APPENDIX 4E
FOR THE YEAR ENDED 30 JUNE 2024
(PREVIOUS CORRESPONDING PERIOD BEING THE YEAR ENDED 30 JUNE 2023)
June
June
2024
2023
%
$000
$000
change
Revenue from ordinary activities
127,040
108,596
17%
Profit/(loss) before impairment, interest, taxes, depreciation and
amortisation (EBITDA) from ordinary activities
15,230
9,969
53%
Loss before tax from ordinary activities
(2,001)
(300)
n/a
Loss after tax from ordinary activities attributable to shareholders
(71)
(542)
n/a
Net tangible assets
69,494
71,827
(3%)
Net tangible assets cents per share
9.2 cents
9.5 cents
(4%)
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 2024 (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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
OUR DIRECTORS
1
ABN 56 167 320 470
ANNUAL REPORT
FY24
NZONE | QUEENSTOWN | NEW ZEALAND
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
OUR DIRECTORS
2
FY23
ABOUT US
Experience Co Limited (EXP) is one of Australia and New Zealand’s most recognised
and respected adventure tourism and leisure businesses.
We are all about helping you escape the ordinary, with safety and adventure at the core
of what we do.
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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
OUR DIRECTORS
3
CONTENTS
CHAIRMAN & CEO REPORT
04
OUR DIRECTORS
06
DIRECTORS’ REPORT
08
REMUNERATION REPORT
12
FINANCIAL STATEMENTS
20
AUDITOR’S INDEPENDENCE DECLARATION
50
INDEPENDENT AUDITOR’S REPORT
51
SHAREHOLDER INFORMATION
57
CORPORATE DIRECTORY
59
REEF MAGIC | CAIRNS | AUSTRALIA
TREETOPS ADVENTURE | CANBERRA | AUSTRALIA
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CHAIRMAN & CEO REPORT
4
On behalf of the Experience Co Limited Board and
Management, we are pleased to present the Annual
Report for the year ended 30 June 2024.
FY24 represented a year of continued recovery and
growth for EXP despite challenging weather and trading
conditions. The Group achieved revenue of $127 million
and underlying EBITDA of $14.4 million, representing a
year-on-year increase of 17% and 27%, respectively. FY24
delivered the Group’s strongest financial result since
FY19, driven by growth in our Skydive segment and more
modest growth in our Adventure Experiences segment.
This performance was achieved despite a more gradual
than expected recovery of international visitors and
persistent domestic cost-of-living pressures in Australia.
The Directors have determined that a final dividend for
FY24 will not be declared.
YEAR IN REVIEW
The Skydive segment reached its highest volumes since
FY19 and delivered a 29% year-on-year increase in
revenue. Skydive in NZ far exceeded FY23 volumes as it
benefited from Queenstown’s reputation as a tourism
destination of choice as well as having an approximate 6-
month head start on Australia as an Approved
Destination for Chinese group tourism. Australia’s
volume growth was less pronounced due to the relative
pace of recovery of inbound markets whilst also being
constrained during the year by weather disruptions and
the impact of domestic cost-of-living pressures.
Our Performance Aviation division started the year with
strong external maintenance bookings in NZ and cross
hire revenues in Australia. From Q3, aviation revenue
was impacted by reduced levels of freight and cross-hire
activity. The recently acquired Australian Jump Pilot
Academy business enjoyed robust bookings throughout
the year and continued to provide a pipeline of new
pilots for our Skydive division.
The Adventure Experiences segment increased year-on-
year revenue and volumes with strong performances
from Reef Unlimited and Treetops Adventure offset by
slightly weaker trading in the Premium Adventure
segment.
Reef Unlimited performance continued to be driven by
consistent
domestic
demand
and
increasing
international inbound tourism despite the impacts of
Cyclone Jasper during the peak December and January
holiday periods. While the Cairns market recovered
quickly, the Port Douglas and Cape Tribulation recovery
was markedly slower due to the delayed reopening
caused by the impacts of flooding experienced post
Tropical Cyclone Jasper. The return of the cruise ship
market and Chinese inbound tourism during Lunar New
Year supported volumes in the second half of the year.
Throughout the year, we also saw increased demand for
our Reef Magic pontoon and Dreamtime Dive and
Snorkel experiences.
Treetops Adventure saw resilient performances across
the network against a backdrop of challenging weather
and trading conditions during the year. Although,
heavily impacted by Tropical Cyclone Jasper, our Cape
Tribulation site reopened from Easter and continues to
post strong performances. In April, we opened the 16th
site at Majura Pines in Canberra which contributed
strongly to the business during the remainder of the
financial year.
Premium Adventure experienced softer demand from
the peak trading experienced in FY22 post pandemic, but
we remain optimistic that the segment will recover as
demand normalises given the quality of our Arkaba,
Bamurru Plains and Maria Island experiences.
During the year, Management remained focused on cost
management disciplines and operating efficiencies
while managing inflationary impacts on the business.
Despite adverse weather impacts in key locations during
peak trading periods, the business adjusted operations
to match changes in demand to optimise peak operating
periods. A notable example is the collaboration with the
QLD Government and local councils to establish a
commuter ferry service between Cairns and Port
Douglas when the road infrastructure was damaged
during Cyclone Jasper.
PEOPLE AND SAFETY
Safety remains a core value at EXP. We have robust
health and safety management systems and reporting
and training initiatives in place to ensure a safe
workplace and customer experience.
Our people are central to delivering exceptional
experiences to our customers, and we continue to invest
in employee well-being, career development, and
retention through various programs.
INVESTING IN GROWTH
Aligned with our organic growth strategy, the Group
opened the Treetops Canberra site in April 2024. Since
opening,
the
site’s
performance
has
exceeded
expectations. This success reinforces our commitment
to our organic growth strategy and the expansion of this
business unit into key locations Australia wide.
The Group continues to invest in Customer Relationship
Management (CRM) systems and its consumer websites
to enhance and optimise EXP’s experiences and brand
reputation across our extensive customer network
driving revenue and elevating the overall customer
experience.
In December 2023, the Group entered into a new secured
corporate debt facility with Commonwealth Bank of
Australia. The facility provides the Group increased
working capital and funding to support both organic
growth and acquisition opportunities.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CHAIRMAN & CEO REPORT
5
STRATEGIC REVIEW
In April 2024, the Board initiated a Strategic Review to
explore options for maximising shareholder value,
including potential change of control transactions. The
process is now underway and further updates will be
provided at the appropriate time.
OUTLOOK
The Board and Management remain confident in the
long-term earnings potential of the business. Our
growing and diverse portfolio is well positioned to
capitalise on opportunities arising from the recovery of
inbound international markets and normalisation of
domestic consumer sentiment.
ACKNOWLEDGEMENTS
We extend our gratitude to all Experience Co team
members for their dedication and hard work during
FY24. We also thank our shareholders, customers and all
stakeholders for their ongoing support of EXP.
We look forward to building long-term value as
Experience Co capitalises on the opportunities ahead
and executes its strategic objectives.
Kerry (Bob) East
John O’Sullivan
Chair
Chief Executive Officer
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
OUR DIRECTORS
6
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 proven leadership capability and significant industry skill and expertise with more than 25 years’ experience in
the tourism and hospitality industries. Prior to joining Experience Co, Bob was CEO of Mantra Group (ASX 200) where
he was responsible for the consolidation and strengthening of the Mantra Group brands and the growth of the
business into one of the leading accommodation providers and operators in Australasia. Bob was instrumental in and
lead the listing of the Mantra Group on the ASX in 2014 and in 2018 the largest hospitality transaction in Australia – the
acquisition of the Mantra Group by Accor Hotels.
Bob holds Non- Executive Director Chair roles in the Gold Coast Football Club Ltd, Australia Venue Company Pty Ltd,
Leisure Accommodation Collective and Cettire Limited.
Bob holds an MBA from University of 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
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 more than 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 an 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)
175,181,212 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 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 currently Non-Executive Chair of Coventry Group Limited and Non-Executive Director of Bowen &
Pomeroy Pty 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 O di
h
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
OUR DIRECTORS
7
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 Chair of Motherless Daughters Australia.
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 until September 2023
Equity Interests (Direct/Indirect)
Nil
ALEXANDER (ALEX) WHITE
Non-Executive Director
Appointed on 3 November 2023
BACKGROUND
Alex is Managing Director of Richmond Hill Capital which is a long-term substantial shareholder of
Experience Co. Alex has over 15 years of corporate and investment management experience with previous
roles as a Portfolio Manager at Viburnum Funds and Analyst at Cooper Investors.
Alex is currently a Non-Executive Director of Coventry Group
Listed Company Directorships in last 3 years
Coventry Group (ASX: CYG)
HRL Holdings Limited (ASX: HRL) - Non-Executive Director until August 2022
MOQ Digital Limited (ASX: MOQ) – Non-Executive Director until November 2022
Equity Interests (Indirect)
112,181,229 Ordinary Shares
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 and oversaw a period of record growth of
international visitation and expenditure to Australia.
John is the Chair of Tourism Tropical North Queensland and Non-Executive Director of Luxury Lodges of
Australia. John 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)
3,322,009 Ordinary shares
8,441,058 Performance Rights over Ordinary Shares
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ REPORT
8
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 2024.
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
Neil Cathie
Independent Non-Executive Director
Michelle Cox
Independent Non-Executive Director
Anthony Boucaut
Non-Executive Director
Alexander (Alex) White
Non-Executive Director (Appointed 3 November 2023)
John O’Sullivan
Chief Executive Officer and Executive Director
DIRECTORS’ MEETINGS
The number of Board meetings and Board Committee meetings held 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
14
14
2
2
2
2
Anthony Boucaut
14
14
NA
NA
NA
NA
Neil Cathie
14
14
2
2
2
2
Michelle Cox
14
14
2
2
2
2
Alex White
14
71
NA
NA
NA
NA
John O’Sullivan
14
14
NA
NA
NA
NA
1Alex White appointed 3 November 2023
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 include tandem skydiving in Australia and New Zealand, tours to the Great Barrier Reef and Daintree
region, nature-based walking and lodge experiences and high rope and zipline aerial adventures.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ REPORT
9
Group Financial Performance
30 June
30 June
% change
2024
2023
$000
$000
Revenue
127,040
108,596
17%
Underlying EBITDA1
14,384
11,311
27%
Net loss after tax
(71)
(542)
n/a
Net (debt) /cash2
(8,944)
(6,803)
n/a
1 Underlying EBITDA is presented including the application of AASB 16. Refer to Note 2 to the audited financial statements.
2 Refer to note 18 for the calculation of Net (debt) /cash.
Revenue in the period increased to $127.0 million, a 17% increase (30 June 2023: $108.6 million) principally driven by volume
improvement in the Skydiving segment along with continued growth in the Adventure Experiences segment. The group
was able to achieve this despite the impact of Tropical Cyclone Jasper and other significant weather events during Q4 24
affecting Treetops Adventure and Skydive Australia.
