APPENDIX 4E
FOR THE YEAR ENDED 30 JUNE 2023
(PREVIOUS CORRESPONDING PERIOD BEING THE YEAR ENDED 30 JUNE 2022)
June
2023
$000
June
2022
$000
%
change
Revenue from ordinary activities
108,596
55,818
95%
Profit/(loss) before impairment, interest, taxes, depreciation and
amortisation (EBITDA) from ordinary activities
Loss before tax from ordinary activities
Loss after tax from ordinary activities attributable to shareholders
9,969
(5,286)
(300)
(542)
(17,910)
(13,583)
n/a
n/a
n/a
Net tangible assets
Net tangible assets cents per share
71,827
65,308
9.5 cents
8.7 cents
DIVIDENDS
No dividend has been paid or declared during the period.
AUDITOR’S REPORT
This Appendix 4E is based on the Annual Report for the year ended 30 June 2023 (as attached) which
has been audited by Experience Co Limited’s auditors.
OTHER INFORMATION
The remainder of the information requiring disclosure to comply with the Listing Rule 4.3A is contained
in the Annual Report that follows.
ANNUAL GENERAL MEETING
Experience Co Limited advises that its Annual General Meeting is scheduled to be held on
Thursday 2 November 2023.
Details relating to the meeting will be advised in the Notice of Meeting to be sent to all shareholders
and released to the ASX.
In accordance with ASX listing rules, valid nominations for the position of Director are required to be
lodged at the registered office of the Company by 5pm (Australian Eastern Standard Time) on Thursday,
14 September 2023.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
OUR DIRECTORS
FY23
ANNUAL REPORT
ABN 56 167 320 470
1
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
ABOUT US
OUR DIRECTORS
Experience Co Limited (EXP) aims to be Australia and New Zealand’s most recognised
and respected adventure tourism and leisure business.
We are all about helping you escape the ordinary, with safety and adventure at the core
of what we do.
FY23
Founded in 1999 as a tandem skydiving operation in Wollongong, Australia, the EXP
Group has grown to be a diversified adventure tourism business comprising skydiving,
dive and snorkel, premium and family adventure experiences.
Our experiences are primarily located on Australia’s eastern seaboard from the Great
Ocean Road in Victoria to Tropical North Queensland’s Cape Tribulation, and a Perth
based operation on the western seaboard.
Complemented by our world leading tandem skydive drop zones located in
Queenstown and Wanaka, New Zealand and luxury lodging and walking experiences in
some of Australia's premier wilderness areas, such as Kakadu, Flinders Ranges and
Maria Island, our footprint showcases Australasia’s natural beauty through the lens of
adventure.
2
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONTENTS
OUR DIRECTORS
CHAIRMAN & CEO REPORT
OUR DIRECTORS
DIRECTORS’ REPORT
REMUNERATION REPORT
FINANCIAL STATEMENTS
AUDITOR’S INDEPENDENCE DECLARATION
INDEPENDENT AUDITOR’S REPORT
SHAREHOLDER INFORMATION
CORPORATE DIRECTORY
04
06
08
12
18
46
47
53
55
REEF MAGIC | CAIRNS | AUSTRALIA
NZONE SKYDIVE | QUEENSTOWN | NEW ZEALAND
3
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CHAIRMAN & CEO REPORT
On behalf of the Experience Co Limited Board and
Management, we are pleased to present the Annual Report
for the year ended 30 June 2023.
FY23 was a year of continued recovery from the pandemic.
EXP experienced its strongest trading volumes since the
pandemic delivering underlying EBITDA of $11.3 million with
Tropical North Queensland (TNQ) and New Zealand
standout recovery markets for the Group. Results in the
period were largely driven by the domestic market as the
international markets
in Australia and New Zealand
continued their recovery.
We expect further normalisation of international tourism in
Australia and New Zealand to positively impact volume and
earnings and demonstrate the operating leverage of the
business as demand recovers to pre-pandemic levels.
The Directors have determined that a final dividend for FY23
will not be declared.
YEAR IN REVIEW
The benefit of diversification of the Group’s portfolio was
evident in FY23. The Adventure Experiences segment
performed strongly throughout the period, from its higher
weighting to domestic markets, which for the first financial
year since FY19 were not
impacted by pandemic
restrictions.
The Group achieved a 95% increase in revenue on FY22.
Momentum in the Australia and New Zealand skydiving
segment continued throughout the year achieving its
highest volumes post pandemic, as international markets
contributed more meaningfully as the year progressed. We
were delighted that our New Zealand skydiving operations,
with primarily an international market customer base,
consistently operated at post pandemic highs throughout
the year.
Adventure Experiences delivered a
strong overall
performance achieving 82% YOY increase in revenue and
was the key driver of earnings recovery in the period.
Leading the charge, Reef Unlimited reported increases in
volume of ~66% driven primarily by domestic demand in the
first half. Pleasingly, strong increases in international
markets emerged in Q4.
from a
full year contribution, Treetops
Benefitting
Adventure performed well
increasing YOY volumes.
Adverse weather during the peak holiday periods in 1H 23
and strong international outbound travel in the 2nd half of
the year impacted volume.
The Bamurru Plains expansion project in our Wild Bush
Luxury business was completed in May 2023. A wet season
driven delay in construction impacted Q3 and Q4 revenue,
with booking pace increasing strongly from June.
Management’s discipline
in cost management and
operating efficiencies was maintained throughout the year.
INVESTING IN GROWTH
During the year the Group opened two Treetops
in the
Adventure sites; Treetops Cape Tribulation
Daintree Rainforest and Taronga Zoo in Sydney. These
two sites are in strategically key locations and by year end
were solid contributors to the Treetops Adventure
portfolio.
The opening in May 2023 of the Jabiru Suite expansion at
Bamurru Plains in the Northern Territory offers private
luxury accommodation designed for small groups and
families. Along with an additional Safari suite, the
business is already benefitting from this additional
capacity.
Strategically aligned to our skydiving business, a key to
strengthening pilot recruitment and a pipeline for our
operations, the Group acquired Australian Jump Pilot
Academy Pty Ltd, the only accredited Part 141 Accredited
Jump Pilot Training provider in Australia.
During the period we also acquired the Air Operator’s
Certificate from Thereby Air Pty Ltd particular to the
operation of charter services for our Cessna Caravan fleet.
This provides EXP the opportunity to diversify its aviation
fleet earnings and capitalise on periods of excess
capacity.
Each of these additions to our portfolio were designed to
have us well placed to meet the demand of the emerging
international inbound market.
Investment in our CRM systems and consumer websites
yielded strong results throughout FY23 and further
leveraging our capabilities will continue to drive revenue
and improve the customer experience.
During the year, Management has also focused on re-
engagement with third party distributors in key source
markets, including China, to ensure it is well placed to
secure the anticipated demand led by international
inbound recovery.
PEOPLE AND SAFETY
Safety is a fundamental value at EXP and workplace
health and safety is ingrained in our operations and as
such rigorous safety and safety management initiatives,
reporting and training systems are in place.
People are core to delivering experiences to our
customers and we continue to invest in employee
wellbeing, career development and employee retention
via traineeship, recognition and engagement programs.
in an
In an environment of record low unemployment and
operating
industry highly disrupted by the
pandemic, Management has worked tirelessly on
ensuring we maintain the right resourcing levels and,
most importantly, protect our strong safety culture. We
will continue to focus on people and their role in
maintaining our safety culture as volumes improve.
4
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CHAIRMAN & CEO REPORT
OUTLOOK
The Group’s view on the long-term earnings potential of
the business remains unchanged.
Heading into FY24, the Board and Management remain
committed to our strategy to focus on continued
levels and growth
business
through management execution and disciplined capital
allocation.
improvement to FY19
We continue to monitor the rate of return of international
holiday makers and the performance of domestic
markets. We are buoyed by feedback from offshore trade
partners that demand for Australia and New Zealand
remains strong. We are confident that our growing and
diverse portfolio is well positioned for the opportunity
presented by domestic and international markets.
The re-opening of China in January 2023 and New
Zealand’s recognition as an Approved Destination Status
(ADS) at that time saw volume growth in our New
Zealand business in 2H 23. We are encouraged by
Australia also being recognised as an ADS from 10 August
2023.
ACKNOWLEDGEMENTS
We acknowledge the commitment and hard work of all
our colleagues and thank them for their efforts and
contribution to the business during FY23.
The Board and Management also acknowledges the
support from our shareholders who have invested in the
growth potential of EXP. We also thank our customers,
partners and stakeholders for their ongoing support
throughout the year.
We look forward to building long term value as EXP
continues to execute on its objectives.
Kerry (Bob) East
Chairman
John O’Sullivan
Chief Executive Officer
5
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
OUR DIRECTORS
KERRY (BOB) EAST
Independent Non-Executive Director (Chair of Board)
Appointed as Non-Executive Director on 30 April 2018
Appointed Chair of the Board on 26 October 2018
Chair – Remuneration & Nomination Committee
Member – Audit & Risk Committee
BACKGROUND
Bob has extensive leadership experience including more than 30 years’ in the tourism and hospitality industry.
Prior to joining Experience Co, Bob formed the Mantra Group (Australia’s 2nd largest hospitality business
comprising over 140 hotels across Australia, New Zealand, USA and Asia) which listed on the ASX in 2014. Bob
holds Non-Executive Director Chair roles in Gold Coast Football Club Ltd, Australia Venue Company Pty Ltd,
Leisure Accommodation Collective and Cettire Limited (Chair).
Bob holds an MBA from University New England.
Listed Company Directorships in last 3 years
Cettire Limited (ASX: CTT) Non-Executive Chair
Equity Interests (Direct/Indirect)
2,235,657 Ordinary shares
345,821 Service Rights over Ordinary
ANTHONY BOUCAUT
Founder 1999
Transition to Non-Executive Director 2 September 2019
Prior to transition, CEO of the Group from 1999 to February 2017 & Managing Director of Group to 2019
BACKGROUND
Anthony successfully completed Australia's first Adventure tourism IPO in 2015, listing his business, Skydive The
Beach and acquired several skydiving businesses across Australia and New Zealand.
Anthony has 35 years’ experience in the aviation industry and over 30 years’ experience in skydiving. During his
final years at university, Anthony formed a skydiving business known as Skydive The Beach, a new business model
that brought tandem skydiving to the public in populated areas landing predominantly near or on the beach.
Anthony led the business as Chief Executive Officer from inception in 1999 until 2017 with a break for ill health.
Anthony holds a Bachelor of Science( BSc), is a qualified Aviation Electronics Engineer (ATC), a former Australian
Defence Force member (for 7 years), an approved member of the Australian Parachuting Federation (APF) and a
Aviation CEO approved by the Civil Aviation Safety Authority Australia (CASA).
Anthony is also owner and director of numerous private companies.
Listed Company Directorships in last 3 years
None
Equity Interests (Direct/Indirect)
176,858,814 Fully Paid Ordinary Shares
3,000,000 Options over Ordinary Shares
NEIL CATHIE
Independent Non-Executive Director
Appointed on 16 October 2019
Chair – Audit & Risk Committee
Member – Remuneration & Nomination Committee
BACKGROUND
Neil is currently Non-Executive Chair of Coventry Group Limited, independent Board advisor and Chair at
Middendorp Electric and Non-Executive Director at Bowens Timber & Hardware.
Neil was previously Chief Financial Officer, Company Secretary and GM Finance and IT of Australia’s largest and
most successful plumbing and bathroom distributor Reece Ltd and Non-Executive director of Millennium
Services Group Ltd.
Neil is a Fellow of CPA Australia (FCPA), a graduate member of the Australian Institute of Company Directors
(GAICD) and a Fellow of the Governance Institute of Australia (FGIA).
Listed Company Directorships in last 3 years
Coventry Group Limited (ASX: CYG) Non-Executive Chair
Equity Interests (Direct/Indirect)
891,865 Fully Paid Ordinary Shares
Equity Interests (Direct/Indirect)
685,891 Ordinary shares
6
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
OUR DIRECTORS
MICHELLE COX
Independent Non-Executive Director
Appointed on 1 January 2020
Member – Audit & Risk Committee
Member – Remuneration & Nomination Committee
BACKGROUND
Michelle has been in the travel and tourism sector for over 25 years. She has held executive and
director roles at Bastion Collective, STA Travel and APT Group of Companies. She also held Non-
Executive roles with Tourism Tasmania, Australian Tourism Export Council (NT Chair), Central
Australian Tourism Industry Association (Deputy Chair) and the NT Business Women’s Consultative
Council Advisory Board.
Michelle is currently a Non-Executive Director of BSA Limited.
Michelle is also a Graduate Member of the Australian Institute of Company Directors (GAICD).
Listed Company Directorships in last 3 years
BSA Limited (ASX: BSA) Non-Executive Director
Equity Interests (Direct/Indirect)
Nil
JOHN O’SULLIVAN
Executive Director and Chief Executive Officer
Appointed on 29 July 2019
BACKGROUND
John has over 25 years' experience in the tourism & travel, sport & entertainment and media industries,
having held senior executive roles with Football Federation Australia (Chief Commercial Officer), Events
Queensland (Chief Executive Officer), and Fox Sports (Chief Operating Officer). Prior to joining Experience
Co, John was Managing Director of Tourism Australia where he managed a team of more than 200 staff in
15 locations, including Shanghai, London, Los Angeles and Mumbai, and oversaw a period of record growth
of international visitation and expenditure to Australia.
John is a Non-Executive Director of Luxury Lodges of Australia and a Board Member of Tourism Tropical
North Queensland and Netball Australia. He holds an Executive MBA and is a Graduate Member of the
Australian Institute of Company Directors (GAICD).
Listed Company Directorships in last 3 years
None
Equity Interests (Direct/Indirect)
2,346,209 Ordinary shares
11,892,658 Performance Rights over Ordinary Shares
7
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ REPORT
The directors present their report on the consolidated entity (referred to herein as the Group) consisting of Experience
Co Limited and its controlled entities for the year ended 30 June 2023.
