Energy Action Limited
ABN 90 137 363 636
Annual Financial Report - 30 June 2024
For personal use only
1
30 September 2024
Letter to Shareholders
Dear Shareholder,
Energy Action has made significant progress this year, showing that our strategy is working. By focusing on what we
do best – delivering energy and emissions procurement and management services to Australian businesses – we’ve
returned to profit and generated positive cash flows. These are important steps towards long-term financial stability
and growth.
Delivering Exceptional Customer Service
Our recent success is because of a common-sense focus on strengthening customer relationships, reaching new
customers, and delivering exceptional service. We continue to help more businesses secure better energy prices,
reinforcing our market position. This year, we revitalised our brand and sharpened our sales processes, ensuring our
value proposition is clear and compelling.
Delivering exceptional service is the key to winning in a competitive market. Utilibox, our AI-driven, cloud-based
platform for energy and emissions management, gives us a competitive edge by providing the insights and control
that businesses need to confidently manage their energy and emissions. By automating routine tasks, we’ve freed up
resources to focus on delivering higher-value services.
Technology as a Key for Growth
We use technology as a key growth driver, developing customer-centric solutions that can scale. This year, we
introduced a solution designed to address Australia’s mandatory climate-related financial disclosures, simplifying
compliance for our clients. Early feedback has been positive, and we expect this will drive increased adoption of our
reporting services. This represents a strategic shift in customer demand, allowing us to go beyond cost-saving and
address customer compliance needs essential to their businesses.
Small Team, Big Impact
I’d like to acknowledge Energy Action’s management team. They’ve rolled up their sleeves and done the hard work to
achieve our turnaround. Like me, they look for cost savings at every opportunity and work hard to make our business
simpler. Our FY24 financial results are a testament to the impact this team has had. Through their efforts, we’ve seen
significant improvements, proving that the right people, with the right mindset, can lead to extraordinary outcomes.
Delivering Sustainable Financial Results
Energy Action returned to profitability in FY24, marked by a positive net profit and cash flow. This result reflects our
disciplined approach to cost management and positions us to take advantage of near-term opportunities to grow
both revenue and our customer base. Our financial results included an impairment expense on software assets
providing a transparent view of financial performance.
Thanks to the support of our shareholders, we’ve been able to pay down more of our debt. Combined with the
improvements we’ve made in how we run the business, these steps have put us on even stronger financial footing.
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Investing in growth. Maintaining our strategy
At Energy Action, we are focused on creating long-term value for customers and shareholders. This year’s financial
results highlight our strong execution, disciplined cost control, and strategic investment. With a solid foundation in
place, we are well-positioned for growth. Our Board and management are committed to maintaining this
momentum, with the aim of delivering sustained profitability while keeping customer service at the centre of what
we do.
We are fortunate to have customers who trust us, a team that delivers, and shareholders who support us.
Thank you for your ongoing support.
Bruce Macfarlane
Interim CEO and Director
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Energy Action Limited
Corporate directory
30 June 2024
3
Directors
Company secretary
Registered office and principal place
of business
Share register
Auditor
Solicitors
Bankers
Stock exchange listing
Corporate Governance Statement
Murray Bleach - Non-Executive Chairman
Paul Meehan - Non-Executive Director
Bruce Macfarlane - Executive Director and Interim CEO
Derek Myers - Non-Executive Director
Caroline Wykamp - Non-Executive Director
Kimberly Sue
Level 5, 56 Station Street
Parramatta NSW 2150
Link Market Services Limited
Level 12
680 George Street
Sydney NSW 2000
RSM Australia Partners
Level 13, 60 Castlereagh Street
Sydney NSW 2000
DLA Piper
No 1 Martin Place
Sydney NSW 2000
Commonwealth Bank of Australia
Level 3, 101 George Street
Parramatta NSW 2150
Energy Action Limited shares are listed on the Australian Securities Exchange
(ASX code: EAX)
https://energyaction.com.au/about/corporate-governance/
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Energy Action Limited
Directors' report
30 June 2024
4
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter
as the 'consolidated entity') consisting of Energy Action Limited (referred to hereafter as the 'Company' or 'parent entity')
and the entities it controlled at the end of, or during, the year ended 30 June 2024.
Directors
The following persons were directors of Energy Action Limited during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Murray Bleach - Non-Executive Director and Chairman
Paul Meehan - Non-Executive Director
Bruce Macfarlane - Executive Director and Interim CEO
Derek Myers - Non-Executive Director
Caroline Wykamp - Non-Executive Director (appointed 1 September 2023)
Principal activities
Energy Action offers Australian business customers energy and carbon emissions procurement and management services.
Our three core revenue streams are energy procurement, energy management, and solar PV.
●
Energy Procurement - Broking or consulting using a range of procurement methodologies including auctions, tenders,
progressive and structured purchasing, corporate power purchase agreements.
●
Energy Management - Managed client energy contracts and environmental reporting, including account management,
liaison with their retailer, validating their bill, ensuring the right tariff, and helping them to understand how they are
using energy and their emissions profile.
●
Solar PV - Sourcing and contracting of solar project suppliers for business customers looking to implement solar
solutions.
The services are supported by the Company's proprietary software solution, Utilibox, an energy and emissions
management platform designed to transform energy data.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The profit for the consolidated entity after providing for income tax amounted to $584,407 (30 June 2023: loss of
$298,475).
Operating profit for the consolidated entity after tax amounted to $584,407 (30 June 2023: loss of $208,366) and EBITDA
for the consolidated entity after providing for income tax amounted to $1,795,869 (30 June 2023: $902,539).
A reconciliation of the consolidated entity’s Statutory profit/(loss) to Operating profit/(loss) after tax and EBITDA is shown
in the table below:
Profit/(loss) after tax
EBITDA
30 June 2024 30 June 2023 30 June 2024 30 June 2023
$
$
$
$
Statutory profit/(loss) after tax
584,407
(298,475)
1,795,869
812,430
Proceeds received on sale of embedded networks
-
(50,000)
-
(50,000)
Deregistration of subsidiaries
-
140,109
-
140,109
Operating profit/(loss) after tax
584,407
(208,366)
1,795,869
902,539
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Directors' report
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Reconciliation of profit / (loss) before income tax to EBITDA:
Consolidated
2024
2023
$
$
Profit / (loss) before income tax
584,407
(298,475)
Finance costs
746,863
676,548
Depreciation
201,631
269,606
Amortisation
262,968
164,751
EBITDA
1,795,869
812,430
Key Financial Metrics
2024
2023
Change
Change
$
$
$
%
Revenue from ordinary activities
11,426,602
11,492,851
(66,249)
(1%)
Operating profit/(loss) after tax attributable to the owners of
Energy Action Limited*
584,407
(208,366)
792,773
(380%)
Earnings Before Interest, Tax, Depreciation and Amortisation
(EBITDA)
1,795,869
902,539
893,330
99%
Statutory profit/(loss) after tax attributable to the owners of
Energy Action Limited
584,407
(298,475)
882,882
(296%)
*
Operating profit/(loss) after tax is defined as Statutory profit/(loss) excluding significant items and is reported to give
information to shareholders that provide a greater understanding of operating performance by removing significant
items and facilitating a more representative comparison of performance between financial periods.
Revenues
Total revenue saw a reduction of $66,249 compared to previous period. Energy Buying revenue declined 1% with an
increase to Total auction bid value increased 6% to $172 million. Energy Management revenue declined 5%, although we
saw an increase of 1,317 in sites under management to 6,706, the average contract duration decreased by 4 months.
Embedded Networks activities were sold in April 2022 and the full assignment of embedded networks customers was
completed in February 2023.
2024
2023
Change
Change
$
$
$
%
Energy buying
5,922,251
5,975,083
(52,832)
(1%)
Energy management
4,857,520
5,121,001
(263,481)
(5%)
Embedded networks
-
42,429
(42,429)
(100%)
Other revenue
-
30,084
(30,084)
(100%)
Other income
646,831
324,254
322,577
99%
Total revenue
11,426,602
11,492,851
(66,249)
(1%)
Operating Expenditure
Expenditure totalled $10.8M, compared to $11.8M in FY23, a reduction of $1.0M (8.4%). The most significant reduction
was in employment benefits expense reducing by $0.59M.
Discretionary spend is monitored and managed accordingly in order to satisfy the groups Capital Risk Management Policy
and address its Financial Risk Management Objectives around Liquidity Risk.
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Other
A Nil dividend was declared in FY24 with a priority of managing net debt, investing in value added technology, service and
delivery, expand customer value and continue to see growth in customer sales and revenue.
Operational Key Performance Indicators
2024
2023
Change %
Energy Buying
No. of successful AEX auctions
787
686
15%
Average AEX contract duration (months)
23.7 mths
24.81 mths
-1.11 mths
TWhs sold via Auction (annualised equivalent)
1.2
0.5
140%
Average annualised MWhs per successful AEX
1529.3
773
98%
Average $/MWh
$103.36
$144.60
-29%
Total Auction bid value1
$172m
$162m
6%
No. of electricity tender events
5
8
-38%
No. of gas tender events
109
41
166%
Managed & Embedded Networks
Sites under current contract2
Total Energy Management sites under contract
6,706
5,389
24%
Average Metrics contract duration (months)
31 mths
35 mths
-4 mths
Ongoing Services future contracted revenue
$8.9m
$9.5m
-6%
Contract Asset - Revenue not Invoiced – Current
$3.6m
$3.2m
13%
Revenue not Invoiced - Non-Current
$2.7m
$2.5m
8%
Total Revenue not Invoiced
$6.3m
$5.7m
11%
1 Electricity component of contract only, i.e. excluding network and other charges
2 Does not include contracts which are signed, but yet to commence service delivery
Forward contracted revenue
The forward contract revenue balance for FY24 was $8.9M which was a decrease on prior periods.
The Company continues to focus on improving acquisitions, retentions, customer service and enhancing the Energy
Management offering with a key strategy to see growth in future contract revenue for annuity based revenue streams.
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Contract Assets
Revenue from Auction, Commission based tenders and Tariff revenues are recognised upfront once the Auction is complete
and the contract signed between the retailer and customer. The payments are received over the life of the contract. A
contract asset called “Revenue not Invoiced” holds the net balance after provisions of $6.27 million to be received as cash
in the future for revenue recognised in current and previous fiscal periods.
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Energy Action Limited
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Significant changes in the state of affairs
On 13 May 2024, 5,018,933 ordinary shares were issued under a 1 for 6 non-renounceable pro-rata entitlement offer to
raise $1,003,786 (refer note 21).
On 27 June 2024, 3,336,428 and 512,480 ordinary shares were issued to the Directors Bruce Macfarlane and Derek Myers
respectively, to settle loans from Directors totalling $769,782 (refer note 18).
During the year, the consolidated entity revised its Facility Agreement with Commonwealth Bank of Australia (CBA)
resulting in several key changes to its debt structure as part of ongoing financial management efforts, as follows:
(1) The facility final repayment date was extended from 31 December 2024 to 31 March 2026.
(2) The repayment of $1.5 million due on 31 August 2023 was removed.
(3) The consolidated entity agreed to increase quarterly repayment obligations from $250,000 to $300,000 with these
repayments backdated to start from 30 September 2023. Subsequent to the March 2024 repayment, the timing
of quarterly repayments have been changed to the last weeks of November, February, April & August each year
commencing November 2024.
(4) The consolidated entity successfully negotiated a lower minimum cash balance requirement from $1 million to
$500,000, enhancing cash flow flexibility.
(5) Removal of requirement to repay excess where cash balances held exceed $1.5 million in a quarter.
(6) Updated gearing ratios and interest cover ratios.
(7) Included requirement that EBITDA in respect of each 12 month period up to the calculation date is at least equal to or
greater than $1 million. The calculation date is at the end of each quarter.
(8) Included requirement to ensure that Operating Expenditure does not exceed 90% of the total Revenue of the group
for the financial year.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
Subsequent to the year-end, Derek Myers was appointed as Chief Executive Officer (CEO), commencing on 1 October 2024.
