A N N U A L R E P O R T
Helloworld Travel Limited and Controlled Entities
Annual Report for the year ended 30 June 2021
2021 CONTENTS
S E C T I O N O N E
Corporate Information
Annual Report 2021 Glossary
Helloworld Travel Limited - Our Brands
Report from our Chairman
Report from our CEO and Managing Director
Year in Review
Directors' Report
Auditor’s Independence Declaration
S E C T I O N T W O
Corporate Governance Statement
Consolidated Statement of Profit or
Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
2
3
4
6
8
10
22
55
56
64
65
66
67
68
143
144
150
2
C O R P O R AT E I N F O R M AT I O N
D I R E C T O R S
Garry Hounsell (Chairman)
Andrew Burnes AO (Chief Executive Officer)
Cinzia Burnes
Mike Ferraro
Andrew Finch
G R O U P C O M PA N Y S E C R E TA R Y
David Hall
R E G I S T E R E D A N D P R I N C I PA L O F F I C E
179 Normanby Road
South Melbourne VIC 3205
Telephone: +61 3 9867 9600
A U D I T O R
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000
S T O C K E XC H A N G E
Australian Securities Exchange Limited
Level 4
20 Bridge Street
Sydney NSW 2000
A S X C O D E
ASX code: HLO
S H A R E R E G I S T R Y
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney NSW 2000
hello@automic.com.au
1300 288 664 (within Australia) or
+61 2 9698 5414 (outside Australia)
W E B S I T E
www.helloworldlimited.com.au
Helloworld Travel Limited Annual Report 2021
A N N U A L R E P O RT 2 0 2 1 G L O S S A RY
The following terms have been used through this Annual Report:
AGM
AOT
ASIC
ASX
CEO
CFO
Annual General Meeting
AOT Group Pty Limited and its controlled entities
Australian Securities & Investments Commission
Australian Securities Exchange
Chief Executive Officer
Chief Financial Officer
Company
The parent entity, Helloworld Travel Limited
EBITDA
EPS
FAR
FY20
FY21
FY22
Group
Earnings before interest expense, tax, depreciation and
amortisation
Earnings per share
Fixed Annual Remuneration
Financial Year ended 30 June 2020
Financial Year ended 30 June 2021
Financial Year ended 30 June 2022
The Helloworld Travel Group, comprising Helloworld
Travel Limited and its controlled entities
3
Helloworld Travel
Helloworld Travel Limited
HLO
KMP
LTIP
MTA
PCP
Helloworld Travel Limited
Key Management Personnel
Long Term Incentive Plan
Mobile Travel Holdings Pty Limited and its controlled
entities
Prior Comparative Period
Qantas
Qantas Airways Limited
QBT
STIP
TTV
VFR
VH
QBT Pty Limited
Short Term Incentive Plan
Total Transaction Value
Visiting Friends and Relatives
Viva Holidays
helloworldlimited.com.au
H E L L O W O R L D T R AV E L L I M I T E D - O U R B R A N D S
R E TA I L
W H O L E SA L E
Travel agencies who adopt full Helloworld branding
and reinforce the brand message in the marketplace.
One of the largest wholesale brands in Australia with over
40 years’ experience, offering an extensive range of products
covering most destinations throughout the world.
Travel agencies who carry the “Member of Helloworld Travel”
brand and value proposition while maintaining their own
brand presence in market.
Established in 1982, Sunlover Holidays are the
Australian holiday specialists offering a wide range
of travel products and experiences for all budgets.
Australia’s largest network of premium
independently owned corporate travel agents
and travel management companies.
New Zealand’s longest serving travel wholesaler
offering its travel agency distribution a diverse and
extensive range of travel products around the globe.
4
Independent buying network affiliated to
Helloworld Group, able to leverage the strength of our
supplier relationships and maintain their independence.
One of the largest specialist travel wholesalers in Australia,
renowned for offering exclusive travel deals across
16 international destinations.
HOHOLLIIDDAAYSYS
Agencies with loyal high-end clients managing their
own brand and marketing while leveraging the buying
benefits of the Helloworld Travel Group.
Cruiseco is a specialist cruise package wholesaler that
provides access to over 40,000 products from 50 cruise lines,
and creates exclusive fly/cruise products and specialised
charters to help members grow their cruise business.
Australia’s leading team of mobile travel agents for leisure
and corporate travel, offering agents independence
and access to group buying power.
One of the largest cruise wholesalers in Australia,
offering travel agents access to a wide
range of cruise deals and packages.
With a team of over 100 mobile travel specialists,
the Travel Brokers are one of New Zealand ‘s
leading Travel Broker networks.
ReadyRooms offers travel agents the ability to search,
compare and book an extensive range of worldwide
accommodation and activities online.
Founded in 1967 by former All Blacks fullback,
Mick Williment, Williment Travel is New Zealand’s
travel sports and events tour specialists.
A new brand for discerning clients focusing
on high-end, small group touring in Australia
and international destinations.
by
Helloworld Travel Limited Annual Report 2021
C O R P O R AT E
D M C
With offices around Australia, QBT provides extensive experience and
expertise in delivering large and complex global travel programs
to both Federal and State Governments and a diverse range
of mid to large sized Corporates.
A leading inbound tour operator in Australia, offering
an excellent booking platform and staff to service
both the FIT and Group markets from UK, Europe,
USA and other long-haul Western markets.
APX provides end-to-end travel management services
for New Zealand and global organisations, from small
businesses to corporate and government departments.
A leading inbound tour operator with offices in Australia,
New Zealand and Fiji. ATS Pacific provides specialty inbound
services in all three destinations for FIT and Groups. Markets
include UK, Europe, USA, Western long haul and Japan.
Australia’s largest network of premium
independently owned corporate travel
agents and travel management companies.
The leading Australian inbound tour operator
specializing in Asia, with offices in Shanghai,
Singapore, Hong Kong and Jakarta.
The leading travel management specialist servicing the
entertainment, film, arts, fashion, corporate and sporting industries.
Show Group offers bespoke travel tailored to meet specific
customer requirements, because every client is different.
A leading inbound tour operator in
New Zealand, offering an excellent booking
platform and staff to service both the FIT
and Group markets from UK, Europe, USA
and other long-haul Western markets.
O N L I N E
5
Appointed by the Australian Government, and many corporate
and other Government customers, AOTHotels provides an
outstanding accommodation booking management service
with the best inventory available Australia-wide.
Last minute accommodation website providing
consumers with access to over 120,000
accommodation options around the world.
TravelEdge offers a full suite of services including corporate
travel, in-house travel management solutions, academic services,
events and experiences. This diverse range of brands allows the
business to tailor a solution that is perfect for every client.
An online travel agency providing consumers
with access to discounted domestic
and international airline tickets.
C O N S O L I DAT I O N
TO U R O P E R AT I N G
Air Tickets is the travel industry’s market leading airfare distribution
and ticketing services consolidator, with a 24/7 web-based portal
to real-time airfares allowing agents to shop, book and ticket
in one system.
Tourist Transport Fiji operates a fleet of 65 vehicles
providing transfer services throughout Fiji with sightseeing
tours and adventure packages under the Great Sights and
Feejee Experience brands.
World-leading technology provides travel agents with a ticket
processing system subject to rigorous real-time validation
and a queuing system the envy of global consolidators.
Show Freight are industry leaders in tour trucking and equipment
movements for local and international touring artists, as well as
handling freight and courier movements for the film, sporting, arts
and corporate markets.
helloworldlimited.com.au
R E P O RT F R O M O U R C H A I R M A N
WHOEVER IMAGINED THIS WOULD HAPPEN
6
The Global Travel Industry has gone through the greatest upheaval
in its history with the onset of COVID-19 in March 2020. Since that
time, the Company has focused on managing the cancellation and
refund of hundreds of millions of dollars’ worth of travel and on
re-sizing the business to keep losses to a minimum while maintaining
core customer service levels across our operating divisions. This
will end and borders will re-open and that can’t come soon enough.
Helloworld Travel Limited Annual Report 2021
As Chairman of Helloworld Travel since 2016 it has
significantly reduced our level of activity and the
been a pleasure to be part of a history of growth and
amount of work available.
profitability in our business. Led by CEO Andrew Burnes
and his Management team, Helloworld has gone from
strength to strength and in the 2020 financial year was
on track to achieve total transaction values in excess
of seven billion dollars and EBITDA of between $80
– 85 million. This was derailed as COVID-19 unfolded
however the company was still profitable in FY20
despite the onset of COVID-19 in March of last year.
FY21 turned into an incredibly challenging period for
the business and the industry at large, with TTV falling
as low as $50 million for the month of August 2020.
This improved in the lead up to Christmas but dropped
away again in January and February before picking up
significantly in the June quarter.
At the end of the day to have a normalised EBITDA loss
of $14.1 million across the twelve months has been an
outstanding achievement. Redundancy, restructuring
and other one off costs of $11.7 million have added to
that loss on a one-off basis as the company reduced
personnel by nearly 1,300 people across our business
operations in Australia, New Zealand, Fiji and our other
remaining overseas offices.
As of 30 June 2021 Helloworld, retained 885 personnel
representing 726 FTE with 595 personnel in Australia,
88 in New Zealand and 24 in Fiji and 19 in other
locations around the world. I want to thank each and
every one of the people who are still at Helloworld
and doing a fantastic job. Can I also thank all of the
many great people who are no longer with us through
no fault of their own but simply due to the closure of
international borders and domestic lockdowns which
Looking ahead, the continued rollout of vaccinations
both in Australia, New Zealand and globally is critical
to the reopening of international borders between
Australia, New Zealand and our major leisure and
corporate destinations. It seems clear that our
international borders will remain closed until sometime
in the first half of CY22 and we can’t wait to see the
first plane load of VFR, corporate and leisure travellers
heading out over the Pacific and Indian oceans again.
Finally can I thank the Board for their continued support
and guidance throughout the year.
7
Garry Hounsell
Chairman
Helloworld Travel Limited
Melbourne, 6 September 2021
helloworldlimited.com.au
R E P O RT F R O M O U R C E O A N D M A N AG I N G D I R E C TO R
A YEAR OF EXTRAORDINARY CHALLENGES
8
After thirty-four years in the Travel Industry, I thought I had
experienced most of the ups and downs that could be thrown at
a travel business but nothing comes even remotely close to the
impact of COVID-19.
The Global travel industry has traditionally been an industry of growth, delivering significant economic benefits globally to
those directly and indirectly engaged in it. The total size of the industry globally in 2019 was estimated at US$2.9 trillion. This
shrunk to US$1.5 trillion in 2020 and is forecast to reach US$1.7 trillion in 2021, still a long way short of 2019 levels.
Billions of dollars in bookings are made every day and billions of dollars of products utilised in various subsets including the
airline industry (4.5 billion passengers in 2019), the accommodation industry (6 billion room nights and US$673 billion in sales
in 2019) car hire (US$60 billion in 2019), cruise (30 million passengers, US$150 billion in sales) not to mention hospitality,
entertainment, events, touring and many other products and services.
All of those services are booked by travellers using a range of distribution options and in HLO’s case we were on track in FY20
to sell over $7 billion worth of global travel products and services including $1 billion for travel in Australia & New Zealand and
$6.0 billion around the world.
