1
Annual Report
CPT Global Limited
www.cptglobal.com
FY2024
2
Table of Contents
Chairman’s Review ......................................................................... 3
Managing Director’s Review ....................................................... 5
Director’s Report ............................................................................. 8
Remuneration Report.................................................................. 17
Auditor’s Independence Declaration .................................... 26
Consolidated Financial Statements ........................................ 27
Notes to the Financial Statements ......................................... 32
Consolidated Entity Disclosure Statement .......................... 68
Directors’ Declaration ................................................................. 69
Independent Auditor’s Report ................................................. 70
Corporate Information ............................................................... 75
ASX Additional Information ...................................................... 76
3
Chairman’s Review
Dear Fellow CPT Global Shareholder,
The year ended 30 June 2024 presented ongoing challenges for CPT Global, with a reported
net loss before tax of $1.41 million, and revenue declined by 26% compared to the previous
year. This result was primarily driven by reduced business activity, influenced by a subdued
economic environment, particularly in Australia and APAC.
This revenue shortfall required us to carefully manage expenses, balancing cost control with
continued investment in future opportunities. While FY24 was difficult, we are now seeing
early signs of recovery as client willingness to invest in IT services improves. Recent wins have
positioned us more favourably as we head into FY25:
•
The Northern Hemisphere business continues to perform well. We are seeing
significant market opportunities in both North America and Europe, where interest in
our mainframe and security services is growing.
•
In Australia and APAC, we are encouraged by an increasing interest in our services,
particularly in Mainframe offerings, the government sector, and ERP services.
Additionally, we are expanding our presence back into Sydney and Canberra to
capitalise on emerging opportunities in these markets.
Our dedicated team of specialist technical consultants has remained loyal and resilient
throughout these challenges, ensuring CPT Global continues to support some of the world’s
largest companies in solving complex IT problems. We are laying the groundwork for a
strong future, focusing on providing solutions in an increasingly complex and dynamic
global market. We have also invested in our Mainframe Mentoring Program, which now
includes five graduates, and in our Security practice, which is gaining momentum and
complements our mainframe expertise.
As we work towards profitability, our strategy is centered around three core pillars:
1.
Strengthening key client relationships, ensuring CPT remains a trusted and relevant
partner.
2.
Leveraging our core strengths in mainframe, midrange, and testing services.
3.
Maximising geographic opportunities, focusing on the unique potential each region
offers.
4
In terms of leadership, we have asked our CEO, Luke Tuddenham, to drive growth in the
Northern Hemisphere, while CPT’s Founder, Gerry Tuddenham, is focused on regenerating
our Australian and APAC business.
Given our current financial position, we will not be declaring a final dividend this year.
However, we remain committed to resuming our dividend payout ratio as soon as
circumstances allow.
Despite the challenges of FY24, I would like to express my sincere gratitude to our fellow
Directors, the Executive team, and our dedicated staff for their unwavering efforts. I would
also like to extend my thanks to our investors for their continued support and loyalty. We
understand the importance of returning to profitability, and we are fully committed to
achieving this in the coming year.
Steve Targett
Chairman
26 September 2024
5
Managing Director’s
Review
As we reflect on the past year and look forward, CPT Global is optimistic as we continue
adapting to industry changes and the needs of our clients. Since the major disruptions of
2020, the IT industry has been evolving, with clients investing and adopting new
technologies more cautiously. While this has provided opportunities, it has also come with
challenges.
Despite these challenges, CPT is well-positioned to deliver value to both clients and investors
by leveraging its strengths in mainframe, midrange, and testing services while strategically
investing in growth areas, particularly in mainframe security.
We continue to implement innovative solutions and explore opportunities in cost
optimisation and performance tuning. These efforts not only deliver substantial cost savings
to clients but also drive significant energy efficiencies. This alignment with our clients'
financial objectives and ESG commitments ensures CPT is leveraging an approach that
benefits both their bottom line and environmental goals.
As we continue to expand our offerings and adapt to change, we are focused on the future
and on delivering excellence across our business with our trusted clients.
Mainframe Services
The mainframe is still essential to enterprises, playing a key role in client operations and our
team's success. As organisations consider modernising and migrating to the cloud, they are
increasingly recognising the inherent value, stability, resiliency, and security of mainframes in
their hybrid architectures, and CPT is seizing opportunities on this trend. CPT is also well
positioned and currently helping customers with migrating away from CA-Broadcom
software to avoid recent increases in license renewal costs.
Our focus on optimising, modernising, and securing mainframe systems has served us well
over our 30-year history. Expanding into midrange and cloud solutions has allowed us to
diversify our offerings and open new doors. Incremental investment in our security offerings
aligns well with our expertise and is an exciting opportunity for growth. It also enhances our
value proposition and positions CPT as a comprehensive solutions provider in a competitive
market.
Ultimately, our goal is to empower clients with a suite of integrated solutions that meet their
unique needs, ensuring they can also stay agile as markets shift.
6
Quality Assurance & Testing
Our quality assurance and testing services are a core strength that reinforce our identity as
testing experts. Along with our mainframe services, these offerings have been key in
positioning CPT as a leader in the independent testing market. We also continue to refine
our mainframe test coverage software and strategy, exploring ways to infuse our technical
expertise and systems into software and business solutions across various platforms, setting
the stage for a new revenue stream that widens our market scope. Currently, we are actively
seeking opportunities to expand our reach by aligning with businesses that share our values
and can benefit from our expertise.
We continue to invest in our team's skills and capabilities, ensuring we deliver industry-
leading services and stay competitive in the market. With our focus on automation, CPT is
strategically positioned to meet client demands with enhanced efficiency and effectiveness,
giving us a competitive edge in the market.
Market Opportunities
The US, Canada, and European markets offer significant potential, with opportunities that
align well with our mainframe services. Luke Tuddenham (CEO) is dedicating his time to
building strong relationships in these regions while Gerry Tuddenham oversees the
Australian and APAC business.
Northern Region Strategy
Our strategy for the Northern region focuses on investing in our Security and Optimisation
services, rejuvenating past relationships, expanding existing ones, and creating opportunities
that serve a broader client base. CPT is also forming partnerships with key industry players to
access larger client projects through our combined expertise and resources.
Recent trends show that clients are increasingly interested in advanced security solutions.
Harnessing our expertise and continuing to invest in world class talent will help CPT seize the
opportunities presented by this expanding market to drive growth.
Australia & APAC Strategy
The Australia and APAC regions also offer promising opportunities. As the Founder of CPT
and recently appointed leader for the region, Gerry is key to our organisation's growth. His
deep understanding of local market dynamics and extensive experience are enhancing client
relationships and helping the team find new opportunities beyond Melbourne. Having Gerry
at the helm has re-energised our sales efforts in the region, particularly around mainframe
services and in the government sector.
In this new role, Gerry will work closely with practice and resourcing leads to refine our
regional offerings, ensuring they align with market needs and leverage CPT's strengths. Our
primary goal is to strategically position CPT to capitalise on opportunities that yield quick
results and promote long-term stability, maximising our market presence while establishing
a strong foundation for the future.
7
Building on Gerry’s initiatives and momentum, we have high expectations for growth in this
region over the coming years. As we fine-tune our operational model to support success in
both regions, we are committed to enhancing our global footprint and profitability.
Looking Forward to FY2025
As we move into FY2025, CPT Global is on a clear path forward to building deeper
relationships with our clients and partners. We are also focused on delivering excellence in all
areas of our business and expanding our services to meet industry demands.
Our goal is to not only maintain, but elevate CPT's position as a trusted partner, providing
innovative solutions that help our clients succeed in IT and thrive in business. The focus will
be on collaborating with our talented team and lead CPT into the future, with a strong focus
on growth and delivering value to all stakeholders. Together, we will continue to push the
boundaries of what is possible and create a brighter future for our clients, investors, and the
organisation.
Luke Tuddenham
Managing Director, CEO
26 September 2024
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CPT Global FY24 Annual Report
Director’s Report
The directors submit the financial report of CPT Global Limited (or the Company) and its
controlled entities (the Group) for the full year ended 30 June 2024.
Directors
The directors of CPT Global for the year ending 30 June 2024 and up until the date of this report
are:
Steve Targett
Chairman
As a Non-Executive Director, Steve chairs the board of CPT and the
Remuneration Committee and is a member of the Audit and Risk
Committee. He also holds other prominent positions, including Chair of the
ASX-listed Pioneer Credit Limited. He previously served as Chair of the
Member-Owned Banking Group Police and Nurses Limited, stepping down
in December 2023.
Throughout his executive career, Steve has led large global divisions at ANZ Bank and NAB in
Australia, and Lloyds Bank in London, directly reporting to the Group CEO. His international
experience spans Australia, the United Kingdom, and Japan.
Steve is a member of the Australian Institute of Company Directors. Steve also holds the Series 3
U.S. National Futures Association qualification and is a graduate of the Australian Institute of
Export. 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.
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CPT Global FY24 Annual Report
Luke Tuddenham
Managing Director, 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. 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 a Graduate of the Australian Institute of Company Directors.
Gerry Tuddenham
Executive Director
Gerry is the founder of and a major shareholder in CPT. He is a member of
the Remuneration Committee and the Audit and Risk Committee. He has
more than 50 years of experience in IT consulting and is a hands-on
technologist with a reputation for delivering practical solutions that meet
client needs.
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 serves on the Finance and Audit Committee.
