22 August 2023
Appendix 4E
Summary Financial Report
Results for announcement to the market
For the financial year ended 30 June 2023
Consolidated Group
Year ended
30 June
2023
Year ended
30 June
2022
Variance to prior year
$’000
$’000
$’000
%
Revenues from ordinary activities
57,899
53,459
4,440
8.3%
Profit / (loss) after tax from ordinary
activities attributable to members
(10,278)
(13,195)
2,917
22.1%
Net profit / (loss) attributable to members
(10,278)
(13,195)
2,917
22.1%
Net tangible assets / (liabilities) per
security (cents)
0.6
1.4
The net tangibles asset backing per security of 0.6 cents presented above is inclusive of right-of-use assets and liabilities. The net tangible
asset per security, at 30 June 2023, would reduce to 0.5 cents (2022: 1.2 cents) if right-of use assets were excluded, and lease liabilities were
included in the calculation.
Dividends and distributions
The Company has not declared, and does not propose to pay, any dividends for year ended 30 June 2023.
Details of any dividend or distribution reinvestment plans in operation: Not Applicable.
Other
Additional Appendix 4E disclosure requirements and commentary on significant features of the operating performance, results of segments,
business combination, trends in performance, foreign entities and other factors affecting the results for the period are contained in the 2023
Annual Report, including the Chair’s Review and CEO’s Review.
This document should be read in conjunction with the 2023 Annual Report, including Chair’s Review and CEO’s Review, and any public
announcements made in the period by Envirosuite Limited in accordance with the continuous disclosure requirements of the Corporations Act
2001 (Cth) and the ASX Listing Rules.
This report is based on consolidated financial statements which have been audited by PKF Brisbane Audit.
Envirosuite LimitedLevel 30, 385 Bourke StreetMelbourne VIC 3000(ASX: EVS) ACN: 122 919 948www.envirosuite.comPhone: (02) 8484 5819 2023
Contents
Key metrics
At a glance
Chair’s Review
CEO’s Review
Growth & Innovation
Financial Statements
Envirosuite Limited
ABN: 42 122 919 948
Board of Directors
David Johnstone
Chair
Jason Cooper
Managing Director
Company Secretary
Adam Gallagher
Hugh Robertson
Director
Stuart Bland
Director
Sue Klose
Director
Registered office and
principal place of business
Auditor
Envirosuite Limited
Level 30, 385 Bourke St
Melbourne VIC 3000
PKF Brisbane Audit
Level 6, 10 Eagle Street,
Brisbane, Queensland 4000
Phone: 02 8484 5819
Phone: 07 3839 9733
Share Registry
Stock Exchange Listing
Boardroom Pty Limited
Level 8, 210 George Street,
Sydney, New South Wales 2000
Envirosuite Limited shares are
listed on the Australian Securities
Exchange (Code EVS)
Phone: 02 9290 9600
This 2023 Annual Report (Report) is lodged with the Australian Securities and Investments Commission and ASX
Limited. Envirosuite Ltd (EVS) ABN 42 122 919 948 is a publicly listed company in Australia. The Report contains
information prepared on the basis of the Corporations Act 2001 (Cth), 4th edition ASX Corporate Governance
Councilʼs Corporate Governance Principles and Recommendations, Accounting Standards and interpretations
issued by the Australian Accounting Standards Board and International Financial Reporting Standards and
interpretations issued by the International Accounting Standards Board.
The Report also provides information on the EVS Groupʼs activities and performance throughout the 2023 financial
year, showing how the EVS Group is creating value through its strategy, operations, governance and financial
activities.
Nothing in the Report is, or should be taken as, an offer of securities in EVS for issue or sale, or an invitation to
apply for the purchase of such securities.
All figures in the Report are in Australian dollars unless otherwise stated.
Key Metrics
$59.4m
Annual recurring revenue
12.0% YOY
443
Client sites
6.5% YOY
$57.9m
Statutory revenue
8.3% YOY
51.6%
Gross profit1
7.7% YOY
$0.5m
Adjusted EBITDA profit
Improved $4.5m YOY
ARR ($m)
$59.4m
RECURRING REVENUE GROWTH
OPERATING CASH FLOW IMPROVEMENTS
$53.0m
$46.5m
$43.0m
Jun 20
Jun 21
Jun 22
Jun 23
$15.0m
$12.9m
$15.4m
$13.9m
$15.3m
1.1%
$15.5m
9.7%
$12.6m
$14.6m
$18.7m
22%
Jun 21
Jun 22
Jun 23
CAGR
Jun 21
Jun 22
$0.7m
Jun 23
($3.2m)
($8.5m)
SITES
329
373
443
416
Americas
EMEA
APAC
Jun 20
Jun 21
Jun 22
Jun 23
ADJUSTED EBITDA GROWTH
GROSS PROFIT %
51.6%
47.9%
43.3%
32.5%
Jun 20
Jun 21
Jun 22
Jun 23
ADJUSTED EBITDA ($m)
$0.5m
($4.5m)
($4.0m)
($10.2m)
Gross margin leverage
Net revenue growth
$5.6m
Cost management
$0.6m
$0.5m
($1.2m)
($0.2m)
($0.3m)
($4.0m)
Jun 22
AEBITDA
Recurring
revenue
Non-recurring
revenue
Cost of
revenue
Operating
expenses
Other
Jun 23
AEBITDA
1 - Numbers presented on an EBITDA basis
Jun 20
Jun 21
Jun 22
Jun 23
5
6
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 DECISIONS
Envirosuite is the world’s most
advanced environmental
intelligence technology provider
Envirosuite provides cutting-edge solutions that
empower customers to optimise their operations
DATA
while protecting and strengthening their social
evidence-based science with innovative
technologies and industry expertise to reduce
operational and safety risk, improve productivity,
license and community relationships in relation to
and proactively engage with communities and
noise, vibration, odour, dust, air quality and water
regulatory stakeholders.
management.
With high-calibre customers across the aviation,
intelligence, Envirosuite helps industries to grow
mining, industrial, waste, wastewater, and
sustainably and communities to thrive.
water treatment sectors, Envirosuite combines
By harnessing the power of environmental
OPERATIONS
Decisions
here will have
an impact on
operations
O ptio n 2
O ptio n 2 a
O ptio n 1b
O ptio n s
O ptio n 1
O ptio n 1a
O ptio n 2 b
D E C ISI O
W L E D
O
K N
N S
G E
IN F O R
N
A TI O
M
D A T A
E V E N T S
7
8
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 Environmental Intelligence is the
key to improving the wellbeing of
people and the planet.
OUR DIFFERENCE
WHAT WE DO
PRODUCTS
VALUE
SCIENCE BUILT-IN
An advanced environmental
intelligence portfolio that embeds
decades of science, innovation
through expertise and complex
modelling, all made simple for users.
COMMITMENT TO CUSTOMERS
We put customers at the heart
of what we do to build long-
lasting, trusted relationships and
expand this to our partners and
stakeholders.
HUMAN INGENUITY,
ENVIRONMENTAL
TECHNOLOGY
Our global team is made up of
talented, passionate domain experts
who are driven by a collective
purpose and empowered to offer
their unique contribution everyday.
ESG ENABLING,
SDG ADVANCING
Society demands measurable,
sustainable performance. Our
technology supports ESG criteria
and advances the SDG agenda,
serving the interests of all
stakeholders and our shareholders.
LEADING ENVIRONMENTAL
INTELLIGENCE
The world's most advanced
environmental intelligence solutions
for Aviation, Waste, Wastewater,
Water Treatment, Mining & Industrial
C O L L ABORATE
Collaborating with
industry, regulators
and communities
to solve complex
environmental
challenges.
TIC
S
O
N
G
A
We are agnostic,
partnering with
a variety of
technologies to
give our customers
flexibility and choice.
We design, build
and provide secure,
science-based
environmental
intelligence software
and IoT platforms.
Domain
knowledge and
expertise across
air, dust, odour,
noise, vibration
and water.
Our customers
are empowered to
monitor, predict
and mitigate their
operational impact.
A R E
W
T
S O F
E
X
P
E
R
T
S
EVS Water
Digital twin technology for
water treatment powered
by machine learning and
deterministic modelling.
I
N
N
O
V
A
T
I
O
N
EVS Industrial
Powerful software built for
industrial facilities to act on
emissions, plan for operational
risks and engage with
stakeholders.
EVS Aviation
World leading software and
hardware built for solving
complex challenges from airport
noise, aircraft tracking and
community engagement.
BUILT FOR TODAY WITH
TOMORROW'S OUTCOMES
IN MIND
Optimise operational outcomes,
increase production, make tangible
cost savings and build social
licence to operate with surrounding
communities.
RAPID RESPONSE AND
ENGAGEMENT
Easy-to-use, location-specific public
portals to educate and engage with
communities and stakeholders,
including observation submissions
to foster transparent two-way
communication.
UNLOCK VALUE BEYOND
COMPLIANCE
Harness predictive insights from the
environmental monitoring network
to avoid unwanted impacts and keep
production moving.
ENVIRONMENTAL INTELLIGENCE
REIMAGINES RISK
Our technology empowers
organisations to unleash innovation
and continuous improvement,
enhancing operational efficiencies
while building community trust.
PRODUCT INSIGHTS
CUSTOMER FEEDBACK
9
10
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 Optimising productivity at a
large South American mine
Photo courtesy of BHP
11
PROJECT DESCRIPTION
As the importance of Social
License to Operate and
environmental impact management
constantly increases for the mining
industry, BHP continues to look for
digitalisation opportunities across
its operations to improve outcomes
both for BHP and community
stakeholders.
SELECTED TO
Translate environmental data into
meaningful action, empowering
BHP operators to optimise plans
through higher-risk periods so
that site productivity can be
maintained while protecting nearby
communities from unwanted
impacts.
12
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 Chair’s Review
Dear fellow Shareholders,
are fundamental to our customer’s core business,
EVS Water holds the promise of being the jewel
it can to guide us into the future. We are actively
It brings me great pleasure to present your
Annual Report, which showcases a period
of remarkable achievements and a Group
performance that exceeded our stated target of
as many cannot or simply will not operate
in our product portfolio crown in the future. EVS
assessing candidates with impeccable industry
without them due to regulatory requirements,
Water has specific offerings to water treatment
and board credentials, and we hope to make an
environmental and community risk management,
plant designers, operators and distributors to
announcement ahead of the Company’s Annual
or productivity demands.
optimise their three most important elements:
General Meeting in November.
David Johnstone
CHAIR
transitioning to adjusted EBITDA positive during
Our business comprises three core product
the year – in fact we were adjusted EBITDA
groups, each at a different stage of its business
positive for the full financial year. FY23 was
cycle. EVS Aviation, which dates back to the
the first full financial year in my tenure, free of
1990s, has set the industry standard for airport
major corporate events, that gave us a clear
noise and operations management and remains
runway to focus on the business and build some
serious momentum. We look ahead to FY24 with
the industry gold standard. Without Envirosuite,
our major airport customers cannot operate.
optimism as we maintain a sustained profitable
We track thousands of flights daily, providing
outlook, with over 85% recurring revenue – a
critical environmental and operational impact
testament to the strength of our business.
insights. With long-term contracts and a market-
Envirosuite continues to solidify its position
as a global market leader in environmental
intelligence. While we may not have coined the
phrase “environmental intelligence,” it is at the
heart of everything we do. We firmly believe
that it is key to the well-being of people and the
planet, which drives and guides our incredible
leading position, we anticipate significant growth
potential in aviation, especially as airports seek
to address new challenges including climate
impact while delivering better community
outcomes following the pause in investment
during the COVID years and the evolving
community expectations.
team of elite professionals as we serve our
EVS Industrial, our expansion stage solution,
diverse portfolio of global customers, positively
boasts a diverse client base, ranging from
impacting the lives of hundreds of millions of
mining to Formula 1 racing, waste management
people every year through the application of
to manufacturing. As our original Envirosuite
productivity, resource use and asset life. In its
infancy, it has been slower than we would have
liked as we bring the revolutionary technology
to life as a product suite and then seek to attract
large water utilities and associated groups to take
it on. However, we have been surely treading the
necessary steps to achieve industry acceptance
and adoption, with major groups now signed on in
Australia, North America, Europe and the Middle
East. A testimony to the potential of EVS Water
is the talent and credentials of the people and
groups it continues to attract who want to join us
directly or work in partnership.
I am proud to report that the Company has not
just achieved its stated target of transitioning to
adjusted EBITDA positive for the financial year,
we have achieved an ever better result in being
adjusted EBITDA positive for the full financial year.
I extend my heartfelt gratitude to our incredible
team of Environauts across the globe who
continue to work tirelessly, breathing life into our
vision and mission. We have over ten different
first languages spoken across our team, which
gives us the commercial reach and cultural
insight to address local issues in every corner of
the globe.
Our Company’s strength and future rest in our
team’s capable hands, and I have unwavering faith
in their ability to achieve our objectives.
To all our shareholders, I extend my sincerest
thanks. This is undeniably the most exciting
time in Envirosuite’s history and your continued
support and interest in the company are both
welcomed and highly valued.
The Company’s disciplined financial management
Sincerely,
and cost restructuring program during the year
leave investors with an insightful view of our
operational position in addition to the statutory
accounts. Furthermore, the Company has also
achieved positive statutory operating cash flow
for FY23, signifying the positive direction of the
business as we move into FY24.
David Johnstone
Chair
environmental intelligence.
Environmental intelligence entails the ability to
collect, analyse, and comprehend data related
to the natural environment and industrial
activities within that environment. With our
networks of sensors, software applications,
data analytics, and decision-making processes,
our clients address environmental challenges,
enhance sustainability, improve community
relations, meet compliance obligations, and
optimise operational productivity. Our solutions
business, it has grown and evolved year after
year, gaining critical mass in many regions and
industries. Our largest historical competitor
of “do nothing” is rapidly fading in the face of
evolving regulatory requirements and community
expectations, while customer productivity
In June, I announced my intention to step down
demands only increase. Our record growth in
as Chair in FY24, subject to a suitable successor
EVS Industrial and the diversity of opportunities
joining the board. After six years and a significant
across various industries and global regions
shareholding that I have acquired along the way, I
are a testament to the tremendous size of the
want to ensure and demonstrate that the board is
addressable market.
open to receiving and appointing the best people
13
14
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 CEO’s Review
Dear valued Shareholders,
Envirosuite has experienced remarkable growth
EVS Aviation
Jason Cooper
CEO
Envirosuite has achieved a significant milestone
in FY23, achieving an adjusted EBITDA positive
result for the first time and exceeding our stated
objective of transitioning to that position during
FY23. This has been achieved through strong
sales growth, product leadership and robust
fiscal management.
We have continued to invest into innovative
technology, delivering the most advanced
environmental intelligence technology solutions
for our customers globally. We have made
significant progress in our Mission, creating
world leading, science-based technology to
help our customers act faster, perform better
and realise their full potential with environmental
and progress across various aspects of our
business during the year. All our products –
EVS Aviation, EVS Industrial and EVS Water
– have contributed towards this growth, with
EVS Industrial delivering particularly strong
new ARR. The Americas region has stood
out with impressive results, showcasing our
ability to expand our market presence globally.
Importantly, we have continued to identify and
deliver cross-sell opportunities this year.
We continue to be laser focused on our key
market segments and our ambition is to be #1
FY23 was a breakout year for the EVS Aviation group
as the industry continued to bounce back from the
pandemic, with ARR growth of $2.5m (7.4% increase
YOY). This was further supported by the re-signing of
two of our strategically important customers, Aena and
ANA Aeroportos de Portugal, and expansion into the
Air Navigation Service Provider (ANSP) market. The
growth came through new products including Carbon
Emission Modelling and the ANSP solution, as well as
new geographic locations, primarily within the Middle
East and Africa. The awareness of the impacts of noise
and greenhouse gas emissions within the Aviation
in each of these segments in the coming years;
sector is gaining further momentum and we are well
Aviation, Mining, Industrial, Waste, Wastewater
positioned to support our customers with world-leading
and Water Treatment.
intelligence. We have included some of our
Product Led, Growth Focused
customer stories this year to bring to life the
impact that we are having.
At Envirosuite, we are committed to delivering
innovative solutions that integrate cutting-edge
products. Importantly we were able to position a total
solution for noise, carbon emissions and air quality
management for Egyptian Airports Company with five
new sites being awarded this year. We look forward to
implementing these sites in early FY24.
I am also pleased to share our strong FY23
science into our products. We have continued
results. We grew statutory revenue to $57.9m
to invest in research and development, resulting
EVS Industrial
during FY23, an 8.3% increase on last year.
in the launch of new products and expanded
During FY23 we changed the name of our product
This directly contributed to a 112.1% increase in
capabilities. These advancements have further
group from EVS Omnis to EVS Industrial, creating
adjusted EBITDA to a profit of $0.5m compared to
solidified our unique points of difference and
consistency across our portfolios and reflecting the
a loss in FY22 of $4.0m.
market leadership, allowing us to better serve our
potential for further products to support Omnis in our
customers and meet their evolving needs.
drive to secure market share in our focus sectors.
Our Company grew considerably in the year
adding 27 new customer sites (6.5% growth YOY)
Americas achieved 20.5% ARR growth this year,
and new ARR of $9.1m (7.3% growth YOY). This
led primarily by our EVS Industrial product suite
growth was supported by continued improvement
with significant growth in Mining, Industrial and
in gross profit, achieving 51.6% in FY23.
Waste. We expect the strong market tailwinds
The breakthrough of achieving a full year
adjusted EBITDA profit of $0.5m exceeded
our stated target and demonstrated the drive
towards sustainable profitability.
and Environmental Justice legislation to continue
supporting this growth. EMEA created substantial
ARR growth of 27.3% with current and new
customers in our Aviation segment and APAC saw
strong ARR growth.
EVS Industrial achieved ARR growth of $3.5m (19.3%
increase YOY). Mining was once again a strong
contributor to our growth with key expansion and scale
opportunities including companies such as BHP, Vale,
and Teck further strengthening our market leadership
position. In Waste, we successfully expanded our
partnership with Byers Scientific and we secured
additional sites with industry leaders in the USA.
15
16
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 CEO’s Review
EVS Water
People and Culture
FY23 was a year of market validation with early-
stage technology being accepted by some of
the world’s leading organisations, while still
achieving ARR growth of $0.4m (36.0% increase
YOY). NEOM’s water department (ENOWA)
selected Envirosuite to help optimise the city’s
water infrastructure and water operations to
achieve environmental objectives at two existing
desalination plants. SeweX achieved commercial
success in all our regions and this year we have
focused on the importance of scale and time-to-
value, with these customers indicating success
and further expansion opportunities.
Customer Success and Scalability
An investment into our Customer Success teams
has resulted in significant improvement in the
usage and capability of our customers around
the world. This adoption is further supported
by our dedicated environmental intelligence
Services team, which supports some of our
largest customers in their operational and
strategic plans.
This year we reduced the churn within our EVS
Industrial group due to the focus on product
and user engagement as well as alignment
on the right scalable solutions and customer
acquisition strategy. This has resulted in a
greater understanding of the customer needs
and positioned the product for future growth and
adoption in our core markets.
FY23 has seen a full year of our Operations
Centre in the Philippines and we are delighted
with the feedback that we have received around
the way these teams have engaged with and
supported our customers. This Operations
Centre has been critical to scaling the capacity
of our business globally to ensure our customers
continue to receive quality service and support.
We continuously strive for operational excellence
and have implemented key initiatives to improve
efficiency across our organization. Highlights
include notable transformations in our operations,
ensuring streamlined processes and optimized
resource allocation. Additionally, we have
conducted a thorough review and restructuring
of business costs, enabling us to enhance cost-
effectiveness without compromising quality.
continue to focus on customer success and our
core products to deliver long term value – both
direct and through our partnerships.
At Envirosuite, our people are our most valuable
asset and we prioritise their growth and well-
being. Throughout the year, we have nurtured
By leveraging the macro drivers that are
a culture of collaboration, innovation, diversity
supporting our environmental intelligence
and inclusivity. Our dedicated workforce has
ambitions, we are well-positioned to achieve
shown exceptional resilience and adaptability,
considerable growth in the coming years.
contributing to our collective success. With
the continued focus on people as our primary
competitive advantage, we are pleased to see
our employee engagement metric improve
by 6% to 75% this year. We remain committed
to fostering a supportive environment that
empowers our employees to thrive both
personally and professionally.
The continued success of our Objectives and
Key Results (OKR) framework has enabled us
to focus on what is critically important for the
Company’s success and ensure that we are
We are only just skimming the surface in our EVS
Industrial portfolio, with the validation and land-
expand-scale success that we have seen this
year positioning us strongly for ongoing growth.
•
EVS Aviation is flying again, and we are
supporting governments and private
organisations around the world to deal with a
rapidly changing landscape.
• Our world class customer sites continue to
validate our EVS Water product offering – it
is our opportunity to harness this and turn it
aligned globally, delivering on our strategy and
into meaningful growth this year.
driving improvement.
Under strong leadership, Envirosuite has been
able to navigate complex market dynamics
and steer the company towards growth and
profitability. Our leadership team remains
focused on leveraging our strengths, seizing
opportunities, and addressing challenges with
agility and determination. With a clear strategic
vision, we continue to capitalise on emerging
trends and drive sustainable success.
Outlook
Looking ahead, we are confident in our ability
to build upon our achievements and capitalise
on future opportunities. Our strong financial
performance, continued focus on innovation,
expanding market presence, high-calibre
customer portfolio and talented workforce
provide a solid foundation for sustainable
growth. We will continue to prioritise customer
satisfaction, technological advancements, and
responsible business practices to create long-
term value for our stakeholders.
We will continue to invest into the Americas
region, where we have seen strong growth
over the last few years. We have significant
momentum in the Americas and the large
customer base, and we will ensure that we
• We have a strong roadmap of solutions for
our customers that will accelerate customer
acquisition and value creation.
We have demonstrated our ability to drive
strong fiscal management over the last few
years, and we will bring this determination
into FY24 with a continued focus on cash and
capital management. We will leverage our global
operational footprint to continue improving
our financial ratios and operating leverage.
Across the Envirosuite business, we are driving
improvement in our efficiency, scalability,
productivity, and time-to-value which will
drive further improvement in our underlying
business metrics.
In closing, I would like to express my gratitude to
our shareholders for their unwavering support
and trust in Envirosuite. Together, we will forge
onwards and embrace the challenges and
opportunities that lie ahead as we strive to make
a positive impact on both people and the planet.
Signature
Jason Cooper
CEO & Managing Director
17
18
Envirosuite Annual Report 2023Envirosuite Annual Report 2023
Proudly taking innovative
Australian technology
to the world
Our Purpose
Our Vision
We believe environmental intelligence is the
We harness the power of environmental
key to improving the wellbeing of people and
intelligence, so industries grow sustainably, and
the planet.
communities thrive.
Our Mission
Our Difference
We are driven to create world-leading, science-
We are a leading environmental intelligence
based technology to help our customers act
technology provider that solves complex
faster, perform better, and realise their full
environmental challenges across noise, vibration,
potential with environmental intelligence.
odour, dust, air quality and water management
with our suite of solutions.
Our Values
Our business advantages
We know that to achieve our long-term goals,
we need to build a culture of high performance.
One where all Environauts are committed to
our purpose, working collaboratively as a team
while focusing on innovation to deliver value to
our customers. As Environauts, we rise to the
challenge because:
We’re driven by purpose
We move as one
First mover – a global first mover in
environmental intelligence software and IoT
Commitment to customers – we have long-
lasting relationships with sector-leading
customers
Global presence – established operations
and high performing teams across key growth
markets
We believe customers are the reason
Digital transformation – deeply embedded into
customer operations and their digital ecosystems
We earn the trust
We challenge the now
Importance of problem statement – growing
focus on environmental impact due to ESG, SDG
and Social Licence to Operate
4000+
connected devices
providing situational
awareness to
operations
45+
countries with
more engaged
communities
& sustainable
industries
250+
Environauts, elite in
their respective fields
30+
years
experience
19
20
Envirosuite Annual Report 2023Envirosuite Annual Report 2023
Growth &
Innovation
taking
Envirosuite
from strength
to strength
Envirosuite has proudly delivered a very
Envirosuite’s innovative technologies continue
causing emissions. The Company’s proprietary
successful FY23 that includes a record year in
to be adopted by some of the world’s most
weather forecasting system, Metriqa, is a
sales with $9.1m in new ARR (7.3% YOY) and
prestigious and progressive companies, helping
uniquely differentiated capability that allows
$8.1m in Project Sales, strong customer adoption
them carve a path through ever-increasing
customers to predict more impactful, site-
of innovative solutions and further differentiation
production targets and demand that is balanced
specific weather conditions – supporting
in our focus segments. This success has been
with a continual desire to work with communities
critical on-site operational decisions. These
fuelled by both the expanding and scaling of
and within regulatory boundaries.
improvements, alongside the single pane of
Envirosuite’s high-calibre customer base as well
as through landing new marquee customers.