Helloworld Travel Limited Annual Report 2021
As it turned out, HLO sold A$5.0 billion worth of travel
in FY20 after the global travel industry ground to a halt
through February and March 2020. With our international
borders to the world closing on 20 March 2020, the entire
global travel industry, including the distribution industry and
our own retail, wholesale, inbound, ticketing and corporate
segments were inundated by the mass cancellation world-
wide of over a trillion dollars’ worth of forward bookings.
And most of the people who had their bookings cancelled
wanted a full refund the following week.
In a business set up over many decades to successfully
manage and process the mass sale of travel products
and services, having to ditch long-established and finely
honed procedures and suddenly cancel every international
booking we had across Australia and New Zealand and then
cancel every inbound booking we had from our international
wholesale customers in 73 countries was extremely
challenging.
Our agency network members, with over 1,800 retail outlets
and 700 travel brokers, were suddenly left with very little
income and a massive task to get back the money paid to
suppliers world-wide for various products and services
across the next eighteen months. Despite what were some
very considerable obstacles in the first few months of the
pandemic, I am incredibly proud of the work that everyone
at Helloworld Travel Limited did and of the extraordinary
work that our travel agency members did across Australia
and New Zealand to manage and triage the literally billions
of dollars’ worth of bookings, refunds and cancellations that
had to be taken care of.
In FY21, thanks to the support of our retail and corporate
customers, we turned over $1.08 billion in total transaction
values with revenue and other income of $94.2 million
(including government wage subsidies) and with very tight
cost management across all of our business divisions we
were able to keep our losses to a minimum throughout
the period and achieve a normalised EBITDA loss of
$14.1 million for the 12 months ending 30 June 2021.
With one-off redundancies, restructure costs and other
one offs of just under $12 million and depreciation and
amortisation of $21.2 million, HLO’s nett loss before tax
was $49.5 million.
The fourth quarter was the best trading period we had
throughout the year and showed that with State borders all
open and the New Zealand bubble in place, TTV could reach
circa $150 -170 million a month, which on an annualised
basis would work out to be around $1.8 - $2.0 billion for a full
year. But of course, the critical element to that is “open”.
Australia is on the pathway to achieve a vaccination rate of
between 70 - 80 per cent by end November 2021 and it has
been agreed by National Cabinet based on modelling by the
Doherty Institute that once we reach these levels, the need
for state-wide lockdowns will be substantially reduced.
This needs to be supported by continued TTIQ (test, trace,
isolate, quarantine) measures and those who have been
vaccinated need to be allowed to travel overseas again in
2022 to countries where vaccination rates are similar and
infections under control.
We hope that State borders will be largely re-opened by
Christmas and as stated above, international borders
might begin to open up in the first half of calendar 2022.
In the meantime, we continue to run our business as
tightly as possible while maintaining core service levels
to our corporate, wholesale and retail agency customers
throughout Australia and New Zealand.
Can I extend my thanks to the following:
• The HLO Board, Management team and all our staff, past
and present, who have worked so tirelessly over the last
eighteen months in really trying circumstances;
• HLO’s amazing retail agency network members who have
endured a gruelling period managing the refunds, credits
and re-bookings for their customers;
• Our leisure and corporate customers for their patience
and understanding as we worked through revised refund
procedures, travel credits, cancellations and re-bookings;
• All of HLO’s supplier partners who have worked tirelessly
to turn their businesses upside down and return the billions
already paid to them for future travel;
• The many domestic supplier partners of HLO who have
supported our domestic campaigns along with the State
Tourism Offices, Tourism Australia and Tourism New
Zealand;
• HLO's banker, Westpac for their continued outstanding
support during this challenging period; and
• Australian and New Zealand Governments and Australia’s
State Governments for providing assistance to both
industry in general and via JobKeeper and Wage Subsidy
and to travel agents via the Consumer Travel Support
Package for small to medium sized agencies in Australia
and in New Zealand via the Ministry of Business,
Innovation & Employment (MBIE) scheme.
This pandemic is not over yet and more support is going to
be needed to get this industry to the other side, but it would
not have got this far without the support and assistance
received to date.
Andrew Burnes, AO
Chief Executive Officer and Managing Director
Helloworld Travel Limited
Melbourne, 6 September 2021
helloworldlimited.com.au
9
Y E A R I N R E V I E W
A PASSIONATE TEAM
Helloworld has a wide footprint across Australia, New Zealand and Fiji with operations in every Australian
capital city, in Auckland and Wellington in New Zealand and Nadi in Fiji.
The foundation of most of our business units goes back decades and they now operate with sophisticated
technology systems operated by highly trained consultants and supported by great teams in IT, Systems,
Admin & Finance, Payroll, HR, Product / Contracting, Product Loading, Sales and Marketing, Customer
Service and a range of other services.
With the onset of COVID-19 Helloworld was able to secure a number of contracts to provide COVID-19
related call centre services to both State and Federal government agencies. Without exception, all of
our personnel who found themselves without a role due to the complete closure of international travel
put their hands up and accepted positions in the call centres we operated in Melbourne, Sydney, Perth
and Brisbane and we are extremely grateful to the Victorian government, the NSW government and the
Federal government for contracting the services that we provided and for doing what we all regard was an
outstanding job in training our great team of people and ensuring their safety and well-being through what
were some pretty challenging experiences for them all.
10
That work is still ongoing today and we now have one of the most experienced teams available in this space,
and as the pandemic has ebbed and flowed people have swapped back to their travel roles when demand for
these frontline services has diminished having then stepped back up to the COVID-19 related roles when
infection rates have climbed, travel bookings have diminished and the demand for call centre services has
increased.
At the same time there are many people working at Helloworld today who are in completely different roles
to the ones that they have worked in previously. We have done our best to ensure that any vacancies which
occur in any part of the business are offered, where possible, to existing employees whether they have
experience in that role or not and without exception again everyone who has been asked to take on a new
role has done so willingly and put their best foot forward and we are extremely grateful for the efforts that
they have made.
Helloworld Travel Limited Annual Report 2021
RALLY TOGETHER
Over the last twelve months Helloworld
Travel Limited has had to reengineer many
of its processes to handle the massive
volume of cancellations and refunds and this
has not been helped by airlines switching
off automated Global Distribution System
(GDS) refund processing and going to manual
processing system for every booking through
what is called BSP link.
The continued strain caused by the cutting
off of well-established automated processes
caused enormous volumes of tickets to
require manual intervention and cancellation
and over the last twelve months Helloworld
has refunded over 600,000 tickets to agents
in Australia and New Zealand, refunded
over $300 million worth of cruise bookings,
$400 million worth of forward inbound and
wholesale bookings and on a large number of
both corporate, individual and group bookings
for international trips.
Everyone has had to rally together to work
out better ways to get through these massive
volumes of cancellations and refunds in
order to get monies back into the hands of
our customers and of our agencies for their
customers but I think by and large we are now
on top of that due to an enormous effort from
so many people.
11
helloworldlimited.com.au
Y E A R I N R E V I E W
WOMEN IN POWER
Approximately 65 per cent of Helloworld’s personnel are women and women occupy senior roles across every division of the
business.
In our retail operations three out of four senior positions are held respectively by, Julie Primmer, Lisa Harrison and Michelle
Ryan and they are supported by Lynda Wallace, Nicola Nanninga and a great team of Account Managers and Business
Development Managers.
In our corporate division, these complex operations are in the hands of Deborah Morgan at QBT and Sasha Sherman at
Show Group while in New Zealand at APX operations are managed by Rocky Kilmartin.
The entire wholesale and inbound divisions are run by Executive Director, Cinzia Burnes who is supported by a strong
team. The Australian wholesale operations are run by Lauren Bell, the New Zealand wholesale division is run by Sarah
Hunter, the global contracting team by Dominique Atzenhoffer, marketing and partnerships by Melissa Warren and
Sarah Gerrand, cruise by Catherine Allison and our global product team by Leanne Chard.
Our Fiji operations are managed by Arun Devi.
Two out of every three personnel are women and throughout this pandemic period they have done an extraordinary job in
continuing to look after all our customers throughout Australia, New Zealand and the rest of the world and they have made an
outstanding contribution to our business and to our industry in what has been our most challenging time ever.
1212
Across our retail networks, the majority of owners and managers are women and at a consultant level across the suburban,
regional and rural landscape, over 75% of our broad professionals are women.
Helloworld Travel Limited Annual Report 2021
12
Helloworld Travel Ltd Annual Report 2021 A YEAR OF HIGHS AND LOWS
In what was a year that can only be described as having
In Fiji most of our team has been stood down since
a lot of lows there were also some extraordinary highs
March 2020 and while initially the ravages of
both internally and externally. None have been so
COVID-19 did not impact Fiji, eventually it got out
outstanding as the many times colleagues have rallied
and the main Island, Viti Levu has been severely
to support each other across Australia, New Zealand,
impacted over the last six months. Our managers
Fiji, and Mumbai.
Internally it’s not been easy for anyone. Senior
Executives all agreed to salary reductions and work
reduced hours during the darkest days of this crisis in
order to try and keep costs at a long-term sustainable
in Nadi have done a fantastic job keeping in touch
with our personnel and Helloworld has supported
those personnel by making a number of ex gratia
“sustenance” payments to help our people pay for their
basic needs.
level given HLO’s reduced revenues. Externally, every
Particularly during Victoria’s darkest hours in July and
agent in our networks and buying groups has seen
August 2020, when infection rates were running at
their income cut dramatically but they have continued
600 plus per day and we suffered over 800 fatalities
to keep their doors open and to fight tooth and
this was emotionally demanding given the distressed
nail to process and get back refunds owing to their
nature of many of the calls to our re-purposed call
customers for travel that has become impossible to
centres. It is a credit to each, and every person involved
take at present, to book domestic travel arrangements
that they were able to rally together and support each
for those same customers and to amend, rebook and
other throughout this period and continue to provide
cancel those arrangements over and over as lockdowns
a very high level of service to all callers. This work still
come and go across Australia and New Zealand.
goes on today and we thank all of those involved.
13
helloworldlimited.com.au
Y E A R I N R E V I E W
PERFORMANCE HIGHLIGHTS
In a business used to growth in terms of total
Australia and New Zealand. Normally these
transaction values, customers and profitability
refund processes are automated however most
with a fantastic marketing team, highly skilled
airlines turned the automation off and forced us
consultants and best of breed technology
to go to a manual refund process which caused
solutions, it has not been easy watching our sales
significant delays but throughout the year just
volumes, revenues and profitability fall by 85 per
gone we refunded some 600,000 tickets. On top
cent over the year.
The September quarter was particularly tough,
with TTV in July and August of circa $50 million
of that several hundred million dollars of airline
credits that were managed together with our
agency partners on behalf of their customers.
a month compared to an excess of half a billion
dollars in the same months in the previous year. In
While one would not normally regard the
cancellation and refund of over a billion dollars
the second quarter things improved although TTV
worth of travel as being a highlight. The effort
was still below a $100 million a month and we
in which Helloworld across all of its business
reached $255 million in TTV for the quarter. With
divisions and Helloworld network agents in
lockdown slowly receding after the Christmas/
Australia and New Zealand have put into ensuring
January closures, TTV increased across the March
customers got back as much money and travel
quarter and March was our best month for the
credits as possible.
year to date, reaching $112 million.