Derek Myers will receive a base salary of $300,000 per annum, plus superannuation. His total remuneration package
includes compensation for both his role as CEO and as a Non-Executive Director.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Likely developments and expected results of operations
Information on likely developments in the operations of the consolidated entity and the expected results of operations
have not been included in this report because the directors believe it would be likely to result in unreasonable prejudice
to the consolidated entity.
Material business risks
Energy Action identifies major risks using an enterprise-wide risk program. Energy Action faces a wide variety of risks due
to the nature of the industry in which it operates. Energy Action has processes in place to reduce the possibility of the risk
occurring and/or, to the greatest extent possible, the adverse consequences of the risk occurring. Many of the risks are
influenced by factors external to, and beyond the control of Energy Action. Details of Energy Action's main risks and the
related mitigations are set out below:
Risk
Risk description
Potential consequences and mitigation strategies
Cyber Security Risk
Cyber-attack or similar event
involving unauthorised access to the
consolidated entity's IT systems
leading to denial of systems and/or
corruption of data.
Modern triage approach is taken to cyber-security to limit
attack vectors. Regular proactive cyber security testing and
external review of systems. Implementation of procedures for
systems recovery, including offsite data storage. Modern
systems restoration and business continuity strategies are in
place to minimise the impact of cyber incidents.
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Risk
Risk description
Potential consequences and mitigation strategies
Strategic Risk
Energy Action faces the risk of
failing to achieve its long-term
strategic objectives to grow its
market share of the market for
business energy procurement and
emissions reporting, by using
technology to deliver services at low
cost, which could impact its growth
potential.
Energy Action has three strategies to maintain and grow
market share: acquisition, retention, and cross-sell. Each are
invested in and continuously improved. The business service
focus is on delivering technology-driven solutions,
particularly in the net-zero space, to support long-term
relevance and competitiveness.
Market Risk
Energy Action is exposed to
fluctuations in market conditions,
including changes in customer
demand, competition, and
economic downturns, which could
adversely affect its business
operations and revenue streams.
Diversified service offering including energy procurement,
carbon emissions reporting, and solar PV procurement.
Close monitoring of market conditions with adjustments to
sales and marketing strategies. Use of technology to remain
adaptable and responsive, ensuring a strong value
proposition for customers.
Financial Risk
The risk of insufficient earnings and
cash flow to support business
operations and growth, potentially
leading to an inability to meet
financial obligations and deliver
shareholder value.
Implementation of a "back to basics" strategy focusing on
core revenue-generating activities. Establishment of a
financial buffer between operating expenses and baseline
revenue. Long term debt reduction.
Regulatory /
Compliance Risk
The risk of non-compliance with
legal and regulatory requirements,
including those related to the
Competition and Consumer Act and
the Australian Financial Services
Licence (AFSL), which could result in
legal action and reputational
damage.
Rigorous compliance training for all outward-facing staff.
Comprehensive AFSL compliance system with regular
monitoring and reporting of potential breaches. Use of
external audits and legal consultations to ensure ongoing
compliance and proactively address risks.
Operational Risk
The risk of process inefficiencies,
technology failures, or service
delivery disruptions that could
impact Energy Action’s ability to
meet its contractual obligations and
maintain customer satisfaction.
Energy Action has developed top-tier technology for energy
and emissions category management, using modern
software development practices and supported by an in-
house technology team. The same software is used for both
internal operations and customer services, ensuring that any
disruptions are identified and addressed promptly.
Continuous improvement of operational processes and
strategic technology investments help maintain efficiency
and reliability. Business continuity plans and disaster
recovery procedures are in place to mitigate any potential
operational disruptions.
People Risk
The risk of losing key staff or
experiencing high turnover rates,
leading to a decline in company
performance due to the loss of
expertise and increased training
demands.
Energy Action talent management strategies including staff
cross-training, succession planning, and effective
recruitment. The Company offers competitive remuneration
and career development opportunities to attract and retain
skilled employees.
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Risk
Risk description
Potential consequences and mitigation strategies
Reputational Risk
The risk of negative public or
customer perception due to service
failures, legal issues, or market
actions, which could damage Energy
Action’s brand and customer trust.
Energy Action's brand is important to the business's success
- for sales and for attracting talent. Mitigation strategies
include active management of reputation through
consistent, high-quality service delivery and transparent
communication with stakeholders. Commitment to
sustainability, particularly in helping clients achieve net-zero
outcomes. Crisis management plans in place for rapid
response and resolution of incidents that could harm the
company’s reputation.
Environmental Risk
The risk associated with
environmental factors, including the
impact of climate change on
operations and the need to comply
with environmental regulations.
Environmental risks for Energy Action are limited, with
primary impacts likely to be felt as business disruption.
Energy Action has made a commitment to environmental
sustainability with Climate Active Net Zero certification. As a
Company we monitor compliance requirements.
Environmental regulation
The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State
law. However, Energy Action is committed to implementing the requirements of all applicable Commonwealth, State and
local environmental legislation and regulations and, where possible, exceeding any relevant minimum requirements.
Information on directors
Name:
Murray Bleach
Title:
Non-Executive Chairman
Qualifications:
BA (Financial Studies), MAppFin, CA, GAICD
Experience and expertise:
Board member since 2012, Chairman since 2015. Partner in Alfred Street Investment
Partners, Chairman of AddVenture Fund and Tidal Ventures and consultant to Australia
Super.
Other current directorships:
Carlton Investments Ltd (ASX:CIN) (since 2 December 2014)
Former directorships (last 3 years): None
Special responsibilities:
Member of the Nomination and Remuneration Committee
Interests in shares:
5,864,041 ordinary shares
Interests in rights:
None
Name:
Paul Meehan
Title:
Non-Executive Director
Qualifications:
Diploma of Law
Experience and expertise:
Board member since 2003. Director of Meehans Solicitors Pty Ltd, Non-Executive
Director of Commercial First Realty Pty Ltd t/a LJ Hooker Commercial Macarthur.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Member of the Audit and Risk Management Committee (Chair until 21 September
2023)
Chair of the Nomination and Remuneration Committee until 21 September 2023
Interests in shares:
4,792,846 ordinary shares
Interests in rights:
None
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Directors' report
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Name:
Bruce Macfarlane
Title:
Executive Director and Interim CEO
Qualifications:
BEng (Mining), MCom (Economics)
Experience and expertise:
Bruce has been a board member since 2021 and brings 25 years of experience in the
energy utility sector, both in line management and consulting. His background covers
technology, sales and marketing, and regulation. Bruce co-founded BidEnergy, leaving
that company in 2017. He has been an active shareholder of Energy Action since 2019.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
None
Project management of business improvement projects
Interests in shares:
6,382,414 ordinary shares
Interests in rights:
None
Name:
Derek Myers
Title:
Non-Executive Director
Qualifications:
BCom, MBA
Experience and expertise:
Board member since 21 June 2023. Director of Polaris Stella Ltd and Beond Group Ltd.
Other current directorships:
None
Former directorships (last 3 years): eEnergy Group Plc (LSE: EAAS) (until 2 May 2023)
Special responsibilities:
Member of the Audit and Risk Management Committee
Interests in shares:
5,437,955 ordinary shares
Interests in rights:
None
Name:
Caroline Wykamp (appointed 1 September 2023)
Title:
Non-Executive Director
Qualifications:
BAppSc, DAppFin. GAICD
Experience and expertise:
Caroline is an experienced executive and authority in energy markets with over 25
years in the industry. She has expertise in leadership, wholesale energy market, and
renewable energy. She has previously held senior leadership roles at Hydro Tasmania,
Origin Energy and was the Chief Executive Officer of Marinus Link from January 2023
until September 2024.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Chair of the Audit and Risk Management Committee (since 1 September 2023)
Chair of the Nomination and Remuneration Committee (since 1 September 2023)
Interests in shares:
None
Interests in rights:
None
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of
all other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and
excludes directorships of all other types of entities, unless otherwise stated.
Company secretary
Dray Andrea resigned as Company Secretary on 16 September 2024 and was replaced by Kimberly Sue on that date.
Dray Andrea holds a Bachelor Business Studies (Finance) degree and a Graduate Diploma in Applied Corporate Governance
and Risk Management. Dray is an experienced corporate governance professional and a member of the Governance
Institute of Australia and the Chartered Governance Institute (UK).
Kimberly Sue has over 15 years of company secretarial, corporate administration and governance advisory experience
across a diverse range of industries and sectors, including in ASX listed, unlisted public and private entities, and not-for-
profit organisations. Kimberly has a Bachelor of Arts (Hons), a Graduate Diploma in Applied Corporate Governance, and is
a Fellow of the Governance Institute of Australia and the international Chartered Governance Institute.
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Directors' report
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Meetings of directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2024, and
the number of meetings attended by each director were:
Full Board
Nomination and
Remuneration Committee
Audit and Risk Management
Committee
Attended
Held
Attended
Held
Attended
Held
Murray Bleach**
12
12
-
-
1
1
Paul Meehan
12
12
-
-
1
1
Bruce Macfarlane**
12
12
-
-
1
1
Derek Myers
12
12
-
-
1
1
Caroline Wykamp*
9
12
-
-
1
1
Held: represents the number of meetings held during the time the director held office.
*
Caroline Wykamp was appointed to the board of Energy Action Limited on 1 September 2023.
** Murray Bleach and Bruce MacFarlane attended the Audit and Risk Management Committee meeting as observers.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity,
in accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the consolidated entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
Principles used to determine the nature and amount of remuneration
●
Details of remuneration
●
Service agreements
●
Share-based compensation
●
Additional information
●
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic
objectives and the creation of value for shareholders, and it is considered to conform to the market best practice for the
delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria
for good reward governance practices:
●
competitiveness and reasonableness
●
acceptability to shareholders
●
performance linkage / alignment of executive compensation
●
transparency
The Nomination and Remuneration Committee ('the Committee') is responsible for determining and reviewing
remuneration arrangements for its directors and executives. The performance of the consolidated entity depends on the
quality of its directors and executives. The remuneration philosophy is to attract, motivate and retain high performance
and high quality personnel.
The Committee consisted of two directors, Caroline Wykamp (Chair since 21 September 2023) and Murray Bleach. Paul
Meehan (Chair until 21 September 2023), Derek Myers and Bruce Macfarlane attended as observers. The Committee
charter is available on the consolidated entity's website.
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Directors' report
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The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
having economic profit as a core component of plan design
●
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
●
attracting and retaining high calibre executives
Additionally, the reward framework should seek to enhance executives' interests by:
●
rewarding capability and experience
●
reflecting competitive reward for contribution to growth in shareholder wealth
●
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive
directors' fees and payments are reviewed annually by the Nomination and Remuneration Committee. The Nomination
and Remuneration Committee may, from time to time, receive advice from independent remuneration consultants to
ensure non-executive directors' fees and payments are appropriate and in line with the market. The Chairman's fees are
determined independently to the fees of other non-executive directors based on comparative roles in the external market.
The Chairman is not present at any discussions relating to the determination of his own remuneration. Non-executive
directors do not receive share options or other incentives.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. When required, the board considers the advice of independent remuneration consultants to ensure directors’
fees are appropriate and in line with the market. The chairman’s fees are determined independently to the fees of directors
and are based on comparative roles in the market. The chairman is not present at any discussion relating to the
determination of his remuneration. Directors’ fees are determined within an aggregate fee pool limit approved by
shareholders. This is currently set at $400,000 per annum.
The annual base fees for each of the non-executive directors, including superannuation, was as follows:
Base fees
30 June 2024 30 June 2023
$
$
Chair
Murray Bleach
45,617
45,411
Other non-executive directors
Paul Meehan
36,493
36,329
Derek Myers (appointed 21 June 2023)
36,000
-
Caroline Wykamp (appointed 1 September 2023)
60,000
-
The above fees include committee membership.
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
base pay and non-monetary benefits
●
short-term performance incentives
●
long-term incentives
●
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
For personal use only
Energy Action Limited
Directors' report
30 June 2024
14
(i) Fixed remuneration
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Nomination and Remuneration Committee based on individual and business unit performance, the overall performance
of the consolidated entity and comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.