The Americas contributed strongly, growing
20.5% YOY with revenues from the EVS
Industrial portfolio now approaching the
significant revenues from EVS Aviation as
For the Aviation industry, the Company
developed new systems and aligned with global
standards to help nationwide airspace agencies
reduce the carbon footprint of aircraft operations
glass view of multiple environmental parameters
impacting operations in one platform, has proved
a very compelling value-add and a strong point of
difference in the Envirosuite solution.
and reduce passenger wait time on the ground
All three products within the EVS Water – SeweX,
and in the air. New airspace noise modelling
Plant Optimiser and Plant Designer – have
Environmental Justice and Environmental, Social
and planning tools to evaluate proposed flight
empowered operators and their service providers
and Governance (ESG) tailwinds continue to
paths and noise impacts in detail have also been
to gain deeper insights into their networks and
drive demand for Envirosuite’s solutions. APAC
released this year, supporting communities and
systems. These solutions allow them to evaluate
added $2.1m in ARR during the year, landing
airports to build growth plans together.
the effectiveness of different capital project
well-recognised organisations across all sectors
and expanding and scaling solutions across key
customer sites. EMEA has significantly grown its
customer base in the Middle East and Africa with
strategic wins across both EVS Water and EVS
Aviation, while also signing multi-year multi-site
renewals with several key customers.
FY23 was a year of continued innovation
leadership in EVS Industrial, evidenced through
the creation a ground-breaking airborne
dispersion modelling system, EmissionMesh,
which provides previously infeasible detail
facility-wide to locate areas of an operation
plans and optimise chemical dosing and usage
strategies with unprecedented speed, accuracy,
and independence.
21
22
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 Growth & Innovation
Total ARR
Total sites
$36.4m
188
Leading the industry in operational and
environmental optimisation
One of the world’s leading Air Navigation Service
across its four major airports, as well as tracking
Providers (ANSP) is seeking to optimise both the
additional metrics around flight efficiency and
flight experience of airline passengers and the
environmental impact in line with the Greenhouse
ground and airborne operational performance
Gas (GHG) protocols and Science Based Targets
of airports and airlines to deliver improved
initiative (SBTi).
environmental outcomes.
With this solution, the ANSP will be empowered
The ANSP selected Envirosuite due to its proven
to increase their progress around operational
position as the industry’s leading technology
and environmental optimisation, enabling them
partner. Envirosuite will provide a single
to demonstrate these proactive and progressive
automated solution that can measure, analyse
improvements to community and external
and communicate operational performance
stakeholders.
The Aviation industry is up and flying again as
Envirosuite continues to compete strongly and win.
The Aviation industry is up and flying again, and
These exciting customer wins were joined by
Envirosuite global market leadership position
further securing multi-year renewal agreements
sees the Company well-placed to deliver on
with several key strategic commercial aviation
the industry’s evolving needs. Airports are
customers, such as Aena in Spain, Manchester
resurrecting pre-pandemic projects and initiating
Airports Group in the UK and ANA Aeroportos
new plans to reduce their environmental footprint
de Portugal, often accomplished through
while optimising operations. The Company’s
rigorous competitive tender processes – a
strong market leadership position has seen it
total of 20 airports renewed across these three
selected to work on exciting and innovative
valued customers.
initiatives. This includes an extension of
Envirosuite’s work as part of a consortium with
NASA to bring supersonic travel back to the
skies, and work with Skyports Infrastructure,
a first mover in the urban air mobility space, to
provide a noise management solution for their
vertiports testbed in France.
An innovative new application of the EVS Aviation
portfolio was signed and is now being delivered
to a leading Air Navigation Service Provider
(ANSP), where Envirosuite is working alongside
the customer’s team to redesign the airspace
surrounding their major airports nationwide.
By leveraging Envirosuite’s existing solutions
Envirosuite continues to compete strongly and
in flight path tracking, on-ground tracking, and
win. The Company signed 16 new airports during
carbon emissions modelling technology, the
the year, including a 10-year deal with Egyptian
ANSP can make changes to where and how
Airports Company to provide noise, carbon
planes fly, to decide what impact that has on
emissions modelling, and air quality management
carbon emissions and the associated carbon
solutions for five new airports, as well as signing
footprint, across the country.
two new airports in Abu Dhabi. The Middle
East and Africa are relatively unpenetrated
markets for the Company, and so Envirosuite has
leveraged existing relationships with established
local partners to ensure our customers receive
the value and support needed and to minimise
potential risk to Envirosuite in those markets.
Excitingly, FY23 has seen the Company cross-sell
its EVS Industrial air quality management solution
to six airports this year – Biggin Hill Airport in
the UK and five new airport sites in Egypt. Once
these early implementations are validated,
Envirosuite will look to market this EVS Industrial
solution to other aviation customers globally.
A complete environmental solution helping to
achieve sustainability best practice
As the host country of the United Nations Climate
emissions modelling and air quality management.
Change Conference (COP27) in 2022, Egypt is
Envirosuite’s proven position as the global
committed to environmental sustainability and
leader in aviation environmental intelligence
best practices, and climate impact reduction.
and its strong existing relationship with Cairo
Egyptian Airports Company (EAC) saw an
International Airport gave EAC confidence in its
opportunity across its 11 international and seven
selection decision.
domestic airports to address these commitments
through environmental management solutions.
Envirosuite, through local partner Delta Company
for Electronics, will help EAC understand and
EAC selected Envirosuite because of the
improve local air quality conditions at and
Company’s demonstrated experience in providing
around five of its airports, as well as understand
multi-parameter environmental management
and reduce the aviation noise resulting from
solutions globally including noise, carbon
operations.
Achieving targeted community engagement, at scale
Proactive community engagement around
and its ability to leverage and present its airports’
aviation noise continues to be a priority for Aena
existing ANOMS datasets, Aena was confident
across its portfolio of airports, so much so that
in selecting the solution as a central part of its
Aena manages its noise data according to the ISO
strategy.
20906 standard to ensure high quality. The need
to foster greater trust and social license is always
present, leading Aena to review its community
engagement strategy.
InsightFull will provide communities around
three of Aena’s major airports with a self-serve
information portal that presents high-quality,
location-specific data from the ANOMS system
Envirosuite has been a long-term trusted partner
in easy-to-understand formats. This will be key
for Aena across 12 of its airports in Spain. After
to helping Aena continue to foster trust and
reviewing the Company’s innovative location-
strengthen its community relationships.
based InsightFull community engagement portal
23
24
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 Growth & Innovation
Total ARR
Total sites
$21.6m
238
Strong growth results in EVS Industrial expected to
continue on the back of ESG and Environmental Justice
macroeconomic drivers.
EVS Industrial has benefited strongly from
managing one or two environmental parameters
the global tailwinds around Environmental,
with EVS Industrial solutions so far.
Social, and Governance (ESG) credentials and
investment, as well as the significant momentum
that the Environmental Justice movement and
resulting legislation has generated in the US.
These macroeconomic drivers create the perfect
mix for Envirosuite’s land, expand and scale
strategy to continue delivering exciting growth.
The Environmental Justice momentum has fuelled
growth in the Waste sector particularly with US
municipalities, which are typically the owners
and operators of landfill sites in the country. This
has led to the continued success of Envirosuite’s
strategic partnership with Byers Scientific. The
combined Envirosuite-Byers solution has now
The Company’s product strategy of combining
been adopted across four landfill sites, with
several essential environmental parameters
a solution at an existing site being expanded
that impact operational efficiency, surrounding
significantly during the year following a highly
communities’ quality of life, and the environment,
successful initial contract term. An innovative
is now delivering new large-scale uptake and
partnership, the combined Envirosuite-Byers
adoption with multiple global mining companies.
solution delivers real-time indicative odour
These operations are now effectively managing
monitoring and predictive emission alerting
noise, vibration, dust, air quality, odour, water
which empowers landfills to apply targeted
management and weather using EVS Industrial’s
odour mitigation strategies only when and where
flagship integrated environmental operations
they are needed rather than applying blunt
platform, Omnis.
mitigation techniques across an entire landfill site
The Mining sector delivered the largest
unnecessarily.
percentage of the growth for EVS Industrial in
While Envirosuite remains focused on the four
FY23, with landmark new sites adopting Omnis
focus sectors for EVS Industrial, the broad
to improve operational decision making and
capability of Omnis has received notable interest
strengthen their Social License to Operate. The
from many sectors beyond the focus four. This
Company is now seeing new customers take
interest as converted into signed customer
up EVS Industrial solutions to manage multiple
engagements during FY23 in additional sectors
parameters in fewer transactions – a testament
including the dairy, protein processing, chemical
to the traction and value Envirosuite has built
& petrochemical, pet food production, and semi-
in Mining. It also represents a strong upsell
conductor chip manufacturing industries.
opportunity to existing customers who are only
Maintained productivity and mitigated community
impact, even during high-risk periods
As the importance of Social License to Operate
and environmental impact management constantly
increases for the mining industry, BHP continues
to look for digitalisation opportunities across its
operations to anticipate possible events, identify
the origin of possible emissions, and minimise
the risk of those emissions impacting nearby
communities and site productivity.
Following the successful implementation and
adoption of an Envirosuite solution at another site
in Chile two years ago, BHP have commissioned
Envirosuite to deliver this same solution to a large
copper mine and nearby port operation.
The EVS Industrial solution identifies when
environmental risks are developing and predict
whether risks may become issues many hours
in advance. This empowers mine operators to
optimise their operational plans through these
higher-risk periods, maintaining site productivity
while protecting nearby communities from
unwanted impacts. Easy-to-understand reports
inform the mine’s action-response plans,
translating environmental data into meaningful
action on the ground.
Strengthened case to expand operations using
proven emissions management solution
With various development activities planned to
support future growth, BINGO Industries’ Eastern
Creek Recycling Ecology Plant (REP) needs to
ensure that the odour, dust and noise impacts
from its operations are appropriately managed.
The ability to provide a fully integrated solution to
manage odour, dust, and noise, where data from
existing instrumentation owned by BINGO could
be presented alongside data from Envirosuite-
provided instrumentation all in a single platform,
was a key factor in BINGO’s decision to partner
with Envirosuite.
Eastern Creek REP now has a comprehensive
environmental management system that supports
its expansion plans while enabling targeted
emission mitigation and control measures.
Creating a co-existence between tourism
and wastewater treatment
Urban Utilities (UU) operates a Sewage
that guides existing odour control methods at
Treatment Plant at Luggage Point, Brisbane. Due
the facility and provides a dynamic approach to
to a planning decision, the new Brisbane Cruise
predicting and assessing impacts.
Ship Passenger Terminal was built immediately
adjacent to the plant. UU needs to avoid odour
impacts on the port facility, along with any
consequential regulatory involvement and
unfavourable publicity.
By incorporating continuous odour monitoring
data with onsite weather data and predictive risk
forecasts, UU has reduced its risk of regulatory
investigation and financial penalties, reduced its
odour control costs, shortened the investigation
Envirosuite worked closely with UU to understand
time of emission events and community
the Luggage Point operation and surrounding
complaints, and digitised previously manual data
environment, tailoring a fit-for-purpose solution
collection.
25
26
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 Growth & Innovation
Total ARR
Total sites
$1.4m
17
Optimising water infrastructure and operations in Saudi Arabia
NEOM is a visionary cross-border city in north-
western Saudi Arabia, fuelled by USD $500 billion
in funding and with a projected population of 8.5
million. Seeking to be a model for future cities,
NEOM has a strong focus on environmental
responsibility and sustainability including
energy efficiency, renewable energy, water, and
sustainable transportation.
Following a review of potential solutions on the
market, the scalability and flexibility of the Plant
Optimiser software and its advanced combination
of deterministic modelling and AI, coupled
with the technical expertise of the EVS Water
team, gave NEOM’s water department (ENOWA)
confidence that Envirosuite was the right
technology partner for NEOM.
Envirosuite empowers ENOWA to develop and
optimise its water treatment process designs and
capital cost plans at two existing desalination
plans, supporting climate change initiatives by
simulating net zero technologies and assessing
their performance such as Zero Liquid Discharge.
Delivery of quantifiable value ensuring
innovative early adopters become lighthouse
reference cases for EVS Water.
Envirosuite has remained focused on delivering
Similarly, the Hong Kong Water Supplies
strong and quantifiable value to early EVS Water
Department (WSD) Tai Po Water Treatment Works
customers during FY23, a critical step for early-
(WTW) has reported strong return on investment
stage technology to ensure new innovative
following its adoption of Plant Optimiser for its
customers become lighthouse reference
first ever digital twin project in conventional
cases that can be used to accelerate future
water treatment. Envirosuite has proven to WSD
success. This focus has resulted in significant
that the models within Plant Optimiser can be
advancements within the portfolio, including
relied upon to provide accurate, actionable
improved configuration tools enabling rapid
advice on optimal coagulant dosing and alum
platform implementation and significant product
usage without compromising water quality
scalability improvements resulting in much faster
objectives. The platform identified the potential
processing times and the ability to manage very
for a 23% reduction in alum usage at the plant
large network models. Additional advancements
compared to business-as-usual operations, and
include improvements to user interfaces enabling
has reduced the operations team reliance on jar
customers to start analysing results faster and
tests to ensure high-quality drinking water.
more intuitively and the flexibility to arrange
scenarios and results according to the user’s
specific requirements or preferences.
Envirosuite’s success with WSD was critical in
landing NEOM, a visionary cross-border city in
north-western Saudi Arabia fuelled by USD $500
Off the back of this work, SeweX customers are
billion in funding and a highly referenceable site
reporting the improved ability to assess chemical
within the Middle East region. NEOM’s water
dosing requirements in their sewer networks,
department (ENOWA) chose EVS Water to help
including the locations within the network where
optimise the city’s water infrastructure and
dosing would be most effective, within just one
water operations to achieve their environmental
week. Customers are also reporting the improved
objectives at two existing desalination plants.
ability to assess capital works proposals within
Envirosuite and the EVS Water platform will
sewer networks and associated chemical dosing
empower ENOWA to develop and optimise its
options to quickly understand the impacts to the
water treatment process designs and capital cost
sewer network if those proposed works were
plans, and support climate change initiatives by
undertaken.
simulating net zero technologies and assessing
their performance, such as Zero Liquid Discharge.
Digital twin technology that Water Treatment can rely on
The Water Supply Department (WSD) provides
drinking water to a population of about 7.5 million
and recently expanded its award-winning Tai Po
Water Treatment Works (WTW) plant to produce
800,000 cubic metres of quality drinking water
per day. The WSD is continuously reviewing
advanced technologies to enhance operational
efficiencies and drinking water safety.
The WSD selected EVS Water’s Plant Optimiser
software for its first ever digital twin project in
conventional water treatment at Tai Po WTW.
This technology uniquely combines both machine
learning and deterministic modelling to predict
incidents and identify optimal plant settings with
higher accuracy.
Plant Optimiser successfully created a digital
twin model representing the coagulation, lime
dosing, flocculation, and dissolved air flotation
(DAF) settling systems of Tai Po WTW. The
solution identified opportunities to reduce alum
dosing by 23% compared to business-as-usual
operations, and the operational team is now less
reliant on jar tests to ensure high-quality drinking
water for the local community.
Envirosuite’s SeweX delivering quantifiable ROI for customers
Customers have reported multiple examples
of strong ROI through Envirosuite’s SeweX
technology. One site was able to objectively
review a vendor proposal for magnesium
hydroxide dosing in the network. Using SeweX,
the customer was able to identify that the
locations of the dosing solution should be moved
to achieve the most impact. It was also able to
identify the dosing concentrations needed to
achieve target levels of gas in the network.
Another site’s in-service assets team used
SeweX to assess a vendor proposal to replace
existing decommissioned and sealed biofilters
with a replacement system. By simulating several
chemical dosing options to understand what the
impact would be across the network, the site
avoided spending significant time and money on
third party consulting projects.
At another site, modelling of a dosing unit at a
pumping station showed that a 50mg/L dose of
magnesium hydroxide would meet the 200pm
objective at a network hotspot and deliver an
average of approximately 100ppm across the
network. This modelling replaced lengthy and
expensive consulting studies and projects.
27
28
Envirosuite Annual Report 2023Envirosuite Annual Report 2023
Optimising water
infrastructure and
operations in Saudi Arabia
Photo courtesy of NEOM
PROJECT DESCRIPTION
NEOM is a visionary cross-border
city in north-western Saudi Arabia,
fuelled by USD $500 billion in
funding and with a projected
population of 8.5 million. Seeking
to be a model for future cities,
NEOM has a strong focus on
environmental responsibility
and sustainability, including
energy efficiency, renewable
energy, water, and sustainable
transportation.
SELECTED TO
Develop and optimise water
treatment process designs and
capital cost plans at two existing
desalination plans, supporting
climate change initiatives by
simulating net zero technologies
and assessing their performance
such as Zero Liquid Discharge.
30
Envirosuite Annual Report 2023Envirosuite Annual Report 2023 Directors’ report
Your directors present their report, together with the financial
statements of the consolidated entity (referred to hereafter as the
Group) consisting of Envirosuite Limited (ABN: 42 122 919 948) and its
controlled entities (referred to hereafter as the Company, Group or
Envirosuite), for the financial year ended 30 June 2023.
Directors
The following persons were directors of the Company at any time during, or since the end of, the financial year up to the
date of this report, unless otherwise stated:
David Johnstone (Non-executive Chair)
Jason Cooper (Managing Director and CEO)
Hugh Robertson (Non-executive Director)
Sue Klose (Non-executive Director)
Stuart Bland (Non-executive Director)
Tim Ebbeck (Non-executive Director) – Resigned 30 September 2022
Particulars of each director’s experience and qualifications are set out later in this report.
Principal activities and significant changes in nature of activities
During the period, the principal continuing activities of the Group consisted of the development and sale of environmental
management technology solutions.
31
Envirosuite Annual Report 2023 Review of operations for the year
Operating results
The loss of the Group after providing for income tax amounted to $10.3m (FY22: $13.2m).
$000
Recurring revenue
Non-recurring revenue
Other revenue
Total operating revenue
Cost of revenue
Gross profit
Operating expenses
Other income / (expense)
Operating deficit
Net Loss after tax
FY23
49,487
8,123
289
57,899
(28,728)
29,171
(40,362)
143
(11,048)
(10,278)
FY22
Movement $
Movement %
43,877
9,563
19
53,459
(28,355)
25,104
(37,769)
90
(12,575)
(13,195)
5,610
(1,440)
270
4,440
(373)
4,067
(2,593)
53
1,527
2,917
12.8%
(15.1%)
1,421.1%
8.3%
(1.3%)
16.2%
(6.9%)
58.9%
12.1%
22.1%
Adjusted EBITDA
481
(3,962)
4,443
112.1%
Other Key Metrics
ARR ($000)
Sites
Recurring revenue as %
of total revenue
Gross profit % (statutory)
Key highlights
59,433
443
85.5%
50.4%
53,044
416
82.1%
47.0%
6,389
27
3.4%
3.4%
12.0%
6.5%
4.1%
7.3%
•
Total recurring revenue increased by $5.6m (12.8%) over FY22. During the second half of FY23, three of five sites with
Department of Defence churned. Recognising, but excluding this abnormal churn event, recurring revenue increased
17.4%. This increase in recurring revenue reflects the strong growth in ARR recorded in FY23 and notably for both the
Americas region and the EVS Industrial product group.
•
Significant growth was experienced in FY23 in Americas with recurring revenue growth of 28.2% and sales growth
of 20.5%. While recognising the importance of the global reach, the Americas remain a strategically important region
for Envirosuite given the size and scale of potential customers in that market. EMEA experienced double digit growth
in recurring revenue, and while APAC recurring revenue decreased over the year by 0.3%, recurring revenue growth
excluding this churn event was an increase of 11.4%. Sales in EMEA exceeded all regions at 27.3% with a significant
aviation deal closed in Q4 which will contribute to strengthening EMEA recurring revenue in FY24.
•
Strong recurring revenue growth continued in EVS Industrial of 25.2% over FY22, driven by ARR sales growth of
19.3%. Double digit growth was seen in EVS Aviation recurring revenue of 12.3%.
• Gross profit (statutory) continued to improve and increased by 3.4bps to 50.4% since FY22 (47.0%) and 8.0bps over
FY21 (42.4%) as a result of an increase in higher margin recurring revenue (85.5% of total revenue in FY23 compared
to 82.1% FY22) and improvements to product infrastructure and deployment methodologies.
32
Envirosuite Annual Report 2023 Directors’ report
• Operating expenses increased 6.9% in FY23, but remained stable at 69.7% of total operating revenue (FY22 70.7%),
as the Group continues to innovate and develop the product suite and increase its operations within the existing
geographic footprint. Ongoing global transformation projects continue as planned, including data centre migration
and scaling of the Group’s centre of excellence in the Philippines.
•
The Group completed a restructure during the period, responding to financial performance and the Group’s stated
objected of adjusted EBITDA profitability on a run rate basis during FY23. This resulted in a restructure of roles
globally including accelerated transition to the Philippines centre of excellence and a critical assessment of suppliers.
•
Reporting an adjusted EBITDA profit of $0.5m, represents a significant improvement of $4.4m over FY22. This result
was achieved through a combination of underlying revenue growth, gross margin expansion and strong operating
cost management.
Revenue by Region
$000
Recurring revenue
Asia Pacific
EMEA
Americas
Total Recurring revenue
Trading revenue
Asia Pacific
EMEA
Americas
Total Trading revenue
ARR
Asia Pacific
EMEA
Americas
Total ARR
Sites
Asia Pacific
EMEA
Americas
Number of sites
FY23
FY22
Movement $
Movement %
15,323
15,448
18,716
49,487
17,359
17,661
22,590
57,610
15,187
20,255
23,991
59,433
118
136
189
443
15,372
13,901
14,604
43,877
17,056
16,541
19,843
53,440
17,224
15,915
19,905
53,044
116
125
175
416
(49)
1,547
4,112
5,610
303
1,120
2,747
4,170
(2,037)
4,340
4,086
6,389
2
11
14
27
(0.3%)
11.1%
28.2%
12.8%
1.8%
6.8%
13.8%
7.8%
(11.8%)
27.3%
20.5%
12.0%
1.7%
8.8%
8.0%
6.5%
Double digit growth in total ARR continues at 12.0%, with underlying growth at 19.7% excluding the churn event in
Q3. Despite the churn event, recurring revenue growth of 12.8% was achieved reflecting the diverse revenue mix and
underlying revenue growth globally.
Americas and EMEA achieved outstanding ARR growth of 20.5% and 27.3% respectively for FY23. The strong growth
in recurring revenue for the Americas of 28.2% is the realisation of the ARR growth in FY22 of 31.3%. EMEA achieved a
strong sales result in H2 FY23, closing a significant aviation opportunity in Q4 FY23 which will drive continued growth in
recurring revenue in FY24.
Non-recurring revenue performed strongly in H2 FY23 as projects were delivered globally.
33
Envirosuite Annual Report 2023 Revenue by Product
$000
FY23
FY22
Movement $
Movement %
Recurring revenue
EVS Aviation
EVS Industrial
EVS Water
Total Recurring revenue
Trading revenue
EVS Aviation
EVS Industrial
EVS Water
Total Trading revenue
ARR
EVS Aviation
EVS Industrial
EVS Water
Total ARR
Sites
EVS Aviation
EVS Industrial
EVS Water
Total Sites
33,052
15,898
537
49,487
37,147
19,779
684
57,610
36,434
21,643
1,356
59,433
188
238
17
443
31,061
12,699
117
43,877
34,961
18,352
127
53,440
33,908
18,139
997
53,044
172
231
13
416
1,991
3,199
420
5,610
2,186
1,427
557
4,170
2,526
3,504
359
6,389
16
7
4
27
6.4%
25.2%
359.0%
12.8%
6.3%
7.8%
438.6%
7.8%
7.4%
19.3%
36.0%
12.0%
9.3%
3.0%
30.8%
6.5%
EVS Industrial remains the strong growth product experiencing 25.2% increase in recurring revenue for FY23. This revenue
outcome was supported by the 23.9% growth in ARR during FY22. The ARR growth within EVS Industrial continues in
FY23, with 19.3% growth achieved. This ARR growth is driven through the focus on key market segments including mining
and waste management. For these particular segments, EVS Industrial enables users to improve analysis for timely
decision making utilising current and predictive modelling outcomes.