Another performance highlight was that the
April and May showed considerable improvement,
company has maintained all of the core services
with corporate and leisure travellers taking to the
that it provides to its corporate, leisure
skies and the roads as borders opened up and our
and ticketing customers. Furthermore, the
June quarter itself was the best for the year with
foundations are there to rapidly build upon as we
TTV of $387 million. This brought our total TTV
start to emerge from this pandemic and the State
for the year to $1.08 billion.
and trans-Tasman borders open and remain open
Throughout this time an enormous amount of
work went into getting monies back from airlines,
cruise companies, tour operators and others to
refund via our agency networks consumers across
and most particularly as international borders
begin to re-open again in 2022.
14
Helloworld Travel Limited Annual Report 2021
RETAIL AGENCY RESILIENCE
15
In March, 2020 HLO’s retail networks and buying
groups totalled some 2,400 agencies and brokers
across Australia and New Zealand.
cash refunds (excluding GST), and 5% of the value of
travel credits successfully secured or rebooked on
behalf of consumers (excluding GST).
Despite the extraordinary challenges faced by
travel agents on both sides of the Tasman, agents
have done an extraordinary job surviving for nearly
18 months with very limited revenues. Commercial
Tenancy regulations were helpful for many agents as
have been various State Government small business
grants. The Australian Governments “Consumer
Travel Support Program” has provided $238 million
in grants across two rounds to cover the March and
June quarters in 2021.
This support has been vital in assisting agents to
remain open and there are requests from industry
to the Government for a third round of assistance to
get agents through the September and December
quarters of 2021.
In New Zealand an estimated $690 million of New
Zealanders’ money is locked up from travel cancelled
due to COVID-19, with approximately 85% related to
international travel. The COVID-19 Consumer Travel
Reimbursement Scheme was established to support
travel agents and wholesalers to recover refunds and
credits owed to New Zealand consumers.
The Scheme is funded to a maximum of $47.2 million,
to 31 December 2021. Participating travel agencies
and wholesalers are reimbursed 7.5% of the value of
Reimbursement can be sought for refunds, credits
and rebookings processed from 14 August 2020,
which are made in respect of bookings confirmed on
or before 14 August 2020.
On 11 June 2021 the Scheme was extended six
months from the original end date of 30 June 2021,
to 31 December 2021 and industry is working with
the Government to extend the 14 August 2020
date to cover bookings confirmed on or before end
September 2020 or end October 2020.
Agents have shown an extraordinary resilience and
in Australia have pivoted to domestic and when
available trans-Tasman bookings while New Zealand
agents have also maximised their opportunities selling
Australia and more recently the Cook Islands, which
was open to New Zealanders from 17 May 2020.
Few businesses have done it tougher than travel
agencies in the last 18 months however when
interstate and then international travel returns as
vaccination rates reach the 70-80% levels, the pent up
demand from Australians and New Zealanders to head
overseas will, as has been the case in the UK, Europe
and the US as they have opened up, enormous and
demand for travel agency services will be very strong.
helloworldlimited.com.au
Y E A R I N R E V I E W
16
16
Helloworld Travel Limited Annual Report 2021
16
SO, WHAT'S NEXT?
Vaccines and new COVID-19 variants have shifted the goal
posts over the last few months. Vaccination has been widely
accepted as the pathway out and, over the remainder of 2021,
the focus is on getting national coverage to 80 per cent or
higher on both sides of the Tasman.
Uncertainty around the rules and when they might suddenly
change has led to booking hesitation and this will likely
remain until at least November 2021 until we get past the
80 per cent vaccination target set by the National Cabinet
and borders are formally open again.
The positive news is that countries including Australia and
New Zealand are now planning how they can shift out of
pandemic mode and into treating COVID-19 as a manageable
endemic disease.
The Australian Governments four-part strategy comes with
commitments from the Morrison government that when
Australia hits the 80 per cent vaccination level, we will move
to Phase C and things will start to “open up”. It is widely
expected we can reach that point by November 2021 although
HLO is planning for a phased opening of international
boarders during the first half of 2022.
Prior to Christmas we are planning for both interstate
and trans-Tasman borders to be largely open (although
Governments have said this will still be subject to snap
lockdowns as required) and that limited outbound and
inbound international travel can recommence in the New
Year. Exactly how that will unfold is not yet clear, but it is
reasonable to assume those who are fully vaccinated and
test negative prior to departure will be permitted to travel to
countries and regions where the virus is largely under control,
to travel in those countries quarantine free and to return
to Australia without having to go through quarantine when
getting back. It is also reasonable to assume that citizens
from those countries will also be allowed into Australia and
the same conditions.
According to the Doherty report, during Phase C Australia can
“lift all restrictions on outbound travel for vaccinated people”,
with only “proportionate quarantine” measures required
(i.e.: home quarantine in certain circumstances).
Travel passports are already well developed offshore and in
Australia and New Zealand vaccination status and test results
via digital certificates will be linked to passports, airline
booking systems and border declarations. IATA (International
Air Transport Association) has also developed its own Travel
Pass, and this operates with other systems including the ICAO
(International Civil Aviation Organisation) Visible Digital Seal.
Helloworld Travel Ltd Annual Report 2021 17
The travel pass consists of four modules:
• a global registry of health requirements;
• a global registry of testing centres;
• a lab app to securely share test and vaccination
certificates with passengers; and
• a contactless travel app which enables passengers
to create a digital passport and manage their travel
documentation digitally.
As these rollout, new travel bubbles during Australia’s
Phase C will be established with low-risk countries and
Singapore has recently led the way. With vaccination rates
in Singapore now over 80 per cent, since August, vaccinated
travellers from eight countries including
Australia can now enter Singapore and home quarantine and
from September, the plan is to allow vaccinated travellers to
skip quarantine altogether.
There are still issues around vaccine recognition by various
countries, but these issues should be largely resolved by
year end.
And finally, sometime in the first half of 2022, Phase D will
arrive, with the re-opening of international borders, at which
point quarantine will only be required for travellers from
“high- risk countries”.
As the build-up in demand grows, so too will demand for
Helloworld’s corporate, retail, wholesale, ticketing and
inbound businesses and we are well positioned to handle
significant increases in business throughout 2022 and 2023.
We anticipate that borders will be open across much of the
developed world by mid-2022 and people will be able to
travel at will and without quarantine to many destinations.
Vaccine roll outs will pick up pace across poorer nations with
the global goal to have the entire world vaccinated by the
end of 2022 and a “return to normal” in 2023 although that
return will probably involve an annual or bi-annual COVID-19
booster shot as well.
The core infrastructure of the global travel industry remains
in place. The current staffing challenges in Australia
for our domestic industry will resolve themselves when
international students and working visa holders are allowed
back into the country sometime early next year. The cruise
ships are still there, and in fact new cruise ships are being
built right now. The aircraft are still there, the pilots and
air crew are still there, the front office staff, the chefs, the
housekeepers are all still there and as travel resumes many
people who left the sector to find temporary work in other
fields of endeavour will come back to once again create the
extraordinary array of experiences that make up our global
travel and tourism industry.
A recent IATA survey across 11 countries and 4,700
respondents showed 57% expected to be travelling within
two months when restrictions ease and 72% will do so when
they can visit friends and family.
The challenge for the travel industry will be managing the
multiple rules around who can go where and under what
conditions and in ramping up capacity to meet the pent up
demand. Europe is now open to vaccinated US residents,
cruise ships have commenced operating again in US and
European waters and airlines, car hire companies and other
major suppliers are starting to increase capacity and gear up
for an end to the worst ravages of COVID-19 while managing
the safety and security of their customers.
We are already seeing a lot more flexibility in booking and
payment conditions to cater for consumers who were caught
out in 2020 with long waits for refunds or travel credits.
At HLO we have seen an increase in average lead times
for domestic bookings from 88 days in 2019 to 178 days
now. People are getting in early to avoid missing out but
at the same time they are making sure the payment terms
are reasonable in the event their trip gets blocked due to
Government restrictions.
At the same time we are seeing an increase in the average
value of both domestic and international bookings, with
people more likely to book premium experiences and
products given the two year hiatus in international travel.
There is no doubt the next twelve months will come with
contradictions and uncertainties as the world emerges from
this pandemic but there is also no doubt the demand for
travel is greater than it ever has been and the industry will
rapidly recover.
helloworldlimited.com.au
Y E A R I N R E V I E W
TECHNOLOGY DEVELOPMENTS
– BANKING ON THE FUTURE
Helloworld has reduced its operational capacities
as a result of COVID-19 however with sophisticated
systems operating in our corporate, retail, wholesale,
inbound and air ticketing divisions, we have continued
throughout FY21 to invest in the further development
of these technologies.
The cruise division has now rolled out a uniformed
version of Odysseus while in Air Tickets we continue
to build on the functionalities in the system and,
slowly but surely, turn back on with the support of
our aviation partners the automated functionalities
around cancellations and refunds.
With our corporate technologies we continue to work
with our GDS and portal partners and have rolled
out our new analytics portal in March 2021 which
has received very favourable feedback from our
customers.
In the retail space, ResWorld continues to become
the go to mid-office system for our retail agency
networks in Australia and New Zealand. Despite the
lockdown it is now rolled out in nearly 50 per cent of
our Branded Network in Australia, it is being rolled
across 100 per cent of our Branded Network in New
Zealand and the corporate version is in beta testing
with rollout due to commence in October 2021.
In wholesale, we are moving to a new platform,
“Mango”, our own front-end portal operating off
Tourplan NX and this will be rolled out across our
wholesale operations in October 2021. This is a very
significant shift for the wholesale business and will
provide much greater functionality, ease of loading
and a wider array of product for all our retail agents
throughout Australia and New Zealand.
At the same time, we have continued to enhance
our Air Tickets systems to accommodate New
Distribution Capabilities ‘NDC’
SmartNDC will join our suite of products within Air
Tickets and our systems have been developed to
incorporate NDC which will provide a single shopping
solution to search and compare all the best air offers
into one single shopping page as part of the New
Distribution Capability being launched by airlines
Our ReadyRooms platform will be launched in late
September based upon the Athena system developed
by our dedicated team in Athens and we intend to
launch Skiddoo again with an updated platform in
October 2021. Skiddoo has been temporarily closed
given the complete lack of international travel at
present but we envisage this situation will change in
2022 and will be putting this very successful platform
back into the marketplace.
18
18
Helloworld Travel Limited Annual Report 2021
18
Helloworld Travel Ltd Annual Report 2021 ADDING VALUE
Many people ask about the future of travel
agents and travel distribution businesses
generally and the survival of any business is
dependent upon whether it is adding value to its
customers.
In our view travel agents, wholesalers, ticket
consolidators, retail franchise businesses,
inbound tour operators and travel management
companies have always added value and will
continue to do so as long as customers have
choices and as long as people value the advice
which all of these businesses can provide them
in making those choices. Through the complexity
of the booking themselves, of the sequencing
of multiple arrangements and of the rules and
restrictions that apply to the particular type,
class or mode of travel being undertaken.
Pre COVID-19, travel was complex, with the
longer one went for and the further one went
adding to that complexity.