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CPT Global FY24 Annual Report
Deborah Hadwen
Non-Executive Director
As a Non-Executive Director, Deborah chairs the CPT Audit and Risk
Committee and is a member of the Remuneration Committee. Deborah is an
experienced Non-Executive Director, Managing Director, and CEO with over
30 years in the technology sector. She is the Managing Director of Apoidea
Group Pty Ltd, an advisory firm for technology multinationals and high-growth local tech firms.
Currently, Deborah serves as a Non-Executive Director for Ambition Group Limited and sits on the
Advisory Board for Watermark Search International. Deborah is a member of the Governing
Council of Macquarie University also sitting on its Audit and Risk and Information Management
and Technology Committees.
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.
Deborah holds a Bachelor of Arts and a Master of Arts from the University of Sydney, and a
Master of Commercial Law from Macquarie University. She is also a Graduate of the Australian
Institute of Company Directors (AICD).
Nathan Marburg
Company Secretary, CFO
Nathan was appointed Company Secretary in February 2024. He is an
international finance professional and business advisor with over 25 years
of experience across diverse industries and jurisdictions, including IT
services and consulting, financial services, automotive, pharmaceutical,
and professional services.
Nathan graduated from Monash University with degrees in Business Accounting and Computing,
providing him with a strong foundation in accounting, finance, and technology. He is a Chartered
Accountant, holds a Master of Applied Finance and Investment, and is a Certified Information
Systems Auditor (CISA).
*Deborah Hadwen, Non-Executive Director appointed 1 July 2023
**Fred Grimwade, Chairman resigned 22 November 2023
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CPT Global FY24 Annual Report
Financial Overview
CPT Global faced significant challenges in FY24, leading to disappointing financial results. While
our core business services remained profitable, reduced activity across the group has led to
overall losses. As a result, we have implemented tighter cost controls and made targeted strategic
investments to support growth and address emerging market demands.
The revenue for the year ended 30 June 2024 was $20,714,755, a 26% decrease on the previous
year’s revenue of $28,131,258. The net loss before tax was $1,410,041, with a net loss after tax of
$1,589,354. FY2024 loss was predominantly from market conditions and associated reduced
business activity, mainly in Australia & APAC.
The table below shows the performance over the last three reporting periods:
FY2024
HY2023
FY2023
$
$
$
Revenue
20,714,755
11,279,235
28,131,258
(Loss) / profit before tax
(1,410,041)
202,266
(1,494,474)
Tax (expense)/benefit
(179,313)
65,249
(566,375)
(Loss) / profit after tax
(1,589,354)
267,515
(2,060,849)
Impairment of financial assets*
36,368
-
1,026,874
(Loss) / profit after tax & excluding impairment
(1,552,986)
267,515
(1,033,975)
*Impairment relates to the CAD non-cash write down net of tax
Notable points for FY2024:
•
Australia & APAC revenue of $8,597,734 down on FY2023 ($15,394,405), following major
programs of work ending, coupled with challenging market conditions, including in the
government sector, which impacted renewals, the securing of new major programs, and
general business activity.
•
Northern Hemisphere revenues of $12,117,021 down on FY2023 ($12,736,853) from
depressed market conditions, with some recent positive momentum heading into FY2025.
•
Finance costs increased mainly due to interest related to Australian tax liabilities, pending
the outcome of an ATO remediation lodgement. Other operating costs decreased,
primarily from reductions in professional and advisory fees, rental costs, and insurance
premiums, but were partially offset by increases in salaries and benefits (due to director
fees from overlap with the outgoing Chair and higher statutory and pension costs) as well
as license and subscription costs (for enhanced internal systems security and marketing
tools).
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CPT Global FY24 Annual Report
•
Following a comprehensive review in FY2023, an impairment of CA$1,018,106
(AU$1,140,991) related to Canadian tax was required. The closing balance held as a non-
current receivable was CA$580,859 (AU$662,065), which is the probability weighted
amount currently being pursued for recovery from the CRA and associated individuals
these relate to. In FY2024, progress has been made in recovering amounts from the CRA
and assessing eligibility of refunds, with the balance at 30 June 2024 being CA$501,168
(AU$549,410), and a further impairment of CA$45,000 (AU$49,480) for amounts deemed
unrecoverable.
•
HY2024 profit before tax included an accounting adjustment of $449,240 relating to Long
Term Incentives (LTI) for prior year balances, including CEO LTI’2022 written down to zero
($337,240) as performance hurdles were not met, and CEO LTI’2023 ($112,000) provision
released following the grant of the performance rights at the 22 November 2023 AGM.
$62,605 of share-based payment expense was recognised following the grant of
performance rights to the CEO and employees during the year, bringing the share-based
payments movements to $386,635.
Financial Position
CPT Global’s performance has resulted in a decrease of net assets to $1,049,965 compared to
$2,918,260 in 2023, mainly due to a reduction in trade other receivables and contract assets due
to decreased business activity.
Cash Flow
CPT Global had $1,599,267 in cash as at 30 June 2024 and $1,244,980 on 30 June 2023. 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 2024. However, it is our intention to return to our
dividend payout ratio in future.
Earnings Per Share
Earnings Per Share
2024
2023
Basic loss per share (cents per share)
(3.79)
(4.92)
Diluted loss per share (center per share)
(3.79)
(4.92)
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CPT Global FY24 Annual Report
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
Steve Targett
204,213
-
-
-
Luke Tuddenham
1,269,619
2,000,000
-
-
Gerry Tuddenham
13,587,279
-
-
-
Deborah Hadwen
112,001
-
-
-
Nathan Marburg
50,000
685,780
-
-
Fred S Grimwade (resigned 22 Nov 2023)
718,200
-
-
-
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.
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CPT Global FY24 Annual Report
Disclosure of Material Business Risk
Risk
Description
Mitigation
Strategic Accounts
& Business
Slowdown
Loss of key strategic accounts and
business slowdown, potentially affecting
revenue, profitability, and overall business
growth.
We are strengthening client relationships, expanding
strategic partnerships, and exploring new market channels
and jurisdictions to reduce reliance on individual accounts
and support sustainable growth.
Cyber Security
Unauthorised access to systems or data,
with potential consequences including
operational, financial, and reputational
harm.
An IT & cyber security working group has been established,
rolling out enhanced security measures, staff training, and
system monitoring. Additionally, we are actively pursuing
certifications to strengthen our defences.
Delivery Quality
Assurance
Challenges in meeting client expectations
or project requirements, particularly as
programs grow in size and complexity.
A structured governance framework exists for project
delivery, with key account leadership ensuring real-time
monitoring. This supports consistent quality and mitigates
failure risks.
Liquidity
Management
Cash flow constraints due to unforeseen
expenses, business slowdowns, or
delayed payments from major clients,
potentially disrupting operational
continuity.
Proactive liquidity management strategies, such as daily
cash forecasting, debtor management, and leveraging our
international bank network and financing facilities, help
ensure operational continuity. Exploring additional
financing options is underway.
Succession Planning
Insufficient succession planning for key
leadership positions, posing a risk of
operational disruption.
A comprehensive succession framework is being developed
to identify key personnel and successors. Initiatives such as
upskilling and knowledge transfer are in place to ensure
leadership continuity and address any gaps in key roles.
Employees
The Group employed 108 employees and contractors as at 30 June 2024 (2023: 132 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.
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CPT Global FY24 Annual Report
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, Officers and
Auditors
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 $85,811.
No indemnity has been given or insurance premiums paid, during or since the end of the financial
year, for any person who is or has been an auditor of the Group.
Director’s Meetings held and attendance during the financial
year
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
Audit & Risk
Committee Meetings
Remuneration
Committee Meetings
Held
Attended
Held
Attended
Held
Attended
Steve Targett
11
11
4
4
4
4
Luke Tuddenham
11
11
4
4
4
4
Gerry Tuddenham
11
11
4
4
4
4
Deborah Hadwen
11
11
4
4
4
4
Fred Grimwade*
5
5
2
2
3
3
*Fred Grimwade resigned 22 November 2023
Committee Membership
As at the date of this report, the Company had a Finance and Audit Committee and a
Remuneration Committee of the Board of Directors.
Members acting on the committees of the Board during the year were:
Audit Committee
Remuneration Committee
Deborah Hadwen (Chair)
Gerry Tuddenham
Steve Targett (Chair)
Gerry Tuddenham (non-voting member)
Steve Targett
Deborah Hadwen
Fred Grimwade (resigned 22 November 2023)
Fred Grimwade (resigned 22 November 2023)
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CPT Global FY24 Annual Report
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 Audit and Risk 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 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 2024:
o Taxation compliance services: $65,883
o Other services $3,400
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CPT Global FY24 Annual Report
Remuneration Report
The Remuneration Report for the year ended 30 June 2024 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:
Steve Targett
Non-Executive Chairman
Luke Tuddenham
Managing Director, CEO
Gerry Tuddenham
Executive Director
Deborah Hadwen
Non-Executive Director (appointed 1 July 2023)
Nathan Marburg
Chief Financial Officer, Company Secretary
Fred Grimwade
Chairman (resigned 22 November 2023)
Remuneration Policy
The Remuneration 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 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
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 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 Committee links the nature and amount
of executive directors’ and officers’ remuneration to the Company’s financial and operational
performance and shareholders’ value.
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CPT Global FY24 Annual Report
Performance-Based Remuneration
Executives have short-term ‘at risk’ cash bonuses, the payment of which depends on the executive
meeting their KPIs. 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 and executives 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.
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 2024 financial year do
not exceed the cap.