Growth in EVS Aviation ARR of 7.4% was impacted by the significant churn event in Q3. While still experiencing growth
over the year, underlying growth of 19.3% was achieved, excluding this churn event. Over FY23 EVS Aviation achieved new
ARR growth of $4.2m. In combination with their underlying monitoring requirement, airports have adopted the recently
released carbon emissions modelling product and the Group has expanded with a distinctive offering to the Air Navigation
Service Providers leveraging the existing EVS Aviation platform. Aviation remains the largest product by revenue measure
at 66.8% of total recurring revenue.
Global deployment of EVS Water solutions, together with the enhanced deployment capabilities has been a significant
factor with the product’s growth over FY23. Specifically, the Group has released product updates to EVS Water that has
increased the speed at which SeweX can be deployed for new customers and introduced new functionality for larger,
more complex sewer networks. These updates will enable more timely implementation of signed opportunities.
34
Envirosuite Annual Report 2023 Directors’ report
Earnings before interest, tax, depreciation and amortisation (EBITDA)
$000
FY23
FY22
Movement $
Movement %
Net loss after tax
(10,278)
(13,195)
Add back: Tax (benefit) / expense
Add back: Net finance expense
Add back: Depreciation and amortisation
EBITDA
Less: AASB 16 Depreciation & interest
Add back: Share based payments
Add back: Foreign currency (gains) / losses
Add back: Restructuring cost savings
Add back: Transaction and integration costs
Add back: Philippines set up costs
Add back: Property make good provisions
Adjusted EBITDA
(960)
190
9,435
(1,613)
(1,191)
743
(82)
1,833
671
159
(39)
481
410
210
8,157
(4,418)
(1,688)
1,477
(202)
112
-
245
512
2,917
(1,370)
(20)
1,278
2,805
497
(734)
120
1,721
671
(86)
(551)
22.1%
(334.1%)
(9.5%)
15.7%
63.5%
29.4%
(49.7%)
59.4%
1,536.6%
-
(35.1%)
(107.6%)
112.1%
(3,962)
4,443
EBITDA is a non-IRFS measure and is calculated by adding back depreciation, amortisation and interest from net loss
before tax. Adjusted EBITDA also adds back share based compensation expense, foreign currency gains and losses
and excludes the impacts of adopting AASB 16, as the application of the standard results in operating expenses being
excluded from EBITDA. Additionally, costs which are not seen as recurring are excluded, including restructuring costs and
cost savings, transaction and integration costs and other costs.
Adjusted EBITDA improved 112.1% in FY23 resulting in a profit of $0.5m compared to a loss of $4.0m in FY22.
Along with revenue growth, gross margin expansion and strong operating cost management, the Group completed a
restructure in February 2023. The restructure, being driven by the strategic objective of achieving adjusted EBITDA
profitability on a run rate basis during FY23, involved a combination of supplier reviews and consolidation of personnel
roles within the Group. Transaction and integration costs in FY23 represent non-recurring project costs including
transformation from physical to cloud based infrastructure and corporate activity.
Financial position
$000
Cash and cash equivalents
Current assets
Current liabilities
Net current assets
Total tangible assets
Net tangible assets
FY23
8,277
26,762
(22,137)
4,625
36,142
7,969
FY22
16,292
34,979
(19,657)
15,322
41,114
16,097
Movement $
(8,015)
(8,217)
(2,480)
(10,697)
(4,972)
(8,128)
35
Envirosuite Annual Report 2023
Adjusted operating cash flow
$000
FY23
FY22
Movement $
Movement %
Cash from / (used in) operating activities (statutory)
746
Less: Repayment of AASB 16 lease payments
(1,292)
Non-recurring
Add back: Restructuring cost savings
Add back: Transaction and integration costs
Add back: Philippines set up costs
Add back: Property make good provisions paid
Cash from / (used in) operating activities
excluding capitalised development costs
1,833
671
159
473
(3,188)
(1,878)
112
-
245
-
3,934
586
1,721
671
(86)
473
123.4%
31.2%
1,536.6%
-
(35.1%)
-
2,590
(4,709)
7,299
155.0%
Less: Capitalised development costs
Adjusted operating cash outflow
(5,760)
(3,170)
(4,750)
(9,459)
(1,010)
6,289
(21.3%)
66.5%
Transformation of operating cash flow occurred in FY23:
• Cash from / (used in) operating activities (statutory) improved significantly by $3.9m to a cash inflow of $0.7m (FY22
outflow of $3.2m) as a result of increased recurring revenue, improved gross profit and a controlled cost base.
•
Adjusted operating cash outflow of $3.2m has improved $6.3m over FY22. The positive movement in adjusted
operating cash flow of $2.8m has been the add back of the cash impact of the non-recurring costs (on the same
basis as for Adjusted EBITDA), partially offset by the increased investment of $1.0m in Envirosuite product suite in
capitalised development costs.
Cash and Cash Equivalents decreased by $8.0m during the current reporting year. The decrease in cash of $8.0m is
largely related to spend on revenue generating investment activities of:
•
$5.8m cash used in the acquisition of intangible assets (FY22 $4.8m) which consists of capitalised product
development costs across EVS Aviation, EVS Industrial and EVS Water,
•
$2.3m in payments for Property, Plant and Equipment (FY22 $1.8m) which includes investment in revenue generating
assets, equipment leased to customers of $1.6m (FY22 $1.3m), and
• Cash inflow from operating activities of $0.7m in FY23 and positive foreign exchange impact of $0.5m was offset by
cash outflow used in financing activities of $1.3m in payments for lease liabilities related to buildings (FY22 $1.9m).
The Group has no debt (other than lease liabilities) (FY22 $nil)
Net tangible assets have decreased by $8.1m largely due to the decrease in cash and cash equivalents comprising $8.0m
from investment in revenue generating activities including product development and equipment leased to customers.
The Directors continue to monitor the impacts of the current economic climate on group operations and respond
appropriately to risks identified.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the Group in the year.
Dividends paid or recommended
No dividends were paid by the Company to members during the financial year. No dividends were recommended or
declared for payment to members during the financial year.
Events after the reporting period
The Directors are not aware of any matters or circumstances that have arisen since 30 June 2023 that have significantly
affected or may significantly affect the operations of the Group in subsequent financial years, the results of those
operations, or the state of affairs of the Group in future financial years.
36
Envirosuite Annual Report 2023 Directors’ report
Business growth strategy
The Group continues to be focused on delivering growth and investing in capability.
Growth is being driven by:
•
•
•
•
recognising first mover advantage in environmental intelligence and accelerating the product roadmap across all
product suites;
innovative product development, across all product sets, and continuing innovation globally based on customer and
industry feedback ;
land, expand and scale across all product suites and geographies; and
strong regional growth lead by the Americas.
Acceleration of capability is being delivered through investment into:
•
•
•
engineering: to increase product development and innovation capability;
operations and support: improving performance, customer support and instrument innovation; and
security: safeguarding the operational environment to protect existing and future customers.
Material business risks
The Group is subject to risks of both a general nature and ones that are specific to its business activities including but not
limited to:
•
Retaining existing customers and keeping them engaged in the product
The Group generates more than half of its revenue from the Aviation industry, which leads to a degree of revenue
concentration. The Group manages this risk by running regular sessions on product capabilities and improvements
with customers, in addition to incorporating customer feedback into product design and capabilities ultimately to
improve customer satisfaction. The growth of EVS Industrial and cross sell between customer market segments is
further mitigation of this risk.
•
Acquiring new customers and accelerating sales within all product lines and geographies
Envirosuite’s business strategy drives the acquisition of new customers and accelerate sales globally in a competitive
market where technology and products are changing. The Group participates in industry forums and promotes its
three product lines via global marketing opportunities to ensure prominent industry positioning as a global leader in
environmental intelligence.
•
Product capabilities
Operating within a competitive technological market drives the requirement to remain aware of technological
advancements. Through the research and development initiatives, the Group invests in maintaining and growing each
product’s capability as well as ensuring it continues to meet current and future market requirements.
•
Recruitment and retention of employees
The Group regularly reviews its employee value proposition and has developed a range of programs designed to
attract and retain skilled employees and foster diversity and inclusion.
• Operational risk
Operating in multiple regions, the Group is exposed to the complexity of business operations, including legal and
compliance risks. The Group manages these risks by maintaining an effective risk management framework and
processes, including cyber and data privacy processes.
•
Intellectual property risk
Advanced networks and product security measures, together with appropriate legal restraints are in place to protect
the group’s intellectual property, minimising the risk to the infringement of intellectual property rights.
37
Envirosuite Annual Report 2023 Likely developments and expected results of operations
There are no likely developments in the operations of the Group that were not finalised at the date of this report.
Environmental regulation
The Group is not subject to any significant environmental regulation under a law of the Commonwealth or of a State or
Territory, in which the group operates.
Information on directors
David Johnstone, Chair (Appointed 10 February 2014)
David is an experienced executive and chair who has been actively involved in business for more than 35 years,
successfully starting, owning and operating a vast range of businesses. David joined the Board as a non-executive
Director in February 2014 and was appointed Chair in September 2016.
David also Chairs Cooper Investors, a specialist equity investor group with in excess of $12bn in funds under
management, and Sports Club HQ a technology company that specialises in managing the Registration and Competition
Management data requirements for Sporting clubs and associations.
David is also a non-executive director of Southern Cross Partners and is an Advisory Board Member to NexPay. David
has also served as both a director, non-executive director, Chair and advisor to both public and private companies in the
technology, communications, finance, wealth management, insurance, risk management and sporting sectors.
Member of the Audit and Risk Management Committee, Chair of the Audit and Risk Management Committee (from 1
August 2020 through 31 December 2021), Chair of the Remuneration and Nomination Committee (to 1 February 2023),
Member of the Remuneration and Nomination Committee (from 1 February 2023).
Jason Cooper, Managing Director and CEO (Appointed 1 March 2022)
Mr. Cooper joined Envirosuite in July 2020 as chief operating officer, was appointed as Chief Executive Officer in March
2021 and appointed Managing Director March 2022. Since joining Envirosuite, Mr Cooper has been instrumental in driving
the strategy for the Group during the backdrop of the COVID-19 pandemic. In this time, he finalised the integration of the
major acquisition, commercialised EVS Water nationally and internationally while driving growth across all product lines
and regions.
Jason is a highly regarded and well-respected industry leader with more than 20 years’ experience in the technology
sector. He has had broad experience working in senior executive roles in both multi-national and start-up environments.
During his career he has held senior roles across sales, operations and general management in Silicon Valley, London,
and Melbourne. Jason holds an executive MBA in Entrepreneurship and Innovation from HEC, France.
Hugh Roberston, Director (Appointed 1 November 2018)
Hugh Robertson has over 35 years experience in the financial services sector and equity markets. Hugh is an experienced
company director across a broad range of businesses with a concentration on small cap industrial stocks.
Hugh’s more recent directorships include AMA Group Limited (ASX:AMA), Centrepoint Alliance Limited (ASX:CAF),
TasFoods Limited (ASX:TFL), Hub24 Limited (ASX:HUB) and he is currently a Non-Executive Director of Longtable Limited
(ASX:LON) and Chair of Credit Clear Limited (ASX: CCR).
Sue Klose, Director (Appointed 1 December 2020)
Sue Klose is an experienced non-executive director and executive, with a diverse background in digital business growth
and operations, corporate development, strategy and marketing. Sue was previously the Head of Digital and Chief
Marketing Officer (CMO) of GraysOnline and Director of Digital Corporate Development for News Ltd.
38
Envirosuite Annual Report 2023 Directors’ report
She is currently a non-executive director of Nearmap (ASX: NEA), Halo Food Co. (ASX: HLF) and Acusensus (ASX: ACE).
Sue Resigned from Pureprofile (ASX:PPL) on 30 June 2023.
Sue has an MBA in Finance, Strategy and Marketing from the JL Kellogg School of Management at Northwestern
University, and a Bachelor of Science in Economics from the Wharton School of the University of Pennsylvania.
Member of the Audit and Risk Management Committee (from 1 December 2020), Chair of the of the Audit and Risk
Management Committee (from 1 January 2022), Member of the Remuneration and Nomination Committee (from 1
December 2022).
Stuart Bland, Director (Appointed 1 March 2022)
Stuart has over 30 years broad commercial executive experience, primarily in global SaaS businesses undergoing
high rates of growth. His industry experience includes technology (fintech, knowledge management), defence, sport,
telecommunications, biotechnology and wine.
Stuart’s executive experience includes 14 years as Chief Financial Officer at Iress Ltd (ASX:IRE) and Chief Financial Offer
roles at Melbourne IT Ltd and Panviva Pty Ltd.
Stuart is currently a member of the Advisory Board to Cablex Pty Ltd, as well as consulting to a number of other
organisations.
Stuart has a Masters of Applied Finance from Macquarie University, and a Bachelor of Economics from Monash University.
He is a fellow of the Institute of Chartered Accountants in Australia and New Zealand, and a graduate of the AICD.
Member of the Remuneration and Nomination Committee (from 1 July 2022 to 31 January 2023), Chair of the
Remuneration and Nomination Committee (from 1 February 2023), Member of the Audit and Risk Management Committee
(from 1 February 2023).
Tim Ebbeck, Director (Appointed 1 March 2022 – Resigned 30 September 2022)
Tim has over 35 years of board, executive, and advisory experience across a range of industries including technology,
public sector, media, sport, professional services, energy and finance.
Tim’s executive experience includes roles as Chief Executive Officer at SAP (ANZ), Chief Executive of Oracle (ANZ), Chief
Commercial Officer of SAP (APJ), Chief Commercial Officer of NBN Co, as well as Chief Financial Officer of Unisys South
Pacific and TMP Worldwide Asia Pacific.
Directors equity participation and other relevant interests
As of the date of this report, Directors have relevant interests in ordinary shares, as well as options and performance
rights to subscribe for ordinary shares in Envirosuite Limited, as outlined in the following table. Each option entitles the
holder to subscribe for one ordinary share of Envirosuite Limited subject to the holder paying the exercise price. Each
performance right entitles the holder to receive one ordinary share upon certain vesting conditions being met.
Non-Executive Directors
Ordinary Shares
Performance Rights
Options
David Johnstone
Hugh Robertson
Sue Klose
Stuart Bland
Tim Ebbeck1
Executive Director
Jason Cooper
7,168,245
22,720,147
500,000
650,194
-
-
-
-
-
-
1,150,000
8,000,000
-
-
-
2,000,000
-
-
1 - Resigned as Non-Executive Director 30 Sept 2022
39
Envirosuite Annual Report 2023
Company Secretary
Adam Gallagher holds Graduate Diplomas in Applied Corporate Governance and Information Systems, a Masters in
Commerce and a Bachelor of Economics and was appointed Company Secretary 8 Feb 2022.
Adam was previously Company Secretary and Director of Envirosuite from 2012 to 2020, during which time he was
instrumental in each of the Company’s transformational growth phases. He has also held officeholder roles in other ASX
listed technology companies including ASX: CT1, YPB, and currently in ASX: CCR, CCA and PHL.
Meetings of directors
The number of meetings of the Company’s Board of Directors (‘the Board’) and of each Board committee held during the year ended 30
June 2023, and the number of meetings attended by each director were:
2023 Meetings
David Johnstone
Jason Cooper
Hugh Robertson
Sue Klose
Stuart Bland
Tim Ebbeck3
Full Meetings
of Directors
Audit and Risk
Management Committee1
Remuneration and
Nomination Committee1,2
A
11
11
11
11
11
3
B
11
11
7
10
11
3
A
5
-
-
5
2
-
B
5
-
-
5
2
-
A
3
-
-
1
3
-
B
3
-
-
1
3
-
A - Number of meetings attended. B - Number of meetings held during the time the director held office or was a member of the committee during the year (number eligible to attend).
1 - The committee charters provide for a minimum of 2 meetings to be held each year per committee. In addition to formal meetings the members meet informally on a regular basis and discuss matters
within the charter. Each committee Chair provides a report to the board at each monthly board meeting.
2 - During the 2023 financial year, Stuart Bland joined as member of the Remuneration and Nomination Committee and became Chair of the Remuneration and Nomination Committee on 1 February
2023 from David Johnstone, who retired and continued as a member. Sue Klose joined the Remuneration and Nomination Committee as a member on 1 December 2022.
3 - Resigned as director effective 30 September 2022
40
Envirosuite Annual Report 2023
Directors’ report
Shares under option
Unissued ordinary shares of Envirosuite Limited under option at the date of this report are as follows:
Grant date
29-Apr-21
01-Dec-22
Total
Expiry date
29-Apr-25
01-Dec-25
Exercise price ($)
Number under option
0.20
0.40
10,000,000
2,000,000
12,000,000
In December 2022, the Company issued 2,000,000 options to Mr Stuart Bland in connection with his appointment to the
Board of Directors. In April 2021, the Company issued 10,000,000 options to Mr Alberto Calderon in connection with his
appointment as advisor to the CEO of Envirosuite.
No option holder has any right under the options to participate in any other share issue of the Company or any other
related entity.
During the financial year, options for 98,750,000 of shares lapsed without being exercised. No options have lapsed post
balance date.
Indemnification and insurance of officers or auditor
During the year, the Group paid insurance premiums for a Directors and Officers Liability Insurance Policy. This policy
covers Directors and Officers of the Group. In accordance with normal commercial practices under the terms of the
insurance contracts, the disclosure of the nature of the liabilities insured against and the amount of the premiums are
prohibited by the policy.
No indemnities have been given or insurance premiums paid, during or since the end of the financial year for the auditor
of the Group.
Proceedings on behalf of the Company
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237
of the Corporations Act 2001.
Non audit services
No fees were paid or payable to PKF Brisbane Audit, being the auditor the Group, for non-audit and other assurance work
during the year ending 30 June 2023 (2022: Nil). Amounts paid or payable to PKF and its related practices for non-audit
and other assurance work totalled $10,952 (2022: $25,316).
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the
auditor are outlined in note 5 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor’s behalf), is compatible with the general standard of independence for auditors imposed
by the Corporations Act 2001. The directors are of the opinion that the services as disclosed in note 5 to the financial
statements do not compromise the external auditor’s independence requirements of the Corporations Act 2001 for the
following reasons:
41
Envirosuite Annual Report 2023
•
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the
auditor; and
•
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) issues by the Accounting Professional and Ethical Standards
Board, including reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for the
company, acting as advocate for the company or jointly sharing economic risks and rewards.
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 on
page 53.
Rounding of amounts
The Company is an entity to which Legislative Instrument 2016/191 applies and accordingly amounts in the financial statements and
directors’ report have been rounded to the nearest thousand dollars, unless otherwise stated
42
Envirosuite Annual Report 2023 Remuneration Report
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations
Act 2001.
The report is structured as follows:
A.
B.
C.
D.
E.
F.
G.
A.
Key management personnel covered in this report
Principles used to determine the nature and amount of remuneration and link to performance
Share based compensation
Details of remuneration
Shareholdings of key management personnel
Loans to key management personnel
Other transactions with key management personnel
Key management personnel covered in this report
The remuneration disclosures in this report cover the following persons who were classified as Key Management
Personnel (KMP) of the Group during the 2023 financial year. KMP (as defined in AASB 124 Related Party
Disclosures) are those persons who, directly or indirectly, have authority and responsibility for planning, directing
and controlling major activities of the Group.
KMP
Position
Non-executive directors
David Johnstone
Independent Chair
Hugh Robertson
Non-Executive Director
Sue Klose
Stuart Bland
Tim Ebbeck
Executive director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Term
Full Year
Full Year
Full Year
Full Year
Resigned 30 Sep 2022
Jason Cooper
Chief Executive Officer and Managing Director
Full Year
Executives
Justin Owen
Aaron Lapsley
Chief Financial Officer
Chief Operating Officer
Full Year
Resigned 13 Jan 2023
B.
(i)
Principles used to determine the nature and amount of remuneration and link to performance
Executive pay
The objective of the Group’s executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework seeks to align executive reward with achievement of strategic
objectives and the creation of value for shareholders and conform to market practice for delivery of reward.
The Board seeks to ensure that executive reward satisfies the following key criteria for good reward governance
practices:
•
•
•
•
•
competitiveness
shareholder alignment
performance
transparency and simplicity
capital management
43
Envirosuite Annual Report 2023
The Group has structured an executive remuneration framework that it believes is market competitive and complementary
to the objectives of the organisation.
The executive pay and reward framework generally has three components:
Fixed remuneration
Base pay
•
Executives are offered a competitive base pay that comprises the fixed component of
pay and rewards.
•
•
There are no guaranteed base pay increases included in any executives’ contracts.
Retirement benefits are delivered under the Australian superannuation legislation at
10.5% of base salary for the financial year ended 30 June 2023, up to the maximum
superannuation contribution base.
•
Base pay is structured as a total remuneration package which may be delivered
as a combination of cash and prescribed non-financial benefits at the executives’
discretion.
Performance based remuneration
Short-term incentives
•
STI is provided to executive KMPs equivalent to between 30% and 50% of their
(STI)
base pay, where payment is dependent upon satisfaction of certain performance
conditions.
•
STI arrangements are paid out in cash.
Long-term incentives
•
Executive KMP are awarded LTIs to focus the efforts of the executive KMP on
(LTI)
the achievement of sustainable long-term value creation for the Group and the
shareholders.
•
Awards of LTIs may be made upon entering into an employment contract with the
Group, and as part annual reviews of remuneration arrangements.
•
Executive KMP LTI awards are governed by the provisions of the Company’s
Performance Rights Plan. Vesting conditions are specified at the time of the award,
and details of the awards made to executive KMP are discussed further below.
Remuneration and other terms of employment for executive KMP are formalised in service or employee agreements. All
executive KMP agreements are reviewed annually by the Remuneration and Nominations Committee. A summary of the
terms in executive KMP agreements is discussed further below.
Overview of FY23 executive KMP remuneration framework
Fixed remuneration1
STI entitlement
LTI entitlement
Jason Cooper
Justin Owen
Aaron Lapsley2
AUD364,500
AUD331,500
USD215,000
50%
30%
30%
Periodic performance right awards
Periodic performance right awards
Periodic performance right awards
1 - Fixed remuneration is inclusive of superannuation contributions where required by law to be made by Envirosuite
2 - Resigned 13 Jane 2023
44
Envirosuite Annual Report 2023 Remuneration report
FY23 STI Outcomes for executive KMP
At the beginning of FY23 each executive KMP was given a target STI opportunity subject to the achievement of financial
and personal targets. For FY23, the maximum STI each executive KMP could earn was kept at the target amount. The
target performance measures are set at levels in line with the Company’s medium term plans, and personal goals align
with key operational strategic objectives.
For FY23 the STI performance conditions were based on a combination of new ARR contracts awarded (1/3), Adjusted
EBITDA (1/3) and personal targets (1/3).
The following tables detail the FY23 STI performance outcomes for Envirosuite’s executive KMPs:
Name and role
Target STI FY23 ($)2
Actual STI FY23 ($)2
Actual STI as a % of target
Jason Cooper
Chief Executive Officer and
Managing Director
183,150
162,250
Justin Owen
99,900
89,000
Aaron Lapsley1
Total
43,300
326,350
-
251,250
1 - Resigned 13 Jan 2023
2 - Inclusive of superannuation contributions
FY23 LTI awards issued to Executive KMP
88.6%
89.1%
-
-
At the 2022 Annual General Meeting held on 22 November 2022, the Company obtained shareholder approval to amend
the terms of the Rights held by Mr Jason Cooper, Chief Executive Officer and Managing Director of the Company.
This amendment was in light of evolving market conditions since the Rights were first issued and a re-evaluation of the
attainability of Mr Cooper’s performance targets as well as giving consideration to their current retention and incentive
value.
