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2024
Annual Report
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2024
Annual Report
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ANNUAL REPORT 2024
Contents
Company overview………………………………………………………………………………………………………….
3
Board of Directors………………………………………………………………………………………………….
5
Chairperson’s message…………………………………………………………………………………………
6
CEO’s message……………………………………………………………………………….......................
8
Senior Management………………………………………………………………………………………………
Vision, mission & values………………………………………………………………………………………..
9
10
Directors’ report………………………………………………………………………………………………………………
11
Audited Remuneration Report……………………………………………………………………………..
20
Financial Statements……………………………………………………………………………………………………..
28
Consolidated Statement of Profit or Loss and Other Comprehensive Income
29
Consolidated Statement of Financial Position…………………………………………………..
30
Consolidated Statement of Changes in Equity………………………………………………….
31
Consolidated Statement of Cash Flows……………………………………………………………..
32
Notes to the Financial Statements……………………………………………………………………………….
33
Consolidated Entity Disclosure Statement………………………………………………………………….
64
Directors’ Declaration…………………………………………………………………………………………………….
66
Auditor’s Report………………………………………………………………………………………………………………
68
Auditor’s Declaration of independence……………………………………………………………….
74
Corporate Directory…………………………………………………………………………………………………………
76
Additional ASX information……………………………………………………………………………………………
77
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ANNUAL REPORT 2024
Company Overview
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Systems
technology for
the modern
transport industry
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ANNUAL REPORT 2024
Company Overview
DTI supports the transit industry through the engineering, delivery,
and support of world-leading telematics, CCTV, video analytics, and
passenger information solutions.
Our customers include transit agencies, vehicle operators and owners, vehicle manufacturers, and
law enforcement agencies. Our product range includes vehicle-based servers, recording equipment,
passenger counting equipment, driver and passenger information displays, fleet management
systems – all integrated with best-in-class vehicle and back-office software. DTI provides extensive
installation, maintenance, monitoring, and managed services.
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The transit technology people
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ANNUAL REPORT 2024
Board of Directors
GREG PURDY
Non-Executive Chairperson
Mr. Purdy is an experienced corporate executive in the technology and communications
sectors and has led major technology projects throughout his career. Mr. Purdy is a former
senior executive with NTT Data, Hewlett Packard, Telstra, and the Tenix Group.
STEVE GALLAGHER
Non-Executive Director
Mr. Gallagher has experience in industrial automation, building technology, power systems and
payment solutions and has held senior executive positions with a range of engineering
technology companies including Vix Technology, ERG Ltd and Siemens AG. More recently
Steve has been a director of several listed and public companies including Hong Kong listed
CCRTT, Optal Ltd, Vix Technology Ltd, KubaPay, Littlepay, Orbital UAV and Snapper Services.
ANDREW LEWIS
Non-Executive Director
Mr. Lewis was appointed to the Board on 16 October 2018. Mr. Lewis holds a Bachelor of
Economics from Monash University and has a background in real estate, hospitality and project
management and currently holds a senior management position with Morris Group, a privately
held business operating across the tourism, hospitality, renewable energy, finance, technology,
and aviation sectors.
CHRIS AFENTOULIS
Non-Executive Director
Mr. Afentoulis was appointed to the Board on 19 November 2019. Mr. Afentoulis is a qualified
chartered accountant and a graduate of the Australian Institute of Company Directors. With
more than 17 years’ experience in professional services and senior executive positions
including finance, management, and corporate strategy with multiple IT service and technology
companies.
PAUL GILLESPIE
Non-Executive Director
Mr. Gillespie joined the Board in November 2022 and has over 20 years of experience in the
Smart Parking and Transportation marketplace where he has held several leadership positions.
Mr. Gillespie is currently the Managing Director and CEO of ASX listed, Smart Parking,
(ASX:SPZ), a position he has held since January 2013. Before joining Smart Parking, Paul was
a leading figure in the UK parking industry, having held senior positions at Xerox Parking
Services where he was successful in leading two business units providing hardware and
software solutions to a variety of public and private organisations.
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ANNUAL REPORT 2024
Chairperson’s Message
Dear Shareholders
Financial performance & outlook
While DTI faced a period of declining revenue in the past financial year, primarily due to market fluctuations
and project delays, we have strategically invested in an exciting new range of products, including the MDR-7
and Senti-ai solutions. These innovations have already attracted strong interest from new and existing
markets, and we are confident that these investments will lead to revenue growth in the coming year. The early
traction we’ve seen in key sectors positions us well for a strong recovery and sustainable growth.
Expanding into New Markets with the Senti-ai Solution
In Q2 2024, DTI ventured into the waste recovery sector with our Senti-ai telematics and CCTV system,
designed to improve safety and productivity for truck operators. Senti-ai delivers high-quality footage, real-
time vehicle data, and fleet management insights through DTI’s cloud platform. The system demonstrates our
ability to provide customer-focused solutions that bring measurable operational benefits. As we expand into
new markets, we remain committed to understanding the unique needs of each sector and offering solutions
that align with our customers’ goals.
Global Rail Expansion and Local Successes
Globally, we continue to explore opportunities in the rail sector, submitting proposals for projects in Germany,
the U.S.A., India, and Malaysia. Our expertise in delivering state-of-the-art passenger information and
surveillance systems has enabled us to secure important projects, including the Sydney City and Southwest
line. Our solutions ensure passengers receive up-to-date journey information while enhancing safety, reflecting
our commitment to customer-centric innovation.
Supporting Customer Safety with Transport for NSW Procurement Panel 4
In Q3 2024, our digital CCTV solution was adopted by bus manufacturers included in Transport for NSW’s Bus
Procurement Panel 4. This inclusion allows operators to specify DTI systems in new bus purchases via the
government procurement portal, opening significant opportunities in the NSW market. Our success here is a
testament to the reliability and effectiveness of our solutions, and the trust that customers place in our
expertise to improve both safety and operational efficiency.
Empowering Customers with Real-Time Solutions
In Q4, DTI demonstrated the capabilities of its LiveView system to several bus operators, providing real-time
access to on-vehicle footage. Positive feedback led to several trials, reinforcing our commitment to enabling
customers to respond faster and more effectively to incidents. Our technology continues to deliver value
across multiple markets by supporting safer and more informed decision-making.
Securing Strategic Contracts for Future Growth
In September 2024, DTI was awarded a contract by Adelaide Metro Operations Pty Ltd for a Public Address,
Closed Circuit Television, and Information System (PACIS) upgrade on the Citadis and Flexity trams in
Adelaide. Valued at AUD$4 million, this contract highlights the strong relationships we have built with our
clients and our ability to deliver complex, high-quality solutions. The project is scheduled for completion by
February 2027.
Revenue
FY24’s revenue was lower than expectations in each of the rail, bus, and integrator segments. Rail sector
declines were due to prior-year completion of projects in South Africa and Australia and delays in replacement
volume. The recently awarded Adelaide Metro Operations contract increases volumes significantly in FY25
and FY26, and DTI continues to actively pursue worldwide opportunities.
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ANNUAL REPORT 2024
FY24 Bus-sector volumes contracted but the appointment to the NSW’s Government Panel 4 provides
opportunities to increase its market share over time. Additionally, the development of the MySafeRide product
suite specifically for school buses, is set to boost bus-related revenue.
International integrator sales in the U.K. and mainland Europe also faced challenges in FY24. Despite launching
several key new products and overcoming past supply chain constraints, the expected sales growth through
the international market has been slow to recover post the pandemic. However, over the past 2 months there
are strong indications of the market recovery with a steady flow of enquiries coming through the international
partners. Improvement has already been delivered during FY25 with received orders from one of the key
integration partners exceeding total prior year sales.
Market penetration into a new market sector – on-road vehicles, was successful. DTI developed a new product
suite which is creating value for the customers in the resource recovery segment and delivered more than
AUD$0.5 million in new revenue. Senti-ai, is expected to become an important and growing source of new
revenue in the future.
Our People: The Core of Our Success
While our innovative products receive much of the attention, it’s the people behind them who drive DTI’s
success. Our skilled and dedicated workforce is central to our mission of delivering superior customer
solutions. We believe in continuous improvement, teamwork, and excellence, values that are deeply embedded
in our culture. As we continue to grow and expand our offerings, we remain committed to investing in the
development of our employees, ensuring that they are empowered to deliver the best results for our
customers.
Summary
In conclusion, DTI is well-positioned to continue delivering innovative, customer-focused solutions across the
transit sector. Our success is built on the strength of our people, the trust of our customers, and our
commitment to advancing safety, operational efficiency, and passenger experience.
I also thank our shareholders for your continued support and trust in our vision. We are optimistic that our
recent product launches and growing market interest will drive revenue growth in the next financial year.
Greg Purdy
Non-Executive Chairperson
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ANNUAL REPORT 2024
CEO’s Message
In FY24, while revenue growth faced constraints, several key achievements were made that position us well
for future success in our core market segments.
One of the most exciting milestones for the year was the completion of development for MDR-7, our most
versatile on-vehicle data server to date. MDR-7 serves all addressable markets and represents a breakthrough
in real-time data capture and analytics for transport systems. This innovation highlights DTI's continued
leadership in delivering cutting-edge solutions that meet the evolving needs of global transport infrastructure.
DTI also reached a major project delivery this year with the successful completion of all equipment deliveries
to Alstom for the next Sydney Metro project, which went into revenue service in September 2024. The project's
successful transition into operational service reflects our ability to deliver complex projects on time and to
specification, further enhancing our reputation as a trusted partner in the rail sector.
DTI’s expansion into new markets continues to yield promising results. FY24 marked the deployment of a real-
time CCTV and telematics solution (Senti-ai) onto the customer’s new recycling truck fleet in Victoria and
Queensland — a first for DTI in this sector. The successful integration of our technology into this
environmentally focused fleet highlights the versatility of our solutions and our ability to adapt to new
industries, further expanding our footprint.
International collaboration remains a key strategic focus. In line with this, we have entered a Memorandum of
Understanding (MOU) with River Engineering to explore the transfer of technology that will enable River to
manufacture and install DTI’s range of rail products in the Indian market. This MOU represents an exciting
opportunity to leverage our technology on a global scale, bringing our innovations to one of the world’s most
significant and rapidly growing rail markets.
DTI are also making strides in new areas of transport safety technology. We recently received a Letter of Intent
(LOI) from a major high-speed train manufacturer for the development of a high-speed train crash recording
system for a US-based project. This opportunity aligns with our strategy of enhancing safety and performance
in high-speed rail networks. DTI are progressing a master framework agreement with the manufacturer, which
we believe will further solidify our position in this high-demand sector.
Finally, in a significant win for the first quarter of FY25, DTI secured a contract to retrofit CCTV and passenger
information systems on Adelaide’s tram fleet. This project not only underscores our capability in fleet
upgrades but also highlights our expertise in extending the operational life of transport assets through
advanced technology solutions. This success further demonstrates our technical pedigree and ability to
deliver impactful upgrades for aging fleets.
As we look ahead, I remain confident in DTI’s ability to continue growing across our established markets while
expanding into new sectors and geographies. We are well-positioned to capitalise on the opportunities before
us, driving innovation and delivering long-term value for our stakeholders.
I want to take this opportunity to thank our clients, business partners, management and staff for their loyalty
and hard work during FY24. Through the valuable contributions of all these stakeholders, the company is
primed to further penetrate its ever-expanding addressable market and grow revenues over FY25 and beyond.
Matthew Strack
Chief Executive Officer
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ANNUAL REPORT 2024
Senior Management
Matthew Strack
Chief Executive Officer
David Hood
Chief Financial Officer
Avinash Khoosal
Chief Supply Chain Officer
Chris Bailye
Head of Hardware Engineering
Richard Orchard
Head of Software Engineering
Justin Dyer
Head of Operations
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The technology company
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solutions built to work
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ANNUAL REPORT 2024
Vision.
Mission.
Values.
Safety is our #1 priority
Doing better every day
Success through collaboration
Taking personal responsibility
Delivering outcomes that provide value
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ANNUAL REPORT 2024
Directors’ Report
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Directors’ Report
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ANNUAL REPORT 2024
Directors’ Report
The Directors present their report and consolidated financial statements of the Group comprising of DTI
Group Limited (“DTI” or “the Company”) and its subsidiaries for the financial year ended 30 June 2024.
Directors
The Directors of the Company at any time during or since the end of the financial year are:
Mr. Greg Purdy
Qualifications & Experience:
Independent Non-Executive Chairperson
Greg Purdy was appointed to the Board on 16 October 2018 and the role
of Non-Executive Chairperson of DTI on 20 November 2018. Mr. Purdy is a
member of the Australian Institute of Company Directors.
Mr. Purdy has extensive experience in technology and communications
companies and the execution of major technology projects. Mr. Purdy is a
former senior executive with NTT Data, Hewlett Packard, Telstra, and the
Tenix Group.
Other Directorships:
Nil
Mr. Steve Gallagher
Qualifications & Experience:
Independent Non-Executive Director
Steve Gallagher was appointed to the Board on 16 October 2018 and is a
member of the Australian Institute of Company Directors and holds a
Bachelor of Engineering (Honours) from the University of Melbourne and
Bachelor of Commerce from Monash University.