Post COVID-19, that complexity will increase
exponentially, and the duty of care element
provided by travel agents, TMC’s, travel
wholesalers and other distributors of product
is going to become an even more important
element of the travel equation. Helloworld’s
customers, whether through our QBT, TravelEdge,
APX and Show Travel corporate businesses, or
through our VIVA Holidays, Sunlover Holidays and
Go Holidays wholesale businesses or through our
AOT, ATS Pacific and ETA inbound businesses or
through our Air Ticket business and through all
of our agency network members have found that
there are very tangible benefits of working with
a travel partner and we are determined to ensure
that we continue to enhance those benefits and
retain our edge with all our customers.
19
helloworldlimited.com.au
Y E A R I N R E V I E W
20
Helloworld Travel Limited Annual Report 2021
A QUICK LOOK
AT THE YEAR
EMPLOYEE NUMBERS
2020 1,578 2021 885
TRAVEL AGENTS IN THE
HELLOWORLD NETWORKS
2020 2,496 2021 2,224
AIR TICKETS SOLD
2020 2.2M 2021 678K
THE NUMBER OF AIR TICKETS
REFUNDED
600,000+
21
AGENCIES SERVICED BY
WHOLESALE DIVISION
3,000+
SUPPLIERS IN OUR
DATABASE
10,000+
DESTINATION MANAGEMENT
SERVICES TO
73 COUNTRIES
REVENUE & OTHER INCOME
2020
$295M 2021
$94M
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
DIRECTORS' REPORT
The Directors of Helloworld Travel Limited (Helloworld Travel), present their Report together with the Financial
Statements of the Consolidated Entity (Group) being Helloworld Travel Limited and the entities that it controlled at
the end of, or during, the year ended 30 June 2021 and the Independent Auditor’s Report.
D I R E C TO R S
The Directors of the Company in office at any time during or since the end of the financial year are as follows:
Garry Hounsell
B Bus, FAICD, FCA
Non-Executive Director and Chairman
22
Appointment
Garry Hounsell was appointed to the Board and as
Chairman from 4 October 2016.
Former directorships of listed entities in the last
3 years:
• Myer Holdings Limited (2017 to 2020), Chairman
Experience and Expertise
Garry has extensive director experience on a wide
range of highly successful Boards, Garry was
formerly Senior Partner of Ernst & Young, Chief
Executive Officer and Country Managing Partner
of Arthur Andersen, a Board member of Freehills
(now Herbert Smith Freehills) as well as Deputy
Chairman of the Board of Mitchell Communication
Group Limited.
Garry is a Fellow of the Australian Institute of
Company Directors and Chartered Accountants in
Australia and New Zealand.
Other current directorships of listed entities:
• Treasury Wine Estates Limited (since 2012).
(2017 to 2020).
Other current directorships:
• Commonwealth Superannuation Corporation
Limited, Director since 2016 and Chairman from
July 2021
• Findex Group Limited (since January 2020)
Special Responsibilities:
• Chairman of the Board.
• Chairman of the Remuneration Committee and
Nominations & Governance Committee.
• Member of the Audit & Risk Committee.
Interests in Shares:
• A legal and beneficial interest in 153,890 fully
paid ordinary shares.
Helloworld Travel Limited Annual Report 2021
Andrew Burnes AO
LLB, B Comm. (Melb)
Chief Executive Officer and Managing Director
23
Appointment
Andrew Burnes was appointed Chief Executive
Officer and Managing Director of Helloworld Travel
Limited and to the Board on 1 February 2016.
Experience and Expertise
Upon completing his studies in Law and Commerce at
Melbourne University, Andrew was employed by Blake
Dawson Waldron where he completed his articles and
worked as a solicitor.
On 1 November 1987, Andrew founded The Australian
Outback Travel Company, which became The AOT
Group. After the merger of The AOT Group and
Helloworld in January 2016, he was appointed Chief
Executive Officer of Helloworld Travel Limited on 1
February 2016.
Andrew was Honorary Federal Treasurer of the Liberal
Party of Australia from July 2015 to June 2019. Prior
to that appointment he was the State Treasurer of the
Victorian Liberal Party from May 2009 to early 2011.
He was appointed as a Director of Tourism Australia
in July 2004 serving as Deputy Chairman from 2005
to 2009. Andrew chaired the Audit and Finance
Committee of Tourism Australia during this period, was
a Trustee of the Travel Compensation Fund from 2005
to 2009 and a Board member of the Australian Tourism
Export Council (‘ATEC’) from 1998 and served as the
organisation’s National Chairman from 1999 to 2003.
Andrew was made an Officer of the Order of Australia
(AO) in the June 2020 Queen's Birthday honours for his
distinguished services to business, particularly through
a range of travel industries, to professional tourism
organisations, and to the community.
Special Responsibilities:
• Chief Executive Officer and Managing Director
Interests in Shares:
• A legal and beneficial interest in 10,495,531 fully
paid ordinary shares.
• In conjunction with Cinzia Burnes a further
beneficial interest in 21,570,408 fully paid
ordinary shares.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
Cinzia Burnes
Group General Manager – Wholesale & Inbound,
Executive Director
Appointment
Cinzia Burnes was appointed Group General
Manager – Wholesale & Inbound, Helloworld Travel
Limited and to the Board on 1 February 2016.
Experience and Expertise
Cinzia brings extensive sector and management
experience to the Board.
In 1982, Cinzia commenced her career in travel and
after working as a travel wholesaler in Italy for 9
years she has played a pivotal role over 26 years in
growing AOT from a regional safari operator into one
of Australasia’s leading travel distribution businesses.
The AOT Group was privately owned by Andrew and
Cinzia Burnes until its merger with Helloworld Travel
Limited in February 2016.
Cinzia was a Director of Tourism Victoria from 2013
to 2015. She has also served as a Board member of
Health Services Australia from 2005 to 2007 and the
Australian Tourist Commission from 2001 to 2004.
Special Responsibilities:
• Group General Manager – Wholesale & Inbound
Interests in Shares:
• A legal and beneficial interest in 10,138,014
fully paid ordinary shares.
• In conjunction with Andrew Burnes a further
beneficial interest in 21,570,408 fully paid
ordinary shares.
24
Mike Ferraro
LLB (Hons)
Non-Executive Director
Appointment
Current directorships of listed entities:
Mike Ferraro was appointed to the Board on 1 January
2017.
• Alumina Limited (5 February 2014 to 31 May 2017),
CEO and Managing Director (from 1 June 2017).
Experience and Expertise
Special Responsibilities:
• Chairman of the Audit & Risk Committee.
• Member of the Remuneration Committee and
Nominations & Governance Committee.
Interests in Shares:
• A beneficial interest in 19,522 fully paid ordinary
shares.
Mike is Chief Executive Officer and Managing
Director of Alumina Limited, having been appointed
1 June 2017. He was previously a non- executive
director of Alumina Limited.
On 25 May 2017 Mike was appointed as a non-
executive of director of Alcoa of Australia Limited.
Mike was previously a partner and member of the
executive management team at global law firm Herbert
Smith Freehills (HSF) and global head of the Corporate
group at HSF. Prior to that he was Chief Legal Counsel
at BHP Billiton Limited from 2008 to mid 2010.
Helloworld Travel Limited Annual Report 2021
Andrew Finch
B Comm, LLB (UNSW), LLM (Hons 1 USYD),
MBA (Exec) AGSM)
Non-Executive Director
Appointment
Andrew Finch was appointed to the Board on 1 January 2017.
Experience and Expertise
Andrew is General Counsel and Group Executive, Office of the CEO and Group Company Secretary at Qantas
Airways Limited and is a member of the Qantas Group Management Committee. He was previously a partner
with Allens Linklaters where he specialized in mergers and acquisitions, equity capital markets and general
corporate advice.
Special Responsibilities:
• Member of the Audit & Risk Committee, Remuneration Committee and Nominations & Governance Committee.
GROU P COM PAN Y SECR ETARY
David Hall
B Bus, FCA
Chief Financial Officer and Group Company Secretary
25
David joined Helloworld Travel Limited in December 2019 and has more than 30 years finance, commercial,
operational and management experience across a number of industries, predominately in the Aviation sector.
Prior to joining Helloworld, David was most recently CFO at Australia Pacific Airports Corporation (the owner
of Melbourne and Launceston Airports).
During his decade with Qantas Group, David’s roles included Qantas’ Group Executive Corporate Services,
Jetstar Airways’ CFO and ultimately CEO of Jetstar Australia and New Zealand, responsible for leading one of
Australia’s best known brands and fastest growing airlines in the Asia Pacific. David is a Fellow of the Institute
of Chartered Accountants in Australia and New Zealand.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
D I R E C TO R S ’ M E E T I N G S
During the year, twelve meetings of the Board, five meetings of the Audit & Risk Committee, three meetings of the
Remuneration Committee and two meetings of the Nominations & Governance Committee were held.
Attendance at Board and Board Committee Meetings during FY21 is set out in the table below:
Board
Audit &
Risk Committee
Remuneration
Committee
Nominations &
Governance Committee
DIRECTOR
Garry Hounsell
Andrew Burnes AO
Cinzia Burnes
Mike Ferraro
Andrew Finch
A
12
12
12
12
12
B
12
12
12
12
12
A
5
5
5
5
5
B
5
5
5
5
5
A
3
3
3
3
3
B
3
3
3
3
3
A
2
2
2
2
2
B
2
2
2
2
2
26
Column A: Indicates the number of scheduled and ad-hoc meetings held during the period the Director was a member of
the Board and/or Committee or was invited to attend.
Column B: Indicates the number of scheduled and ad-hoc meetings attended by the Director during the period the
Director was a member of the Board and/or Committee or attended by invitation.
C O M M I T T E E M E M B E R S H I P
N O M I N AT I O N S & G OV E R N A N C E
At the date of this report, the Company has an Audit
& Risk Committee, a Remuneration Committee and a
Nominations & Governance Committee of the Board.
During the year, the members of the Committees were:
AU D I T & R I S K C O M M I T T E E
C O M M I T T E E
Garry Hounsell (Chairman)
Andrew Burnes
Cinzia Burnes
Mike Ferraro
Andrew Finch
Mike Ferraro (Chairman)
Andrew Finch
Garry Hounsell
R E M U N E R AT I O N C O M M I T T E E
Garry Hounsell (Chairman)
Andrew Finch
Mike Ferraro
Helloworld Travel Limited Annual Report 2021
R E T I R E M E N T I N O F F I C E O F D I R E C TO R S
In accordance with the Company’s Constitution and the
ASX Listing Rules, Mike Ferraro and Andrew Finch, being
the longest serving directors are retiring by rotation
and, being eligible, offer themselves for re-election at
the 2021 Annual General Meeting.
Helloworld's retail distribution operations include
Helloworld Travel, Australia and New Zealand's largest
network of branded and co-branded franchised travel
agents, Magellan Travel, Helloworld Business Travel,
the My Travel Group, NZ Travel Brokers and our 50%
investment in MTA (Mobile Travel Agents).
Helloworld Travel's corporate divisions in Australia
include QBT, AOT Hotels, TravelEdge, Show Travel and in
New Zealand APX and Atlas Travel.
Helloworld's wholesale travel businesses in Australia
include Viva Holidays, Sunlover Holidays, Ready Rooms,
Seven Oceans Cruises and in New Zealand Go Holidays
and Williments Travel.
Helloworld's inbound operations in Australia, New
Zealand and Fiji include AOT, ATS Pacific and ETA while
our transport businesses include TTF Fiji and Show
Group.
Helloworld Travel’s main business operations are located
in Australia, New Zealand and Fiji.