Prior to the amendment, the unvested Rights held by Mr Cooper had the following performance conditions:
•
1,000,000 fully paid ordinary shares of which 500,000 are due to vest on 28 February 2023 and 500,000 vest on 28
February 2024;
•
750,000 fully paid ordinary shares that vest in the event that the Company’s share price as listed on the Australian
Stock Exchange (ASX) reaches $0.25 per share and remains at or above $0.25 per share for a continuous period of
30 days thereafter;
•
750,000 fully paid ordinary shares that vest in the event that the Company’s share price as listed on the ASX reaches
$0.40 per share and remains at or above $0.40 per share for a continuous period of 30 days thereafter;
•
1,500,000 fully paid ordinary shares that vest in the event that the Company’s share price as listed on the ASX
reaches $0.50 per share and remains at or above $0.50 per share for a continuous period of 30 days thereafter;
•
2,000,000 fully paid ordinary shares that vest in the event that the Company’s share price as listed on the ASX
reaches $0.75 per share and remains at or above $0.75 per share for a continuous period of 30 days thereafter;
•
2,000,000 fully paid ordinary shares that vest in the event that the Company’s share price as listed on the ASX
reaches $1.00 per share and remains at or above $1.00 per share for a continuous period of 30 days thereafter;
45
Envirosuite Annual Report 2023 Post shareholder approval obtained at the 2022 Annual General Meeting, the terms of Mr Cooper’s Rights were amended,
replacing the share price based vesting conditions with time based vesting as follows:
•
•
•
•
2,000,000 fully paid ordinary shares that vest on 30 September 2023;
2,000,000 fully paid ordinary shares that vest on 30 September 2024;
2,000,000 fully paid ordinary shares that vest on 30 September 2025;
2,000,000 fully paid ordinary shares that vest on 30 September 2026;
No other performance rights were issued to executive KMP in FY23.
Executive KMP service agreement summary
Each executive KMP has entered an employment contract with the Group. Details of the relevant contracts are set out in
the table below:
Executive KMP
Jason Cooper1
Justin Owen
Aaron Lapsley
Duration of service
agreement
Notice period by
executive
Notice period
by Company
Ongoing
Ongoing
Resigned 13 Jan 2023
3 months
2 months
At will
3 months
2 months
At will
1 - A termination payment of six months base remuneration inclusive of superannuation applies in the event of a change in control and, if within six months, Mr
Cooper is either dismissed or there has been a significant reduction in his remuneration or duties
(ii)
Non-executive directors
On appointment to the Board, all directors enter into a service agreement with the Company in the form of a letter of
appointment. The letter summarises the Board policies and terms, including compensation, relevant at the time of their
appointment to the office of director.
Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of, the
directors. Fees and payments to non-executive directors can be made directly in the form of salaries and wages, noting no
annual or long service leave entitlement accrue or via companies controlled by the director. Non-executive directors’ fees
and payments are reviewed annually by the Remuneration and Nominations Committee.
Non-executive director’s fees are determined within an aggregate directors’ fee pool limit. The current pool limit is
$600,000 per annum which was approved at the Company’s Annual General Meeting (AGM) held 25 November 2021. The
previous limit was $400,000 per annum. At this AGM, Shareholders also approved for non-executive director fees to be
paid via equity, in addition to the methods already approved in the Company’s constitution.
The following fees apply:
Fees per annum
Chair
Other Directors
Committee Chair
Committee Member
FY23
$120,000
$80,000
$10,000
$5,000
FY22
$120,000
$80,000
$10,000
$5,000
No fees as described above are paid to directors who hold an employee contract with the Company.
46
Envirosuite Annual Report 2023 Remuneration report
C.
(i)
Share based compensation
Options and performance rights
The Group issues options and performance rights to employees to provide long-term incentives for employees to deliver
value to shareholders by aligning interests and conserving cash. The Group also issues options to directors to align their
personal interests with that of the shareholders.
Each option provides the right to acquire one ordinary share in the Company for a stated exercise price, subject to the
relevant vesting conditions being met. Each performance right provides the right to receive one ordinary share in the
Company subject to the relevant vesting criteria being met. Performance rights are awarded with no exercise price being
payable when vesting conditions are satisfied. Options and performance rights carry no voting rights or entitlements to
receive dividends.
Upon exercising vested options and performance rights they convert to ordinary shares in the Company and carry the
standard dividend and voting rights available to ordinary shareholders.
Details of options and performance rights over ordinary shares in the Company provided as remuneration to each director
of Envirosuite Limited and each of the executive KMP of the parent entity and the Group are set out below. Further
information on the options and performance rights issued to executive KMP and other employees of the Group is set out in
Note 16 to the financial statements.
47
Envirosuite Annual Report 2023 Options
Finan-
cial
year
Balance at
start of year
Granted
Exercised
Forfeited /
Other
Balance at
end of year
Vested and
exercisable
Unvested
Non-executive directors
D. Johnstone
H. Robertson
S. Klose
S. Bland
T. Ebbeck
(resigned 30 Sept 2022)
P. White
(resigned 25 Nov 2021)
2023
-
2022
5,000,000
2023
-
2022
5,000,000
2023
2,000,000
2022
2,000,000
2023
2022
2023
2022
2023
-
-
-
-
-
2022
5,000,000
-
-
-
-
-
-
2,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,000,000)
-
(5,000,000)
(2,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,000,000)
2,000,000
2,000,000
2,000,000
2,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Performance rights
Finan-
cial
year
Balance at
start of year
Granted
Vested
Forfeited /
Other
Balance at
end of year
Vested and
exercisable
Unvested
Executive director
J. Cooper1
2023
8,000,000
-
-
-
8,000,000
2022
4,000,000
8,500,000
(1,000,000)
(3,500,000)1
8,000,000
-
-
8,000,000
8,000,000
Performance rights
Finan-
cial
year
Balance at
start of year
Granted
Vested
Forfeited /
Other
Balance at
end of year
Vested and
exercisable
Unvested
Executives
J. Owen
A. Lapsley
(resigned 13 Jan 2023)
M. Patterson
(resigned 12 Nov 2021)
2023
2,000,000
-
(500,000)
2022
-
2,000,000
-
-
-
1,500,000
2,000,000
2023
2,000,000
-
(500,000)
(1,500,000)
-
2022
2023
-
-
2022
2,000,000
2,000,000
-
-
-
-
-
-
(666,667)
(1,333,333)
2,000,000
-
-
-
-
-
-
-
-
1,500,000
2,000,000
-
2,000,000
-
-
1 - Mr Cooper was appointed Managing Director 1 Mar 2022, in addition to his position of Chief Executive Officer
48
Envirosuite Annual Report 2023
Remuneration report
The table below provides the fair value of performance rights issued to each executive KMP during the period 1 July 2021
to 30 June 2023:
Performance rights
Date of grant
Date of expiry
Date of vesting
Number
granted
Fair value per right at grant
Fair value of
performance
rights at grant $
Jason Cooper
(pre-rights amendment
– 1 July 2021 to 21
1
November 2022)
Jason Cooper
(post-rights amendment
– 22 November 2022 to
reporting date)
1
Justin Owen
Aaron Lapsley
(resigned 13 Jan 2023)
1-Jul-21
1-Feb-22
28-Feb-22
500,000
1-Jul-21
1-Feb-23
28-Feb-23
500,000
1-Jul-21
1-Feb-24
28-Feb-24
500,000
1-Jul-21
1-Jul-21
1-Jul-21
1-Jul-21
1-Jul-21
(2)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
750,000
750,000
1,500,000
2,000,000
2,000,000
1-Jul-21
30-Sep-23
30-Sep-23
500,000
1-Jul-21
30-Sep-23
30-Sep-23
750,000
1-Jul-21
30-Sep-23
30-Sep-23
750,000
1-Jul-21
30-Sep-24
30-Sep-24
500,000
1-Jul-21
30-Sep-24
30-Sep-24
1,500,000
1-Jul-21
30-Sep-25
30-Sep-25
2,000,000
1-Jul-21
30-Sep-26
30-Sep-26
2,000,000
24-Jan-22
24-Jan-23
24-Jan-23
500,000
24-Jan-22
24-Jan-24
24-Jan-24
500,000
24-Jan-22
24-Jan-22
(2)
(2)
(2)
(2)
500,000
500,000
10-Jan-22
10-Jan-23
10-Jan-23
500,000
10-Jan-22
10-Jan-24
10-Jan-24
500,000
10-Jan-22
10-Jan-22
(2)
(2)
(2)
(2)
500,000
500,000
$0.093
$0.093
$0.093
$0.07726
$0.06867
$0.06557
$0.05857
$0.05137
$0.093
$0.1025
$0.0812
$0.093
$0.0707
$0.0523
$0.0402
$0.200
$0.200
$0.18056
$0.16847
$0.215
$0.215
$0.19534
$0.18414
46,500
46,500
46,500
57,946
51,499
98,351
117,141
102,749
46,500
76,875
60,900
46,500
106,050
104,600
80,400
100,000
100,000
90,282
84,233
107,500
107,500
97,671
92,072
1 - Mr Cooper’s performance rights targets were amended at the 2022 Annual General Meeting
2 - Market and non-market performance requirements. Market performance conditions are linked to the Company’s share price. The non-market performance
condition is ongoing employment with the Group at vesting date
(ii)
Shares
No shares were granted to KMP during the year, other than shares issued on the exercise of vested performance rights.
49
Envirosuite Annual Report 2023
D.
Details of remuneration
The table below sets out executive KMP and director remuneration for the financial year ending 30 June 2023 and the
prior year comparative period in accordance with the requirements of the Accounting Standards and the Corporations Act
(Cth). The table reflects the accounting value of remuneration attributable to KMP, derived from the various components
of compensation. Refer to the accounting policies in the financial statements for details on how remuneration has been
measured, including the determination of fair value of options and performance rights granted (refer Note 1(g)).
Remuneration
Financial
year
Salary and fees
$
STI
$
Term benefits
$
Superannuation
$
Ordinary
shares
$
Performance
rights
$
Options
$
Total
$
Short term
Long term
Share based payments
Non-executive directors
D. Johnstone
H. Robertson1
S. Klose
S. Bland
T. Ebbeck2
P. White3
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
132,917
137,500
-
33,333
84,470
77,273
89,167
26,667
20,000
26,667
-
154,996
Executive directors
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,447
7,727
-
-
-
-
-
-
2023
2022
2023
2022
2023
2022
2023
2022
J. Cooper
Executives
J.Owen
A. Lapsley4
M. Patterson5
Total
330,000
162,250
15,349
25,292
330,000
120,098
14,555
23,568
300,000
89,000
131,923
28,177
165,477
-
3,665
10,988
4,149
149,232
31,286
(2,788)
-
172,972
-
-
-
27,042
23,163
25,292
11,584
6,895
5,218
-
9,319
-
-
80,000
46,667
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
164,053
523,565
108,333
237,015
-
256,931
-
11,500
-
-
-
-
-
-
132,917
137,500
80,000
80,000
92,917
85,000
46,000
135,167
-
-
-
-
-
-
-
-
-
-
-
-
-
26,667
20,000
26,667
-
154,996
696,944
1,011,786
526,290
419,687
176,521
439,879
-
220,833
2023
1,122,032
251,250
65,926
80,000
272,386
46,000
1,860,757
2022
1,240,563
179,561
49,797
57,416
46,667
1,029,011
-
2,603,015
1 - H. Robertson has elected to receive his director fees in ordinary shares
2 - Resigned as Non-Executive Director 30 Sept 2022
3 - Retired from Managing Director role and appointed Non-executive Director 28 Feb 2021. Resigned Non-executive Director role 25 Nov 2021
4 - Resigned as Executive 13 Jan 2023
5 - Resigned as Chief Financial Officer 12 Nov 2021
50
Envirosuite Annual Report 2023 Remuneration report
E.
Shareholdings of key management personnel
The numbers of shares in the Company held during the financial year by each director of Envirosuite Limited and other
executive KMP of the Group, including their personally related parties, are set out below. Where an individual is no longer
deemed KMP of the Group during the year, their shareholdings are removed through the ‘other changes during the year’
column.
Ordinary
shares
Financial
year
Balance at
start of year
Granted as
compensation
Exercise of options / per-
formance rights granted as
compensation
Other changes
during the year
Balance at
end of year
Non-executive directors
D. Johnstone
H. Robertson
S. Klose
S. Bland
T. Ebbeck
P. White
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Executive directors
J. Cooper
Executives
J. Owen
A. Lapsley
M. Patterson
Total
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
7,033,106
7,033,106
-
-
22,252,311
467,836
20,421,209
500,000
500,000
510,194
-
62,500
-
-
9,237,681
1,000,000
-
28,309
-
-
-
-
847,253
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
500,000
-
500,000
-
-
-
31,386,420
467,836
38,039,249
-
1,000,000
1,000,000
135,139
-
-
1,831,102
-
-
140,000
510,194
(62,500)2
62,500
-
(9,237,681)1
150,000
-
-
28,309
(500,000)2
-
-
(847,253)2
(137,361)
(7,652,829)
7,168,245
7,033,106
22,720,147
22,252,311
500,0003
500,000
650,194
510,194
-
62,500
-
-
1,150,000
1,000,000
528,309
28,309
-
-
-
-
32,716,895
31,386,420
1 - Mr White retired as CEO and Managing Director on 28 Feb 2021 at which point he was no longer an Executive Director and became a Non-executive Director.
Details of options and performance rights has been split between the period of Mr White in his role of Executive Director and the period of his role as Non-executive
Director. Mr White departed Envirosuite during the previous financial year, shares not included as part of the balance at end of year
2 - Departed Envirosuite during the year, shares not included as part of balance at end of year
3 - S Klose acquired 500,000 shares on 29 June 2023 which settled in July 2023. The shares acquired have not been included in the above table.
F. Loans to key management personnel
There were no loans to KMP during the reporting period.
51
Envirosuite Annual Report 2023
G.
Other transactions with key management personnel
There are no other transactions with KMP of Envirosuite Limited and their related parties.
This concludes the remuneration report, which has been audited.
This report is made in accordance with the resolution of directors, pursuant to section 298(2)(a) of the Corporations Act.
On behalf of the directors
David Johnstone
Chair
22 August 2023
52
Envirosuite Annual Report 2023 U ’ C C
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF ENVIROSUITE LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2023, there have
been no contraventions of:
(a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
PKF BRISBANE AUDIT
TIM FOLLETT
PARTNER
BRISBANE
22 AUGUST 2023
CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Trading revenue
Other revenue
Total operating revenue
Cost of revenue
Gross profit
Operating expenses
Sales and marketing
Product development
General and administrative
Total Operating expenses
Other income / (expense)
Operating deficit
Net finance expense
Net loss before tax
Income tax benefit / (expense)
Net loss after tax
Other comprehensive income / (loss)
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Other comprehensive income / (loss) for the year, net of tax
Total comprehensive loss for the year
Net loss attributed to:
Equity holders of Envirosuite Limited
Total comprehensive loss attributable to:
Equity holders of Envirosuite Limited
Basic loss per share
Diluted loss per share
The accompanying notes form part of these financial statements.
Notes
4
5
Consolidated Group
2023
$’000
57,610
289
2022
$’000
53,440
19
57,899
53,459
(28,728)
(28,355)
29,171
25,104
(12,323)
(12,059)
(15,980)
5
(40,362)
143
(13,369)
(8,557)
(15,843)
(37,769)
90
(11,048)
(12,575)
(190)
(210)
(11,238)
(12,785)
6
960
(410)
(10,278)
(13,195)
498
498
18
18
(9,780)
(13,177)
(10,278)
(13,195)
(9,780)
(13,177)
22
22
Cents
(0.81)
(0.81)
Cents
(1.12)
(1.12)
54
Envirosuite Annual Report 2023 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2023
Consolidated Group
Notes
2023
$’000
2022
$’000
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Inventories
Total Current assets
Non-current Assets
Property, plant and equipment
Right of use assets
Deferred tax assets
Intangible assets
Other assets
Total Non-current assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Contract liabilities
Other liabilities
Employee benefit provisions
Lease liabilities
Total current liabilities
Non-current Liabilities
Employee benefit provisions
Lease liabilities
Deferred tax liabilities
Total Non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained losses
TOTAL EQUITY
The accompanying notes form part of these financial statements.
55
7
8
10
9
11
12
6
13
10
14
14
14
15
12
15
12
6
16
17
17
8,277
10,962
3,587
3,936
16,292
12,448
3,884
2,355
26,762
34,979
5,245
2,110
1,301
3,508
1,711
972
107,246
108,652
2,025
916
117,927
115,759
144,689
150,738
8,743
5,165
1,526
5,545
1,158
8,467
4,092
1,526
4,527
1,045
22,137
19,657
227
2,427
3,382
6,036
160
1,206
3,994
5,360
28,173
25,017
116,516
125,721
181,352
1,666
180,597
10,798
(66,502)
(65,674)
116,516
125,721
Envirosuite Annual Report 2023 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Shares options and performance rights expired or lapsed
-
(1,669)
Total transactions with owners and other transfers
11,077
(1,148)
At 30 June 2022
180,597
10,798
(65,674)
125,721
At 1 July 2021
Comprehensive income / (loss)
Loss for the year
Other comprehensive income for the year
Total Comprehensive income / ( loss) for the year
Transactions with owners, in their capacity as owners, and
other transfers
Issue of shares
Transaction costs of capital raising (inc. tax effect)
Options and performance rights issued - value of services
Shares issued / to be issued to employees
At 1 July 2022
Comprehensive income / (loss)
Loss for the year
Other comprehensive income for the year
Total Comprehensive income / (loss) for the year
Transactions with owners, in their capacity as owners, and
other transfers
Shares issued / to be issued to directors
Shares issued / to be issued to employees
Transaction costs of capital raising (tax effect)
Options and performance rights issued - value of services
Shares options and performance rights expired or lapsed
Ordinary shares
$’000
Reserves
$’000
Retained losses
$’000
Total Equity
$’000
169,520
11,928
(54,148)
127,300
-
-
-
10,469
(548)
200
956
-
18
18
-
-
1,477
(956)
(13,195)
(13,195)
-
18
(13,195)
(13,177)
-
-
-
-
1,669
1,669
10,469
(548)
1,677
-
-
11,598
180,597
10,798
(65,674)
125,721
-
-
-
80
923
(248)
-
-
-
498
498
(10,278)
(10,278)
-
498
(10,278)
(9,780)
-
(923)
-
743
(9,450)
-
-
-
-
9,450
9,450
80
-
(248)
743
-
575
Total transactions with owners and other transfers
755
(9,630)
At 30 June 2023
181,352
1,666
(66,502)
116,516
The accompanying notes form part of these financial statements.
56
Envirosuite Annual Report 2023 CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
Consolidated Group
Notes
June 2023
$’000
June 2022
$’000
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Other revenue / (expenses)
Taxes paid
Interest received
Interest paid
Net cash from / (used in) operating activities
20
Cash flows from investing activities
Payments for property, plant and equipment
Payments for intangible assets
Net cash used in investing activities
Cash flows from financing activities
Net proceeds from borrowings
Proceeds from issue of shares
Share issue transaction costs
Repayment of lease liabilities
Net cash (used in) / from financing activities
59,836
51,619
(59,282)
(54,099)
554
289
(149)
79
(27)
746
(2,480)
(253)
(472)
23
(6)
(3,188)
(2,292)
(1,762)
(5,760)
(4,750)
(8,052)
(6,512)
98
-
-
(1,292)
(1,194)
69
10,669
(524)
(1,878)
8,336
Net decrease in cash and cash equivalents
(8,500)
(1,364)
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the year
485
16,292
8,277
16
17,640
16,292
The accompanying notes form part of these financial statements.
57
Envirosuite Annual Report 2023 Notes to Financial
Statements
59 (1.) Summary of significant accounting policies
77
(13.) Intangible assets
68 (2.) Financial risk management
79
(14.) Trade and other payables
69 (3.) Segment information
79
(15.) Employee benefit provisions
70 (4.) Revenue
71
(5.) Expenses
72
(6.) Tax
80 (16.) Issued capital
81
(17.) Reserves and retained losses
81
(18.) Commitments and contingencies
73
(7.) Cash and cash equivalents
82 (19.) Related party transactions
74
(8.) Trade and other receivables
83 (20.) Cash flow statement reconciliation
74
(9.) Inventories
74
(10.) Other assets
84 (21.) Share based payments
85 (22.) Earnings per share
75
(11.) Property, plant and equipment
85 (23.) Subsequent events
76
(12.) Right of use assets and lease liabilities
86 (24.) Parent entity financial information
58
Envirosuite Annual Report 2023 NOTES TO FINANCIAL STATEMENTS
For the Financial Year Ended 30 June 2023
Notes to Financial Statements
For the Financial Year Ended 30 June 2023
These consolidated financial statements and notes represent those of Envirosuite Limited (“the Company”) and controlled entities
(the “Consolidated Group” or “Group”).
The separate financial statements of the parent entity, Envirosuite Limited, have not been presented within this financial report as
permitted by the Corporations Act 2001.
The financial statements were authorised for issue on 22 August 2023 by the directors of the Company.
1.
(a)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The consolidated financial statements are general purpose financial statements that have been prepared in accordance with
Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board and the Corporations Act 2001.
The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has concluded would
result in financial statements containing relevant and reliable information about transactions, events and conditions. Material
accounting policies adopted in the preparation of these financial statements are presented below and have been consistently
applied unless stated otherwise.
Compliance with IFRSs as issued by the IASB
Compliance with Australian Accounting Standards ensures that this Financial Report complies with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Consequently, this Financial Report
is compliant with IFRS.
Basis of Measurement
Except for cash flow information, the financial statements have been prepared on an accruals basis and are based on historical
costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
Critical accounting estimates and judgements
The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and
best available current information. Estimates assume a reasonable expectation of future events and are based on current trends
and economic data, obtained both externally and within the Group. The following are:
• Measurement of expected credit losses (ECL) allowance for trade receivables – the measurement of the ECL allowance
for trade receivables relies on estimates of expected credit losses to be incurred for trade receivables taking into account
historical losses and the financial condition of the customer. Refer to Note 1(j) for further discussion.
•
Impairment of goodwill and other intangible assets – the Group tests goodwill and other intangible assets, including
capitalised software development costs, for impairment in accordance with the accounting policy stated in Note 1(n).
These calculations require the use of assumptions regarding the future profitability of the cash generating units to which
the goodwill and intangibles have been allocated, as well as future cash flows related to the intangible asset. Refer to Note
13 for details of the assumptions used in determining the recoverable amount of goodwill and other intangible assets.
• Valuation of performance rights – the Group has issued performance rights in connection with long-term incentive
arrangements with key management personnel. Where these performance rights have market-based performance
conditions, they are valued by external advisors using a Monte Carlo simulation methodology.
• Recovery of deferred tax assets – deferred tax assets are recognised for deductible temporary differences if management
considers that it is probable that future taxable profits will be available to utilise those temporary differences. Significant
judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing
and the level of future taxable profits together with future tax planning strategies. Refer to Note 6 for details for the unused
tax losses.
1.
(a)
•
•
•
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of preparation (continued)
Inventory provisions – judgement has been exercised in calculating the net realisable value of inventory to determine
whether a provision for inventory obsolescence should be recognised based on an assessment of technological and
market developments and on an analysis of historical and projected usage with regard to quantities on hand.
Estimation of useful lives of assets – the Group 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.
Lease term – the lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase
the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the
periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an
economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease
commencement date. Factors considered may include the importance of the asset to the Group’s operations; comparison
of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold
improvements; and the costs and disruption to replace the asset. The Group reassesses whether it is reasonably certain
to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in
circumstances.
(b)
Principles of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Envirosuite Limited) and
all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. A list of subsidiaries is contained in Note 19 to the financial statements.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the date
on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control ceases.
Intercompany transactions, balances and unrealised gains or losses on transactions between entities in the Consolidated Group
are eliminated in full on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where
necessary to ensure consistency with the policies adopted by the Group.
Investments in subsidiaries are accounted for at cost in the individual financial statements of Envirosuite Limited.
(c)
Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses. The acquisition method of
accounting is used to account for all business combinations, unless it is a combination involving entities or businesses under
common control. The business combination will be accounted for from the date that control is attained, at which point the fair
value of identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited
exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent
consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not
remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or
liability is remeasured in each reporting period to fair value, with changes in fair value recognised in profit or loss, unless the
change in fair value can be identified as existing at acquisition date.
All transaction costs incurred in relation to business combinations, other than those associated with the issue of a financial
instrument, are recognised as expenses in the profit and loss when incurred. The acquisition of a business may result in the
recognition of goodwill or a gain from a bargain purchase.
59
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
Envirosuite Annual Report 2023
1.
(a)
•
•
•
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of preparation (continued)
Inventory provisions – judgement has been exercised in calculating the net realisable value of inventory to determine
whether a provision for inventory obsolescence should be recognised based on an assessment of technological and
market developments and on an analysis of historical and projected usage with regard to quantities on hand.
Estimation of useful lives of assets – the Group 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.