Mr. Gallagher has experience in industrial automation, building technology,
power systems and payment solutions and has held senior executive
positions with a range of engineering technology companies including Vix
Technology, ERG Ltd and Siemens AG. More recently Mr. Gallagher has
been a director of several listed and public companies including Hong
Kong listed CCRTT, Optal Ltd, Vix Technology Ltd, KubaPay, Littlepay,
Orbital UAV and Snapper Services.
Other Directorships:
Non-Executive Director with Optal Ltd. and Orbital Corporation Ltd.
Mr. Andrew Lewis
Qualifications & Experience:
Independent Non-Executive Director
Andrew Lewis was appointed to the Board on 16 October 2018. Mr. Lewis
holds a Bachelor of Economics from Monash University and has
experience in real estate, hospitality and project management and
currently holds a senior management position with Morris Group, a
privately held business operating across the tourism, hospitality,
renewable energy, finance, technology, and aviation sectors.
Other Directorships:
Nil
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ANNUAL REPORT 2024
Mr. Chris Afentoulis
Qualifications & Experience:
Independent Non-Executive Director
Chris Afentoulis was appointed to the Board on 19 November 2019. Mr.
Afentoulis is a qualified chartered accountant and a graduate of the
Australian Institute of Company Directors. Chris has more than 17 years’
experience in professional services and senior executive positions
including finance, management, and corporate strategy with a range of IT
service and technology companies.
Other Directorships:
Nil
Mr. Paul Gillespie
Qualifications & Experience:
Independent Non-Executive Director
Paul Gillespie has over 20 years of experience in the Smart Parking and
Transportation marketplace where he has held several leadership
positions. Mr. Gillespie is currently the Managing Director and CEO of ASX
listed company, Smart Parking, (ASX: SPZ), a position he has held since
January 2013. Before joining Smart Parking, Mr. Gillespie was a leading
figure in the UK parking industry, having held senior positions at Xerox
Parking Services where he was successful in leading two business units
providing hardware and software solutions to a variety of public and
private organisations.
Other Directorships:
Managing Director with Smart Parking Ltd.
Company Secretary
Mr. Harry Miller
Mr. Miller’s appointment was effective upon the resignation of Mr Ian Hobson on the 22nd of August 2022.
Mr. Miller has over 7 years of audit, compliance, and company secretarial experience across several sectors.
He presently acts as the Company Secretary for multiple ASX listed and private companies.
Mr. Miller’s qualifications include a Bachelor Commerce, Economics & Finance, University of Notre Dame
Australia and Master of Professional Accounting, University of Notre Dame Australia.
Directors’ meetings
The number of Directors’ meetings (including meetings of committees of Directors) and number of meetings
attended by each of the Directors of the Company during the financial year are:
Directors
Held
Attended
G Purdy
6
6
S Gallagher
6
6
A Lewis
6
6
C Afentoulis
6
6
P Gillespie
6
6
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ANNUAL REPORT 2024
Principal activities
The Group’s principal activities during the financial year were the development, manufacture and sale of
integrated surveillance systems, passenger communication systems, and fleet management solutions for
the global transport industry and other related markets.
There were no significant changes in the nature of the activities of the Group during the year.
Operating and Financial Review
Overview
DTI’s customers are transit agencies, transit vehicle manufacturers, transit operators and vehicle operators.
The Company offers the following products and services:
•
Advanced mobile surveillance solutions:
•
specialised hardware systems incorporating video, audio, GPS tracking, communications,
and high-speed recording technology; and
•
sophisticated device and data management software to provide comprehensive, fleet-wide,
CCTV and vehicle management solutions.
•
Passenger communication solutions:
•
specialised hardware systems such as graphical and high brightness displays;
•
public address and hearing aid loop communications, passenger emergency
communications; and
•
real time passenger information presentations and infotainment systems on graphical
displays.
•
Vehicle telematics:
•
Vehicle position & status reporting; and
•
Integration with ancillary systems.
•
Video analytics:
•
Patented algorithms to capture the intersection point between the overhead power line and
the pantograph arm;
•
Passenger counting;
•
Driver fatigue monitoring; and
•
Advanced machine learning algorithms.
•
Managed services:
•
video management, vehicle data analysis and monitoring, schedule adherence analysis; and
•
IT infrastructure, help desk, technical support, monitoring, and first-line maintenance.
DTI markets its products to a worldwide customer-base, both directly and with a network of integrators and
business partners.
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ANNUAL REPORT 2024
Shareholder returns
The table below reports summary information on the Group’s earnings and movement in shareholder wealth
for the five years to 30 June 2024.
Net profit/(loss) amounts have been calculated in accordance with Australian Accounting Standards (AASBs).
Review of Financial Condition
FY24 Financial Performance
During the year ended 30 June 2024, DTI reported revenue of $7.7 million (2023: $13.3 million). This
represents a 42 percent reduction compared to the prior year which is primarily attributed to lower revenue
from completed complex rail projects revenue that was only partially offset by increased bus and light-rail
revenue.
DTI recorded negative EBIT of $2.3 million for the year ended 30 June 2024 (2023: -$0.84 million).
FY24
FY23
FY22
FY21
FY20
Revenue
$
7,699,480
13,264,585
15,887,389
18,572,598
14,085,266
EBITDA
$
(1,818,988)
(472,837)
424,059
435,174
(2,230,530)
EBIT
$
(2,294,406)
(836,150)
152,046
76,058
(2,697,174)
Net profit/(loss) after tax
$
(2,483,370)
(939,983)
86,281
24,844
(2,731,270)
Share price at start of year
$
0.02
0.01
0.02
0.02
0.03
Share price at end of year
$
0.01
0.02
0.01
0.02
0.02
Dividends
cps
-
-
-
-
Basic (loss)/
earnings per share
cps
(0.56)
(0.21)
0.02
0.01
(0.91)
Return on Capital Employed
%
(54.19)
(12.29)
2.02
1.43
(51.52)
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ANNUAL REPORT 2024
Underlying EBITDA
Reconciliation of Underlying EBITDA
FY24
$
FY23
$
Net Profit Before Tax
(2,480,904)
(939,983)
Net Interest Expenses
186,498
103,833
EBIT
(2,294,406)
(836,150)
Depreciation/Amortisation
475,418
363,313
Statutory EBITDA
(1,818,988)
(472,837)
Impairment of inventories/(reversal)
103,043
44,638
Impairment of trade receivables/(reversal)
(48,519)
15,000
Underlying EBITDA
(1,764,464)
(413,199)
Cash Flow
During the year, DTI generated negative operating cash flow of $0.347 million (2023: positive $0.773 million).
Total net cash outflow for the year was $0.63 million. Key impacts on net cash flow included a:
i)
$5.565 million decrease in revenue;
ii)
$4.079 million decrease in cost of goods sold;
iii) $0.757 million investment in intangible assets; and
iv) $2.097 million decrease in trade & other receivables.
Financial Position
At the end of the financial year DTI maintained unrestricted cash reserves of $0.478 million and net assets of
$3.903 million. DTI has short term debt of $0.514 million (2023: nil).
Review of principal business
DTI services the global transport market. The principal underlying drivers for DTI business are:
i)
Government investments in public transport to meet community expectations on quality, safety,
reliability, and availability;
ii)
Government investments in low-emission public transport;
iii)
Customer demand for improved security and surveillance on mass transit systems;
iv)
Customer demand for passenger information systems on mass transit systems; and
v)
Vehicle operator demand for safety and efficiency support systems – video, telematics, vehicle
data.
DTI considers these are strong drivers of demand for its products and services which will continue into FY24
and beyond.
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ANNUAL REPORT 2024
Operational performance
DTI provides long-term maintenance and support services to municipal transit authorities in Australia, the UK,
U.S.A and Africa.
European end-customers are also engaged through business partners in eastern & western Europe.
Significant changes in state of affairs
In the opinion of the Directors, the Group’s situation did not change significantly during the financial year.
Outlook
Opportunity Pipeline
DTI continues to enjoy strong demand for its products and services with an Opportunity Pipeline exceeding
$120 million. The bulk of the pipeline is in the Rail sector however the Bus sector pipeline is increasing at a
rapid rate due to the adoption of low-emission vehicles which is causing an acceleration in fleet upgrades and
a patron driven requirement for improved real time passenger information.
Business Strategies
DTI’s business strategy is to support the mass transit and transport industry through the provision of
innovative hardware, software solutions and services.
In FY24, DTI is building upon a strong product development and supply chain base to support the traditional
mass transit market while also pursuing new customers in the wider road vehicle market.
Future Developments
DTI expects to gain new customers through the deployment of cloud-based products, a new range of
telematics solutions and entry into the wider road vehicle market.
Dividends
In respect of the financial year ended 30 June 2024, no interim dividend was paid, and the Directors have
determined that no final dividend will be paid.
Events since the end of the financial year
DTI Group was awarded the contract by Adelaide Metro Operations Pty Ltd for the design, manufacture and
supply of a Public Address, Closed circuit television and Information System (PACIS) for the upgrade of the
Citadis and Flexity Torrens Connect Trams in Adelaide. The contract value is in excess of AUD$4 million
commencing in September 2024 with all works scheduled to be completed by February 2027.
During July 2024, DTI Group signed a $900,000 financing facility. The receipt of these funds is timed to meet
business needs and support planned growth of the business.
No other matters or circumstances have arisen that have significantly affected or may significantly affect the
operations of DTI Group Ltd, the results of those operations or the state of affairs of DTI Group Ltd in
subsequent years that is not otherwise disclosed in this report.
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Likely developments and expected results of operations
The Group will continue to pursue its policy of developing CCTV/surveillance systems, telematics, and
passenger information technologies for the global mass transit market and wider vehicle market. DTI remains
confident in its outlook as it seeks to drive growth via a pipeline of opportunities.
Environmental regulation
The Company is not subject to any specific environmental regulation. The Directors have considered
compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities to report
greenhouse gas emissions and energy use. The Directors have assessed that there are no current reporting
requirements, but the Company may be required to do so in the future.
Directors’ interests
The relevant interest of each Director in the shares, debentures, interests in registered schemes and rights or
options over such instruments issued by the companies within the Group and other related bodies corporate,
as notified by the Directors to the ASX in accordance with S205G(1) of the Corporations Act 2001, at the date
of this report is as follows:
DTI Group Limited
Ordinary Shares
Options over Ordinary
Shares
Rights over Ordinary
Shares
G. Purdy
Nil
Nil
Nil
S. Gallagher
Nil
Nil
Nil
A. Lewis
2,500
Nil
Nil
C. Afentoulis
Nil
Nil
Nil
P. Gillespie
Nil
Nil
Nil
Indemnification of officers and auditors
The Company has agreed to indemnify the current Directors of its controlled entities for all liabilities to another
person (other than the Company or a related body corporate) that may arise from their position, except where
the liability arises out of conduct involving a lack of good faith. The agreement stipulates that the Company
will meet the full amount of any such liabilities, including costs and expenses.
During the financial year, the Company insured the Directors of the Company and all executive officers of the
Company against a liability incurred as such Director, secretary or executive officer to the extent permitted by
the Corporations Act 2001.
The Company has not otherwise, during or since the financial year, indemnified or agreed to indemnify an
officer or auditor of the Company or of any related body corporate against a liability incurred as such an officer
or auditor.
Non-audit services
The Board 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
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ANNUAL REPORT 2024
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 Board prior to commencement to ensure they do not
conversely affect the integrity and objectivity of the auditor.
•
The nature of the services provided does not compromise the general principles relating to auditor
independence as set out in the APES Code of Ethics for Professional Accountants.
The total fees for non-audit services paid to the auditor or related practices of the auditor during the year ended
30 June 2024 were nil.
Proceedings on behalf of the Company
No person has applied to the court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party,
for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.
Auditor’s independence declaration
The auditor’s independence declaration is set out on page 74 and forms part of the Directors’ report for the
financial year ended 30 June 2024.
Corporate Governance Statement
The Board of DTI is responsible for the corporate governance of the company and its subsidiaries. The Board
has governance oversight of all matters relating to the strategic direction, corporate governance, policies,
practices, management, and operations of DTI with the aim of delivering value to its Shareholders and
respecting the legitimate interests of other stakeholders, including employees, customers, and suppliers.
Under ASX Listing Rule 4.10.3, DTI is required to provide in its annual report details of where shareholders can
obtain a copy of a corporate governance statement, disclosing the extent to which the Company has followed
the ASX Corporate Governance Council Principles and Recommendations in the reporting period. DTI has
published its corporate governance statement on www.dti.com.au/investors.
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Audited Remuneration Report
This Remuneration Report, which forms part of the Directors' Report, sets out information about the
remuneration of Key Management Personnel (KMP) of the Group for the financial year ended 30 June 2024.