(ii) Short-term incentives
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles
of executives. STI payments are granted to executives based on specific annual targets and key performance indicators
('KPI's') being achieved. Mid-year and final performance reviews measure performance against the established KPI's and
criteria which are compiled in a matrix comprising consolidated entity and individual components. KPI's include
profitability, revenue growth and customer satisfaction. Individual measures are developed having regard to functional
plans and targets, aligned to the Company strategy.
The outcome of the performance review process is a rating, applied to each of these three KPI's for an individual,
culminating a percentage (capped at 100%). The final percentage allocated to each person is then applied to the STI
potential to determine the actual STI payment to be made to an individual.
The Board is responsible for assessing the performance of the CEO. The CEO is responsible for assessing the performance
of other executives.
Bonus payments are made annually, where applicable, in September in relation to the preceding year. No bonus was paid
or payable to the CEO or CFO in the current or previous year.
(iii) Long-term incentives
The long-term incentives ('LTI') include share-based payments. The LTI's are part of the annual remuneration based on the
fair value of options granted.
The consolidated entity operates a long-term incentive scheme (LTI) for its senior executives. The LTI is governed by the
Performance Rights and Options Plan (PROP), under which performance rights are granted to participants. Each
performance right entitles the participant to one share in the Company at the time of vesting subject to meeting the
conditions and financial consideration as outlined below.
The LTI aligns key employee awards with sustainable growth in shareholder value over time. It also plays an important role
in employee recruitment and retention.
During the year ended 30 June 2023, 1,870,000 performance rights were awarded to employees, including 1,225,000 to
key management personnel. Of these performance rights, 400,000 were granted to Simon Smith (former Chief Financial
Officer) that expired upon his resignation on 23 June 2023. No further performance rights were granted during the year
ended 30 June 2024.
The performance rights vest in 2 equal tranches. The first tranche vests once the Company share price remains at $0.40
cents or greater based on a 10 day Volume Weighted Average Price and the second tranche vests once the Company share
price remains at $0.80 cents or greater based on 10 day Volume Weighted Average Price.
Refer to the section 'Additional information' below for details of the earnings and total shareholders return for the last five
years.
Use of remuneration consultants
The Company did not engage remuneration consultants during the financial year ended 30 June 2024.
For personal use only
Energy Action Limited
Directors' report
30 June 2024
15
Voting and comments made at the Company's 9 November 2023 Annual General Meeting ('AGM')
At the 9 November 2023 AGM, 98.18% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2023. The Company did not receive any specific feedback at the AGM regarding its remuneration
practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Energy Action Limited:
●
Murray Bleach - Non-Executive Chairman
●
Paul Meehan - Non-Executive Director
●
Bruce Macfarlane - Executive Director and Interim CEO
●
Derek Myers - Non-Executive Director
●
Caroline Wykamp - Non-Executive Director (appointed 1 September 2023)
And the following persons:
●
Gregory Tamvakellis - Chief Financial Officer (appointed 4 September 2023)
●
Clint Irving - Chief Technology Officer
●
Edward Hanna - Head of Commercial and Growth
●
Tony Giannikos - Sales General Manager
●
Simon Smith - Chief Financial Officer (until August 2023)
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash salary
Cash
Non-
Super-
Long service
Equity-
and fees
bonus
monetary
annuation
leave
settled
Total
2024
$
$
$
$
$
$
$
Non-Executive Directors:
Murray Bleach
41,096
-
-
4,521
-
-
45,617
Paul Meehan
32,877
-
-
3,616
-
-
36,493
Derek Myers
121,000
-
-
-
-
-
121,000
Caroline Wykamp(1)
50,000
-
-
-
-
-
50,000
Executive Directors:
Bruce Macfarlane
122,877
-
-
13,516
-
-
136,393
Other Key Management
Personnel:
Gregory Tamvakellis(2)
201,667
-
-
22,183
-
-
223,850
Edward Hanna
254,386
-
-
27,399
-
-
281,785
Clint Irving
250,101
-
-
27,399
-
-
277,500
Tony Giannikos
202,737
73,284
-
24,166
-
-
300,187
Simon Smith(3)
40,943
-
-
4,504
-
-
45,447
1,317,684
73,284
-
127,304
-
-
1,518,272
(1) Caroline Wykamp was appointed as Non-Executive Director on 1 September 2023.
(2) Gregory Tamvakellis was appointed as Chief Financial Officer on 4 September 2023.
(3) Simon Smith resigned as Chief Financial Officer on 27 June 2023 however continued on in the position until August
2023.
For personal use only
Energy Action Limited
Directors' report
30 June 2024
16
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash salary
Cash
Non-
Super-
Long service
Equity-
and fees
bonus
monetary
annuation
leave
settled
Total
2023
$
$
$
$
$
$
$
Non-Executive Directors:
Murray Bleach
41,096
-
-
4,315
-
-
45,411
Paul Meehan
32,877
-
-
3,452
-
-
36,329
Derek Myers(1)
-
-
-
-
-
-
-
Executive Directors:
Bruce Macfarlane
97,877
-
-
10,277
-
-
108,154
Other Key Management
Personnel:
Simon Smith(2)
296,999
-
-
25,292
-
-
322,291
Edward Hanna
212,251
-
-
23,986
-
-
236,237
Clint Irving
200,000
-
-
21,000
-
-
221,000
Tony Giannikos
167,463
-
-
17,059
-
-
184,522
1,048,563
-
-
105,381
-
-
1,153,944
(1) Derek Myers was appointed as Non-Executive Director on 21 June 2023.
(2) Simon Smith resigned as Chief Financial Officer on 27 June 2023 however continued on in the position until August
2023.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk - STI
At risk - LTI
Name
2024
2023
2024
2023
2024
2023
Non-Executive Directors:
Murray Bleach
100%
100%
-
-
-
-
Paul Meehan
100%
100%
-
-
-
-
Derek Myers
100%
100%
-
-
-
-
Caroline Wykamp
100%
-
-
Executive Directors:
Bruce Macfarlane
100%
100%
-
-
-
-
Other Key Management
Personnel:
Gregory Tamvakellis
100%
-
-
Simon Smith
100%
100%
-
-
-
-
Edward Hanna
100%
100%
-
-
-
-
Clint Irving
100%
100%
-
-
-
-
Tony Giannikos
76%
100%
24%
-
-
-
The proportion of the cash bonus paid/payable or forfeited is as follows:
Cash bonus paid/payable
Cash bonus forfeited
Name
2024
2023
2024
2023
Other Key Management Personnel:
Tony Giannikos
100%
-
-
-
For personal use only
Energy Action Limited
Directors' report
30 June 2024
17
Service agreements
On appointment, all directors enter into an agreement which outlines obligations and minimum terms and conditions.
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Name:
Bruce Macfarlane
Title:
Interim CEO
Term of agreement:
On-going (no fixed term)
Details:
Base salary of $75,000 increased to $125,000 backdated to 1 January 2024, plus $1,250
per month Living Away From Home allowance
1 months notice to be provided on termination by either party
Name:
Gregory Tamvakellis (appointed 4 September 2023)
Title:
Chief Financial Officer
Term of agreement:
On-going (no fixed term)
Details:
Base salary $210,000 plus superannuation
1 months notice to be provided on termination by either party
Name:
Edward Hanna
Title:
Head of Commercial and Growth
Term of agreement:
On-going (no fixed term)
Details:
Base salary $253,849 plus superannuation
3 months notice to be provided on termination by either party
Name:
Clint Irving
Title:
Chief Technology Officer
Term of agreement:
On-going (no fixed term)
Details:
Base salary $250,000 plus superannuation
3 months notice to be provided on termination by either party
Name:
Tony Giannikos
Title:
Sales General Manager
Term of agreement:
On-going (no fixed term)
Details:
Base salary $190,000 plus superannuation
3 months notice to be provided on termination by either party
Termination benefits are payable at the option of the company in lieu of notice, other than in the event of termination for
a cause.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the year
ended 30 June 2024.
Options
There were no options over ordinary shares issued to directors and other key management personnel as part of
compensation that were outstanding as at 30 June 2024.
There were no options over ordinary shares granted to or vested by directors and other key management personnel as
part of compensation during the year ended 30 June 2024.
Performance rights
During the year ended 30 June 2023, the Company awarded 1,870,000 performance rights to employees, including
1,225,000 to key management personnel. Of these performance rights, 400,000 were granted to Simon Smith (former
Chief Financial Officer) that were forfeited upon his resignation on 23 June 2023.
For personal use only
Energy Action Limited
Directors' report
30 June 2024
18
The performance rights vest in 2 equal tranches. The first tranche vests once the Company share price remains at $0.40
cents or greater based on a 10 day Volume Weighted Average Price and the second tranche vests once the Company share
price remains at $0.80 cents or greater based on 10 day Volume Weighted Average Price.
No fair value was assigned to the performance rights granted during the year ended 30 June 2023 as the rights were
provided at no cost to the employees and no hurdles were met and therefore no rights had vested.
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of directors and
other key management personnel in this financial year or future reporting years are as follows:
Number of
Fair value
rights
per right
Name
granted
Grant date
Vesting date
Expiry date
at grant date
Clint Irving
400,000 17/02/2023
Per conditions detailed above
30/11/2025
$0.000
Edward Hanna
200,000 17/02/2023
Per conditions detailed above
30/11/2025
$0.000
Tony Giannikos
200,000 17/02/2023
Per conditions detailed above
30/11/2025
$0.000
Gregory Tamvakellis
25,000 17/02/2023
Per conditions detailed above
30/11/2025
$0.000
Performance rights granted carry no dividend or voting rights.
There were no performance rights over ordinary shares granted to or vested by directors and other key management
personnel as part of compensation during the year ended 30 June 2024.
Additional information
The earnings of the consolidated entity for the five years to 30 June 2024 are summarised below:
2024
2023
2022
2021
2020
$'000
$'000
$'000
$'000
$'000
Revenue and other income
11,427
11,492
10,378
14,359
19,782
Profit/(loss) after income tax
584
(298)
(2,841)
(1,000)
(2,487)
Operating net profit/(loss) after income tax*
584
(208)
(2,790)
(420)
24
*
Operating net profit/(loss) after income tax (Operating NPAT) adds back significant items
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
2024
2023
2022
2021
2020
Share price at financial year end ($)
0.2
0.2
0.2
0.3
0.2
Basic earnings/(loss) per share (cents per share) -
statutory
1.9
(1.1)
(10.5)
(3.7)
(9.6)
Basic earnings/(loss) per share (cents per share) -
operating
1.9
(0.8)
(10.3)
(1.6)
0.1
For personal use only
Energy Action Limited
Directors' report
30 June 2024
19
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at
Received
Balance at
the start of
as part of
Disposals/
the end of
the year
remuneration
Additions
other
the year
Ordinary shares
Murray Bleach
5,026,320
-
837,721
-
5,864,041
Paul Meehan
4,792,846
-
-
-
4,792,846
Bruce Macfarlane
3,045,986
-
3,336,428
-
6,382,414
Derek Myers
3,299,746
-
2,138,209
-
5,437,955
Caroline Wykamp
-
-
-
-
-
Gregory Tamvakellis
-
-
-
-
-
Clint Irving
-
-
-
-
-
Edward Hanna
611,387
-
-
-
611,387
Tony Giannikos
-
-
-
-
-
16,776,285
-
6,312,358
-
23,088,643
Performance rights holding
The number of performance rights over ordinary shares in the Company held during the financial year by each director and
other members of key management personnel of the consolidated entity, including their personally related parties, is set
out below:
Balance at
Expired/
Balance at
the start of
forfeited/
the end of
the year
Granted
Vested
other
the year
Performance rights over ordinary shares
Gregory Tamvakellis
25,000
-
-
-
25,000
Clint Irving
400,000
-
-
-
400,000
Edward Hanna
200,000
-
-
-
200,000
Tony Giannikos
200,000
-
-
-
200,000
Simon Smith
400,000
-
-
(400,000)
-
1,225,000
-
-
(400,000)
825,000
*
Includes the net balance of performance rights held on appointment/resignation.