Skydiving revenue increased with volumes increasing to 64% of pre-pandemic levels by Q4 24. Our Australian skydiving
operations reported 76k tandem PAX in FY24 (FY23: 66k), as we maintained our market leadership position and were able
to leverage our leading drop zone locations. Pleasingly our NZ skydiving operations reported 38k tandem PAX for the
period and in Q4 24 alone reported ~73% of pre-pandemic volumes as international volumes continued to increase.
The Adventure Experiences segment remained the largest contributor to the Group driven primarily by the Reef
Unlimited performance. Despite significant weather impacts during key trading periods both Reef Unlimited and
Treetops Adventure had increased revenue on a PCP basis. The Wild Bush Luxury business unit revenue was down on
PCP mainly due to the impacts of Australians travelling overseas.
Throughout the year, the group benefitted from the continued recovery of international markets both in Australia and
New Zealand. Pleasingly in New Zealand, Queenstown outperformed pre-pandemic levels of visitation. In Australia most
of the key inbound markets are at or above 70% of pre-pandemic visitation with the exception of China which is still at
only 54%. Management will continue to monitor the impacts of ongoing macroeconomic conditions particularly on the
Skydiving segment.
BALANCE SHEET
The Group reported net assets of $128.9 million at 30 June 2024 (30 June 2023: $129.0 million).
The Group’s balance sheet was strengthened with it entering into a new multi-year secured debt facility with
Commonwealth Bank of Australia in December 2023. This facility replaces the previous National Australia Bank facility
and provides the Group with optionality for growth and working capital facilities.
The Group’s continues to implement its strategy of ensuring that it maintains a balance sheet allowing it to navigate the
ongoing international recovery and domestic macroeconomic trading conditions.
INVESTMENT
Growth
Treetops Canberra opening
Consistent with the Group’s growth strategy for our Treetops Adventure portfolio, the Group opened Treetops Canberra
in April 2024. Management continues to progress the development of additional new sites identified in critical locations
such as South East Queensland and Victoria.
Hangar 5 – Shellharbour Airport
During the year, the Group agreed to terms to purchase the operational premises of Performance Aviation Australia from
Anthony Boucaut for $1.3m. This acquisition was completed on 12 July 2024 and will provide Performance Aviation
Australia with a permanent base at Shellharbour Airport which is considered a key operational site for Skydive Australia.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ REPORT
10
OUTLOOK
The Group maintains a positive trading outlook for FY25 driven primarily by continued recovery of inbound tourist
numbers to Australia and New Zealand as well as the anticipated improvement in domestic economic conditions in both
countries. The Group’s view on longer term earnings potential remains unchanged with the key sensitivity being the
performance of domestic markets and return of international visitors.
Due to continued macroeconomic uncertainty EXP is not providing earnings guidance for FY25.
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
In July 2024, the Group purchased interests in a hangar facility and related equipment located at Shellharbour Airport,
NSW for $1,350,000 from entities controlled by Anthony Boucaut (Director). The Group’s aircraft maintenance operations
currently utilise the hangar facility and the Group negotiated terms to acquire the interests following an assessment of
the Group’s future aircraft maintenance requirements.
There have been no other significant subsequent events since the end of the period.
OPTIONS AND RIGHTS
In 2015, a total of 10,300,000 options were granted to former KMP under the STB Share Option Plan to take up ordinary
shares at an exercise price of $0.25 each. 3,000,000 options are held by Anthony Boucaut (currently Non-Executive
Director) and the balance of 7,300,000 options are held by former KMP who are no longer with the Group. These options
expire on 9 February 2025. No share options were exercised during the period.
Details on options and rights are set out in the Remuneration Report for Key Management Personnel (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 2024 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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ REPORT
11
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.
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 Chair
Dated: 21 August 2024
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
12
INTRODUCTION, REMUNERATION POLICY AND GOVERNANCE
The Directors of EXP are pleased to present the Remuneration Report for the Group’s Key Management Personnel (KMP)
for the financial year ended 30 June 2024 which aims to provide shareholders with an understanding of EXP’s
remuneration strategies and outcomes for the period.
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.
The report outlines the remuneration components for KMP designed to retain, motivate, and attract high performing
Senior Executives who are committed to achieving the Group's strategic goals and whose interests are aligned with
growth in shareholder value.
To achieve this the Group sets market competitive remuneration comprising a mix of fixed remuneration, Short-Term
Incentives (STI) (to reward achievement of annual key performance targets), and Long-Term Incentives (LTI) (to reward
achievement of goals aligned to the longer-term performance of the Group and shareholder value creation). Details of
the remuneration components are outlined on page 14 and 15.
The Board has an established Remuneration and Nomination Committee (Remco). The members of the Remco comprise
three Independent Non-Executive Directors – Bob East (Chair), Neil Cathie and Michelle Cox. The Remco is tasked with
overseeing the Group’s remuneration framework for Senor Executives to ensure they align with the Company’s strategic
goals, values and culture for the long-term sustainable growth of the business.
The Remco reviews Senior Executive remuneration packages including STI and LTI annually with reference to relevant
comparable industry information, the Group’s financial and strategic performance targets and the performance of the
individual.
The Group’s remuneration approach is designed to ensure the Group’ s remuneration structures:
•
Are aligned to the business needs, values and objectives
•
Are fair, competitive and comparable to industry and roles
•
Motivate, attract and retain Senior Executives
•
Promote long-term sustainable growth in the business and shareholder value
STI’s are tied to short-term performance and goals with financial and non-financial targets aligned to the strategic
objectives of the Group. Additional information including FY24 Executive KMP STI outcomes is provided on page 16.
The EXP Employee Incentive Plan (EEIP) is designed with flexibility to award Senior Executives equity incentives in the
form of performance rights, service rights or options. The EEIP aligns the interests of Senior Executives with the sustained
performance and growth of the business by awarding longer-term performance with equity ownership. Participation in
the EEIP is at the Board’s discretion.
At the 2023 Annual General Meeting, EXP received over 90% of ‘in favour’ votes on its remuneration report for the 2023
financial year.
KEY MANAGEMENT PERSONNEL (KMP)
The KMP for the Group for FY24, are those persons who have the authority and responsibility for planning, directing and
controlling the activities of the Group (directly or indirectly) and includes Non-Executive Directors, Executive Directors
and the Chief Financial Officer (CFO) of the Group.
Directors
Other KMPs
Non-Executive Directors
Bob East, Chair of the Board
Owen Kemp, CFO until 5 February 20242
Neil Cathie
Gavin Yates, CFO appointed on 16 January 20243
Michelle Cox
Anthony Boucaut
Alex White appointed on 3 November 20231
Executive Director and CEO
John O’Sullivan
1 Alex White joined the Board on 3 November 2023. By mutual agreement, no Directors Fees were payable to Alex in FY24. From 1 August 2024, Alex will
receive a Directors Fee (the same Fee as for existing Non-Executive Directors).
2 Remuneration details for Owen Kemp are included in the remuneration report until 5 February 2024 (the date he ceased to be employed by the Group).
3 Remuneration details for Gavin Yates are included in the remuneration report from 16 January 2024 (date of appointment as CFO).
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
13
NON-EXECUTIVE DIRECTOR REMUNERATION
Policy and approach to setting Non-Executive Director Fees
The Board's policy is to remunerate Non-Executive Directors (NED’s) based on market related fees for time, commitment
and responsibilities as NED’s of the Company and to ensure the Group attracts and retains skilled, experienced and
committed individuals to serve on the Board.
Non-Executive Directors receive a director’s fee and fees (inclusive of Superannuation), for chairing or participating on
Board Committees.
Non-Executive Directors do not participate in performance-based remuneration.
Board composition
The Company aims to ensure the Board comprises individuals with the necessary skills and experience to meet the
current and future requirements of the business. Bob East (Chair of the Board and Remuneration and Nomination
Committee), Neil Cathie (Chair of the Audit & Risk Committee), Anthony Boucaut and Michelle Cox served as Non-
Executive Directors for the financial year and up to the reporting date.
Alex White was appointed as Non-Executive Director on 3 November 2023.
No other changes to the composition of the Non-Executive Directors were made during the year.
FY24 Fee Structure
Annual Remuneration1
Role
2024
2023
Chairman
203,010
202,000
Non-Executive Directors2
86,280
85,850
Chair of Committee
15,230
15,150
Member of Committee
5,075
5,050
1 Inclusive of statutory superannuation
2Anthony Boucaut is remunerated $140,000 per annum for Non-Executive Director duties and $30,000 for aviation services exclusive of superannuation
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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
14
EXECUTIVE KMP AND SENIOR EXECUTIVE REMUNERATION
Remuneration for Executive KMPs and Senior Executives comprises three elements:
Fixed Remuneration
Composition
Fixed remuneration comprises salary, superannuation and other fixed elements of
remuneration such as vehicle allowances
Fixed remuneration is delivered in cash, superannuation and other relevant benefits.
Determination
Fixed remuneration is determined based on market comparisons for similar roles taking
into account experience, responsibility of the role and capability to deliver the Group’s
operational and financial performance objectives.
Purpose
Attract and retain Senior Executives with appropriate skills capability and experience to
meet the requirements of the role and the objectives of the Group.
STI Plan
Composition
STI’s may be settled in cash or Deferred Service Rights or any combination thereof, subject
to Board discretion.
Purpose
Motivate and reward for achieving agreed annual objectives (Key Performance Indicators
(KPIs)) aligned with 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
• Up to 55% for the CFO and other Senior Executives.
Performance Period
Performance is measured from 1 July to 30 June of each year.
Performance Measures
STI is awarded annually based on the Group achieving agreed performance targets aligned
with the Group’s strategic objectives including financial and non-financial metrics. Refer
page 16 for information relating to FY24 STI outcome.
Assessment and award of any STI is based on the audited financial results for the
respective financial year and remains at the discretion of the EXP Board.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
15
LTI
Composition
LTI is awarded in the form of Performance Rights with vesting performance measures
determined by the Board at the time of grant. 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 lapse.
Purpose
Drives long-term growth objectives of the business. Aligns the interests of Senior
Executives with the interests of Shareholders.
Participation
Executive KMP and Senior Executives.
Opportunity
Executive KMP
In FY22, Performance Rights were granted
as a lump sum1.
CFO and other Senior Executives2
LTI opportunity is up to 25% of fixed
remuneration.
Performance Measures
Executive KMP1
Vesting performance measures are
determined by the Board at time of grant.
In November 2022, a total of 12,000,000
Performance Rights, subject to
performance conditions aligned with share
price targets and continuous service were
granted to Executive KMP. Refer page 18
for details on Executive KMP Performance
Rights.