DIRECTORS
The following persons were directors of Experience Co Limited during the year and up to the date of this report:
Kerry (Bob) East
Chair, Independent Non-Executive Director
Anthony Boucaut
Non-Executive Director
Neil Cathie
Independent Non-Executive Director
Michelle Cox
Independent Non-Executive Director
John O’Sullivan
Chief Executive Officer and Executive Director
DIRECTORS’ MEETINGS
The number of Board meetings held (including Board Committee meetings) and the number of meetings attended by
each of the Directors of the Company, during the financial year are listed below:
Board of Directors
Audit & Risk
Management Committee
Remuneration &
Nomination Committee
Held
Attended
Held
Attended Held
Attended
Bob East
Anthony Boucaut
Neil Cathie
Michelle Cox
John O’Sullivan
10
10
10
10
10
10
9
9
10
10
3
NA
3
3
NA
3
NA
3
3
NA
2
NA
2
2
NA
2
NA
2
2
NA
NA = not a member of the relevant Committee
Company Secretary
Fiona van Wyk was appointed Company Secretary on 6 November 2021.
REVIEW OF OPERATIONS
Principal Activities
The principal activities of the Group during the period were the provision of adventure tourism and leisure experiences.
These activities have historically included tandem skydiving in Australia and New Zealand and tours to the Great Barrier
Reef and Daintree region. In 2021, the portfolio was expanded to include nature based walking and lodge experiences
(Wild Bush Luxury) and high rope and zipline aerial adventures (Treetops Adventure).
Group Financial Performance
Revenue
Underlying EBITDA1
Net loss after tax
Net (debt) /cash
30 June
2023
$000
30 June
2022
$000
% change
108,596
11,311
(542)
(6,803)
55,818
(2,370)
(13,583)
3,015
95%
n/a
n/a
n/a
1 Underlying EBITDA is presented including the application of AASB 16. Refer to Note 2 to the audited financial statements.
The Group incurred a net loss after tax of $0.5 million (30 June 2022: $13.6 million loss).
Revenue in the period increased to $108.6 million a 95% increase (30 June 2022: $55.8 million) principally driven by volume
improvement in each of our operating segments. This reflected the least disrupted period since the emergence of the
pandemic in 2020 with the earnings potential of the portfolio evident as volumes increase.
8
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ REPORT
REVIEW OF OPERATIONS (CONTINUED)
Skydiving revenue increased as we saw volumes increase to 54% of pre-pandemic levels by Q423. Our Australian skydiving
operations reported 66k tandem PAX in FY23 (FY22: 41k), as we maintained our market leadership position and were able
to leverage our leading drop zone locations. Pleasingly our NZ skydiving operations reported 23k tandem PAX for the
period and in Q423 alone reported ~50% of pre-pandemic volumes as international volumes returned. Margins continue
to improve as volumes recover.
Adventure Experiences performance reflected the impact of the CY22 acquisitions and the recovery in the Reef Unlimited
vertical, in a period not impacted by Queensland or international border closures. The improved weighting to a domestic
customer base ensured Adventure Experiences was the primary driver of earnings in the period.
While we have seen a resilient domestic consumer during the year despite the impact of weather in the key school holiday
periods, the recovery of international markets has been more gradual. Although a gradual rate of recovery was
anticipated, the Group continues to monitor the improvement in aviation capacity into Australia and New Zealand. The
Group is pleased to observe that following the initial result of pent-up Visiting Friends & Relatives (VFR) related travel in
2H23 the pace of recovery in key target market segments such as holiday makers and education, as well as the aviation
capacity from China, has increased.
BALANCE SHEET
The Group reported net assets of $129.0 million at 30 June 2023 (30 June 2022: $123.9 million).
The Group’s continued balance sheet strategy is to exercise capital discipline and maintain a balance sheet to navigate
the ongoing international recovery, prioritising capital allocation to earnings growth and improving portfolio quality.
INVESTMENT
Acquisitions
During the year the Group completed two strategic bolt-on acquisitions in our Australian Skydiving operation.
In April 2023, the Group acquired Australian Jump Pilot Academy Pty Ltd (AJPA) for $0.4 million. AJPA is the only
accredited Part 141 Accredited Jump Pilot Training provider in Australia and since its inception in 2015 has trained over
400 pilots and conducted over 14,000 flight training movements. This acquisition is strategically aligned to our
skydiving business and will provide a pilot recruitment and training pipeline for the business.
During the period the Group also acquired Thereby Air Pty Ltd for $0.2 million, the holder of an Air Operator’s Certificate
(AOC) particular to the operation of charter services for our Cessna Caravan fleet. This provides potential to diversify our
aviation fleet earnings and better utilise periods of excess capacity.
Bamurru expansion
On 1 May 2023 the Group completed an expansion project at the Wild Bush Luxury property, Bamurru Plains. The
project included an additional three premium suites and common area works in accordance with our long-term
maintenance plan with expenditure totalling $2.3 million. Delays in the project impacted earnings in 2H23, however we
look forward to the improved earnings potential heading into FY24.
Treetops site openings
Consistent with our growth strategy for our Treetops Adventure portfolio, two sites were opened during the year, Cape
Tribulation in the Daintree region and Taronga Zoo Wild Ropes. Along with these new site openings management also
continued to progress the development of additional new site opportunities.
OUTLOOK
The Group’s view on the long-term earnings potential of the business remains unchanged.
The Board and Management remain committed to the FY24 strategy to focus on continued business improvement to
FY19 levels and growth through management execution and disciplined capital allocation.
We continue to monitor the rate of return of international holiday makers and the performance of domestic markets
and are buoyed by the reinstatement of Australia’s Approved Destination Status (ADS) with China from 10 August 2023.
Feedback from offshore trade partners is that demand for Australia and New Zealand remains strong. As volumes
recover, we remain vigilant on maintaining the balance between forward investment in capacity and cost control in an
inflationary environment.
Due to continued uncertainty EXP is not providing earnings guidance for FY24.
9
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ REPORT
DIVIDENDS
No dividend was paid or declared during the period.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, there have been no other significant changes in the Group’s state of affairs during the
year.
SUBSEQUENT EVENTS
There have been no significant subsequent events since the end of the period.
OPTIONS AND RIGHTS
Details on options and rights are set out in the Remuneration Report in relation to KMP.
ENVIRONMENTAL
The Group holds relevant and valid permits under regulatory bodies such as the Great Barrier Reef Marine Park Authority
(GBRMPA), State and National Parks and Queensland Parks and Wildlife Service (QPWS) and the Group carries out its
activities within the guidelines prescribed by such regulators. Compliance with existing environmental regulations and
new regulations are monitored annually. The Group continues to support best practice operations with a focus on
protection of the Great Barrier Reef and conservation and preservation of the environment in which we operate. The
directors are not aware of any material breaches during the period covered by this report.
For the financial year ended 30 June 2023 and as at the date of this report, the Group has not been prosecuted nor incurred
any infringement penalty for environmental incidents.
Respecting the environment in which we operate is a core value of the Group.
CORPORATE GOVERNANCE STATEMENT
The Group's corporate governance statement current as at the date of this report can be found on the Company’s
website (www.experienceco.com).
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings
to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of
those proceedings.
The company was not a party to any such proceedings during the year.
INSURANCE OF OFFICERS AND AUDITOR
The Company insures all past, present and future directors against liabilities for costs and expenses incurred by them in
defending legal proceedings arising from their conduct while acting in the capacity as directors of the company, other
than conduct involving a willful breach of duty in relation to the Company. These contracts prohibit further disclosure of
the nature of the liabilities and the amounts of premiums.
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of
the company or any related entity against a liability incurred by the auditor. During the financial year, the Company has
not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.
NON-AUDIT SERVICES
The Board of Directors, in accordance with advice from the Audit and Risk Committee, are satisfied that the provision of
non-audit services during the year is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001. The Directors are satisfied that the services disclosed below did not compromise the external
auditor’s independence for the following reasons:
•
•
The nature of the non-audit services provided do not materially affect the integrity and objectivity of the
auditor; and
The nature of the services provided does not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting
Professional and Ethical Standards Board.
10
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ REPORT
NON-AUDIT SERVICES
Details of the amounts paid to the auditor of the Company, RSM and its related practices, for audit and non-audit
services provided during the year, are set out in Note 7 to the audited financial statements.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration made in accordance with Section 307C of the Corporations Act 2001 forms
part of this directors’ report.
ROUNDING OF AMOUNTS
The Company is an entity to which ASIC Corporations (Rounding in Financial/Director's Reports) Instrument 2016/191
issued by ASIC relating to rounding off applies and in accordance with that instrument amounts in the Financial
Statements and Directors' Reports have been rounded to the nearest thousand dollars unless otherwise stated.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act
2001.
Signed in accordance with a resolution of directors.
________________________
________________________
John O’Sullivan Kerry (Bob) East
Chief Executive Officer Chairman
Dated: 24 August 2023
11
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
REMUNERATION POLICY AND GOVERNANCE
This Remuneration Report aims to provide shareholders with an understanding of EXP’s remuneration strategy and
outcomes for the year ended 30 June 2023.
This report is presented in accordance with the requirements of the Corporations Act 2001 and its regulations.
Information has been audited as required by Section 308(3C) of the Corporation Act 2001.
Our remuneration approach is focused on appropriately motivating and retaining Senior Executives while ensuring
alignment with delivery against the Group’s strategic goals and shareholder outcomes.
The Remuneration and Nomination Committee reviews Senior Executive remuneration packages annually with
reference to the Group’s financial performance, the performance of the individual and relevant comparable industry
information.
The Group’s remuneration focus and approach aims to ensure the Group’ s remuneration structures:
•
•
•
•
Are aligned to the business needs, values and objectives
Are competitive and comparable to industry and roles
Motivate, attract and retain Senior Executives
Promote long-term sustainable growth in shareholder value
The EXP Employee Incentive Plan (EEIP) is designed to encourage employees to share in the ownership and promote
the long-term success of the Company.
The EEIP is designed with flexibility to grant awards including Service Rights (subject to service based vesting
conditions) and Performance Rights (subject to long-term performance based vesting condition) as part of Short-Term
Incentives (STIs) and Long-Term Incentives (LTIs). Participation in the EEIP is at the Board’s discretion.
At the 2022 Annual General Meeting, EXP received over 91% of “in favour” votes on its remuneration report for the 2022
financial year.
KEY MANAGEMENT PERSONNEL
The Key Management Personnel (KMP) for the Group for FY23, are those persons whose remuneration must be
disclosed in this report and includes Non-Executive Directors, Executive Directors and members of the Senior Executive
who have the authority and responsibility for planning, directing and controlling the activities of the Group.
Directors
Other KMPs
Non-Executive Directors
Bob East, Chair of the Board
Anthony Boucaut
Neil Cathie
Michelle Cox
Executive Director and CEO
John O’Sullivan
Owen Kemp, Chief Financial Officer
NON-EXECUTIVE DIRECTOR REMUNERATION
The Board's policy is to remunerate Non-Executive Directors (NEDs) based on market related fees for time, commitment
and responsibilities as NEDs of the Company. The Remuneration and Nomination Committee determines fees payable
to NEDs and reviews their remuneration regularly, based on duties and accountability and market practice.
Non-Executive Directors receive a director’s fee and fees (inclusive of Superannuation), for chairing or participating on
Board Committees, refer below.
It is Company policy that Non-Executive Directors do not participate in performance-based remuneration
12
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
NON-EXECUTIVE DIRECTOR REMUNERATION (CONTINUED)
Annual Remuneration
Role
Chairman
Non-Executive Directors1
Chair of Committee
Member of Committee
2023
202,000
85,850
15,150
5,050
2022
201,000
85,425
15,075
5,025
1 Anthony Boucaut is remunerated $154,000 per annum for Non-Executive Director duties and $33,000 for aviation services.
The maximum annual aggregate of the Director's fee pool is $750,000 approved by shareholders at the Annual General
Meeting of the company on 27 November 2015. Any change to this aggregate annual amount is required to be
approved by Shareholders.
All Non-Executive Directors enter into a service agreement with the Company in the form of a letter of appointment.
EXECUTIVE KMP AND SENIOR EXECUTIVE REMUNERATION
Remuneration for Executive KMPs and Senior Executives comprise three elements:
•
•
•
Fixed Remuneration: comprising salary, superannuation and benefits aimed at attracting and retaining highly
skilled Senior Executives
Eligibility to participate in the Short Term Incentive Plan (STI): aimed at motivating and rewarding year-on-
year performance in line with agreed key performance indicators
Eligibility to participate in the Long Term Incentive Plan (LTI): aimed at motivating and driving longer-term
performance and value creation through equity ownership
Fixed Remuneration
Composition
Determination
STI Plan
Purpose
Fixed remuneration comprises salary, superannuation and other fixed elements of
remuneration such as vehicle allowances
Fixed remuneration is determined based on market comparisons for similar roles, taking
into account experience and capability to deliver the Group’s operational and financial
performance objectives
Motivate and reward for performance against agreed annual objectives (Key Performance
Indicators (KPIs)) taking into account the Group’s financial and operational objectives
Participation
Executive KMP and Senior Executives
Opportunity
Maximum STI opportunity as a percentage of fixed remuneration up to 65%
for the CEO and CFO and up to 55% for other Senior Executives
Performance Period
Performance is measured from 1 July to 30 June of each year
Performance Measures
STI awards are based on the Group achieving internal Group budgeted EBITDA as well as
individual KPIs covering financial and non-financial related metrics. Assessment and
payment of any incentive is based on the audited financial results for the respective
financial year and remains at the discretion of the EXP Board
Payment
Any STI award may be settled in cash, Performance Rights, Deferred Service Rights (DFRs)
or any combination thereof, subject to Board discretion
13
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
EXECUTIVE KMP AND SENIOR EXECUTIVE REMUNERATION (CONTINUED)
LTI Plan
Purpose
Reward for annual performance using performance metrics that will drive longer term
shareholder value
Participation
Executive KMP and Senior Executives
Opportunity
Executive KMP
In FY22, Performance Rights were granted
as a lump sum1
Performance Measures Executive KMP
Senior Executives
LTI opportunity as a percentage of fixed
remuneration is up to 25% of fixed
remuneration
Senior Executives
Delivery
Performance measures are subject to
Board discretion at time of grant. The
performance measures of the Performance
Rights granted during FY23 are based on
achieving target share price growth and
continued service
Performance measures are subject to
Board discretion at time of grant – The
performance measures of the Performance
Rights granted during FY23 are based on
50% Total Shareholder Return (TSR) and
50% Return on invested Capital (ROIC)
Vesting is conditional upon participants being continuously employed with EXP or an EXP
Group Company until vesting date. Each Performance Right entitles the participant, on
vesting, to one EXP share. Vesting may be satisfied by the allotment of new shares or by
purchasing existing shares on market. Performance Rights that do not vest at the end of
the performance period will lapse
Forfeiture
Any right or interest in the Performance Rights or shares may be forfeited if the Board
determines that a participant:
✓ Has committed an act of fraud; or
✓
Is found to have acted in a manner that the Board considers to be gross
misconduct
Long Term Incentive (LTI)
Aimed at aligning the longer-term interests of Executive KMP with that of shareholders, during the year, the
Nomination and Remuneration Committee considered the structure of EXP’s long-term incentive plan to ensure it is fit
for purpose considering the current priorities of the business, and aligns with shareholder value creation. The Directors
determined that the grant of Performance Rights as a lump sum, with share price growth and service vesting measures,
over a longer period (a total of 4 years), is a more appropriate long-term incentive for Executive KMP, and in particular
better aligns the interests of the Executive KMP with that of shareholders. In its determination, the Board considered
the following:
✓
✓
✓
✓
The contribution to the Group by the Executive KMP, particularly in managing the impacts of the pandemic on the
business
The LTI acts as an Incentive to deliver on the longer-term growth objectives of the business
Continuity of leadership of the business as it emerges from and enters a period of recovery
Ensuring the overall remuneration structures remain competitive and comparable with relevant industry roles.