27
D I V I D E N D S
The Board determined that no dividends be declared and
paid during the current financial year.
E A R N I N G S P E R S H A R E
Basic earnings per share were negative 23.3c and in prior
year were negative 56.5c.
Diluted earnings per share were negative 23.3c and in
prior year were negative 56.5c. The prior year earnings
per share was impacted by impairment charges.
Underlying earnings per share for FY21 was negative
17.4c compared to positive 9.7c in FY20.
P R I N C I PA L A C T I V I T I E S
The principal activities during the year of the entities in
the Group were the selling of international and domestic
travel products and services and the operation of retail
distribution networks of travel agents.
Helloworld Travel is a leading Australian and New
Zealand travel distribution company comprising retail
distribution travel businesses, destination management
services (for inbound Australian, New Zealand and South
Pacific travel, air ticket consolidation, wholesale leisure
businesses (domestic and international) corporate TMC
(Travel Management Company) and accommodation
management operations and online operations.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
OPER AT ING AN D FI NANC IAL R E VI EW
S U M M A RY O F R E S U LT S
For the year ended
30 June 2021
$000’s
For the year ended
30 June 2020
$000’s
Total Transaction Value (TTV)
Revenue and other Income
Underlying operating expenses
Equity accounted profits/(loss)
Add back trading losses relating to U.S Wholesale Division
Underlying EBITDA
Significant non-recurring items
Impairment non-current assets
Depreciation and amortisation expense
Finance expense on borrowings
Underlying Profit/(Loss) before income tax expense
Loss before income tax
Loss after income tax
Loss after tax attributable to members
Revenue margin %
Underlying EBITDA margin %
1,081,054
94,173
(107,445)
(790)
0
(14,062)
(11,247)
(426)
(21,180)
(2,575)
(37,817)
(49,490)
(35,885)
(35,496)
6.6%
(19.8%)
5,005,961
294,879
(254,367)
1,246
2,284
44,042
(18,026)
(67,947)
(23,919)
(3,029)
17,094
(68,879)
(69,985)
(69,874)
5.6%
15.6%
28
Underlying basic earnings per share
Underlying diluted earnings per share
Basic earnings per share
Diluted earnings per share
Interim dividend per share
Final dividend per share
Total dividends per share
For the year ended
30 June 2021
Cents
For the year ended
30 June 2020
Cents
(17.4)
(17.4)
(23.3)
(23.3)
-
-
-
9.7
9.7
(56.5)
(56.5)
9.0
-
9.0
Change
$000’s
(3,924,907)
(200,706)
146,992
(2,036)
(2,284)
(58,104)
6,779
67,521
2,739
454
(54,911)
19,389
31,823
32,101
0.9%
(35.57%)
Change
Cents
(27.1)
(27.1)
32.6
32.6
(9.0)
-
(9.0)
Change
%
(78.4)
(68.1)
57.8
(163.4)
-
(131.9)
86.9
99.4
11.5
15.0
(323.7)
28.1
45.5
45.9
16.0
(228.0)
Change
%
(279.4)
(279.4)
57.7
57.7
(100)
-
(100)
The Board assesses the performance of the group and its segments based on several measures including TTV, revenue and underlying EBITDA, profit before
tax and associated key ratios.
TTV does not represent revenue in accordance with Australian Accounting Standards and is not subject to auditor review. TTV represents the price at which
travel products and services have been sold across the Group, as agents for various airlines and other service providers, plus revenue from other sources.
The Group’s revenue is, therefore, derived from TTV. TTV does not represent the Group cash inflows as some transactions are settled directly between the
customer and the supplier.
Underlying EBITDA represents earnings before interest expense, tax, depreciation and amortisation, adjusted to include depreciation on right of use assets
and interest expense on lease liabilities and make good provisions arising from the application of AASB 16 and exclude large non-recurring items (refer
note 5 in the Annual Report for further information). Underlying EBITDA is a financial measure which is not prescribed by Australian Accounting Standards
but is the measure used by the Board to assess the financial performance of the Group and operating segments and it is not subject to auditor review.
Revenue margin has been calculated as revenue as a percentage of TTV. Underlying EBITDA margin has been calculated as a percentage of revenue.
Helloworld Travel Limited Annual Report 2021
• Equity account losses of $0.8 million for our investments.
• Underlying EBITDA loss of $14.1 million. FY20 underlying
EBITDA profit of $44.0 million. Depreciation and
amortisation (excluding lease costs) decreased by $2.7
million to $21.2 million due to the full year amortisation
impact of commercial agreements and intangible assets
acquired in the prior year and the continued investment
in technology developments. Finance expense (excluding
lease costs) decreased by $0.5 million to $2.6 million
due to the lower level of borrowings as a result of a
prepayment of $20.0 million.
S H A R E H O L D E R R E T U R N S
The Board determined that the Company will not pay a
dividend for the year ended 30 June 2021. In FY20 a
9.0 cents fully franked interim dividend was paid out of
first half profits.
Helloworld Travel’s underlying earnings per share
of negative 17.4 cents compared to the prior year of
positive 9.7 cents per share reflecting the business’s
lower performance due to COVID-19.
I M PA I R M E N T S
29
• In FY21 the Group recognised a total non-cash
impairment loss of $0.4 million in relation to right
of use assets. In FY20 the Group recognised an
impairment charge of $67.8 million.
YEAR IN REVIE W
OV E RV I E W O F R E S U LT S
Helloworld Travel’s FY21 full year results fell compared
to FY20 relating to the ongoing impact of COVID-19.
The various state border closures impacted the short-
term ability to travel while bookings into future years
continued, further emphasising a strong demand on the
other side of travel restrictions. The second half saw
growth in TTV compared with FY21H1.
Helloworld Travel’s key financial results for the year
ended 30 June 2021 compared with the prior year ended
30 June 2020 are:
• Full year TTV of $1.08 billion fell 78.4% (2020: fell
23.1%) and revenue and other income of $94.2 million
fell 68.1% (2020: fell 21.3%) compared to FY20 fully
impacted by COVID-19, border closures and continuing
travel restrictions. There was some positive growth
in our travel management business, with one division
breaking its pre-COVID TTV record in several months.
• Helloworld has continued to take necessary steps to
ensure appropriate cost control practices are in place
to minimise outgoing cash, while maintaining a strong
and dedicated workforce to service our customers and
network members. The steps included:
• Net cash operating costs reduced and maintained,
including the consolidation of physical buildings.
• Reduction in net salary costs net of Government
allowances and recoveries from clients.
• We continue to promote domestic travel with
marketing spend co-funded by partners.
• Our executives and senior staff have taken salary
reductions and we continue to manage fluctuation of
workloads resulting from border restrictions through
the use of annual leave.
• Investment in key technologies to further reduce
our cost base while improving service availability to
customers.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
30
Helloworld Travel Limited Annual Report 2021
AC Q U I S I T I O N S A N D D I S P O SA L S
Helloworld Travel made three business acquisitions during
the current year. These transactions met the strategic and
financial objectives established by the Board of Directors.
AC Q U I S I T I O N S
On 31 October 2020, Helloworld Travel acquired an
additional 60% of Inspire Travel Management (“ITM”)
a joint venture between Helloworld Travel and In Travel
Group. As a result of this acquisition, Helloworld Travel
now controls 100% of ITM.
On 30 November 2020, Helloworld Travel announced the
acquisition of 100% of the CruiseCo business (“CruiseCo
a specialist cruise package wholesaler, enabling
Helloworld Travel to expand its cruise offering in Australia
and New Zealand, complementing the existing cruise
wholesale business.
On 12 February 2021, Helloworld acquired the assets of
touring logistics company Australian Touring Services,
merging this with the existing Show Group Freight which
has built our service offering, particularly in the growing
television and film industries.
L I Q U I D I T Y A N D F U N D I N G
As at 30 June 2021, the Group held a total cash balance of
$131.0 million compared with $131.9 million at 30 June 2020.
As at 30 June 2021, the Group had external borrowings of
$81.0 million compared with $101.0 million at 30 June 20
with available headroom on its debt facilities of
$31.6 million compared with $6.5 million at 30 June 2020.
In August 2020, Helloworld Travel completed a $50.0 million
($48.7 million net of costs) fully underwritten equity raising
of new fully paid ordinary shares in the Company.
Proceeds of the Offer were used to increase Helloworld
Travel’s balance sheet flexibility and provide liquidity to
manage the business through a prolonged period of disruption
to the global travel industry.
Helloworld Travel has revised its banking arrangements. Key
outcomes include:
• Our shorter dated facilities totalling $29.0 million are due
to expire in September 2022 and our longer dated facilities
totalling $90.0 million expire in March 2023
• Earnings based covenant waivers have been provided
until June 2022. With the liquidity covenant of $55.0
million, reducing by $5.0 million in October 2021 and
a further $5 million in January 2022.
31
H E L L O W O R L D R E TA I L N E T W O R K S
Helloworld expects some further franchisee and buying
group members may opt to close their businesses in the
Helloworld Travel Group has maintained a strong footprint
coming six months however the general attitude is we've
of 2,224 agencies throughout Australia and New Zealand
got this far, lets stick it out!
at 30 June 2021. A number of agencies have ‘hibernated’
their businesses, others have moved operations to
We expect demand for agency services in the future
home or to shared premises with other agencies, while
will be high, given the expertise agents have in being
some multi agency owners have consolidated their
trusted advisers to their clients, the future complexities
businesses.
of international travel and the ability of agents to apply
an appropriate duty of care for their customers, relating
It has been an incredibly tough 15 months for our agency
to traveller health, safety and risk management. Travel
networks. At the beginning of the pandemic, they worked
agents with access to a range of risk assessment and
tirelessly assisting clients with cancellations, refunds,
risk management tools will be able to provide up to date
rebooking and repatriating passengers back to Australia,
information on destinations and suppliers and awareness
effectively undoing months of hard work for no return.
of issues around contactless check-ins, deep cleaning,
When state borders remained closed for a number of
digital key access, embarkation and disembarkation
months last year, the agents relied on intrastate business
procedures, contactless rental car pick up and a range of
to keep going. Consumer confidence was mired as borders
other travel protocols that will be implemented as the
opened, only to close again with little notice when COVID-19
world opens up again.
outbreaks occurred.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT - AU ST R A L I A S E G M E N T
Total Transaction Value (TTV)
Revenue and other income
Underlying operating expenses
Equity accounted profits/(loss)
Underlying EBITDA
Revenue margin
Underlying EBITDA margin
FY21
$000’s
FY20
$000’s
Change
$000’s
962,542
4,275,488
(3,312,946)
86,256
239,812
(153,556)
(92,612)
(201,578)
108,966
(790)
(7,146)
6.6%
11.1%
1,246
39,480
5.4%
17.2%
(2,036)
(46,626)
-1.2%
6.1%
Change
%
(77.5)
(64.0)
(54.0)
(163.4)
(118.1)
(22.2)
(35.5)
The Australia segment has retail distribution operations, air ticketing, wholesale & inbound operations and travel
management operations (corporate travel). These operations supply travel products and services to customers and are
supported by shared service functions encompassing Administration, Finance, IT, Systems and HR.