There have been changes to director fees in the year which are outlined in the remuneration
schedules.
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CPT Global FY24 Annual Report
Remuneration 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 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 to be recommended by
Remuneration Committee for approval by the Board;
short term performance incentive payments are paid, dependent upon CPT Global
achieving its objectives and the individual achieving their KPIs, subject to Board discretion;
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;
a contract can be terminated immediately without notice by CPT Global for serious
misconduct; and
any options / Performance Rights (PRs) are subject to the Plan Rules, where continuous
service during the whole of the measurement period is not a requirement in order for the
PRs to be eligible to vest
Specific details of each Senior Executive’s contract of employment which applied at the end of the
financial year ending 30 June 2024 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:
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CPT Global FY24 Annual Report
Summary of Employee Contracts Applicable at 30 June 2024
Luke Tuddenham
Position
Managing Director, CEO
Fixed Remuneration
Base Salary excl statutory on-costs
US$350,000
401K (incl. matching)
US$43,700
Medical Insurance
US$40,641
Non-monetary benefits
Mobile telephone, car parking, motor vehicle lease, executive health
check, flights for family (chairman preapproval required) and other
miscellaneous expenses
Performance Based Remuneration
Annual target bonus
US$325,000
Other benefits
Nil
Post-employment benefits
Nil
Post-employment restraint
12 months
Termination notice
3 months
Termination benefits
US$125,000
Gerry Tuddenham
Position
Executive Director
Fixed Remuneration
Base Salary excl statutory on-costs
$237,500
Superannuation
$27,500
Non-monetary benefits
Mobile telephone, laptop, car park, road tolls
Performance Based Remuneration
Annual target bonus
$50,000
Other benefits
Nil
Post-employment benefits
Nil
Post-employment restraint
6 months
Termination notice
1 month
Termination benefits
Nil
21
CPT Global FY24 Annual Report
Steve Targett
Position
Non-Executive Director
Fixed Remuneration
Base Salary
$99,099
Superannuation
$10,901
Transitional Director Fee
$30,000
Non-monetary benefits
Professional subscription, board related travel and expenses
Deborah Hadwen
Position
Non-Executive Director
Fixed Remuneration
Base Salary
$76,577
Superannuation
$8,423
Non-monetary benefits
Professional subscription, board related travel and expenses
Fred Grimwade
Position
Non-Executive Director
Fixed Remuneration
Base Salary
$77,629
Superannuation
$8,151
Non-monetary benefits
Professional subscription
22
CPT Global FY24 Annual Report
Nathan Marburg
Position
Chief Financial Officer
Fixed Remuneration
Base Salary
$304,000
Superannuation
$27,500
Non-monetary benefits
Mobile telephone, laptop, professional subscription
Performance Based Remuneration
Annual target bonus
$40,000
Other benefits
Nil
Post-employment benefits
Nil
Post-employment restraint
6 months
Termination notice
2 months
Termination benefits
Nil
23
CPT Global FY24 Annual Report
Notes
1.
The elements of remuneration have been determined based on the cost to the Group.
2.
Luke Tuddenham’s remuneration is primarily in US dollars, the amounts above have been translated into Australian dollars using the
average FX rate for the period.
3.
Steve Targett was appointed as Non-Executed Director on 24 January 2023.
4.
Nigel Sandiford resigned on 1 August 2022.
5.
Yasas appointed as interim CFO on 1 Nov 2022 and resigned as CFO on 19 May 2023. He was replaced by Nathan Marburg
(appointed 26 April 2023).
6.
Fred Grimwade resigned on 22 November 2023.
7.
Deborah Hadwen appointed 1 July 2023.
Post Emp’t
Benefits
Total
Performance
related
$
$
$
$
$
$
$
$
$
$
Directors
Fred Grimwade
2024
30,813
-
-
-
3,389
-
-
-
34,202
0.0%
2023
77,629
-
-
-
8,151
-
-
-
85,780
0.0%
Deborah Hadwen
2024
70,104
-
-
-
7,226
-
-
-
77,330
0.0%
2023
-
-
-
-
-
-
-
-
-
0.0%
Steve Targett
2024
79,116
-
-
-
11,612
27,027
-
-
117,756
0.0%
2023
28,221
-
-
-
2,916
-
-
-
31,138
0.0%
Nigel Sandiford
2024
-
-
-
-
-
-
-
-
-
0.0%
2023
12,500
-
-
-
1,313
-
-
-
13,813
0.0%
Luke Tuddenham
-
2024
687,152
62,958
62,776
44,303
-
-
(112,000)
(289,880)
455,309
-74.5%
2023
601,405
49,132
206,453
152,218
-
-
112,000
207,148
1,328,356
39.6%
Gerry Tuddenham
2024
243,406
35,144
-
4,291
27,500
-
-
-
310,341
0.0%
2023
340,466
56,320
-
4,304
27,500
-
-
-
428,590
0.0%
2024
1,110,590
98,102
62,776
48,595
49,728
27,027
(112,000)
(289,880)
994,937
-34.1%
2023
1,060,222
105,452
206,453
156,522
39,880
-
112,000
207,148
1,887,677
27.8%
Executive Officers
Nathan Marburg
2024
304,979
12,721
10,000
314
27,500
-
-
11,728
367,241
5.9%
2023
23,462
6,972
-
100
7,988
-
-
-
38,522
0.0%
Yasas Jayasuriya
2024
-
-
-
-
-
-
-
-
-
0.0%
2023
137,202
-
3,017
456
14,597
3,304
-
-
158,577
1.9%
Total Executive Officers Remuneration
2024
304,979
12,721
10,000
314
27,500
-
-
11,728
367,241
5.9%
2023
160,664
6,972
3,017
556
22,585
3,304
-
-
197,098
1.5%
Total Remuneration
2024
1,415,569
110,823
72,776
48,908
77,228
27,027
(112,000)
(278,152)
1,362,179
-23.3%
2023
1,220,886
112,424
209,470
157,078
62,465
3,304
112,000
207,148
2,084,775
25.4%
Short-Term Benefits
Super
Annual &
Long Service
Leave
Short-term
Bonus
Salary
Total Directors Remuneration
Other
Benefits
Other
Share Based
Payments
Long-term
Bonus
24
CPT Global FY24 Annual Report
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. Each
employee’s bonus is modelled based on the achievement of targets and meeting organisation
values. Before any payments are made, the calculations and eligibility for such payments must be
approved by the Board, following the review and recommendation by the Remuneration
Committee that will consider an individual’s achievements as well as the Group’s performance for
that period.
Performance Rights Granted as Remuneration
Granted No.
Grant
Date
Vested
No.
Value per
Share at Grant
Date
$
Exercise
Price
$
Last Exercise
Date
Luke Tuddenham
1,000,000
22/11/23
-
$0.115
$0.00
01/09/25
Luke Tuddenham
1,000,000
22/11/23
-
$0.115
$0.00
01/09/26
Nathan Marburg
685,780
15/12/23
-
$0.115
$0.00
15/12/38
Total
2,685,780
Further details on the service and performance criteria attached to these rights can be found in Note 19.
Balance at
beginning of
Period
Granted as
Remuneration
Rights
Exercised
Rights Lapsed
/Cancelled
Balance at End
of Period
Luke Tuddenham
1,000,000
2,000,000
-
(1,000,000)
2,000,000
Nathan Marburg
-
685,780
-
-
685,780
Total
1,000,000
2,685,780
-
(1,000,000)
2,685,780
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 2022
Granted as
Remuneration
On Exercise of
Options
Net Change
Other
Balance 30
June 2023
Ord
Ord
Ord
Ord
Ord
Fred S Grimwade**
718,200
-
-
-
718,200
Nigel Sandiford*
309,058
-
-
-
309,058
Gerry Tuddenham
13,561,808
-
-
6,319
13,568,127
Luke Tuddenham
1,066,848
-
-
202,771
1,269,619
Total
15,655,914
-
-
209,090
15,865,004
25
CPT Global FY24 Annual Report
Shares held in CPT Global
Limited
Balance 30
June 2023
Granted as
Remuneration
On Exercise of
Options
Net Change
Other
Balance 30
June 2024
Ord
Ord
Ord
Ord
Ord
Fred S Grimwade**
718,200
-
-
-
718,200
Gerry Tuddenham
13,568,127
-
-
19,152
13,587,279
Luke Tuddenham
1,269,619
-
-
-
1,269,619
Steve Targett
-
-
-
204,213
204,213
Deborah Hadwen
-
-
-
112,001
112,001
Specified Executives
Nathan Marburg
-
-
-
50,000
50,000
Total
15,555,946
-
-
385,366
15,941,312
*Nigel Sandiford resigned on 1 August 2022.
**Fred Grimwade resigned on 22 November 2023.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2024 has been received
and can be found on page 26 of the directors’ report.
Signed in accordance with a resolution of the directors.