Lease term – the lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase
the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the
periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an
economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease
commencement date. Factors considered may include the importance of the asset to the Group’s operations; comparison
of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold
improvements; and the costs and disruption to replace the asset. The Group reassesses whether it is reasonably certain
to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in
circumstances.
(b)
Principles of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Envirosuite Limited) and
all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. A list of subsidiaries is contained in Note 19 to the financial statements.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the date
on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control ceases.
Intercompany transactions, balances and unrealised gains or losses on transactions between entities in the Consolidated Group
are eliminated in full on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where
necessary to ensure consistency with the policies adopted by the Group.
Investments in subsidiaries are accounted for at cost in the individual financial statements of Envirosuite Limited.
(c)
Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses. The acquisition method of
accounting is used to account for all business combinations, unless it is a combination involving entities or businesses under
common control. The business combination will be accounted for from the date that control is attained, at which point the fair
value of identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited
exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent
consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not
remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or
liability is remeasured in each reporting period to fair value, with changes in fair value recognised in profit or loss, unless the
change in fair value can be identified as existing at acquisition date.
All transaction costs incurred in relation to business combinations, other than those associated with the issue of a financial
instrument, are recognised as expenses in the profit and loss when incurred. The acquisition of a business may result in the
recognition of goodwill or a gain from a bargain purchase.
The accompanying notes form part of these financial statements.
60
Envirosuite Annual Report 2023
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(c)
Business Combinations (continued)
Goodwill is carried at cost less any accumulated impairment losses. Goodwill is calculated as the excess of the sum of:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.
(f)
Revenue recognition
The following is a summary of the revenue recognition for each revenue stream:
•
•
•
the consideration transferred;
any non-controlling interests; and
the acquisition date fair value of any previously held equity interest; over the acquisition date fair value of net identifiable
assets acquired.
Adjustments may be made to fair value of net identifiable assets acquired and to goodwill after the acquisition date if additional
information is obtained about facts and circumstances related to the acquired business that existed at the acquisition date.
However, no further adjustments are made to the acquisition balance sheet and initial goodwill recognised beyond one year from
the acquisition date. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised. Instead,
goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be
impaired, and is carried at cost less accumulated impairment losses.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash generating units for the purpose of impairment testing. The allocation is made to those cash-
generating units or groups of cash-generating units that are expected to benefit from the business combination in which the
goodwill arose.
Changes in the ownership interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions
and do not affect the carrying amount of goodwill.
(d)
Foreign currency translation
Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment in
which that entity operates. The consolidated financial statements are presented in Australian dollars, which is the parent entity’s
functional currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at
historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair
value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except where deferred in equity
as a qualifying cash flow or net investment hedge.
Group companies
The financial results and position of foreign operations, whose functional currency is different from the Group’s presentation
currency, are translated as follows:
•
•
•
assets and liabilities are translated at exchange rates prevailing at the end of the reporting period;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations with functional currencies other than Australian dollars are
recognised in other comprehensive income and included in the foreign currency translation reserve in the statement of financial
position. The cumulative amount of these differences is reclassified into profit or loss in the period in which the operation is
disposed of.
(e)
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Chief Executive Officer and the board of directors. Refer Note 3 for segment information.
Geographical segmentation is the primary basis of segmentation used by the Group.
Operating segments that meet the quantitative criteria as prescribed by AASB 8 Operating Segments are reported separately.
However, an operating segment that does not meet the quantitative criteria is still reported separately where information about
the segment would be useful to users of the financial statements.
outflows.
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
61
Recurring revenue
Non-recurring revenue
monitoring units.
Includes software platform subscription revenues and maintenance and support services related to monitoring equipment
provided by the Group. These revenues are recognised over time being over the term of the contracts, based on the effort incurred
by the Group being as the services are provided.
Includes revenue from projects for the installation of environmental monitoring solutions and upgrades, and sales of environmental
Project revenue is recognised over time based on a percentage of completion method, as this is the performance obligation. The
stage of completion for determining the amount of revenue to recognise is assessed based on the cost-to-cost method whereby
the percentage of completion is estimated based on the costs incurred to date as a percentage of the total expected costs to
deliver the project. The estimate of the total costs to deliver the project is an estimate that requires judgement by management
and is based on quotes from third parties, the cost of the equipment held in inventory, and estimated cost of internal labour based
on number of labour hours required.
Sales of environmental monitoring units are recognised when risk has transferred to the buyer.
Government grants and rebates
Grants and rebates from the government are recognised at their fair value where there is a reasonable assurance that the grant
or rebate will be received and the Group will comply with all the attached conditions. Government grants and rebates relating to
costs are deferred and recognised as income over the period necessary to match them with the costs that they are intended to
compensate. Government grants and rebates relating to the purchase of property, plant and equipment and the development of
IT and software capital costs are included in current and non-current liabilities as deferred income and are credited to income on
a straight line basis over the expected lives of the related assets.
Contract assets and liabilities
Where the Group provides services to customers and the consideration is unconditional, a receivable is recognised as accrued
income and included within Trade and other receivables. Where the customer pays upfront for services that have not yet been
provided (revenue in advance), a contract liability is recognised, which is disclosed on the face of the balance sheet as Contract
Liabilities. Contract assets also include costs to fulfil contracts and sales commission.
Employee benefits includes wages and salaries, bonuses, annual leave and long service leave. Certain employees are awarded
share based payments in the form of options and/or performance rights, which entitle the employee to shares in Envirosuite
Limited upon certain vesting conditions being met.
A liability is recognised for employee benefits in the period that the service is performed where the Group has a present legal or
constructive obligation to pay the amount as a result of past service provided by the employee, and the obligation can be
(g)
Employee benefits
estimated reliably.
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months after
the end of the period in which the employees render the related service are recognised in respect of employees' services up to
the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability
for annual leave is recognised in the current employee benefit provisions. All other short-term employee benefit obligations are
presented as part of other current payables.
Long-term employee benefit obligations
The liability for long service leave and annual leave which is not expected to be settled within 12 months after the end of the
period in which the employees render the related service is recognised in the non-current employee benefit provisions and
measured as the present value of expected future payments to be made in respect of services provided by employees up to the
end of the reporting period. Consideration is given to expected future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on
Australian Corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash
Envirosuite Annual Report 2023
1.
(f)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue recognition
The following is a summary of the revenue recognition for each revenue stream:
Recurring revenue
Includes software platform subscription revenues and maintenance and support services related to monitoring equipment
provided by the Group. These revenues are recognised over time being over the term of the contracts, based on the effort incurred
by the Group being as the services are provided.
Non-recurring revenue
Includes revenue from projects for the installation of environmental monitoring solutions and upgrades, and sales of environmental
monitoring units.
Project revenue is recognised over time based on a percentage of completion method, as this is the performance obligation. The
stage of completion for determining the amount of revenue to recognise is assessed based on the cost-to-cost method whereby
the percentage of completion is estimated based on the costs incurred to date as a percentage of the total expected costs to
deliver the project. The estimate of the total costs to deliver the project is an estimate that requires judgement by management
and is based on quotes from third parties, the cost of the equipment held in inventory, and estimated cost of internal labour based
on number of labour hours required.
Sales of environmental monitoring units are recognised when risk has transferred to the buyer.
Government grants and rebates
Grants and rebates from the government are recognised at their fair value where there is a reasonable assurance that the grant
or rebate will be received and the Group will comply with all the attached conditions. Government grants and rebates relating to
costs are deferred and recognised as income over the period necessary to match them with the costs that they are intended to
compensate. Government grants and rebates relating to the purchase of property, plant and equipment and the development of
IT and software capital costs are included in current and non-current liabilities as deferred income and are credited to income on
a straight line basis over the expected lives of the related assets.
Contract assets and liabilities
Where the Group provides services to customers and the consideration is unconditional, a receivable is recognised as accrued
income and included within Trade and other receivables. Where the customer pays upfront for services that have not yet been
provided (revenue in advance), a contract liability is recognised, which is disclosed on the face of the balance sheet as Contract
Liabilities. Contract assets also include costs to fulfil contracts and sales commission.
(g)
Employee benefits
Employee benefits includes wages and salaries, bonuses, annual leave and long service leave. Certain employees are awarded
share based payments in the form of options and/or performance rights, which entitle the employee to shares in Envirosuite
Limited upon certain vesting conditions being met.
A liability is recognised for employee benefits in the period that the service is performed where the Group has a present legal or
constructive obligation to pay the amount as a result of past service provided by the employee, and the obligation can be
estimated reliably.
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months after
the end of the period in which the employees render the related service are recognised in respect of employees' services up to
the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability
for annual leave is recognised in the current employee benefit provisions. All other short-term employee benefit obligations are
presented as part of other current payables.
Long-term employee benefit obligations
The liability for long service leave and annual leave which is not expected to be settled within 12 months after the end of the
period in which the employees render the related service is recognised in the non-current employee benefit provisions and
measured as the present value of expected future payments to be made in respect of services provided by employees up to the
end of the reporting period. Consideration is given to expected future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on
Australian Corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash
outflows.
The accompanying notes form part of these financial statements.
62
Envirosuite Annual Report 2023
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Employee benefits (continued)
Share based payments
Share based compensation benefits are provided to employees and directors via the Envirosuite Limited Employee Share Option
Plan, the Envirosuite Performance Rights Plan and the Envirosuite Limited Employee Share Plan. Information relating to these
schemes is set out in Note 21.
The fair value of options granted under the Envirosuite Limited Employee Share Option Plan and performance rights granted under
the Envirosuite Performance Rights Plan is recognised as an employee benefit expense with a corresponding increase in equity.
The total amount to be expensed is determined by reference to the fair value of the options and performance rights granted,
which includes any market performance conditions but excludes the impact of any service and non-market performance vesting
conditions and the impact of any non-vesting conditions. Fair value of options at grant date are determined using a Black & Scholes
option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at
grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the
term of the option. Fair value of non-market-based performance rights granted is based on the share price at grant date and the
risk free interest rate for the term of the vesting period of the performance right. Fair value of market-based performance rights
granted is based on the Monte Carlo simulation methodology.
Non-market vesting conditions are included in assumptions about the number of options and performance rights that are expected
to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting
conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options and performance
rights that are expected to vest based on the non-marketing vesting conditions. It recognises the impact of the revision to original
estimates, if any, in profit or loss, with a corresponding adjustment to equity.
Termination benefits
The Group classifies petty cash, cash balances and term deposits with financial institutions that have a term of 90 days or less as
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee
accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably
committed to either terminating the employment of current employees according to a detailed formal plan without possibility of
withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due
more than 12 months after reporting date are discounted to present value.
(h)
Income tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a
business combination, or items recognised directly in other comprehensive income or otherwise directly in equity. Income tax on
items recognised directly in Other Comprehensive Income or otherwise directly in equity is also recognised in other
comprehensive income or directly in equity, respectively. Deferred tax is recognised for assets and liabilities initially recognised
as a result of a business combination, other than goodwill, where the accounting basis is different to the tax basis.
Current Tax
Current tax expense charged to the profit or loss is the tax payable on taxable income. Current tax liabilities/(assets) are measured
at the amounts expected to be paid to/(recovered from) the relevant taxation authority.
Deferred Tax
Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as
unused tax losses.
Deferred tax is provided in full, using the Asset-Liability Method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax is not recognised for:
•
•
•
temporary differences on the initial recognition of an asset or liability in a transaction that is not a business combination
and that neither affects accounting nor taxable profit nor loss;
temporary differences related to investments in subsidiaries, associates, and joint arrangements to the extent that the
Company is able to control the timing of reversal of the temporary differences and it is probable that they will not reverse
in the foreseeable future; and
taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and
are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
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.
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
63
(h)
Income tax (continued)
Deferred tax assets and liabilities are offset when a legally enforceable right of set-off exists and when the deferred tax balances
relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable
right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Envirosuite Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. As a
consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of these entities are set off in
the consolidated financial statements. In addition to its own current and deferred tax amounts, Envirosuite Limited also recognises
the current tax liabilities and the deferred tax amounts arising from unused tax losses and unused tax credits assumed from
controlled entities in the Tax Consolidated Group.
Goods and Service Tax
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which
are recoverable from, or payable to the taxation authority, are presented as operating cash flows included in receipts from
customers or payments to suppliers.
Envirosuite Limited and its wholly owned Australian controlled entities except Envirosuite Holdings Pty Ltd are grouped for GST.
(i)
Cash and cash equivalents
cash and cash equivalents.
(j)
Trade and other receivables
at the transaction price.
Impairment
The Group has a single business model for its financial assets whose objective is hold the assets to collect contractual cash flows
that are solely payments of principal and interest. Financial assets include trade receivables which are initially recognised when
they are originated. Trade receivables are typically due within 30 to 90 days of the invoice being issued and are initially measured
The Group recognises loss allowance for expected credit loss (ECLs) on trade receivables and contract assets. The Company
measures loss allowances using the simplified approach under AASB 9 Financial Instruments, which is an amount equal to lifetime
ECLs. Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.
When determining whether the credit risk of a trade receivable has increased significantly since initial recognition and when
estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost
or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and
informed credit assessment and including forward-looking information. In assessing credit risk, customers were disaggregated
based on various industry groups, location and customer size.
The Group assumes that the credit risk on a trade receivable has increased significantly if it is more than 90 days past due. The
Group considers a financial asset to be in default when:
there is significant financial difficulty of the customer;
•
•
•
Measurement of ECLs
a breach of contract such as a default or being more than 90 days past due; or
it is probable that the customer will enter bankruptcy or other financial reorganisation.
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls
(i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group
expects to receive). ECLs are discounted at the effective interest rate of the financial asset.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. The
gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial
asset in its entirety or a portion thereof.
Envirosuite Annual Report 2023
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h)
Income tax (continued)
Deferred tax assets and liabilities are offset when a legally enforceable right of set-off exists and when the deferred tax balances
relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable
right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Envirosuite Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. As a
consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of these entities are set off in
the consolidated financial statements. In addition to its own current and deferred tax amounts, Envirosuite Limited also recognises
the current tax liabilities and the deferred tax amounts arising from unused tax losses and unused tax credits assumed from
controlled entities in the Tax Consolidated Group.
Goods and Service Tax
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which
are recoverable from, or payable to the taxation authority, are presented as operating cash flows included in receipts from
customers or payments to suppliers.
Envirosuite Limited and its wholly owned Australian controlled entities except Envirosuite Holdings Pty Ltd are grouped for GST.
(i)
Cash and cash equivalents
The Group classifies petty cash, cash balances and term deposits with financial institutions that have a term of 90 days or less as
cash and cash equivalents.
(j)
Trade and other receivables
The Group has a single business model for its financial assets whose objective is hold the assets to collect contractual cash flows
that are solely payments of principal and interest. Financial assets include trade receivables which are initially recognised when
they are originated. Trade receivables are typically due within 30 to 90 days of the invoice being issued and are initially measured
at the transaction price.
Impairment
The Group recognises loss allowance for expected credit loss (ECLs) on trade receivables and contract assets. The Company
measures loss allowances using the simplified approach under AASB 9 Financial Instruments, which is an amount equal to lifetime
ECLs. Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.
When determining whether the credit risk of a trade receivable has increased significantly since initial recognition and when
estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost
or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and
informed credit assessment and including forward-looking information. In assessing credit risk, customers were disaggregated
based on various industry groups, location and customer size.
The Group assumes that the credit risk on a trade receivable has increased significantly if it is more than 90 days past due. The
Group considers a financial asset to be in default when:
•
•
•
there is significant financial difficulty of the customer;
a breach of contract such as a default or being more than 90 days past due; or
it is probable that the customer will enter bankruptcy or other financial reorganisation.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls
(i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group
expects to receive). ECLs are discounted at the effective interest rate of the financial asset.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. The
gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial
asset in its entirety or a portion thereof.
The accompanying notes form part of these financial statements.
64
Envirosuite Annual Report 2023
1.
(k)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Inventories
The Group acquires and manufactures environmental monitoring instruments and accessories, which are initially accounted for
as inventory. Inventories are measured at the lower of cost and net realisable value. The cost of environmental monitor inventories
is based on the specific identification of their individual costs while the cost of consumables and other smaller inventory items is
based on a weighted average cost formula. Provisions are made to write down slow-moving, excess and obsolete items to net
realisable value, based on an assessment of technological and market developments and on an analysis of historical and projected
usage with regard to quantities on hand.
Where instruments are used for demonstration purposes or when customers enter into a contract to use instruments where the
Group retains ownership, the instrument is transferred from inventories to property, plant and equipment and is depreciated on a
straight-line basis over its useful life. If the instrument is returned at the end of the contract, it is not transferred back to Inventories
but is retained in property, plant and equipment. The cost to install the instrument at the customer’s site is expensed as incurred.
(l)
Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure
will flow to the Group. If significant parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items (major components) of property, plant and equipment. Any gain and loss on disposal of an item of property,
plant and equipment is recognised in profit or loss.
Depreciation
Depreciation is calculated to write off the cost of property, plant and equipment less their estimated residual values using the
straight-line basis over their estimated useful lives, and is generally recognised in profit or loss. Leased assets are depreciated
over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the
end of the lease term. Land is not depreciated. The estimated useful lives of property, plant and equipment for the current period
is as follows:
•
•
•
•
•
Computer equipment
Furniture and fixtures
Leasehold improvements
Monitors and sensors
Right-of-use assets
(m)
Right of use assets
4 years
5 - 10 years
Remaining life of the lease (1 - 5 years)
5 years
Lower of economic or lease life
Right of use assets are measured at cost and comprise the amount that is recognised for the lease liability on initial recognition
(refer to Note 1(p)) less any lease incentives received and including direct costs and restoration-related costs. Right of use assets
include leased buildings and data centres and are depreciated over the remaining life of the lease. The remaining life of the leased
buildings are of 1 to 5 years. The Group does not recognise a right of use asset for short term or low value leases, instead the
expense is recognised over the lease term as appropriate as part of operating expenses in the income statement.
(n)
Intangible assets
Intangible assets include acquired intangible assets as part of asset acquisitions and business combinations, as well as internally
developed software costs. The estimated useful lives of intangible assets for the current period is as follows:
(n)
Intangible assets (continued)
Research and development
The Company develops software where customers pay a monthly license fee. The Company also develops environmental
monitoring equipment that it either sells or leases to its customers as part of providing them with environmental monitoring
solutions.
Research expenditure is recognised as an expense as incurred. Costs incurred on development projects (relating to the design
and testing of new or improved products) are recognised as intangible assets when it is probable that the project will, after
considering its commercial and technical feasibility, be completed and generate future economic benefits and its costs can be
measured reliably. The expenditure capitalised comprises all directly attributable costs, including costs of materials, services and
direct labour. Other development expenditures that do not meet these criteria are recognised as an expense as incurred.
Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Capitalised
development costs are recorded as intangible assets and amortised from the point at which the asset is ready for use on a straight
line basis over its useful life.
Impairment
At the end of each reporting period, the Group assess whether there is any indication that an asset may be impaired. The
assessment will include the consideration of external and internal sources. If such an indication exists, an impairment test is carried
out on the asset by comparing the assets carrying value to its recoverable amount being the higher of an asset’s fair value less
costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets
(cash generating units).
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.
(o)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are
unpaid. The amounts are unsecured and are usually paid within 30 to 90 days of recognition. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months from the reporting date. They are recognised initially
at their fair value and subsequently measured at amortised cost using the effective interest method.
(p)
Lease liabilities
Lease liabilities are initially measured at the present value of the future lease payments at the commencement date of the lease,
discounted using the interest rate implicit in the lease (or if that rate cannot be readily determined, the lessee’s incremental
borrowing rate). Lease payments are allocated between interest principal and interest with the interest component recognised in
the income statement as part of finance expense. Any variable lease payments not included in the measurement of the lease
liability are recognised in the income statement within operating expenses in the period in which the event or condition that
triggers those payments occurs.
Lease liabilities are remeasured when there is a change in future lease payments arising from a change in lease term, an
assessment of an option to purchase the underlying asset, or a change in the estimated amounts payable under the lease. When
the lease liability is remeasured, a corresponding adjustment is made to the carrying value of the Right of use asset, or in the
income statement if the carrying value of the Right of use asset has been fully written down.
(q)
Provisions
Provisions for legal claims and make good obligations are recognised when the Group has a present legal or constructive obligation
as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has
been reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present
obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of
the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised
as interest expense.
Internally developed software 5-7 years
Acquired software
Customer relationships
Brand value
•
•
•
•
5 years
5 years
5 years
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
65
Envirosuite Annual Report 2023
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(n)
Intangible assets (continued)
Research and development
The Company develops software where customers pay a monthly license fee. The Company also develops environmental
monitoring equipment that it either sells or leases to its customers as part of providing them with environmental monitoring
solutions.
Research expenditure is recognised as an expense as incurred. Costs incurred on development projects (relating to the design
and testing of new or improved products) are recognised as intangible assets when it is probable that the project will, after
considering its commercial and technical feasibility, be completed and generate future economic benefits and its costs can be
measured reliably. The expenditure capitalised comprises all directly attributable costs, including costs of materials, services and
direct labour. Other development expenditures that do not meet these criteria are recognised as an expense as incurred.
Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Capitalised
development costs are recorded as intangible assets and amortised from the point at which the asset is ready for use on a straight
line basis over its useful life.
Impairment
At the end of each reporting period, the Group assess whether there is any indication that an asset may be impaired. The
assessment will include the consideration of external and internal sources. If such an indication exists, an impairment test is carried
out on the asset by comparing the assets carrying value to its recoverable amount being the higher of an asset’s fair value less
costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets
(cash generating units).
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.
(o)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are
unpaid. The amounts are unsecured and are usually paid within 30 to 90 days of recognition. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months from the reporting date. They are recognised initially
at their fair value and subsequently measured at amortised cost using the effective interest method.
(p)
Lease liabilities
Lease liabilities are initially measured at the present value of the future lease payments at the commencement date of the lease,
discounted using the interest rate implicit in the lease (or if that rate cannot be readily determined, the lessee’s incremental
borrowing rate). Lease payments are allocated between interest principal and interest with the interest component recognised in
the income statement as part of finance expense. Any variable lease payments not included in the measurement of the lease
liability are recognised in the income statement within operating expenses in the period in which the event or condition that
triggers those payments occurs.
Lease liabilities are remeasured when there is a change in future lease payments arising from a change in lease term, an
assessment of an option to purchase the underlying asset, or a change in the estimated amounts payable under the lease. When
the lease liability is remeasured, a corresponding adjustment is made to the carrying value of the Right of use asset, or in the
income statement if the carrying value of the Right of use asset has been fully written down.
(q)
Provisions
Provisions for legal claims and make good obligations are recognised when the Group has a present legal or constructive obligation
as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has
been reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present
obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of
the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised
as interest expense.
The accompanying notes form part of these financial statements.
66
Envirosuite Annual Report 2023
1.
(r)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2.
FINANCIAL RISK MANAGEMENT
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.
Incremental costs directly attributable to the issue of new shares for the acquisition of a business are not included in the cost of
the acquisition as part of the purchase consideration.
If the entity reacquires its own equity instruments, for example as the result of a share buyback, those instruments are deducted
from equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the consideration paid
including any directly attributable incremental costs (net of income taxes) is recognised directly in equity.
(s)
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the
entity, on or before the end of the financial year but not distributed at balance date.
(t)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing:
•
•
the profit or loss attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary
shares and
by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in
ordinary shares issued during the year.
Diluted earnings 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 additional ordinary shares that would have been outstanding assuming the conversion
of all dilutive potential ordinary shares.
(u)
Rounding of amounts
The Company is of a kind referred to in legislative instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to the ‘’rounding off'' of amounts in the financial report. Amounts in the financial report have been rounded
off in accordance with that instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
(v)
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 Group for the financial year ended 30 June 2023. The Group not yet assessed the impact of these
new or amended Accounting Standards and Interpretations.
The Group is exposed to a variety of financial risks, principally related to credit, liquidity, and foreign currency risk. The Chief
Executive Officer (CEO) and Chief Financial Officer (CFO) are responsible for managing financial risk exposures of the Group. The
board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange
risk, credit risk, and investment of excess liquidity.
(a)
Credit risk
The Group is exposed to the risk of a financial loss if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. Credit risk arises principally from the Group’s receivables from customers. The Group’s maximum exposure
to credit risk at the balance date is the carrying amount of financial assets, net of any provisions for impairment and excluding the
value of any other collateral or other security.