32
R E TA I L
In Australia, the Group has a range of retail operations
acting as a franchisor for retail travel agency
networks, including Helloworld Travel Branded,
Helloworld Travel Associate and Helloworld Business
Travel and Magellan Travel. In addition HLO operates
the My Travel Group, an independent network of
agencies and has a 50% holding in MTA, which
operates a travel broker network with over 450
members.
Retail operations are underpinned by HLO's
ticketing division Air Tickets, being the distributor
and ticketing services consolidator to the internal
retail network and to over 400 external independent
agents. Air Tickets operates in all Australian states
with world class technology allowing agents to issue
tickets 24 hours a day, seven days a week.
Air Tickets continues to invest in innovative ticketing
technology and is considered one leading airfare
distribution and ticketing services consolidator.
Many Agents have benefited from Job Keeper and the
multiple rounds of government assistance from both
State and Federal Governments.
The Australian retail networks have remained strong
despite these challenging times with a total of over
1,800 members as at 30 June.
Member engagement remains strong and we have
undertaken a wide range of engagement activities
and continue to advocate on behalf of the network for
support to ensure they can continue to service their
customers and be there for them on the other side of
COVID-19.
Helloworld Travel is focused on ensuring that our
retail networks in Australia and New Zealand are
there when domestic, trans Tasman and eventually
international borders re-open and are confident that
demand for travel agency advice and service will be in
high demand.
The Agent network remains primed to welcome
customers back into their stores and deliver the
benefits of the travel professional, all of whom have
supported our customers in gaining refunds and
making changes to bookings.
Helloworld Travel Limited Annual Report 2021
W H O L E S A L E & I N B O U N D
Helloworld's wholesale businesses in Australia
and New Zealand operate a range of brands
including Viva Holidays, Sunlover Holidays,
Go Holidays, Ready Rooms and Seven Oceans
Cruises. These businesses package air, cruise
and land products for sale through retail travel
agency networks as well as other third-party
retailers in Australia and New Zealand.
Helloworld's inbound business is the largest
provider of inbound travel services in
Australia and New Zealand, offering travel
services to clients in over 73 countries
worldwide. These businesses include AOT
Inbound, ATS Pacific and Experience Tours
Australia (ETA).
The Australian wholesale & inbound
operations TTV fell year on year with
the continuation of international travel
restrictions to and from Australia, New
Zealand and Fiji.
Wholesale sales are slowly recovering, in line
with loosening border restrictions, though
uncertainty around state borders have
continued to impact travel plans at short
notice and impacted sales.
Encouragingly, we have seen some significant
sales of cruise departures for 2022 and
beyond, demonstrating there is still very
significant demand for cruise product in the
Australian and New Zealand markets.
Our wholesale operations are benefiting
from the volume of domestic product offered
by our Viva Holidays and Sunlover Holidays
brands as interstate borders re-open and the
trans-Tasman market comes back on line.
With the commitment of State Governments
and the Federal Government to promotion
of domestic travel, we have seen domestic
travel bookings out many months ahead and
expect demand for all domestic destinations
will increase significantly as borders re-open
and with the vaccination roll out our retail
networks and wholesale businesses are well
placed to capture much of this demand.
33
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT - AU ST R A L I A S E G M E N T
C O R P O R AT E
S U M M A RY
The Group’s corporate travel management division
offers travel management services to corporate
and government customers including booking
flights, accommodation and other services through
our QBT, AOT Hotels, Show Group, TravelEdge and
APX businesses.
Show Group continues to be an excellent
addition to the Helloworld Travel corporate
division recording improved performance over
the last twelve months as television and movie
production came back and Australia has become
a key destination for international productions.
It is expected that post-pandemic the business
had been a strong performer with a range of high
profile events and concerts generating demand for
our travel and freight services.
Our QBT, TravelEdge and APX businesses were
a standout performer in the group in FY21 with
steady business throughout the year.
We continued to invest in technology to improve
the offering to our clients through enhanced
analytics and improved digital experiences.
The Australian segment generated TTV of
$963 million down 77.5%, total revenue and other
income of $86.3 million down 64.0% were impacted
by adverse conditions throughout the year.
Revenue margin increased from 5.4% in FY20 to
6.6% in FY21. The increase reflects better margin
outcomes from our sales mix with some impact
from revenues derived from COVID-19 related
call centre work. No TTV is associated with this
revenue. Total underlying operating expenditure
was reduced by $109 million through cost saving
initiatives and from wage subsidies. Underlying
EBITDA for the Australian segment was
negative $7.1 million, a decrease of $46.6 million
or (118.1)% compared with the prior year.
I N V E ST M E N T S
During FY21, Helloworld Travel purchased
CruiseCo, which will further enhance our wholesale
cruise business. Helloworld also acquired the
assets of touring logistics company Australian
Touring Services, merging with the existing Show
Group Freight which has built our service offering,
particularly in the growing television and film
industries.
34
Helloworld Travel Limited Annual Report 2021
D I R E C TO R S ' R E P O RT - N E W Z E A L A N D S E G M E N T
Total Transaction Value (TTV)
Revenue and other income
Underlying operating expenses
Underlying EBITDA
Revenue margin
Underlying EBITDA margin
FY21
$000’s
FY20
$000’s
Change
$000’s
118,512
688,911
(570,399)
7,791
47,293
(39,502)
(14,056)
(42,752)
(6,265)
5.7%
(94.0%)
4,541
6.5%
10.1%
28,696
(10,806)
0.9%
Change
%
(82.8)
(83.5)
(67.1)
(238.0)
(13.1)
104.1%
(1030.7)
The New Zealand segment has retail distribution operations, our air ticketing & consolidation business, wholesale
& inbound, and travel management businesses. These operations work together to supply travel products and services
to customers and are supported by shared service functions.
35
R E TA I L
In New Zealand, the Group has a range of retail
operations acting as a franchisor of retail travel
agency networks including the Helloworld
Travel Branded and Helloworld Travel Associate
networks. The retail distribution operations also
include the membership groups of My Travel
Group (an independent network of agencies) and
The Travel Brokers and NZ Travel Brokers groups
representing the specialist travel brokers network.
In addition, the business is supported by its
ticketing division, Air Tickets, and the online
channel, helloworld.co.nz.
In New Zealand the retail network numbers
reduced during the year in response to impacts
of the pandemic, but overall the network remains
at over 380 agents and ready to serve their
customers as we chart a path out of the pandemic.
Agents in New Zealand have taken advantage of
the Consumer Travel Reimbursement Scheme
under which the New Zealand Government is
paying 7.5% to agents for refunds and 5% of
future travel credits for refunds and credits for
bookings made prior to 14 August 2020 and
refunded or credited after 14 August 2020.
W H O L E SA L E & I N B O U N D
The Group’s wholesale business, Go Holidays,
procures air, cruise and land product for packaging
and sale through retail travel agency networks and
other third-party retailers. The Group’s inbound
businesses of ATS Pacific and AOT New Zealand
offer travel services to clients in over 60 countries
worldwide.
The New Zealand wholesale and inbound operations
saw improvement in the later part of the year as a
result of the trans-Tasman bubble and the opening
up of the Cook Islands to New Zealand.
C O R P O R AT E
The Group’s corporate travel management services
division offers travel management services to
corporate and government customers including
booking flights and accommodation, through APX
and Atlas Travel.
Our corporate operations have relied heavily on
domestic and some trans-Tasman travel and are
poised for growth as New Zealand emerges from
this pandemic.
S U M M A RY
As with other segments, the New Zealand full year
segment results reflect the ongoing impact of
COVID-19.
Total underlying operating expenditure was
reduced by $29 million through cost saving
initiatives to mitigate the impacts of COVID-19.
Underlying EBITDA was negative $6.3 million, a
decrease of 67.1% compared with the prior year.
At the beginning of the financial year, the Group
completed a restructure of our New Zealand
operations, reducing headcount by a further 160
personnel at a cost of $2.4 million including all
entitlements.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT - N E W Z E A L A N D S E G M E N T
36
Helloworld Travel Limited Annual Report 2021
D I R E C TO R S ' R E P O RT - R E ST O F T H E W O R L D ( R O W ) S E G M E N T
Total Transaction Value (TTV)
Revenue and other income
Underlying operating expenses
Add back trading losses relating to U.S.A. Wholesale Division
Underlying EBITDA
Revenue margin
Underlying EBITDA margin
FY21
$000’s
FY20
$000’s
Change
$000’s
-
126
(777)
-
(651)
-
-
41,563
7,774
(10,037)
2,284
21
18.7%
0.3%
(41,563)
(7,648)
9,260
(2,284)
672
-
-
Change
%
-
(98.4)
(92.3)
-
-
-
-
37
The segment generated TTV and revenue below the prior year primarily reflecting the changing travel
conditions in the current year.
The segment generated a small underlying EBITDA loss of $0.6 million. Operating costs were lower than the
prior year in response to the continuation of the impacts of travel restrictions.
F I J I
The Group’s Fiji based businesses, ATS Pacific (Inbound) and TTF Fiji (Transport) remain in place and ready to
restart operations when travel restrictions are removed or reduced.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
38
Helloworld Travel Limited Annual Report 2021
O U T L O O K & E C O N O M I C
S U STA I N A B I L I T Y
The Group’s focus in the 2022 financial year is on
managing our costs and revenues to ensure losses are
kept at a minimum.
With the Australian Government's four-part strategy that
when Australia reaches 70-80 per cent vaccination level, we
will start to open up.
This means that both interstate and trans-Tasman borders
will remain largely open (however, still subject to snap
lockdowns as deemed necessary) and that limited inbound
and outbound international travel can recommence.
The Company has a stable network of high performing
agents who are determined to see through this crisis, a wide
range of preferred partners and a suite of enhanced digital
solutions for our agency and corporate customers.
B U S I N E S S R I S K S
Helloworld is subjected to some material business risks
that could impact on the Group’s ability to achieve its
business strategies and financial forecasts in future
years, some are specific to the Company and many are
beyond the control of Helloworld.
Travel industry disruption and the impact of COVID-19
Helloworld Travel’s operating and financial performance
is dependent on the travel industry generally. To lessen
the business risk caused by the COVID-19 pandemic, the
Company has implemented cost reduction measures,
resulting in substantial decrease in the monthly cash
burn compared to the pre-COVID levels. Refer Note 1 (c)
in the Annual Report.
The continued restrictions on domestic and
international travel imposed by Australian state and
Federal Governments and International Governments
including regulatory authorities have resulted in an
unprecedented increase in travel cancellations and the
need to process refunds and future travel credits for
travellers. This has significant impact on Helloworld
Travel’s business and operations primarily the demand
for its services.
There are various procedures in place to manage the
Company’s key risks. The Executive Management Team
(“EMT”) meets regularly to review pertinent risks faced by
Helloworld. Every effort is made to identify and manage
material risks; however, it is the unknown risks that may
adversely affect future performance of the Group.
Currently there is no certainty that demand for
Helloworld Travel’s services will normalise to pre
COVID-19 pandemic levels or how long the recovery
could take, even when domestic and international travel
recommences.
G E N E R A L E C O N O M I C C O N D I T I O N S
Helloworld recognises that travel is subject to key
economic risks, such as currency movements, recession
and consumer confidence. These remain a challenge in
the current uncertain economic environment.
Furthermore, the ongoing restrictions on local and
international travel in response to COVID-19 outbreaks
are expected to have a prolonged disruption to global
economies.