Deborah Hadwen
Non-Executive Director, Chair Audit and Risk Committee
26 September 2024
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
26
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 2024 there
have been:
i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation
to the audit, and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
SW Audit
Chartered Accountants
R Blayney Morgan
Partner
Melbourne, 26 September 2024
27
CPT Global FY24 Annual Report
Consolidated Financial
Statements
28
CPT Global FY24 Annual Report
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
YEAR ENDED 30 JUNE 2024
30 Jun 24
30 Jun 23
Notes
$
$
Revenue
3
20,714,755
28,131,258
Other income
3
10,012
9,577
Share based payment arrangements
19(a)
386,635
(319,148)
Salaries and employee benefits
(4,287,609)
(4,143,263)
Consultant benefits
(14,481,280)
(20,598,398)
Depreciation and amortisation
4
(25,376)
(15,096)
Insurance
(449,506)
(474,537)
Finance costs
4
(436,863)
(67,333)
Occupancy costs
(226,523)
(322,429)
Professional Services
(723,663)
(858,100)
Licenses & Subscriptions
(383,340)
(283,847)
Other expenses
4
(1,456,990)
(1,412,258)
Impairment of financial assets
(49,480)
(1,140,991)
Foreign currency (loss)/gains
(813)
91
(LOSS) BEFORE INCOME TAX
(1,410,041)
(1,494,474)
INCOME TAX (EXPENSE)
5
(179,313)
(566,375)
(LOSS) AFTER INCOME TAX
(1,589,354)
(2,060,849)
Other Comprehensive Income:
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations
(4,306)
19,822
Total Other Comprehensive (Deficit)/Income for the year, net of tax
(4,306)
19,822
TOTAL COMPREHENSIVE (DEFICIT) FOR THE YEAR
(1,593,660)
(2,041,027)
(LOSS) ATTRIBUTABLE TO MEMBERS OF CPT GLOBAL LIMITED
(1,589,354)
(2,060,849)
TOTAL COMPREHENSIVE (DEFICIT) ATTRIBUTABLE TO MEMBERS OF CPT
GLOBAL LIMITED
(1,593,660)
(2,041,027)
Basic (loss) per share (cents per share)
20
(3.79)
(4.92)
Diluted (loss) per share (cents per share)
20
(3.79)
(4.92)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction
with the Notes to the Financial Statements.
29
CPT Global FY24 Annual Report
Consolidated Statement of Financial Position
AT JUNE 30 2024
Notes
30 Jun 24
30 Jun 23
$
$
CURRENT ASSETS
Cash and cash equivalents
6
1,599,267
1,244,980
Trade and other receivables
7
2,345,816
3,192,696
Contract assets
8
537,531
1,095,410
Other current assets
9
238,175
657,323
Current tax assets
407,557
450,006
TOTAL CURRENT ASSETS
5,128,346
6,640,415
NON-CURRENT ASSETS
Trade and other receivables
7
549,410
662,065
Deferred tax assets
5
883,381
833,429
Right-of-use assets
11
199,636
-
Property, plant, and equipment
10
20,478
34,390
TOTAL NON-CURRENT ASSETS
1,652,905
1,529,884
TOTAL ASSETS
6,781,251
8,170,299
CURRENT LIABILITIES
Trade and other payables
12
3,925,408
3,603,182
Contract liabilities
13
283,771
196,901
Lease liabilities
14
78,837
-
Provisions
16
1,272,860
1,313,172
TOTAL CURRENT LIABILITIES
5,560,876
5,113,255
NON-CURRENT LIABILITIES
Lease liabilities
14
130,032
-
Provisions
16
40,378
138,784
TOTAL NON-CURRENT LIABILITIES
170,410
138,784
TOTAL LIABILITIES
5,731,286
5,252,039
NET ASSETS
1,049,965
2,918,260
EQUITY
Issued capital
17
13,918,575
13,918,575
Reserves
18
656,762
935,703
Accumulated losses
(13,525,372)
(11,936,018)
TOTAL EQUITY
1,049,965
2,918,260
The Consolidated Statement of Financial Position is to be read in conjunction with the Notes to the Financial
Statements.
30
CPT Global FY24 Annual Report
Consolidated Statement of Changes in Equity
YEAR ENDED 30 JUNE 2024
$
$
$
$
$
Issued Capital
Accumulated
Employee
Compensation
Foreign
Currency
Translation
Ordinary
Losses
Reserve
Reserve
Total
Balance at 1 July 2022
13,818,324
(9,208,422)
1,828,829
(1,120,096)
5,318,635
Comprehensive Income
Loss for the year
-
(2,060,849)
-
-
(2,060,849)
Other comprehensive income
-
-
-
19,822
19,822
Total comprehensive deficit for
the year
-
(2,060,849)
-
19,822
(2,041,027)
Transactions with owners, in their
capacity as owners
Dividends paid or provided for
-
(666,747)
-
-
(666,747)
Issue of shares
100,251
-
-
-
100,251
Share-based payments
-
-
207,148
-
207,148
Total transactions with owners, in
their capacity as owners
100,251
(666,747)
207,148
-
(359,348)
Balance at 30 June 2023
13,918,575
(11,936,018)
2,035,977
(1,100,274)
2,918,260
Balance at 1 July 2023
13,918,575
(11,936,018)
2,035,977
(1,100,274)
2,918,260
Comprehensive Income
Loss for the year
-
(1,589,354)
-
-
(1,589,354)
Other comprehensive deficit
-
-
-
(4,306)
(4,306)
Total comprehensive deficit for
the year
-
(1,589,354)
-
(4,306)
(1,593,660)
Transactions with owners, in their
capacity as owners
Dividends paid or provided for
-
-
-
-
-
Issue of shares
-
-
-
-
-
Share-based payments
-
-
(274,635)
-
(274,635)
Total transactions with owners, in
their capacity as owners
-
-
(274,635)
-
(274,635)
Balance at 30 June 2024
13,918,575
(13,525,372)
1,761,342
(1,104,580)
1,049,965
The Consolidated Statement of Changes in Equity is to be read in conjunction with the Notes to the
Financial Statements.
31
CPT Global FY24 Annual Report
Consolidated Statement of Cash Flows
YEAR ENDED 30 June 2024
The Consolidated Statement of Cash Flows is to be read in conjunction with the Notes to the Financial
Statements.
30 Jun 24
30 Jun 23
$
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
24,341,035
30,012,990
Payments to suppliers and employees
(23,714,649)
(31,412,973)
Interest received
10,012
9,577
Finance costs
(87,204)
(48,115)
Income tax paid
(186,816)
(822,648)
NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES
22
362,378
(2,261,169)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of software, property, plant and equipment
(3,771)
(34,529)
NET CASH FLOWS USED IN INVESTING ACTIVITIES
(3,771)
(34,529)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of dividends on ordinary shares
-
(566,496)
NET CASH FLOWS USED IN FINANCING ACTIVITIES
-
(566,496)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS HELD
358,607
(2,862,194)
Opening cash and cash equivalents
1,244,980
4,087,261
Effects of exchange rate changes on cash and cash equivalents
(4,320)
19,913
CLOSING CASH AND CASH EQUIVALENTS
6
1,599,267
1,244,980
32
CPT Global FY24 Annual Report
Notes to the Financial
Statements
Year Ended 30 June 2024
1. Summary of Material 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 these financial statements as
permitted by the Corporations Act 2001. The parent entity information can be found at Note 25.
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 26 September 2024 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 by the valuation 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 2024, the Group reported a net loss after tax of $1,589,354 (2023: net
loss after tax of $2,060,849) and net cash inflows from operating activities of $362,378 (2023: net
cash used in operating activities of $2,261,169). At 30 June 2024, the Group had a net working
33
CPT Global FY24 Annual Report
capital deficiency of $432,530, largely driven by reduced business activity due to a subdued
business and economic environment, particularly affecting Australia and APAC.
The Directors remain committed to the long-term business plan that is contributing to improved
results in the business performance:
Business conditions have improved, with increased client willingness to spend and recent
wins positioning us well for FY25. We anticipate that the expected increase in business
activity will improve our cash position.
o The Northern business continues to perform strongly, benefiting from higher
margins through cost arbitrage and higher rates.
o There are encouraging signs in Australia & APAC, with recent wins and growing
interest in our services, particularly in Mainframe offerings (including Security), the
government sector (with SMEs now able to engage directly up to $500k per
engagement from 1 July, along with an increase in government-issued tenders),
and ERP services (notably SAP and Workday).
We continue to leverage our securitisation facility for Australian debtors (through ScotPac)
and our international banking network for liquidity and cash management.
We are exploring extending securitisation facilities to our international operations with our
existing provider, in addition to leveraging Export Finance Australia (EFA) for large risk-
reward and fixed-price projects, as we have done in prior years.
We will continue to explore potential opportunities for further cost rationalisation in both
business and operational areas, should business conditions not improve as anticipated.
The Company retains flexibility to raise equity on the ASX or through convertible
instruments, providing additional options to support future growth and operational needs.
The Founder, who is the major shareholder, remains actively involved in the business as
Executive Director and Head of APAC and continues to support the Group’s operations.
The Directors have reviewed the cash flow forecast for the next 12 months and believe it is
appropriate 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 24.
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
34
CPT Global FY24 Annual Report
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.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent that it is probable that future taxable profits will be available
against which they can be used. The Group assesses the recoverability of deferred tax assets
balances at each reporting date and are reduced to the extent that it is no longer probable that
the related tax benefit will be realised; such reductions are reversed when the probability of future
taxable profits improves.
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally
enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets
and deferred tax liabilities relate to income taxes levied by the same taxation authority on either
the same taxable entity or different taxable entities which intend either to settle current tax
liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously,
in each future period in which significant amounts of deferred tax liabilities or assets are expected
to be settled or recovered.
(c) Contract Assets
Contract assets represent amounts relating to revenue recognised that has not been invoiced to
the customer 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.
(d) Property, Plant, & Equipment
Each class of property, plant, and equipment is carried at cost less accumulated depreciation and
where applicable, impairment losses.