CFO and Senior Executives2
Vesting performance measures are
determined by the Board at time of grant.
The performance conditions of the
Performance Rights granted during FY24
are based on:
• Achieving Underlying EBITDA targets
(50% of allocation) for the period 1 July
2023 to 30 June 2026, tested in 3 equal
tranches on an annual basis. The first
testing for vesting will be in September
2024.
Subject to achieving the performance
conditions, any Performance Rights will
only vest at the end of the 3 year
performance period i.e. September 2026;
and
• Achieving return on invested capital (50%
of allocation) over the 3 year performance
period – 1 July 2023 to 30 June 2026.
Delivery
Vesting is conditional upon participants being continuously employed with EXP or an EXP
Group Company until vesting date.
Forfeiture
Any rights 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.
1Includes CFO Owen Kemp until 5 February 2024 (the date he ceased to be employed by the Group)
2Includes CFO Gavin Yates appointed as CFO on 16 January 2024
Executive KMP Employment Conditions
Term of Agreement
Notice Period
Termination Entitlements
John O’Sullivan (CEO)
No definite term
6 months
6 months
Owen Kemp1 (CFO)
No definite term
6 months
6 months
Gavin Yates2 (CFO)
No definite term
3 months
3 months
1Owen Kemp until 5 February 2024
2Gavin Yates appointed on 16 January 2024
Refer to page 18 for the number of granted, vested and lapsed Performance Rights and shares issued to Executive KMP.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
16
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
bonus6
Share
based
payment
expense1
Total
Short
Term
Super-
annuation
Long-
service &
annual
leave
accrual2
Share
based
payment
expense1
Total
Proportion
performance
related
Group KMP
Non-Executive
Directors
Bob East
2024
187,858
-
-
187,858
19,340
-
-
207,198
-
2023
187,858
-
-
187,858
19,725
-
-
207,583
-
Anthony Boucaut 2024
170,000
-
-
170,000
18,131
-
-
188,131
-
2023
170,000
-
-
170,000
17,850
-
-
187,850
-
Neil Cathie
2024
95,881
-
-
95,881
10,547
-
-
106,428
-
2023
95,881
-
-
95,881
10,068
-
-
105,949
-
Michelle Cox
2024
86,750
-
-
86,750
9,543
-
-
96,293
-
2023
86,750
-
-
86,750
9,109
-
-
95,859
-
Alex White3
2024
-
-
-
-
-
-
-
-
-
2023
NA
-
-
-
-
-
-
-
-
Non Executive
Directors
2024
540,489
-
-
540,489
57,561
-
-
598,050
-
2023
540,489
-
-
540,489
56,752
-
-
597,241
-
Executive KMP
John O'Sullivan
2024 540,750 80,500
-
621,250
22,129
(44,757)
250,593
849,215
39%
2023 539,760 123,600
82,529
745,889
28,075
(6,144)
465,694
1,233,514
47%
Owen Kemp4
2024 243,050
-
-
243,050
16,763
(71,409) (278,524)
(90,120)
-
2023
388,627 72,000
62,816
523,443
27,296
9,698
240,115
800,552
39%
Gavin Yates5
2024 127,380 49,500
-
176,880
13,962
(1,281)
3,589
193,150
27%
2023
NA
-
-
-
-
-
-
-
-
Executive KMP
2024
911,180 130,000
- 1,041,180
52,854
(117,447)
(24,342)
952,245
-
2023
928,387 195,600
145,345 1,269,332
55,371
3,554
705,809, 2,034,066
-
Total
2024
1,451,669 130,000
- 1,581,669
110,415
(117,447)
(24,342) 1,550,295
N/A
2023 1,468,876 195,600
145,345 1,809,821
112,123
3,554
705,809
2,631,307
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
3 Alex White appointed 3 November 2023. Directors Fee not payable in FY24. From 1 August 2024, Alex will receive a Directors Fee (the same Fee as for existing Non-Executive
Directors)
4Owen Kemp’s remuneration details are included until 5 February 2024 (the date he ceased to be employed by the Group). FY24 STI is not applicable as STI is subject to
continuous employment at time of payment of STI
5 Gavin Yates appointed CFO on 16 January 2024. Remuneration details included from that date. FY23 comparatives are therefore not applicable
6 2023 reflects cash bonuses paid for FY22; No cash bonus was paid for FY23; 2024 reflects an accrual for FY24 cash bonuses approved by the Board
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
17
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
Other
purchases
Conversion
of
Performance
Rights1
Disposals
Held at
30 June 2023
or date of appointment
30 June 2024
Bob East
2,235,657
-
-
-
2,235,657
Anthony
Boucaut
176,898,814
18,900
-
(1,736,502)
175,181,212
John O’Sullivan
2,346,209
-
975,800
-
3,322,009
Neil Cathie
891,865
-
-
-
891,865
Michelle Cox
NIL
-
-
-
NIL
Alex White2
101,396,786
10,784,443
-
-
112,181,229
Owen Kemp3
1,954,634
-
702,576
-
2,657,210
Gavin Yates4
NIL
-
-
-
NIL
1 Vesting of Performance Rights granted in November 2020 based on achieving the TSR performance condition (50% of the Performance Rights granted).
Vesting was satisfied by the issue of new ordinary shares in the Company.
2Alex White was appointed during the year therefore his opening balance is as at date of appointment.
3The closing balance for Owen Kemp is at 5 February 2024 – the date he ceased to be employed by the Group.
4Gavin Yates became a KMP on 16 January 2024 therefore his opening balance is as at that date.
Options and Performance Rights
Held at
Granted2
Vested and
Exercised3
Lapsed4
Exercise
Price $
Expiry
Date7
30 June 2023
or date of
appointment
Held at 30
June 2024
Options1
Anthony Boucaut
3,000,000
-
-
-
3,000,000
0.25
9-Feb-25
Performance Rights
LTI Performance Rights
John O’Sullivan
11,892,658
-
(975,800) (2,475,800)
8,441,058
Nil
Varies7
Owen Kemp5
5,082,714
-
(702,576) (4,380,138)
Nil
Nil
Gavin Yates6
250,000
-
-
- 250,000
Nil
1 No Options were issued or exercised during the year.
2 Other than 6 below, no other Performance Rights were granted to Executive KMP in FY24.
3 50% of the Performance Rights granted in November 2020 subject to the TSR performance condition vested in September 2023.
4Performance Rights lapsed during the year.
• Lapse of 50% of the Performance Rights granted in November 2020 subject to the Return on Invested Capital performance condition- John O’Sullivan 975,800 Performance Rights and
Owen Kemp 702,576 Performance Rights.
• Lapse of first tranche of the Performance Rights granted to Executive KMP in December 2022 – John O’Sullivan 1,500,000 Performance Rights and Owen Kemp 500,300 Performance
Rights.
• The remaining unvested Performance Rights (3,177,262) held by Owen Kemp on date of ceasing to be employed by the Group lapsed on 5 February 2024.
5The closing balance for Owen Kemp is as at 5 February 2024 being the date he ceased to be employed by the Group.
6Opening balance as at 16 January 2024 (date of appointment as CFO (transition from GM Finance). The Performance Rights were granted in December 2023.
Refer page 18 for details relating to the Performance Rights.
7The expiry dates for the Performance Rights vary from 30 September 2025 to 30 September 2027.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
18
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.
2024
2023
2022
2021
2020
2019
Sales revenue ($'000)
127,040
108,596
55,818
44,453
98,875
161,296
EBITDA ($'000)
15,230
9,969
(5,286)
6,841
5,049
19,265
Underlying EBITDA ($'000)1
14,384
11,311
(2,370)
6,761
9,230
27,183
Net profit/(loss) for the year ($'000)
(71)
(542)
(13,583)
(4,301)
(51,413)
(48,258)
Market capitalisation ($'000)
128,768
177,473
165,500
166,744
69,476
141,730
Dividends paid ($'000)
-
-
-
-
-
5,558
Earnings per share (cents)
(0.01)
(0.07)
(1.94)
(0.86)
(7.14)
(8.68)
Share price at financial year end ($)
0.170
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 2024,2023, 2022, 2021 and 2020 is for continuing operations
and includes the application of AASB 16 Leases.
EXECUTIVE KMP PERFORMANCE RIGHTS KEY INPUTS
FY20
FY21
FY22
FY23
FY24
No. of Performance Rights granted
2,736,668
3,356,752
1,618,620
12,000,00
250,0006
Grant Date
29-Nov-19
16-Nov-20
23-Nov-21
21-Dec-22
22 Dec 23
Share Price at Grant Date
0.265
0.26
0.33
0.23
0.175
Vesting Date
15-Sep-22
15-Sep-23
15-Sep-24
Varies4
20-Sept 26
No. of Performance Rights Vested
-
1,678,3762
-
-
-
No. of Performance Rights
Exercised
-
1,678,376
-
-
NIL
No. of Performance Rights Lapsed
-
1,678,3762
677,5623
4,500,0005
NIL
No. of Performance Rights
Outstanding
-
-
941,058
7,500,000
250,000
Share-based payments expense1
-
($175,528)
($15,787)
$163,384
$3,589
1Share-based payments expense represents the expenses recognised in the year attributable to Performance Rights on issue.
2 50 % of the Performance Rights granted in November 2020 subject to the TSR performance condition vested and 50% of the Performance Rights subject to
Return on Invested Capital performance condition lapsed.
3 Performance Rights lapsed due to CFO Owen Kemp ceasing to be employed by the Group effective 5 February 2024.
4Vesting dates between 30 September 2025 and 30 September 2027.
52,000,300 Performance Rights lapsed due to share price performance targets not met. 2,499,700 Performance Rights lapsed due to CFO Owen Kemp ceasing
to be employed by the Group effective 5 February 2024.
6 Performance Rights granted in December 2023 prior to becoming KMP.
Performance Rights granted in November 2020 subject to Total Shareholder Return (TSR) (50% of grant) and Return on
Invested Capital (ROIC) (50% of grant) performance conditions were tested for vesting in September 2023. The TSR
performance condition (achieved CAGR TSR based on the 5 day VWAP up to and including 30 June 2023 of 21.826% pa vs
the performance target of CAGR TSR of >17.5%) was achieved and therefore 100% of the Performance Rights subject to
the TSR performance condition vested (a total of 1,678,376 Performance Rights). Vesting was satisfied by the issue of
1,678,376 new ordinary shares in the Company. The ROIC vesting condition was not achieved and therefore the
Performance Rights subject to the ROIC performance condition lapsed (a total of 1,678,376 Performance Rights).
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
REMUNERATION REPORT
19
EXECUTIVE KMP PERFORMANCE RIGHTS KEY INPUTS (CONTINUED)
Designed to align the long-term interests of Executive KMP with that of shareholders, in November 2022, a total of
12,000,000 Performance Rights, subject to long-term share price targets and retention conditions were granted to the
Executive KMP. The first tranche of the Performance Rights (2,000,300) lapsed in September 2023 as the share price
hurdle of 28 cents had not been achieved.