The term Key Management Personnel refers to those persons having authority and responsibility for planning,
controlling, and directing the activities of the consolidated entity, directly or indirectly, including any Director
(whether executive or otherwise) of the consolidated entity. Any reference to “Executives” in this report refers
to those KMP who are not Non-Executive Directors. The prescribed details for each person covered by this
report are detailed below under the following headings:
•
Key management personnel
•
Remuneration policy
•
Remuneration structure
•
Remuneration of Directors and key management personnel
•
Key terms of employment contracts
•
Key management personnel equity holdings
Key Management Personnel
The Directors and other Key Management Personnel of the consolidated entity during or since the end of the
financial year were:
Non-Executive Directors
The following persons acted as non-executive Directors of the Company during the financial year:
•
Mr. G. Purdy
•
Mr. S. Gallagher
•
Mr. A. Lewis
•
Mr. C. Afentoulis
•
Mr. P. Gillespie
All the Directors held their current positions for the whole of the financial year and have retained their position
since the end of the financial year.
DTI Executives
The following persons were employed as Group executives during the financial year:
•
Mr. M. Strack - Chief Executive Officer
•
Mr. D. Hood
- Chief Financial Officer
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Remuneration Policy
Non-Executive Directors
Non-Executive Directors receive a Board fee as set out below. They do not receive performance-based pay or
retirement allowances. The fees are inclusive of superannuation. The Chairman does not receive additional
fees for participating in or chairing committees.
The Chairman of the Board receives a fixed fee of $50,000 per annum. Other Non-Executive Directors each
receive an annual Board fee of $30,000. The maximum annual aggregate Directors’ fee pool limit is $250,000
and the current total is under this limit. Fees will be reviewed annually by the Board in the future.
All Non-Executive Directors have entered into a service agreement with the Company in the form of a letter of
appointment. The letter summarises various matters relating to the appointment including the position’s role
and responsibilities, time commitments, remuneration and expenses, outside interests, securities dealing
policy and the treatment of confidential information. These matters are consistently applied for each Non-
Executive Director.
DTI Executives
The Company’s remuneration policy for DTI executives rewards them fairly and responsibly having regard to
the performance of the Group, the performance of the executive and prevailing remuneration expectations in
the market.
The Company also seeks to establish remuneration structures which align the interests of its key management
personnel with the interests of the Company and its shareholders. DTI established a Management
Compensation Plan (MCP) under which certain executives are entitled to receive short-term incentives (STI)
and long-term incentives (LTI) based on the delivery of key Group and individual outcomes, and the profitability
of the DTI Group. During the financial year the Chief Executive Officer and Chief Financial Officer were
participants in the MCP.
Other DTI executives do not have a formal STI or LTI component of their remuneration package but may receive
a cash bonus as a STI, at the discretion of the Board.
As detailed in this report, no STI and LTI were rendered during FY24.
The amount of compensation for current and future periods for DTI executives is based on consideration of
market factors, comparison to peers and reference to the individual’s experience and performance. Overall,
remuneration policies are subject to the discretion of the Board and can be changed to reflect the competitive
market and business conditions when in the interest of the Company and shareholders.
Performance Evaluation
Each DTI executive is subject to a review of their individual performance each year in accordance with the
Company’s Development and Appraisal Process. This process commonly occurs in September each year.
Remuneration Structure
DTI executive
The remuneration structure for DTI executives participating in the MCP is based on the concept of a total
package target (TPT) assuming budgeted financial performance is achieved, and the participants performed
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satisfactorily. If the business and/or the participants perform below standard, then the total remuneration will
be less. If financial performance exceeds budget and there is above average performance, then the package
can increase by up to 18.75 per cent of the TPT. The TPT comprises three components:
i)
A fixed component, representing base salary plus superannuation, which comprises 75 per cent of
the TPT;
ii)
a variable component, represented by a STI paid as a cash bonus, which comprises 12.5 per cent of
the TPT. This component can increase to 25 per cent of the fixed component for exceptional
performance; and
iii)
a variable component, represented by a LTI in the form of an equity issue of DTI shares, which
comprises 12.5 per cent of the TPT. This component can increase to 33.3 per cent of the fixed
component for exceptional performance.
The STI and LTI are determined following the finalisation of the audited annual financial results. If employment
has ceased for any reason on or before the date when the STI and LTI are paid or are due for payment, eligibility
to receive the STI and LTI lapses. The participants may elect to receive the STI payment in equity securities,
subject to shareholder approval.
In the event of serious misconduct or a material misstatement in the Company’s financial statements, the
Board can cancel or defer performance-based remuneration and may also claw back performance-based
remuneration paid in previous financial years.
The Board of DTI Group reserves the right not to pay an STI or LTI if financial performance, earnings per share
and/or operational performance have not met the expectations of the Board.
The remuneration structure for DTI executives not participating in the MCP is based on a fixed component,
representing base salary plus superannuation. DTI Executives may be granted a cash bonus at the discretion
of the Board.
Fixed Component
Fixed remuneration comprises base salary, employer superannuation contributions and other allowances and
non-cash benefits. Each Executive’s fixed remuneration is reviewed and benchmarked annually.
Variable Component – STI and LTI
Variable remuneration for participants in the MCP comprises STIs linked to Company and individual
performance over one year, and LTIs linked to performance over a period greater than a year.
The tables below outline the remuneration framework and structure of the short-term incentive plan.
The following table sets out the maximum variable remuneration each Executive Officer could have achieved,
on an annualised basis, in FY24, expressed as a percentage of total remuneration, if maximum performance
was achieved for the STI and LTI components of their variable components.
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Maximum variable remuneration
Executives
Fixed
Variable – STI
Variable – LTI
2024
%
2023
%
2024
%
2023
%
2024
%
2023
%
Matthew Strack
Chief Executive Officer
100.0
100.0
0.0
0.0
0.0
0.0
David Hood
Chief Financial Officer
100.0
100.0
0.0
0.0
0.0
0.0
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Structure of the short-term and long-term incentive plan
Feature
Description
Max
opportunity
Member of the KMP: 58.3% of fixed remuneration
Performance
metrics
The STI and LTI metrics align with the Group's strategic priorities of market
competitiveness, operational excellence, shareholder value and fostering
talented and engaged people.
STI
Performance
metrics
Metric
Target
Weighting
Reason for selection
EBITDA
budget
50.0%
Reflects improvements
in both revenue & cost
control
Revenue
budget
5.0%
Focus on the Group's
growth strategy
Gross operating profit
budget
5.0%
Focus on product
profitability
Net Profit after tax
budget
5.0%
Focus on delivering
planned shareholder
return
Cash flow
budget
5.0%
Improved cash flow for
business needs
Individual
performance metrics
Specific to
individuals
30.0%
Targeted metrics have
been chosen that are
critical to individual
roles
LTI
Performance
metrics
Metric
Target
Weighting
Reason for selection
Earnings per share
Growth
50.0%
Business improvement
that is aligned with
shareholder interests
Individual
performance metrics
Specific to
individuals
50.0%
Targeted metrics have
been chosen that are
critical to individual
roles
Delivery of
STI & LTI
STIs and LTIs are normally calculated no more than two weeks after the
final audited results are released to ASX. The value of the equity issue is
determined based on the five-day weighted average market price on ASX
five trading days after the final audited results are released to ASX. If
employment has ceased for any reason on or before the date at which the
STI and LTI are due for payment, eligibility to receive the STI and LTI lapses.
STI is typically paid in cash during September. LTI share issues are made in
November - no deferral is in place.
Board
discretion
The Board assesses individual and corporate achievements and retains
discretion to adjust remuneration outcomes to prevent inappropriate reward
outcomes.
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ANNUAL REPORT 2024
Remuneration of Directors and key
management personnel
Details of the elements comprising the remuneration of the Company’s key management personnel are set
out in the following table. The table does not include the following components of remuneration because
they were not part of the remuneration package offered to Executives during FY24:
•
Short term cash profit sharing bonuses;
•
Payments made to KMP in respect of a period before or after the person held the KMP position;
•
Long term incentives distributed in cash;
•
Post-employment benefits other than superannuation; and
•
Non-monetary benefits.
Short-term Benefits
Post-
employment
Benefits
Long-
term
Benefits
Share
Based
Payments
Total
Proportion
Performance
related
Salary &
fees
STI
Total
Superannuation
benefits
Long
Service
Leave
$
$
$
$
$
$
$
%
Non - Executive Directors
G. Purdy
(Chairman)
2024
29,452
-
29,452
-
-
-
29,452
0.0%
2023
50,000
-
50,000
-
-
-
50,000
0.0%
S. Gallagher
2024
17,500
-
17,500
-
-
-
17,500
0.0%
2023
30,000
-
30,000
-
-
-
30,000
0.0%
A. Lewis
2024
17,500
-
17,500
-
-
-
17,500
0.0%
2023
30,000
-
30,000
-
-
-
30,000
0.0%
C. Afentoulis
2024
17,500
-
17,500
-
-
-
17,500
0.0%
2023
30,000
-
30,000
-
-
-
30,000
0.0%
P. Gillespie
2024
15,766
-
15,766
1,732
-
-
17,498
0.0%
2023
18,100
-
18,100
1,900
-
-
20,000
0.0%
Executive Directors/Officers
M. Strack
(CEO)
2024
285,923
-
285,923
31,452
-
-
317,375
0.0%
2023
309,750
-
309,750
32,524
-
-
342,274
0.0%
I. Hobson
(Company
Secretary)
2024
-
-
-
-
-
-
-
n/a
2023
1,800
-
1,800
-
-
-
1,800
0.0%
H. Miller
(Company
Secretary)
2024
24,220
-
24,220
-
-
-
24,220
0.0%
2023
21,568
-
21,568
-
-
-
21,568
0.0%
D. Hood
(CFO)
2024
211,416
-
211,416
23,256
-
-
234,672
0.0%
2023
222,227
-
222,227
23,796
-
-
246,023
0.0%
Total
2024
619,277
-
619,277
56,440
-
-
675,717
Total
2023
713,445
-
713,445
58,220
-
-
771,665
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ANNUAL REPORT 2024
Key terms of employment contracts
The Company has formal employment contracts with each of its continuing executives as set out below:
Name
Fixed
Remuneration
MCP Participant
Duration
Notice Period
Termination
Benefits
Matthew Strack
$343,823
Yes
Ongoing
Four weeks
None
David Hood
$254,228
Yes
Ongoing
Four weeks
None
* Refer page 50 for details of MCP plan and criteria.
The Company also has letters of appointment with each of its Non-executive Directors.
Loans to Key management personnel
There are no loans from the Company to a KMP.
Key management personnel equity holdings
The movement during the reporting period in the number of shares in DTI Group Limited held directly,
indirectly, or beneficially, by each key management person, including related parties, is as follows:
2024
Balance at
1 July 2023
Granted as
remuneration
On Exercise of
Options
Net Other Change
Balance at
30 June 2024
Number
Number
Number
Number
Number
Directors
G. Purdy
-
-
-
-
-
S. Gallagher
-
-
-
-
-
A. Lewis
2,500
-
-
-
2,500
C. Afentoulis
-
-
-
-
-
P. Gillespie
-
-
-
-
-
Executives
M. Strack
1,915,773
-
-
-
1,915,773
I. Hobson
-
-
-
-
-
H. Miller
-
-
-
-
-
D. Hood
-
-
-
-
-
During the year ended 30 June 2024, no share options were held by key management personnel.
Reliance on External Remuneration Consultants
There has not been any reliance on external remuneration consultants.
Adoption of Remuneration Report
The 2023 Annual General Meeting resolution adopting the 2023 Remuneration Report was carried in a majority.
The Company received more than 99.95 percent of “yes” votes on its Remuneration Report. The Company
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ANNUAL REPORT 2024
did not receive any specific feedback at the Annual General Meeting or throughout the year on its remuneration
practices.
This concludes the remuneration report, which has been audited.
Signed in accordance with a resolution of the Directors made pursuant to section 298(2) of the Corporations
Act 2001.