35
CPT Global FY24 Annual Report
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.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Depreciation Rate
Computer Equipment
33% to 50%
Fixtures, Fittings and Equipment
33% to 50%
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
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date. The right-
of-use asset is subsequently depreciated under the straight-line method from the commencement
date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted using the incremental borrowing rate. The lease liability is
measured at amortised cost under the effective interest method.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term
leases. The Group recognises the lease payments associated with these leases as an expense on a
straight-line basis over the lease term.
(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.
Financial instruments are initially measured at fair value plus transaction costs. 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.
36
CPT Global FY24 Annual Report
Classification of Financial Assets
Financial assets recognised by the Group are subsequently measured at amortised cost.
Classification of Financial Liabilities
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. 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.
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.
Any financial assets that have been written off but subsequently recovered in whole or in part are
recognised in profit or loss.
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) Trade 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 assets to
determine whether there is any indication that those assets have been impaired. If such an
37
CPT Global FY24 Annual Report
indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value
less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the
asset’s carrying value over its recoverable amount is recognised as an expense in the profit and
loss.
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) 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 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. 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 which would
approximate the rate at the date of the transaction;
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.
38
CPT Global FY24 Annual Report
(j) 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.
(k) 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.
(i) Wages and salaries, and annual 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 provision for employee benefits 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.
(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) 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 19.
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 Monte-Carlo valuation model that takes into
account the exercise price, the term of the right, the impact of dilution, the share price at grant
39
CPT Global FY24 Annual Report
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.
(l) 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.
(m) 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.
(n) 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.
(o) 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 into 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
40
CPT Global FY24 Annual Report
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 over time as performance obligations are satisfied by transferring the
goods or services to the client in the following ways:
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.
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 million instructions per second (MIPS)
or million service units (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
contract 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).
41
CPT Global FY24 Annual Report
(p) 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.
(q) 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.
(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.
42
CPT Global FY24 Annual Report
(r) New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations
issued by the Australian Accounting Standard Board (“AASB”) that are mandatory for the current
reporting period. There were no standards adopted in the current period that had a material
impact on the Group.
(s) New Accounting Standards and Interpretations Issued but Not Yet Effective
Certain new accounting standards and interpretations have been published that are not
mandatory for 30 June 2024 reporting periods have not been early adopted by the group.
AASB 18 Presentation and Disclosure in Financial Statements - This Standard will replace AASB 101
Presentation of Financial Statements and will improve how entities communicate in their financial
statements, with a particular focus on information about financial performance in the statement of
profit or loss. There are also limited changes to the presentation of the statement of financial
position and the statement of cash flow. The key presentation and disclosure requirements
established by AASB 18 are:
• the presentation of newly defined subtotals in the statement of profit or loss;
• the disclosure of management-defined performance measures; and
• enhanced requirements for grouping information (i.e. aggregation and disaggregation).
These new requirements will enable investors and other financial statement users to make more
informed decisions, including better allocations of capital, that will contribute to long-term
financial stability. (Effective for annual reporting periods beginning on or after 1 January 2027).
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 are
by geographical locations based on the major lines of services provided to customers. Europe and
North America are reported as the Northern Hemisphere given the same line of services provided
to customers.
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:
services provided by the segment;
the type of customer for the services provided; and
external regulatory requirements
43
CPT Global FY24 Annual Report
Types of Services by Segment
Below outlines the major lines of services provided to customers for each reportable segment:
Australia & APAC
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 Security
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.
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.
44
CPT Global FY24 Annual Report
Segment Performance
Jun-24
Jun-23
Jun-24
Jun-23
Jun-24
Jun-23
Jun-24
Jun-23
Revenue
8,597,734
15,394,405
12,117,021
12,736,853
-
-
20,714,755
28,131,258
Cost of Sales
(6,393,550)
(12,115,641)
(6,160,739)
(5,920,798)
-
-
(12,554,289)
(18,036,439)
Segment Gross Profit Before Tax
2,204,184
3,278,764
5,956,282
6,816,055
-
-
8,160,466
10,094,819
Reconciliation of segment result to group
profit before tax
OPEX
(1,963,276)
(1,846,467)
(3,379,933)
(3,805,940)
(4,564,453)
(4,476,747)
(9,907,662)
(10,129,154)
Profit/(loss) before tax before
unallocated items
240,908
1,432,297
2,576,349
3,010,115
(4,564,453)
(4,476,747)
(1,747,196)
(34,335)
Corporate Costs
Share based payment reversal/(expense)
386,635
(319,148)
Impairment of financial assets
(49,480)
(1,140,991)
337,155
(1,460,139)
Loss before tax
(1,410,041)
(1,494,474)
Australia & APAC
Northern Hemisphere
Corporate
Consolidated
Segment Assets
Jun-24
Jun-23
Jun-24
Jun-23
Jun-24
Jun-23
Jun-24
Jun-23
Reconciliation of segment assets to group
assets
- Cash and cash equivalents
521,934
204,874
1,077,333
1,040,106
-
-
1,599,267
1,244,980
- Trade receivables
1,176,969
1,499,215
1,718,257
2,355,546
-
-
2,895,226
3,854,761
- Deferred tax asset
377,301
579,736
506,080
253,694
-
-
883,381
833,429
- Contract assets
-
-
537,531
1,095,410
-
-
537,531
1,095,410
- Property, plant & equipment
-
-
4,221
9,104
16,257
25,286
20,478
34,390
- Right-of-use-assets
-
-
-
-
199,636
-
199,636
-
- Other tax assets
103,345
21,139
304,212
428,867
-
-
407,557
450,006
- Other assets
12,972
406,952
95,768
134,640
129,435
115,731
238,175
657,323
Total Group Assets
2,192,521
2,711,915
4,243,401
5,317,367
345,327
141,017
6,781,251
8,170,299
Australia & APAC
Northern Hemisphere
Corporate
Consolidated
Segment Liabilities
Jun-24
Jun-23
Jun-24
Jun-23
Jun-24
Jun-23
Jun-24
Jun-23
Reconciliation of segment liabilities to
group liabilities
- Trade and other payables
356,618
1,012,599
1,966,003
1,787,778
1,383,771
802,805
3,706,392
3,603,182
- Provisions
1,078,318
950,675
246,579
131,606
207,357
369,675
1,532,254
1,451,956
- Contract liabilities
229,871
142,649
53,900
54,252
-
-
283,771
196,901
- Lease liabilities
-
-
-
-
208,869
-
208,869
-
Total Group Liabilities
1,664,807
2,105,923
2,266,482
1,973,636
1,799,997
1,172,480
5,731,286
5,252,039
Australia & APAC
Northern Hemisphere
Corporate
Consolidated
45
CPT Global FY24 Annual Report
Major Customers
The Group provides services to a range of clients in the financial services, healthcare, and
government industries. The Group’s top 10 clients account for 83% of the Group’s global revenue
(2023: 82%), totaling $17,182,955 (2023: $23,142,436).
Industry
Segment
% contributed
Banking
Australia
28%
Banking
Northern Hemisphere
26%
Finance
Northern Hemisphere
12%
Insurance
Northern Hemisphere
7%
Federal Government
Australia
5%
Healthcare
Northern Hemisphere
5%
3. Revenue
2024
$
2023
$
Revenue
Services revenue – time & materials
19,634,911
26,558,831
Services revenue – risk & reward
1,079,844
1,572,427
Total Revenue from Contracts with Customers
20,714,755
28,131,258
Other Income
Interest income
10,012
9,577
Total Other Income
10,012
9,577
2024
2023
$
$
Timing of Revenue Recognition
Services revenue - recognised over time
20,714,755
28,131,258
20,714,755
28,131,258
46
CPT Global FY24 Annual Report
4. Profit or Loss for the Year
2024
$
2023
$
Profit or loss for the year also includes the following specific expense items:
Finance Costs:
Interest expense on borrowings
435,308
67,333
Interest on lease liabilities
1,555
-
Total Finance Costs
436,863
67,333
Depreciation and Amortisation:
Depreciation of property plant and equipment
17,698
15,096
Depreciation of right of use assets
7,678
-
Total Depreciation and Amortisation of Right-Of-Use Assets
25,376
15,096
Other Expenses:
Administration expenses
828,399
865,790
Other expenses
628,591
546,468
Total Other Expenses
1,456,990
1,412,258
Finance costs increased mainly due to interest related to Australian tax liabilities, pending the
outcome of an ATO remediation lodgement.