The grant of Performance Rights in accordance with the Company’s Long Term Incentive Plan to the CEO was
approved at the 2022 Annual General Meeting and the grant to the Executive KMP and other Senior Executives was
made on 22 December 2022.
Executive KMP Employment Conditions
John O’Sullivan
Owen Kemp
Term of Agreement
Notice Period
Termination Entitlements
No definite term
No definite term
6 months
6 months
6 months
6 months
14
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
KMP DETAILS OF COMPENSATION
The following table sets out the components of the current year and comparative year remuneration for each member
of KMP of the group.
Short-term
Post-
employment
Other long-term
Year
Cash
Salary,
leave paid
and fees
Cash
bonus
Share
based
payment
expense1
Total
Short
Term
Super-
annuation
Long-
service &
annual
leave
accrual2
Share
based
payment
expense1
Total
Proportion
performance
related
Group KMP
Bob East
2023
187,858
2022
187,858
Anthony Boucaut 2023
170,000
2022
170,000
Neil Cathie
2023
95,881
2022
95,881
Michelle Cox
2023
86,750
Directors
2022
86,750
2023 540,489
2022
540,489
-
-
-
-
-
-
-
-
-
-
-
-
187,858
19,725
187,858
18,786
- 170,000
17,850
-
-
-
170,000
17,000
95,881
10,068
95,881
- 86,750
-
86,750
9,588
9,109
8,675
- 540,489
56,751
- 540,489
54,049
-
-
-
-
-
-
-
-
-
-
- 207,583
7,763
214,407
-
-
-
-
-
-
187,850
187,000
105,949
105,469
95,859
95,425
- 597,241
7,763
602,301
John O'Sullivan
2023 539,760 123,600
82,529 745,889
28,075
(6,144) 465,694 1,233,514
Owen Kemp
2023 388,627 72,000
62,816 523,443
27,296
9,698
240,115 800,552
2022
514,428
-
163,414 677,842
23,144
31,840
292,376 1,025,202
2022
370,390
-
124,382 494,772
23,057
20,386
198,709 736,924
Executive KMP
2023 928,387 195,600
145,345 1,269,332
2022
884,818
- 287,796
1,172,614
55,371
46,201
3,553 705,809 2,034,066
52,226 491,085
1,762,126
Total
2023 1,468,876 195,600
145,345 1,809,821
112,122
3,553 705,809 2,631,307
2022
1,425,307
- 287,796
1,713,103
100,250
52,226 498,848 2,364,428
-
-
-
-
-
-
-
-
-
-
47%
22%
39%
24%
-
-
n/a
n/a
1 Share based payment expenses are based on the accounting expense recognised in the audited financial statements for the respective period
2 Based on the net movement in the KMP’s provision for annual leave and long service leave for the respective period
KMP EQUITY INTERESTS
Movement in ordinary shareholdings
The movement during the reporting period in the number of ordinary shares in the Company held directly, indirectly or
beneficially, by each KMP, including their related parties, is as follows:
Held at
30 June 2022
Other
purchases
Conversion of
Performance
Rights1
Conversion of
Service Rights2
Bob East
2,235,657
Anthony Boucaut
180,898,814
John O’Sullivan
Neil Cathie
Michelle Cox
Owen Kemp
893,866
891,865
NIL
968,905
-
-
-
-
-
-
-
-
-
-
611,112
841,231
-
-
-
-
680,000
305,729
Disposals
Held at
30 June 2023
-
2,235,657
(4,000,000)
176,898,814
-
-
-
2,346,209
891,865
NIL
1,954,634
1 Vesting of 2/3rds of the 2019 Performance Rights into shares, No cash consideration payable on vesting. Shares were issued to satisfy
vesting.
2 Vesting of Service Rights into shares, No cash consideration payable on vesting. Shares were issued to satisfy vesting.
15
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
KMP EQUITY INTERESTS (CONTINUED)
Options, Service Rights and Performance Rights
Held at
30 June 2022
Granted2
Vested and
Exercised3
Lapsed
Held at Exercise
Price $
30 June 2023
Expiry
Date
Options1
Anthony Boucaut
3,000,000
-
-
-
3,000,000
0.25 9-Feb-25
Service Rights2
CEO Service Rights
John O’Sullivan
Service Rights
John O’Sullivan
Owen Kemp
Performance Rights
LTI Performance Rights
439,560
-
(439,560)
401,671
305,729
(401,671)
(305,729)
-
-
-
-
-
-
John O’Sullivan
3,809,326 9,0000,00
(611,112)
(305,556)
11,892,658
Owen Kemp
3,102,714 3,000,000
(680,000) (340,000)
5,082,714
Nil
n/a
Nil
Nil
n/a
n/a
Nil
Nil
Varies4
Varies4
1 No Options were issued or exercised during the year.
2 During the year the Board approved the grant of 12,000,000 Performance Rights, subject to long term performance conditions. No cash
consideration is payable on vesting or exercise subject to meeting the performance conditions, participants are entitled to receive one
EXP share for each Performance Right upon vesting and exercise. The grant to the CEO was approved at the 2022 Annual General
Meeting.
31,146,960 Service Rights and 1,291,112 Performance Rights vested during the year. No cash consideration was payable on vesting. Shares
were issued to satisfy vesting.
4The expiry dates for the Performance Rights vary from 30 September 2025 to 30 September 2027.
BUSINESS PERFORMANCE
EXP aligns Senior Executive remuneration to objectives aimed at business needs, goals, values, achieving objectives and
creation of shareholder value. Incentives for Senior Executives are largely based on achieving internal Group financial
and non-financial metrics.
The table below shows the Group’s financial performance over the last five years as required by the Corporations Act.
Sales revenue ($'000)
EBITDA ($'000)
Underlying EBITDA ($'000)1
2023
2022
2021
2020
2019
108,596
55,818
44,453
98,875
161,296
9,969
(5,286)
11,311
(2,370)
6,841
6,761
5,049
19,265
9,230
27,183
Net profit/(loss) for the year ($'000)
(542)
(13,583)
(4,301)
(51,413)
(48,258)
Market capitalisation ($'000)
177,473
165,500
166,744
69,476
141,730
Dividends paid ($'000)
Earnings per share (cents)
-
-
-
-
5,558
(0.07)
(1.94)
(0.86)
(7.14)
(8.68)
Share price at financial year end ($)
0.235
0.220
0.300
0.125
0.230
Dividends paid (cents per share)
-
-
-
-
0.01
1 Underlying EBITDA presented above for the financial years ended 30 June 2023, 2022, 2021 and 2020 is for continuing operations and
includes the application of AASB 16 Leases.
16
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
EXECUTIVE KMP PERFORMANCE RIGHTS KEY INPUTS
No. of Performance Rights granted
Grant Date
Share Price at Grant Date
Vesting Date
No. of Performance Rights Vested
No. of Performance Rights Exercised
No. of Performance Rights Lapsed
No. of Performance Rights Outstanding
Share-based payments expense2
FY19
360,360
4-Mar-19
0.355
4-Mar-20
360,360
360,360
-
-
-
FY20
FY21
FY22
FY23
2,736,668
3,356,752
1,618,620
12,000,00
29-Nov-19
16-Nov-20
23-Nov-21
21-Dec-22
0.265
0.26
0.33
15-Sep-22
15-Sep-23
15-Sep-24
0.23
Varies1
1,291,112
1,291,112
1,445,556
-
-
-
-
-
-
-
3,356,752
1,618,620
12,000,000
$22,310
$202,226
$143,890
$333,911
1Vesting dates between 30 September 2024 and 30 September 2026.
2Share-based payments expense represents the expenses recognised in the year attributable to Performance Rights on issue.
TRANSACTIONS WITH RELATED PARTIES
Apart from those transactions disclosed in this Remuneration Report relating to equity and compensation, other
transactions with related parties are set out in further detail in in Note 23 to the Financial Report.
17
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
FINANCIAL REPORT
FINANCIAL STATEMENTS
For the year ended 30 June 2023
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
ARKABA | FLINDERS RANGES | AUSTRALIA
18
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Notes
30 June 2023
30 June 2022
$000
$000
Sales revenue
Cost of sales
Gross profit
Other income
Employee expenses
Depreciation and amortisation expenses
Impairment of property, plant and equipment
Reversal of impairment of property, plant and equipment
Marketing and advertising expenses
Repairs and maintenance expenses
Operating expenses
Restructure and other significant expenses (net)
Loss on disposal of assets
Gain/(loss) before financial income and taxes
Net finance costs
Loss before income tax
Income tax (expense)/benefit
Loss for the year
Items that will be reclassified subsequently to profit or loss when
specific conditions are met:
Revaluation of property, plant and equipment, net of tax
Exchange differences on translating foreign operations, net of
income tax
Other comprehensive income for the year
Total comprehensive income/(loss) for the year
Earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
The accompanying notes form part of these financial statements.
3
13
13
4
5
6
13
8
8
108,596
(65,541)
43,055
2,736
(18,391)
(11,706)
(591)
3,280
(3,340)
(2,480)
(11,396)
53
(268)
952
(1,252)
(300)
(242)
(542)
4,466
(8)
4,458
55,818
(34,946)
20,872
4,893
(16,630)
(9,817)
(1,623)
-
(2,300)
(1,457)
(9,032)
(1,626)
(6)
(16,726)
(1,184)
(17,910)
4,327
(13,583)
-
35
35
3,916
(13,548)
(0.07)
(0.07)
(1.94)
(1.94)
19
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at
30 June 2023
$000
As at
30 June 2022
$000
Notes
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Asset under construction
Right-of-use assets
Deferred tax assets
Intangible assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Employee benefits
Deferred Consideration
Contract liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Employee benefits
Provisions
Deferred Consideration
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Accumulated losses
Reserves
Total equity
The accompanying notes form part of these financial statements.
9
10
11
13
12
6
14
15
16
12
16
12
18
19
8,587
3,612
4,870
2,923
19,992
94,440
2,281
15,828
11,687
46,568
170,804
190,796
10,893
-
4,346
3,333
2,195
11,733
32,500
9,210
18,779
196
72
1,075
29,332
61,832
128,964
232,218
(106,864)
3,610
128,964
18,317
2,625
4,514
2,715
28,171
82,435
1,130
17,406
13,747
45,805
160,523
188,694
10,160
902
7,263
2,536
2,690
13,901
37,452
8,274
17,208
298
541
1,000
27,321
64,773
123,921
231,398
(106,322)
(1,155)
123,921
20
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
The accompanying notes form part of these financial statements.
Issued
Capital
$000
Accumulated
Losses
$000
Asset
Revaluation
Reserve
$000
Common
Control
Reserve
$000
Share
Option
Reserve
$000
Note
Foreign
Currency
Translation
Reserve
$000
Balance at 1 July 2021
Comprehensive income
Loss for the year
Other comprehensive loss for the
year
Total comprehensive loss for
the year
Transactions with owners, in
their capacity as owners, and
other transfers
Issued share capital
Transfer to Issued capital
Options issued during the year
Total transactions with owners
and other transfers
168,547
(92,739)
-
-
-
(13,583)
-
(13,583)
18
17
62,452
399
-
62,851
-
-
-
-
1,347
-
-
(4,171)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,212
(245)
Total
$000
73,951
-
(13,583)
35
-
35
35
(13,548)
-
-
-
-
(399)
1,066
667
-
-
-
-
62,452
-
1,066
63,518
Balance at 30 June 2022
231,398
(106,322)
1,347
(4,171)
1,879
(210)
123,921
Balance at 1 July 2022
Comprehensive income
Loss for the year
Other comprehensive income for
the year
Total comprehensive loss for
the year
Transactions with owners, in
their capacity as owners
Issued share capital
Transfer to Issued capital
Options issued during the year
Total transactions with owners
and other transfers
18
17
231,398
(106,322)
1,347
(4,171)
1,879
(210)
123,921
-
-
(542)
-
4,466
(542)
4,466
-
820
-
820
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(542)
(8)
4,458
(8)
3,916
-
(820)
1,127
307
-
-
-
-
-
-
1,127
1,127
Balance at 30 June 2023
232,218
(106,864)
5,813
(4,171)
2,186
(218)
128,964
21
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF CASH FLOW
Operating activities
Receipts from customers (GST inclusive)
Interest received
Payments to suppliers and employees (GST inclusive)
Finance costs
Income tax refund/payment
Net cash provided by operating activities
Investing activities
Sale of property, plant and equipment
Proceeds from grant contribution to assets under construction
Payments for assets under construction
Purchase of property, plant and equipment
Payments for purchase of businesses
Note
30 June 2023 30 June 2022
$000
$000
116,300
128
(105,341)
(1,366)
-
9,721
744
-
(2,280)
(12,764)
(400)
64,066
6
(60,436)
(615)
-
3,021
(205)
300
(3,305)
(7,656)
(36,083)
Net cash (used in)/provided by investing activities
(14,700)
(46,949)
Financing activities
Issued shares
Proceeds from borrowings
Repayment of borrowings
Repayment of principal component of leases liabilities
Net cash (used in)/provided by financing activities
Net (decrease)/increase in cash held
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period
The accompanying notes form part of these financial statement
9
-
2,323
(2,203)
(4,871)
(4,751)
(9,730)
18,317
8,587
52,292
3,528
(1,943)
(4,953)
48,924
4,996
13,321
18,317
22
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
The financial report of Experience Co Limited (the Company) and its controlled entities (collectively, the Group) for the
financial year ended 30 June 2023 was authorised for issue in accordance with the resolution of the directors.