In February 2024 all remaining unvested Performance Rights (4,380,138) held by CFO Owen Kemp automatically lapsed
as he ceased to be employed by the Group.
Other than the Performance Rights (250,000) granted to Gavin Yates in December 2023 (prior to his transition to CFO),
no other Performance Rights were granted to the Executive KMP in FY24.
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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
FINANCIAL REPORT
20
FINANCIAL STATEMENTS
For the year ended 30 June 2024
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
BAMURRU PLAINS | AUSTRALIA
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
21
Notes
30 June 2024
$000
30 June 2023
$000
Sales revenue
127,040
108,596
Cost of sales
(79,822)
(65,541)
Gross profit
47,218
43,055
Other income
3
5,596
2,736
Employee expenses
(17,456)
(18,391)
Depreciation and amortisation expenses
(12,926)
(11,706)
Impairment of property, plant and equipment
13
(2,354)
(591)
Reversal of impairment of property, plant and equipment
13
-
3,280
Marketing and advertising expenses
(3,520)
(3,340)
Repairs and maintenance expenses
(2,427)
(2,480)
Operating expenses
(12,600)
(11,396)
Acquisition-related costs and other significant expenses (net)
4
(1,384)
53
Loss on disposal of assets
(197)
(268)
Net finance costs
5
(1,951)
(1,252)
Loss before income tax
(2,001)
(300)
Income tax expense
6
1,930
(242)
Loss for the year
(71)
(542)
Items that will be reclassified subsequently to profit or loss when
specific conditions are met:
Revaluation of property, plant and equipment, net of tax
13
(446)
4,466
Exchange differences on translating foreign operations, net of
income tax
(38)
(8)
Other comprehensive income/(loss) for the year
(484)
4,458
Total comprehensive income/(loss) for the year
(555)
3,916
Earnings per share
Basic earnings per share (cents)
8
(0.01)
(0.07)
Diluted earnings per share (cents)
8
(0.01)
(0.07)
The accompanying notes form part of these financial statements.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
22
The accompanying notes form part of these financial statements.
As at
As at
30 June 2024
30 June 2023
Notes
$000
$000
Assets
Current assets
Cash and cash equivalents
9
8,244
8,587
Trade and other receivables
10
4,395
3,612
Inventories
5,196
4,870
Other assets
11
2,697
2,923
Total current assets
20,532
19,992
Non-current assets
Property, plant and equipment
13
91,588
94,440
Asset under construction
2,072
2,281
Right-of-use assets
12
17,005
15,828
Deferred tax assets
6
14,585
11,687
Intangible assets
14
46,253
46,568
Total non-current assets
171,503
170,804
Total assets
192,035
190,796
Liabilities
Current liabilities
Trade and other payables
15
11,048
10,893
Borrowings
16
2,005
-
Lease liabilities
12
2,925
4,346
Employee benefits
3,476
3,333
Current tax liability
6
767
-
Deferred Consideration
1,075
2,195
Contract liabilities
10,862
11,733
Total current liabilities
32,158
32,500
Non-current liabilities
Borrowings
16
15,183
9,210
Lease liabilities
12
15,470
18,779
Employee benefits
282
196
Provisions
-
72
Deferred Consideration
-
1,075
Total non-current liabilities
30,935
29,332
Total liabilities
63,093
61,832
Net assets
128,942
128,964
Equity
Issued capital
18
232,693
232,218
Accumulated losses
(106,304)
(106,864)
Reserves
19
2,553
3,610
Total equity
128,942
128,964
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
23
The accompanying notes form part of these financial statements.
Note
Issued
Capital
Accumulated
Losses
Asset
Revaluation
Reserve
Common
Control
Reserve
Share
Option
Reserve
Foreign
Currency
Translation
Reserve
Total
$000
$000
$000
$000
$000
$000
$000
Balance at 1 July 2022
231,398
(106,322)
1,347
(4,171)
1,879
(210)
123,921
Total comprehensive
income/(loss) for the year
Loss for the year
-
(542)
-
-
-
-
(542)
Other comprehensive
income/(loss) for the year
-
-
4,466
-
-
(8)
4,458
Total comprehensive
income/(loss) for the year
-
(542)
4,466
-
-
(8)
3,916
Transactions with owners, in
their capacity as owners, and
other transfers
Transfer to Issued capital
820
-
-
-
(820)
-
-
Options issued during the year
17
-
-
-
-
1,127
-
1,127
Total transactions with owners
and other transfers
820
-
-
-
307
-
1,127
Balance at 30 June 2023
232,218
(106,864)
5,813
(4,171)
2,186
(218)
128,964
Balance at 1 July 2023
232,218
(106,864)
5,813
(4,171)
2,186
(218)
128,964
Total comprehensive
income/(loss) for the year
Loss for the year
-
(71)
-
-
-
-
(71)
Transfer from revaluation reserve
for disposed asset
-
631
-
-
-
-
631
Other comprehensive
income/(loss) for the year
-
-
(446)
-
-
(38)
(484)
Total comprehensive
income/(loss) for the year
-
560
(446)
-
-
(38)
76
Transactions with owners, in
their capacity as owners, and
other transfers
Performance rights exercised
475
-
-
-
(475)
-
-
Options issued/(expired) during
the year (net)
17
-
-
-
-
(98)
-
(98)
Total transactions with owners
and other transfers
475
-
-
-
(573)
-
(98)
Balance at 30 June 2024
232,693
(106,304)
5,367
(4,171)
1,613
(256)
128,942
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF CASH FLOW
24
The accompanying notes form part of these financial statements.
30 June 2024
30 June 2023
Note
$000
$000
Operating activities
Receipts from customers (GST inclusive)
143,750
116,300
Interest received
201
128
Payments to suppliers and employees (GST inclusive)
(130,370)
(105,341)
Finance costs
(2,070)
(1,366)
Income tax refund/payment
-
-
Net cash provided by operating activities
22
11,511
9,721
Investing activities
Sale of property, plant and equipment
79
744
Proceeds from grant contribution to assets under construction
-
-
Payments for assets under construction
(1,604)
(2,280)
Purchase of property, plant and equipment
(7,944)
(12,764)
Payments for purchase of businesses
(1,195)
(400)
Net cash used in investing activities
(10,664)
(14,700)
Financing activities
Issued shares
-
-
Proceeds from borrowings
18,697
2,323
Repayment of borrowings
(10,730)
(2,203)
Repayment of principal component of leases liabilities
(9,157)
(4,871)
Net cash used in financing activities
(1,190)
(4,751)
Net decrease in cash held
(343)
(9,730)
Cash and cash equivalents at beginning of the period
8,587
18,317
Cash and cash equivalents at end of the period
9
8,244
8,587
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
25
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 2024 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 2023, except for the
adoption of new standards effective as of 1 July 2023. 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 2024. 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 $2.0 million for the year ended 30 June 2024 (30 June 2023: $0.3 million loss
before tax). The Group had net current liabilities of $11,626,000 (30 June 2023: $12,508,000).
The Directors believe that it is reasonably foreseeable that the Group will continue as a going concern and that it is
reasonable to adopt the going concern basis in the preparation of the financial report after consideration of the
following factors:
•
The Group has a cash and cash equivalents balance of $8,244,000 at 30 June 2024 and net assets of $128,942,000.
•
The Group reported net cash inflows from operating activities of $11,511,000 for the year ended 30 June 2024.
•
The Group entered into a new secured debt facility with CBA in December 2023 which replaced its secured debt
facility with NAB. As at 30 June 2024, the Group had undrawn facilities in excess of $15 million (see Note 16).
•
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.
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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
26
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:
•
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 over the acquisition date fair value of identifiable net assets
acquired.
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 derecognises 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 and 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.
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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
27
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:
INTANGIBLE ASSETS
GOODWILL
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.
ASSET CLASS
DEPRECIATION RATE
RESIDUAL VALUE (%)
Aircraft frames
5%
Specific to aircraft
Aircraft engines
Operating hours
Specific to aircraft
Motor vehicles
10%
0%
Buildings
2.5%
0%
Leasehold improvements
2.5%
0%
Office equipment
25%
0%
Vessels and Pontoons
3% - 20%
0% - 30%
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
28
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 of 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 and a reliable estimate can be made
of the amount of 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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
29
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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
30
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.
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: comprises Reef Unlimited with reef-based dive and snorkel experiences and rainforest
tours operating out of Cairns and Port Douglas; Treetops Adventure which is 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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
31
NOTE 2 OPERATING SEGMENTS (CONTINUED)
OPERATING SEGMENT INFORMATION
Skydiving
Adventure
Experiences
Corporate
Group
30 June 2024
$000
$000
$000
$000
Sales to external customers at a point in time
62,054
64,969
17
127,040
Sales revenue
62,054
64,969
17
127,040
Other income
2,921
2,675
-
5,596
Total segment revenue
64,975
67,644
17
132,636
EBITDA
9,345
13,455
(7,570)
15,230
Acquisition-related costs and other significant
expenses (net)
673
615
96
1,384
Significant aircraft insurance recovery
(2,329)
-
-
(2,329)
Share-based payments
-
-
(98)
(98)
Net gain/loss on sale of assets
188
9
-
197
Underlying EBITDA
7,877
14,079
(7,572)
14,384
EBITDA
9,345
13,455
(7,570)
15,230
Depreciation and amortisation
(4,836)
(7,227)
(863)
(12,926)
Segment profit/(loss) before financial income and
taxes
4,509
6,228
(8,433)
2,304
Total assets as at 30 June 2024
47,358
99,121
45,556
192,035
Total liabilities as at 30 June 2024
(33,616)
(20,937)
(8,540)
(63,093)
Skydiving
Adventure
Experiences
Corporate
Group
30 June 2023
$000
$000
$000
$000
Sales to external customers at a point in time
47,982
60,597
17
108,596
Sales revenue
47,982
60,597
17
108,596
Other income
494
2,192
50
2,736
Total segment revenue
48,476
62,789
67
111,332
EBITDA
3,459
13,414
(6,904)
9,969
Acquisition-related costs and other significant
expenses
363
59
(475)
(53)
Share-based payments
-
-
1,127
1,127
Net gain/loss on sale of assets
273
(5)
-
268
Underlying EBITDA
4,095
13,468
(6,252)
11,311
EBITDA
3,459
13,414
(6,904)
9,969
Depreciation and amortisation
(3,945)
(6,952)
(809)
(11,706)
Segment profit/(loss) before financial income and
taxes
(486)
6,462
(7,713)
(1,737)
Total assets as at 30 June 2023
45,798
101,074
43,924
190,796
Total liabilities as at 30 June 2023
(26,909)
(20,757)
(14,166)
(61,832)
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
Australia
New Zealand
Total
Revenue
30 June 2024
105,179
21,861
127,040
30 June 2023
95,309
13,287
108,596
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
32
NOTE 2 OPERATING SEGMENTS (CONTINUED)
A reconciliation of profit / (loss) to Underlying EBITDA is as follows:
30 June 2024
30 June 2023
$000
$000
Loss for the year
(71)
(542)
Finance costs
1,951
1,252
Depreciation and amortisation
12,926
11,706
Impairment
2,354
(2,689)
Income tax benefit/(expense)
(1,930)
242
EBITDA
15,230
9,969
Acquisition-related costs and other significant expenses (see Note
4)
1,384
(53)
Significant aircraft insurance recovery
(2,329)
-
Share-based payments
(98)
1,127
Profit on disposal of assets
197
268
Underlying EBITDA
14,384
11,311
NOTE 3 OTHER INCOME
30 June 2024
30 June 2023
$000
$000
Training & education grants
484
383
Diesel fuel rebate
951
721
Insurance Recoveries1
2,686
377
Environmental projects and other marine subsidies
652
282
Sales of internally generated assets
222
428
Other
601
545
5,596
2,736
1On 20 October 2023, one of the Company’s aircraft operated by Skydive Australia undertook a forced landing which
resulted in significant damage to the aircraft. The aircraft was insured for a value which approximated its carrying value
at the time of the incident. Insurance recoveries above includes $2,329,000 in relation to the claim lodged by the
Company under the Company’s relevant insurance policy. An impairment of the carrying value of the aircraft of
$2,354,000 was recognised during the reporting period (refer Note 13).
