordance with credit terms, the financial assets that are neither past due
nor impaired, are expected to be received in accordance with the credit terms. The
Group assesses the expected credit loss based on individual debtor level expectations
relative to credit terms.
CPT Global FY23 Annual Report
69
21. Interests in Subsidiaries
Name
Country of
incorporation
Percentage of equity & voting interest held
by the economic entity
2023
2022
CPT Global Australia Pty Ltd
CPT Global International Pty Ltd
CPT Global Software Pty Ltd
CPT Global Pte Ltd*
CPT Global Inc
CPT Global Consulting Corp
Australia
Australia
Australia
Singapore
USA
Canada
CPT Consultoria Global Em Informatica Ltda
Brazil
CPT Global Ltd
CPT Global GmbH
CPT Global France
CPT Global SRL
United Kingdom
Germany
France
Italy
100
100
100
-
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
* CPT Global Pte Ltd was deregistered 7 November 2022. The entity was dormant and there
were no significant impacts on deconsolidation.
There are no known restrictions on the transfer of cash or assets within the Group. No
subsidiaries were acquired or sold during the financial year.
CPT Global FY23 Annual Report
70
22. Parent Entity Information
The following information has been extracted from the books and records of the parent and has
been prepared in accordance with Accounting Standards.
STATEMENT OF FINANCIAL POSITION
ASSETS
Current Assets
Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Non-Current Liabilities
Total Liabilities
EQUITY
Issued Capital
Reserves
Accumulated losses
Total Deficit
STATEMENT OF COMPREHENSIVE LOSS
Total loss
Total comprehensive loss
Guarantees
2023
2022
$'000
$'000
417
748
1,587
449
1,165
2,036
14,435
8,557
246
198
14,681
8,755
13,919
13,818
1,938
1,731
(29,373)
(22,267)
(13,516)
(6,718)
(3,273)
(6,341)
(3,273)
(6,341)
The parent has not entered into any guarantees, in the current or previous financial year, in
relation to the debts of its subsidiaries. Refer to Note 26 for details of bank guarantees in
relation to leased offices.
CPT Global FY23 Annual Report
71
23. Key Management Personnel Compensation
(a) Names and positions held of economic entity key management
personnel in office at any time during the financial year are:
Key Management Person
Position
Fred S Grimwade
Non-executive Chairman
Nigel Sandiford
Non-executive Director (resigned 1 August 2022)
Luke Tuddenham
Chief Executive Officer
Gerry Tuddenham
Executive Director
Steve Targett
Non-Executive Director (appointed 24 January 2023)
Nathan Marburg
Chief Financial Officer (appointed 26 April 2023)
Yasas Jayasuriya
Chief Financial Officer (appointed 1November 2022/resigned 19 May 2023)
(b) Key Management Personnel Compensation
Refer to the Remuneration Report contained in the Director’s Report for details of the
remuneration paid to each member of the Group’s key management personnel for the year
ended 30 June 2023.
The totals of remuneration paid to key management personnel of the Company and the Group
during the year are as follows:
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Share-based payments
2023
$000
2022
$000
1,700
1,780
66
112
207
69
24
130
2,085
2,003
CPT Global FY23 Annual Report
72
24. Related Party Disclosures
(a) Controlling Relationships
Interests in subsidiaries are set out in Note 21. The parent entity and the ultimate controlling
party of the group is CPT Global Limited.
(b) Key Management Personnel
Disclosures relating to key management personnel are set out in the Remuneration Report and
Note 23. Key management personnel include the board of directors and key executives who are
accountable and responsible for the operational, management and strategic direction of the
Group.
(c) Transactions with Related Parties
During the financial year there were no transactions with related parties.
25. Auditors’ Remuneration
Amounts received or due and receivable by SW Audit for:
an audit or review of the financial statements of the Company and any other
entity in the Group
other services in relation to the Company and any other entity in the Group
- tax compliance
- other services
2023
2022
$'000
$'000
186,776
142,744
74,181
13,340
3,500
300
264,457
156,384
26. Contingent Liabilities
Guarantees
The Group has provided a guarantee of nil (2022: $124k) to third parties in relation to its
performance and obligations in respect of property lease rentals. The guarantee is secured
against a term deposit equal to the value of the guarantee. The guarantee is for the term of the
lease. The guarantee for the lease covers the next 12 months.