There are also other changes in the macroeconomic
environment which are also beyond the control of Helloworld
Travel and may be exacerbated in an economic recession or
downturn. These include, but are not limited to:
• changes in inflation, interest rates and foreign currency
exchange rates;
• changes in employment levels and labour costs, affecting
the cost structure of the Group;
• changes in aggregate investment and economic output
will have an impact on the Group.
If market conditions continue to deteriorate, Helloworld
Travel may need to take additional measure in response,
resulting in a potential for impairment on the carrying
value of the company’s assets.
S U P P L I E R R I S K
Helloworld’s supply chain consists of many travel providers
and intermediaries. Credit risks exist in this supply chain
which are increased in the current uncertain environment.
A disruption in the relationship with suppliers or failure of
a supplier to meet contractual obligations could result in
adverse reputational impacts on Helloworld Travel or worse,
potentially affect the supplier’s ability to continue trading
with Helloworld.
To the extent suppliers, partners or counter-parties (such
as international airlines, whose operations are substantially
impacted or facing financial stress, could be the drive for
Helloworld to seek a change in terms of engagement Such
circumstances will have an adverse impact on the operations
and financial performance of Helloworld Travel.
39
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
40
C U STO M E R R I S K
C O ST R E D U C T I O N I N I T I AT I V E S
Continued restrictions in international and domestic
travel due to the COVID-19 pandemic has resulted
in damaging disruption to customer bookings and
travel plans. The high volume of cancellation and
refund requests during the COVID-19 crisis has placed
significant burden on the Group’s personnel in attending
to customer requests for travel credits and refunds.
Delays in refunds by suppliers may have an adverse flow
on effect on Helloworld Travel’s operational and financial
performance. Customers may also seek a charge-back
(or reversal) for card purchases. This is likely to have a
continued demand on already reduced resources, with
negative impact on Helloworld Travel’s operational and
financial performance.
W O R K I N G C A P I TA L R E Q U I R E M E N T S
Helloworld Travel’s business model includes payment terms
relating to the pre-payment by customers for travel and
tourism related services including the maintenance of
corporate credit balances, and credit terms between the
Company and its suppliers. If payment terms and supply
change, there is a high probability that customers will seek
refunds (especially in the current economic environment),
receivables become more difficult to collect, potential for
contract assets on balance sheet to become unrecoverable
or suppliers do not meet their contractual obligations. This
could require Helloworld Travel to seek additional working
capital financing. In addition, transactional banking facilities,
including credit card processing facilities, operated by
Helloworld Travel could be withdrawn by the banks or other
or terms and conditions for these facilities renegotiated
unfavourably for the Company.
The company’s working capital position could be affected
if the current economic environment increases the
chance of suppliers not complying with their contractual
obligations. If the Company continues to bear sales
declines as a result of COVID-19 and business operating
expenses remain constant this would place pressure
on Helloworld Travel’s liquidity. In the event that the
Company has insufficient liquidity to manage its working
capital cycle, would severely impact its capability to
continue operating the business in the ordinary course.
Helloworld Travel Limited Annual Report 2021
The company will continue to vigorously monitor its costs
and reduce these where deemed appropriate. These
initiatives are based on several assumptions made with
respect to the company’s ability to achieve and sustain cost-
saving targets.
Further initiatives may be necessary should the effects
of COVID-19 and the continued national and international
border closures remain in place. Given the dynamic nature
of the current environment there is no assurance that the
initiatives put in place will be achieved as envisaged.
F I N A N C I N G R I S K
The Group’s loans incorporate certain market standard
covenants such as interest cover ratio, net leverage
ratio and a minimum level of liquidity. If covenants are
breached, financiers may require that their loans be repaid
immediately, which may have a material adverse effect on
the Group’s future financial performance and position.
H U M A N R E S O U R C E S R I S K
The Group is dependent upon the experience of its
Directors, key senior management and staff generally.
The potential for the loss of key personnel and a high staff
turnover could have an impact on the performance of the
Group’s business in the short term.
The current and ongoing cost reduction initiatives could also
cause disruption to operations and impact on the Group’s
ability to retain high quality staff, operate its business in
the ordinary course, effectively manage operational risks
and take advantage of a recovery in the sector when the
travel restrictions do cease. In addition, while the actions
taken by the Group to preserve cash and Helloworld Travel’s
survival are asserted by the Directors to be appropriate
and consistent with those taken across the industry, labour
relations can be subject to dispute.
While the Group has processes in place to ensure
compliance with applicable labour laws, the overlap of
workplace agreements, awards and industrial relations rules
can give rise to risks of breaches having occurred in the
countries in which the Group operates.
G R O W T H ST R AT E GY E X E C U T I O N A N D B U S I N E S S
M O D E L D I S R U P T I O N
The disruption to the Australian and global economy,
in particular the travel and tourism sectors is likely
to impact upon Helloworld Travel’s ability to drive
its growth agenda in the short to medium term. The
financial performance of investments and the economic
conditions they operate within may result in investment
impairment should the recoverable amount of the
investment fall below the carrying value.
REGULATORY RISK
Regulatory action against the Group under legislation
and government policy may impact on the Group. For
instance; as a retailer of travel and travel-related
products, the Group engages in large promotional and
advertising campaigns and processes employees’ and
customers’ personal information. Further, the Group’s
cancellation and refund policies and procedures could
expose it to regulatory scrutiny. Any media attention,
regulatory scrutiny or other action taken against the
Group globally where it operates, could have adverse
effects on the reputation of the Group including its
operating and financial performance.
Similarly, a variation in law or regulation requiring
Helloworld Travel or any of its businesses to vary the
management of customer deposits may have financial
implications for the Group.
Legislative changes could directly and indirectly alter
consumer demand for and consumer attitudes towards
international or domestic travel.
CLIMATE CHANGE AND SOCIAL SUSTAINABILITY
Transitioning to a lower-carbon economy may require
extensive policy, legal, technology and market changes
to address mitigation and adaptation requirements
related to climate change. Physical risks resulting from
There is uncertainty as to how Helloworld Travel’s
customers will respond to the effects of climate
change and potentially on changes in customer demand.
Helloworld Travel is cognoscente of the potential
environmental and social impact that tourists have on
destinations in Australia and internationally. The Group
recognises that the travel industry can have a positive
and negative impact on tourism destinations and
community and traveller expectations in relation to their
travel experience.
BUSINESS SYSTEMS RISK
Helloworld Travel relies on the performance, reliability and
availability of its information technology, communication
and other business systems. Any damage to or failure of,
Helloworld Travel’s key systems may result in disruptions
to its business (particularly to its online services). Any
failures of, or malicious attacks on, Helloworld Travel’s
business systems or compromise to the security of
data (including personal information) maintained by the
company may similarly impact both Helloworld Travel’s
business and its reputation. Financial penalties for data
breaches can be sizeable and if levied on Helloworld Travel
could result adversely on the reputation and the financial
performance of the Group.
The initiatives taken to reduce cost, including the
continued disruption of COVID-19, could impact on the
information technology, communications and other
business systems.
FINANCIAL RISK
Access to capital is a fundamental requirement to achieve
the Group’s business objectives and to meet its financial
obligations.
The inability to maintain a strong balance sheet or to
secure new capital or credit facilities (from time to
time) at competitive market rates could impact upon
the Group’s operational and financial performance and
the ability to meet its ongoing liquidity needs.
climate change could be event driven with longer-term
There is no guarantee that equity or debt funding will be
shifts in global climate patterns resulting in financial
available to the Group as and when an existing facility
implications for Helloworld Travel. Potentially as
expires or is terminated (e.g. due to an event of default),
indirect impacts from supply chain disruption in travel
or the Group’s ability to refinance that debt facility on
patterns and habits of customers.
reasonable terms.
helloworldlimited.com.au
41
D I R E C TO R S ' R E P O RT
As a borrower of capital, the Group is exposed to
CA P I TA L ST R U C T U R E
fluctuations in interest rates, potentially increasing the
cost of servicing its debt.
Developments in global financial markets due to the
continued impact of COVID-19, may adversely affect the
liquidity of global credit markets and the Group’s access
to those market, in turn could have an adverse effect on
Helloworld Travel’s future financial performance and position.
A G E N T N E T W O R K C L O S U R E
At 30 June 2021, Helloworld Travel had 155,027,845
shares on issue of which the Executive Directors,
Andrew Burnes and Cinzia Burnes, along with their
direct related entities, own 27.22%. Sintack Pty Ltd
and its associates hold 13.31%, QH Tours Limited
(a subsidiary of Qantas Airways Limited) holds
12.4% and FIL Limited holds 9.34% with the remaining
37.73% being held by other shareholders including
Helloworld Travel’s agent network has been an important part
management.
of its growth as a business throughout its corporate history.
A reduction in the size of the agent network may negatively
influence Helloworld Travel’s brand and ability to generate
sales and sales growth in its retail division.
In July/August 2020 the company undertook a capital
raising. The shares issued as a result of the capital
raising increased the total number of shares on issue by
30,307,003 to 155,027,845.
This risk is mitigated by the size of the networks, their
geographic spread and our close management, mentoring and
engagement of our members.
S I G N I F I CA N T E V E N T S A F T E R T H E
B A L A N C E DAT E
P E O P L E
At 30 June 2021, Helloworld Travel has 885 employees
(2020:1,578), the equivalent of 726 full-time employees.
The decrease in the number of employees correlates with
the decrease in revenue, a result of the ongoing impacts of
42
COVID-19.
With the exception of the items described at note 38
of the accompany financial statements, the Directors
are not aware of any matter or circumstance that has
arisen in the interval between 30 June 2021 and the date
of signing of this report that has significantly, or may
significantly, affect the operations of the Group, the
results of the operations of the Group or the state of the
Group’s affairs in future financial years.
Of the total number of employees across the Group at year
end 64.6% (2020: 69.6%) are female.
L I K E LY D E V E L O P M E N T S
Employee expenditure excluding government subsidies for
the year ended 30 June 2021 decreased by $52.3 million
or 39% to $80.7 million, as a result of the reduction in the
number of employees, the reduction in working hours and
salary reductions for senior executives.
Helloworld Travel was eligible to receive wage subsidies
in Australia and New Zealand from the respective national
governments. By comparison employee benefit expense
was $139.4 million in FY19.
In the opinion of the Directors, it would prejudice the
interests of the Group to provide additional information,
except as described in this report, relating to likely
developments in the operations of the Group in
subsequent financial years.
R E G U L AT I O N
The Group’s operations are not subject to any significant
The majority of the Group’s employees are based in
environmental regulations under Commonwealth or State
Australia, however, the Group has employees in other
legislation.
countries.
The FTE breakdown by country as at 30 June 2021 is below:
Australia
New Zealand
Fiji
India
Other
TOTAL
595
(76%)
88
24
10
9
726
(11%)
(10%)
(2%)
(1%)
-
Helloworld Travel Limited Annual Report 2021
Helloworld Travel is an accredited member of the
International Air Transport Association (IATA).
Ongoing accreditation allows the company to sell
international and/or domestic airline tickets on behalf
of IATA member airlines. It also allows access to IATA’s
Billing and Settlement Plan (BSP), which is an efficient
interface for invoicing and payment between the travel
agent and airlines.