The gross trade and other receivables balance at 30 June 2023 was $12,398k (2022: $14,127k) and the aging analysis of trade
receivables is provided in Note 8. The Group exposure to credit risk is affected by the regions and industries the Group’s
customers operate in. The majority of the Group’s customers are airports and water and waste operators around the world with a
growing exposure to customers within the mining industry.
Trade receivables are managed on an ongoing basis. The Group does not have any material credit risk exposure to any single
debtor. Aging analysis and ongoing collectability reviews are performed and, when appropriate, an expected credit risk loss
provision is raised. Historically, the Group has not had any significant write-offs in its trade receivables.
(b)
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. At 30 June 2023,
the Group had cash and cash equivalents of $8,277k (2022: $16,292k).
Total cash used in operating activities when adding capitalised development costs (included in cash flows from investing
activities) and repayment of lease liabilities (included in cash flows from financing activities) and excluding non-recurring
costs (“Adjusted Operating Cash Flow”) was an outflow $3,170k (2022: $9,459k).
Noting the Company’s demonstrated ability to raise cash from investors when required to fund growth initiatives, in addition
to the lack of debt on the balance sheet (other than lease liabilities recognised under AASB 16) along with strong fiscal
management, positive Adjusted EBITDA and operating cash flows results for FY23, the directors are of the view that the Group
will continue to be able to pay its debts as and when they fall due and have prepared the financial report on a going concern
basis.
(c)
Foreign currency risk
Foreign currency risk is the risk that the future cash flows of a financial instrument or forecasted transaction will fluctuate because
of changes in foreign exchange rates. The Group operates internationally and as such has exposure to foreign currency
movements. Approximately 74% of the Group’s revenue for the period ended 30 June 2023 was earned in foreign currency (2022:
70%). The Group primarily has exposure to Euro (EUR), US dollar (USD), Canadian dollar (CAD), British pound (GBP), Chinese
renminbi (CNY), Taiwan dollar (TWD) and Brazilian Real (BRL) from cash balances and trade receivables which are partially offset
by trade and other payables, employee provisions and borrowings in those currencies. The table below shows the impact to
comprehensive income before tax from a 10% increase and 10% decrease in the foreign currency exchange rate against the
Australian dollar (“AUD”).
$‘000
BRL
CAD
CNY
EUR
GBP
TWD
USD
Other
Total
2023
2022
Exposure
(AUD)
-10%
+10%
-10%
+10%
Exposure
(AUD)
1,111
123
(101) 470
714
79
(65)
1,707
190
(155)
2,748
305
(250)
1,021
113
(93)
1,638
182
(149)
3,632
404
(330)
1,008
1,601
3,398
1,784
1,200
5,400
1,016
114
(92) 829
13,587
1,510
(1,235)
15,690
(1,426)
(43)
(92)
(146)
(309)
(162)
(109)
(491)
(74)
52
112
178
378
198
133
600
92
1,743
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
67
Envirosuite Annual Report 2023
2.
FINANCIAL RISK MANAGEMENT
The Group is exposed to a variety of financial risks, principally related to credit, liquidity, and foreign currency risk. The Chief
Executive Officer (CEO) and Chief Financial Officer (CFO) are responsible for managing financial risk exposures of the Group. The
board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange
risk, credit risk, and investment of excess liquidity.
(a)
Credit risk
The Group is exposed to the risk of a financial loss if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. Credit risk arises principally from the Group’s receivables from customers. The Group’s maximum exposure
to credit risk at the balance date is the carrying amount of financial assets, net of any provisions for impairment and excluding the
value of any other collateral or other security.
The gross trade and other receivables balance at 30 June 2023 was $12,398k (2022: $14,127k) and the aging analysis of trade
receivables is provided in Note 8. The Group exposure to credit risk is affected by the regions and industries the Group’s
customers operate in. The majority of the Group’s customers are airports and water and waste operators around the world with a
growing exposure to customers within the mining industry.
Trade receivables are managed on an ongoing basis. The Group does not have any material credit risk exposure to any single
debtor. Aging analysis and ongoing collectability reviews are performed and, when appropriate, an expected credit risk loss
provision is raised. Historically, the Group has not had any significant write-offs in its trade receivables.
(b)
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. At 30 June 2023,
the Group had cash and cash equivalents of $8,277k (2022: $16,292k).
Total cash used in operating activities when adding capitalised development costs (included in cash flows from investing
activities) and repayment of lease liabilities (included in cash flows from financing activities) and excluding non-recurring
costs (“Adjusted Operating Cash Flow”) was an outflow $3,170k (2022: $9,459k).
Noting the Company’s demonstrated ability to raise cash from investors when required to fund growth initiatives, in addition
to the lack of debt on the balance sheet (other than lease liabilities recognised under AASB 16) along with strong fiscal
management, positive Adjusted EBITDA and operating cash flows results for FY23, the directors are of the view that the Group
will continue to be able to pay its debts as and when they fall due and have prepared the financial report on a going concern
basis.
(c)
Foreign currency risk
Foreign currency risk is the risk that the future cash flows of a financial instrument or forecasted transaction will fluctuate because
of changes in foreign exchange rates. The Group operates internationally and as such has exposure to foreign currency
movements. Approximately 74% of the Group’s revenue for the period ended 30 June 2023 was earned in foreign currency (2022:
70%). The Group primarily has exposure to Euro (EUR), US dollar (USD), Canadian dollar (CAD), British pound (GBP), Chinese
renminbi (CNY), Taiwan dollar (TWD) and Brazilian Real (BRL) from cash balances and trade receivables which are partially offset
by trade and other payables, employee provisions and borrowings in those currencies. The table below shows the impact to
comprehensive income before tax from a 10% increase and 10% decrease in the foreign currency exchange rate against the
Australian dollar (“AUD”).
$‘000
BRL
CAD
CNY
EUR
GBP
TWD
USD
Other
Total
2023
2022
Exposure
(AUD)
-10%
+10%
Exposure
(AUD)
-10%
+10%
1,111
123
(101) 470
714
79
(65)
1,707
190
(155)
2,748
305
(250)
1,021
113
(93)
1,638
182
(149)
3,632
404
(330)
1,008
1,601
3,398
1,784
1,200
5,400
1,016
114
(92) 829
13,587
1,510
(1,235)
15,690
52
112
178
378
198
133
600
92
1,743
(43)
(92)
(146)
(309)
(162)
(109)
(491)
(74)
(1,426)
The accompanying notes form part of these financial statements.
68
Envirosuite Annual Report 2023
3.
SEGMENT INFORMATION
3.
SEGMENT INFORMATION (continued)
The Group is organised into three geographic operating segments: Asia Pacific (APAC), Americas and Europe, Middle East and
Africa (EMEA) plus a central Corporate segment which contains costs that are managed centrally that are not allocated to the
geographic segments. These operating segments are based on the internal reports that are reviewed and used by the CEO and
board of directors, (who are identified as the Chief Operating Decision Makers (CODM)) in assessing performance and in
determining the allocation of resources.
Segment assets and liabilities are not presented as they are not regularly provided to the CODM and assets and liabilities are only
reviewed and considered on a consolidated basis.
The Group has a secondary operating segment which is each product family, being EVS Aviation, EVS Industrial (previously EVS
Omnis) and EVS Water. CODMs are provided with reporting on the recurring and non-recurring revenue for these secondary
Regional
2023
$‘000
Recurring revenue
Non-recurring revenue
Other revenue
Total Operating revenue
Cost of revenue
Gross profit
Operating expenses
Other income / (expense)
Operating deficit
Net finance expense
Net loss before tax
2022
$‘000
Recurring revenue
Non-recurring revenue
Other revenue
Total Operating revenue
Cost of revenue
Gross profit
Operating expenses
Other (expense) / income
Operating deficit
Net finance expense
Net loss before tax
Asia Pacific
EMEA
Americas
15,323 15,448 18,716
2,036 2,213 3,874 -
- - - 289
Corporate
Total
-
49,487
8,123
289
17,359
17,661 22,590 289
57,899
(10,707)
(8,284)
(9,737) -
(28,728)
6,652
9,377 12,853 289
29,171
(2,682)
(3,054)
(29,930)
- - - 143
(29,498)
(180)
8,157
(4) 18
3,598
(24)
6,695
(4,696)
(40,362)
143
(11,048)
(190)
3,574
6,691
8,175
(29,678)
(11,238)
4.
REVENUE
Asia Pacific
15,372
1,684
-
17,056
(9,354)
7,702
(3,656)
(5)
4,041
(31)
4,010
EMEA
13,901
2,640
-
16,541
(9,925)
6,616
(3,706)
134
3,044
(14)
3,030
Americas
14,604
5,239
-
19,843
(9,076)
10,767
(5,098)
223
5,892
(25)
Corporate
-
-
19
19
-
19
(25,309)
(262)
(25,552)
(140)
5,867
(25,692)
Total
43,877
9,563
19
53,459
(28,355)
25,104
(37,769)
90
(12,575)
(210)
(12,785)
operating segments.
Product family
2023
$‘000
Recurring revenue
Non-recurring revenue
Other revenue
Total Operating revenue
2022
$‘000
Recurring revenue
Non-recurring revenue
Other revenue
Total Operating revenue
Recurring revenue
Non-recurring revenue
Trading revenue
Other revenue
Other revenue
Total Operating revenue
EVS
EVS
Aviation
Industrial EVS Water
Corporate
Total
33,052 15,898 537 -
49,487
4,095 3,881 147 -
8,123
-
-
-
289
289
37,147 19,779 684 289
57,899
EVS Aviation
Industrial EVS Water
Corporate
EVS
12,699
5,653
-
31,061
3,900
-
34,961
18,352
117
10
-
127
-
-
19
19
Total
43,877
9,563
19
53,459
2023
$’000
49,487
8,123
57,610
289
289
2022
$’000
43,877
9,563
53,440
19
19
57,899
53,459
The Group generated 64% of its revenues for the current reporting period from customers in the Aviation industry (2022: 65%).
In addition, the Group generated 15% of its total income and 16% of its recurring income from the Australian government and
entities controlled by the Australian government (2022: 18% and 21%).
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
69
Envirosuite Annual Report 2023
3.
SEGMENT INFORMATION (continued)
The Group has a secondary operating segment which is each product family, being EVS Aviation, EVS Industrial (previously EVS
Omnis) and EVS Water. CODMs are provided with reporting on the recurring and non-recurring revenue for these secondary
operating segments.
Product family
2023
$‘000
Recurring revenue
Non-recurring revenue
Other revenue
Total Operating revenue
2022
$‘000
Recurring revenue
Non-recurring revenue
Other revenue
Total Operating revenue
4.
REVENUE
Recurring revenue
Non-recurring revenue
Trading revenue
Other revenue
Other revenue
Total Operating revenue
EVS
Aviation
EVS
Industrial EVS Water
Corporate
Total
33,052 15,898 537 -
4,095 3,881 147 -
49,487
8,123
289
37,147 19,779 684 289
-
-
-
289
57,899
EVS
EVS Aviation
31,061
3,900
-
34,961
Industrial EVS Water
117
10
-
127
12,699
5,653
-
18,352
Corporate
-
-
19
19
Total
43,877
9,563
19
53,459
2023
$’000
49,487
8,123
57,610
289
289
2022
$’000
43,877
9,563
53,440
19
19
57,899
53,459
The Group generated 64% of its revenues for the current reporting period from customers in the Aviation industry (2022: 65%).
In addition, the Group generated 15% of its total income and 16% of its recurring income from the Australian government and
entities controlled by the Australian government (2022: 18% and 21%).
The accompanying notes form part of these financial statements.
70
Envirosuite Annual Report 2023
5.
EXPENSES
6.
TAX
The Group categorises expenses within the Consolidated Income Statement based on the function of the expense. The table
below discloses expenses based on the nature of the expense.
Cost of revenue and operating expenses
Cost of revenue
Total Operating expenses
Total Cost of revenue and operating expenses
Total Cost of revenue and operating expenses is comprised of:
Employment costs
Share based compensation
Consultants and contractors
Professional fees
Computer expenses
Equipment costs
Building costs
Director’s fees
Audit and audit related fees
Depreciation and amortisation (excl intangible asset – software amortisation)
Other operating expenses
Sub-total
Software development cost - capitalised
Intangible asset – software amortisation
R&D costs capitalised, net
2023
$’000
(28,728)
(40,362)
(69,090)
(37,776)
(743)
(1,941)
(2,430)
(3,882)
(3,744)
(1,135)
(416)
(369)
(5,647)
(12,730)
(70,813)
5,511
(3,788)
1,723
2022
$’000
(28,355)
(37,769)
(66,124)
(36,424)
(1,477)
(1,693)
(2,439)
(2,830)
(4,612)
(906)
(405)
(395)
(5,160)
(11,683)
(68,024)
4,897
(2,997)
1,900
Total Cost of revenue and operating expenses
(69,090)
(66,124)
During the year the following fees were paid or payable for services provided by the auditor of the parent entity (PKF Brisbane
Audit), its related practices and non-related audit firms:
PKF Brisbane
Related firms (PKF overseas firms)
Non-related firms
Total Remuneration of auditors
2023
$’000
224
128
17
369
2022
$’000
214
180
33
427
(a)
Income tax expense / (benefit)
Current tax expense / (benefit)
Deferred tax expense / (benefit)
Total Income tax expense / (benefit)
(b)
Reconciliation of income tax expense to prima facie tax payable
Prima facie tax benefit on operating deficit at 30.0% (2022: 30.0%)
Effect of foreign exchange on profit / loss
Tax effects of items which are non-deductible / (non-assessable) in
calculating taxable income:
Non-allowable items (including R&D expenditure)
Share based payments expensed during the year
Difference in offshore tax rates
Add / (less):
Under/(over) provision for income tax in prior year
Revaluation of Deferred tax balances due to change in tax rate
Deferred tax valuation allowance increase
Total Income tax expense / (benefit)
228
2023
$’000
(1,188)
(960)
(3,371)
47
(3,835)
-
2022
$’000
350
60
410
(67)
443
(46)
311
(681)
4,285
410
37
223
(101)
122
-
2,083
(960)
(c) Deferred income tax
Trade and other receivables
2023
Inventory
Property, plant and equipment
Right of use asset and Lease liability
151
Opening
Recognised in
Balance
profit or loss
$’000
252
169
(28)
(6,653)
$’000
(68)
(100)
2
283
125
Intangible asset
Revenue in advance
Employee provisions
Issued capital
Net DTA / (DTL)
328
37
1,123
97
586
-
-
-
(248)
Charged
directly to
Equity
$’000
Effect of
foreign
Deferred
Deferred
exchange
Tax Asset
Tax Liability
$’000
$’000
$’000
-
-
-
-
-
-
-
-
-
-
- 184
- 69
- 434
- 365
- 1,220
- 338
-
-
(26)
(6,528)
(3,172)
3,172
-
-
-
-
-
-
-
-
-
-
-
-
1
Tax losses
Valuation allowance
Balance at 30 June 2023
15,123
2,895
(14,073)
(3,022)
(2,083)
1,188
(248)
1 18,018
(16,155)
1,301
(3,382)
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
71
Envirosuite Annual Report 2023
6.
TAX
Income tax expense / (benefit)
(a)
Current tax expense / (benefit)
Deferred tax expense / (benefit)
Total Income tax expense / (benefit)
Reconciliation of income tax expense to prima facie tax payable
(b)
Prima facie tax benefit on operating deficit at 30.0% (2022: 30.0%)
Effect of foreign exchange on profit / loss
Tax effects of items which are non-deductible / (non-assessable) in
calculating taxable income:
Non-allowable items (including R&D expenditure)
Share based payments expensed during the year
Difference in offshore tax rates
Add / (less):
Under/(over) provision for income tax in prior year
Revaluation of Deferred tax balances due to change in tax rate
Deferred tax valuation allowance increase
Total Income tax expense / (benefit)
2023
$’000
228
(1,188)
(960)
2022
$’000
350
60
410
(3,371)
47
(3,835)
-
37
223
(101)
122
-
2,083
(960)
(67)
443
(46)
311
(681)
4,285
410
(c) Deferred income tax
2023
Trade and other receivables
Inventory
Property, plant and equipment
Right of use asset and Lease liability
Intangible asset
Revenue in advance
Employee provisions
Issued capital
Net DTA / (DTL)
Opening
Balance
$’000
252
169
(28)
151
(6,653)
328
1,123
586
-
Recognised in
profit or loss
$’000
(68)
(100)
2
283
125
37
97
-
-
Charged
directly to
Equity
$’000
-
-
-
-
-
-
-
(248)
-
Effect of
foreign
exchange
$’000
Deferred
Tax Asset
$’000
- 184
- 69
-
-
- 434
-
-
- 365
- 1,220
- 338
(3,172)
-
Deferred
Tax Liability
$’000
-
-
(26)
-
(6,528)
-
-
-
3,172
Tax losses
Valuation allowance
Balance at 30 June 2023
15,123
(14,073)
(3,022)
2,895
(2,083)
1,188
-
-
(248)
1 18,018
(16,155)
-
1,301
1
-
-
(3,382)
The accompanying notes form part of these financial statements.
72
Envirosuite Annual Report 2023
6.
TAX (Continued)
8.
TRADE AND OTHER RECEIVABLES
2022
Trade and other receivables
Inventory
Property, plant and equipment
Right of use asset and Lease
liability
Intangible asset
Revenue in advance
Employee provisions
Issued capital
Net DTA / (DTL)
Tax losses
Valuation allowance
Balance at 30 June 2022
Opening
Balance
$’000
481
629
(17)
Recognised in
profit or loss
$’000
(229)
(460)
(11)
Charged
directly to
Equity
$’000
-
-
-
Effect of
foreign
exchange
$’000
-
-
-
Deferred
Tax Asset
$’000
252
169
-
Deferred
Tax Liability
$’000
-
-
(28)
197
(5,829)
174
807
578
-
9,798
(9,787)
(2,969)
(46)
(824)
154
316
-
-
5,325
(4,285)
(60)
-
-
-
-
8
-
-
-
8
-
-
-
-
-
-
-
(1)
(1)
151
-
328
1,123
586
(2,687)
15,123
(14,073)
972
-
(6,653)
-
-
-
2,687
-
-
(3,994)
The Group has unused tax losses of $51,939,898 (2022: $43,319,979) and R&D tax offsets of $2,898,391 (2022: $2,466,806) for
which a valuation allowance of $16,155,178 (2022: $14,072,801) has been placed against the related deferred tax asset of
$18,017,884 (2022: $15,122,999).
7.
CASH AND CASH EQUIVALENTS
Cash at bank
Term deposits
Cash and cash equivalents
2023
$’000
8,177
100
8,277
2022
$’000
16,168
124
16,292
Term deposits are with financial institutions with an investment grade rating and are for a term of 90 days or less. While the Group
is exposed to interest rate risk on cash and term deposits, the impact of fluctuations in market interest rates is not material to the
Group’s performance.
Due to the short-term nature of these receivables, the carrying amount is assumed to approximate their fair value. The maximum
exposure to credit risk at the reporting date is the carrying amount of each class of receivables mentioned above. The fair value
of securities held for certain trade receivables is insignificant as is the fair value of any collateral sold or re-pledged. Refer to Note
2 for more information on the risk management policy of the Group and the credit quality of the Group's trade receivables.
Management have considered the impact of COVID-19 on trade and other receivables and do not anticipate a significant
deterioration of recoverability beyond the level of current provisioning.
Trade receivables, net aging analysis
Trade receivables
Provision for impairment
Trade receivables, net
Contract assets
Other debtors
Trade and other receivables
Not past due
Past due 1-30 days
Past due 31-60 days
Past due 61-90 days
Past due more than 91 days
Total
Fair value and credit risk
9.
INVENTORIES
Work in progress
Finished goods
Inventories
10.
OTHER ASSETS
Prepayments
Finance lease receivables
Deposits
Loan note receivable
Other current assets
Prepayments
Deposits
Other non-current assets
Inventories are carried at the lower of cost or net realisable value.
7,349
2023
$’000
(1,436)
5,913
4,884
165
10,962
3,978
943
255
231
506
5,913
2023
$’000
1,110
2,826
3,936
2023
$’000
1,745
-
316
1,526
3,587
2
2,023
2,025
2022
$’000
10,286
(1,679)
8,607
3,781
60
12,448
5,823
1,611
411
249
513
8,607
2022
$’000
664
1,691
2,355
2022
$’000
1,263
18
1,077
1,526
3,884
37
879
916
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
73
Envirosuite Annual Report 2023
8.
TRADE AND OTHER RECEIVABLES
Trade receivables
Provision for impairment
Trade receivables, net
Contract assets
Other debtors
Trade and other receivables
Trade receivables, net aging analysis
Not past due
Past due 1-30 days
Past due 31-60 days
Past due 61-90 days
Past due more than 91 days
Total
Fair value and credit risk
2023
$’000
7,349
(1,436)
5,913
4,884
165
10,962
3,978
943
255
231
506
5,913
2022
$’000
10,286
(1,679)
8,607
3,781
60
12,448
5,823
1,611
411
249
513
8,607
Due to the short-term nature of these receivables, the carrying amount is assumed to approximate their fair value. The maximum
exposure to credit risk at the reporting date is the carrying amount of each class of receivables mentioned above. The fair value
of securities held for certain trade receivables is insignificant as is the fair value of any collateral sold or re-pledged. Refer to Note
2 for more information on the risk management policy of the Group and the credit quality of the Group's trade receivables.
Management have considered the impact of COVID-19 on trade and other receivables and do not anticipate a significant
deterioration of recoverability beyond the level of current provisioning.
9.
INVENTORIES
Work in progress
Finished goods
Inventories
Inventories are carried at the lower of cost or net realisable value.
10.
OTHER ASSETS
Prepayments
Finance lease receivables
Deposits
Loan note receivable
Other current assets
Prepayments
Deposits
Other non-current assets
The accompanying notes form part of these financial statements.
2023
$’000
1,110
2,826
3,936
2023
$’000
1,745
-
316
1,526
3,587
2
2,023
2,025
2022
$’000
664
1,691
2,355
2022
$’000
1,263
18
1,077
1,526
3,884
37
879
916
74
Envirosuite Annual Report 2023
10.
OTHER ASSETS (Continued)
12.
RIGHT OF USE ASSETS AND LEASE LIABILITIES
Prepayments represent prepaid insurance, prepaid software licenses, and other prepaid expenses. Deposits include deposits for
building leases as well as cash backed bid and performance bond deposits. These deposits are pledged as security against non-
performance of the Group, including non-payment of rent, inability to deliver based on the bid submitted, or inability to deliver
based on a contract entered into with a customer.
Loan note receivable represents the final settlement of the Spectris Instrumentation and Systems Shanghai Limited (Spectris)
acquisition in May 2018, there is an equal amount payable in other liabilities, refer to Note 14. To finalise the acquisition under the
laws and regulations of China, a flow of cash between the Spectris and Group subsidiaries in China is required. As a Group there
is a net nil impact on working capital and cash flow, however, given the loan notes are with separate legal entities within the
groups and is a material value, the Group has presented the balances grossed up in current assets and current liabilities. The loan
notes are expected to be settled in the first half of the 2024 financial year.
11.
PROPERTY, PLANT AND EQUIPMENT
Reconciliations of the carrying amounts of the various components of property, plant and equipment at the beginning and end of
the current year and prior year are presented in the table below.
2023
$’000
Cost value
Furniture and
fixtures
Computer
equipment
Monitors and
sensors
Leasehold
improvements
Total
Balance at 1 June 2022
477
7,830
1,822
10,675
546
Additions
Transfer from inventories
Disposals
Effect of foreign exchange
16
-
(78)
8
180 -
- 1,586
(25)
(3)
1,568
1,372
- 1,586
(226)
(120)
48 321 13
390
Balance at 30 June 2023
423 2,047
9,712
1,811 13,993
Right of use assets
Buildings
Balance at 1 July
Additions
Terminations of leases
Exercise of early termination option
Depreciation
Effect of foreign exchange
Balance at 30 June
Data centres
Balance at 1 July
Depreciation
Effect of foreign exchange
Balance at 30 June
Total Right of use assets
Accumulated depreciation
Balance at 1 June 2022
Depreciation for the period
(290)
(62)
(1,191)
(297)
(5,245)
(1,010)
(441)
(147)
(7,167)
(1,516)
Lease liabilities
Current
Non-Current
Building leases for periods of less than 12 months and variable lease payments for recharge of overhead costs by the building
owner are included within building costs as disclosed in Note 5.
Lease liabilities are included within lease liabilities and other borrowings on the Consolidated Statement of Financial Position.