Experience Co Limited is listed on the Australian Securities Exchange, incorporated and domiciled in Australia and its
shares are publicly traded. The registered office is located at Level 5, 89 York Street, Sydney, New South Wales, Australia.
BASIS OF PREPARATION
This financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001,
Australian Accounting Standards (AAS) and Interpretations of the Australian Accounting Standards Board (AASB). The
consolidated financial report complies with the International Financial Reporting Standards (IFRS) and interpretations
adopted by the International Accounting Standards Board.
All amounts are presented in Australian dollars, unless otherwise noted.
The financial report is prepared on a historical cost basis except for the revaluation of financial assets and liabilities and a
class of property plant and equipment which are stated at fair value.
The company is of a kind referred to in Corporations Instruments 2016/191 issued by ASIC, relating to rounding off.
Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest
thousand dollars, or in certain cases, the nearest dollar.
In accordance with the Corporations Act 2001, these financial statements present the results of the Group only.
Supplementary information about the parent entity is disclosed in Note 27.
The accounting policies adopted in the preparation of the financial report are consistent with those followed in the
preparation of the Group’s annual consolidated financial statements for the year ended 30 June 2022, except for the
adoption of new standards effective as of 1 July 2022. Certain comparative information has been reclassified to conform
with the presentation of the current year. The Group has not early adopted any other standard, interpretation or
amendment that has been issued but is not yet effective.
NEW ACCOUNTING STANDARDS FOR APPLICATION IN FUTURE PERIODS
New AAS and Interpretations not yet mandatory or early adopted AAS that have recently been issued or amended but
are not yet mandatory, have not been early adopted by the Group for the reporting period ended 30 June 2023. The
Group does not expect that new or amended AAS and Interpretations would have a material impact.
CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING (CONCEPTUAL FRAMEWORK)
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework
contains new definition and recognition criteria as well as new guidance on measurement that affects several
Accounting Standards, but it has not had a material impact on the consolidated entity's financial statements.
GOING CONCERN
In preparing the financial report, the Directors have made an assessment of the ability of the Group to continue as a
going concern, which contemplates the continuity of business operations, realisation of assets and settlement of
liabilities in the ordinary course of business.
The Group incurred a loss before tax of $0.3 million for the year ended 30 June 2023 (30 June 2022: $17.9 million loss
before tax) as market conditions continued to improve following the impact of the pandemic and the adverse impacts
of the La Nina weather cycle. The Group had net current liabilities of $12,508,000 (30 June 2022: $9,281,000).
For the year ended 30 June 2023:
•
•
•
The Group has a cash and cash equivalents balance of $8,587,000 at 30 June 2023 (30 June 2022: $18,317,000) and
net assets of $128,964,000 (30 June 2022: $123,921,000).
The Group reported net cash inflows from operating activities of $9,721,000 (30 June 2022: $3,021,000 net cash
inflow).
The Group continues to work with its lender, National Australia Bank (‘NAB’), including meeting all covenants
through the year and extending the maturity of its corporate debt facility to 31 March 2025.
The Directors have assessed projected trading results and cash flows for the Group. These projections are necessarily
based on best-estimate assumptions that are subject to influences and events outside of the control of the Group.
At any time the Group has the ability to respond to trading conditions and make adjustments to business operations,
raise additional funds from shareholders or other parties or divest assets to raise additional funds.
After making enquiries and considering the matters set out above, the Directors have a reasonable expectation that the
Group will have adequate resources to continue to meet its obligations as they fall due. For these reasons, the Directors
continue to adopt the going concern basis in preparing the financial report.
23
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
BASIS OF CONSOLIDATION
CONTROLLED ENTITIES
Controlled entities are entities controlled by the Company. Control exists when the Company is exposed to, or has right
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over
the entity.
NON-CONTROLLING INTERESTS (NCI)
NCI are initially measured at their proportionate share of the acquiree’s identifiable net assets as at acquisition.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions.
BUSINESS COMBINATIONS
Business combinations are accounted for applying the acquisition method as at acquisition date, unless it is a
combination involving entities or businesses under common control.
When measuring consideration, any asset or liability arising from a contingent consideration arrangement is included.
Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its subsequent
settlement is accounted for within equity. Contingent consideration that is an asset or liability is remeasured at each
reporting period to fair value, recognising any change in fair value in profit or loss.
Transaction costs, other than those associated with the issue of a financial instrument are recognised as expenses as
incurred.
Goodwill at acquisition date is measured based on the excess of the sum of:
•
•
•
over the acquisition date fair value of identifiable net assets acquired.
the fair value of consideration transferred;
any non-controlling interest determined under either the full goodwill or proportionate interest method; and
the fair value of any previously held equity interest
INTERCOMPANY TRANSACTIONS
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
the policies adopted by the consolidated entity.
LOSS OF CONTROL
In the event the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any
related non controlling interest and other components of equity. Any resulting gain or loss is recognised in profit or loss.
Any interest retained in the previously controlled subsidiary is measured at fair value as at the date control ceased.
FOREIGN CURRENCY
TRANSACTIONS AND BALANCES
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of
the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items
measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary
items measured at fair value are reported at the exchange rate at the date when fair values were determined. Foreign
currency differences arising on translation are recognised in profit or loss.
FOREIGN OPERATIONS
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition are
translated to Australian dollars at exchange rates at the reporting date. The revenue and expenses of foreign operations
are translated to Australian dollars at rates approximating the foreign exchange rates at the dates of the transactions.
Foreign currency differences are recognised in other comprehensive income and presented in the foreign currency
translation reserve in equity.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short-term highly
liquid investments with original maturities of 30 days or less.
TRADE AND OTHER RECEIVABLES
Trade receivables and other receivables are initially recognised at fair value and subsequently measured at amortised
cost less any allowance for expected credit losses.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days
overdue. Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
24
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
INVENTORIES
Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a weighted or specific
item basis. An impairment allowance is made for obsolete, damaged and slow-moving inventories.
PROPERTY, PLANT AND EQUIPMENT
Each class of property, plant and equipment is stated at cost less accumulated depreciation and any accumulated
impairment loss, except for aircraft.
Aircraft assets are measured under the revaluation model and accounted for at their fair value, being the amount for
which the asset could be exchanged between knowledgeable willing parties in an arm’s length transaction, based on
periodic valuations by external independent valuers or director valuations, less subsequent depreciation.
SUBSEQUENT EXPENDITURE
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the
expenditure will flow to the Group. Maintenance costs are expenses as incurred.
DEPRECIATION
Each asset, except for aircraft engine assets, is depreciated on a straight-line basis over the estimated useful life from
the date of acquisition, or for internally constructed assets from the time the asset is completed and available for use.
Aircraft engines are depreciated based on operating hours over the estimated useful life being time before overhaul,
which is determined by manufacturer specifications and regulatory requirements.
The depreciation rate and residual value estimates for each asset class are:
ASSET CLASS
Aircraft frames
Aircraft engines
Motor vehicles
Buildings
Leasehold improvements
Office equipment
Vessels and Pontoons
INTANGIBLE ASSETS
GOODWILL
DEPRECIATION RATE
5%
Operating hours
10%
2.5%
2.5%
25%
3% - 20%
RESIDUAL VALUE (%)
Specific to aircraft
Specific to aircraft
0%
0%
0%
0%
0% - 30%
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. Subsequent to acquisition,
goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it
might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity sold.
COMPUTER SOFTWARE
Computer software comprises licence costs and direct costs incurred in developing and/or preparing for the operation
of that software. Computer software is measured at cost less accumulated amortisation and impairment losses.
OTHER INTANGIBLE ASSETS
Trademarks, customer relationships and leases and licences acquired in a business combination are recognised at fair
value as at acquisition date. Trademarks have an indefinite useful life and are measured at cost less accumulated
impairment losses. Customer relationships, leases and licences have a finite useful life and are measured at cost less
accumulated amortisation and any accumulated impairment losses.
AMORTISATION
Except for goodwill and trademarks, intangible assets are amortised on a straight-line basis over their estimated useful
life. The estimated useful life for customer relationships is 10 to 20 years, leases and licenses 4 to 20 years and software 3
to 5 years.
FINANCIAL INSTRUMENTS
The accounting policies for the Group’s financial instruments are explained in Note 20.
IMPAIRMENT OF ASSETS
FINANCIAL
Financial assets are tested for impairment at each financial year end.
25
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
IMPAIRMENT OF ASSETS (CONTINUED)
NON-FINANCIAL
Goodwill and intangible assets that have an indefinite useful life are tested for impairment annually or as otherwise
required under AASB 136. Other assets are tested for impairment whenever events or circumstances arise that indicate
that the carrying amount of the asset may be impaired. An impairment loss is recognised where the carrying amount
of the asset exceeds the recoverable amount. The recoverable amount of an asset is defined as the higher the fair value
less costs of disposal and value in use.
TRADE AND OTHER PAYABLES
Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at
the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within
30 days of recognition of the liability.
EMPLOYEE BENEFITS
A provision is made for the Group’s liability for employee benefits arising from the services rendered by employees to
balance date. These benefits include wages and salaries, annual leave and long service leave. Sick leave is non-vesting
and no provision for sick leave has been recognised.
Liabilities for wages and salaries, including non-monetary benefits, annual and long service leave that are expected to
be settled wholly within 12 months after the end of the period are measured at the amounts expected to be paid when
the liabilities are settled. The liabilities are presented as current employee benefit obligations in the statement of
financial position.
The group also has liabilities for long service leave and annual leave that are not expected to be settled wholly within 12
months after the end of the period. These obligations are therefore measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of the reporting period, applying a
company probability factor based on the probability the employee will become entitled to long service leave.
SHARED BASED PAYMENTS/EQUITY SETTLED COMPENSATION
The Group operates a share-based employee incentive program. Share-based payments to employees are measured at
the fair value of the instruments issued and amortised over the vesting periods.
PROVISIONS
Provisions are recognised when the Group has a legal or constructive obligation as a result of a past event for which it is
probable an outflow of economic benefits will be required to settle the obligation.
CONTRACT LIABILITIES
Contract liabilities represent the Group ‘s obligation to transfer goods or services to a Group customer and are
recognised when a customer exchanges consideration or when the Group recognises a receivable to reflect its
unconditional right to consideration in advance of the Group transferring goods or services to the customer.
LEASES
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or
before the commencement date net of any lease incentives received.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Right-of use assets are subject to impairment or adjusted for any
remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
REVENUE RECOGNITION
REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in
exchange for transferring goods or services to a customer. For each contract with a customer, the Group:
•
•
•
•
identifies the contract with a customer;
identifies the performance obligations in the contract;
determines the transaction price based on separate performance obligations; and
recognises revenue when or as each performance obligation is satisfied and, in the case of unused vouchers or
tickets, an assessment of probability that the performance obligation will need to be satisfied.
26
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
REVENUE RECOGNITION (CONTINUED)
SALE OF GOODS
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods,
which is generally at the time of delivery.
RENTAL INCOME
Rental income is recognised on a straight-line basis over the period of the lease term so as to reflect a constant periodic
rate of return on the net investment.
FINANCE INCOME AND FINANCE COSTS
Finance income comprises interest income on loan advances and funds invested. Finance income is recognised as it
accrues in profit or loss, using the effective interest method.
Finance costs comprise interest expense on borrowings and leases.
Borrowing costs that are not directly attributable to an acquisition, construction or production of a qualifying asset are
recognised in profit or loss using the effective interest method.
Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either finance
income or finance costs.
INCOME TAX
TAX CONSOLIDATION – AUSTRALIA
Experience Co Limited and its Australian wholly-owned subsidiaries have formed an income tax consolidated group
under tax consolidation legislation. Each entity within the group recognises its own current and deferred tax assets and
liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to allocation. Current tax liabilities/assets
and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are immediately transferred to
the head entity.
The Group notified the Australian Taxation Office (ATO) that it had formed an income tax consolidated group to apply
from 1 July 2014. The tax consolidated group has also entered into a tax funding arrangement whereby each company
in the Group contributes to the income tax payable by the Group in proportion to their contribution to the Group’s
taxable income. Differences between amounts of net assets and liabilities derecognised and the net amounts
recognised pursuant to their funding arrangement are recognised as either a contribution by, or distribution to, the
head entity.
TAX CONSOLIDATION – NEW ZEALAND
Skydive (New Zealand) Limited and its New Zealand wholly-owned subsidiaries have formed an income tax
consolidated group under tax consolidation legislation. Each entity within the group recognises its own current and
deferred tax assets and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to allocation.
Current tax liabilities/assets and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are
immediately transferred to the head entity.