Loans to key management personnel and their related parties
Details of the loans from key management personnel are listed below:
●
Murray Bleach is a director and shareholder of Bleach Family Co. A loan of $500,000 from Bleach Family Co was
received on 31 January 2022 and was due to expire on 1 May 2025, however the lender has agreed to extend it to 1
May 2026. The loan is unsecured and accrues interest at 12% p.a daily, payable on expiration of the loan.
●
Paul Meehan is a director and shareholder of Meehans Business. A loan of $500,000 from Meehans Business was
received on 31 January 2022 and was due to expire on 1 May 2025, however the lender has agreed to extend it to 1
May 2026. The loan is unsecured and accrues interest at 12% p.a daily, payable on expiration of the loan.
●
Bruce Macfarlane is a director and shareholder of Millar & Macfarlane Pty Ltd. A loan of $500,000 from Millar &
Macfarlane Pty Ltd was received on 31 January 2022 and was due to expire on 1 May 2025. The loan is unsecured and
accrues interest at 12% p.a daily, payable on expiration of the loan. On 27 June 2024, 3,336,428 shares were issued to
repay the loan and accrued interest on that date totalling $667,286.
●
A loan of $500,000 from Derek Myers was received during the year ended 30 June 2023. No interest was accrued on
the loan and the loan was attached to a warrant to exercise 3,125,000 shares at a value of $0.16 each. On 21 June
2023, the warrant was exercised and 3,125,000 shares were issued to Derek Myers in full settlement of the loan.
●
A loan of $100,000 from Derek Myers was received on 12 April 2024 and was due to expire on 1 May 2026. The loan
was unsecured and accrued interest at 12% p.a daily, payable on expiration of the loan. On 27 June 2024, 512,480
shares were issued to repay the loan and interest outstanding on that date totalling $102,496.
For personal use only
Energy Action Limited
Directors' report
30 June 2024
20
Movements of the loans from key management personnel and their related parties are as follows:
Opening
Interest
Converted
Closing
Lender
Related party
balance
Additions
earned
to equity
balance
$
$
$
$
$
Bleach Family Co
Murray Bleach
592,425
-
75,739
-
668,164
Meehans Business
Paul Meehan
592,425
-
75,739
-
668,164
Millar & Macfarlane Pty Ltd Bruce Macfarlane
592,425
-
75,080
(667,286)
219
Derek Myers
Derek Myers
-
100,000
2,529
(102,496)
33
1,777,275
100,000
229,087
(769,782)
1,336,580
This concludes the remuneration report, which has been audited.
Shares under option
There were no unissued ordinary shares of Energy Action Limited under option outstanding at the date of this report.
Shares under performance rights
Unissued ordinary shares of Energy Action Limited under performance rights at the date of this report are as follows:
Exercise
Number under
Grant date
Expiry date
price
exercisable rights
17 February 2023
30 November 2025
$0.00
1,115,000
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate
in any share issue of the Company or of any other body corporate.
Shares issued on the exercise of options
There were no ordinary shares of Energy Action Limited issued on the exercise of options during the year ended 30 June
2024 and up to the date of this report.
Shares issued on the exercise of performance rights
There were no ordinary shares of Energy Action Limited issued on the exercise of performance rights during the year ended
30 June 2024 and up to the date of this report.
Indemnity and insurance of officers
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of
the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
To the extent permitted by law, the Company has agreed to indemnify its auditors, RSM Australia Partners, as part of the
terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount).
No payment has been made to indemnify RSM Australia Partners during or since the financial year.
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.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility
on behalf of the Company for all or part of those proceedings.
As detailed in note 26 a proceeding in the Federal Court of Australia has been filed against the Company.
For personal use only
Energy Action Limited
Directors' report
30 June 2024
21
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Other audit-related services provided include an audit of the subsidiary Energy Action (Australia) Pty Limited in relation to
its financial statements for the purposes of maintaining its Australian Financial Services Licence (AFSL).
Officers of the Company who are former partners of RSM Australia Partners
There are no officers of the Company who are former partners of RSM Australia Partners.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Auditor
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act
2001.
On behalf of the directors
___________________________
Murray Bleach
Director
30 September 2024
For personal use only
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
RSM Australia Partners
Level 13, 60 Castlereagh Street
Sydney
NSW 2000
Australia
T +61 (02) 8226 4500
F +61 (02) 8226 4501
rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Energy Action Limited 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
Cameron J Hume
Partner
Sydney, NSW
Dated: 30 September 2024
For personal use only
Energy Action Limited
Contents
30 June 2024
23
Consolidated statement of profit or loss and other comprehensive income
24
Consolidated statement of financial position
25
Consolidated statement of changes in equity
26
Consolidated statement of cash flows
27
Notes to the consolidated financial statements
28
Consolidated entity disclosure statement
54
Directors' declaration
55
Independent auditor's report to the members of Energy Action Limited
56
Shareholder information
60
General information
The financial statements cover Energy Action Limited as a consolidated entity consisting of Energy Action Limited and the
entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which
is Energy Action Limited's functional and presentation currency.
Energy Action Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Level 5, 56 Station Street
Parramatta NSW 2150
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors. The directors have the
power to amend and reissue the financial statements.
For personal use only
Energy Action Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Consolidated
Note
2024
2023
restated
$
$
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes
24
Revenue
5
10,779,771
11,168,597
Other income
6
646,831
324,254
Total revenue
11,426,602
11,492,851
Expenses
Accounting, audit and tax fees
(159,599)
(209,344)
Advertising
(169,570)
(328,319)
Channel partners rebates
(271,388)
(394,559)
Computer maintenance
(577,545)
(660,959)
Consultancy
(151,074)
(126,675)
Contractors
(956,485)
(705,260)
Costs associated with derecognition of subsidiaries
-
(140,109)
Depreciation and amortisation expense
7
(464,599)
(434,357)
Employee benefits expense
(5,281,083)
(5,869,766)
Impairment of intangibles
15
(410,608)
(353,219)
Insurance
(222,036)
(227,106)
Legal and professional fees
(355,391)
(124,212)
Payroll tax
(247,888)
(304,260)
Recruitment
(112,931)
(154,475)
Short-term leases, outgoings and make-good provision
7
(261,856)
(373,019)
Subscriptions
(46,071)
(149,647)
Other expenses
(407,104)
(559,473)
Finance costs
7
(746,863)
(676,548)
Total expenses
(10,842,091)
(11,791,307)
Profit/(loss) before income tax expense
584,511
(298,456)
Income tax expense
8
(104)
(19)
Profit/(loss) after income tax expense for the year attributable to the owners of
Energy Action Limited
584,407
(298,475)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year attributable to the owners of Energy
Action Limited
584,407
(298,475)
Cents
Cents
Basic earnings/(loss) per share
31
1.9
(1.1)
Diluted earnings/(loss) per share
31
1.8
(1.1)
Refer to note 3 for detailed information on Restatement of comparatives.
For personal use only
Energy Action Limited
Consolidated statement of financial position
As at 30 June 2024
Consolidated
Note
2024
2023
$
$
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
25
Assets
Current assets
Cash and cash equivalents
9
1,447,286
1,397,164
Trade and other receivables
10
1,567,501
1,221,605
Contract assets
11
3,605,986
3,182,359
Other
12
139,846
146,648
Total current assets
6,760,619
5,947,776
Non-current assets
Contract assets
11
2,667,994
2,570,126
Plant and equipment
13
36,546
30,997
Right-of-use assets
14
175,033
354,098
Intangibles
15
800,000
676,153
Other
12
8,358
49,315
Total non-current assets
3,687,931
3,680,689
Total assets
10,448,550
9,628,465
Liabilities
Current liabilities
Trade and other payables
16
2,611,797
1,563,673
Contract liabilities
17
147,679
210,522
Borrowings
18
900,000
2,712,719
Lease liabilities
19
194,182
185,158
Income tax
8
136
32
Provisions
20
422,915
454,978
Total current liabilities
4,276,709
5,127,082
Non-current liabilities
Borrowings
18
3,786,580
4,277,275
Lease liabilities
19
-
194,182
Provisions
20
51,392
54,032
Total non-current liabilities
3,837,972
4,525,489
Total liabilities
8,114,681
9,652,571
Net assets/(liabilities)
2,333,869
(24,106)
Equity
Issued capital
21
9,111,474
7,337,906
Reserves
6,723,064
6,723,064
Accumulated losses
(13,500,669)
(14,085,076)
Total equity/(deficit)
2,333,869
(24,106)
For personal use only
Energy Action Limited
Consolidated statement of changes in equity
For the year ended 30 June 2024
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
26
Issued
Dividend
profit
Foreign
currency
translation
Accumulated Total deficit in
equity
capital
reserve
reserve
losses
Consolidated
$
$
$
$
$
Balance at 1 July 2022
6,837,906
6,723,064
3,702
(13,930,408)
(365,736)
Loss after income tax expense for the year
-
-
-
(298,475)
(298,475)
Other comprehensive income for the year, net
of tax
-
-
-
-
-
Total comprehensive loss for the year
-
-
-
(298,475)
(298,475)
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction
costs (note 21)
500,000
-
-
-
500,000
Transfer to foreign currency translation reserve
-
-
(3,702)
3,702
-
Removal of accumulated losses on
deregistration of subsidiaries*
-
-
-
140,105
140,105
Balance at 30 June 2023
7,337,906
6,723,064
-
(14,085,076)
(24,106)
* During the year ended 30 June 2023, the following wholly-owned subsidiaries were deregistered:
●
Energy Advice Pty Limited
●
Eactive Consulting Pty Limited
●
Ward Consulting Services (NSW) Pty Limited
●
ACN 087 790 770 Pty Limited
Issued
Dividend
profit
Foreign
currency
translation
Accumulated
Total equity
capital
reserve
reserve
losses
Consolidated
$
$
$
$
$
Balance at 1 July 2023
7,337,906
6,723,064
-
(14,085,076)
(24,106)
Profit after income tax expense for the year
-
-
-
584,407
584,407
Other comprehensive income for the year, net
of tax
-
-
-
-
-
Total comprehensive income for the year
-
-
-
584,407
584,407
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction
costs (note 21)
1,773,568
-
-
-
1,773,568
Balance at 30 June 2024
9,111,474
6,723,064
-
(13,500,669)
2,333,869
For personal use only
Energy Action Limited
Consolidated statement of cash flows
For the year ended 30 June 2024
Consolidated
Note
2024
2023
$
$
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
27
Cash flows from operating activities
Receipts from customers (inclusive of GST)
11,597,717
11,452,295
Payments to suppliers and employees (inclusive of GST)
(9,182,057)
(10,534,526)
2,415,660
917,769
Interest received
28,505
18,652
Research & Development offset income
-
274,254
Interest and other finance costs paid
(562,759)
(480,265)
Net cash from operating activities
33
1,881,406
730,410
Cash flows from investing activities
Payments for property, plant and equipment
13
(28,115)
(6,721)
Payments for intangibles
15
(797,423)
(706,442)
Proceeds from disposal of embedded networks business
-
50,000
Net cash used in investing activities
(825,538)
(663,163)
Cash flows from financing activities
Proceeds from issue of shares
21
1,003,786
500,000
Share issue transaction costs
(24,374)
-
Proceeds from borrowings
100,000
-
Repayment of lease liability
(185,158)
(279,729)
Repayment of borrowings
(1,900,000)
(750,000)
Net cash used in financing activities
(1,005,746)
(529,729)
Net increase/(decrease) in cash and cash equivalents
50,122
(462,482)
Cash and cash equivalents at the beginning of the financial year
1,397,164
1,859,646
Cash and cash equivalents at the end of the financial year
9
1,447,286
1,397,164
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
28
Note 1. Material accounting policy information
The accounting policies that are material to the consolidated entity are set out either in the respective notes or below. The
accounting policies adopted are consistent with those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these
standards and interpretations did not have any impact on the financial position and performance of the consolidated
entity.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Going concern
For the year ended 30 June 2024, the consolidated entity recorded a profit of $584,407 after income tax (2023: loss of
$298,475). At 30 June 2024, the consolidated entity had net current assets of $2,483,910 (2023: $820,694) and net assets
of $2,333,869 (2023: net liabilities of $24,106).