Greg Purdy
Chairperson
30 September 2024
Melbourne, Australia
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ANNUAL REPORT 2024
Financial
Statements
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Financial Statements
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ANNUAL REPORT 2024
Consolidated Statement of
Profit or Loss and Other
Comprehensive Income
for the year ended 30 June 2024
Note
2024
$
2023
$
Sales Revenue
2
7,699,480
13,264,585
Cost of Goods Sold
(4,739,338)
(8,817,888)
Operational overheads
(2,543,994)
(2,547,752)
Gross Margin
416,148
1,898,945
Impairment (expense) / reversal
2
(54,523)
(59,638)
Other income
2
10,968
110
Other expenses
2
–
–
Foreign exchange gain/(loss)
(40,265)
100,370
Corporate overheads
(2,151,316)
(2,412,624)
Depreciation/amortization
2
(475,418)
(363,313)
Net interest and finance gain/(loss)
2
(186,498)
(103,833)
Net Profit/(Loss) Before Tax
(2,480,904)
(939,983)
Tax (expense)/benefit
3
(2,466)
–
Net Profit/(Loss) After Tax
(2,483,370)
(939,983)
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss:
Exchange differences
3,621
(119,938)
Total other comprehensive income/(loss)
3,621
(119,938)
Total comprehensive income/(loss) for the
period
(2,479,749)
(1,059,921)
Total comprehensive income/(loss) is
attributable to:
Owners of DTI Group Ltd
(2,479,749)
(1,059,921)
Earnings per share for profit attributable to
the ordinary equity holders of the Company:
Basic earnings per share (cents per share)
22
(0.56)
(0.21)
Diluted earnings per share (cents per share)
22
(0.56)
(0.21)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
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Financial Statements
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ANNUAL REPORT 2024
Consolidated Statement of
Financial Position
as at 30 June 2024
Note
2024
$
2023
$
Current assets
Cash and cash equivalents
4
478,362
1,113,237
Trade and other receivables
5
1,816,464
3,913,008
Contract assets
2
176,635
80,279
Inventories
8
4,645,243
4,511,781
Other current assets
7
618,130
289,599
Total current assets
7,734,834
9,907,904
Non-current assets
Other assets
7
125,000
505,041
Property, plant, and equipment
9
235,371
269,768
Intangible assets
10
2,381,580
1,933,181
Contract assets
2
182,787
222,910
Right of use asset
18
219,583
334,148
Total non-current assets
3,144,321
3,265,048
Total assets
10,879,155
13,172,952
Current liabilities
Trade and other payables
6
4,798,290
4,919,688
Contract liabilities
2
465,212
449,933
Borrowings
7
612,647
35,778
Provisions
11
664,693
875,240
Lease liability
18
104,330
89,925
Total current liabilities
6,645,172
6,370,564
Non-current liabilities
Provisions
11
220,547
204,874
Lease liability
18
109,490
213,819
Total non-current liabilities
330,037
418,693
Total liabilities
6,975,209
6,789,257
Net assets
3,903,946
6,383,695
Equity
Contributed equity
13
35,908,371
35,908,371
Reserves
16
176,491
172,870
Accumulated losses
16
(32,180,916)
(29,697,546)
Total equity
3,903,946
6,383,695
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
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Financial Statements
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ANNUAL REPORT 2024
Consolidated Statement of
Changes in Equity
for the year ended 30 June 2024
Contributed
Equity
Employee
Share Plan
Reserve
Foreign
Currency
Translation
Reserve
Accumulated
Losses
Total
$
$
$
$
$
At 30 June 2022
35,908,371
478,968
(186,160)
(28,757,563)
7,443,616
Profit for the year
–
–
–
(939,983)
(939,983)
Other comprehensive income
–
–
(119,938)
–
(119,938)
Total comprehensive income
for the year
–
–
(119,938)
(939,983)
(1,059,921)
Transactions with owners in
their capacity as owners
Recognition of share-based
payments
–
–
–
–
–
Shares issued to extinguish
loan
–
–
–
–
–
Issue of share capital
–
–
–
–
–
Capital raising costs
–
–
–
–
–
At 30 June 2023
35,908,371
478,968
(306,098)
(29,697,546)
6,383,695
Profit for the year
–
–
–
(2,483,370)
(2,483,370)
Other comprehensive income
–
–
3,621
–
3,621
Total comprehensive income
the year
–
–
3,621
(2,483,370)
(2,479,749)
Transactions with owners in
their capacity as owners
Recognition of share-based
payments
–
–
–
–
–
Issue of share capital
–
–
–
–
–
Capital raising costs
–
–
–
–
–
At 30 June 2023
35,908,371
478,968
(302,477)
(32,180,916)
3,903,946
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
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Financial Statements
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ANNUAL REPORT 2024
Consolidated Statement of
Cash Flows
for the year ended 30 June 2024
Note
2024
$
2023
$
Cash flows used in operating activities
Receipts from customers
9,851,426
12,799,267
Payments to suppliers and employees
(10,171,066)
(12,010,380)
Interest received
25,178
12,596
Interest paid
(50,229)
(27,613)
Tax paid
(2,466)
–
Net cash outflow used in operating activities
12(b)
(347,157)
773,870
Cash flows used in investing activities
Payments for plant and equipment
(18,270)
(13,817)
Payments for intangible assets
(756,585)
(1,104,996)
Net cash outflow used in investing activities
(774,855)
(1,118,813)
Cash flows (used in)/from financing activities
Proceeds from borrowings
778,187
178,888
Repayment of borrowings
(201,318)
(184,122)
Payment for leased property
(89,925)
(120,324)
Net cash from financing activities
486,944
(125,558)
Net increase/(decrease) in cash and cash
equivalents
(635,068)
(470,501)
Cash and cash equivalents at the beginning of the
year
1,113,237
1,558,055
Effect of foreign exchange on opening balances
193
25,683
Cash and cash equivalents at the end of the year
12(a)
478,362
1,113,237
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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Financial Statements
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ANNUAL REPORT 2024
Notes to the
Financial
Statements
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Notes to the Financial Statements
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ANNUAL REPORT 2024
Notes to the Consolidated
Financial Statements
Note 1: Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker (CODM).
Segment information has been prepared in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the consolidated Group. The Group has one primary business segment
being the provision of integrated surveillance and passenger communication systems to the mass transit
industry.
The CODM is the Chief Executive Officer (CEO) who monitors the operating results of the consolidated group
and organises its business activities and product lines to serve the global mass transit industry. The
performance of the consolidated group is evaluated based on Earnings before Interest, Taxes, Depreciation
and Amortisation (“EBITDA”) which is measured in accordance with the Group’s accounting policies.
Major customers
DTI supplies goods and services to a broad range of customers in the transit industry. During the reporting
period, five (2023: four) major customers accounted for 65 per cent (2023: 56 per cent) of the Group’s revenue.
Note 2: Revenue and expenses
A. Significant accounting policy
Revenue is measured based on the consideration specified in a contract with a customer and excludes
amounts collected on behalf of third parties. The Group recognises revenue when it transfers control over a
product or service to a customer.
Significant judgement: Revenue recognition
The recognition of revenue relating to long-term projects is determined in two ways, depending on the products
or services provided in relation to the project. Where products are provided as part of a long-term project the
Group recognises revenue when it transfers control over a product to the customer. Where the project is for
the provision of products and services, revenue recognition is subject to the management’s judgement on
measurement of progress towards satisfaction of performance obligations using the input method.
When management determines multiple distinct performance obligations exist in a contract, transaction price
is allocated based on stand-alone selling price of the product or service sold. The stand-alone selling price is
based on the retail price.
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Notes to the Financial Statements
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ANNUAL REPORT 2024
B. Nature of Goods and Services
The following is a description of the principal activities from which the Group generates its revenue.
Products and
services
Nature, timing of satisfaction of performance obligations and
significant payment terms
Sale of goods only
The Group recognises revenue when the customers obtain control of the
goods. This usually occurs when the goods are delivered. The amount of
revenue recognised for goods delivered is adjusted for expected returns.
Invoices are generated and revenue is recognised at that point in time. Invoices
are usually payable within 45 days (credit term). No element of financing is
deemed present as the sales are made within standard credit terms, which is
consistent with market practice. The Group’s obligation to provide a refund or
replacement for faulty products under the standard warranty terms is
recognised as a provision.
Projects
Where contracts are for the provision of products only, the Group recognises
revenue when the customers obtain control of the goods. This usually occurs
when the goods are delivered. The amount of revenue recognised for goods
delivered is adjusted for expected returns. Invoices are generated and revenue
is recognised at that point in time.
Some contracts include multiple deliverables, such as the provision and
installation and commission of hardware and software. These multiple
deliverables form an integration service and could not be performed by another
party, the goods and services represent a single combined performance
obligation over which control is considered to transfer over time. This is
because the provision of goods and services by the Group enhance an asset
(i.e., trains or buses) that the customer controls as the asset is enhanced.
Revenue is recognised over time as the customisation or integration work is
performed, using the cost-to-cost input method to estimate progress towards
completion. When cost incurred is not proportionate to the entity’s progress in
satisfying the performance obligation, the input method is adjusted to
recognise revenue only to the extent of that cost incurred (For example, goods
have been delivered to the customers, but installation has not commenced).
Estimates of revenues, costs, or extent of progress toward completion are
revised if circumstances change. Any resulting increases or decreases in
estimated revenues or costs are reflected in profit or loss in the period in which
the circumstances that give rise to the revision become known by
management. Customers usually pay according to the agreed invoicing
schedule or contract milestones. If the goods and services rendered by the
Group exceed the payment, a contract asset is recognised. If the payments
exceed the goods and services rendered, a contract liability is recognised.
Maintenance and
technical support
The Group provides maintenance and technical services. These services are
usually bundled together with sales of products or provision of project services
to the customer. The maintenance and technical support can be obtained from
other providers and do not significantly customise or modify the product sold.
When this service is bundled together with other services provided by the
Group, the Group performed a re-allocation of contract consideration based on
the relative stand-alone selling prices of its bundled services. For maintenance
and technical support, which is billed based on an hourly basis, the Group
recognises revenue as the services are performed.
For personal use only
Notes to the Financial Statements
P a g e | 3 6
ANNUAL REPORT 2024
C. Disaggregation of Revenue
In the following table, revenue is disaggregated by primary geographical market, major products/service
lines and timing of revenue recognition.
2024
2023
$
$
Primary geographical markets
Australia
5,804,361
6,768,831
Europe & Others
734,354
4,733,750
North America
1,160,765
1,762,004
7,699,480
13,264,585
Major products/service lines
Sale of products
1,459,168
3,484,566
Projects
4,193,382
7,709,575
Maintenance
2,046,930
2,070,444
7,699,480
13,264,585
Revenue recognition
At a point in time
5,165,252
10,468,211
Over time
2,534,228
2,796,374
7,699,480
13,264,585
D. Contract balances and contract costs
The group has recognised the following contract assets and liabilities:
2024
$
2023
$
Current contract assets
Capitalised contract costs
176,635
80,279
Non-current contract assets
Retention
182,787
222,910
Current contract liabilities
465,212
449,933
(i) Definition
Contract Assets
•
Accrued Revenue
The contract assets primarily relate to the Group’s rights to consideration for work completed but not
billed at the reporting date. The contract assets are transferred to receivables when the rights become
unconditional.
•
Contract Costs
Management expects that incremental costs incurred as a result of obtaining project-based contracts are
recovered. These incremental costs of completing a particular project-based contract are capitalised as
contract costs and expensed when the related revenue is recognised. The Group have applied the practical
expedient in paragraph 94 of AASB 15, the Group recognises the incremental costs of obtaining contracts
as an expense when incurred if the amortisation period of the assets that the Group otherwise would have
For personal use only
Notes to the Financial Statements
P a g e | 3 7
ANNUAL REPORT 2024
recognised is one year or less. The Group applies impairment policy on contract costs as stated in Note
10.
Contract Liabilities
The contract liabilities primarily relate to the advance consideration received from customers for project-
based service, for which revenue is deferred until revenue can be recognised on the completion of its
passenger information system.
(ii) Significant changes in contract assets and contract liabilities
Contract assets have increased as the Group has commenced the Visy Truck installations which are partially
billed and completed as at 30 June 2024.
Contract liabilities have increased as software licenses that run for greater than one year have been sold to a
range of customers, particularly Siemens who additionally purchase a four-year warranty (on top of the one-
year warranty normally supplied) for each TDR-6 system sold.
(iii) Revenue recognised in relation to contract liabilities
Revenue recognised for the year ended 30 June 2024 which was included in the contract liability balance at
the beginning of the period is $294,318 (2023: $945,371).
E. Other Income
2024
$
2023
$
Other Income
Other income
10,968
110
10,968
110
Interest income is recognised on a time proportion basis using the effective interest method.
2024
$
2023
$
Net interest and finance (loss)/gain
Interest expense
(172,114)
(97,510)
Interest expense – right of use asset
(39,561)
(18,919)
Interest received
25,177
12,596
(186,498)
(103,833)
Depreciation and amortisation expense
Depreciation
(52,667)
(61,893)
Depreciation – Right of use assets
(114,565)
(114,565)
Amortisation
(308,186)
(186,855)
(475,418)
(363,313)
Impairment (expense) / reversal
Inventory
(103,042)
(44,638)
Trade receivables
48,519
(15,000)
(54,523)
(59,638)
For personal use only
Notes to the Financial Statements
P a g e | 3 8
ANNUAL REPORT 2024
Note 3: Income tax
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the
taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or
substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability
(or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of temporary
differences arising from differences between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax base of those items.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets
are recognised to the extent that it is probable that sufficient taxable income will be available against which
deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax
assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial
recognition of assets and liabilities (other than as a result of a business combination) which affects neither
taxable income nor accounting profit. Furthermore, a deferred tax liability is not recognised in relation to
taxable temporary differences arising from goodwill.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in associates
and are only recognised to the extent that it is probable that there will be sufficient taxable profits against
which to utilise the benefits of the temporary differences and that they are expected to reverse in the
foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s)
when the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities and
assets reflects the tax consequences that would follow from the manner in which the Company expects, at
the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in the consolidated statement of profit or loss
and other comprehensive income, except when it relates to items credited or debited directly to equity, in which
case the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a
business combination, in which case it is taken into account in the determination of goodwill or excess.