NOTE 4 ACQUISITION-RELATED COSTS AND OTHER SIGNIFICANT EXPENSES
30 June 2024
30 June 2023
$000
$000
Acquisition-related deferred consideration1
1,000
570
Acquisition-related costs
(783)
(96)
Restructuring costs
(581)
(365)
Legal settlement cost
(600)
-
Other (net)
(420)
(56)
Acquisition-related costs and other significant expenses
(1,384)
53
Acquisition-related costs and other significant expenses in the period include a number of non-recurring items,
principally due to acquisition-related transaction costs, restructuring costs and a legal settlement.
1Acquisition-related deferred consideration reflects the Directors’ assessment of the change in fair value in the period of
deferred/contingent consideration liabilities recognised as part of prior acquisitions. The Directors’ assessment is based
on consideration of relevant facts and circumstances at the reporting date in relation to the likelihood of a payment by
the Company of the deferred/contingent consideration.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
33
NOTE 5 NET FINANCE COSTS
30 June 2024
30 June 2023
$000
$000
Interest income
201
128
Amortisation borrowing costs
(83)
(13)
Interest expense - borrowings
(979)
(382)
Interest expense - asset finance leases
(196)
(369)
Interest expense - other leases
(777)
(603)
Other
(117)
(13)
Finance expense
(2,152)
(1,380)
Net finance costs
(1,951)
(1,252)
NOTE 6 INCOME TAXES
COMPONENTS OF INCOME TAX EXPENSE/(BENEFIT)
30 June 2024
30 June 2023
$000
$000
Current tax
767
-
Deferred tax
(2,023)
87
Under provision/(overprovision) prior year
(674)
155
Income tax expense/(benefit)
(1,930)
242
RECONCILIATION OF EFFECTIVE TAX RATE
30 June 2024
30 June 2023
$000
$000
Loss before income tax
(2,001)
(300)
Income tax using the Company’s tax rate of 30%
(600)
(101)
Non-allowable items
20
378
Non-deductible impairment
406
-
Abnormal items
-
(152)
Recognition of other deferred tax balances
(1,008)
(92)
Deductible acquisition costs
-
64
Under and Over Provision
(674)
155
Effect of lower tax rate attributable to foreign controlled entities
(74)
(10)
Income tax expense/(benefit)
(1,930)
242
RECOGNISED DEFERRED TAX ASSETS AND LIABILITIES
Assets
Liabilities
30 June 2024
30 June 2023
30 June 2024
30 June 2023
$000
$000
$000
$000
Property, plant & equipment
-
-
(7,507)
(8,891)
Intangible assets
37
87
-
-
Lease liability
410
328
-
-
Provisions
2,573
2,487
-
-
Capital raising costs
579
585
-
-
Unutilised tax losses
18,226
17,105
-
-
Other
267
-
-
(14)
Tax assets/(liabilities)
22,092
20,592
(7,507)
(8,905)
Set off
(7,507)
(8,905)
Deferred tax asset
14,585
11,687
The Australian tax consolidated group has unutilised carried forward tax losses of $60,747,731 (30 June 2023:
$55,564,727). A deferred tax asset has been recognised in relation to these losses which is expected to be utilised within
5 years.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
34
NOTE 6 INCOME TAXES (CONTINUED)
TAX EFFECTS RELATING TO EACH COMPONENT OF OTHER COMPREHENSIVE INCOME
2024
2023
Before-tax
amount
Tax
(expense)
benefit
Net-of-tax
amount
Before-tax
amount
Tax
(expense)
benefit
Net-of-tax
amount
Consolidated Group
$000
$000
$000
$000
$000
$000
Revaluation of property, plant
and equipment
(636)
190
(446)
6,354
(1,888)
4,466
Exchange differences on
translating foreign operations
6
(2)
4
(11)
3
(8)
(630)
188
(442)
6,343
(1,885)
4,458
NOTE 7 AUDITOR’S REMUNERATION
30 June 2024
30 June 2023
$
$
Audit services
176,500
170,000
Taxation services
146,775
140,420
323,275
310,420
NOTE 8 EARNINGS PER SHARE
30 June 2024
30 June 2023
# Shares
# Shares
Weighted average of shares in year used in basic earnings per share
756,952,371
753,696,122
Weighted average of dilutive options and rights outstanding
19,125,477
15,480,823
Weighted average of ordinary shares in year used in calculating
dilutive earnings per share
775,752,142
769,176,946
$
$
Earnings used in basic and diluted earnings per share
(71)
(542)
Basic earnings per share (cents)
(0.01)
(0.07 )
Diluted earnings per share (cents)
(0.01)
(0.07)
NOTE 9 CASH & CASH EQUIVALENTS
30 June 2024
30 June 2023
$000
$000
Cash at bank and on hand
8,194
8,536
Short term cash deposits
50
51
Cash and cash equivalents
8,244
8,587
NOTE 10 TRADE AND OTHER RECEIVABLES
30 June 2024
30 June 2023
$000
$000
Trade receivables
3,719
3,191
Allowance for expected credit loss
(147)
(190)
3,572
3,001
Other receivables
823
611
Trade and other receivables
4,395
3,612
NOTE 11 OTHER ASSETS
30 June 2024
30 June 2023
$000
$000
Prepayments
2,087
2,219
Other current assets
610
704
Other assets
2,697
2,923
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
35
NOTE 12 RIGHT OF USE ASSETS AND LEASE LIABILITIES
AMOUNTS RECOGNISED IN THE PROFIT OR LOSS
30 June 2024
30 June 2023
$000
$000
Depreciation charge on ROU assets
(3,251)
(2,715)
Interest expense
(777)
(602)
Expense related to out-of-scope leases
(723)
(1,158)
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 3.85% (30 June 2023: 3.46%).
RIGHT OF USE ASSETS
Land &
buildings
Marine Leases
Office
Supplies
Total
$000
$000
$000
$000
Carrying amount at 30 June 2022
14,673
2,716
18
17,406
Additions: New leases
1,084
-
-
1,084
Modifications and re-assessments of leases
54
-
-
54
Less: Depreciation expense
(2,285)
(413)
(18)
(2,716)
Carrying amount at 30 June 2023
13,526
2,303
0
15,828
Additions: New leases
685
-
315
1,000
Modifications and re-assessments of leases
3,377
51
-
3,428
Less: Depreciation expense
(2,834)
(417)
-
(3,251)
Carrying amount at 30 June 2024
14,754
1,937
315
17,005
LEASE LIABILITIES
30 June 2024
30 June 2023
Current
$000
$000
Lease liabilities - ROU assets
(2,925)
(2,027)
Lease liabilities - asset finance
-
(2,320)
(2,925)
(4,346)
Non Current
Lease liabilities - ROU assets
(15,470)
(14,919)
Lease liabilities - asset finance
-
(3,860)
(15,470)
(18,779)
Total
Lease liabilities - ROU assets
(18,395)
(19,946)
Lease liabilities - asset finance
-
(6,180)
Lease Liabilities
(18,395)
(23,126)
Historically included in lease liabilities are amounts in relation to asset finance on specific assets. There were no asset
finance obligations as at 30 June 2024 (30 June 2023: $6.2 million), with the Company’s prior asset finance facility
obligations repaid or refinanced as part of the Company’s new secured debt facility during the period (refer Note 16).
Refer to note 20 for further information on financial instruments.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
36
NOTE 13 PROPERTY PLANT & EQUIPMENT
Land &
Buildings
Plant &
Equipment
Leasehold
Improv. Aircraft
Motor
Vehicles
Office
Equipment Vessels
Total
$000
$000
$000
$000
$000
$000
$000
$000
Cost 1 July 2022
3,579
17,938
5,317 37,782
4,321
2,190
40,165
111,292
Accumulated depreciation
(287)
(8,195)
(1,149) (2,424)
(2,389)
(1,654)
12,759)
(28,857)
Carrying amount 1 July 2022
3,292
9,743
4,168 35,358
1,932
536 27,406
82,435
Additions
103
2,327
2,569
5,618
346
191
1,042
12,196
Depreciation expense
(201)
(2,261)
(523)
(2,073)
(327)
(210)
(2,830)
(8,425)
Disposals
-
(14)
(9)
(890)
(20)
-
-
(933)
Revaluations
-
-
-
6,354
-
-
-
6,354
Impairment
-
-
-
(591)
-
-
-
(591)
Reversal of prior period
impairment
-
-
-
3,280
-
-
-
3,280
Movement in foreign exchange
4
2
31
82
5
-
124
Cost 30 June 2023
3,686
20,217
7,899
47,138
4,507
2,381 42,324
128,152
Accumulated depreciation
(488)
(10,420)
(1,663)
-
(2,571)
(1,864) (16,706)
(33,712)
Carrying amount 30 June 2023
3,198
9,797 6,236
47,138
1,936
517
25,618
94,440
Land &
Buildings
Plant &
Equipment
Leasehold
Improv. Aircraft
Motor
Vehicles
Office
Equipment Vessels
Total
$000
$000
$000
$000
$000
$000
$000
$000
Cost 1 July 2023
3,686
20,217
7,899
47,138
4,507
2,381 42,324
128,152
Accumulated depreciation
(488)
(10,420)
(1,663)
-
(2,571)
(1,864) (16,706)
(33,712)
Carrying amount 1 July 2023
3,198
9,797
6,236
47,138
1,936
517
25,618
94,440
Additions
521
3,059
102
3,425
271
38
1,613
9,029
Depreciation expense
(119)
(2,314)
(538) (2,749)
(324)
(187)
(2,961)
(9,192)
Disposals
-
(26)
-
(239)
(42)
-
-
(307)
Revaluations
-
-
-
-
-
-
-
-
Impairment1
-
-
-
(2,354)
-
-
-
(2,354)
Reversal of prior period
impairment
-
-
-
-
-
-
-
-
Movement in foreign exchange
(1)
(3)
(7)
(16)
(1)
-
-
(28)
Cost 30 June 2024
4,206
23,221
7,993 47,922
4,642
2,419 43,937
134,340
Accumulated depreciation
(607)
(12,708)
(2,200)
(2,717)
(2,802)
(2,051) (19,667)
(42,752)
Carrying amount 30 June 2024
3,599
10,513 5,793
45,205
1,840
368 24,270
91,588
AIRCRAFT VALUATION
The fair value of aircraft is generally subject to a valuation by an independent valuer, with the last revaluation being 30
June 2023. The fair value of aircraft is expected to be determined by an independent valuer at least every three years.