Included in the profit for the year is $646,831 (2023: $274,254) of Research & Development offset income which is at risk
of ceasing in future years. After excluding the Research & Development offset income, the consolidated entity would have
presented a loss of $62,424 (2023: $572,729). After excluding the $646,831 receivable at 30 June 2024, the consolidated
entity maintains a net current asset position of $1,837,079, held $1,447,286 in cash at bank, and had net operating cash
inflows of $1,881,406.
Based on the above, the Directors are of the opinion that at the date of signing of the financial report there are reasonable
and supportable grounds to believe that the consolidated entity will be able to meet its liabilities from its assets in the
ordinary course of business, for a period of not less than 12 months from the date of this financial report and has
accordingly prepared the financial report on a going concern basis.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity
only. Supplementary information about the parent entity is disclosed in note 28.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Energy Action Limited
('Company' or 'parent entity') as at 30 June 2024 and the results of all subsidiaries for the year then ended. Energy Action
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
29
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged
or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or
there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All
other liabilities are classified as non-current.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2024.
The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations,
most relevant to the consolidated entity, are set out below.
AASB 18 Presentation and Disclosure in Financial Statements
This standard is applicable to annual reporting periods beginning on or after 1 January 2027 and early adoption is
permitted. The standard replaces AASB 101 'Presentation of Financial Statements', with many of the original disclosure
requirements retained and there will be no impact on the recognition and measurement of items in the financial
statements. But the standard will affect presentation and disclosure in the financial statements, including introducing five
categories in the statement of profit or loss and other comprehensive income: operating, investing, financing, income taxes
and discontinued operations. The standard introduces two mandatory sub-totals in the statement: 'Operating profit' and
'Profit before financing and income taxes'. There are also new disclosure requirements for 'management-defined
performance measures', such as earnings before interest, taxes, depreciation and amortisation ('EBITDA') or 'adjusted
profit'. The standard provides enhanced guidance on grouping of information (aggregation and disaggregation), including
whether to present this information in the primary financial statements or in the notes. The consolidated entity will adopt
this standard from 1 July 2027 and it is expected that there will be a significant change to the layout of the statement of
profit or loss and other comprehensive income.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates
in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates
and assumptions on historical experience and on other various factors, including expectations of future events,
management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will
seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 2. Critical accounting judgements, estimates and assumptions (continued)
30
Provision for cancellation
In accordance with AASB 15, revenue from auction contracts is recognised upfront once the auction is complete and
contracts signed between the retailer and the customer. A resultant contract asset is recognised to account for the
difference between current and future billings. Contracts have historically experienced cancellations during the period of
the contract to which a provision is created. This provision is based on historical cancellations and is assessed annually with
the requisite adjustments being accounted for.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the
lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected
credit loss rate for each group. These assumptions include recent sales experience and historical collection rates.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of
technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives
are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold
will be written off or written down.
Employee benefits provision
The liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised
and measured at the present value of the estimated future cash flows to be made in respect of all employees at the
reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through
promotion and inflation have been taken into account.
Lease make good provision
A provision has been made for the present value of anticipated costs for future restoration of leased premises. The
provision includes future cost estimates associated with closure of the premises. The calculation of this provision requires
assumptions such as application of closure dates and cost estimates. The provision recognised for each site is periodically
reviewed and updated based on the facts and circumstances available at the time. Changes to the estimated future costs
for sites are recognised in the statement of financial position by adjusting the asset and the provision. Reductions in the
provision that exceed the carrying amount of the asset will be recognised in profit or loss.
Note 3. Restatement of comparatives
Reclassification
The expenses in the statement of profit or loss for the year ended 30 June 2023 were presented by function in some
instances and by nature in other instances (a mixed basis of classification). For the year ended 30 June 2024, to achieve a
consistent basis of classification of expenses as required by AASB 101: Financial Statement Presentation, the Company has
presented all expenses by nature in the statement of profit or loss. To establish comparability, the expenses for the year
ended 30 June 2023 have been reclassified to reflect the change in presentation.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 3. Restatement of comparatives (continued)
31
Statement of profit or loss and other comprehensive income
Consolidated
2023
2023
$
$
$
Reported
Adjustment
Restated
Revenue
11,168,597
-
11,168,597
Other income
324,254
-
324,254
Expenses
Accounting, audit and tax fees
-
(209,344)
(209,344)
Advertising
-
(328,319)
(328,319)
Channel partners rebates
-
(394,559)
(394,559)
Computer maintenance
-
(660,959)
(660,959)
Consultancy
-
(126,675)
(126,675)
Contractors
-
(705,260)
(705,260)
Costs associated with derecognition of subsidiaries
(140,109)
-
(140,109)
Depreciation and amortisation expense
(434,357)
-
(434,357)
Employee benefits expense
(6,973,852)
1,104,086
(5,869,766)
Impairment of intangibles
(353,219)
-
(353,219)
Insurance
-
(227,106)
(227,106)
Legal and professional fees
-
(124,212)
(124,212)
Payroll tax
-
(304,260)
(304,260)
Recruitment
-
(154,475)
(154,475)
Short-term leases, outgoings and make-good provision
(373,019)
-
(373,019)
Subscriptions
-
(149,647)
(149,647)
Other expenses
-
(559,473)
(559,473)
Finance costs
(676,548)
-
(676,548)
Cost of sales
(418,468)
418,468
-
Travel costs
(31,306)
31,306
-
Administration expenses
(2,390,429)
2,390,429
-
Loss before income tax expense
(298,456)
-
(298,456)
Income tax expense
(19)
-
(19)
Loss after income tax expense for the year attributable to the owners of
Energy Action Limited
(298,475)
-
(298,475)
Other comprehensive income for the year, net of tax
-
-
-
Total comprehensive loss for the year attributable to the owners of Energy
Action Limited
(298,475)
-
(298,475)
Cents
Cents
Cents
Reported
Adjustment
Restated
Basic earnings/(loss) per share
(1.1)
-
(1.1)
Diluted earnings/(loss) per share
(1.1)
-
(1.1)
Statement of financial position at the beginning of the earliest comparative period
When there is a restatement of comparatives, it is mandatory to provide a third statement of financial position at the
beginning of the earliest comparative period, being 1 July 2022. However, as there were no adjustments made as at 1 July
2022, the consolidated entity has elected not to show the 1 July 2022 statement of financial position.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
32
Note 4. Operating segments
Identification of reportable operating segments
The consolidated entity has identified one reportable operating segment, which provides electricity and gas procurement
services, energy management and retail billing services in Australia. As the consolidated entity operates in only one
segment, the consolidated results are also its segment results.
Major customers
All revenue of the consolidated entity is from external customers. During the current and prior financial periods, there
were no transactions with a single external customer that amounted to 10 per cent or more of the consolidated entity’s
revenues.
Note 5. Revenue
Consolidated
2024
2023
$
$
Revenue from contracts with customers
Energy buying
5,922,251
5,975,083
Energy management
4,857,520
5,121,001
Embedded networks
-
42,429
10,779,771
11,138,513
Other revenue
Other
-
30,084
Revenue
10,779,771
11,168,597
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Consolidated
2024
2023
$
$
Geographical regions
Australia
10,779,771
11,138,513
Timing of revenue recognition
Services transferred at a point in time
5,166,733
5,265,940
Services transferred over time
5,613,038
5,872,573
10,779,771
11,138,513
Accounting policy for revenue recognition
Revenue is disclosed net of rebates and discounts.
Energy buying
Energy buying includes broking or consulting using a range of procurement methodologies including auctions (via the
Australia Energy Exchange (AEX)), tenders (small and large market), progressive and structured purchasing, corporate
power purchase agreements, and broking of Solar and Energy projects.
The AEX electricity and gas procurement service is an online, real time and reverse auction platform for business customers
which provides the opportunity to competitively obtain energy supply contracts from various energy providers.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 5. Revenue (continued)
33
Revenue from auction and commission-based tenders are recognised upfront once the auction is complete and contract
are signed between the retailer and the customer. The commercial and payment terms of the contract remain unchanged
with payments being received over the life of the contract. Accordingly, a contract asset is recognised that represents the
difference between the revenue recognised and the amount invoiced.
Auction contracts provide a customer with a right to cancel during the contract period. The consolidated entity estimates
cancellation of auction revenue during the contract period of approximately 5.74% (2023: 10.13%) based on the last 2
years of history, in addition to specific provisions for certain aged items. Accordingly, it was assessed that 5.74% (2023:
10.13%) of the total values of contracts entered into should be provided for on the statement of financial position as a
provision for cancellations on an ongoing basis. This has the effect of reducing revenue and providing for the risk of
cancellation for the period between recognising the revenue and invoicing the retailer.
Other energy buying revenue is recognised over time as the services are rendered and/or in accordance with the
percentage of completion of the project.
Energy management
Energy management services include the management of client energy contracts and environmental reporting, including
account management, liaison with their retailer, validating their bill, ensuring the right tariff and helping them to
understand how they are using energy. Utilibox is an independent Energy Management Services platform which transforms
energy data into useable business intelligence that is easy to understand and essential for improving overall business
efficiency.
The types of energy management services include energy consumption monitoring and costing, energy emissions
monitoring, contract administration, detailed technical reporting, desktop energy efficiency review and additional
reporting and monitoring.
Energy management revenue is recognised over time as the services are rendered and/or in accordance with the
percentage of completion of the project.
Embedded networks
Embedded networks revenue was recognised over time as the services are rendered and/or in accordance with the
percentage of completion of the project. The embedded networks activities were sold in April 2022 and the full assignment
of embedded networks customers was completed in February 2023.
Note 6. Other income
Consolidated
2024
2023
$
$
Research & Development offset income
646,831
274,254
Proceeds received on sale of embedded networks
-
50,000
Other income
646,831
324,254
Research & Development offset income
The consolidated entity undertakes eligible research and development (R&D) activities and is therefore entitled to claim
an R&D offset under the R&D incentive as administered by the Australian Tax Office (ATO).
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
34
Note 7. Expenses
Consolidated
2024
2023
$
$
Profit/(loss) before income tax includes the following specific expenses:
Depreciation
Furniture and fittings
530
1,034
Computer equipment
22,036
45,150
Buildings right-of-use assets
179,065
223,422
Total depreciation
201,631
269,606
Amortisation
Software development
262,968
164,751
Total depreciation and amortisation
464,599
434,357
Finance costs
Interest and finance charges paid/payable on borrowings
710,785
630,207
Interest and finance charges paid/payable on lease liabilities
21,089
37,680
Borrowing costs
44,404
27,313
Interest income
(29,415)
(18,652)
Finance costs expensed
746,863
676,548
Short-term leases, outgoings and make-good provision
Short-term lease payments
54,910
70,852
Make-good provision
75,000
177,200
Outgoings
88,264
71,815
Parking
43,682
53,152
Total short-term leases, outgoings and make-good provision
261,856
373,019
Superannuation expense
Defined contribution superannuation expense
547,766
601,281
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
35
Note 8. Income tax
Consolidated
2024
2023
$
$
Income tax expense
Current tax
104
19
Aggregate income tax expense
104
19
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit/(loss) before income tax expense
584,511
(298,456)
Tax at the statutory tax rate of 25%
146,128
(74,614)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Research & Development offset income
(161,708)
(68,564)
Non-deductible expenses
916
37,875
(14,664)
(105,303)
Current year temporary differences not recognised
14,768
105,322
Income tax expense
104
19
Consolidated
2024
2023
$
$
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
5,121,730
3,244,905
Potential tax benefit @ 25%
1,280,433
811,226
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax
losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test
is passed.
Consolidated
2024
2023
$
$
Provision for income tax
Provision for income tax
136
32
Accounting policy for income tax
Energy Action Limited and its wholly owned subsidiaries formed a tax consolidated group with effect from 3 March 2009.