For personal use only
Notes to the Financial Statements
P a g e | 3 9
ANNUAL REPORT 2024
2024
$
2023
$
(a)
Income tax benefit
Current tax expense
2,466
–
Deferred tax
–
–
Adjustments for current tax of prior periods
–
–
2,466
–
(b)
Numerical reconciliation of income tax expense (benefit)
to prima facie tax receivable
Profit / (loss) before income tax benefit
(2,480,904)
(939,983)
Prima facie tax benefit on loss at 25% (2023:25%)
(620,224)
(234,996)
Tax effect of:
Other
2,746
3,529
Other deductible
90,320
386,151
Other non-deductible
–
–
Other non-assessable income
–
–
Effect of lower / higher statutory income tax rate in the UK, SA and USA
(7)
(154,684)
Recoupment of prior year losses
(21,835)
–
Current year losses for which no deferred tax assets is recognised
551,466
–
Deferred taxes not brought to account
–
–
2,466
–
(c)
Deferred income tax balances recognised in the accounts
Deferred tax liabilities
Prepayments
(2,371)
(813)
Unrealised foreign exchange gain
(26,977)
(44,226)
Property, plant & equipment
(101,676)
(138,059)
Project WIP
(44,159)
(20,070)
Right of use asset
(54,894)
(83,536)
Set-off of deferred tax liabilities
230,077
286,704
Net recognised deferred tax liability
–
–
Deferred tax assets
Annual leave provision
72,099
84,080
Long service leave provision
74,948
64,396
Accrued audit fees and other creditors
216,006
78,944
Superannuation provision
–
–
Capital raising fees
5,366
11,092
Deferred Revenue
–
112,483
Right of use liability
90,955
113,436
Provision for diminution in trading stock
210,495
184,734
Provision for doubtful debts
10,209
20,839
Tax losses carried forward
5,970,837
5,577,958
Set off deferred tax liabilities
(230,077)
(286,704)
Warranty
16,492
39,167
Deferred tax asset not brought to account as realisation is not probable
(6,437,330)
(6,000,425)
Net recognised deferred tax assets
–
–
Net deferred tax assets are brought to account when it is probable that immediate sufficient tax profits will be
available against which temporary differences and tax losses can be utilised.
Franking credits available for this financial year is $44,481 (2023: $44,481).
For personal use only
Notes to the Financial Statements
P a g e | 4 0
ANNUAL REPORT 2024
Note 4: Cash and cash equivalents
2024
$
2023
$
Cash at bank
478,362
1,113,237
Note 5: Trade and other receivables
Trade receivables and other receivables are recorded at amounts due less any allowance for doubtful debts.
Significant Estimate
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is
based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to
allocate an overall expected credit loss rate for each group. These assumptions include recent sales
experience, historical collection rates, the impact of the Coronavirus (COVID-19) pandemic and forward-
looking information that is available. The allowance for expected credit losses, as disclosed in note 14, is
calculated based on the information available at the time of preparation. The actual credit losses in future
years may be higher or lower.
2024
$
2023
$
Current
Trade receivables (net of impairment)
1,711,501
3,813,473
Other debtors
104,963
99,535
1,816,464
3,913,008
(a) Impaired trade receivables
2024
$
2023
$
Movements in the provision for impairment of receivables
are as follows:
Opening at 1 July
93,276
77,985
Receivable written off during the year as uncollectable
4
291
Amount recovered
(48,519)
15,000
Closing at 30 June
44,761
93,276
Any creation and release of the provision for impaired receivables is included in ‘other expenses’ in the
statement of profit or loss and other comprehensive income. Amounts charged to the allowance account are
generally written off when there is no expectation of recovering additional cash.
(b) Past due but not impaired
At 30 June 2024, trade receivables of $1,088,843 (2023: $2,010,920) were past due, but not impaired. These
relate to several independent customers for whom there is no recent history of default. DTI is confident that
these receivables are collectible and are active in the management and reduction of these overdue amounts.
For personal use only
Notes to the Financial Statements
P a g e | 4 1
ANNUAL REPORT 2024
The ageing analysis of these trade receivables is as follows:
2024
%
2023
%
2024
$
2023
$
Up to 3 months
32%
72%
350,370
1,026,566
3 to 6 months
68%
28%
738,473
984,354
100%
100%
1,088,843
2,010,920
The other classes within Trade and other receivables do not contain impaired assets and are not past due.
Based on the credit history of these trade receivables, it is expected that these amounts will be received when
due. The Group does not hold any collateral in relation to these receivables.
(c) Foreign exchange and interest rate risk
Information on the Group’s exposure to foreign currency risk and interest rate risk in relation to trade and other
receivables is provided in Note 14.
(d) Fair value and credit risk
Due to the short-term nature of current receivables, their carrying amount is assumed to approximate their fair
value. Credit risk is assessed at the time a customer applies to open a credit account with the Group and is
monitored thereafter on a regular basis. Management assesses the credit quality of the customer, taking into
account its financial position, past experience, trade references, external rating where obtained and other
factors then set credit limits. The compliance with credit limits by customers is regularly monitored by
management.
Note 6: Trade and other payables
Trade payables and other payables are recognised when the Company becomes obliged to make future
payments resulting from the purchase of goods and services. The amounts are unsecured and are usually
paid within 60 to 90 days of recognition.
2024
$
2023
$
Trade payables
1,777,071
2,222,255
Other payables
2,791,020
2,550,736
Superannuation liability
212,242
114,614
Payroll tax liability
17,957
32,083
4,798,290
4,919,688
Risk exposure
Information about the Group’s exposure to foreign exchange is provided in Note 14.
Note 7: Borrowings
2023
$
2022
$
Current Secured:
Net carrying amount – Short Term Loan (Finico)
514,309
–
Net carrying amount – Premium Funding
98,338
35,778
612,647
35,778
For personal use only
Notes to the Financial Statements
P a g e | 4 2
ANNUAL REPORT 2024
Reconciliation of borrowings arising from financing activities:
Accounting Policy
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transactions costs) and the
redemption amount is recognised in the consolidated statement of profit or loss and other comprehensive
income over the period of the borrowings using the effective interest method. Fees paid on the establishment
of loan facilities, which are not an incremental cost relating to the actual draw-down of the facility, are
recognised as prepayments and amortised on a straight-line basis over the term of the facility.
Premium Funding
In November 2023, the Company financed its insurance premiums with the funds to be repaid within the next
10 months. Additional insurance premiums were added to the existing premium funding arrangement in
January and March 2024. This facility is secured against the insurance policies.
Financing Facility
As at year ended 30 June 2024, a $111,000 American Express facility was available and in use.
Other Assets – Bank guarantee and insurance bonds
2024
$
2023
$
Other Assets – Current
Cash deposit held for bank guarantee
380,041
–
Cash deposit
50,000
50,000
Prepayments
188,089
239,599
618,130
289,599
Other Assets – Non-Current
Cash deposit held for bank guarantee
125,000
505,041
Other assets – cash deposit includes cash backing deposits associated with the issue of bank guarantee to
a major customer and the lessor. These deposits are therefore not available for general use by the Group.
Bank guarantees for unconditional undertaking of contracts
2023
$
2022
$
Performance requirements of contracts (see note below
regarding reclassification from non-current to current)
380,041
380,041
Lease of land contract
125,000
125,000
505,041
505,041
2023
Cash flows
Non-cash changes
2024
Opening
Addition
Fair value
changes
Closing
$
$
$
$
$
Premium Funding
35,778
(215,627)
278,187
–
98,338
For personal use only
Notes to the Financial Statements
P a g e | 4 3
ANNUAL REPORT 2024
The Company has given bank guarantees relating to performance requirements of contracts. A bank
guarantee in relation to this contract of $380,041 (2023: $380,041) is included in the amounts above. As the
bank guarantee is due to expire on 31 December 2024, the amount has been reclassified from non-current to
current as at 30 June 2024.
Under the contract for the lease of land on which the office and workshop facilities are situated, the Company
may at some future point (at the option of the Lessor) be required to “make good” the land and remove the
building and any improvements thereon. A bank guarantee of $125,000 (2023: $125,000) for this contract, is
included in the amounts above. As the lease is due to expire on 31 May 2026, the cash deposit held for the
bank guarantee has been classified as non-current as at 30 June 2024.
•
Refer to Note 14 for risk exposures and risk management details.
•
Refer to Note 15 for capital management details.
Note 8: Inventories
2024
$
2023
$
Raw materials / unassembled stock
5,523,742
5,287,196
Provision for inventory obsolescence
(878,499)
(775,415)
4,645,243
4,511,781
In determining the appropriate policy for the inventory obsolescence provision, management considered the
composition of stock, improvements in stock ageing and turnover, as well as recent sales activity. Based on
these factors it was determined the provision for stock obsolescence should be $878,499 (2023: $775,415)
as at 30 June 2024.
Accounting Policy
Inventories are valued at the lower of cost and net realisable value. Costs are assigned to inventory on hand
by the method most appropriate to each class of inventory, with the majority being valued on a weighted
average basis by location. Net realisable value is the estimated selling price in the ordinary course of business
less the estimated costs of completion and the estimated costs necessary to make the sale.
Significant judgement: Inventory obsolescence
Inventories are accounted for in accordance with the accounting policy detailed above. Where the net
realisable value of inventory is lower than its cost the Group recognises a provision for inventory
obsolescence. At 30 June 2024, management has determined no additional impairment (2023: $nil) is required
for inventory where net realisable value is lower than its cost.
For personal use only
Notes to the Financial Statements
P a g e | 4 4
ANNUAL REPORT 2024
Note 9: Property, plant and equipment
2024
$
2023
$
Buildings
At cost
138,925
138,925
Less accumulated depreciation
(138,925)
(138,925)
–
–
Workshop and R&D plant and equipment
At cost
2,098,444
2,098,442
Less accumulated depreciation
(2,088,433)
(2,085,633)
10,011
12,809
Office equipment and software
At cost
1,471,459
1,453,093
Less accumulated depreciation
(1,444,005)
(1,422,481)
27,454
30,612
Sales Demo equipment
At cost
284,415
284,415
Less accumulated depreciation
(86,509)
(58,068)
197,906
226,347
Motor vehicles
At cost
57,963
57,963
Less accumulated depreciation
(57,963)
(57,963)
–
–
Written Down Value
235,371
269,768
Movements in carrying amounts:
Buildings
Balance at the beginning of the year
–
134
Additions
–
–
Depreciation expense
–
(134)
Carrying amount at the end of the year
–
–
Workshop and R&D plant and equipment
Balance at the beginning of the year
12,809
20,501
Additions
–
–
Depreciation expense
(2,798)
(7,692)
Carrying amount at the end of the year
10,011
12,809
Office equipment and software
Balance at the beginning of the year
30,612
42,417
Additions
18,270
13,817
Writeback in depreciation
–
4
Depreciation expense
(21,428)
(25,626)
Carrying amount at the end of the year
27,454
30,612
For personal use only
Notes to the Financial Statements
P a g e | 4 5
ANNUAL REPORT 2024
2024
$
2023
$
Sales Demonstration & Testing equipment
Balance at the beginning of the year
226,347
254,788
Additions
–
–
Depreciation expense
(28,441)
(28,441)
Carrying amount at the end of the year
197,906
226,347
Accounting Policy
Plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that
is directly attributable to the acquisition of the items.
Depreciation is provided on property, plant, and equipment. Depreciation is calculated on either a diminishing
value or straight-line basis to allocate the net cost or other re-valued amount of each asset over its estimated
useful life or in the case of certain leased plant and equipment the shorter lease term.
The following estimated useful lives are used in the calculation of depreciation:
•
plant and equipment – 2.5 to 5 years
•
motor vehicles under finance lease – 5 years
•
buildings – 10 years
•
sales demo equipment – 10 years
For personal use only
Notes to the Financial Statements
P a g e | 4 6
ANNUAL REPORT 2024
Note 10: Intangible assets
Development
Costs
Patents
Total
$
$
$
At 30 June 2024
Cost (gross carrying amount)
2,564,036
863,967
3,428,003
Accumulated amortisation
(447,113)
(599,310)
(1,046,423)
Net carrying amount
2,116,923
264,657
2,381,580
Movements in carrying amounts
Balance at 1 July 2023
1,661,636
271,545
1,933,181
Additions
708,894
47,691
756,585
Amortisation expense
(253,607)
(54,579)
(308,186)
Net carrying amount
2,116,923
264,657
2,381,580
At 30 June 2023
Cost (gross carrying amount)
1,855,142
816,276
2,671,418
Accumulated amortisation
(193,506)
(544,731)
(738,237)
Net carrying amount
1,661,636
271,545
1,933,181
Movements in carrying amounts
Balance at 1 July 2022
770,091
244,948
1,015,039
Additions
1,026,787
78,209
1,104,996
Amortisation expense
(135,242)
(51,612)
(186,854)
Net carrying amount
1,661,636
271,545
1,933,181
Accounting Policy
Amortisation of Capitalised Development Costs
Capitalised development costs are amortised on a straight-line basis in accordance with AASB108 para.40.