During the intervening period, the directors monitor fair value movements using directors’ valuations. The directors’
valuations are determined on an aircraft by aircraft basis, taking into consideration the condition of the aircraft,
including airframe and engine hours and discussion with independent valuers 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. In the event the fair value is materially different from the most recent
independent valuation, the fair value will be updated to reflect this. The directors have assessed that the fair value of
aircraft is not materially different to the most recent independent valuation.
1During the period, the Company recorded an impairment of $2,354,000 in relation to one of the Company’s aircraft
operated by Skydive Australia which undertook a forced landing on 20 October 2024. Insurance recoveries of
approximately $2,329,000 have been recognised in Other Income in relation to the claim lodged under the insurance
policy (refer Note 3).
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
37
NOTE 14 INTANGIBLE ASSETS
Goodwill Trademarks Computer
Software
Customer
relationships
and other
Leases &
Licences
Total
$000
$000
$000
$000
$000
$000
Cost 1 July 2022
28,801
15,579
2,718
4,090
3,252
54,440
Accumulated amortisation and impairment
-
-
(1,505)
(4,090)
(3,040)
(8,635)
Carrying amount 1 July 2022
28,801
15,579
1,213
-
212
45,805
Additions
563
-
568
-
199
1,330
Amortisation expense
-
-
(530)
-
(37)
(567)
Cost 30 June 2023
29,364
15,579
3,286
4,090
3,451
55,770
Accumulated amortisation and impairment
-
-
(2,035)
(4,090)
(3,077)
(9,202)
Carrying amount 30 June 2023
29,364
15,579
1,251
-
374
46,568
Cost 1 July 2023
29,364
15,579
3,286
4,090
3,451
55,770
Accumulated amortisation and impairment
-
-
(2,035)
(4,090)
(3,077)
(9,202)
Carrying amount 1 July 2023
29,364
15,579
1,251
-
374
46,568
Additions
-
-
156
-
156
Amortisation expense
-
-
(453)
-
(18)
(471)
Cost 30 June 2024
29,364
15,579
3,442
4,090
3,451
55,926
Accumulated amortisation and impairment
-
-
(2,488)
(4,090)
(3,095)
(9,673)
Carrying amount 30 June 2024
29,364
15,579
954
-
356
46,253
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 relevant 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 relevant cash generating unit based on five-
year management projections, with sensitivities noted where acquired goodwill and trademarks are recognised at 30
June 2024 for the relevant CGU:
•
Premium Adventure (Wild Bush Luxury): terminal growth rate of 3.0% and a pre-tax discount rate of 15.0% (30
June 2023: 14.0%). 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 21.4% or a decrease in revenue of 13.7%.
•
Family Adventure (Treetops Adventure): terminal growth rate of 3.0% and a pre-tax discount rate of 15.4% (30
June 2023: 15.0%). 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 18.1% or a decrease in revenue of 9.4%.
NOTE 15 TRADE AND OTHER PAYABLES
30 June 2024
30 June 2023
$000
$000
Trade payables
2,324
2,224
Sundry payables and accrued expenses
7,703
7,709
Insurance premiums financing
1,021
960
Trade and other payables
11,048
10,893
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
38
NOTE 16 BORROWINGS
30 June 2024
30 June 2023
$000
$000
Current
Bank loans (net of capitalised borrowing costs)1
2,005
-
Total current borrowings
2,005
-
Non-current
Government loan2
1,830
1,838
Bank loans (net of capitalised borrowing costs)1
13,353
7,372
Total non-current borrowings
15,183
9,210
Total borrowings
17,188
9,210
Movement:
$000
Carrying amount at 30 June 2023
9,210
Drawdowns (net of capitalised borrowing costs)
16,280
Repayments
(8,295)
FX revaluation
(7)
Carrying amount at 30 June 2024
17,188
1In December 2023, the Group entered into a new secured corporate debt facility with Commonwealth Bank of Australia
(CBA). The CBA facility replaced the Group’s Multi Option Facility Agreement with National Australia Bank (NAB). The
CBA facility limits at 30 June 2024 are:
•
Equipment loan facility: $14.0 million, drawn to $13.1m at 30 June 2024. Facility expiry is December 2028. Principal
and interest payments are payable quarterly.
•
Market rate loan facility: $20.5 million, drawn to $3.0 million at 30 June 2024. Facility expiry is December 2026.
Interest is payable monthly.
•
Asset finance lease facility: $3.0 million revolving subject to annual review, undrawn at 30 June 2024.
•
Other facilities: $5.2 million, comprising working capital (overdraft, credit card) and bank guarantee facilities.
Interest rates on the drawn CBA borrowings range from 6.8% to 7.2% per annum at 30 June 2024. The Group has
entered into a General Security Agreement with CBA for both the Australia and New Zealand operations. CBA holds a
security interest in and over all the secured property of the Group. Additionally, under the Equipment loan facility, CBA
has a first registered charge over 11 of the Group’s aircraft as security.
The CBA facility includes Gross Leverage Ratio and Debt Service Cover Ratio financial covenants.
2The 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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
39
NOTE 17 SHARE BASED PAYMENTS
30 June 2024
30 June 2023
$000
$000
Expenses arising from equity-settled share-based payment
transactions
(98)
1,127
Share-based payment expense
(98)
1,127
OPTIONS
In 2015, a total of 10,300,000 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 options expire on 9 February 2025. No share options were exercised during the
period.
PERFORMANCE 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 $
16 Nov 2020
30 Nov 2024
- 4,508,196
-
2,254,098 (2,254,098)
-
$0.260
N/A
N/A
1,001,038
23 Nov 2021
30 Nov 2025
-
2,464,193
-
-
(1,101,038)
1,363,155
$0.340
N/A
N/A
742,085
21 Dec 2022
30 Sep 2027
- 12,000,000
-
- (4,500,000)
7,500,000
$0.225
74.71%
3.28%
2,700,000
21 Dec 2022
30 Nov 2025
-
1,447,811
-
-
(827,189)
620,622
$0.225
74.71%
N/A
325,757
22 Dec 2023
30 Nov 2026
-
-
1,780,650
-
(657,064)
1,123,586
$0.185
55.00%
3.70%
329,420
The weighted average share price during the financial year was $0.195 (2023: $0.232). The weighted average remaining
contractual life of options outstanding at the end of the financial year was 2.6 years (2023: 2.6 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
30 June
2024
30 June
2023
30 June
2024
30 June
2023
$000
$000
Number
Number
Opening balance
232,218
231,398
755,203,289
752,272,746
Employee share plan/performance rights purchases
-
-
2,254,098
2,930,543
Transfer from option reserve
475
820
-
-
Closing balance
232,693
232,218
757,457,387
755,203,289
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.
30 June 2024
30 June 2023
$000
$000
Borrowings
(17,188)
(9,210)
Amounts outstanding under asset finance
-
(6,180)
Cash and cash equivalents
8,244
8,587
Net (Debt)/Cash
(8,944)
(6,803)
Equity
(128,942)
(128,964)
Total
(137,886)
(135,767)
Gearing ratio
7%
5%
Underlying EBITDA
14,384
11,311
Net Debt to Underlying EBITDA
(0.6x)
(0.6x)
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
40
NOTE 18 CAPITAL (CONTINUED)
DIVIDENDS AND FRANKING ACCOUNT
No dividend was paid or declared during the period (30 June 2023: nil). 30% franking credits available to shareholders
for subsequent periods were $9,334,000 at 30 June 2024 (30 June 2023: $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.
30 June 2024
30 June 2023
$000
$000
Asset revaluation reserve
Opening balance
5,813
1,347
Revaluation gain/(loss) on property, plant & equipment
(446)
4,466
5,367
5,813
Share options reserve
Opening balance
2,186
1,879
Amount recognised in income statement during period
(573)
307
1,613
2,186
Common control reserve
Opening balance
(4,171)
(4,171)
Amounts acquired during period
-
-
(4,171)
(4,171)
Foreign currency translation reserve
Opening balance
(218)
(210)
Translation differences from foreign operations during period
(38)
(8)
(256)
(218)
Reserves
2,553
3,610
NOTE 20 FINANCIAL RISK MANAGEMENT
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.
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.
30 June 2024
30 June 2023
$000
$000
Cash and cash equivalents
8,244
8,587
Trade and other receivables
4,395
3,612
Financial assets
12,639
12,199
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
41
NOTE 20 FINANCIAL RISK MANAGEMENT (CONTINUED)
Cash and cash equivalents
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.
Category 1
Category 2
Category 3 Category 4
Category 5
Total
$000
$000
$000
$000
$000
$000
30 June 2024
Expected credit loss rate
0% >0% to 25%
>25% to 50% >50% to 75% >75% to 100%
Gross balance outstanding ($000)
3,574
-
-
-
146
3,720
Expected credit loss
-
-
-
-
146
146
0%
0%
0%
100 %
4%
30 June 2023
Expected credit loss rate
0%
>0% to 25% >25% to 50% >50% to 75% >75% to 100%
Gross balance outstanding ($000)
2,875
148
16
3
149
3,191
Expected credit loss
-
15
7
-
168
190
10%
44%
0%
113%
6%
a)
Liquidity risk
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.