27. Events After the Reporting Period
No matter or circumstances have occurred subsequent to the end of the financial year that has
significantly affected, or may significantly affect, the operations of the Group, the result of those
operations or the state of affairs of the Group in subsequent financial periods except for the
following:
CPT Global FY23 Annual Report
73
Directors’
Declaration
The directors of the company declare that:
1. the financial statements and notes, are in accordance with the Corporations Act 2001
and:
a. comply with Australian Accounting Standards, which, as stated in accounting
policy Note 1 to the financial statements, constitutes explicit and unreserved
compliance with International Financial Reporting Standards (IFRS); and
b. give a true and fair view of the financial position as at 30 June 2023 and of the
performance for the year ended on that date of the Group.
2. the Chief Executive Officer and Chief Financial Officer have each declared that:
a. the financial records of the Company for the financial year have been properly
maintained in accordance with section 286 of the Corporations Act 2001;
b. the financial statements and notes for the financial year comply with Accounting
c.
Standards; and
the financial statements and notes for the financial year give a true and fair view.
in the directors’ opinion there are reasonable grounds to believe that the Company will
be able to pay its debts as and when they become due and payable.
3.
This declaration is made in accordance with a resolution of the Board of Directors.
Luke Tuddenham
Managing Director, CEO
Aspen, Colorado
28 September 2023
CPT Global FY23 Annual Report
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF CPT GLOBAL LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of CPT Global Limited (the Company) and its subsidiaries (the Group) which
comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit
or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Company 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 2023 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.
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.
Brisbane
Level 15
240 Queen Street
Brisbane QLD 4000
T + 61 7 3085 0888
Melbourne
Level 10
530 Collins Street
Melbourne VIC 3000
T + 61 3 8635 1800
Perth
Level 18
197 St Georges Terrace
Perth WA 6000
T + 61 8 6184 5980
Sydney
Level 7, Aurora Place
88 Phillip Street
Sydney NSW 2000
T + 61 2 8059 6800
SW Audit ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards
Legislation. SW Audit is an independent member of ShineWing International Limited.
sw-au.com
75
Take the lead
1. Revenue recognition and contract assets
Key audit matter
How our audit addressed the key audit matter
Refer to note 1(p) Revenue and other income note
1(v)(ii) Contract assets, note 3 Revenue and note 8
Contract Assets
The Group earned revenue of $28,131,000 during
the year and recognised contract assets of
$1,095,000 at reporting date. Services revenue
includes:
variable (risk/reward), and
fixed price contracts.
Revenue is recognised in accordance with AASB
15 Revenue from Contracts with Customers.
Recognition of revenue and contract assets is a key
audit matter due to the revenue recognised being
based on managements’ estimates of:
Our procedures included:
Documenting and assessing the internal control
environment and performing tests of controls
Testing a sample of revenue from both revenue
streams to supporting documentation and assessing
whether revenue has been accurately recorded in
accordance with contractual terms
Checking that new contracts for both revenue
streams that were executed during the year have
been accounted for in accordance with AASB 15
Revenue from Contracts with Customers
Performing trend analysis and other analytic
techniques on both revenue streams to test amounts
recorded during the year
MIPs or MSUs saved for variable contracts,
Ensuring estimated savings of MIPs or MSUs
and
the inputs used to calculate the conversion
of time/cost into economic benefits.
Given the level of estimation there is significant
audit effort to test revenue and as a result it is a key
audit matter.
detailed in project status reports and recognised as
revenue have been acknowledged and approved by
the Group’s customers
Ensuring estimated savings of MIPS or MSUs
reflected in project status reports were recognised
as revenue in the correct accounting period
Ensuring contract assets for estimated savings of
MIPS or MSUs have been invoiced after year end to
ensure no significant reversal of revenue in future
periods is required, and
Assessing the adequacy of revenue related
disclosures in the financial statements.
2. Recognition of income tax related balances
Key audit matter
How our audit addressed the key audit matter
Refer to note 1(v)(iii) Deferred taxes and note 5
Income Tax Expense
The Group operates in multiple tax jurisdictions with
differing tax laws and regulations increasing the
potential for misstatement of tax related balances
and transactions.
The Group’s tax balances and resulting
expense/(benefit) have significant complexity and
as a result they are a key audit matter.
Our procedures included:
Engaging tax experts to assess management’s
calculations and application of relevant tax laws and
regulations
Reviewing income tax provision calculations for
each jurisdiction
Reconciling income tax expense to prima facie
expense for the year, and
Assessing the adequacy of the disclosures in
relation to tax related balances.
76
Take the lead
Information Other than the Financial Report and Auditor’s Report Thereon
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 2023 but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report, or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with 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
77
Take the lead
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.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance 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 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 17 to 24 of the directors’ report for the year ended 30
June 2023.