Impairment of assets
At each reporting date, the entity reviews the carrying amounts of its assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated to determine the extent of the impairment loss (if any). Where the asset does
not generate cash flows that are independent from other assets, the entity estimates the recoverable amount
of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment
loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case
the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised
For personal use only
Notes to the Financial Statements
P a g e | 4 7
ANNUAL REPORT 2024
in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the
impairment loss is treated as a revaluation increase.
Intangibles
Internally generated intangible assets, excluding capitalised development costs, are not capitalised and
expenditure is recognised in profit or loss in the year in which the expenditure is incurred.
Capitalised Development Costs
Research expenditure is recognised as an expense as incurred. Costs incurred on development projects
(relating to the design and testing of new or improved products) are recognised as intangible assets when it
is probable that the project will be a success considering its commercial and technical feasibility and its costs
can be measured reliably. The expenditure capitalised comprises all directly attributable costs, including costs
of materials, services and direct labour. Other development expenditures that do not meet these criteria are
recognised as an expense as incurred. Development costs previously recognised as an expense are not
recognised as an asset in a subsequent period.
The carrying value of an intangible asset arising from development expenditure is tested for impairment
annually when the asset is not yet available for use, or more frequently when an indication of impairment arises
during the reporting period. All other intangible assets are tested for impairment whenever events or changes
in circumstances indicate that the company amount may not be recoverable.
A summary of the policies applied to the Group’s intangible assets is as follows:
Policy
Patents
Development Costs
Useful lives
Finite
Finite
Amortisation methods
used
Amortised over the period
of expected future
benefits from the related
project on a straight-line
basis
Amortised over the period
of expected future benefits
from the related product
on a straight-line basis
Internally generated or
acquired
Acquired
Internally generated
Impairment testing
Annually and more
frequently when an
indication of impairment
exists
Annually for assets not yet
available for use and more
frequently when an
indication of impairment
exists. The amortisation
method is reviewed at
each financial year end
Significant estimates: Useful life of Patents and Development Costs
Patents have been assessed as having a useful life and are amortised using the straight-line method over a
period of 10 years. The patents have been granted for between 15 and 20 years by the relevant government
agency.
New products capitalised during FY24 are amortised using the straight-line method over a period of 5 to 7
years.
Significant estimates: Impairment of Intangible Assets
The group assesses at each reporting date whether there has been events or changes in circumstances
indicating whether the carrying value of assets may not be recoverable. The recoverable amount of the cash-
generating units (CGUs) was determined based on value-in-use calculations which require the use of
assumptions and estimates for future cashflows.
For personal use only
Notes to the Financial Statements
P a g e | 4 8
ANNUAL REPORT 2024
Significant judgement: Development costs capitalised
Development costs are carried at cost less accumulated amortisation and accumulated impairment losses.
The net development costs have been subject to impairment testing. If an impairment indication arises, the
recoverable amount is estimated, and an impairment loss is recognised to the extent that the recoverable
amount is lower than the carrying amount.
Significant judgement: Amortisation of intangible assets
Intangible assets are amortised over their useful lives (5 to 10 years). Amortisation commences when the
asset is available for commercial sale.
Description of the Group’s intangible assets
(a) Development costs
Development costs are carried at cost less accumulated amortisation and accumulated impairment losses.
The net development costs have been subject to impairment testing. If an impairment indicator arises, the
recoverable amount is estimated, and an impairment loss is recognised to the extent that the recoverable
amount is lower than the carrying amount.
(b) Patents
Patents have been externally acquired and are carried at cost less accumulated amortisation and impairment
losses. This intangible asset has been assessed as having a useful life and is amortised using the straight-
line method over a period of 10 years. The patents have been granted for between fifteen and twenty years by
the relevant government agency. If an impairment indication arises, the recoverable amount is estimated, and
an impairment loss is recognised to the extent that the recoverable amount is lower than the carrying amount.
(c) Impairment
The board determined that the underlying assumptions supporting the future economic benefit from the
intangible assets were sufficient. As a result, the board has not impaired these assets (2023: nil).
Note 11: Provisions
2024
$
2023
$
Current
Employee entitlements – long service leave
229,244
202,710
Employee entitlements – annual leave
288,394
336,320
Provision for warranty
144,352
303,057
Onerous contract provision 1
2,703
33,153
664,693
875,240
Non-current
Employee entitlements – long service leave
70,547
54,874
Lease – “Make Good” Provision
150,000
150,000
220,547
204,874
1 Reduction in provision due to the completion of an onerous long-term contract, residual amount is a provision for
retention payments.
For personal use only
Notes to the Financial Statements
P a g e | 4 9
ANNUAL REPORT 2024
Accounting Policy
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long
service leave, and sick leave when it is probable that settlement will be required, and they are capable of being
measured reliably. Provisions made in respect of wages and salaries, annual leave, long service leave, and
sick leave expected to be settled within 12 months are measured at their nominal values using the
remuneration rate expected to apply at the time of settlement.
When it is probable that the future costs to complete a contract will exceed future revenues, the expected loss
is recognised as a provision for onerous contract and as an expense immediately.
Significant judgement: Warranty provision
In determining the level of provision required for warranties, the consolidated entity has made judgments in
respect of the expected performance of the products, the quantity of customers who will claim under the
warranty and how often, and the costs of fulfilling the conditions of the warranty. The provision is based on
estimates made from historical warranty data associated with similar products and services.
Note 12: Notes to the cash flow statement
For statement of cash flow purposes, cash and cash equivalents includes cash on hand and deposits held at
call with financial institutions.
(a) Reconciliation of cash
For the purpose of the cash flow statement, cash includes cash on hand and in banks and short-term deposits
with banks. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the
related items in the statement of financial position as follows:
2024
$
2023
$
Australian Dollar bank accounts
294,954
363,214
British Sterling bank accounts
56,524
56,460
US Dollar bank accounts
115,579
686,949
Euro bank accounts
4,631
(17)
Rand bank account
6,674
6,631
478,362
1,113,237
(b) Reconciliation of Profit / (loss) after income tax to the net cash used in operating activities
2024
$
2023
$
Profit / (loss) after tax
(2,483,370)
(939,983)
Non-cash items:
Depreciation and amortisation
475,418
363,313
Exchange differences on foreign operations
3,428
(145,626)
Change in operating assets and liabilities
Decrease/(increase) in trade and other receivables
2,096,544
48,177
Decrease/(increase) in inventories
(133,462)
(341,002)
Decrease/(increase) in contract assets
40,123
(20,793)
Decrease/(increase) in contract costs
(96,356)
942,161
Increase in other assets
51,510
193,791
(Decrease)/increase in right of use asset
89,925
(193,015)
(Decrease)/increase in trade and other payables
(121,398)
1,464,609
(Decrease)/increase in provisions
(194,873)
(38,895)
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Notes to the Financial Statements
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ANNUAL REPORT 2024
(Decrease)/increase in contract liabilities
15,279
(617,702)
(Decrease)/increase in lease liability
(89,925)
58,835
Net outflow from operating activities
347,157
773,870
Note 13: Contributed equity
2024
No.
2024
$
2023
No.
2023
$
Ordinary shares
Balance at the beginning of financial
year
446,997,439
35,908,371
446,997,439
35,908,371
Balance at the end of the financial year*
446,997,439
35,908,371
446,997,439
35,908,371
*Balance excludes 1,553,975 Treasury Share held in trust for DESP.
Fully paid ordinary shares carry one vote per share and carry the right to dividends. Ordinary shares have no
par value, and the Company does not have a limited amount of authorised capital.
Management Compensation Plan
The DTI Management Compensation Plan (MCP) has been established by the Board to permit shares to be
issued by the Company to executive employees as part of an LTI.
The shares are recognised at the closing share price on the grant date as an incentive expense, with a
corresponding increase in equity at the time that the employees unconditionally become entitled to the
shares.
The Company has established the MCP to assist in the motivation, retention and reward of employees and
replaces the DTI Employee Share Plan.
No shares were issued during the year ended 30 June 2024.
Accounting Policy
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds. If the Company re-acquires its own
equity instruments, for example as a result of a share buy-back, those instruments are deducted from equity
and the associated shares are cancelled. No gain or loss is recognised in profit or loss and the consideration
paid including any directly attributable incremental costs (net of income taxes) is recognised directly in equity.
The Group’s principal financial instruments are cash, trade and other receivables, trade and other payables,
and borrowings. The main purpose of these financial instruments is to raise finance for the Group’s operations.
The Group has various other financial assets and liabilities such as trade and other receivables and trade
payables, which arise directly from its operations. The Group does not enter derivative transactions. The main
risks arising from the Group’s financial instruments are interest rate risk, liquidity risk, credit risk and foreign
exchange risk. The Board reviews and agrees policies for managing each of these risks.
For personal use only
Notes to the Financial Statements
P a g e | 5 1
ANNUAL REPORT 2024
Note 14: Financial risk management
The following table details the Group’s exposure to interest rate risk. The amounts disclosed in the tables are
the contractual undiscounted cash flows. The payables cash flows equal their carrying balances as the impact
of discounting is not significant.
Maturing
1 Year or
Less
$
Over 1 to 2
Years
$
Over 2
Years
$
Total
Contractual
Cash Flows
$
Total
Carrying
Value
$
Weighted
Average
Active
Interest
Rate
%
30 June 2024
Financial Liabilities
Fixed rate
Other borrowings
612,647
–
–
612,647
612,647
0.53%
Lease liability
134,666
127,955
–
262,621
213,819
22.82%
Non-interest bearing
Payables
4,798,290
–
–
4,798,290
4,798,290
–
5,545,603
127,955
–
5,673,558
5,624,756
–
Maturing
1 Year or
Less
$
Over 1 to 2
Years
$
Over 2
Years
$
Total
Contractual
Cash Flows
$
Total
Carrying
Value
$
Weighted
Average
Active
Interest
Rate
%
30 June 2023
Financial Liabilities
Fixed rate
Other borrowings
35,778
–
–
35,778
35,778
3.03%
Lease liability
129,486
134,666
127,955
392,107
303,744
29.09%
Non-interest bearing
Payables
4,919,688
–
–
4,919,688
4,919,688
–
5,084,952
134,666
127,955
5,347,573
5,259,210
–
Net Fair Value
The carrying amount of financial assets and financial liabilities recorded in the financial statements represents
their respective net fair values, determined in accordance with the accounting policies disclosed in Note 25.
Credit Risk Exposure
The Group's maximum exposure to credit risk at reporting date in relation to each class of recognised financial
assets is the carrying amount of those assets as disclosed in the statement of financial position. There are no
historical default rates in respect of receivables. Cash balances and term deposits are held with financial
institutions of minimum AA ratings.
The Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables.
For personal use only
Notes to the Financial Statements
P a g e | 5 2
ANNUAL REPORT 2024
To measure the expected credit losses (ECL), trade receivables have been grouped based on shared credit
risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales
over a period of 12 month before 1 July 2024 and the corresponding historical credit losses experienced within
this period. The historical loss rates are adjusted to reflect current and forward-looking information on
macroeconomic factors affecting the ability of the customers to settle the receivables. The customer type and
macro-economic factors in the customer’s market have been determined to be the most relevant factors for
assessing ECL.
Trade receivables are 100% credit impaired when there is no reasonable expectation of recovery. Indicators
that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage
in a repayment plan with the group and a failure to make contractual payments for a period of greater than
120 days past due.
On this basis, the loss allowance at the amount equal to the expected lifetime credit losses under the simplified
approach as at 30 June 2024 and 30 June 2023 is:
30 June 2024
Current
More
Than 30
Days Past
Due
More
Than 60
Days Past
Due
More
Than 90
Days Past
Due
Credit
Impaired
Total
Expected loss rate
0%
0%
0%
6%
100%
Gross carrying amount of
trade receivables
$861,415
$84,458
$27,154
$783,234
$0
$1,756,261
Loss allowance
$0
$0
$0
$44,761
$0
$44,761
30 June 2023
Current
More
Than 30
Days Past
Due
More
Than 60
Days Past
Due
More Than
90 Days
Past Due
Credit
Impaired
Total
Expected loss rate
0%
0%
0%
9%
100%
Gross carrying amount of
trade receivables
$2,068,743
$333,213
$427,162
$1,077,630
$0
$3,906,748
Loss allowance
$0
$0
$0
$93,276
$0
$93,276
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is
based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to
allocate an overall expected credit loss rate for each group. These assumptions include recent sales
experience, historical collection rates, the impact of the Coronavirus (COVID-19) pandemic and forward-
looking information that is available. The allowance for expected credit losses is calculated based on the
information available at the time of preparation. The actual credit losses in future years may be higher or lower.