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
Carrying
amount
Contracted
cash flow
6 months
or less
6 to 12 months
1 to 2 years
More than
2 years
$000
$000
$000
$000
$000
$000
30 June 2024
Government loan
1,830
1,830
-
-
1,830
-
Bank loans
15,358
15,358
982
944
4,149
9,283
Trade and other payables
11,047
11,047
11,047
Lease liabilities
18,395
18,395
1,502
1,471
2,616
12,806
Deferred consideration
1,075
1,075
-
1,075
-
-
Financial liabilities
47,705
47,705
13,531
3,490
8,595
22,089
30 June 2023
Government loan
1,838
1,838
-
-
1,838
-
Bank loans
7,372
7,372
-
-
7,372
Trade and other payables
10,893
10,893
10,893
-
-
-
Lease liabilities
23,125
23,125
2,262
2,084
3,658
15,121
Deferred consideration
3,270
3,270
120
2,075
1,075
Financial liabilities
46,498
46,498
13,275
4,159
13,943
15,121
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
42
NOTE 20 FINANCIAL RISK MANAGEMENT (CONTINUED)
b)
Market Risk
Interest rate risk
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 2024, approximately 10% (30 June
2023: 55%) of the Group’s 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 loans under the secured debt facility with CBA,
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.
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.
Level 1
Level 2
Level 3
Total
$000
$000
$000
$000
30 June 2024
Aircraft
-
-
45,205
45,205
Total assets
-
-
45,205
45,205
30 June 2023
Aircraft
-
-
47,138
47,138
Total assets
-
-
47,138
47,138
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
43
NOTE 21 FAIR VALUE MEASUREMENT (CONTINUED)
AIRCRAFT
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.
Aircraft
Total
$000
$000
Balance at 1 July 2022
35,358
35,358
Additions
5,627
5,627
Disposals
(890)
(890)
Gains recognized in profit or loss
2,689
2,689
Gains recognized in other comprehensive
income
6,337
6,337
Depreciation
(2,073)
(2,073)
Other
90
90
Balance at 30 June 2023
47,138
47,138
Balance at 1 July 2023
47,138
47,138
Additions
3,425
3,425
Disposals
(239)
(240)
Gains recognized in profit or loss
-
-
Gains recognized in other comprehensive
income
(2,354)
(2,353)
Depreciation
(2,749)
(2,749)
Other
(16)
(16)
Balance at 30 June 2024
45,205
45,205
NOTE 22 CASH FLOW INFORMATION
30 June 2024
30 June 2023
$000
$000
Loss after income tax
(71)
(542)
Non-cash items in profit or loss
Depreciation and amortisation
12,927
11,706
Impairment
2,354
(2,689)
One-off items – non-cash
(962)
1,357
Net loss on sale of assets
197
268
Unrealised foreign currency exchange gains/(losses)
19
(145)
14,464
9,955
Changes in assets and liabilities:
(Increase)/Decrease in trade and other receivables
(1,654)
(3,155)
Decrease in other current assets
93
952
(Increase) in inventories
(326)
(356)
Decrease in trade and other payables
909
39
(Increase) in income taxes payable
793
10
Decrease/(Increase) in deferred taxes payable
(2,925)
2,051
Decrease in provisions
157
225
Cash flows from operating activities
11,511
9,721
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
44
NOTE 23 RELATED PARTY DISCLOSURES
RELATED PARTIES
The Group’s related parties are as follows:
•
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
30 June 2024
30 June 2023
$
$
Short-term employee benefits
1,464,222
1,668,030
Post-employment benefits
110,415
112,123
Share-based payments
(24,342)
851,154
Total KMP remuneration
1,550,295
2,631,307
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.
30 June 2024
30 June 2023
$
$
Property leases and outgoings
391,983
350,392
Asset acquisitions
260,000
2,206,686
Related party expenses
651,983
2,557,078
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
During the period, the Group paid a deposit of $260,000 to entities controlled by Anthony Boucaut (Director) in relation
to the purchase of interests in a hangar facility and related equipment located at Shellharbour Airport, NSW (refer Note
24).
NOTE 24 SUBSEQUENT EVENTS
In July 2024, the Group purchased interests in a hangar facility and related equipment located at Shellharbour Airport,
NSW for $1,350,000 from entities controlled by Anthony Boucaut (Director). The Group’s aircraft maintenance
operations currently utilise the hangar facility and the Group negotiated terms to acquire the interests following an
assessment of the Group’s future aircraft maintenance requirements.
There have been no other significant subsequent events since the end of the period.
NOTE 25 CONTINGENT ASSETS AND LIABILITIES
As at 30 June 2024, the Group had drawn bank guarantees amounting to $1,784,516 (30 June 2023: $1,626,863).
There are no other contingent liabilities or assets requiring disclosure as at the date of this report.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
45
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
2024
2023
Aircraft Maintenance Centre Pty Ltd
Australia
100%
100%
Australia Skydive Pty Ltd
Australia
100%
100%
B & B No 2 Pty Ltd
Australia
100%
100%
Bill & Ben Investments Pty Ltd
Australia
100%
100%
Skydive Holdings Pty Ltd
Australia
100%
100%
Skydive the Beach and Beyond Airlie Beach Pty Ltd
Australia
100%
100%
Skydive the Beach and Beyond BB Pty Ltd
Australia
100%
100%
Skydive the Beach and Beyond Central Coast Pty Ltd
Australia
100%
100%
Skydive the Beach and Beyond Great Ocean Road Pty Ltd
Australia
100%
100%
Skydive the Beach and Beyond Hunter Valley Pty Ltd
Australia
100%
100%
Skydive the Beach and Beyond Melbourne Pty Ltd
Australia
100%
100%
Skydive the Beach and Beyond Newcastle Pty Ltd
Australia
100%
100%
SBB Trading Pty Ltd
Australia
100%
100%
Skydive the Beach and Beyond Sydney Wollongong Pty Ltd
Australia
100%
100%
Skydive the Beach and Beyond Yarra Valley Pty Ltd
Australia
100%
100%
Skydive.com.au Pty Ltd
Australia
100%
100%
STBAUS Pty Ltd
Australia
100%
100%
Skydive International Holdings Pty Ltd
Australia
100%
100%
Skydive Investments Pty Ltd
Australia
100%
100%
Raging Thunder Pty Ltd
Australia
100%
100%
Fitzroy Island Ferries Pty Ltd
Australia
100%
100%
Fitzroy Island Pty Ltd
Australia
100%
100%
Martheno Pty Ltd
Australia
100%
100%
ILB Pty Ltd
Australia
100%
100%
Reef Magic Cruises Pty Ltd
Australia
100%
100%
Calypso Reef Charters Pty Ltd
Australia
100%
100%
Fish for Fish Investments Pty Ltd
Australia
100%
100%
Experience Daintree Pty Ltd
Australia
100%
100%
J & J Wallace (Holdings) Pty. Ltd
Australia
100%
100%
J & J Wallace (Projects) Pty Ltd
Australia
100%
100%
J & J Wallace (Tours) Pty Ltd
Australia
100%
100%
J & J Wallace (Permits) Pty. Ltd
Australia
100%
100%
Experience Marine Pty Ltd
Australia
100%
100%
Experience Co Admin Pty Ltd
Australia
100%
100%
Experience Co Admin QLD Pty Ltd
Australia
100%
100%
Skydive Australia Collections Pty Ltd
Australia
100%
100%
Wild Bush Luxury Experience Pty Ltd
Australia
100%
100%
Capital Jet Engineering Pty Ltd
Australia
100%
100%
Skydive Shellharbour Pty Ltd
Australia
100%
100%
Australian Jump Pilot Academy Pty Ltd
Australia
100%
100%
There by Air Pty Ltd
Australia
100%
100%
Canopy Adventure Pty Ltd
Australia
100%
100%
Canopy Adventure Yanchep Pty Ltd
Australia
100%
100%
TATPP Pty Ltd
and as Trustee for the TATPP Unit Trust
Australia
100%
100%
Trees Adventure Holdings Pty Ltd
Australia
100%
100%
Trees Adventure Pty Ltd
Australia
100%
100%
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS
46
NOTE 26 CONTROLLED ENTITIES (CONTINUED)
PRINCIPAL PLACE
OF BUSINESS
OWNERSHIP
INTEREST
NAME OF SUBSIDIARY
2024
2023
Trees Canberra Pty Ltd 1
Australia
100%
-
Trees Central Coast Pty Ltd
Australia
100%
100%
Trees Kuringai Pty Ltd
Australia
100%
100%
Trees Mosman Pty Ltd
Australia
100%
100%
Trees Newcastle Pty Ltd
Australia
100%
100%
Trees Nowra Pty Ltd
Australia
100%
100%
Trees Pennant Hills Pty Ltd
Australia
100%
100%
Trees Sunshine Pty Ltd
Australia
100%
100%
Trees Western Sydney Pty Ltd
Australia
100%
100%
Trees Yarramundi Pty Ltd
Australia
100%
100%
Trees Yeodene Pty Ltd
Australia
100%
100%
Treetop Adventure Australia Pty Ltd
Australia
100%
100%
Treetop Adventures Holdings Pty Ltd
Australia
100%
100%
Trees Coffs Harbour Pty Ltd
Australia
100%
100%
Treetops Cape Tribulation Pty Ltd
Australia
100%
100%
Experience Co NZ Holdings Limited
New Zealand
100%
100%
Skydive Queenstown Limited
New Zealand
100%
100%
Ultimate Adventure Group Ltd
New Zealand
100%
100%
Parachute Adventure Queenstown Limited
New Zealand
100%
100%
Skydive Wanaka Limited
New Zealand
100%
100%
Performance Aviation (New Zealand) Limited
New Zealand
100%
100%
Skydive (New Zealand) Ltd
New Zealand
100%
100%
1 New entity during the year
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.
30 June 2024
30 June 2023
$000
$000
Profit/(loss) for the period
(6,057)
(9,278)
Other comprehensive income
-
-
Total comprehensive income for the period after tax
(6,057)
(9,278)
Current assets
3,916
16,991
Non-current assets
194,805
191,141
Total assets
198,721
208,132
Current liabilities
6,143
7,487
Non-current liabilities
14,274
19,429
Total liabilities
20,417
26,916
Issued capital
231,789
231,186
Retained earnings
(57,367)
(51,310)
Reserves
999
1,341
Total Equity
175,421
181,217
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.
In FY24 a number of registered entities had equity transferred to the parent entity totalling ($2,883)
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
47
The following information is provided pursuant to section 295(3A) of the Corporations Act 2001.