The New Zealand group of companies notified the Inland Revenue Department (IRD) that it had formed an income tax
consolidated group to apply from 30 October 2015. The New Zealand tax consolidated group has also entered into a tax
funding arrangement whereby each company in the Group contributes to the income tax payable by the Group in
proportion to their contribution to the Group’s taxable income. Differences between amounts of net assets and
liabilities derecognised and the net amounts recognised pursuant to their funding arrangement are recognised as
either a contribution by, or distribution to, the head entity
GOODS AND SERVICES TAX
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is
not recoverable from the relevant tax authority.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the relevant tax authority is included with other receivables or payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to, the relevant tax authority are presented as operating cash flows
included in receipts from customers or payments to suppliers.
GOVERNMENT GRANTS
Government grant income is recognised when the obligations under the relevant agreement have been satisfied.
ACCOUNTING ESTIMATES AND JUDGEMENTS
In preparing these consolidated financial statements, management has made judgments, estimates and assumptions
that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and
expense. The estimates and associated assumptions are based on historical experience and on factors it believes to be
reasonable under the circumstances, the results of which form the basis of the reported amounts that are not readily
apparent from other sources. Actual results may differ from these estimates under different assumptions and
conditions.
27
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
The judgements, estimates and assumptions that have a significant effect on the amounts recognised in the financial
statements are:
•
•
•
•
•
•
impairment of property, plant and equipment and intangibles – refer to Note 13 and Note 14.
useful life and residual value of property, plant and equipment and finite life intangible assets – refer Property,
Plant & Equipment above.
fair value for aircraft assets and fair value hierarchy- refer to Note 13 and 21.
current and deferred tax assets – refer to Note 6.
lease arrangements beyond the current lease contract period – For a number of land and buildings leases as well
as vessel’s berth leases which are rolling on a month-to-month basis, the Group has made assumptions around the
likelihood of re-signing these leases and estimated terms of agreement.
contract liabilities, or deferred income, for unused vouchers and tickets is estimated based on historical results and
industry trends.
NOTE 2 OPERATING SEGMENTS
IDENTIFICATION OF REPORTABLE OPERATING SEGMENTS
The Group has identified the following reportable operational segments based on a combination of factors including
products and services, geographical areas and regulatory environment:
•
•
•
Skydiving: comprises tandem skydive and related products, with ancillary aircraft maintenance activities.
Adventure Experiences: Includes Reef Unlimited with reef-based dive and snorkel experiences and rainforest
tours operating out of Cairns and Port Douglas; Treetops Adventure Australia’s leading operator of aerial adventure
experiences and Wild Bush Luxury comprising luxury lodge and premium walking experiences in South Australia,
Tasmania and the Northern Territory.
Corporate: comprises the centralised management and business administration services.
These operating segments are based on the internal reports that are reviewed and used by the CEO in determining the
allocation of resources. The CEO reviews earnings before interest, taxes, depreciation and amortisation (EBITDA) at the
segment level. The accounting policies adopted for internal reporting to the CEO are consistent with those adopted in
the financial statements.
28
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2 OPERATING SEGMENTS (CONTINUED)
OPERATING SEGMENT INFORMATION
30 June 2023
Sales to external customers at a point in time
Sales revenue
Other income
Total segment revenue
EBITDA
Restructure and other significant expenses
Share-based payments
Net gain/loss on sale of assets
Underlying EBITDA
EBITDA
Depreciation and amortisation
Segment profit/(loss) before financial income and taxes
Skydiving
Adventure
Experiences
Corporate
Group
$000
47,982
47,982
494
48,476
3,459
363
-
273
4,095
3,459
(3,945)
(486)
$000
60,597
60,597
2,192
62,789
13,414
59
-
(5)
13,468
13,414
(6,952)
6,462
$000
17
17
50
67
(6,904)
(475)
1,127
-
(6,252)
(6,904)
(809)
(7,713)
$000
108,596
108,596
2,736
111,332
9,969
(53)
1,127
268
11,311
9,969
(11,706)
(1,737)
Total assets as at 30 June 2023
Total liabilities as at 30 June 2023
45,798
(26,909)
101,074
(20,757)
43,924
(14,166)
190,796
(61,832)
30 June 2022
Sales to external customers at a point in time
Sales revenue
Other income
Total segment revenue
EBITDA
Restructure and other significant expenses
Share-based payments
Net gain/loss on sale of assets
Queensland Growing Tourism Infrastructure Program
Underlying EBITDA
EBITDA
Depreciation and amortisation
Segment profit/(loss) before financial income and taxes
22,555
22,555
1,639
24,194
(2,107)
113
-
(114)
-
(2,108)
(2,107)
(3,164)
(5,271)
33,208
33,208
2,843
36,051
5,751
157
-
5
(300)
5,613
5,751
(5,827)
(76)
55
55
411
466
(8,930)
1,356
1,584
115
-
(5,875)
(8,930)
(826)
(9,756)
55,818
55,818
4,893
60,711
(5,286)
1,626
1,584
6
(300)
(2,370)
(5,286)
(9,817)
(15,103)
Total assets as at 30 June 2022
Total liabilities as at 30 June 2022
61,306
(26,876)
101,603
(22,224)
25,785
(15,673)
188,694
(64,773)
Finance costs and finance income are not allocated to individual segments as these are managed on a group basis.
Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to individual segments as these
are also managed on a group basis.
Underlying EBITDA has been presented on a AASB 16 Leases basis, whereby relevant lease expenses are recognised
‘below the line’ in depreciation and amortisation and interest expense.
GEOGRAPHICAL DISCLOSURES
Revenue
30 June 2023
30 June 2022
Australia
New Zealand
Total
95,309
52,004
13,287
3,814
108,596
55,818
29
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2 OPERATING SEGMENTS (CONTINUED)
A reconciliation of profit / (loss) to Underlying EBITDA is as follows:
Loss for the year
Finance costs
Depreciation and amortisation
Impairment
Income tax benefit/(expense)
EBITDA
Restructure and other significant expenses (see note 4)
Share-based payments
Profit on Disposal of Assets
Queensland Growing Tourism Infrastructure Program
Underlying EBITDA
NOTE 3 OTHER INCOME
Wages subsidy income
Training & Education Grants
Queensland Major Tourism Hardship and Growing Tourism Grants
New Zealand Strategic Tourism Asset Protection Program
Diesel Fuel Rebate
Insurance Recoveries
Environmental Projects and Other Marine Subsidies
Sales of Internally Generated Assets
Other
30 June 2023
30 June 2022
$000
(542)
1,252
11,706
(2,689)
242
9,969
(53)
1,127
268
-
11,311
30 June 2023
$000
-
383
-
-
721
377
282
428
545
2,736
$000
(13,583)
1,184
9,817
1,623
(4,327)
(5,286)
1,626
1,584
6
(300)
(2,370)
30 June 2022
$000
243
-
2,300
266
404
205
1,156
-
319
4,893
NOTE 4 RESTRUCTURE AND OTHER SIGNIFICANT EXPENSES
Restructure and other significant expenses in the period included a number of non-recurring items, principally due to
acquisition-related transaction costs and restructuring costs.
Transaction costs
Restructuring costs
Other (net)
Restructure and other significant expenses
NOTE 5 NET FINANCE COSTS
Interest income
Amortisation borrowing costs
Interest expense - borrowings
Interest expense - asset finance leases
Interest expense - other leases
Other
Finance expense
Net finance costs
30 June 2023
30 June 2022
$000
-
356
(409)
(53)
$000
1,207
450
(31)
1,626
30 June 2023
30 June 2022
$000
128
(13)
(382)
(369)
(603)
(13)
(1,380)
(1,252)
$000
6
(21)
(189)
(356)
(574)
(50)
(1,190)
(1,184)
30
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 6 INCOME TAXES
COMPONENTS OF INCOME TAX EXPENSE/(BENEFIT)
Current tax
Deferred tax
Under provision/(overprovision) prior year
Income tax expense/(benefit)
RECONCILIATION OF EFFECTIVE TAX RATE
Loss before income tax
Income tax using the Company’s tax rate of 30%
Non-allowable items
Non-deductible impairment
Abnormal items
Recognition of other deferred tax balances
Deductible acquisition costs
Under and Over Provision
Effect of lower tax rate attributable to foreign controlled entities
Income tax expense/(benefit)
RECOGNISED DEFERRED TAX ASSETS AND LIABILITIES
30 June 2023
$000
30 June 2022
$000
-
87
155
242
-
(4,780)
453
(4,327)
30 June 2023
$000
(300)
30 June 2022
$000
(17,910)
(101)
378
-
(152)
(92)
64
155
(10)
242
(5,373)
574
487
136
(832)
100
453
128
(4,327)
Assets
Liabilities
30 June 2023
$000
30 June 2022
$000
30 June 2023
$000
30 June 2022
$000
Property, Plant & Equipment
Intangible assets
Lease Liability
Provisions
Capital Raising Costs
Unutilised tax losses
Other
Tax assets/(liabilities)
Set off
Deferred tax asset
87
328
2,487
585
17,105
20,592
(8,905)
11,687
-
1,688
192
2,199
621
13,018
257
17,975
(4,228)
13,747
(8,891)
-
-
-
-
(14)
(8,905)
(4,228)
-
-
-
-
-
(4,228)
The Australian tax consolidated group has unutilised carried forward tax losses of $55,564,727 (30 June 2022:
$43,549,670) which have been recognised as deferred tax assets which are expected to be utilised in years 1 to 5 in the
projections used in the impairment disclosures set out in Note 14.
TAX EFFECTS RELATING TO EACH COMPONENT OF OTHER COMPREHENSIVE INCOME
Consolidated Group
Revaluation of property, plant
and equipment
Exchange differences on
translating foreign operations
2023
Before-tax
amount
$000
Tax
(expense)
benefit
$000
2022
Net-of-tax
amount
$000
Before-tax
amount
$000
Tax
(expense)
benefit
$000
Net-of-tax
amount
$000
6,354
(1,888)
4,466
(11)
3
(8)
6,343
(1,885)
4,458
-
35
35
-
(11)
(11)
-
24
24
31
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 7 AUDITOR’S REMUNERATION
Audit services
Taxation services
NOTE 8 EARNINGS PER SHARE
Weighted average of shares in year used in basic earnings per share
Weighted average of dilutive options and rights outstanding
Weighted average of ordinary shares in year used in calculating
dilutive earnings per share
Earnings used in basic and diluted earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
NOTE 9 CASH & CASH EQUIVALENTS
Cash at bank and on hand
Short term cash deposits
Cash and cash equivalents
30 June 2023
30 June 2022
$
170,000
140,420
310,420
$
160,000
122,200
282,200
30 June 2023
$
753,696,122
15,480,823
30 June 2022
$
700,695,053
12,323,646
769,176,946
713,018,698
(542)
(0.07)
(0.07)
(13,583)
(1.94)
(1.94)
30 June 2023
$000
30 June 2022
$000
8,536
51
8,587
18,272
45
18,317
The effective interest rate on short-term deposits was 0.79% (30 June 2022: 0.61%).
NOTE 10 TRADE AND OTHER RECEIVABLES
Trade receivables
Allowance for expected credit loss
Other receivables
Trade and other receivables
NOTE 11 OTHER ASSETS
Prepayments
Other current assets
Other assets
30 June 2023
$000
30 June 2022
$000
3,191
(190)
3,001
611
3,612
2,256
(168)
2,088
537
2,625
30 June 2023
$000
30 June 2022
$000
2,219
704
2,923
2,175
540
2,715
32
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 12 RIGHT OF USE ASSETS AND LEASE LIABILITIES
AMOUNTS RECOGNISED IN THE PROFIT OR LOSS
Depreciation charge on ROUA
Interest expense
Expense related to out-of-scope leases
30 June 2023
30 June 2022
$000
(2,715)
(602)
(1,158)
$000
(2,496)
(574)
(615)
The weighted average of the lessee’s incremental borrowing rate including the date of initial application of AASB 16 as
well as subsequent additions is 3.46%.
RIGHT OF USE ASSETS
Carrying amount at 30 June 2021
Additions: New Leases
Leases acquired through business
combinations
Modifications and re-assessments of leases
Less: Depreciation expense
Carrying amount at 30 June 2022
Additions: New Leases
Modifications and re-assessments of leases
Less: Depreciation expense
Carrying amount at 30 June 2023
Land &
buildings
$000
8,519
1,276
7,295
(436)
(1,981)
14,673
1,084
54
(2,285)
13,526
Marine Leases
$000
3,158
-
-
(29)
(413)
2,716
-
-
(413)
2,303
Office
Supplies
$000
64
-
-
(25)
(21)
18
-
-
(18)
0
Total
$000
11,741
1,276
7,295
(490)
(2,416)
17,406
1,084
54
(2,716)
15,828
Included in lease liabilities are amounts in relation to asset finance on specific assets. Asset finance facility obligations at
30 June 2023 totalled $6.2 million (30 June 2022: $6.1 million).
NOTE 13 PROPERTY PLANT & EQUIPMENT
Land &
Buildings
$000
Plant &
Equipment
$000
Leasehold
Improv.
$000
Aircraft
$000
Motor
Vehicles
$000
Office
Equipment
$000
Vessels
Total
$000
$000
Cost 1 July 2021
Accumulated depreciation
Carrying amount 1 July 2021
1,696
(57)
1,639
11,682
(6,622)
5,060
3,694
(872)
33,114
(1,245)
3,709
(2,130)
1,837 31,292
(1,461) (9,797)
87,024
(22,184)
2,822 31,869
1,579
376 21,495
64,840
Additions
Depreciation expense
Disposals
Impairment
Movement in foreign exchange
Transfer between asset class
Transfer from asset under
construction
PPE acquired through business
combinations
Cost 30 June 2022
Accumulated depreciation
Carrying amount 30 June 2022
172
(153)
-
-
(6)
474
768
(1,759)
(61)
-
(5)
84
-
276
934
(282)
-
-
(53)
-
2,565
(1,190)
(4)
-
(155)
2,274
239
(347)
(77)
-
(9)
41
101
149
(204)
-
-
(2)
-
2,143
(2,963)
-
(1,623)
175
-
6,970
(6,898)
(142)
(1,623)
(55)
2,873
6
8,023
8,406
1,165
5,381
749
-
405
210
156
8,066
3,579
(287)
3,292
17,938
(8,195)
9,743
5,317 37,782
(1,149) (2,424)
4,168 35,358
4,321
(2,389)
1,932
2,190 40,165
(1,654) (12,759)
536 27,406
111,292
(28,857)
82,435
33
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 13 PROPERTY PLANT & EQUIPMENT (CONTINUED)
Cost 1 July 2022
Accumulated depreciation
Carrying amount 1 July 2022
Additions
Depreciation expense
Disposals
Revaluations
Impairment
Reversal of prior period
impairment
Movement in foreign exchange
Cost 30 June 2023
Accumulated depreciation
Carrying amount 30 June 2023
AIRCRAFT VALUATION
Land &
Buildings
$000
3,579
(287)
3,292
Plant &
Equipment
$000
17,938
(8,195)
9,743
Aircraft
Leasehold
Improv.