For personal use only
Notes to the Financial Statements
P a g e | 5 3
ANNUAL REPORT 2024
Foreign Exchange Risk
The Group has transactions in currencies other than Australian Dollars which carry receivables and payables
in the respective currency. These financial instruments are not hedged. The Group’s exposure to foreign
currency risk at the end of the reporting period, expressed in Australian dollars, was as follows:
30 June 2024
30 June 2023
USD
$
EUR
$
GBP
$
ZAR
$
USD
$
EUR
$
GBP
$
ZAR
$
Cash
115,579
4,631
56,524
6,674
686,949
(17)
56,460
6,631
Trade and other debtors
860,848
87,756
250,759
1,806
1,932,782
84,294
343,599
4,568
Trade and other payables
(930,846)
(3,228)
(625,544)
(219,426)
(1,451,041)
–
(594,035)
(384,248)
45,581
89,159
(318,261)
(210,946)
1,168,690
84,277
(193,976)
(373,049)
Exchange rates
0.6624
0.6196
0.5244
12.1951
0.6630
0.6099
0.5250
12.3762
Interest Rate Risk
The Group's loan and lease arrangements are subject to fixed interest rates and therefore would not have been
impacted by any increase/decrease in interest rates during the current year.
Profit is sensitive to higher/lower interest income from cash and cash equivalents and term deposits because
of changes in interest rates. At year end the Group’s bank account was earning interest of 0.25 per cent (2023:
4 per cent).
Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Board's approach to managing liquidity is to ensure, as far as possible, that the Group will always have
sufficient liquidity to meet its liabilities when due. As at 30 June 2024 and the date of this report, the Group
has sufficient liquid assets to meet its financial obligations. Refer to Note 19 Going Concern for further details.
Sensitivity Analysis
Interest Rate Risk
The Group's loan and lease arrangements are subject to fixed interest rates and therefore would not have been
impacted by any increase/decrease in interest rates during the current year. Accordingly, an increase in
interest rates would not have impacted the Group's interest expense.
Movements in interest rates on the Group’s bank accounts and term deposits would not have a significant
impact on the Group’s results for the year.
Foreign Exchange Rate Risk
Based on the financial instruments held at 30 June 2024, had the Australian dollar weakened by 5 per cent
against the US Dollar, Euro, British Sterling and South African Rand, with all other variables held constant, the
Group’s pre-tax results for the year would have been $20,955 better (2023: $22,988 better). If the Australian
dollar had strengthened the corresponding impact would be a reduction in pre-tax results by approximately
the same amount.
Price Risk
Investments held are not listed or traded in active markets and therefore no price risk arises.
Note 15: Capital management
The Group’s objectives when managing capital are to:
•
safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders; and
For personal use only
Notes to the Financial Statements
P a g e | 5 4
ANNUAL REPORT 2024
•
maintain an optimal capital structure to reduce the cost of capital.
To maintain or adjust the capital structure, the Group may adjust the value of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Note 16: Reserves and accumulated losses
2024
$
2023
$
Reserves
Employee Share Plan reserve
478,968
478,968
Foreign currency translation reserve
(302,477)
(306,098)
176,491
172,870
Employee Share Plan Reserve
Balance 1 July
478,968
478,968
Arising on share-based payments
–
–
Balance 30 June
478,968
478,968
During the operation of the DTI Employee Share Plan (currently suspended), the Employee Share Plan Reserve
would record an expense over the vesting period for the value of the shares to be issued. As the plan is
currently suspended, the Employee Share Plan Reserve has been retained at its former balance.
2024
$
2023
$
Foreign currency translation reserve
Balance 1 July
(306,098)
(186,160)
Currency translation differences – current year
3,621
(119,938)
Balance 30 June
(302,477)
(306,098)
The foreign currency translation reserve is used to record exchange differences arising from the translation
of the financial statements of foreign subsidiaries.
2024
$
2023
$
Accumulated losses
Balance 1 July
(29,697,546)
(28,757,563)
Impact of changes in accounting policies
–
–
Net profit / (loss) for the year
(2,483,370)
(939,983)
Balance 30 June
(32,180,916)
(26,697,546)
Note 17: Share-based payments
No shares were issued to executives under the DTI Management Compensation Plan (MCP). Details of the
MCP are in Note 13.
The Group additionally has the capacity to issue equity securities to suppliers under the ASX Listing Rules as
an alternate method of payment for goods or services provided. The grant date fair value of share-based
payment awards granted to suppliers is recognised as a separate expense, contained within Share-based
payments expenses, with a corresponding increase in equity over the period that the supplier provides the
For personal use only
Notes to the Financial Statements
P a g e | 5 5
ANNUAL REPORT 2024
service or becomes unconditionally entitled to the award. The Group entered into such share-based payment
transactions by way of extinguishing a short-term loan in a prior year. Given the nature of this payment, it was
not recognised as a share-based payment expense but rather as a reduction of a liability.
The DTI Employee Share Plan (DESP) has been established by the Board to permit shares to be issued by the
company to employees for no cash consideration and has been put in place by the company. No shares were
issued in the current year.
2024
2023
Allocated
Avail. To
Allocate
Allocated
Avail. To
Allocate
Opening Balance
–
–
–
–
Shares Granted
–
–
–
–
Shares allocated
–
–
–
–
Shares vested to employees
–
–
–
–
Shares forfeited
–
–
–
–
Shares available / Closing Balance
–
–
–
–
Note 18: Right of use asset & lease liability
2024
$
2023
$
Right of use asset
Current
219,583
334,148
Property – Land
Lease Liability
Current
104,330
89,925
Property - Land
Non-Current
109,490
213,819
Property - Land
Amounts recognised in the statement of profit or loss
The statement of profit or loss shows the following amounts relating to leases:
2024
$
2023
$
Depreciation charge of right-of-use assets
Property - Land
114,565
114,565
Finance costs
Interest expense
39,561
18,919
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased
asset is available for use by the group. Each lease payment is allocated between the liability and finance cost.
The finance cost is charged to profit or loss over the lease period to produce a constant periodic rate of interest
For personal use only
Notes to the Financial Statements
P a g e | 5 6
ANNUAL REPORT 2024
on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter
of the asset's useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of the fixed payments (including in-substance fixed payments).
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be
determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay
to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with
similar terms and conditions.
Right-of-use assets are measured at cost comprising the following:
•
the amount of the initial measurement of lease liability
•
any lease payments made at or before the commencement date less any lease incentives received
Payments associated with short-term leases are recognised on a straight-line basis as an expense in profit
or loss. Short-term leases are leases with a lease term of 12 months or less.
Note 19: Going concern
The financial statements have been prepared on a going concern basis, which contemplates the continuity of
normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of
business. The Group recorded a loss after tax of $2.48 million for the year ended 30 June 2024 (2023: $0.940
million loss) and had operating cash outflows of $0.347 million (2023: $0.774 million inflow).
The ability of the Group to continue as a going concern may be dependent upon continued financial support
from its Directors, related parties and creditors, and on securing additional funding through capital raising or
debt funding to continue to meet its working capital requirements in the next 12 months. These conditions
indicate a material uncertainty that may cast significant doubt that the Group will continue as a going concern
and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of
business.
The Directors believe the Group will continue as a going concern based on the following considerations:
•
The business forecast shows positive cash flow for the next 12 months to 31 August 2025;
•
The successful implementation of the turnaround plan including a continued focus on projects and
contracts that generate positive returns;
•
Continued improvement in project performance coupled with a strong working capital and net asset
position;
•
Continued reduction of cash burn; and
•
Implementation of the new strategy to return to DTI to profitability.
•
During July 2024, DTI Group signed a $900,000 financing facility. The receipt of these funds is timed
to meet business needs and support planned growth of the business. This is also reported in note 21.
Should the Group be unable to continue as a going concern, it may be required to realise its assets and
extinguish its liabilities other than in the normal course of business and at amounts different from those stated
in the financial report. The financial report does not include any adjustments relating to the recoverability and
classification of recorded asset amounts nor to the amounts and classification of liabilities that may be
necessary should the Group be unable to continue as a going concern.
For personal use only
Notes to the Financial Statements
P a g e | 5 7
ANNUAL REPORT 2024
Note 20: Contingencies and commitments
There were no contingent liabilities or assets as at 30 June 2024.
There were no commitments as at 30 June 2024.
Note 21: Events occurring after the reporting period
DTI Group was awarded the contract by Adelaide Metro Operations Pty Ltd for the design, manufacture and
supply of a Public Address, Closed circuit television and Information System (PACIS) for the upgrade of the
Citadis and Flexity Torrens Connect Trams in Adelaide. The contract value is in excess of AUD$4 million
commencing in September 2024 with all works scheduled to be completed by February 2027.
During July 2024, DTI Group signed a $900,000 financing facility. The receipt of these funds is timed to meet
business needs and support planned growth of the business.
No other matters or circumstances have arisen that have significantly affected or may significantly affect the
operations of DTI Group Ltd, the results of those operations or the state of affairs of DTI Group Ltd in
subsequent years that is not otherwise disclosed in this report.
Note 22: Earnings/(Loss) per share
Basic Earnings / (Loss) per Share
Basic earnings per share is calculated by dividing:
•
the profit or loss attributable to owners of the company, excluding any costs of servicing equity other
than ordinary shares;
•
by the weighted average number of ordinary shares outstanding during the financial year,
adjusted for bonus elements in ordinary shares issued during the year.
Diluted Earnings / (Loss) per Share
Diluted earnings/(loss) per share adjusts the figures used in the determination of basic earnings per share to
take into account:
•
the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares; and
•
the weighted average number of additional ordinary shares that would have been outstanding assuming
the conversion of all dilutive potential ordinary shares.
For personal use only
Notes to the Financial Statements
P a g e | 5 8
ANNUAL REPORT 2024
Earnings / (loss) per share
2024
Cents per
Share
2023
Cents per
Share
Basic earnings / (loss) per share (cents per share)
(0.56)
(0.21)
Diluted earnings / (loss) per share (cents per share)
(0.56)
(0.21)
Reconciliation of profit / (loss) used in calculating earnings/(loss) per
share
2024
$
2023
$
The following reflects the income/(loss) and share data used in the
calculations of basic and diluted earnings per share:
Profit/(loss) used in calculating basic and diluted earnings per share
(2,483,370)
(939,983)
Weighted average number of shares used as the denominator
2024
Number of
Shares
2023
Number of
Shares
Weighted average number of ordinary shares used in calculating basic
earnings/(loss) per share
446,997,439
446,997,439
Weighted average additional shares issued during the period
–
–
Adjusted weighted average number of ordinary shares used in
calculating diluted earnings/(loss) per share
446,997,439
446,997,439
Note 23: Related-party transactions
(a) Key management personnel
2024
$
2023
$
Compensation by category:
key management personnel
Short-term benefits
619,277
713,445
Post-employment benefits
56,440
58,220
Share based payments
–
–
675,717
771,665
Detailed remuneration disclosures are provided in the remuneration report on pages 20 to 27.
For personal use only
Notes to the Financial Statements
P a g e | 5 9
ANNUAL REPORT 2024
(b) Subsidiaries
The consolidated financial statements include the following subsidiaries:
Name
Incorporation
Shares
Equity
%
2024
2023
DTI Capital Pty Ltd
Australia
Ordinary
100
100
Virtual Observer Pty Ltd
Australia
Ordinary
100
100
DTI EMEA Limited
UK
Ordinary
100
100
DTI USA Holdings Inc
USA
Ordinary
100
100
DTI USA Inc (i)
USA
Ordinary
100
100
Digital Technology International
(SA) (Pty) Ltd
South Africa
Ordinary
100
100
(i)
This entity is owned by DTI USA Holdings Inc.
Note 24: Parent entity financial information: DTI Group Ltd
The individual financial statements for the parent entity show the following amounts:
2024
$
2023
$
Statement of Financial Position
Assets
Current assets
7,197,364
8,583,905
Non-current assets
2,961,534
3,042,137
Total assets
10,158,898
11,626,042
Liabilities
Current liabilities
5,716,835
4,554,740
Non-current liabilities
330,037
872,437
Total liabilities
6,046,872
5,427,177
Net Assets
4,112,026
6,198,865
Shareholders’ equity:
Issued capital
35,908,371
35,908,371
Employee share plan reserve
478,967
478,967
Accumulated losses
(32,275,312)
(30,188,473)
Total Equity
4,112,026
6,198,865
Statement of Loss and
Other Comprehensive Loss
Profit/(loss) for the year
(2,086,839)
377,497
Total comprehensive loss
(2,086,839)
377,497
Contingent liabilities
The parent has no contingent liabilities at 30 June 2024.
For personal use only
Notes to the Financial Statements
P a g e | 6 0
ANNUAL REPORT 2024
Bank guarantee
The parent has provided a bank guarantee of $505,041.
The Company has given bank guarantees relating to performance requirements of contracts. A bank
guarantee in relation to this contract of $380,041 (2023: $380,041) is included in the amounts above.
Under the contract for the lease of land on which the office and workshop facilities are situated, the Company
may at some future point (at the option of the Lessor) be required to “make good” the land and remove the
building and any improvements thereon. A bank guarantee of $125,000 (2023: $125,000), for this contract, is
included in the amounts above.
Refer to Note 7 for more details.