Energy Action Limited is the head entity of the tax consolidated group.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses. At 30 June 2024 and 30 June
2023 it was assessed that there was significant uncertainty whether the tax losses will be used in the foreseeable future.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
36
Note 9. Cash and cash equivalents
Consolidated
2024
2023
$
$
Current assets
Cash at bank
1,439,802
1,389,917
Restricted cash*
7,484
7,247
1,447,286
1,397,164
* Restricted cash refers to cash held in Energy Action Employee Share Trust, a subsidiary company used to manage
employee equity plans as well as cash bank guarantees held by the bank.
Note 10. Trade and other receivables
Consolidated
2024
2023
$
$
Current assets
Trade receivables
1,120,390
1,461,091
Less: Allowance for expected credit losses
(199,720)
(239,486)
920,670
1,221,605
Research & Development grant receivable
646,831
-
1,567,501
1,221,605
Trade receivables are non-interest bearing and generally due for settlement within 30 to 90 days.
Allowance for expected credit losses
The consolidated entity policy states that receivables should be provided for as follows:
●
Accounts with an administrator appointed or in liquidation or with 90 days+ outstanding - fully provide for except
where a reasonable estimate can be made of the recoverable amount.
●
Accounts assigned to a debt collector - 50% provided.
●
Direct customers - expected credit loss model based on risk associated with ageing.
●
Retailers and metering companies - no provision required; historical evidence shows immaterial write-offs, partially
due to the pre-approval process for many of the retailers which results in the amounts being validated prior to
invoicing.
●
Disputed amounts owing which are in the process of litigation will be provided for on a case by case basis depending
on the probability of recoverability.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rate
Carrying amount
Allowance for expected
credit losses
2024
2023
2024
2023
2024
2023
Consolidated
%
%
$
$
$
$
Not overdue
-
2.402%
1,075,477
904,936
-
21,737
0 to 30 days overdue
3.646%
0.798%
213,785
149,342
7,795
1,192
31 to 60 days overdue
(17.685%)
1.789%
(19,886)
36,956
3,517
661
61 to 90 days overdue
14.513%
331.820%
35,726
3,934
5,185
13,054
Over 90 days overdue
(99.194%)
55.433%
(184,712)
365,923
183,223
202,842
1,120,390
1,461,091
199,720
239,486
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 10. Trade and other receivables (continued)
37
Movements in the allowance for expected credit losses are as follows:
Consolidated
2024
2023
$
$
Opening balance
239,486
283,054
Additional provisions recognised
47,000
48,000
Receivables written off during the year as uncollectable
(86,766)
(91,568)
Closing balance
199,720
239,486
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Note 11. Contract assets
Consolidated
2024
2023
$
$
Current assets
Contract assets
3,821,516
3,541,115
Less: provision for cancellation
(215,530)
(358,756)
3,605,986
3,182,359
Non-current assets
Contract assets
2,834,185
2,859,894
Less: provision for cancellation
(166,191)
(289,768)
2,667,994
2,570,126
6,273,980
5,752,485
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and
previous financial year are set out below:
Opening balance
5,752,485
4,585,873
Additions
6,255,748
5,132,737
Transfer to trade receivables
(5,734,253)
(3,966,125)
Closing balance
6,273,980
5,752,485
Provision for cancellation
A provision is raised against contract assets that are estimated to be cancelled by the customer during the contract period
(refer note 2). At 30 June 2024, the consolidated entity estimated cancellation of auction revenue during the contract
period of approximately 5.74% (2023: 10.13%) based on the last 2 years of history, in addition to specific provisions for
certain aged items.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
38
Note 12. Other
Consolidated
2024
2023
$
$
Current assets
Prepayments
139,846
145,619
Other current assets
-
1,029
139,846
146,648
Non-current assets
Security deposits
8,358
49,315
148,204
195,963
Note 13. Plant and equipment
Consolidated
2024
2023
$
$
Non-current assets
Furniture and fittings - at cost
1,290,903
1,290,903
Less: Accumulated depreciation
(1,290,714)
(1,290,184)
189
719
Computer equipment - at cost
2,162,163
2,134,049
Less: Accumulated depreciation
(2,125,806)
(2,103,771)
36,357
30,278
36,546
30,997
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Furniture and
Computer
fittings
equipment
Total
Consolidated
$
$
$
Balance at 1 July 2022
1,419
69,041
70,460
Additions
334
6,387
6,721
Depreciation expense
(1,034)
(45,150)
(46,184)
Balance at 30 June 2023
719
30,278
30,997
Additions
-
28,115
28,115
Depreciation expense
(530)
(22,036)
(22,566)
Balance at 30 June 2024
189
36,357
36,546
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 13. Plant and equipment (continued)
39
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
over their expected useful lives as follows:
Furniture and fittings
5 years
Computer equipment
3 - 4 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
Note 14. Right-of-use assets
Consolidated
2024
2023
$
$
Non-current assets
Land and buildings - right-of-use
670,266
670,266
Less: Accumulated depreciation
(495,233)
(316,168)
175,033
354,098
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Land and
buildings
Consolidated
$
Balance at 1 July 2022
52,421
Additions
525,099
Depreciation expense
(223,422)
Balance at 30 June 2023
354,098
Depreciation expense
(179,065)
Balance at 30 June 2024
175,033
For information on the associated leases, refer to note 19.
Note 15. Intangibles
Consolidated
2024
2023
$
$
Non-current assets
Software development - at cost
14,645,445
13,848,022
Less: Accumulated amortisation
(7,095,917)
(6,832,949)
Less: Impairment
(6,749,528)
(6,338,920)
800,000
676,153
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 15. Intangibles (continued)
40
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Software
development
Consolidated
$
Balance at 1 July 2022
487,681
Additions
706,442
Impairment of assets
(353,219)
Amortisation expense
(164,751)
Balance at 30 June 2023
676,153
Additions
797,423
Impairment of assets
(410,608)
Amortisation expense
(262,968)
Balance at 30 June 2024
800,000
During the year ended 30 June 2023, the Company made a large investment in business software to create a new
proprietary data and emission portal called Utilibox. Utilibox was launched in April 2023.
Impairment of intangibles
During the year ended 30 June 2024, the consolidated entity performed a review of the intangibles and reassessed the
useful life of the software development intangibles. As a result, it was deemed that the assets relating to the Utilibox
software that launched in April 2023 had a value assigned as at 30 June 2024 and the consolidated entity impaired those
assets as required. The resulting impairment for the year ended 30 June 2024 totalled $410,608 (2023: $353,219).
Accounting policy
Significant costs associated with software are deferred and amortised on a straight-line basis over the period of their
expected benefit, being their finite life of between 1 and 5 years.
Note 16. Trade and other payables
Consolidated
2024
2023
$
$
Current liabilities
Trade payables
745,596
598,663
BAS payable
(22,389)
28,358
Commissions payable
285,238
225,999
Rebates to channel partners
900,853
185,118
Interest payable
57,532
74,010
Accrued expenses
546,241
343,344
Other payables
98,726
108,181
2,611,797
1,563,673
Refer to note 23 for further information on financial instruments.
Accounting policy for trade and other payables
Due to their short-term nature these amounts are measured at amortised cost and are not discounted. Trade payables are
usually paid within 30 to 60 days of recognition. Other payables have an average term of 6 months.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
41
Note 17. Contract liabilities
Consolidated
2024
2023
$
$
Current liabilities
Contract liabilities
147,679
210,522
It is expected that all contract liabilities will be recognised as revenue within 12 months.
Note 18. Borrowings
Consolidated
2024
2023
$
$
Current liabilities
Market rate loan facility - CBA
900,000
2,750,000
Less capitalised debt establishment fees
-
(37,281)
900,000
2,712,719
Non-current liabilities
Market rate loan facility - CBA
2,450,000
2,500,000
Loans from Directors
1,336,580
1,777,275
3,786,580
4,277,275
4,686,580
6,989,994
Refer to note 23 for further information on financial instruments.
Market rate loan facility - CBA
During the year, the market rate loan facility agreement was amended twice to include the following changes:
Seventh Amendment dated 2 November 2023
(1) The repayment of $1.5 million due on 31 August 2023 was removed.
(2) The repayment schedule was revised to $300,000 per quarter with first repayment due 30 September 2023.
(3) The requirement to hold an aggregate balance of $1 million at all times was revised to $700,000.
(4) Where cash balances held exceed $1.5 million in a quarter, the excess funds are to be repaid to the bank.
(5) The requirement to ensure that Operating Expenditure does not exceed 90% of the total Revenue of the group for the
financial year.
(6) Updated gearing ratios and interest cover ratios.
Eighth Amendment dated 24 June 2024
(1) The facility final repayment date was extended from 31 December 2024 to 31 March 2026.
(2) The repayment schedule was altered after the 31 March 2024 repayment, to $300,000 repayment in the last weeks of
November, February, April & August each year commencing November 2024.
(3) The requirement to hold an aggregate balance of $700,000 at all times was revised to $500,000.
(4) Removed the requirement to repay the bank the excess where cash balances held exceed $1.5 million in a quarter.
(5) Updated gearing ratio to be no more than 3.0:1 and interest cover ratio at least equal to or greater than 3.5:1 on each
calculation date (quarters ending March, June, September and December).
(6) Requirement that EBITDA in respect of each 12 month period up to the calculation date is at least equal to or greater
than $1 million. The calculation date is at the end of each quarter.
(7) Requirement that Operating Expenditure (as per the financiers definition) does not exceed 90% of total revenue of the
group for each financial year.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 18. Borrowings (continued)
42
The market rate loan facility held with CBA requires mandatory loan repayments of $300,000 due in November 2024,
February 2025 and April 2025, which are all within the next 12 months and are therefore classified as current liabilities.
The remaining balance of the loan has been classified as non-current liabilities.
Assets pledged as security
The CBA facility is secured by a first-ranking charge over the consolidated entity's assets.
Loans from Directors
During the year ended 30 June 2023, a subordinated loan of $0.5 million was received from Mr Derek Myers, attached to
3,125,000 warrants which were available to be converted to ordinary shares at the exercise price of $0.16 per share. The
warrants had an expiry date of 30 June 2023 and if they were not exercised would convert into an interest bearing loan
from 1 July 2023 at the rate of 6% p.a quarterly in arrears. On 29 June 2023, Mr Derek Myers exercised the warrants and
3,125,000 ordinary shares were issued on this date (note 21), the $0.5 million was not converted into a loan.
On 27 June 2024, 3,336,428 and 512,480 ordinary shares were issued to Bruce Macfarlane and Derek Myers respectively
to settle loans from Directors totalling $769,782 (refer note 21).
Details of the loans from Directors in place throughout the financial year are as follows:
●
A loan of $500,000 from Bleach Family Co was received on 31 January 2022 and was due to expire on 1 May 2025,
however the lender has agreed to be extend this to 1 May 2026. The loan is unsecured and accrues interest at 12% p.a
daily, payable on expiration of the loan. At 30 June 2024 the loan balance was $668,164 (2023: $592,425).
●
A loan of $500,000 from Meehans Business was received on 31 January 2022 and was due to expire on 1 May 2025,
however the lender has agreed to be extend this to 1 May 2026. The loan is unsecured and accrues interest at 12% p.a
daily, payable on expiration of the loan. At 30 June 2024 the loan balance was $668,164 (2023: $592,425).
●
A loan of $500,000 from Millar & Macfarlane Pty Ltd was received on 31 January 2022 and was due to expire on 1 May
2025. The loan is unsecured and accrues interest at 12% p.a daily, payable on expiration of the loan. On 27 June 2024,
3,336,428 shares were issued to repay the loan and accrued interest on that date totalling $667,286. At 30 June 2024
the loan balance was $219 (2023: $592,425).