In our opinion, the Remuneration Report of the Company for the year ended 30 June 2023 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.
SW Audit
Chartered Accountants
R Blayney Morgan
Partner
Melbourne, 28 September 2023
78
Corporate
Information
ACN 083 090 895
ABN 16 083 090 895
Directors
Fred Grimwade, Non-Executive Chairman
Luke Tuddenham, Managing Director & CEO
Gerry Tuddenham, Executive Director
Steve Targett, Non-Executive Director
Deborah Hadwen, Non-Executive Director
Company Secretary
Mark Licciardo
Principal Registered Office
Principal Registered Office
Level 3, 818 Bourke Street
Docklands VIC 3008
Telephone: +61 (0)3 9684 7900
Internet: www.CPTglobal.com
CPT Global on the Web
Auditors
SW Audit
Level 10, 530 Collins Street
Melbourne VIC 3000
Share Register
Boardroom Pty Ltd
Level 12, 225 George Street
Sydney NSW 2000
Telephone: 1300 737 760
Facsimile: +61 (0)2 9290 9600
Solicitors
Nicholson Ryan Lawyers
Bankers
ANZ Banking Group Limited
For an introduction to the Company and access to
Company announcements, descriptions of our
core business, services and careers, and our
corporate governance policies and procedures
visit our website at www.CPTGlobal.com
ASX Code
CGO
CPT Global FY23 Annual Report
79
ASX Additional
Information
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere
in this report is as follows. The information is current as at 27th of September 2022.
(a) Distribution of equity securities
The number of shareholders, by size of holding, in each class of share are:
1
1,001
5,001
10,001
100,001
-
-
-
-
-
1,000
5,000
10,000
100,000
and over
TOTAL
Ordinary shares
Holders
88
345
159
249
51
892
Total Units
45,034
913,236
1,258,575
8,056,567
31,623,953
41,897,365
%
0.11
2.18
3.00
19.23
75.48
100.00
(b) Twenty largest shareholders
The names of the twenty largest holders of quoted shares are:
Ordinary Fully paid Shares
Number of shares
Percentage
of ordinary
shares
7,575,399
18.081%
2,709,046
2,664,993
1,644,265
1,591,248
1,433,160
6.466%
6.361%
3.925%
3.798%
3.421%
1
2
TUDDY SUPER PTY LTD
GNP NOMINEES PTY LTD
3 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
TUDDY SUPER PTY LTD
TUDDY SUPER PTY LTD
WESTFERRY OPERATIONS PTY LTD
4
5
6
7
CLAPSY PTY LTD
1,273,501
3.040%
CPT Global FY23 Annual Report
80
8
9
TUDDCORP PTY LTD
MR PHILIP ADAM & MRS SANDRA ADAM
10 TEN TALENTS (2020) LIMITED
11 MR PAWEL REJ & MRS MIROSLAWA REJ
12 B&E TUDDENHAM PTY LTD
MR NEVILLE WINSTON ANDREW HASKETT & MRS VICKI
PAULINE HASKETT
13
14 MUTUAL TRUST PTY LTD
MR DAVID KEITH COLLINS & MS CHERIE MARIA MILLAR
15
16 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED >
WESTFERRY OPERATIONS PTY LTD
17
18 MIDDLE VALE PTY LTD
19 BNP PARIBAS NOMS PTY LTD
20 MRS ALISON BOLGER
Number of shares
1,184,409
916,255
805,667
758,641
598,265
501,000
500,000
493,212
462,753
396,924
372,603
365,686
362,550
Percentage
of ordinary
shares
2.827%
2.187%
1.923%
1.811%
1.428%
1.196%
1.193%
1.177%
1.104%
0.947%
0.889%
0.873%
0.865%
Total Securities of Top 20 Holdings
26,609,577
63.511%
(c) Shares Held in Escrow
There are no escrowed securities on issue at the date of this Report.
(d) Substantial Shareholders
The names of substantial shareholders who have notified the Company in accordance with
section 671B of the Corporations Act 2001 are:
MR GERRY TUDDENHAM AND HIS ASSOCIATES (EXCLUDING HIS BENEFICIAL
INTEREST IN THE CPT TRUST)
GNP NOMINEES PTY LTD AS TRUSTEE FOR THE CPT TRUST
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CPT Global FY23 Annual Report
Number of Shares
10,859,081
2,709,046
2,664,993
81
(e) Voting Rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
Performance rights do not carry voting rights.
CPT Global FY23 Annual Report
82