47
CPT Global FY24 Annual Report
5. Income Tax Expense
(a) Income Tax Expense
2024
2023
Tax (benefit)/expense comprises:
$
$
Current tax expense
144,778
370,000
Deferred tax
271,273
(243,586)
(Over)/under provision of previous year
(236,738)
439,961
179,313
566,375
The prima facie tax on loss before income tax is reconciled to the
income tax as follows:
(Loss) before tax
(1,410,041)
(1,494,474)
Prima facie tax benefit on loss before income tax at 25% (2023: 25%)
(352,510)
(373,619)
Tax Effect of
Tax on overseas income at a different rate
3,239
18,000
Other non-allowable items
56,197
50,900
Share-based payment arrangements
(96,659)
79,787
Current year tax losses not brought to account
531,175
140,088
Tax losses utilised that were not previously recognised
-
(212,727)
Impairment of financial assets
12,370
177,961
(Over)/under provision of previous year
(236,738)
439,961
Non-deductible interest expense
262,239
246,024
Income tax expense attributable to the entity
179,313
566,375
The applicable weighted average effective tax rates are as follows:
(13%)
(38%)
48
CPT Global FY24 Annual Report
(b) Deferred Tax Liabilities
2024
2023
LIABILITIES
$
$
NON-CURRENT
Deferred tax liabilities comprise:
Prepayments
12,313
32,194
12,313
32,194
Reconciliation of Deferred Tax Liabilities
Opening balance
-
121,357
Debited to the profit or loss as current tax
12,313
89,163
Closing balance
12,313
32,194
Netted off with deferred tax assets
(12,313)
(32,194)
Net Deferred Tax Liability
-
-
(c) Deferred Tax Assets
2024
2023
ASSETS
$
$
NON-CURRENT
Deferred tax assets comprise:
Foreign currency losses
319,144
125,084
Employee entitlements
333,817
335,286
Accruals
148,014
49,831
Income losses
95,622
355,422
Other
(903)
-
895,694
865,623
49
CPT Global FY24 Annual Report
Reconciliation of Deferred Tax Assets
Opening balance
833,429
1,199,830
Credited/(Debited) to the profit or loss
62,265
(334,401)
Closing balance
895,694
865,623
Deferred tax liabilities netted with deferred tax assets
(12,313)
(32,194)
Net Deferred Tax Assets
883,381
833,429
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. The Group’s tax losses that have not been brought to
account are generally not subject to restrictions. Tax losses arising from Australia for the year
ended 30 June 2024 of $1,417,781 had not been brought into account. The unrecognised deferred
tax assets arising from tax losses not recognised amounts to $928,620 (2023: $501,105) with
$354,445 (2023: nil) attributed to Australia and the remaining balance to the UK.
6. Cash and Cash Equivalents
2024
$
2023
$
Cash at bank
1,599,267
1,244,980
7. Trade and Other Receivables
Notes
2024
$
2023
$
CURRENT
Trade receivables
(a)
2,098,981
2,939,526
Other receivables
246,835
253,170
2,345,816
3,192,696
NON-CURRENT
Employee withholding tax receivables
(b)
549,410
662,065
549,410
662,065
50
CPT Global FY24 Annual Report
a) Trade receivables are non-interest bearing and generally on 30-day terms. The average
credit period on rendering of services is 28 days (2023: 42 days).
b) Employee withholding tax receivables are refunds expected from the Canada Revenue
Agency relating to tax payments made on behalf of employees.
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:
$554,474 (2023: $611,227) was due from a leading banking institution in Australia with an
S&P credit rating of AA-.
$254,915 (2023: $98,228) was due from a US financial market infrastructure company.
$178,306 (2023: $217,760) was due from a major banking institution in Canada.
$284,098 (2023: nil) was due from a leading banking institution in the USA.
$169,867 (2023: $64,597) was due from government agency in Australia
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 $1,168,469
(56%) relates to Australia (2023: $1,478,536 (50%)) and $930,511 (44%) relates to Northern
Hemisphere (2023: $1,475,051 (50%)). 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 due to long-term
relationships established and clients in regulated sectors.
Trade receivables that are past due but not impaired
Included in the trade receivable balance are debtors with a carrying amount of $26,874 (2023:
$165,306) in the Group which are past due at the end of the reporting period but have not been
provided for as the amounts are still considered recoverable. Subsequently, all outstanding debtor
balances have been received post year-end.
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CPT Global FY24 Annual Report
Ageing analysis of trade receivables
The ageing analysis of trade receivables is:
2024
$
2023
$
1-3 months
26,875
165,307
Within initial trade terms
2,072,106
2,788,280
2,098,981
2,953,587
8. Contract Assets
2024
$
2023
$
Contract asset
537,531
1,095,410
The decrease in contract assets during the year was due to the completion of risk and reward
project from FY2023 and reduced activity of fixed price projects.
9. Other Current Assets
2024
$
2023
$
Prepayments
203,200
313,045
Other current assets
34,975
344,278
238,175
657,323
Prepayments consists of insurance policies, licence fees, subscriptions, and other expenses.
52
CPT Global FY24 Annual Report
10. Property, Plant, & Equipment
2024
$
2023
$
Fixtures, Fittings and Equipment
At cost
20,718
20,839
Accumulated depreciation
(20,718)
(20,839)
-
59
Computer Equipment
At cost
188,591
185,130
Accumulated depreciation
(168,113)
(150,799)
20,478
34,331
Total Property, Plant, and Equipment
20,478
34,390
a) Movements in Carrying Amounts
Computer
Equipment
$
Fixtures, Fittings
and Equipment
$
Total
$
Balance at 1 July 2022
13,852
105
13,957
Additions
35,529
-
35,529
Depreciation expense
(15,050)
(46)
(15,096)
Balance at 30 June 2023
34,331
59
34,390
Balance at 1 July 2023
34,331
59
34,390
Additions
3,771
-
3,771
Depreciation expense
(17,639)
(59)
(17,698)
Effects of foreign exchange movements
15
-
15
Balance at 30 June 2024
20,478
-
20,478
53
CPT Global FY24 Annual Report
11. Right-of-Use Asset
i) AASB 16 related amounts recognised in the balance sheet
2024
$
2023
$
NON-CURRENT
Right-of-use-assets
207,314
-
Accumulated amortisation
(7,678)
-
199,636
-
Movement in carrying amounts:
Opening net carrying amount
-
-
Addition to right-of-use asset
207,314
-
Amortisation expense
(7,678)
-
Net carrying amount
199,636
-
ii) AASB 16 related amounts recognised in the statement of profit or loss
2024
$
2023
$
Depreciation charge related to right-of-use assets
7,678
-
Interest expense on lease liabilities
1,555
-
Short-term leases expense
129,885
151,199
The Group had entered into a new two-year lease agreement in June 2024 in relation to its office
space. Previously, the Group had elected to apply the short-term lease exemption available under
AASB 16 Leases given that the previous lease agreement was for a term of one year.
12. Trade and Other Payables
2024
$
2023
$
CURRENT
Trade and other payables
2,882,502
3,023,158
Sundry creditors and accruals
1,042,906
580,024
3,925,408
3,603,182
54
CPT Global FY24 Annual Report
13. Contract liabilities
2024
$
2023
$
CURRENT
Contract liabilities
283,771
196,901
Revenue recognised during the financial year in relation to contract liabilities carried forward
amounted to $153,629. Contract liabilities are recorded as a current liability as the underlying
performance obligations are expected to be completed within 12 months.
14. Lease Liabilities
2024
$
2023
$
CURRENT
Lease liabilities
78,837
-
NON-CURRENT
Lease liabilities
130,032
-
Total Lease Liabilities
208,869
-
15. Borrowings
2024
$
2023
$
Unutilised financing facilities
Maximum credit facility available
5,000,000
5,000,000
Credit facility available (secured)
274,700
826,059
Amount utilised
-
-
The parent entity has a debtor’s financing credit facility in place with ScotPac. The maximum credit
facility available is $5,000,000 being secure against the value of the Australian debtor book. At 30
June 2024, the available credit facility was $274,700. It is a rolling facility which can be terminated
with the following notice; 3 month notice (CPT) & 1 month (provider).
55
CPT Global FY24 Annual Report
16. Provisions
2024
$
2023
$
CURRENT
Employee benefits – Long Service Leave
543,393
706,764
Employee benefits – Annual Leave
729,467
606,408
Total current provisions
1,272,860
1,313,172
NON-CURRENT
Employee benefits – Long Service Leave
40,378
26,784
Long Term Incentive provision
-
112,000
Total non-current provisions
40,378
138,784
Total Provisions
1,313,238
1,451,956
Analysis of Total Provisions
Long Service
Leave
Annual Leave
Total
$
$
$
Opening balance at 1 July 2023
733,548
606,408
1,339,956
Provided for during the full year
15,203
525,098
540,301
Taken during the year
(164,980)
(402,039)
(567,019)
Balance at 30 June 2024
583,771
729,467
1,313,238
17. Issued Capital
(a) Issued and paid-up capital
2024
$
2023
$
41,897,365 (2023: 41,897,365)
13,918,575
13,918,575
Fully paid ordinary shares
13,918,575
13,918,575
56
CPT Global FY24 Annual Report
(b) Movements in shares on issue
2024
2023
Number of
shares
$
Number of
shares
$
Beginning of the financial year
41,897,365
13,918,575
41,607,143
13,818,226
Dividend reinvestment plan - 11 November 2022
-
-
172,030
62,894
Dividend reinvestment plan - 13 April 2023
-
-
118,192
37,455
End of the financial year
41,897,365
13,918,575
41,897,365
13,918,575
(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 2024 no ordinary shares were bought back under the
on-market buyback (2023: nil). Ordinary shares have no par value.
(c) 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%.
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CPT Global FY24 Annual Report
The gearing ratios for the year ended 30 June 2024 and 30 June 2023 are as follows:
2024
$
2023
$
Borrowings
-
-
Lease liabilities
208,869
-
Less cash and cash equivalents
(1,599,267)
(1,244,980)
Net Debt
(1,390,398)
(1,244,980))
Total Equity
1,404,410
2,918,260
Total Capital employed
1,404,410
2,918,260
Gearing ratio
0%
0%
A bank guarantee facility provided by the Company’s banker is cash backed in the amount of
$123,804. 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 August 2026.
18. 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.