Note 25: Summary of significant accounting policies
Statement of Compliance
This financial report includes the consolidated financial statements and notes of the Group. The financial
report is a general purpose financial report which has been prepared in accordance with the Corporations Act
2001, Australian Accounting Standards, Australian Accounting Interpretations, and other authoritative
pronouncements of the Australian Accounting Standards Board. The Group’s financial statements and
accompanying notes also comply with International Financial Reporting Standards (IFRS).
DTI is a for-profit company limited by shares incorporated in Australia whose shares have been publicly traded
on the Australian Securities Exchange from 9 December 2014.
The financial statements were authorised as per the Directors’ declaration on page 67 dated
30 September 2024.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Basis of Preparation
The financial report has been prepared on a historical cost basis. Cost is based on the fair values of the
consideration given in exchange for assets. In the application of IFRS management is required to make
judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily
apparent from other sources.
The estimates and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstance, the results of which form the basis of making the
judgments. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
Accounting Policies
Accounting policies are selected and applied in a manner which ensures that the resulting financial
information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the
underlying transactions or other events is reported.
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Notes to the Financial Statements
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The accounting policies set out below have been applied in preparing the financial statements for the year
ended 30 June 2024 and the comparative information presented in these financial statements for the year
ended 30 June 2023.
The following significant accounting policies have been adopted in the preparation and presentation of the
financial report:
(a) Principles of consolidation
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity
and can affect those returns through its power to direct the activities of the entity.
(b) Classification and initial measurement of financial assets (AASB 9 Financial Instruments)
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial
liability is derecognised when it is extinguished, discharged, cancelled, or expires.
Financial assets are classified according to their business model and the characteristics of their contractual
cash flows and are initially measured at fair value adjusted for transaction costs (where applicable).
Subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets, other than those designated and effective as
hedging instruments, are classified into the following four categories:
•
Financial assets at amortised cost
•
Financial assets at fair value through profit or loss (FVTPL)
•
Debt instruments at fair value through other comprehensive income (FVTOCI)
•
Equity instruments at FVTOCI
All income and expenses relating to financial assets that are recognised in profit or loss are presented within
finance costs, finance income or other financial items, except for impairment of trade receivables which is
presented within other expenses.
Financial assets at amortised cost
Financial assets with contractual cash flows representing solely payments of principal and interest and held
within a business model of ‘hold to collect’ contractual cash flows are accounted for at amortised cost using
the effective interest method. The Group’s trade and most other receivables fall into this category of financial
instruments.
Impairment of financial assets
AASB 9’s new forward looking impairment model applies to Group’s investments at amortised cost and debt
instruments at FVTOCI. The application of the new impairment model depends on whether there has been a
significant increase in credit risk.
Trade and other receivables and contract assets
The Group makes use of a simplified approach in accounting for trade and other receivables as well as
contract assets and records the loss allowance at the amount equal to the expected lifetime credit losses. In
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using this practical expedient, the Group uses its historical experience, external indicators and forward-looking
information to calculate the expected credit losses using a provision matrix (Refer Note 14).
(c) Foreign currency
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of
the primary economic environment in which the entity operates (‘the functional currency’).
The consolidated financial statements are presented in Australian dollars, which is the Company’s functional
and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities denominated in foreign currencies at year end
exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate to qualifying
cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a
foreign operation.
Foreign exchange gains and losses that relate to borrowings are presented in the consolidated statement of
profit or loss in finance costs. All other foreign exchange gains and losses are presented in the income
statement on a net basis within other income or other expenses.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined. Translation differences on assets and liabilities carried
at fair value are reported as part of the fair value gain or loss.
For example, translation differences on non-monetary assets and liabilities such as equities held at fair value
through profit or loss are recognised in profit or loss as part of the fair value gain or loss and translation
differences on non-monetary assets such as equities classified as available-for-sale financial assets are
recognised in other comprehensive income.
Group companies
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the presentation currency are translated into the
presentation currency as follows:
•
assets and liabilities for each statement of financial position presented are translated at the closing rate
at the date of that statement of financial position;
•
income and expenses for each statement of profit or loss and other comprehensive income are translated
at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the
rates prevailing on the transaction dates, in which case income and expenses are translated at the dates
of the transactions); and
•
all resulting exchange differences are recognised in other comprehensive income.
Goods and services tax
Revenues, expenses, and assets are recognised net of the amount of goods and services tax (GST), except:
•
where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part
of the cost of acquisition of the asset or as part of the item of expense; or
•
for receivables and payables which are recognised inclusive of GST.
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The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables.
Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows
arising from investing and financing activities which is recoverable from, or payable to, the taxation authority
is classified as operating cash flows.
(d) Comparative Figures
Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
(e) Significant accounting estimates and judgements
Estimation of onerous contracts provision
When the Group is aware that it is probable that the future costs to complete a contract will exceed future
revenues, the expected loss is recognised as a provision for onerous contract and as an expense immediately.
Estimation is involved in determination of total contract costs and forecast costs to complete.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has
had, or may have, on the consolidated entity based on known information. This consideration extends to the
nature of the products and services offered, customers, supply chain, staffing and geographic regions in which
the consolidated entity operates. Other than as addressed in specific notes, there does not currently appear
to be either any significant impact upon the financial statements or any significant uncertainties with respect
to events or conditions which may impact the consolidated entity unfavourably as at the reporting date or
subsequently as a result of the Coronavirus (COVID-19) pandemic.
(f) Auditor’s remuneration
2024
$
2023
$
Remuneration of the auditors of the entities for:
BDO Audit (WA) Pty Ltd
Auditing the full year financial report
–
–
Reviewing the half year financial report
–
32,500
Hall Chadwick WA
Auditing the full year financial report
55,000
51,000
Reviewing the half year financial report
32,000
–
87,000
83,500
Note 26: Company information
DTI Group Ltd is a listed public company (ASX: DTI), incorporated and operating in Australia.
Registered office and principal place of business
31 Affleck Road
Perth Airport, WA, 6105
Tel: (08) 9479 1195
Internet: www.dti.com.au
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Consolidated Entity
Disclosure Statement
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Consolidated Entity Disclosure Statement
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Consolidated entity disclosure statement as at 30 June 2024
Basis of preparation
This consolidated entity disclosure statement has been prepared in accordance with s295(3A)(a) of the
Corporations Act 2001 and includes the required information for DTI Group Limited and the entities it controls
in accordance with AASB 10 Consolidated Financial Statements.
Tax residency
S295(3A)(vi) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax
Assessment Act 1997. The determination of tax residency may involve judgement as there are different
interpretations that could be adopted and which could give rise to different conclusions regarding residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
Australian tax residency
Current legislation and judicial precedent has been applied, including having regard to the Tax Commissioner’s
public guidance in Tax Ruling TR 2015/5.
Foreign tax residency
Where appropriate, independent tax advisers have been engaged to assist in the determination of tax
residency to ensure applicable foreign tax legislation has been complied with.
Entity name
Entity type (i)
Country of
Incorporation
Percentage of
share capital
held (if
applicable)
Australian or
foreign tax
resident
Foreign Tax
jurisdiction (if
applicable)
DTI Group Limited
Body corporate
Australia
N/A
Australian (ii)
N/A
DTI Capital Pty Ltd
Body corporate
Australia
100%
Australian (ii)
N/A
Virtual Observer Pty
Ltd
Body corporate
Australia
100%
Australian (ii)
N/A
DTI EMEA Limited
Body corporate
United
Kingdom
100%
Foreign
United
Kingdom
Digital Technology
International (SA)
(Pty) Ltd
Body corporate
South Africa
100%
Foreign
South Africa
DTI USA Holdings
Inc.
Body corporate
United States
of America
100%
Foreign
United States
of America
DTI USA Inc. (iii)
Body corporate
United States
of America
100%
Foreign
United States
of America
(i)
There are no trusts, partnerships or joint ventures within the consolidated entity. Accordingly, none of
the above entities was a trustee of a trust within the consolidated entity, a partner in a partnership
within the consolidated entity or a participant in a joint venture within the consolidated entity.
(ii)
This entity is part of a tax-consolidated group under Australian taxation law, for which DTI Group
Limited is the head entity.
(iii) This entity is owned by DTI USA Holdings Inc.
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Directors’ declaration
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Directors’ Declaration
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Directors’ Declaration
In the opinion of the Directors of DTI Group Ltd ("Company"):
1. The financial statements and accompanying notes set out on pages 33-63 are in accordance with the
Corporations Act 2001, and
(i)
comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(ii)
give a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of
its performance for the year ended on that date.
2. In the opinion of the Directors, the information disclosed in the consolidated entity disclosure set out on
page 65 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.
4. The Company has included in the notes to the financial statements an explicit and unreserved Statement
of Compliance with International Financial Reporting Standards.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer
required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on
behalf of the Directors by:
Greg Purdy
Chairperson
30 September 2024
Melbourne, Australia
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Auditor’s Report
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Corporate Directory
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Corporate Directory
Directors
Mr Greg Purdy
Non-Executive Chairperson
Mr Steve Gallagher
Non-Executive Director
Mr Andrew Lewis
Non-Executive Director
Mr Chris Afentoulis Non-Executive Director
Mr Paul Gillespie
Non-Executive Director
Company Secretary
Mr Harry Miller
Registered and
Principal Office
31 Affleck Road
Perth Airport WA 6105
Telephone: (08) 9479 1195
Facsimile: (08) 9479 1190
Website: www.dti.com.au
Auditor
Hall Chadwick WA
283 Rokeby Road
Subiaco WA 6008
Share Registrar
Computershare Investor Services Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford Vic 3067
Bankers
Commonwealth Bank of Australia
300 Murray Street
Perth WA 6000
Stock Exchange Listing
DTI Group Ltd shares are listed on the Australian Securities Exchange (ASX
code: DTI)
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Additional ASX Information
The shareholder information set out below was applicable at 16 August 2024.
Ordinary Share Capital
448,551,414 fully paid ordinary shares (inclusive of DTI Treasury shares) held by 550 individual shareholders. All
issued ordinary shares carry one vote per share and are entitled to dividends.
Distribution of Holders of Equity Securities
Size of Holding
Number of
Shareholders
Percentage of
Shareholding
1 – 1,000
35
0.00
1,001 – 5,000
126
0.08
5,001 – 10,000
79
0.14
10,001 – 100,000
194
1.60
100,001 and over
116
98.18
Total
550
100.00
There were 396 holders with less than a marketable parcel of ordinary shares.
Twenty Largest Registered Shareholders
Rank Name
Number of
Shares
Percentage
of Issued
Shares
%
1
INVIA CUSTODIAN PTY LIMITED
224,085,083
49.96
2
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
110,543,010
24.64
3
INDUCAM NV/C
6,203,078
1.38
4
MS SHARRON SILLS
6,200,099
1.38
5
MONEX BOOM SECURITIES (HK) LTD
6,072,222
1.35
6
BNP PARIBAS NOMINEES PTY LTD
4,938,330
1.10
7
BLUEKARA PTY LTD
4,646,880
1.04
8
LTC GROUP HOLDINGS PTY LTD
4,244,288
0.95
9
EMERALD SHARES PTY LIMITED
3,750,000
0.84
10
ENERVIEW PTY LTD
3,525,927
0.79
11
WOOD STREET PTY LTD
3,034,886
0.68
12
LTC GROUP HOLDINGS PTY LIMITED
2,676,856
0.60
13
LEGRANDE INVESTMENTS PTY LTD
2,508,485
0.56
14
HUMDINGER PTY LTD
2,248,210
0.50
15
PROTEA HOLDINGS PTY LTD
2,200,000
0.49
16
MR BRADFORD PINTO
2,090,000
0.47
17
MR NEIL EDWARD GOODEY
1,928,318
0.43
18
MR MATTHEW DAVID STRACK
1,915,773
0.43
19
MORNINGSTAR AU PTY LTD
1,800,000
0.40
20
FINESHORE PTY LTD
1,696,121
0.38
Total
396,307,556
88.35
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Additional ASX Information
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Substantial Shareholders
The names of substantial shareholders which have notified the Company in accordance with section 671B
of the Corporations Act 2001 are:
Fully Paid Ordinary Shares
Name
Number
%
INVIA CUSTODIAN PTY LIMITED
224,085,083
49.96
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
110,543,010
24.64
Voting Rights
Subject to any special rights or restrictions attached to any class or classes of shares in the Company, at a
general meeting every holder of shares present in person or by proxy, body corporate representative or
attorney has one vote on a show of hands and one vote for each Share held on a poll.
Votes are cast by a show of hands unless a poll is demanded. The chairperson of the meeting or least five
Shareholders entitled to vote on the resolution or shareholders with at least 5 per cent of the votes that
may be cast on the resolution may demand a poll.
Escrowed Shares
The number of shares subject to voluntary escrow is nil (2023: Nil).
On-market Buyback
The Company is not currently conducting an on-market buyback of its shares.
Company Secretary
Mr. Harry Miller
Registered and
Principal Office
31 Affleck Road
Perth Airport WA 6105
Telephone: (08) 9479 1195
Facsimile: (08) 9479 1190
Website: www.dti.com.au
Share Registrar
Computershare Investor Services Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford Vic 3067
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