●
A loan of $100,000 from Derek Myers was received on 12 April 2024 and was due to expire on 1 May 2026. The loan
was unsecured and accrued interest at 12% p.a daily, payable on expiration of the loan. On 27 June 2024, 512,480
shares were issued to repay the loan and accrued interest on that date totalling $102,496. At 30 June 2024 the loan
balance was $33.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 18. Borrowings (continued)
43
Financing arrangements
Unrestricted access was available at the reporting date to the following lines of credit:
Consolidated
2024
2023
$
$
Total facilities
CBA loan facility (excluding corporate card facility)
3,350,000
5,250,000
Loan from directors
1,336,580
1,777,275
4,686,580
7,027,275
Used at the reporting date
CBA loan facility (excluding corporate card facility)
3,350,000
5,250,000
Loan from directors
1,336,580
1,777,275
4,686,580
7,027,275
Unused at the reporting date
CBA loan facility (excluding corporate card facility)
-
-
Loan from directors
-
-
-
-
Note 19. Lease liabilities
Consolidated
2024
2023
$
$
Current liabilities
Lease liability
194,182
185,158
Non-current liabilities
Lease liability
-
194,182
194,182
379,340
Refer to note 23 for further information on financial instruments.
The Company holds a lease in Parramatta, NSW. The Company also previously held a lease in Melbourne, which expired in
July 2023. The Parramatta lease commenced in July 2022 and expires in June 2025. Monthly rent of $16,423, excluding
outgoings, was payable under the lease agreement throughout the year ended 30 June 2024.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
44
Note 20. Provisions
Consolidated
2024
2023
$
$
Current liabilities
Annual leave
178,145
175,531
Long service leave
57,852
73,944
Lease make good
186,918
205,503
422,915
454,978
Non-current liabilities
Long service leave
51,392
54,032
474,307
509,010
Note 21. Issued capital
Consolidated
2024
2023
2024
2023
Shares
Shares
$
$
Ordinary shares - fully paid
38,981,441
30,113,600
9,111,474
7,337,906
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
1 July 2022
26,988,600
6,837,906
Shares issues - convertible note (note 18)
29 June 2023
3,125,000
$0.16
500,000
Balance
30 June 2023
30,113,600
7,337,906
Issue of shares under 1 for 6 entitlement offer (a)
13 May 2024
5,018,933
$0.20
1,003,786
Debt conversion (b)
27 June 2024
3,848,908
$0.20
769,782
Balance
30 June 2024
38,981,441
9,111,474
Movements in share capital
(a) Issue of shares under 1 for 6 entitlement offer
On 13 May 2024, 5,018,933 ordinary shares were issued under a 1 for 6 non-renounceable pro-rata entitlement offer to
raise $1,003,786. The entitlement offer was partially underwritten by Derek Myers (Director) and Webzone Holdings Pty
Limited up to a maximum value of $645,875 equating to 3,229,377 shares. Upon completion of the entitlement offer,
2,702,889 shares totalling $540,578 were taken up and the remaining 2,316,044 shares valued at $463,208 not taken up
by eligible shareholders were placed with the underwriters.
(b) Debt conversion
On 27 June 2024, 3,336,428 and 512,480 ordinary shares were issued to the Directors Bruce Macfarlane and Derek Myers
respectively to settle loans from Directors totalling $769,782 (refer note 18).
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and
the Company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 21. Issued capital (continued)
45
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so
that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital
structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements during the
financial year.
There is an externally imposed capital requirement of $50,000 to be held in cash, as a requirement of holding an Australia
Financial Services Licence.
The capital risk management policy remains unchanged from the 2023 Annual Report.
The consolidated entity monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by
total capital. Net debt is calculated as total borrowings (including 'trade and other payables' and 'borrowings' as shown in
the statement of financial position) less 'cash and cash equivalents' as shown in the statement of financial position. Total
capital is calculated as 'total equity' as shown in the statement of financial position plus net debt.
The gearing ratio at the reporting date was as follows:
Consolidated
2024
2023
$
$
Current liabilities - trade and other payables (note 16)
2,611,797
1,563,673
Current liabilities - borrowings (note 18)
900,000
2,712,719
Non-current liabilities - borrowings (note 18)
3,786,580
4,277,275
Total borrowings
7,298,377
8,553,667
Current assets - cash and cash equivalents (note 9)
(1,447,286)
(1,397,164)
Net debt
5,851,091
7,156,503
Total equity/(deficit)
2,333,869
(24,106)
Total capital
8,184,960
7,132,397
Gearing ratio
71%
100%
Note 22. Dividends
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Franking credits
Consolidated
2024
2023
$
$
Franking credits available for subsequent financial years based on a tax rate of 25%
6,534,042
7,180,873
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 22. Dividends (continued)
46
The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for:
●
franking credits that will arise from the payment of the amount of the provision for income tax at the reporting date
Note 23. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including interest rate risk), credit
risk and liquidity risk.
The consolidated entity does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes.
The Audit and Risk Management Committee (ARMC) has been delegated responsibility by the Board of Directors ('the
Board') for, amongst other matters, monitoring and management financial risk exposures of the consolidated entity. The
ARMC monitors the consolidated entity's financial risk management policies and exposures and approves financial
transactions within the scope of its authority. It also reviews the effectiveness of internal controls relating to financial risk
and interest rate risk. The ARMC met 1 time during the financial year and minutes of the ARMC are reviewed by the Board.
The ARMC's overall risk management strategy seeks to assist the consolidated entity in meeting its financial targets, while
minimising potential adverse effects on financial performance. Its functions include the review of credit risk policies and
future cash flow requirements.
Market risk
Interest rate risk
The consolidated entity's main interest rate risk arises from long-term borrowings with variable rates, which expose the
consolidated entity to cash flow interest rate risk. Borrowings obtained at fixed rates expose the consolidated entity to fair
value interest rate risk. Cash and cash equivalents are all on short term deposits. At 30 June 2024 the consolidated
entity had bank loans of $3.35 million with a line fee of 2.2%, a usage fee of 2.0% and 4.495% interest rate.
The following table illustrates sensitivities to the consolidated entity's exposures to changes in interest rates on
outstanding bank loans of $3,350,000 (2023: $5,250,000). The table indicates the impact on how profit and equity reported
at balance date would have been affected by changes in the relevant risk variable that management considers to be
reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other
variables, and the other assumptions remain consistent with prior years.
Basis points increase
Basis points decrease
Consolidated - 2024
Basis points
change
Effect on
profit before
tax
Effect on
equity
Basis points
change
Effect on
profit before
tax
Effect on
equity
Borrowings
100
(48,200)
(48,200)
100
48,200
48,200
Basis points increase
Basis points decrease
Consolidated - 2023
Basis points
change
Effect on
profit before
tax
Effect on
equity
Basis points
change
Effect on
profit before
tax
Effect on
equity
Borrowings
100
(58,041)
(58,041)
100
58,041
58,041
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The maximum exposure to credit risk at the reporting date to
recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the
statement of financial position and notes to the financial statements. The consolidated entity does not hold any collateral.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 23. Financial instruments (continued)
47
Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating. The
institutions selected are determined by the Board.
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are
considered representative across all customers of the consolidated entity based on recent sales experience, historical
collection rates and forward-looking information that is available.
The consolidated entity has no significant concentration of credit risk with respect to any single counterparty or group of
counterparties. The class of assets described as "Trade and other receivables" is considered to be the main source of credit
risk for the consolidated entity (refer to note 10). Trade and other receivables that are neither past due nor impaired are
considered to be of high credit quality.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and
cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities.
The tables have 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. The tables include both interest and principal cash flows disclosed as
remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of
financial position.
1 year or less
Between 1
and 5 years
Remaining
contractual
maturities
Consolidated - 2024
$
$
$
Non-derivatives
Non-interest bearing
Trade and other payables
2,611,797
-
2,611,797
Interest-bearing - variable
Bank loans
900,000
2,450,000
3,350,000
Interest-bearing - fixed rate
Directors loans
-
1,336,580
1,336,580
Lease liability
201,902
-
201,902
Total non-derivatives
3,713,699
3,786,580
7,500,279
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 23. Financial instruments (continued)
48
1 year or less
Between 1
and 5 years
Remaining
contractual
maturities
Consolidated - 2023
$
$
$
Non-derivatives
Non-interest bearing
Trade and other payables
1,563,673
-
1,563,673
Interest-bearing - variable
Bank loans
2,712,719
2,500,000
5,212,719
Interest-bearing - fixed rate
Director loans
-
1,777,275
1,777,275
Lease liability
195,547
201,902
397,449
Total non-derivatives
4,471,939
4,479,177
8,951,116
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 24. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated
entity is set out below:
Consolidated
2024
2023
$
$
Short-term employee benefits
1,390,968
1,048,563
Post-employment benefits
127,304
105,381
1,518,272
1,153,944
Note 25. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by RSM Australia Partners, the
auditor of the Company:
Consolidated
2024
2023
$
$
Audit services - RSM Australia Partners
Audit or review of the financial statements
134,750
128,250
Note 26. Contingent liabilities
A demand was made in the FY20 period in respect of alleged unpaid amounts for previous work provided to the Company
and the case remains ongoing at 30 June 2024. The claimant has filed proceedings in the Federal Court of Australia. The
Company has disclaimed liability and is defending the action. The Company is of the view that it is unlikely that any
significant liability will arise. The directors are of the view that no material losses will arise in respect of the legal claim at
the date of these financial statements.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 26. Contingent liabilities (continued)
49
The Company has provided a bank guarantee of $85,813 (2023: $85,813 and $26,312) in favour of the landlord of its office
premises at Parramatta (Parramatta and Melbourne) as part of the lease agreement. The guarantee is in place to secure
the company’s obligations under the lease, including the payment of rent and other lease-related commitments.
The guarantee may be drawn upon by the landlord if the company fails to meet its obligations under the lease agreement.
As at the reporting date, no claims have been made against the guarantee, and the Company does not expect any claims
to arise.
Note 27. Related party transactions
Parent entity
Energy Action Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 29.
Key management personnel
Disclosures relating to key management personnel are set out in note 24 and the remuneration report included in the
directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
2024
2023
$
$
Payment for other expenses:
Interest paid/payable to Directors/Director-related entities
229,087
200,943
Other transactions:
Subscription for new ordinary shares by key management personnel
492,690
-
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
Consolidated
2024
2023
$
$
Non-current borrowings:
Loans from Directors
1,336,580
1,777,275
For more information on the loans from Directors, refer to note 18.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 27. Related party transactions (continued)
50
Movements of the loans from related parties are as follows:
Opening
Interest
Converted
Closing
Lender
Related party
balance
Additions
earned
to equity
balance
$
$
$
$
$
Bleach Family Co
Murray Bleach
592,425
-
75,739
-
668,164
Meehans Business
Paul Meehan
592,425
-
75,739
-
668,164
Millar & Macfarlane Pty Ltd Bruce Macfarlane
592,425
-
75,080
(667,286)
219
Derek Myers
Derek Myers
-
100,000
2,529
(102,496)
33
1,777,275
100,000
229,087
(769,782)
1,336,580
Note 28. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2024
2023
$
$
Loss after income tax
(843,246)
(11,496,896)
Total comprehensive loss
(843,246)
(11,496,896)
Statement of financial position
Parent
2024
2023
$
$
Total current assets
15,516,499
15,504,626
Total non-current assets
4,059,910
4,063,942
Total assets
19,576,409
19,568,568
Total current liabilities
13,306,343
13,738,108
Total non-current liabilities
3,786,580
4,277,275
Total liabilities
17,092,923
18,015,383
Net assets
2,483,486
1,553,185
Equity
Issued capital
9,111,474
7,337,906
Accumulated losses
(6,627,988)
(5,784,721)
Total equity
2,483,486
1,553,185
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2024 and 30 June 2023.
Contingent liabilities
For information on contingent liabilities, refer to note 26.
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 28. Parent entity information (continued)
51
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 and 30 June 2023.
Material accounting policy information
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1,
except for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Note 29. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1:
Ownership interest
Principal place of business /
2024
2023
Name
Country of incorporation
%
%
Energy Action (Australia) Pty Limited
Australia
100%
100%
Employee Share Trust
Australia
100%
100%
Energy Action Trading Pty Ltd (formerly EAIP Pty
Limited)
Australia
100%
100%
Exergy Holdings Pty Limited
Australia
100%
100%
Exergy Australia Pty Limited*
Australia
100%
100%
*
Subsidiary of Exergy Holdings Pty Limited
Note 30. Events after the reporting period
Subsequent to the year-end, Derek Myers was appointed as Chief Executive Officer (CEO), commencing on 1 October 2024.