Interest expense on lease liabilities for 2023 was $242,635 (2022: $230,914) and is included within net finance expense on the
Consolidated Income Statement.
2023
$’000
1,711
1,332
16
(949)
2,110
-
-
-
-
-
-
2,110
2022
$’000
3,016
459
(62)
(534)
(1,211)
43
1,711
237
(246)
9
-
1,711
2023
$’000
1,158
2,427
3,585
2022
$’000
1,045
1,206
2,251
Disposals
62
19
(5)
(295)
2
(10)
(1,496)
(239)
(6,475)
108
(2)
(482)
(8,748)
128 551 3,237 1,329 5,245
191
Balance at 30 June 2023
(256)
Effect of foreign exchange
Balance at 30 June 2023
Net book value
2022
$’000
Cost value
Balance at 1 June 2021
Additions
Transfer from inventories
Disposals
Effect of foreign exchange
Balance at 30 June 2022
Accumulated depreciation
Balance at 1 June 2021
Reclassifications
Depreciation for the period
Disposals
Effect of foreign exchange
Balance at 30 June 2022
Net book value
Furniture and
fixtures
Computer
equipment
Monitors and
sensors
Leasehold
improvements
488
60
-
(75)
4
477
(294)
-
(68)
75
(3)
(290)
187
1,546
284
-
-
(8)
1,822
(853)
-
(338)
-
-
(1,191)
631
6,425
81
1,298
-
26
7,830
(4,544)
90
(844)
-
53
(5,245)
2,585
507
39
-
-
-
546
(228)
(90)
(122)
-
(1)
(441)
105
Total
8,966
464
1,298
(75)
22
10,675
(5,919)
-
(1,372)
75
49
(7,167)
3,508
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
75
Envirosuite Annual Report 2023
12.
RIGHT OF USE ASSETS AND LEASE LIABILITIES
Right of use assets
Buildings
Balance at 1 July
Additions
Terminations of leases
Exercise of early termination option
Depreciation
Effect of foreign exchange
Balance at 30 June
Data centres
Balance at 1 July
Depreciation
Effect of foreign exchange
Balance at 30 June
Total Right of use assets
2023
$’000
1,711
1,332
-
-
(949)
16
2,110
-
-
-
-
2,110
2022
$’000
3,016
459
(62)
(534)
(1,211)
43
1,711
237
(246)
9
-
1,711
Building leases for periods of less than 12 months and variable lease payments for recharge of overhead costs by the building
owner are included within building costs as disclosed in Note 5.
Lease liabilities are included within lease liabilities and other borrowings on the Consolidated Statement of Financial Position.
Interest expense on lease liabilities for 2023 was $242,635 (2022: $230,914) and is included within net finance expense on the
Consolidated Income Statement.
Lease liabilities
Current
Non-Current
Balance at 30 June 2023
2023
$’000
1,158
2,427
3,585
2022
$’000
1,045
1,206
2,251
The accompanying notes form part of these financial statements.
76
Envirosuite Annual Report 2023
13.
INTANGIBLE ASSETS
13.
INTANGIBLE ASSETS (continued)
Reconciliations of the carrying amounts of the various components of intangible assets at the beginning and end of the current
year and prior year are presented in the table below. Other intangibles consist of customer relationships, brand value and
intellectual property.
2023
$’000
Cost value
Balance at 1 July 2022
Additions
Effects of foreign exchange
Balance at 30 June 2023
Accumulated amortisation
Balance at 1 July 2022
Amortisation for the period
Write-off
Balance at 30 June 2023
Net book value
2022
$’000
Cost value
Balance at 1 July 2021
Additions
Reclassification
Write-off
Effects of foreign exchange
Balance at 30 June 2022
Accumulated amortisation
Balance at 1 July 2021
Amortisation for the period
Write-off
Balance at 30 June 2022
Net book value
Impairment tests
Internally
developed
software
Goodwill
89,551
15,523
- 4,855
-
1
Acquired
Software
Other
Intangibles
Total
10,942
5,960
121,976
- 656 5,511
1
-
-
89,552 20,378 10,942 6,616 127,488
-
-
-
(6,313)
(3,361)
-
(4,803)
(2,183)
(1)
(2,208)
(1,373)
-
(13,324)
(6,917)
(1)
(20,242)
89,552 10,704 3,955 3,035 107,246
(9,674)
(6,987)
(3,581)
-
Internally
developed
software
Goodwill
Acquired
Software
Other
Intangibles
89,513
-
-
-
38
89,551
-
-
-
-
89,551
11,070
4,491
(38)
-
-
15,523
(4,263)
(2,050)
-
(6,313)
9,210
11,372
99
(310)
(219)
-
10,942
(2,693)
(2,137)
27
(4,803)
6,139
5,193
419
348
-
-
5,960
(1,261)
(947)
-
(2,208)
3,752
Total
117,148
5,009
-
(219)
38
121,976
(8,217)
(5,134)
27
(13,324)
108,652
The Group has identified that there are three regional Cash Generating Units (CGU) which are aligned with the operating segments
disclosed in Note 3 and against which goodwill and other intangible assets are allocated and tested. Goodwill has been allocated
to each CGU as follows:
Asia Pacific
EMEA
Americas
Total Goodwill allocated
2023
$’000
37,743
29,701
22,108
89,552
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
77
In accordance with accounting standard AASB 136 Impairment of Assets, the Group tests goodwill for impairment annually or
more frequently whenever indicators of impairment are identified. In accordance with the accounting standard the Group has set
30 June as the date for the annual review for impairment of the cash generating units (CGUs) to which goodwill has been allocated.
In testing for impairment, the carrying amount of each CGU is compared against the recoverable amount. AASB 136 defines
recoverable amount as being the higher of its fair value less cost of disposal (FVLCOD) and its value in use. The Group has adopted
FVLCOD as the basis for determining the recoverable amount of each CGU.
In adopting FVLCOD, the Group has applied accounting standard AASB 13 Fair Value Measurement as directed by AASB 136. In
applying AASB 13 the Group has adopted the Income Approach to determine fair value. The income Approach converts future
cash amounts to a single (discounted) amount using a discounted cash flow model. The fair value measured reflects current
market expectations about future amounts and is a technique commonly applied by market participants in determining fair value.
Under the Income Approach adopted, the Group has allowed for restructure costs representing cost synergies that a market
participant would typically apply in an orderly transaction between market participants.
The discounted cash flow model (DCF) uses post-tax cash flow projections that are based on the most recent Board approved
12-month budget and extrapolated for a further four years using underlying customer revenue contract data, appropriate growth
rates, cost synergies, risk-based discount rates and a terminal value as appropriate for the CGU. Terminal growth rates applied
in the DCF are based on estimates of long-term industry growth in the country in which the CGU primarily operates.
The assumptions applied in calculating the recoverable amounts of the CGU in testing for impairment are as follows:
Input
Budget period
Forecast period
Four-year revenue compound annual
growth rate post year 1
Post tax discount rate
Terminal growth rate
Asia Pacific
Americas
EMEA
1 year from 1 Jul 23
1 year from 1 Jul 23
1 year from 1 Jul 23
4 years from 1 Jul 24
4 years from 1 Jul 24
4 years from 1 Jul 24
16.58%
12.25%
2.75%
17.91%
12.50%
2.00%
15.87%
13.50%
2.00%
The discount rates for each CGU reflects management’s estimate of the time value of money and the Group’s weighted average
cost of capital adjusted for each CGU’s risk-free rate in each CGU’s major operating country and the volatility of the share price
relative to market movements.
Projected revenue growth rates in each CGU are considered appropriate based on experience and forecasts of the growth of the
market for environmental intelligence products.
Based upon the FVLCOD estimates using a discounted cash flow model, the carrying values of the CGU’s and the goodwill therein
Management have made judgements and estimates in respect of impairment testing. Should these judgements and estimates not
are not impaired (2022: no impairment).
Sensitivities
occur the resulting goodwill carrying amount may decrease.
The key sensitivities that management has considered are as follows:
Revenue decreases by 5% per year over the forecast period
Terminal growth rate decreases by 5%
•
•
•
the CGU resides
Post tax discount rate increased by between 3.5% and 6.7% for the CGU based upon market factors for countries where
Incorporating these sensitivities within the DCF model has not impacted the CGU impairment outcome.
Envirosuite Annual Report 2023
13.
INTANGIBLE ASSETS (continued)
In accordance with accounting standard AASB 136 Impairment of Assets, the Group tests goodwill for impairment annually or
more frequently whenever indicators of impairment are identified. In accordance with the accounting standard the Group has set
30 June as the date for the annual review for impairment of the cash generating units (CGUs) to which goodwill has been allocated.
In testing for impairment, the carrying amount of each CGU is compared against the recoverable amount. AASB 136 defines
recoverable amount as being the higher of its fair value less cost of disposal (FVLCOD) and its value in use. The Group has adopted
FVLCOD as the basis for determining the recoverable amount of each CGU.
In adopting FVLCOD, the Group has applied accounting standard AASB 13 Fair Value Measurement as directed by AASB 136. In
applying AASB 13 the Group has adopted the Income Approach to determine fair value. The income Approach converts future
cash amounts to a single (discounted) amount using a discounted cash flow model. The fair value measured reflects current
market expectations about future amounts and is a technique commonly applied by market participants in determining fair value.
Under the Income Approach adopted, the Group has allowed for restructure costs representing cost synergies that a market
participant would typically apply in an orderly transaction between market participants.
The discounted cash flow model (DCF) uses post-tax cash flow projections that are based on the most recent Board approved
12-month budget and extrapolated for a further four years using underlying customer revenue contract data, appropriate growth
rates, cost synergies, risk-based discount rates and a terminal value as appropriate for the CGU. Terminal growth rates applied
in the DCF are based on estimates of long-term industry growth in the country in which the CGU primarily operates.
The assumptions applied in calculating the recoverable amounts of the CGU in testing for impairment are as follows:
Input
Budget period
Forecast period
Four-year revenue compound annual
growth rate post year 1
Post tax discount rate
Terminal growth rate
Asia Pacific
Americas
EMEA
1 year from 1 Jul 23
1 year from 1 Jul 23
1 year from 1 Jul 23
4 years from 1 Jul 24
4 years from 1 Jul 24
4 years from 1 Jul 24
16.58%
12.25%
2.75%
17.91%
12.50%
2.00%
15.87%
13.50%
2.00%
The discount rates for each CGU reflects management’s estimate of the time value of money and the Group’s weighted average
cost of capital adjusted for each CGU’s risk-free rate in each CGU’s major operating country and the volatility of the share price
relative to market movements.
Projected revenue growth rates in each CGU are considered appropriate based on experience and forecasts of the growth of the
market for environmental intelligence products.
Based upon the FVLCOD estimates using a discounted cash flow model, the carrying values of the CGU’s and the goodwill therein
are not impaired (2022: no impairment).
Sensitivities
Management have made judgements and estimates in respect of impairment testing. Should these judgements and estimates not
occur the resulting goodwill carrying amount may decrease.
The key sensitivities that management has considered are as follows:
•
•
•
Revenue decreases by 5% per year over the forecast period
Terminal growth rate decreases by 5%
Post tax discount rate increased by between 3.5% and 6.7% for the CGU based upon market factors for countries where
the CGU resides
Incorporating these sensitivities within the DCF model has not impacted the CGU impairment outcome.
The accompanying notes form part of these financial statements.
78
Envirosuite Annual Report 2023
14.
TRADE AND OTHER PAYABLES
16.
ISSUED CAPITAL
Trade payables
GST / VAT payable
Accrued expenses
Other payables
Total Trade and other payables
CONTRACT LIABILITIES
Revenue in advance
Total Contract liabilities
2023
$’000
3,852
717
277
3,897
8,743
2023
$’000
5,165
5,165
2022
$’000
3,207
473
906
3,881
8,467
2022
$’000
4,092
4,092
Movements in the number of ordinary shares on issue during the financial year is presented in the following table.
Movements in ordinary shares
Balance at 1 July
2023
Number
2023
$’000
2022
Number
2022
$’000
1,255,268,970 180,597
1,193,839,427
169,520
Issue of ordinary shares - employee performance rights
5,869,660 923
6,511,653
1,039
Issue of ordinary shares - directors
467,836 80
Issue of ordinary shares - exercising of employee and
director share options
Issue of ordinary shares - institutional and share placement
Transaction costs of capital raising (inc. tax effect)
Issue of ordinary shares - Employee Share Plan - $1k offer
-
-
-
-
-
-
-
(248)
-
-
2,000,000
52,345,620
572,270
-
28
10,469
(548)
89
Ordinary shares on issue at 30 June
1,261,606,466 181,352
1,255,268,970
180,597
Revenue in advance is a contract liability and is recognised in accordance with the revenue recognition accounting policy at Note
1(f).
OTHER LIABILITIES
Loan note payable
Total Other liabilities
2023
$’000
1,526
1,526
2022
$’000
1,526
1,526
No options were issued for the year ended 30 June 2022.
At reporting date, the Company had the following options on issue:
For the year ended 30 June 2023, the Company issued the following options:
2,000,000 issued to directors with an exercise price of $0.40 each that expire in December 2025.
Loan note payable represents the final settlement of the Spectris Instrumentation and Systems Shanghai Limited (Spectris)
acquisition in May 2018, there is an equal amount receivable in Other Assets, refer to Note 10.
10,000,000 issued to investors with an exercise price of $0.20 each that expire in April 2025.
2,000,000 issued to directors with an exercise price of $0.40 each that expire in December 2025.
Options
•
•
•
15.
EMPLOYEE BENEFIT PROVISIONS
Employee benefits
Current
Balance at 1 July
Additional provisions
Amounts used
Unused amounts reversed
Balance at 30 June
Non-current
Balance at 1 July
Additional provisions
Amounts used
Unused amounts reversed
Balance at 30 June
2023
$’000
4,527
6,010
(4,854)
(138)
5,545
160
95
-
(28)
227
2022
$’000
3,894
2,335
(1,702)
-
4,527
141
19
-
-
160
Amounts not expected to be settled within the next 12 months
The provision for long service leave includes an estimate of the entitlements for employees in Australia who are expected to have
completed seven to ten years of continuous employment depending on the state in which they reside. The entire amount of long
service leave for employees where there is an unconditional entitlement is presented as current, since the Group does not have
an unconditional right to defer settlement. Provision for long service leave where the entitlement only becomes unconditional in a
period beyond 12 months are presented as non-current.
Each option allows the holder to receive one ordinary share of Envirosuite Limited upon paying the exercise price prior to the
expiration date. Information relating to the options, including details of options issued, exercised and lapsed during the financial
year and options outstanding at the end of the financial year, is set out in Note 21.
Share based payments
certain vesting conditions being met.
Executive performance rights issued to employees for the year ended 30 June 2023 totalled 6,073,913 (30 June 2022:
17,411,675), refer to Note 21. Each performance right entitles the holder to receive one ordinary share of Envirosuite Limited upon
Capital risk management
capital.
The Group's objectives when managing capital are 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 optimal capital structure to reduce the cost of
Consistent with others in the industry, the Group monitors capital on the basis of the quick ratio. This ratio is calculated as current
assets (excluding inventory) divided by current liabilities. The quick ratio at 30 June 2023 was 1.03x (30 June 2022: 1.66x)
At 30 June 2023, the Group had cash and cash equivalents of $8,277k and no borrowings other than lease liabilities recognised
under AASB 16. The Group also has standing credit facility arrangements with banks of $253k (2022: $294k) of which $110k was
available at 30 June 2023 (2022: $146k). The Group generated an operating cash inflow of $746k for the year ending 30 June
2023 (2022: $3,188k outflow). The Group focuses on rolling cash flow forecasts to ensure that it has sufficient funding available
from cash and cash equivalents to fund operations.
The accompanying notes form part of these financial statements.
79
The accompanying notes form part of these financial statements.
Envirosuite Annual Report 2023
16.
ISSUED CAPITAL
Movements in the number of ordinary shares on issue during the financial year is presented in the following table.
Movements in ordinary shares
Balance at 1 July
Issue of ordinary shares - employee performance rights
Issue of ordinary shares - directors
Issue of ordinary shares - exercising of employee and
director share options
Issue of ordinary shares - institutional and share placement
Transaction costs of capital raising (inc. tax effect)
Issue of ordinary shares - Employee Share Plan - $1k offer
Ordinary shares on issue at 30 June
2023
Number
2023
$’000
2022
Number
1,255,268,970 180,597
5,869,660 923
467,836 80
1,193,839,427
6,511,653
-
2022
$’000
169,520
1,039
-
-
-
2,000,000
28
-
-
(248)
-
-
-
1,261,606,466 181,352
52,345,620
-
572,270
1,255,268,970
10,469
(548)
89
180,597
Options
For the year ended 30 June 2023, the Company issued the following options:
•
2,000,000 issued to directors with an exercise price of $0.40 each that expire in December 2025.
No options were issued for the year ended 30 June 2022.
At reporting date, the Company had the following options on issue:
•
•
10,000,000 issued to investors with an exercise price of $0.20 each that expire in April 2025.
2,000,000 issued to directors with an exercise price of $0.40 each that expire in December 2025.
Each option allows the holder to receive one ordinary share of Envirosuite Limited upon paying the exercise price prior to the
expiration date. Information relating to the options, including details of options issued, exercised and lapsed during the financial
year and options outstanding at the end of the financial year, is set out in Note 21.
Share based payments
Executive performance rights issued to employees for the year ended 30 June 2023 totalled 6,073,913 (30 June 2022:
17,411,675), refer to Note 21. Each performance right entitles the holder to receive one ordinary share of Envirosuite Limited upon
certain vesting conditions being met.
Capital risk management
The Group's objectives when managing capital are 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 optimal capital structure to reduce the cost of
capital.
Consistent with others in the industry, the Group monitors capital on the basis of the quick ratio. This ratio is calculated as current
assets (excluding inventory) divided by current liabilities. The quick ratio at 30 June 2023 was 1.03x (30 June 2022: 1.66x)
At 30 June 2023, the Group had cash and cash equivalents of $8,277k and no borrowings other than lease liabilities recognised
under AASB 16. The Group also has standing credit facility arrangements with banks of $253k (2022: $294k) of which $110k was
available at 30 June 2023 (2022: $146k). The Group generated an operating cash inflow of $746k for the year ending 30 June
2023 (2022: $3,188k outflow). The Group focuses on rolling cash flow forecasts to ensure that it has sufficient funding available
from cash and cash equivalents to fund operations.
The accompanying notes form part of these financial statements.
80
Envirosuite Annual Report 2023
17.
RESERVES AND RETAINED LOSSES
19.
RELATED PARTY TRANSACTIONS
Reserves
Foreign exchange translation reserve
Movements
Balance at 1 July
Effects of foreign exchange translation
Foreign exchange translation reserve – balance at 30 June
Share based payments reserve
Movements
Balance at 1 July
Share based payments expense – net
Transfer to retained losses
Share based payments reserve – balance at 30 June
Total Reserves
Retained losses
Movements
Balance at 1 July
Transfer from share based payments reserve
Net loss for the year
Retained losses – balance at 30 June
Nature and purpose of reserves
2023
$’000
(907)
498
(409)
11,705
(180)
(9,450)
2,075
1,666
2023
$’000
(65,674)
9,450
(10,278)
(66,502)
2022
$’000
(925)
18
(907)
12,854
520
(1,669)
11,705
10,798
2022
$’000
(54,148)
1,669
(13,195)
(65,674)
Foreign currency translation reserve
Exchange differences arising on translation of foreign controlled entities are recognised in other comprehensive income and
accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment
is disposed of.
Share based payments reserve
The share based payments reserve is used to recognise the accrued grant date fair value of options and performance rights
issued to employees and directors but not exercised and issued. The fair value of options and performance rights is accrued into
the share based payment reserve over the service period. When options and performance rights are exercised and issued, the
grant date fair value is transferred from the share based payment reserve to Ordinary shares. When options are vested but not
exercised by the expiry date, the grant date fair value is transferred from the share based payment reserve to Retained Losses.
Where performance rights lapse, the amortised fair value is transferred from the share based payments reserve to retained losses.
Dividends
The Group has not paid or declared any dividends during the period (2022: nil). Franking credits available for subsequent financial
years amount to $653,889 (2022: $653,889).
18.
COMMITMENTS AND CONTINGENCIES
Contingencies
The Group has potential exposure to guarantees it has issued to third parties in relation to the performance and obligation of
controlled entities with respect to property lease rentals and customer contractual obligations amounting to $1,786,068 (30 June
2022: $1,158,890).
Key management personnel
Refer to the remuneration report contained in the Directors’ Report for details of the remuneration paid or payable to each
member of the Group’s key management personnel (KMP) for the year ended 30 June 2023.
The totals of remuneration paid to KMP of the Company and the Group during the year are as follows:
The parent entity within the Group is Envirosuite Limited.
Country of
Incorporation
30 June 2023
30 June 2022
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Share based payments
Total KMP compensation
Parent entity
Subsidiaries
Entity Name
Envirosuite Operations Pty Ltd
Envirosuite Holdings Pty Ltd
Envirosuite Corp
Envirosuite Europe Sociedad Limitada
Envirosuite Canada Inc.
Envirosuite Chile SpA
Envirosuite Colombia S.A.S.(1)
Envirosuite Holdings No 2 Pty Ltd
Envirosuite Australia No 2 Pty Ltd
EMS Bruel & Kjaer Pty Ltd
Envirosuite Inc
EMS Bruel & Kjaer Iberica S.A.
Envirosuite Denmark Aps
Envirosuite BV
Envirosuite UK Ltd
Envirosuite Korea Ltd
Envirosuite Taiwan Ltd
AqMB Pty Ltd. (2)
AqMB Holdings Pty Ltd. (2)
As Maybe Max Pty Ltd. (2)
Beijing Envirosuite Environmental Science & Technology(1)
Hengli Ruiyan Environmental Engineering Co. Ltd(1)
Envirosuite Brasil Comercializacao De Equioamentos Ltda.
Australia
Australia
USA
Spain
Canada
Chile
Colombia
China
China
Brazil
Australia
Australia
Australia
USA
Spain
Denmark
Netherlands
United Kingdom
South Korea
Taiwan
Australia
Australia
Australia
2023
$’000
1,397
66
-
398
1,861
2022
$’000
1,470
57
-
1,076
2,603
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
-
-
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
(1)
These subsidiaries have a financial year-end of 31 December as required by local regulations. The Group has received an
exemption from ASIC from aligning the financial year end of these subsidiaries with that of the Envirosuite Limited, being
(2)
AqMB Pty Ltd, AqMB Holdings Pty Ltd and As Maybe Max Pty Ltd were deregistered by the Group during the financial
30 June.
year.
Transactions with other related parties
There were no other transactions with related parties during the financial year.
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
81
Envirosuite Annual Report 2023
19.
RELATED PARTY TRANSACTIONS
Key management personnel
Refer to the remuneration report contained in the Directors’ Report for details of the remuneration paid or payable to each
member of the Group’s key management personnel (KMP) for the year ended 30 June 2023.
The totals of remuneration paid to KMP of the Company and the Group during the year are as follows:
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Share based payments
Total KMP compensation
Parent entity
The parent entity within the Group is Envirosuite Limited.
Subsidiaries
Entity Name
Envirosuite Operations Pty Ltd
Envirosuite Holdings Pty Ltd
Envirosuite Corp
Envirosuite Europe Sociedad Limitada
Envirosuite Canada Inc.
Envirosuite Chile SpA
Envirosuite Colombia S.A.S.(1)
Beijing Envirosuite Environmental Science & Technology(1)
Hengli Ruiyan Environmental Engineering Co. Ltd(1)
Envirosuite Brasil Comercializacao De Equioamentos Ltda.
Envirosuite Holdings No 2 Pty Ltd
Envirosuite Australia No 2 Pty Ltd
EMS Bruel & Kjaer Pty Ltd
Envirosuite Inc
EMS Bruel & Kjaer Iberica S.A.
Envirosuite Denmark Aps
Envirosuite BV
Envirosuite UK Ltd
Envirosuite Korea Ltd
Envirosuite Taiwan Ltd
AqMB Pty Ltd. (2)
AqMB Holdings Pty Ltd. (2)
As Maybe Max Pty Ltd. (2)
2023
$’000
1,397
66
-
398
1,861
2022
$’000
1,470
57
-
1,076
2,603
Country of
Incorporation
Australia
Australia
30 June 2023
%
100
100
30 June 2022
%
100
100
USA
Spain
Canada
Chile
Colombia
China
China
Brazil
Australia
Australia
Australia
USA
Spain
Denmark
Netherlands
United Kingdom
South Korea
Taiwan
Australia
Australia
Australia
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
-
-
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
(1)
(2)
These subsidiaries have a financial year-end of 31 December as required by local regulations. The Group has received an
exemption from ASIC from aligning the financial year end of these subsidiaries with that of the Envirosuite Limited, being
30 June.
AqMB Pty Ltd, AqMB Holdings Pty Ltd and As Maybe Max Pty Ltd were deregistered by the Group during the financial
year.