$000
$000
5,317 37,782
(1,149) (2,424)
4,168 35,358
Motor
Vehicles
$000
4,321
(2,389)
1,932
Total
Vessels
Office
Equipment
$000
$000
2,190 40,165
(1,654) (12,759)
$000
111,292
(28,857)
536 27,406 82,435
103
(201)
-
-
-
-
4
3,686
(488)
3,198
2,327
(2,261)
(14)
-
-
2,569
(523)
(9)
5,618
(2,073)
(890)
- 6,354
(591)
-
346
(327)
(20)
-
-
191
(210)
-
-
-
1,042
(2,830)
-
-
-
12,196
(8,425)
(933)
6,354
(591)
-
-
3,280
-
-
-
3,280
31
2
20,217
(10,420)
82
7,899 47,138
-
(1,663)
9,797 6,236 47,138
5
4,507
(2,571)
1,936
-
2,381 42,324
(1,864) (16,706)
124
128,152
(33,712)
517 25,618 94,440
The fair value of aircraft has been subject to a valuation by an independent valuer as at 30 June 2023 for the Australian
and New Zealand fleet using a ‘market based’ approach, resulting in a net increase of $9,026,000 in the carrying amount
of aircraft assets.
Valuations were determined on an aircraft by aircraft basis, taking into consideration the condition of the aircraft,
including airframe and engine hours, recent comparable sales and desktop research on information available in the
public domain. The valuation of aircraft is subject to a degree of judgement and factors such as the nature, condition
and location of the aircraft.
Changes in the carrying amounts of aircraft assets are recognised on an aircraft by aircraft basis:
•
•
•
revaluations: changes in fair value above initial recognition (revaluations net of tax in other comprehensive income);
reversal of prior period impairment: increases up to the amount of initial recognition; or
impairment: decreases below initial recognition.
Accumulated depreciation is reset to nil upon a change in fair value.
NOTE 14 INTANGIBLE ASSETS
Goodwill Trademarks
Computer
Software
Customer
relationships
and other
Leases &
Licences
Total
Cost 1 July 2021
Accumulated amortisation and impairment
Carrying amount 1 July 2021
Additions
Amortisation expense
Intangibles acquired - business combinations
Cost 30 June 2022
Accumulated amortisation and impairment
Carrying amount 30 June 2022
$000
-
-
- -
$000
-
- (1,082)
$000
2134
$000
4,090
(4,090)
$000
3,252
(3,040)
$000
9,476
(8,212)
-
-
-
-
1,052
-
472 -
1,264
- 472
(423)
15,579 112 - -
44,492
15,579 2,718 4,090 3,252 54,440
212
(423)
28,801
28,801
-
- (1,505)
(4,090)
(3,040)
28,801
15,579
1,213
-
212
(8,635)
45,805
Cost 1 July 2022
Accumulated amortisation and impairment
Carrying amount 1 July 2022
Additions
Amortisation expense
Cost 30 June 2023
Accumulated amortisation and impairment
Carrying amount 30 June 2023
28,801
-
28,801
563
-
29,364
-
29,364
15,579
-
15,579
-
-
15,579
-
15,579
2,718
(1,505)
1,213
568
(530)
3,286
(2,035)
1,251
4,090
(4,090)
-
-
-
4,090
(4,090)
-
3,252
(3,040)
212
199
(37)
3,451
(3,077)
374
54,440
(8,635)
45,805
1,330
(567)
55,770
(9,202)
46,568
34
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 14 INTANGIBLES (CONTINUED)
IMPAIRMENT DISCLOSURES
Intangible assets, other than goodwill and trademarks, have finite useful lives. The current amortisation charges for
intangible assets are included under depreciation and amortisation expense per the statement of profit or loss. Goodwill
and trademarks have an indefinite useful life.
The recoverable amount of each of the Group’s CGUs has been determined based on value in use calculations. The
future cash flow projections for the Group are subject to a significant level of uncertainty and are sensitive to the key
assumptions in relation to trading and emerging macroeconomic trends.
The following approach was used in the value in use calculations for each cash generating unit based on five-year
management projections, with sensitivities noted where acquired goodwill and trademarks are recognised at 30 June
2023 for the relevant CGU:
•
•
•
•
•
Australia Skydive: recovery to pre-pandemic condition run rates by the end of CY2025, terminal growth rate of
3.0% and a pre-tax discount rate of 14.0% (30 June 2022: 15.4%).
New Zealand Skydive: recovery to pre-pandemic condition run rates by end CY2025, terminal growth rate of 3.0%
and a pre-tax discount rate of 15.0% (30 June 2022: 16.6%).
GBR Experiences: recovery to pre-pandemic condition run rates by end of CY2025, terminal growth rate of 3.0%
and a pre-tax discount rate of 14.0% (30 June 2022: 15.4%).
Premium Adventure (Wild Bush Luxury): terminal growth rate of 3.0% and a pre-tax discount rate of 14.0% (30
June 2022: 15.4%). The sensitivities to impair the CGU’s acquired goodwill and trademarks, all other assumptions
remaining constant in each case, would be a pre-tax discount rate of 19.0% or a decrease in revenue of 9.8%.
Family Adventure (Treetops Adventure): terminal growth rate of 3.0% and a pre-tax discount rate of 15.0% (30
June 2022: 15.4%). The sensitivities to impair the CGU’s acquired goodwill and trademarks, all other assumptions
remaining constant in each case, would be a discount rate of 19.0% or a decrease in revenue of 13.6%.
NOTE 15 TRADE AND OTHER PAYABLES
Trade payables
Sundry payables and accrued expenses
Trade and other payables
NOTE 16 BORROWINGS
Current
Government loan
Total current borrowings
Non-current
Government loan
Bank loans
Total non-current borrowings
Total borrowings
30 June 2023
30 June 2022
$000
2,224
8,669
10,893
$000
2,623
7,537
10,160
30 June 2023
$000
30 June 2022
$000
-
-
1,838
7,372
9,210
9,210
902
902
902
7,372
8,274
9,176
The Group’s Multi Option Facility Agreement with the National Australia Bank (NAB) was amended in the period,
including an extension of the Facility to 31 March 2025, which includes a minimum cash covenant of:
•
•
$2 million for the period to 31 October 2023; and
$6 million for the period from 1 November 2023 to 31 March 2025.
The facility limits as at 30 June 2023 are the following:
•
•
Cash Advance Facility: $7.4 million (30 June 2022: $7.4 million), fully drawn at 30 June 2023.
Master Asset Finance Facility: $11.3 million (30 June 2022: $11.3 million). Drawn to $6.2 million as at 30 June 2023.
The Group has entered into a General Security Deed with NAB for both the Australian and New Zealand operations. NAB
holds a security interest in and over all the secured property of the Group. The NAB Finance leases are generally 1 to 3
year maturity and are repayable on a monthly basis. Interest rates on these leases currently range from 3% to 7% per
annum. Interest on the Cash Advance Facility is payable quarterly and interest rates on the facility ranging from 4.4% to
6% per annum as at 30 June 2023.
35
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 16 BORROWINGS (CONTINUED)
The Group has also drawn down on the Strategic Tourism Asset Protection Program (STAPP) to the amount of NZ$2.0
million (limit NZ$2.0 million) which is repayable by April 2026. This loan was interest free until 21 April 2023. Thereafter
the interest rate on the STAPP facility is fixed at 3.0% per annum and is payable quarterly.
NOTE 17 SHARE BASED PAYMENTS
Expenses arising from equity-settled share-based payment
transactions
Share-based payment expense
OPTIONS
30 June 2023
30 June 2022
$000
1,127
1,127
$000
1,585
1,585
In 2015, a total of 10,300,000 share options were granted to KMP under the STB Share Option Plan to take up ordinary
shares at an exercise price of $0.25 each. These share options expire on 9 February 2025. No share options were
exercised during the period.
PERFORMANCE RIGHTS AND SERVICE RIGHTS
Grant date
Expiry date
Exercise
price $
Opening
balance
Granted
Exercised/
vested
Expired/
forfeited/
other
Ending
balance
Share price
at grant date
$
Expected
volatility
Risk
free
rate
Fair value at
grant date $
29 Nov 2019
15 Sep 2022
29 Nov 20191
29 Jul 2022
16 Nov 2020
30 Nov 2024
23 Nov 2021
30 Nov 2025
23 Nov 20211
30 Jun 2023
21 Dec 2022
30 Sep 2027
21 Dec 2022
30 Nov 2025
-
-
-
-
-
-
439,560
5,871,193
3,063,278
1,483,454
-
-
-
-
1,936,668
-
(1,291,112)
(645,556)
(439,560)
-
-
-
$0.173
62.73% 0.62%
418,026
$0.265
N/A
N/A
116,483
-
(1,362,997)
4,508,196
$0.260
82.25% 0.09%
1,001,038
-
599,085
2,464,193
$0.340
N/A
N/A
742,085
(1,199,871)
(283,583)
-
$0.340
N/A
N/A
519,209
-
-
12,000,000
1,447,811
-
-
-
12,000,000
$0.225
74.71% 3.28%
2,700,000
-
1,447,811
$0.225
74.71%
N/a
325,757
1 Service rights subject to service conditions. Other grants are performance rights subject to long term performance conditions
The weighted average share price during the financial year was $0.232 (2022: $0.330). The weighted average remaining
contractual life of options outstanding at the end of the financial year was 2.6 years (2022: 1.9 years).
Vesting conditions other than market conditions are not taken into account when estimating the fair value and any
service requirement to be rendered is presumed to be satisfied.
The fair value at grant date is based on the market price of the shares reduced by the present value of dividends
expected to be paid during the vesting period.
NOTE 18 CAPITAL
MOVEMENTS IN ORDINARY SHARE CAPITAL
Opening balance
Employee share plan purchases
Transfer from option reserve
Issue shares as business combinations consideration
Issue shares to institutions and retail
Capital raising costs
Issued Capital Tax Effect
Closing balance
30 June
2023
$000
231,398
-
820
-
-
-
-
232,218
30 June
2022
$000
168,547
460
399
8,863
54,941
(2,589)
777
231,398
30 June
2023
Number
30 June
2022
Number
752,272,746
2,930,543
-
-
-
-
-
755,203,289
555,811,840
1,483,453
1,207,994
26,858,155
166,911,304
-
-
752,272,746
36
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 18 CAPITAL (CONTINUED)
CAPITAL MANAGEMENT
The Group aims to meet their strategic objectives and operational needs through the appropriate use of debt and
equity, while taking account of the additional financial risks of higher debt levels. Capital is regarded as total equity, as
recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings plus amounts
outstanding under asset finance leases less cash and cash equivalents.
Borrowings
Amounts outstanding under asset finance
Cash and cash equivalents
Net (Debt)/Cash
Equity
Total
Gearing ratio
Underlying EBITDA
Net Debt to Underlying EBITDA
DIVIDENDS AND FRANKING ACCOUNT
30 June 2023
30 June 2022
$000
(9,210)
(6,180)
8,587
(6,803)
(128,964)
(135,767)
5%
11,311
(0.6x)
$000
(9,176)
(6,126)
18,317
3,015
(123,921)
(120,906)
(2%)
(2370)
(1.3x)
No dividend was paid or declared during the period (30 June 2022: nil). 30% franking credits available to shareholders for
subsequent periods were $9,334,000 at 30 June 2023 (30 June 2022: $9,334,000).
NOTE 19 RESERVES
NATURE AND PURPOSE OF RESERVES
•
•
•
•
Asset Revaluation Reserve: records revaluations of non-current assets. Under certain circumstances dividends
can be declared from this reserve.
Option Reserve: records items recognised as expenses on valuation of employee share options.
Common Control Reserve: represents the excess purchase consideration over the carrying value of assets and
liabilities acquired in the group reorganization which occurred on 1 July 2014.
Foreign Currency Translation Reserve: records exchange differences arising on translation of a foreign controlled
subsidiary.
MOVEMENTS IN RESERVES
The movement in each class of reserves during the current and previous year is set out below.
Asset revaluation reserve
Opening balance
Revaluation gain/(loss) on property, plant & equipment
Share options reserve
Opening balance
Amount recognised in income statement during period
Common control reserve
Opening balance
Amounts acquired during period
Foreign currency translation reserve
Opening balance
Translation differences from foreign operations during period
Reserves
NOTE 20 FINANCIAL RISK MANAGEMENT
30 June 2023
$000
30 June 2022
$000
1,347
4,466
5,813
1,879
307
2,186
(4,171)
-
(4,171)
(210)
(8)
(218)
3,610
1,347
-
1,347
1,879
-
1,879
(4,171)
-
(4,171)
(245)
35
(210)
(1,155)
The Group has exposure to credit risk, liquidity risk and market risk arising from the use of financial instruments.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework.
37
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 20 FINANCIAL RISK MANAGEMENT (CONTINUED)
Credit Risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of
contract obligations that could lead to a financial loss to the Group.
Credit Risk Exposures
The carrying amount of the Group’s financial assets represents the maximum credit exposure.
Cash and cash equivalents
Trade and other receivables
Financial assets
Cash and cash equivalents
30 June 2023
30 June 2022
$000
8,587
3,612
12,199
$000
18,317
2,625
20,942
Cash at bank and short-term deposits are held with Australian and New Zealand banks with acceptable credit ratings.