19. Share-Based Payments
(a)
Share-based payment movement
The following amounts are recorded in the profit & loss at reporting date:
Reversal / (Expense)
Grant
2024
$
2023
$
LTI’22
337,240
(207,148)
LTI’23 (provision)
112,000
(112,000)
LTI’23 & LTI’24
(62,605)
-
386,635
(319,148)
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CPT Global FY24 Annual Report
Following the LTI’23 grant of 1,000,000 performance rights to the CEO at an exercise price of nil
per share at the Company's Annual General Meeting on 22 November 2023, the $112,000 long
term incentive provision recognised in the year ended 30 June 2023 was released.
On 15 December 2023, the Board of Directors resolved to approve 685,780 performance rights to
the CFO and 205,734 to other employees, with an exercise price of nil per share.
An amount of $62,605 pertaining to these entitlements has been included in the profit or loss for
the period.
(b)
Share-based payment arrangements
The following share-based payment arrangements existed at 30 June 2024:
Performance
Rights (PR)
Grant
Grant
Date
Expiry Date /
Measurement
Period End
Exercise
Price ($)
As at 1
July
2023
Granted
Forfeited/Exercised
/
Transferred/Expired
As at 30
June 2024
CEO - Luke
Tuddenham
LTI’22
29/11/21
28/11/24
0.00
1,000,000
-
(1,000,000)
-
CEO - Luke
Tuddenham
LTI’23
22/11/23
30/06/25
0.00
-
1,000,000
-
1,000,000
CEO - Luke
Tuddenham
LTI’24
22/11/23
30/06/26
0.00
-
1,000,000
-
1,000,000
CFO –
Nathan
Marburg
LTI’24
15/12/23
30/06/38
0.00
-
685,780
-
685,780
Other
Employees
LTI’24
15/12/23
30/06/38
0.00
-
205,734
-
205,734
1,000,000
2,891,514
(1,000,000)
2,891,514
The service and performance conditions are outlined below for the respective grants.
(c) Service and performance conditions
LTI’22:
The performance rights hold no voting or dividend rights, are not transferrable and will lapse in
the event of the resignation of the director. The exercise of the performance rights is contingent
upon certain conditions being met. At the time of this report, the performance hurdles were not
met, resulting in a reversal of $337,240 from the share-based payment reserve which has been
reflected in the profit or loss for the period. The details of the targets, number of
rights and conditions for LTI’22 is in the Company’s 2023 annual report.
LTI’23 & LTI’24:
At the 2023 AGM, two tranches of performance rights were approved to be granted to the CEO.
The details of the grants are in the 2023 Notice of Annual General Meeting dated 20 October
2023. The performance conditions and hurdles also apply to executive grants.
59
CPT Global FY24 Annual Report
20. Earnings per Share
(a) The following reflects the income and share data used
in the calculations of basic and diluted earnings per share:
2024
$
2023
$
Net (loss)/profit & earnings used in calculating basic and
diluted earnings per share
(1,589,354)
(2,060,849)
Number of shares
Number of
shares
Weighted average number of ordinary shares used in
calculating basic earnings per share
41,897,365
41,897,365
Weighted average number of options outstanding
799,735
1,000,000
Effect of antidilution
(799,735)
(1,000,000)
Adjusted weighted average number of ordinary shares used
in calculating diluted earnings per share
41,897,365
41,897,365
21. Dividends Paid or Provided for on Ordinary Shares
2024
$
2023
$
(a) Dividends paid during the half year
Prior year final
Franked dividends (2023: 1.00c per share)
-
416,071
Current year interim
Franked dividends (0.00c per share) (2023: 0.60c per share)
-
250,675
-
666,746
(b) Dividends proposed and not recognised as a liability
Fully franked Final dividend of 0.0 cents per share (2023: 0.00c per share)
-
-
(c) Franking credit balance
Balance of franking account at year end adjusted for payment of the current
tax liability
2,587,095
2,407,958
60
CPT Global FY24 Annual Report
22. Cash Flow Information
2024
$
2023
$
(a) Reconciliation of the profit after tax to the net cash flows from
operations
Net (loss)
(1,589,354)
(2,060,849)
Non-Cash Items
Depreciation and amortisation of non-current assets
25,376
15,096
Interest expense on leases
1,555
-
Impairment of financial assets
49,480
1,140,991
Share-based (reversal)/payments
(386,635)
319,148
Changes in Assets and Liabilities
Decrease in trade and other receivables
910,055
2,385,184
Decrease/(Increase) in prepayments
419,148
(18,598)
Decrease in contract assets
557,879
222,145
(Increase) in deferred tax assets
(7,503)
(83,435)
Increase/(decrease) in trade payables and accruals
322,225
(4,099,870)
Increase in contract liabilities
86,870
196,901
(Decrease) in income taxes payable
-
(51,838)
(Decrease) in deferred tax liabilities
-
(121,000)
(Decrease) in employee entitlements
(26,718)
(105,044)
Net cash flow from/(used in) operating activities
362,378
(2,261,169)
61
CPT Global FY24 Annual Report
23. 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.
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
Financial assets subject to interest rate risk is cash and cash equivalents. 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, 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
$17,531 and decrease by $17,531 (2023: increase by $21,725 and decrease by $21,725).
(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:
62
CPT Global FY24 Annual Report
Liabilities
Assets
2024
2023
2024
2023
$
$
$
$
US dollars
(130,890)
(151,973)
188,774
193,404
Euro
-
-
88,174
15,069
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 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
2024
2023
2024
2023
2024
2023
2024
2023
$
$
$
$
$
$
$
$
Profit or loss
(49,368)
6,672
31,234
14,844
35,052
10,855
22,282
139,652
Other equity
(67,625)
(68,414)
(235,168)
(204,618)
(34,340)
(129,081)
(203,478)
(173,354)
The above impacts are mainly attributable to the exposure of intercompany payables, receivables,
and loan balances at the end of the reporting period.
63
CPT Global FY24 Annual Report
(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 15 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
2024
2023
2024
2023
2024
2023
2024
2023
Payables
(2,882,502)
(3,023,158)
-
- (2,882,502)
(3,023,158) (2,882,502)
(3,023,158)
Lease liabilities
(94,445)
-
(136,474)
-
(230,919)
-
(208,869)
-
Total
(2,976,947)
(3,023,158)
(136,474)
- (3,113,421)
(3,023,158) (3,091,371)
(3,023,158)
(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.
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CPT Global FY24 Annual Report
(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.
24. Interests in Subsidiaries
Name
Country of
incorporation
Percentage of equity & voting interest held
by the economic entity
2024
2023
CPT Global Australia Pty Ltd
Australia
100
100
CPT Global International Pty Ltd
Australia
100
100
CPT Global Software Pty Ltd
Australia
100
100
CPT Global Inc
USA
100
100
CPT Global Consulting Corp
Canada
100
100
CPT Consultoria Global Em Informatica Ltda
Brazil
100
100
CPT Global Ltd
United Kingdom
100
100
CPT Global GmbH
Germany
100
100
CPT Global France
France
100
100
CPT Global SRL
Italy
100
100
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.
65
CPT Global FY24 Annual Report
25. 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.
2024
2023
STATEMENT OF FINANCIAL POSITION
$
$
ASSETS
Current assets
656,446
369,658
Non-current assets
701,620
649,481
Total Assets
1,358,066
1,019,139
LIABILITIES
Current liabilities
18,349,931
14,623,868
Non-current liabilities
319,413
245,800
Total Liabilities
18,669,344
14,869,668
EQUITY
Issued capital
13,918,508
13,918,508
Reserves
1,663,570
1,938,205
Accumulated losses
(32,893,356)
(29,707,242)
Total Deficit
(17,311,278)
(13,850,529)
STATEMENT OF COMPREHENSIVE LOSS
Total loss
(3,186,114)
(3,272,508)
Total comprehensive loss
(3,186,114)
(3,272,508)
Guarantees
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 29 for details of bank guarantees in relation
to leased offices.
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CPT Global FY24 Annual Report
26. 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
Steve Targett
Non-Executive Director (Chair)
Luke Tuddenham
Chief Executive Officer
Gerry Tuddenham
Executive Director
Deborah Hadwen
Non-Executive Director (appointed 1 July 2023)
Nathan Marburg
Chief Financial Officer
Fred S Grimwade
Non-executive Chairman (resigned 22 November 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 2024.
The totals of remuneration paid to key management personnel of the Company and the Group
during the year are as follows:
2024
$
2023
$
Short-term employee benefits
1,648,076
1,699,858
Post-employment benefits
104,255
65,769
Other long-term benefits
(112,000)
112,000
Share-based payments
(278,152)
207,148
1,362,179
2,084,775
67
CPT Global FY24 Annual Report
27. Related Party Disclosures
(a) Controlling Relationships
Interests in subsidiaries are set out in Note 24. 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 26. 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.
28. Auditors’ Remuneration
2024
2023
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
194,000
186,776
Other services in relation to the Company and any other entity in the Group
- tax compliance
65,883
74,181
- other services
3,400
3,500
263,283
264,457
29. Contingent Liabilities
Guarantees
The Group has provided a guarantee of $123,804 (2023: nil) 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 and
ends 31 August 2026.
30. 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.
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CPT Global FY24 Annual Report
Consolidated Entity
Disclosure Statement
Outlined below is the Group’s consolidated entity disclosure statement as at 30 June 2024 prepared in
accordance with the Corporations Act 2001. No entities are trustees, partners or participants in joint
ventures.
Consolidated entity disclosure statement as at 30 June 2024
Key assumptions and judgements
Determination of Tax Residency
Section 295(3A) of the Corporations Act 2001 requires that the tax residency of each entity which is
included in the consolidated entity disclosure statement be disclosed.