Transactions with other related parties
There were no other transactions with related parties during the financial year.
The accompanying notes form part of these financial statements.
82
Envirosuite Annual Report 2023
20.
CASH FLOW STATEMENT RECONCILIATION
21.
SHARE BASED PAYMENTS
Reconciliation of net profit / (loss) after tax to net cash flow from operations
Loss after tax
Add back: Depreciation and amortisation
Add back: Foreign exchange (gain) / loss
Add back: Non-cash share based payments
Sub-total
Changes in operating assets and liabilities
(Increase)/ decrease in trade receivables
(Increase)/ decrease in inventories
(Increase) in other assets
(Increase)/ decrease in deferred tax
Increase in trade and other payables
Increase in other liabilities
Increase in employee benefit provisions
Net cash outflow from operating activities
2023
$’000
(10,278)
9,435
260
743
160
1,486
(1,581)
(812)
(941)
1,349
-
1,085
746
2022
$’000
(13,195)
8,157
(249)
1,477
(3,810)
(893)
119
(2,735)
53
1,900
1,526
652
(3,188)
Cash flow from operating activities excludes cash paid to suppliers and employees that are capitalised as internally developed
software within intangible assets. These cash flows are included as cash paid for intangible assets.
The Group issued options and performance rights to employees and directors as compensation for services provided.
Under the Envirosuite Limited Employee Share Plan, shares issued to employees for no cash consideration vest immediately on
grant date. On this date, the market value of the shares issued is recognised as an employee benefits expense with a
Employee share plan
corresponding increase in equity.
Performance rights
Under the Envirosuite Performance Rights Plan, Envirosuite issues performance rights to employees, (usually at senior levels
within the company), that convert to ordinary fully paid shares, upon the achievement of certain vesting conditions. Offers made
to staff under the Plan are designed to incentivise senior, specialist and key employees, to deliver long term returns for
shareholders. Participation in the Plan is at the Board's discretion and at intervals determined by the Board, and no individual staff
member has the right to receive any guaranteed benefits.
Vesting conditions/milestones are specified at the time of grant, with the purpose of motivating certain staff behaviours including:
retention, share price performance and the achievement of key company goals. The Board may impose both conditions on
dealings in the performance rights for a prescribed time, or any forfeiture conditions, and any such conditions are to be notified
to staff in their invitation to participate in the Plan. The Board also may waive in whole, or in part, any of the conditions applicable
to a grant of performance rights.
Participants in the Plan only become eligible for the performance rights to convert to ordinary shares upon achievement of the
relevant milestone/s. Where a staff member ceases their employment with the company ahead of achieving the relevant
milestone/s, their entitlement is forfeited. Performance rights may only convert to ordinary fully paid shares and are not convertible
to cash.
The Board is entitled to suspend the operation of the Plan and may at any time cancel the Plan, on the condition that the
suspension or cancellation of the Plan does not prejudice the existing rights of Participants.
There were 6,073,913 performance rights issued during the year (2022: 17,411,675).
Changes in liabilities arising from financing activities
Lease Liability
Balance at 1 July
Repayment of lease liabilities
Finance charges
Acquisition of leases
Termination of leases
Exercise of early termination option
Effects of foreign exchange
Balance at 30 June
2023
$’000
2,251
(1,292)
243
2,549
(182)
-
16
3,585
2022
$’000
4,002
(1,878)
231
459
(62)
(534)
33
2,251
Performance rights outstanding at 30 June 2021
Performance rights outstanding at 30 June 2022
Issued
Exercised
Forfeited/Lapsed
Issued
Exercised
Forfeited/Lapsed
Performance rights outstanding at 30 June 2023
Employee share option plan and scheme
Number of Performance
Rights
12,488,556
17,411,675
(6,505,223)
(5,463,333)
17,931,675
6,073,913
(5,869,660)
(2,175,000)
15,960,928
The establishment of the Employee Share Option Plan was approved by the Board prior to the IPO of Envirosuite Limited (formerly:
Pacific Environment Limited). The plan is designed to provide long term incentives for employees and directors to deliver long
term shareholder returns. Participation in the plan is at the Board's discretion and no individual has a contractual right to participate
in the plan or to receive any guaranteed benefits.
The amount of options that will vest depends on the individual contracts agreed by Envirosuite Limited. Once vested, the options
remain exercisable for a period of up to seven years after the grant date. When exercisable, each option is convertible into one
ordinary share on the day of the next Board meeting or within 15 business days, whichever is earlier. The exercise price of options
is pre-determined in the individual option agreements.
Options were issued to employees under the Employee Share Option Plan. Under this scheme, options granted vest as specified
under the individual option. The options are not forfeitable but lapse on the date specified in the individual option agreement. If
an employee ceases employment the options vest immediately and the employee has seven days to exercise the option at the
current market price or the original exercise price, whichever is greater. If the employee does not exercise the options, the options
lapse.
Options were also granted to non-employees during the period that have similar terms to those under the Employee Share Option
Plan. Set out on the following pages are summaries of options granted.
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
83
Envirosuite Annual Report 2023
21.
SHARE BASED PAYMENTS
The Group issued options and performance rights to employees and directors as compensation for services provided.
Employee share plan
Under the Envirosuite Limited Employee Share Plan, shares issued to employees for no cash consideration vest immediately on
grant date. On this date, the market value of the shares issued is recognised as an employee benefits expense with a
corresponding increase in equity.
Performance rights
Under the Envirosuite Performance Rights Plan, Envirosuite issues performance rights to employees, (usually at senior levels
within the company), that convert to ordinary fully paid shares, upon the achievement of certain vesting conditions. Offers made
to staff under the Plan are designed to incentivise senior, specialist and key employees, to deliver long term returns for
shareholders. Participation in the Plan is at the Board's discretion and at intervals determined by the Board, and no individual staff
member has the right to receive any guaranteed benefits.
Vesting conditions/milestones are specified at the time of grant, with the purpose of motivating certain staff behaviours including:
retention, share price performance and the achievement of key company goals. The Board may impose both conditions on
dealings in the performance rights for a prescribed time, or any forfeiture conditions, and any such conditions are to be notified
to staff in their invitation to participate in the Plan. The Board also may waive in whole, or in part, any of the conditions applicable
to a grant of performance rights.
Participants in the Plan only become eligible for the performance rights to convert to ordinary shares upon achievement of the
relevant milestone/s. Where a staff member ceases their employment with the company ahead of achieving the relevant
milestone/s, their entitlement is forfeited. Performance rights may only convert to ordinary fully paid shares and are not convertible
to cash.
The Board is entitled to suspend the operation of the Plan and may at any time cancel the Plan, on the condition that the
suspension or cancellation of the Plan does not prejudice the existing rights of Participants.
There were 6,073,913 performance rights issued during the year (2022: 17,411,675).
Performance rights outstanding at 30 June 2021
Issued
Exercised
Forfeited/Lapsed
Performance rights outstanding at 30 June 2022
Issued
Exercised
Forfeited/Lapsed
Performance rights outstanding at 30 June 2023
Employee share option plan and scheme
Number of Performance
Rights
12,488,556
17,411,675
(6,505,223)
(5,463,333)
17,931,675
6,073,913
(5,869,660)
(2,175,000)
15,960,928
The establishment of the Employee Share Option Plan was approved by the Board prior to the IPO of Envirosuite Limited (formerly:
Pacific Environment Limited). The plan is designed to provide long term incentives for employees and directors to deliver long
term shareholder returns. Participation in the plan is at the Board's discretion and no individual has a contractual right to participate
in the plan or to receive any guaranteed benefits.
The amount of options that will vest depends on the individual contracts agreed by Envirosuite Limited. Once vested, the options
remain exercisable for a period of up to seven years after the grant date. When exercisable, each option is convertible into one
ordinary share on the day of the next Board meeting or within 15 business days, whichever is earlier. The exercise price of options
is pre-determined in the individual option agreements.
Options were issued to employees under the Employee Share Option Plan. Under this scheme, options granted vest as specified
under the individual option. The options are not forfeitable but lapse on the date specified in the individual option agreement. If
an employee ceases employment the options vest immediately and the employee has seven days to exercise the option at the
current market price or the original exercise price, whichever is greater. If the employee does not exercise the options, the options
lapse.
Options were also granted to non-employees during the period that have similar terms to those under the Employee Share Option
Plan. Set out on the following pages are summaries of options granted.
The accompanying notes form part of these financial statements.
84
Envirosuite Annual Report 2023
24.
PARENT ENTITY FINANCIAL INFORMATION
Parent entity financial statements
The following information has been extracted from the books and records of the parent entity and has been prepared in
accordance with Australian Accounting Standards. Non-current assets includes investment in subsidiaries which are accounted
21. SHARE BASED PAYMENTS (Continued)
Options outstanding at 30 June 2021
Exercised
Forfeited/Lapsed
Expired
Options outstanding at 30 June 2022
Granted
Expired
Options outstanding at 30 June 2023
Number of options
159,500,000
(2,000,000)
(26,250,000)
(22,500,000)
108,750,000
2,000,000
(98,750,000)
12,000,000
Weighted average
exercise price
0.23
0.10
0.15
0.40
0.22
0.40
0.40
0.40
At 30 June 2023, there were 12,000,000 options (2022: 106,250,000) that were exercisable at a weighted average price of $0.23
per share (2022: $0.22 per share). The weighted average remaining life of the options outstanding is 1.92 years (2022: 0.64
years).
22.
EARNINGS PER SHARE
In calculating earnings per share, there were no adjustments made to net loss after tax or comprehensive loss for the period.
Weighted average number of shares used in denominator
Basic earnings per share
Diluted earnings per share
2023
number
1,261,606,466
1,261,606,466
2022
number
1,182,343,365
1,182,343,365
for at cost value less impairment.
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Reserves
Retained losses
Total Equity
There are 12,000,000 share options (2022: 108,750,000) issued and 15,960,928 (2022: 17,931,675) of performance rights that
are not included in diluted earnings per share as these would have an antidilutive effect on earnings per share. These potential
ordinary shares are antidilutive as their conversion to ordinary shares would decrease loss per share. If these share options were
included in the calculation of diluted earnings per share, the weighted average number of shares used in the denominator would
be 1,236,340,861 (2022: 1,234,512,144).
Income Statement and Statement of Comprehensive Income
Profit / (loss) after tax
Total comprehensive profit / (loss)
23.
SUBSEQUENT EVENTS
The directors are not aware of any matters or circumstances have arisen since the end of the financial year that significantly
affected, or could significantly affect, the operations of the consolidated Group, the results of those operations, or the state of
affairs of the consolidated Group in future financial years.
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity and some of its subsidiaries are party to a deed of cross guarantee under which each company guarantees the
debts of the others. No deficiencies of assets exist in any of these subsidiaries.
2023
$’000
158
164,883
165,041
617
1,457
2,074
181,352
2,075
(20,460)
162,967
2023
$’000
(2,817)
(2,817)
2022
$’000
1,809
164,708
166,517
425
883
1,308
180,597
11,705
(27,093)
165,209
2022
$’000
(3,840)
(3,840)
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
85
Envirosuite Annual Report 2023
159,500,000
(2,000,000)
(26,250,000)
(22,500,000)
108,750,000
2,000,000
(98,750,000)
12,000,000
0.23
0.10
0.15
0.40
0.22
0.40
0.40
Options outstanding at 30 June 2021
Exercised
Forfeited/Lapsed
Expired
Options outstanding at 30 June 2022
Options outstanding at 30 June 2023
Granted
Expired
years).
22.
EARNINGS PER SHARE
At 30 June 2023, there were 12,000,000 options (2022: 106,250,000) that were exercisable at a weighted average price of $0.23
per share (2022: $0.22 per share). The weighted average remaining life of the options outstanding is 1.92 years (2022: 0.64
In calculating earnings per share, there were no adjustments made to net loss after tax or comprehensive loss for the period.
Weighted average number of shares used in denominator
Basic earnings per share
Diluted earnings per share
2023
number
2022
number
1,261,606,466
1,261,606,466
1,182,343,365
1,182,343,365
21. SHARE BASED PAYMENTS (Continued)
Number of options
Weighted average
exercise price
24.
PARENT ENTITY FINANCIAL INFORMATION
Parent entity financial statements
The following information has been extracted from the books and records of the parent entity and has been prepared in
accordance with Australian Accounting Standards. Non-current assets includes investment in subsidiaries which are accounted
for at cost value less impairment.
0.40
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Reserves
Retained losses
Total Equity
There are 12,000,000 share options (2022: 108,750,000) issued and 15,960,928 (2022: 17,931,675) of performance rights that
are not included in diluted earnings per share as these would have an antidilutive effect on earnings per share. These potential
ordinary shares are antidilutive as their conversion to ordinary shares would decrease loss per share. If these share options were
included in the calculation of diluted earnings per share, the weighted average number of shares used in the denominator would
be 1,236,340,861 (2022: 1,234,512,144).
Income Statement and Statement of Comprehensive Income
Profit / (loss) after tax
Total comprehensive profit / (loss)
2023
$’000
158
164,883
165,041
617
1,457
2,074
181,352
2,075
(20,460)
162,967
2023
$’000
(2,817)
(2,817)
2022
$’000
1,809
164,708
166,517
425
883
1,308
180,597
11,705
(27,093)
165,209
2022
$’000
(3,840)
(3,840)
23.
SUBSEQUENT EVENTS
The directors are not aware of any matters or circumstances have arisen since the end of the financial year that significantly
affected, or could significantly affect, the operations of the consolidated Group, the results of those operations, or the state of
affairs of the consolidated Group in future financial years.
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity and some of its subsidiaries are party to a deed of cross guarantee under which each company guarantees the
debts of the others. No deficiencies of assets exist in any of these subsidiaries.
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
86
Envirosuite Annual Report 2023
DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Envirosuite Limited, the directors of the Company declare that:
(a) The financial statements and notes set out on pages 54 to 86 are in accordance with the Corporations Act 2001, and:
(i) comply with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
(ii) give a true and fair view of the financial position at 30 June 2023 and of the performance
for the year ended on that date of the Consolidated Group; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable.
The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A
of the Corporations Act 2001
David Johnstone, Chair
22 August 2023
The accompanying notes form part of these financial statements.
87
Envirosuite Annual Report 2023
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ENVIROSUITE LIMITED
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ENVIROSUITE LIMITED
Report on the Financial Report
Opinion
Report on the Financial Report
We have audited the accompanying financial report of Envirosuite Limited (the company), which comprises
the consolidated statement of financial position as at 30 June 2023, the consolidated income statement and
Opinion
statement of comprehensive income, the consolidated statement of changes in equity and the consolidated
We have audited the accompanying financial report of Envirosuite Limited (the company), which comprises
statement of cash flows for the year then ended, notes comprising a summary of significant accounting
the consolidated statement of financial position as at 30 June 2023, the consolidated income statement and
policies and other explanatory information, and the directors’ declaration of the company and the
statement of comprehensive income, the consolidated statement of changes in equity and the consolidated
consolidated entity comprising the company and the entities it controlled at the year’s end or from time to
statement of cash flows for the year then ended, notes comprising a summary of significant accounting
time during the financial year.
policies and other explanatory information, and the directors’ declaration of the company and the
consolidated entity comprising the company and the entities it controlled at the year’s end or from time to
In our opinion the financial report of Envirosuite Limited is in accordance with the Corporations Act 2001,
time during the financial year.
including:
In our opinion the financial report of Envirosuite Limited is in accordance with the Corporations Act 2001,
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023
a)
including:
and of its performance for the year ended on that date; and
a)
b)
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
and of its performance for the year ended on that date; and
Basis for Opinion
b)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
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
Basis for Opinion
of our report.
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
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
of our report.
opinion.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
Independence
opinion.
We are independent of the consolidated entity in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Independence
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
We are independent of the consolidated entity in accordance with the auditor independence requirements of
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
our other ethical responsibilities in accordance with the Code.
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
Key Audit Matters
our other ethical responsibilities in accordance with the Code.
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
Key Audit Matters
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
Key audit matters are those matters that, in our professional judgement, were of most significance in our
opinion on these matters. For the matter below, our description of how our audit addressed the matter is
audit of the financial report of the current period. These matters were addressed in the context of our audit
provided in that context.
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. For the matter below, our description of how our audit addressed the matter is
provided in that context.
88
Envirosuite Annual Report 2023
Carrying amount of intangible assets
Why significant
How our audit addressed the key audit matter
As at 30 June 2023 the carrying value of
intangible assets is $107,246,000 (2022:
$108,652,000), as disclosed in Note 13.
In assessing this key audit matter, we involved
senior audit team members who understand the
industry.
The consolidated entity’s accounting policy in
respect of intangible assets is outlined in Note
1(n), and for goodwill in Note 1(c).
The carrying amount of intangible assets is a key
audit matter due to:
•
•
the significance of the balance (being
74% of total assets); and
in
the
evaluating management’s assessment of
impairment.
judgement applied
level of
As outlined in Notes 1 and 13, management
assessed the carrying amount of intangible assets
through impairment testing utilising a fair value
less costs of disposal model in which significant
judgements are applied in determining key
assumptions. Specifically, management prepared
a discounted cash flow model utilising the income
approach.
The key assumptions include projected revenue
growth rates, discount and terminal growth rates.
The judgements made in determining the
underlying assumptions in the model have a
significant impact on the carrying amount of
intangible assets, and accordingly the amount of
any impairment charge, to be recorded in the
current financial year. No impairment charge was
made during the year.
89
Our audit procedures included, amongst others:
•
•
•
•
•
•
•
to
evaluating management’s methodology for
determining
the carrying amount of
intangible assets by comparing the fair
value less costs of disposal model with
generally accepted valuation methodology
and accounting standard requirements;
conducting sensitivity analysis on key
the projected
assumptions such as
revenue growth rates,
discount and
terminal growth rates, within reasonable
foreseeable ranges, and comparing the
the
calculated recoverable amount
carrying value of each cash-generating
unit (‘CGU’);
challenging the key assumptions used in
flow
management’s discounted cash
model by:
- assessing projected revenue growth
rates set by management in comparison to
historical results and future approved
budgets
- evaluating the discount and terminal
growth rates set by management in
comparison to market and industry
information available
- assessing the impact of the COVID-19
pandemic on all key assumptions
assessing
changes in model and key assumptions;
assessing the appropriateness of the CGU
designations applied;
reviewing
including
expert,
necessary
skill,
independence; and
assessing
related disclosures in Note 13.
the work of management’s
competence,
and
the appropriateness of any
the appropriateness of
objectivity
their
the
Envirosuite Annual Report 2023
Other Information
The Directors are responsible for the other information. The other information comprises the information
included in the consolidated entity’s Annual Report, but does not include the financial report and our
auditor’s report thereon. Our opinion on the financial report does not cover the other information and 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.
Directors’ Responsibilities for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the Directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1,
the Directors also state, in accordance with Australian Accounting Standard AASB 101 Presentation of
Financial Statements, that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability
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 consolidated entity 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 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 aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the consolidated entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the consolidated entity’s ability to continue as a going
90
Envirosuite Annual Report 2023
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the consolidated entity to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the consolidated entity to express an opinion on the group financial report. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2023. 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.
Opinion
In our opinion, the Remuneration Report of Envirosuite Limited for the year ended 30 June 2023 complies
with section 300A of the Corporations Act 2001.
PKF BRISBANE AUDIT
TIM FOLLETT
PARTNER
BRISBANE
22 AUGUST 2023
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Envirosuite Annual Report 2023
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92
Envirosuite Annual Report 2023 Name
National Nominees Limited
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
UBS NOMINEES PTY LTD
CITICORP NOMINEES PTY LIMITED
RUBI HOLDINGS PTY LTD
BNP PARIBAS NOMS PTY LTD
MR ROBIN ORMEROD & MS KRISTIN ZEISE
THE ADAMS MCLEAN SUPERANNUATION FUND PTY LTD
COALWELL PTY LIMITED
BUNGEELTAP PTY LTD
TOM HADLEY ENTERPRISES PTY LTD
BSD PTY LTD
MUTUAL TRUST PTY LTD
THIRTY-FIFTH CELEBRATION PTY LTD
SPECTRIS GROUP HOLDINGS LTD
HENDO FAMILY SUPERANNUATION PTY LTD
MISS MENGJIAO ZHAO
FORDHOLM CONSULTANTS PTY LTD
MR PETER JAMES WHITE & MRS EVA MARIA WHITE
Envirosuite Limited unlisted options over ordinary shares issues
Performance rights over ordinary shares issued
10.50%
8.15%
5.02%
3.99%
3.18%
2.48%
1.97%
1.87%
1.67%
1.64%
1.20%
1.19%
1.11%
1.08%
0.88%
0.79%
0.79%
0.69%
0.68%
0.55%
132,489,078
102,770,247
63,283,353
50,344,791
40,166,989
31,250,000
24,816,837
23,600,000
21,014,705
20,700,000
15,127,217
15,000,000
14,000,000
13,612,019
11,042,286
10,000,000
10,000,000
8,648,889
8,615,955
6,937,681
Number held
12,000,000
15,960,928
623,420,047
49.43%
SHAREHOLDER INFORMATION
1. SHAREHOLDING (continued)
The shareholder information set out below was applicable at 14 August 2023.
Twenty largest quoted equity security holders
1. SHAREHOLDING
Distribution of equity securities
The names of the twenty largest holders of quoted equity securities are listed below:
Analysis of numbers of equity security holders by size of holding:
Number held
Percentage
Size of holding
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Shares
106
733
732
2,303
1,119
4,993
Options
-
-
-
-
2
2
Performance
Rights
-
-
-
2
19
21
The number of shareholdings held in less than marketable parcels was 95 with total shares of 3,462.
Substantial holders
Substantial holders in the Company are set out below:
Ordinary shares
National Nominees Limited
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
Number held
132,489,078
102,770,247
Percentage
10.50%
8.15%
Unquoted equity securities
Voting Rights
The voting rights attaching to each class of equity securities are set out below
Ordinary shares
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.
Options
Options carry the standard voting rights available to ordinary shareholders when converted to ordinary shares.
Performance rights
Performance rights carry the standard voting rights available to ordinary shareholders when converted to ordinary shares.
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
93
Envirosuite Annual Report 2023
1. SHAREHOLDING (continued)
Twenty largest quoted equity security holders
The names of the twenty largest holders of quoted equity securities are listed below:
Name
National Nominees Limited
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
UBS NOMINEES PTY LTD
CITICORP NOMINEES PTY LIMITED
RUBI HOLDINGS PTY LTD
BNP PARIBAS NOMS PTY LTD
MR ROBIN ORMEROD & MS KRISTIN ZEISE
THE ADAMS MCLEAN SUPERANNUATION FUND PTY LTD
COALWELL PTY LIMITED
BUNGEELTAP PTY LTD
TOM HADLEY ENTERPRISES PTY LTD
BSD PTY LTD
MUTUAL TRUST PTY LTD
THIRTY-FIFTH CELEBRATION PTY LTD
SPECTRIS GROUP HOLDINGS LTD
HENDO FAMILY SUPERANNUATION PTY LTD
MISS MENGJIAO ZHAO
FORDHOLM CONSULTANTS PTY LTD
MR PETER JAMES WHITE & MRS EVA MARIA WHITE
Number held
132,489,078
102,770,247
63,283,353
50,344,791
40,166,989
31,250,000
24,816,837
23,600,000
21,014,705
20,700,000
15,127,217
15,000,000
14,000,000
13,612,019
11,042,286
10,000,000
10,000,000
8,648,889
8,615,955
6,937,681
Percentage
10.50%
8.15%
5.02%
3.99%
3.18%
2.48%
1.97%
1.87%
1.67%
1.64%
1.20%
1.19%
1.11%
1.08%
0.88%
0.79%
0.79%
0.69%
0.68%
0.55%
623,420,047
49.43%
Unquoted equity securities
Envirosuite Limited unlisted options over ordinary shares issues
Performance rights over ordinary shares issued
Number held
12,000,000
15,960,928
The accompanying notes form part of these financial statements.
94
Envirosuite Annual Report 2023
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