Trade and other receivables
Credit risk is managed through regular monitoring of customer accounts and payments. Such monitoring is used in
assessing receivables for impairment. The Group has no significant concentration of credit risk with any single
counterparty or group of counterparties. Credit risk is principally attributable to local and international travel agents and
inbound tour operators, including online and traditional high street travel agents.
The Group does not normally require or hold collateral for the purposes of securing receivables.
Impairment of trade receivables
The Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected
loss allowance for all trade receivables. To measure expected credit losses trade receivables have been grouped based
on shared credit risk characteristics and historical credit loss.
The Group has sought to determine risk on characteristics of certain groups and their respective risk categories.
30 June 2023
Expected credit loss rate
Gross balance outstanding ($000)
Expected credit loss
30 June 2022
Expected credit loss rate
Gross balance outstanding ($000)
Expected credit loss
a) Liquidity risk
Category 1 Category 2 Category 3 Category 4 Category 5
Total
$000
$000
$000
$000
$000
$000
0% >0% to 25% >25% to 50% >50% to 75% >75% to 100%
2,875
-
0%
1,936
-
148
15
10%
16
7
44%
3
-
0%
149
168
113%
3,191
190
6%
>0% to 25% >25% to 50% >50% to 75% >75% to 100%
102
102
100%
32
14
44%
65
40
62%
122
12
10%
2,257
168
7%
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities. The Group’s approach to managing liquidity is to ensure that it will
always have sufficient liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring
unacceptable losses or reputational risk.
The Group maintains a general corporate facility and cash reserves to mitigate this exposure.
38
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 20 FINANCIAL RISK MANAGEMENT (CONTINUED)
The following table details the Group’s remaining contractual maturity for its financial instrument liabilities. The table
has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
financial liabilities are required to be paid.
Financial maturity analysis
30 June 2023
Government loan
Bank loans
Trade and other payables
Lease liabilities
Deferred consideration
Financial liabilities
30 June 2022
Government loan
Bank loans
Trade and other payables
Lease liabilities
Deferred consideration
Financial liabilities
b) Market Risk
Interest rate risk
Carrying
amount
$000
Contracted
cash flow
$000
6 months
or less
$000
6 to 12 months
1 to 2 years
$000
$000
More than
2 years
$000
1,838
7,372
10,893
23,125
3,270
46,498
1,804
7,372
10,160
24,471
3,690
1,838
7,372
10,893
23,125
3,270
46,498
1,804
7,372
10,160
24,471
3,690
-
-
10,893
2,262
120
13,275
10,160
-
-
-
2,084
2,075
4,159
1,838
7,372
-
3,658
1,075
13,943
902
902
7,372
-
1,740 2,620
1,000
-
5,523
2,690
-
-
-
15,121
15,121
-
-
14,588
-
47,497
47,497
15,683
5,332
10,894
14,588
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting
period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial
instruments. The Group is also exposed to earnings volatility on floating rate instruments. The financial instruments
that primarily expose the Group to interest rate risk are borrowings and cash and cash equivalents.
Interest rate risk is managed using a mix of fixed and floating rate debt. At 30 June 2023 approximately 55% (2022: 58%)
of group debt is fixed.
Foreign exchange risk
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating
due to movement in foreign exchange rates of currencies other than the AUD functional currency of the Group.
With instruments being held by overseas operations, fluctuations in the NZ Dollar may impact on the Group’s financial
results.
There are currently no hedging arrangements in place to manage foreign currency risk.
Sensitivities
The Group does not account for any financial assets or liabilities at fair value through the profit or loss, and has no
derivatives designated as hedging instruments under the fair value hedge accounting model. As such, a change in
interest rates at reporting date would not impact profit or loss.
In relation to variable interest rate instruments, principally being bank borrowings under the general purpose corporate
facility, the impact of a 100 basis point change in interest rates at the reporting date is immaterial.
Fair values
The fair values of financial assets and financial liabilities approximate their carrying amounts in the statement of
financial position.
39
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 21 FAIR VALUE MEASUREMENT
FAIR VALUE HIERARCHY
The following tables detail the assets and liabilities of the Group, measured or disclosed at fair value, using a three-level
hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
•
•
•
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
the measurement date;
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly; and
Level 3: Unobservable inputs for the asset or liability.
The following tables provide the fair values of the Group’s assets and liabilities measured and recognised on a recurring
basis after initial recognition and their categorisation within the fair value hierarchy.
30 June 2023
Aircraft
Total assets
30 June 2022
Aircraft
Total assets
AIRCRAFT
Level 1
$000
Level 2
$000
-
-
-
-
-
-
-
-
Level 3
$000
47,138
47,138
Total
$000
47,138
47,138
35,358
35,358
35,358
35,358
The fair value of aircraft equipment is expected to be determined every three years based on valuations by an
independent valuer, with the last valuation being 30 June 2023.
Balance at 1 July 2021
Additions
Disposals
Depreciation
Other
Transfer between asset class
Balance at 30 June 2022
Balance at 1 July 2022
Additions
Disposals
Gains recognized in profit or loss
Gains recognized in other comprehensive
income
Depreciation
Other
Balance at 30 June 2023
Aircraft
$000
31,869
2,565
(4)
(1,190)
(156)
2,274
35,358
35,358
5,627
(890)
2,689
6,337
(2,073)
90
47,138
Non-current
assets held
for sale
$000
2,958
-
-
-
-
(2,958)
-
-
-
-
-
-
-
-
Total
$000
34,827
2,565
(4)
(1,190)
(156)
(684)
35,358
35,358
5,474
(890)
9,179
(2,073)
90
47,138
40
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 22 CASH FLOW INFORMATION
Loss after income tax
Non-cash items in profit or loss
Depreciation and amortisation
Impairment
One off items - non cash
Net loss on sale of assets
Unrealised foreign currency exchange gains/(losses)
Changes in assets and liabilities:
(Increase)/Decrease in trade and other receivables
Decrease in other current assets
(Increase) in inventories
Decrease in trade and other payables
(Increase) in income taxes payable
Decrease/(Increase) in deferred taxes payable
Decrease in provisions
Cash flows from operating activities
NOTE 23 RELATED PARTY DISCLOSURES
RELATED PARTIES
The Group’s related parties are as follows:
30 June 2023
$000
(542)
30 June 2022
$000
(13,583)
11,706
(2,689)
1,357
268
(145)
9,955
(3,155)
952
(356)
39
10
2,051
225
9,721
9,817
1,623
(408)
6
258
(2,287)
2,367
7,685
(582)
572
(778)
(4,656)
700
3,021
•
•
•
Entities exercising control over the Group: the ultimate parent entity that exercises control over the Group is
Experience Co Limited, which is incorporated in Australia.
Key Management Personnel: persons having authority and responsibility for planning, directing and controlling
the activities of the entity, directly or indirectly, including directors (executive and non-executive) of that entity.
Other Related Parties: other related parties include entities controlled by the ultimate parent entity and entities
over which key management personnel have joint control.
KEY MANAGEMENT PERSONNEL REMUNERATION
Short-term employee benefits
Post-employment benefits
Share-based payments
Total KMP remuneration
30 June 2023
30 June 2022
$
1,668,029
112,123
851,154
2,631,306
$
1,477,533
100,250
786,644
2,364,427
RELATED PARTY TRANSACTIONS AND BALANCES
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
Property leases and outgoings
Asset acquisitions
Other non-remuneration services
Related party expenses
30 June 2023
30 June 2022
$
350,392
2,206,686
-
2,557,078
$
316,534
-
65,010
381,544
41
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 23 RELATED PARTY DISCLOSURES
Property lease transactions
During the period, property lease and outgoing costs were incurred in relation to entities controlled by Anthony
Boucaut (Director):
•
•
Newcastle Drop Zone: IGMAITB Pty Ltd atf IGMAITB Discretionary Trust for the property located at Belmont
Airport, NSW.
Shellharbour Airport Hangar facilities: Illawarra Hangar Pty Ltd atf Illawarra Hangar Unit Trust for properties
located at Shellharbour Airport, NSW.
Asset acquisitions
The Group acquired two assets from Anthony Boucaut during the period:
•
•
Cessna 208 Caravan (VH-OZQ): prior to acquisition by the Group this aircraft has been subject to arms-length cross
hire arrangements. The Group identified during aviation fleet planning the requirement for a low-time Cessna
Caravan in skydiving configuration. Following an international search for suitable aircraft and an independent
valuation, the Group negotiated terms to acquire the aircraft for US$1,318,182 (A$1,971,593) payable to Anthony
Boucaut, in addition to $36,241 of insurance and other related costs to bring the aircraft into use.
Thereby Air Pty Ltd: this entity is the owner of an Air Operator’s Certificate (AOC) for the provision of charter services
for Cessna Caravans. Historically, this entity has entered into commercial arrangements to use the Thereby Air Pty
Ltd AOC. The acquisition provides the ability to diversify the Group’s aviation fleet earnings and better utilise periods
of excess capacity. The Group paid $198,852 to acquire Thereby Air Pty Ltd.
Other non-remuneration services
During the period ended 30 June 2022 the other non-remuneration services related to the cross hire of aircraft and use
of an Air Operator’s Certificate (AOC) from entities controlled by Anthony Boucaut (Director). These activities were
discontinued during the period as the Group acquired the interests in the relevant assets.
NOTE 24 SUBSEQUENT EVENTS
There have been no significant subsequent events since the end of the period.
NOTE 25 CONTINGENT ASSETS AND LIABILITIES
As at 30 June 2023, the Group had drawn bank guarantees amounting to $1,626,863 (30 June 2022: $1,433,229).
The Group is defending a claim lodged in the Federal Court of Australia by certain contractor pilots of STBAUS Pty Ltd, a
Group subsidiary, for an amount of approximately $1.5 million. As at the date of this report, the Group is defending the
claim.
There are no other contingent liabilities or assets requiring disclosure as at the date of this report.
42
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 26 CONTROLLED ENTITIES
The subsidiaries listed have share capital consisting solely of ordinary shares which are held directly by the Group. The
proportion of ownership interests held equals the voting rights held by Group. Each subsidiary’s principal place of
business is also its country of incorporation. Other than banking covenants there are no significant restrictions over the
Group’s ability to access or use assets, and settle liabilities, of the Group.
PRINCIPAL PLACE
OF BUSINESS
OWNERSHIP
INTEREST
NAME OF SUBSIDIARY
Aircraft Maintenance Centre Pty Ltd
Australia Skydive Pty Ltd
B & B No 2 Pty Ltd
Bill & Ben Investments Pty Ltd
Skydive Holdings Pty Ltd
Skydive the Beach and Beyond Airlie Beach Pty Ltd
Skydive the Beach and Beyond BB Pty Ltd
Skydive the Beach and Beyond Central Coast Pty Ltd
Skydive the Beach and Beyond Great Ocean Road Pty Ltd
Skydive the Beach and Beyond Hunter Valley Pty Ltd
Skydive the Beach and Beyond Melbourne Pty Ltd
Skydive the Beach and Beyond Newcastle Pty Ltd
SBB Trading Pty Ltd
Skydive the Beach and Beyond Sydney Wollongong Pty Ltd
Skydive the Beach and Beyond Yarra Valley Pty Ltd
Skydive.com.au Pty Ltd
STBAUS Pty Ltd
Skydive International Holdings Pty Ltd
Skydive Investments Pty Ltd
Raging Thunder Pty Ltd
Fitzroy Island Ferries Pty Ltd
Fitzroy Island Pty Ltd
Martheno Pty Ltd
White Water Rafting Qld Pty Ltd1
Raging Thunder Balloon Adventures Pty Ltd1
Altitude Skydive Pty Ltd1
RNR Rafting Pty Ltd1
ILB Pty Ltd
Reef Magic Cruises Pty Ltd
ACN 123 520 874 Pty Ltd1
Air Vistas Pty Ltd1
Calypso Reef Charters Pty Ltd
Fish for Fish Investments Pty Ltd
Experience Daintree Pty Ltd
J & J Wallace (Holdings) Pty. Ltd.
J & J Wallace (Projects) Pty Ltd
J & J Wallace (Tours) Pty Ltd
J & J Wallace (Permits) Pty. Ltd.
Experience Marine Pty Ltd
Experience Co Admin Pty Ltd
Experience Co Admin QLD Pty Ltd
Skydive Australia Collections Pty Ltd
Wild Bush Luxury Experience Pty Ltd
Capital Jet Engineering Pty Ltd
Skydive Shellharbour Pty Ltd
Australian Jump Pilot Academy Pty Ltd
There by Air Pty Ltd
Canopy Adventure Pty Ltd
Canopy Adventure Yanchep Pty Ltd
TATPP Pty Ltd
Trees Adventure Holdings Pty Ltd
Trees Adventure Pty Ltd
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
2023
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
-
100%
100%
100%
100%
-
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2022
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
-
100%
100%
100%
100%
100%
43
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
NOTE 26 CONTROLLED ENTITIES (CONTINUED)
NAME OF SUBSIDIARY
Trees Central Coast Pty Ltd
Trees Coffs Harbour Pty Ltd
Trees Kuringai Pty Ltd
Trees Mosman Pty Ltd
Trees Newcastle Pty Ltd
Trees Nowra Pty Ltd
Trees Pennant Hills Pty Ltd
Trees Sunshine Pty Ltd
Trees Western Sydney Pty Ltd
Trees Yarramundi Pty Ltd
Trees Yeodene Pty Ltd
Treetop Adventure Australia Pty Ltd
Treetop Adventures Holdings Pty Ltd
Treetops Cape Tribulation Pty Ltd
Experience Co NZ Holdings Limited
Skydive Queenstown Limited
Ultimate Adventure Group Ltd
Parachute Adventure Queenstown Limited
Skydive Wanaka Limited
Performance Aviation (New Zealand) Limited
Skydive (New Zealand) Limited
1 De-registered during the year
PRINCIPAL PLACE
OF BUSINESS
OWNERSHIP
INTEREST
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
2023
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2022
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
NOTE 27 PARENT ENTITY DISCLOSURES
The following information has been extracted from the books and records of the parent and has been prepared in
accordance with Australian Accounting Standards.