NAME OF SUBSIDIARY
TYPE OF ENTITY
TRUSTEE /
JV PARTNER /
JV PARTICIPANT
PLACE OF
INCORPORATION
/ FORMATION
OWNERSHIP
INTEREST
AUSTRALIAN
OR FOREIGN
TAX
RESIDENT
Aircraft Maintenance Centre Pty
Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Australia Skydive Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
B & B No 2 Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Bill & Ben Investments Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive Holdings Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive the Beach and Beyond
Airlie Beach Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive the Beach and Beyond BB
Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive the Beach and Beyond
Central Coast Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive the Beach and Beyond
Great Ocean Road Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive the Beach and Beyond
Hunter Valley Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive the Beach and Beyond
Melbourne Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive the Beach and Beyond
Newcastle Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
SBB Trading Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive the Beach and Beyond
Sydney Wollongong Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive the Beach and Beyond
Yarra Valley Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive.com.au Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
STBAUS Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive International Holdings Pty
Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive Investments Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Raging Thunder Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Fitzroy Island Ferries Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Fitzroy Island Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Martheno Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
ILB Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Reef Magic Cruises Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Calypso Reef Charters Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Fish for Fish Investments Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Experience Daintree Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
J & J Wallace (Holdings) Pty. Ltd.
Body Corporate
Not applicable
Australia
100%
Australian
J & J Wallace (Projects) Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
J & J Wallace (Tours) Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
J & J Wallace (Permits) Pty. Ltd.
Body Corporate
Not applicable
Australia
100%
Australian
Experience Marine Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Experience Co Admin Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Experience Co Admin QLD Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive Australia Collections Pty
Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Wild Bush Luxury Experience Pty
Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Capital Jet Engineering Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Skydive Shellharbour Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Australian Jump Pilot Academy Pty
Ltd
Body Corporate
Not applicable
Australia
100%
Australian
There by Air Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Canopy Adventure Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Canopy Adventure Yanchep Pty
Ltd
Body Corporate
Not applicable
Australia
100%
Australian
TATPP Pty Ltd
Body Corporate
Trustee
Australia
100%
Australian
TATPP Unit Trust
Trust
Not applicable
Australia
100%
Australian
Trees Adventure Holdings Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Adventure Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
48
CONSOLIDATED ENTITY DISCLOSURE STATEMENT (CONTINUED)
NAME OF SUBSIDIARY
TYPE OF ENTITY
TRUSTEE /
JV PARTNER /
JV PARTICIPANT
PLACE OF
INCORPORATION
/ FORMATION
OWNERSHIP
INTEREST
AUSTRALIAN
OR FOREIGN
TAX
RESIDENT
Trees Canberra Pty Ltd1
Body Corporate
Not applicable
Australia
100%
Australian
Trees Central Coast Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Coffs Harbour Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Kuringai Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Mosman Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Newcastle Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Nowra Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Pennant Hills Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Sunshine Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Western Sydney Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Yarramundi Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Trees Yeodene Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Treetop Adventure Australia Pty
Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Treetop Adventures Holdings Pty
Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Treetops Cape Tribulation Pty Ltd
Body Corporate
Not applicable
Australia
100%
Australian
Experience Co NZ Holdings
Limited
Body Corporate
Not applicable
New Zealand
100%
Foreign /
New Zealand
Skydive Queenstown Limited
Body Corporate
Not applicable
New Zealand
100%
Foreign /
New Zealand
Ultimate Adventure Group Ltd
Body Corporate
Not applicable
New Zealand
100%
Foreign /
New Zealand
Parachute Adventure Queenstown
Limited
Body Corporate
Not applicable
New Zealand
100%
Foreign /
New Zealand
Skydive Wanaka Limited
Body Corporate
Not applicable
New Zealand
100%
Foreign /
New Zealand
Performance Aviation (New
Zealand) Limited
Body Corporate
Not applicable
New Zealand
100%
Foreign /
New Zealand
Skydive (New Zealand) Limited
Body Corporate
Not applicable
New Zealand
100%
Foreign /
New Zealand
1 New entity during the year
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
DIRECTORS’ DECLARATION
49
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 2024 and of its
performance for the period ended on that date.
2
The Consolidated Entity Disclosure Statement is true and correct.
3
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
Chair
Dated: 21 August 2024
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
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 2024, 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
G N Sherwood
Partner
Sydney, NSW
Dated: 21 August 2024
50
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
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 2024, 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 material accounting policy
information, the consolidated entity disclosure statement and the directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group's financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(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 (including independence standards) (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We 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.
51
Key Audit Matter
How our audit addressed this matter
Recognition of Revenue
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.
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
considers sales as a key performance measure
which could create an incentive for sales to be
recognised before the services have been
provided.
•
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 advance bookings
in respect of management’s assessment of the
likelihood that the advance bookings and gift
vouchers will result in a tandem jump occurring.
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 the related systems
processes for quantifying and recording revenue
and deferred revenue.
•
Considered the adequacy of the Group’s revenue
recognition policies and assessing them for
compliance with Australian Accounting Standards.
•
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
deferred
revenue
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, judgements, and calculations in
accordance with AASB 15.
•
Assessing 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.
52
Recoverability of Deferred Tax Assets
Refer to Note 6 in the financial statements
The Australian tax consolidated group has unutilised
carried forward tax losses of $60,747,731 (30 June
2023: $57,824,831). The deferred tax asset that has
been raised in relation to these tax losses amounts
to $18,224,319 of the total deferred tax asset balance
of $23,742,577 as at 30 June 2024. These losses are
expected to be utilised within 5 years based on
projections and forecasts compiled by management
and approved by the Board.
Paragraph 34 of AASB 112 confirms that a DTA shall
be recognised for the carry forward of unused tax
losses to the extent that it is probable that future
taxable profit will be available against which the
unused tax losses can be utilised.
Management has performed an assessment that has
been approved by the Board on the recoverability of
the deferred tax assets by using the Group´s five year
forecast to satisfy the probability criteria that future
taxable profits will be available against which the
balance can be utilised.
Based on management’s projections, it is expected
that carried forward tax losses will be utilised within
five years with the most sensitive assumption being
trading volume.
Our audit procedures in relation to assessing the
reasonability of the utilisation of the carried forward tax
losses included the following:
•
Assessed whether it is probable that the entity will
have taxable profits to utilise the carried forward tax
losses by reviewing the accounting paper prepared
by management to assess recoverability of DTA on
carry forwarded tax losses.
•
Reviewed and assessed the reasonableness of
FY24 strategy plan prepared this year including all
key assumptions.
•
Assessed past budgeting against actual to assess
the past accuracy of management forecasting
•
Reviewed disclosures in the financial statements to
access the reasonableness and adequacy of the
disclosure.
•
Assessing whether appropriate adjustments to
reflect the differences between accounting and
taxable profits have been made in management’s
forecasts.
53
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 Trade
Names have an indefinite useful economic life.
Therefore, they are not amortised, but are subject to
annual testing for impairment in accordance with
AASB 136 Impairment.
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 in
use’ of each (‘CGU’) involves judgements about the
future underlying cash flows of the business and the
discount rates applied to them.
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 intangible
assets across the three CGUs.
•
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:
•
Assessing
the
appropriateness
of
the
management’s allocation of the goodwill across the
CGUs.
•
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.
•
The cash flow projections 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.
•
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.
54
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2024, but does not include the financial report and 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.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a.
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b.
the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i.
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
ii.
the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This
description forms part of our auditor's report.
55
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 12 to 19 of the directors' report for the year ended
30 June 2024.
In our opinion, the Remuneration Report of Experience Co Limited, for the year ended 30 June 2024, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
G N Sherwood
Partner
Sydney, 21 August 2024
56
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR LISTED
PUBLIC COMPANIES
57
The following information is current as at 5 August 2024.
1.
Shareholding
a) Distribution of Shareholders
CATEGORY (SIZE OF
HOLDING)
NUMBER OF
HOLDERS
NUMBER ORDINARY
SHARES
% HELD BY
CATEGORY
1-1,000
164
50,216
0.010
1,001-5,000
439
1,235,841
0.160
5,001-10,000
218
1,651,810
0.220
10,001-100,000
461
16,382,597
2.160
100,000 - and over
131
738,136,923
97.450
1,413
757,457,387
100.000
b) Shareholdings in less than marketable parcels
The number of shareholdings held in less than marketable parcels is 492.
c) Substantial shareholders
The names of the substantial shareholders listed in the holding company’s register are:
SHAREHOLDER
NUMBER OF
ORDINARY
FULLY PAID
SHARES HELD
% HELD OF
ISSUED
ORDINARY
CAPITAL
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
200,783,830
26.508%
BOUCAUT ENTERPRISES PTY LTD
175,181,212
23.128%
HSBC CUSTODY NOMINEES (AUSTRLIA) LIMITED
125,210,829
16.530%
CITICORP NOMINEES PTY LIMITED
80,253,308
10.595%
UBS NOMINEES PTY LTD
54,751,401
7.228%
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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR LISTED
PUBLIC COMPANIES
58
1.
Shareholding (continued)
e) 20 Largest Shareholders – Ordinary Shares
NAME
NUMBER OF
ORDINARY
FULLY PAID
SHARES HELD
% HELD OF
ISSUED
ORDINARY
CAPITAL
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
200,783,830
26.508%
BOUCAUT ENTERPRISES PTY LTD
175,181,212
23.128%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
125,210,829
16.530%
CITICORP NOMINEES PTY LIMITED
80,253,308
10.595%
UBS NOMINEES PTY LTD
54,751,401
7.228%
RICHMOND HILL CAPITAL PTY LTD
11,719,471
1.547%
NATIONAL NOMINEES LIMITED
8,664,257
1.144%
BNP PARIBAS NOMINEES PTY LTD
7,360,605
0.972%
MAUCLAI PTY LTD
5,810,276
0.767%
BNP PARIBAS NOMS PTY LTD
5,681,782
0.750%
MS ARIANE RADFORD
5,057,370
0.668%
H&G INVESTMENT MANAGEMENT LTD
4,000,000
0.528%
BNP PARIBAS NOMS (NZ) LTD
3,675,742
0.485%
H&G HIGH CONVICTION LIMITED
3,015,000
0.398%
EQUITY TRUSTEES LIMITED
2,537,577
0.335%
CLJOS HOLDINGS PTY LTD
2,124,233
0.280%
OCEAN CAPITAL PTY LIMITED
2,000,000
0.264%
H&G HIGH CONVICTION LIMITED
1,985,000
0.262%
TLSL INVESTMENT PTY LTD
1,937,185
0.256%
ASH & BEC INITIATIVES PTY LTD
1,937,185
0.256%
TOTAL SHARES OF TOP 20 HOLDINGS
703,686,263
92.901%
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.
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CORPORATE DIRECTORY
59
Directors:
Kerry (Bob) East
Neil Cathie
Michelle Cox
Anthony Boucaut
Alexander White
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
Auditors:
RSM Australia Partners
Level 13, 60 Castlereagh Street Sydney NSW 2000
Share Registry:
Boardroom Pty Ltd
Level 8, 210 George Street Sydney NSW 2000
Bankers:
Commonwealth Bank of Australia
Level 8, 11 Harbour Street Sydney NSW 2000
Stock Exchange Listing Code:
ASX: EXP
Website:
www.experienceco.com
EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES
CORPORATE DIRECTORY
55
THANK YOU