The determination of tax residency involves judgement. In determining tax residency, the consolidated
entity has applied current Australian and foreign legislation and any judicial precedent relevant to the
interpretation of that legislation.
In the context of an entity which was an Australian resident, “Australian resident” has the meaning
provided in the Income Tax Assessment Act 1997. The consolidated entity has also had regard to the
Commissioner of Taxation’s public guidance.
Entity Name
Entity Type
Country of
incorporation
% of share
capital held
Australian or
foreign
Foreign
Jurisdiction
CPT Global Global Limited*
Body Corporate
Australia
N/A
Australian
N/A
CPT Global Australia Pty Ltd*
Body Corporate
Australia
100
Australian
N/A
CPT Global International Pty Ltd*
Body Corporate
Australia
100
Australian
N/A
CPT Global Software Pty Ltd*
Body Corporate
Australia
100
Australian
N/A
CPT Global Inc
Body Corporate
USA
100
Foreign
USA
CPT Global Consulting Corp
Body Corporate
Canada
100
Foreign
Canada
CPT Consultoria Global Em Informatica Ltda
Body Corporate
Brazil
100
Foreign
Brazil
CPT Global Ltd
Body Corporate
United Kingdom
100
Foreign
United Kingdom
CPT Global GmbH
Body Corporate
Germany
100
Foreign
Germany
CPT Global France
Body Corporate
France
100
Foreign
France
CPT Global SRL
Body Corporate
Italy
100
Foreign
Italy
*This entity is part of a tax-consolidated group under Australian taxation law, for which CPT Global Limited is the head entity.
Tax residency
Body Corporates
69
CPT Global FY24 Annual Report
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);
b. give a true and fair view of the financial position as at 30 June 2024 and of the
performance for the year ended on that date of the Group;
c. the information disclosed in the attached consolidated entity disclosure statement
is true and correct.
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
Standards;
c. the financial statements and notes for the financial year give a true and fair view;
d. the information disclosed in the attached consolidated entity disclosure statement
is true and correct.
3. 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.
This declaration is made in accordance with a resolution of the Board of Directors.
Deborah Hadwen
Non-Executive Director, Chair Audit and Risk Committee
26 September 2024
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
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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 2024, the consolidated statement of profit
or loss and other comprehensive income, the consolidated statement of changes in equity, the consolidated
statement of cash flows for the year then ended, notes to the financial statements, including material accounting
policy information, the consolidated entity disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
a. giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial performance
for the year then ended, and
b. complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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1. Revenue recognition and contract assets
Key audit matter
How our audit addressed the key audit matter
Refer to note 1(c) Contract Assets, note 1(o)
Revenue and Other Income, note 3 Revenue, and
note 8 Contract Assets
The Group earned revenue of $20,714,755 during
the year and recognised contract assets of
$537,531 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:
•
millions of instructions per second (MIPs)
or million service units (MSUs) saved for
variable contracts, 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.
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
•
Assessing whether new contracts for both revenue
streams that are executed during the year have
been accounted for in accordance with AASB 15
Revenue from Contracts with Customers
•
Performing trend analysis and substantive audit data
analytics on both revenue streams to test the
amounts recorded during the year
•
Ensuring estimated savings of MIPs or MSUs
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, and
•
Assessing the adequacy of revenue related
disclosures in the financial report.
2. Recognition of income tax related balances
Key audit matter
How our audit addressed the key audit matter
Refer to note 1(b) Income Tax, note 1(q)(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 has recognised $883,381 deferred tax
assets on the statement of financial position, the
recognition of which involves judgement by
management as to the likelihood of the realisation
of these deferred tax assets, which is based on a
number of factors including whether there will be
sufficient taxable profits in future periods to support
recognition.
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/(benefit) to prima
facie expense/(benefit) for the year
•
Evaluating management’s assessment as to
whether there will be sufficient taxable profits in
future periods to support the recognition of deferred
tax assets
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The Group’s tax balances and resulting
expense/(benefit) have significant complexity and
as a result they are a key audit matter.
•
Reviewing operational budgets and forecasts and
evaluating the assumptions used in those forecasts,
and
•
Considering the adequacy of the disclosures in
relation to tax related balances and the recognition
of deferred tax assets.
3. Share-based payments
Key audit matter
How our audit addressed the key audit matter
Refer to note 1(k)(iii) Share-based Payments and
note 19 Share-based Payments
The Group recognised share-based payment
expenses of $62,605 in relation to 2,891,514
performance rights issued during the year to the
CEO, specified executives and other employees at
an exercise price of nil.
In addition, $337,240 was reversed from the
employee compensation reserve in relation to
1,000,000 performance rights issued to the CEO
previously as it was unlikely that the performance
hurdles would be met.
Each of these arrangements required significant
judgments and estimations by management, and as
a result they are a key audit matter.
Our procedures included:
•
Obtaining and reviewing the valuation calculations
and position paper on the share-based payment
plan prepared by the corporate finance specialist
engaged by management.
•
Determining the grant dates, evaluating what were
the most appropriate dates based on the terms and
conditions of the share-based payment
arrangements
•
Evaluating the progress of the vesting conditions of
share-based payments with performance milestones
•
Evaluating the directors’ assessment of the likely
success or failure of achieving the performance
milestones
•
Evaluating the expensing of each share-based
payment tranche granted to the arrangement’s
beneficiaries
•
Testing the journal entries recorded to determine
whether the share-based payment expense had
been correctly recorded in the profit or loss and
employee compensation reserve, and
•
Ensuring that the details of the share-based
payments have been sufficiently disclosed in the
financial report.
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 2024, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
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Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view
in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b) the consolidated entity disclosure statement for being true and correct in accordance with the
requirements of the Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i.
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view
and is free from material misstatement, whether due to fraud or error; and
ii.
the consolidated entity disclosure statement as true and correct and is free of misstatement, whether due
to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or 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
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.
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• 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 25 of the directors’ report for the year ended 30
June 2024.
In our opinion, the Remuneration Report of the Group for the year ended 30 June 2024 complies with section 300A
of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
SW Audit
Chartered Accountants
R Blayney Morgan
Partner
Melbourne, 26 September 2024
75
CPT Global FY24 Annual Report
Corporate Information
ACN 083 090 895
ABN 16 083 090 895
Directors
Auditors
Steve Targett, Non-Executive Chairman
SW Audit
Luke Tuddenham, Managing Director & CEO
Level 10, 530 Collins Street
Gerry Tuddenham, Executive Director
Melbourne VIC 3000
Deborah Hadwen, Non-Executive Director
Company Secretary
Share Register
Nathan Marburg, CFO
Boardroom Pty Ltd
Level 12, 225 George Street
Principal Registered Office
Sydney NSW 2000
Principal Registered Office
Telephone: 1300 737 760
Level 3, 818 Bourke Street
Facsimile: +61 (0)2 9290 9600
Docklands VIC 3008
Telephone: +61 (0)3 9684 7900
Solicitors
Internet: www.CPTglobal.com
Nicholson Ryan Lawyers
Bankers
CPT Global on the Web
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
76
CPT Global FY24 Annual Report
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 25th of September 2024.
(a) Distribution of equity securities
The number of shareholders, by size of holding, in each class of share are:
Ordinary shares
Holders
Total Units
%
1
-
1,000
81
40,217
0.1%
1,001
-
5,000
302
824,165
2.0%
5,001
-
10,000
147
1,150,010
2.7%
10,001
-
100,000
236
7,676,599
18.3%
100,001
-
and over
49
32,206,374
76.9%
TOTAL
815
41,897,365
100.0%
(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
1
TUDDY SUPER PTY LTD
7,575,399
18.1%
2
GNP NOMINEES PTY LTD
2,709,046
6.5%
3
HSBC CUSTODY NOMINEES
2,664,993
6.4%
4
CLAPSY PTY LTD
2,444,174
5.8%
5
TUDDY SUPER PTY LTD
1,663,417
4.0%
6
TUDDY SUPER PTY LTD
1,591,248
3.8%
7
TUDDCORP PTY LTD
1,184,409
2.8%
8
MR PHILIP ADAM &
1,016,255
2.4%
9
MR DAVID KEITH COLLINS &
893,212
2.1%
10
TEN TALENTS (2020) LIMITED
805,667
1.9%
11
MR PAWEL REJ &
758,641
1.8%
12
B&E TUDDENHAM PTY LTD
598,265
1.4%
77
CPT Global FY24 Annual Report
Number of shares
Percentage of
ordinary
shares
13
MR NEVILLE WINSTON
501,000
1.2%
14
MUTUAL TRUST PTY LTD
500,000
1.2%
15
BNP PARIBAS NOMINEES PTY LTD
450,176
1.1%
16
MR MICHAEL LAZORIK
400,000
1.0%
17
MR BARRY RAYMOND DUNSTAN
389,000
0.9%
18
MIDDLE VALE PTY LTD
372,603
0.9%
19
BNP PARIBAS NOMS
365,686
0.9%
20
MRS ALISON BOLGER
362,550
0.9%
Total SecuriƟes of Top 20 Holdings
27,245,741
65.0%
(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:
Number of Shares
MR GERRY TUDDENHAM AND HIS ASSOCIATES (EXCLUDING HIS
BENEFICIAL INTEREST IN THE CPT TRUST)
13,587,279
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
2,664,993
CLAPSY PTY LTD
2,444,174
(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.