Derek Myers will receive a base salary of $300,000 per annum, plus superannuation. His total remuneration package
includes compensation for both his role as CEO and as a Non-Executive Director.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Note 31. Earnings per share
Consolidated
2024
2023
$
$
Profit/(loss) after income tax attributable to the owners of Energy Action Limited
584,407
(298,475)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
30,793,624
27,005,723
Adjustments for calculation of diluted earnings per share:
Performance rights over ordinary shares
1,410,671
-
Weighted average number of ordinary shares used in calculating diluted earnings per share
32,204,295
27,005,723
Cents
Cents
Basic earnings/(loss) per share
1.9
(1.1)
Diluted earnings/(loss) per share
1.8
(1.1)
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
Note 31. Earnings per share (continued)
52
Performance rights are considered to be potential ordinary shares but were anti-dilutive in nature for the previous financial
year and were not included in the calculation of diluted earnings per share.
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Energy Action Limited, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
Note 32. Share-based payments
The consolidated entity operates a long-term incentive scheme (LTI) for its senior executives. The LTI is governed by the
Performance Rights and Options Plan (PROP), under which performance rights are granted to participants. Each
performance right entitles the participant to one share in the Company at the time of vesting subject to meeting the
conditions and financial consideration as outlined below.
The LTI aligns key employee awards with sustainable growth in shareholder value over time. It also plays an important role
in employee recruitment and retention.
During the year ended 30 June 2023, 1,870,000 performance rights were awarded to employees. No further performance
rights were granted during the year ended 30 June 2024.
The performance rights vest in 2 equal tranches. The first tranche vests once the Company share price remains at $0.40
cents or greater based on a 10 day Volume Weighted Average Price and the second tranche vests once the Company share
price remains at $0.80 cents or greater based on 10 day Volume Weighted Average Price.
No fair value was assigned to the performance rights as the rights were provided at no cost to the employee and no hurdles
have been met to date and therefore no rights have vested.
Set out below are summaries of performance rights granted under the plan:
Number of
rights
Weighted
average
exercise price
Number of
rights
Weighted
average
exercise price
2024
2024
2023
2023
Outstanding at the beginning of the financial year
1,470,000
$0.00
-
$0.00
Granted
-
$0.00
1,870,000
$0.00
Expired
(355,000)
$0.00
(400,000)
$0.00
Outstanding at the end of the financial year
1,115,000
$0.00
1,470,000
$0.00
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was 1.4
years (2023: 2.4 years).
Expenses arising from share-based payment transactions
The total expense arising from share-based payment transactions recognised during the period as part of employee
benefits expense was $nil (2023: $nil).
For personal use only
Energy Action Limited
Notes to the consolidated financial statements
30 June 2024
53
Note 33. Cash flow information
Reconciliation of profit/(loss) after income tax to net cash from operating activities
Consolidated
2024
2023
$
$
Profit/(loss) after income tax expense for the year
584,407
(298,475)
Adjustments for:
Depreciation and amortisation
464,599
434,357
Impairment
410,608
353,219
Share issue transaction costs
24,374
-
Other expenses - non-cash
78,238
140,105
Finance costs - non-cash
229,087
200,939
Change in operating assets and liabilities:
Increase in trade and other receivables
(345,896)
(100,592)
Increase in contract assets
(521,495)
(1,299,212)
Decrease in accrued revenue
-
132,627
Decrease in prepayments
5,773
17,790
Decrease in other operating assets
1,029
191,687
Increase in trade and other payables
1,048,124
765,645
Increase/(decrease) in contract liabilities
(62,843)
210,522
Decrease in other liabilities
(34,599)
(18,202)
Net cash from operating activities
1,881,406
730,410
Changes in liabilities arising from financing activities
Lease
Borrowings
liability
Total
Consolidated
$
$
$
Balance at 1 July 2022
7,539,055
133,970
7,673,025
Net cash used in financing activities
(750,000)
(279,729)
(1,029,729)
Interest capitalised
200,939
-
200,939
Additions of leases
-
525,099
525,099
Balance at 30 June 2023
6,989,994
379,340
7,369,334
Net cash used in financing activities
(1,800,000)
(185,158)
(1,985,158)
Interest capitalised
229,087
-
229,087
Equity settled debt
(769,782)
-
(769,782)
Other changes
37,281
-
37,281
Balance at 30 June 2024
4,686,580
194,182
4,880,762
For personal use only
Energy Action Limited
Consolidated entity disclosure statement
As at 30 June 2024
54
Basis of preparation
The Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001. It
includes certain information for each entity that was part of the consolidated entity at the end of the financial year.
Determination of tax residency
Section 295 (3A) of the Corporation Acts 2001 defines tax residency as having the meaning in the Income Tax Assessment
Act 1997. The determination of tax residency involves judgment as there are currently several different interpretations
that could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
(a) Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax
Commissioner's public guidance in Tax Ruling TR 2018/5.
(b) Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in determining
tax residency and ensure compliance with applicable foreign tax legislation.
Body corporate - Place
formed /
Ownership
interest in
body
corporate
Entity name
Entity type
Country of incorporation
%
Tax residency
Energy Action Limited (parent entity)
Body corporate
Australia
Australia
Energy Action (Australia) Pty Limited
Body corporate
Australia
100%
Australia
Employee Share Trust*
Trust
Australia
Energy Action Trading Pty Ltd
Body corporate
Australia
100%
Australia
Exergy Holdings Pty Limited
Body corporate
Australia
100%
Australia
Exergy Australia Pty Limited
Body corporate
Australia
100%
Australia
*
The trustee of Energy Action Limited Employee Share Trust is Pacific Custodians Pty Limited.
Energy Action Limited and its wholly owned subsidiaries formed a tax consolidated group with effect from 3 March 2009.
For personal use only
Energy Action Limited
Directors' declaration
30 June 2024
55
In the directors' opinion:
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
●
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 1 to the financial statements;
●
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as
at 30 June 2024 and of its performance for the financial year ended on that date;
●
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable; and
●
the information disclosed in the attached consolidated entity disclosure statement is true and correct.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Murray Bleach
Director
30 September 2024
For personal use only
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
RSM Australia Partners
Level 13, 60 Castlereagh Street
Sydney
NSW 2000
Australia
T +61 (02) 8226 4500
F +61 (02) 8226 4501
rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Energy Action Limited
Opinion
We have audited the financial report of Energy Action 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, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
For personal use only
Key Audit Matter
How our audit addressed this matter
Revenue Recognition - Refer to Note 5 in the financial statements
The Group generates its revenue from a variety of
services such as procurement, managed services,
retail services and other service lines.
Our audit team focused on revenue recognition
across these services due to its importance and
significance to shareholders. The Group has
experienced a drop in revenue over a number of
financial years, including the current financial year
without considering the R&D tax refund. Therefore,
revenue is seen as a key performance indicator and
consequently, it necessitated greater involvement of
the audit team, and a high portion of audit effort was
applied to gather sufficient audit evidence.
Refer to Note 1 (m) of the financial report for the
related disclosures.
We have:
Assessed whether the Group’s revenue
recognition policies were in compliance with
Australian Accounting Standards.
Tested samples of revenue transactions during the
year, from each revenue stream, by checking them
to underlying records and ensuring consistency to
the Group’s timing and measurement of revenue
recognition.
Going Concern - Refer to Note 1 in the financial statements
As disclosed in Note 1 of the financial statements,
the Company generated a profit after tax of
$584,407 for the year (2023: loss of $298,456) and
had a net cash inflow from operating activities of
$2,415,660.
We identify that the most significant assumption in
assessing the Company’s ability to continue as a
going concern is its ability to maintain sufficient
cash reserves to settle its liabilities as they become
due.
Management have performed a detailed analysis
over the cashflow forecasts of the entity in relation
to its imbedded budget.
The calculations supporting the assessment require
management to make highly subjective judgements.
The calculations are based on estimates of future
performance and are fundamental to assessing the
suitability of the basis adopted for the preparation of
the financial statements. We have therefore spent
significant
audit
effort,
in
assessing
the
appropriateness of this assumption.
Our audit procedures included, among others:
Assess revised terms to the facility
agreements ensuring there are no breaches
with bank covenants.
Verifying the mathematical accuracy of the
cashflow forecast assumptions.
Challenging the reasonableness of the
assumptions built into the model, in
particular:
Agreeing data inputs to budgets and
forecasts approved by the Board.
Reviewing previous budgets against actual
performance to assess the historical
accuracy of forecasting.
Agreeing other key assumptions to
supporting evidence.
For personal use only
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.
For personal use only
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 13 to 20 of the directors' report for the year ended 30
June 2024.
In our opinion, the Remuneration Report of Energy Action 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.
Cameron J Hume
Partner
RSM Australia Partners
Sydney, 30 September 2024
For personal use only
Energy Action Limited
Shareholder information
30 June 2024
60
The shareholder information set out below was applicable as at 16 September 2024.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
% of total
Number
shares
of holders
issued
1 to 1,000
10,801
0.03
1,001 to 5,000
341,615
0.88
5,001 to 10,000
277,874
0.71
10,001 to 100,000
1,093,054
2.80
100,001 and over
37,258,097
95.58
38,981,441
100.00
Holding less than a marketable parcel
14,848
0.04
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
Number held
issued
MR MURRAY EDWARD BLEACH & MRS NORMA LEIGH EDWARDS
5,632,136
14.45
MILLAR & MACFARLANE PTY LTD
4,314,789
11.07
BNP PARIBAS NOMINEES PTY LTD
3,721,604
9.55
WEBZONE HOLDINGS PTY LTD
3,414,359
8.76
ACRES HOLDINGS PTY LTD
3,051,220
7.83
MEEHANTEAM PTY LTD
2,900,698
7.44
MR BRUCE DUNCAN MACFARLANE & MS LINDA ANN MILLAR
2,067,625
5.30
TOVEELEN PTY LTD
1,978,911
5.08
HOLYOAKE INVESTMENTS PTY LTD
1,774,127
4.55
RADELL PTY LTD
1,408,846
3.61
BNP PARIBAS NOMS PTY LTD
1,000,040
2.57
J & C ALLEN SUPERANNUATION FUND PTY LTD
875,833
2.25
MR EDWARD JAMES HANNA
611,387
1.57
JASPER SUPERANNUATION FUND PTY LTD
552,553
1.42
SARAH MYERS
512,480
1.31
REDBROOK NOMINEES PTY LTD
329,000
0.84
EMERALD SHARES PTY LIMITED
300,000
0.77
PACIFIC CUSTODIANS PTY LIMITED
284,912
0.73
MR IVAN ROMAN SLAVICH & MRS ANNA SLAVICH
273,604
0.70
AMARINA SYSTEMS PTY LIMITED
254,720
0.65
35,258,844
90.45
Unquoted equity securities
Number
Number
on issue
of holders
Performance rights issued
1,115,000
25
For personal use only
Energy Action Limited
Shareholder information
30 June 2024
61
The following persons hold 20% or more of unquoted equity securities:
Name
Class
Number held
Clint Irving
Performance rights
400,000
Edward Hanna
Performance rights
200,000
Tony Giannikos
Performance rights
200,000
Substantial holders
Substantial holders in the Company as notified to the ASX via substantial shareholder notices are set out below:
Ordinary shares
Current
Latest Notice
Number held 1
Interest 1
Date
Mr Murray Bleach & related entities
5,950,817
15.26%
04/07/2024
Mr Bruce Duncan MacFarlane and Ms Linda Ann Millar
6,382,414
16.37%
02/07/2024
Mr Paul Meehan & related entities
4,792,846
12.29%
03/07/2024
Webzone Holdings Limited
3,231,406
9.20%
22/05/2024
Derek Myers
4,925,475
14.01%
16/05/2024
Mr Noel Kagi
2,945,331
10.91%
26/03/2021
Mr Stephen Twadell & related entities
1,946,209
7.50%
13/11/2012
1 as notified to the ASX. Changes of less than 1% are not required to be notified to ASX via a substantial shareholder
notice.
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.
For personal use only