Profit/(loss) for the period
Other comprehensive income
Total comprehensive income for the period after tax
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Issued capital
Retained earnings
Reserves
Total Equity
30 June 2023
$000
30 June 2022
$000
(9,278)
-
(9,278)
16,991
191,141
208,132
7,487
19,429
26,916
231,186
(51,310)
1,341
181,217
(6,565)
-
(6,565)
26,976
193,544
220,520
8,711
20,783
29,494
230,365
(42,032)
2,693
191,026
Significant accounting policies are consistent with those applied by the Group.
The parent entity had no guarantees, contingent liabilities or commitments as at balance date.
44
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ DECLARATION
In the Directors’ opinion:
1.
The financial statements and notes thereto:
(a) comply with the Corporations Act 2001, Australian Account Standards, Corporations Regulations 2001 and
other mandatory professional reporting requirements;
(b) comply with International Financial Reporting Standards as issued by the International Accounting Standards
Board as described in Note 1 to the financial statements; and
(c) give a true and fair view of the consolidated entity’s financial position as at 30 June 2023 and of its
performance for the period ended on that date.
2
There are reasonable grounds to believe that the company will be able to pay its debts as and when they become
due and payable.
The directors have been given the declarations required by section 295A of the Corporate Act 2001.
Signed in accordance with a resolution of the directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors.
_____________________
John O’Sullivan Kerry (Bob) East
Chief Executive Officer Chairman
________________________
Dated: 24 August 2023
45
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
AUDITOR’S INDEPENDENCE DECLARATION
RSM Australia Partners
Level 13, 60 Castlereagh Street Sydney NSW 2000
GPO Box 5138 Sydney NSW 2001
T +61 (0) 2 8226 4500
F +61 (0) 2 8226 4501
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Experience Co Limited and controlled entities for
the year ended 30 June 2023, I declare that, to the best of my knowledge and belief, there have been
no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
C J Hume
Partner
Sydney, NSW
Dated: 24 August 2023
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM
network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM
network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
46
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT
Level 13, 60 Castlereagh Street Sydney NSW 2000
GPO Box 5138 Sydney NSW 2001
T +61 (0) 2 8226 4500
F +61 (0) 2 8226 4501
www.rsm.com.au
RSM Australia Partners
INDEPENDENT AUDITOR’S REPORT
To the Members of Experience Co Limited
Opinion
We have audited the financial report of Experience Co Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of significant accounting policies,
and the directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group's financial position as at 30 June 2023 and of its financial performance
for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards
are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial report of the current period. These matters were addressed in the context of our audit of the financial report as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM
network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network
is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
47
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT
Key Audit Matter
Recognition of Revenue
Refer to the financial statements
How our audit addressed this matter
The recognition of revenue and the associated
deferred revenue is significant to the audit and
is considered to be a key audit matter due to the
nature of the revenue, which is often paid in
advance of the services being rendered. The
group is therefore required to recognize such
receipts as deferred revenue until such time as
the services are rendered under AASB 15.
Our audit procedures in relation to revenue recognition,
deferred revenue and breakage revenue included the
following:
• Obtaining a detailed understanding of each of the
sources of revenue and
related systems
processes for quantifying and recording revenue and
deferred revenue.
the
There are potential risks in relation to the
following:
• Revenues may be deliberately overstated
because of management override of
internal controls. The management of the
Group
key
performance measure which could create
an incentive for sales to be recognised
before the services have been provided.
sales as a
considers
•
In accordance with AASB 15, Experience
Co Group is entitled to recognize revenue
from variable consideration, being
the
probabilities applied to gift card sales and
of
advance
management’s
the
likelihood that the advance bookings and
gift vouchers will result in a tandem jump
occurring.
in
assessment
bookings
respect
of
• Considered the adequacy of the Group’s revenue
for
recognition policies and assessing
compliance with Australian Accounting Standards.
them
• Where applicable, testing the operating effectiveness
of key controls in relation to bookings and revenue
recognition.
• Selecting a sample of entries in the sales ledger
accounts and testing accuracy and occurrence of the
revenue.
• Obtaining
revenue
deferred
schedule
from
management as at year end, on a sample basis,
testing the completeness and accuracy of the
deferred revenue schedule by selecting a sample of
payment received before year end from the risky cut-
off period based on the nature of the activities and
trace to evidence as to whether the services have
been rendered before year end and confirmed.
• Obtaining
the breakage revenue calculated by
management, assessing managements estimates
utilised in the process to determine the redemption
rate. Assessing the reasonability of managements
estimations,
in
accordance with AASB 15.
judgements, and calculations
• Assessing the adequacy of the disclosures in the
the critical accounting
for
financial statements
estimates and judgements in the accounting policy
notes and ensure the disclosures are consistent with
the applied practices.
48
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT
Key Audit Matter
How our audit addressed this matter
Property, Plant and Equipment
Refer to Note 13 in the financial statements
Experience Co Limited currently owns Aircraft and
other operating equipment with a carrying value of
$96,997,767 as at 30 June 2023.
The more significant classes of property, plant and
equipment include following:
• Aircraft with carrying values of $47,137,580
• Vessels and Pontoons with carrying values of
$25,617,035
The accounting in respect of the property, plant, and
equipment for Experience Co Limited is complex
and non-routine due to the nature of the operating
in
equipment and
determining useful lives, residual values, and the
valuation of the major components of the assets.
This is especially the case for the Group’s most
significant classes of property, plant and equipment
in aircraft and vessels.
judgement
required
the
The aircraft in Experience Co is carried using a
revaluation model per the Group’s accounting
policy and with a revaluation requirement of every
3 years if there are no material changes of the
carrying amount during the revaluation period. This
follows the accounting standards
under AASB 116 – Property, Plant and Equipment.
In the year ended 30 June 2023, the Group
performed a complete revaluation of its Aircraft
assets following the 3-year revaluation requirement.
Our audit procedure in relation to property, plant and
equipment included following:
Residual Values and Asset Components
Obtain the accounting memoranda of aircraft depreciation
method to:
• Assess the reasonableness of evidence provided by
management
the residual value and
component split of the assets by comparing it to external
evidence and historical sales values.
to support
• Assess the adequacy of the disclosures in the financial
statements for the critical accounting estimates and
judgements in the accounting policy notes and ensure
the disclosures are consistent with the applied practices.
• Review the residual values and asset component split in
fixed asset register to confirm they are in line with the
aircraft
accounting memoranda
respective
depreciation method.
of
Useful lives
• Obtain the accounting memoranda prepared for aircraft
depreciation method to assess the reasonableness of
evidence provided by management to support the useful
lives of the assets by comparing it to available external
evidence or confirmation provided by internal and
external experts.
• Reviewing the depreciation method used in the fixed asset
register to ensure it is in line with depreciation method
prescribed in accounting memoranda.
• Performing
substantive
on
depreciation methods to gain assurance on accuracy of
the depreciation.
procedures
analytical
Fair Value of Aircraft Review
• Obtain and
review
the Valuation Report of
the
management’s expert around the aircraft assets, and
assess appropriateness and reliability of the calculation
methodology, key assumptions, and inputs used by the
external expert.
•
Assess the adequacy of the disclosures in financial
statement for fair value measurements.
49
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT
Key Audit Matter
How our audit addressed this matter
Goodwill and Other Intangible Assets
Refer to Note 14 in the financial statements
Experience Co group has significant intangible
assets $46 million which mainly resulted from
acquisitions 2022 financial year for Treetop and
Wild Luxury Bush business units. Goodwill and
indefinite useful
Trade Names have an
economic
they are not
amortised, but are subject to annual testing for
impairment in accordance with AASB 136
Impairment.
life. Therefore,
We determined this area to be a key audit matter
due to the size of the intangible assets balance,
and because the directors’ assessment of the
‘value
involves
judgements about the future underlying cash
flows of the business and the discount rates
applied to them.
in use’ of each (‘CGU’)
For the year ended 30 June 2023 management
have performed an impairment assessment
over the goodwill balance by:
•
•
•
Determining that the entity has five
CGUs and allocating goodwill and other
three
intangible assets across
CGUs.
the
Calculating the value in use for each
CGU using a discounted cash flow
model. These models used cash flows
(revenues, expenses and capital
expenditure) for the CGU for five years,
with a terminal growth rate applied to
the fifth year. These cash flows were
then discounted to net present value
using the discount rate of each CGU;
and
Comparing the resulting value in use of
each CGU to their respective carrying
book values.
Management also performed a sensitivity
analysis over the value in use calculation, by
varying the assumptions used (growth rates
and discount rate) to assess the impact on the
valuations.
Our audit procedures in relation to the valuation of
goodwill and other intangible assets included the
following:
•
•
•
•
•
the
Assessing
the
management’s allocation of the goodwill across
the five CGUs.
appropriateness
of
Evaluating the assumptions and methodologies
used by the Company in preparing the value in
use calculation, in particular those relating to the
sales growth rate, projected future expenditure,
and pre- tax discount rate.
flow projections
The cash
for each cash-
generating unit have been assessed and
challenged by us, including an assessment of the
historical accuracy of management’s estimates
and evaluation of business plans.
Reviewing the sensitivity analysis prepared by
management, to assess the headroom in each
cash generating unit.
Assessing the adequacy of the disclosures in the
financial statements for Goodwill assumptions to
which the outcome of the impairment test is most
sensitive, that is, those that have the most
significant effect on the determination of the
recoverable amount of goodwill.
50
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group's annual report for the year ended 30 June 2023 but does not include the financial
report and the auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 12 to 17 of the directors' report for the year
ended 30 June 2023.
In our opinion, the Remuneration Report of Experience Co Limited, for the year ended 30 June 2023,
complies with section 300A of the Corporations Act 2001.
51
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
INDEPENDENT AUDITOR’S REPORT
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
RSM Australia Partners
C J Hume
Partner
Sydney, 24 August 2023
52
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR LISTED
PUBLIC COMPANIES
The following information is current as at 3 August 2023.
1. Shareholding
a) Distribution of Shareholders
CATEGORY (SIZE OF
HOLDING)
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,000 - and over
NUMBER OF
HOLDERS
NUMBER ORDINARY
SHARES
% HELD BY
CATEGORY
173
498
236
486
114
1,507
57,259
1,383,294
1,792,907
15,594,894
736,374,935
755,203,289
0.010
0.180
0.240
2.060
97.510
100.000
b) Shareholdings in less than marketable parcels
The number of shareholdings held in less than marketable parcels is 111.
c) Substantial shareholders
The names of the substantial shareholders listed in the holding company’s register are:
SHAREHOLDER
BOUCAUT ENTERPRISES PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
NATIONAL NOMINEES LIMITED
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRLIA) LIMITED
UBS NOMINEES PTY LTD
NUMBER OF
ORDINARY
FULLY PAID
SHARES HELD
% HELD OF
ISSUED
ORDINARY
CAPITAL
176,898,814
155,407,559
111,736,366
93,175,975
59,145,692
56,016,355
23.424%
20.578%
14.796%
12.338%
7.832%
7.417%
d) Voting Rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote,
and upon a poll each share is entitled to one vote.
53
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR LISTED
PUBLIC COMPANIES
1. Shareholding (continued)
e) 20 Largest Shareholders – Ordinary Shares
NAME
BOUCAUT ENTERPRISES
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
NATIONAL NOMINEES LIMITED
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
UBS NOMINEES PTY LTD
BNP PARIBAS NOMS PTY LTD
RICHMOND HILL CAPITAL PTY LTD
MAUCLAI PTY LTD
MS ARIANE RADFORD
BNP PARIBAS NOMS (NZ) LTD
TLSL INVESTMENT PTY LTD
ASH & BEC INITIATIVES PTY LTD
CLJOS HOLDINGS PTY LTD
MR OWEN KEMP
TELUNAPA PTY LTD
EQUITY TRUSTEES LIMITED
MR ANDRE WALL ELLIS & MRS OLIVIA LOUISE ELLIS
OCEAN CAPITAL PTY LIMITED
MR MARK MCINNES
NUMBER OF
ORDINARY
FULLY PAID
SHARES HELD
% HELD OF
ISSUED
ORDINARY
CAPITAL
176,898,814
155,407,559
111,736,366
93,175,975
59,145,692
56,016,355
22,136,831
11,719,471
5,810,276
5,187,467
3,156,273
1,937,185
1,937,185
1,722,562
1,648,865
1,500,000
1,270,734
1,100,000
1,000,000
955,000
23.424%
20.578%
14.796%
12.338%
7.832%
7.417%
2.931%
1.552%
0.769%
0.687%
0.418%
0.257%
0.257%
0.228%
0.218%
0.199%
0.168%
0.146%
0.132%
0.126%
TOTAL SHARES OF TOP 20 HOLDINGS
713,462,610
94.47%
2. Company Secretary
Fiona van Wyk
3. The address of the principle office in Australia is:
Level 5, 89 York Street Sydney 2000
Telephone 1300 663 634
4. Registers of securities are held at the following addresses:
Boardroom Pty Ltd Level 8, 210 George Street Sydney NSW 2000
5. Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the Australian
Securities Exchange Limited.
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EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CORPORATE DIRECTORY
Directors:
Kerry (Bob) East
Neil Cathie
Michelle Cox
Anthony Boucaut
John O’Sullivan
Company Secretary:
Fiona van Wyk
Registered Office:
Level 5, 89 York Street Sydney 2000
Principal Place of Business:
Level 5, 89 York Street Sydney 2000
Lawyers:
Auditors:
Share Registry:
Bankers:
Bird & Bird
Level 22, MLC Centre, 19 Martin Place, Sydney NSW 2000
RSM Australia Partners
Level 13, 60 Castlereagh Street Sydney NSW 2000
Boardroom Pty Ltd
Level 8, 210 George Street Sydney NSW 2000
National Australia Bank Limited
Level 6, 2 Carrington Street Sydney NSW 2000
Stock Exchange Listing Code:
ASX: EXP
Website:
www.experienceco.com
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