I N D E M N I F I CAT I O N A N D I N S U R A N C E
O F D I R E C TO R S A N D O F F I C E R S
I N D E M N I F I CAT I O N
The Company has agreed to indemnify the Directors
and executive officers (or former Directors or
executive officers) of the Company against:
(a)
any liability (other than for legal costs) incurred
by the Director or executive officer;
(b)
any legal costs reasonably incurred by the
Director or executive officer in connection
with;
(i)
any claim brought against or by the Director
or executive officer of the Company; or
(ii)
(c)
any investigative proceeding, including
(without limitation) in obtaining legal advice for
the purposes of responding to, preparing for or
defending any of the above; and
any legal costs reasonably incurred by the
Director or executive officer in or in connection
with the discharge of the Director or executive
officer’s duties as an officer of the Company,
provided that the advice is obtained in
accordance with the Board Charter which
requires approval from the Chairman who
will facilitate the obtaining of the advice and,
where appropriate, disseminate the advice to
all Directors.
I N S U R A N C E O F D I R E C TO R S A N D O F F I C E R S
In accordance with its Constitution the Company, to
the maximum extent permitted by law, indemnifies
each Director and Company Secretary of Helloworld
against any liability incurred by that person as an
officer of the Company. Liabilities covered include
legal costs that may be incurred in defending civil
or criminal proceeding that may be brought against
the officers in their capacity as officers of the
Company or its controlled entities.
During the year, Helloworld paid a premium for
Directors’ and Officers’ liability insurance policies,
which cover all Directors and Officers of Helloworld.
Details of the amount of premium paid in respect of
the Directors’ and Officers’ liability insurance has
not been disclosed as, in accordance with normal
commercial practice, such disclosure is prohibited
under the terms of the contract.
helloworldlimited.com.au
43
D I R E C TO R S ' R E P O RT
LETTER FROM THE REMUNERATION
COMMITTEE CHAIRMAN
Dear Shareholder,
I am pleased to present the Remuneration Report for the financial year ended 30 June 2021 for Helloworld Travel
Limited (the Group).
G R O U P P E R F O R M A N C E A N D R E M U N E R AT I O N O U TC O M E S I N 2 0 2 1
FY21 turned into a very challenging period for the business and the industry at large. Eighteen months has
passed since the World Health Organisation declared COVID-19 a global pandemic. The world reacted with
international border closures to slow the outbreak and alleviate the pressure on health systems and save lives.
With the arrival of vaccinations has come the hope that life would return to some semblance of normality,
however international and state borders closures remain in place while the infection rates of COVID-19 remain
high. These unprecedented times have challenged businesses to review how they remunerate their employees.
During this difficult time, our senior Executives agreed to salary reductions in order to keep costs at a long-term
sustainable level given Helloworld's reduced revenues. These personal sacrifices will enable the Company to take
advantage of growth opportunities as restrictions on travel ease and global vaccine programs continue to roll out.
These salary reductions have continued into FY22 in various forms.
44
During this period, we introduced measures to support our employees with initiatives to promote health and
mental wellbeing, access to wellness information and mental health tips and techniques.
For the second consecutive year there were no short-term or long-term incentive payments awarded to KMP and
no LTIP shares allocated, with several previous participants seeing allocations either lapsed or forfeited.
C OV I D - 1 9 R E L AT E D R E T E N T I O N B E N E F I T P L A N
In recognition of the continued effort and sacrifices, the Company issued shares to a number of staff, none of
whom are Directors. The Company implemented the COVID-19 Related Retention Benefit Plan which is intended
to act as a retention mechanism while conserving cash. On 18 December 2020, Helloworld Travel granted shares
under this plan to these employees in recognition of their hard work. Shares were issued for nil consideration. The
shares had already been issued under previous schemes but not vested, and now have new participants and a new
non-market vesting condition of remaining an employee of Helloworld Travel through to the vesting date of 1 July
2021. All employees remained with the business at 1 July 2021 and as such, the vesting condition was satisfied.
The Board recommends the Remuneration Report to you and asks that you support our remuneration policies and
practices by voting in favour of this Report at our 2021 Annual General Meeting.
Yours faithfully
Garry Hounsell
Chairman of the Remuneration Committee
Chairman of Helloworld Travel Limited
6 September 2021
Helloworld Travel Limited Annual Report 2021
REMUNERATION REPORT
(AUDITED)
This 2021 Remuneration Report outlines the
remuneration arrangements for the KMP of the Group in
accordance with the requirements of the Corporations
Act 2001 and its Regulations.
The report contains the following sections:
1 R E M U N E R AT I O N G OV E R N A N C E &
F R A M E W O R K
1.1 Persons to whom this report relates
1.2 Remuneration governance
1.3 KMP executive remuneration framework
1.4 Executive remuneration mix
2 E X E C U T I V E R E M U N E R AT I O N
2.1 Group performance and remuneration
outcomes for 2021
2.2 Executive remuneration
2.3 Long Term Incentive Plan (LTIP)
2.4 Executive shareholdings
2.5 Executive service agreements
3 N O N - E X E C U T I V E D I R E C TO R
R E M U N E R AT I O N
3.1 Non-Executive Director remuneration
governance
3.2 Non-Executive Director remuneration structure
3.3 Non-Executive Director remuneration
3.4 Non-Executive Director shareholdings
45
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
1 REMUNERATION GOVERNANCE & FRAMEWORK
1 . 1
P E R S O N S TO W H O M T H I S R E P O RT R E L AT E S
This report covers the remuneration arrangements for the KMP of the Group. KMP are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the Group, directly
or indirectly, including any Director (whether executive or otherwise). For the purposes of this report, the term
‘executive’ encompasses the Executive Directors and the Executive KMP.
Directors and other KMP disclosed in this report are:
46
Name
Non-Executive Directors
Garry Hounsell
Mike Ferraro
Andrew Finch
Executive Directors
Andrew Burnes AO
Cinzia Burnes
Executive KMP
David Hall
Nick Sutherland
Rohan Moss
Chris Hunter
Position
Chairman and Non-Executive Director
Non-Executive Director
Non-Executive Director
Chief Executive Officer and Managing Director
Group General Manager, Wholesale & Inbound and Executive Director
Chief Financial Officer
Group General Manager – Corporate
General Manager – Government Services
General Manager – New Zealand
1 . 2
R E M U N E R AT I O N G OV E R N A N C E
The Remuneration Committee of the Board is responsible for reviewing and assessing the remuneration policies
and making recommendations to the Board in respect of Director and KMP remuneration in line with current market
conditions. The overall objective is to ensure maximum stakeholder benefit whilst retaining high quality, high
performing Directors and KMP executive team. Garry Hounsell (Chairman), Mike Ferraro and Andrew Finch were the
members of the Remuneration Committee during the year.
Under the terms of the Remuneration Committee Charter, the majority of the Committee members must be
independent Directors and the Chair of the Committee must be an independent Director. All members of the
Committee are non-executive Directors.
To ensure the Committee is fully informed when making decisions on remuneration, it may seek external remuneration
advice. During the reporting period, the Committee did not engage any consultants to provide recommendations in
relation to remuneration.
Helloworld Travel Limited Annual Report 2021
1 . 3
K M P E X E C U T I V E R E M U N E R AT I O N F R A M E W O R K
The purpose of the Group’s remuneration framework for KMP executives embodies the following principles:
• provide competitive rewards to attract and retain high calibre executives;
• structure a portion of executive remuneration to be ‘at risk,’ dependent upon meeting pre-determined performance
benchmarks;
• link executive rewards to shareholder value; and
• establish appropriate and demanding performance hurdles in relation to variable executive remuneration..
To achieve these principles, the remuneration arrangements of the CEO and KMP executives are made up of one or more
of the following elements:
F I X E D A N N U A L R E M U N E R AT I O N ( FA R )
FAR is set to attract, retain and motivate talented individuals to deliver on the Group’s strategy, the Board reviews individual
performance, expertise and experience whilst considering external benchmarking to determine executive’s FAR.
Executives have the option of receiving their FAR in a variety of forms including cash and fringe benefits. It is intended that
the way FAR is paid will be optimal without creating unnecessary costs for the Group.
As a result of the continued impact of COVID-19 on the travel sector the salary reductions implemented for key executives
in March 2020 continued into FY21 in various forms.
47
C OV I D - 1 9 R E L AT E D R E T E N T I O N B E N E F I T P L A N
During this unprecedented period the Helloworld leadership team worked hard, including making personal sacrifices in order
to stabilize the business. In recognition of this, the Company implemented the COVID-19 Related Retention Benefit Plan
which is intended to act as a retention mechanism while conserving cash. On 18 December 2020, Helloworld Travel granted
shares under this plan to these employees in recognition of their hard work. Shares were issued for nil consideration and have
a non-market vesting condition of remaining an employee at Helloworld Travel through to the vesting date of 1 July
2021.
S H O RT T E R M I N C E N T I V E ( ‘ AT R I S K ’ R E M U N E R AT I O N )
Short term ‘at risk’ awards are correlated to the individual’s performance against their KPIs and the Group’s financial
performance. In FY20 and FY21, the Group was significantly impacted by the effects of COVID-19 resulting in no STI
incentives awarded due to financial targets for short term incentives were not met.
L O N G T E R M I N C E N T I V E ( ‘ AT R I S K ’ R E M U N E R AT I O N )
The long term ‘at risk’ components for certain KMP are based on the Group’s performance against Total Shareholder
Return metrics (threshold) and key financial and non-financial measures. There were no new LTIP programs
implemented in FY21.
1 . 4
E X E C U T I V E R E M U N E R AT I O N M I X
The Board aims for an equilibrium between the various elements of remuneration to attract, retain and motivate the
proper talent to deliver on the Group’s strategy while linking pay to performance via incentive plans enticing executives to
achieve results beyond the standard expected in the normal course of ongoing employment.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
2
EXECUTIVE REMUNERATION
2 . 1
G R O U P P E R F O R M A N C E A N D R E M U N E R AT I O N O U TC O M E S F O R 2 0 2 1
48
The table below provides relevant Group performance information for the key financial measures over the last five years;
Net (loss)/profit after tax
Underlying EBITDA
2021
$’000
2020
$’000
2019
$’000
2018
$’000
2017
$’000
(35,885)
(69,985)
38,043
30,830
21,591
(14,062)
44,042
73,526
N/A
N/A
Underlying EBITDA has been calculated including depreciation on right of use assets and finance expense on lease
liabilities to ensure consistency with previous periods.
The factors that are considered to affect total shareholders return (‘TSR’) are summarised below:
2021
2020
2019
2018
2017
Basic earnings / (loss) per share (EPS cents)
(23.3)
(56.5)
Total dividends declared (cents per share)
Opening share price at 1 July ($)
Closing share price at 30 June ($)
Total shareholder return (%)
-
2.29
1.67
9.0
5.07
2.29
31.4
20.5
4.80
5.07
26.1
18.0
4.04
4.80
18.8
14.0
3.08
4.04
(37.1)% (53.1)%
9.9%
23.3%
35.7%
TSR for FY2021 and FY2020 reflects the impacts of COVID-19. Returns in 2020 contrast dramatically with increases
in key metrics including EBITDA, NPAT and EPS between 2016 and 2019.
Helloworld Travel Limited Annual Report 2021
2 . 2
E X E C U T I V E R E M U N E R AT I O N
Short term benefits
Post-employment
benefits
Share based
payments
Termination
benefits
Salary
($)
Other
($)
Leave
($)
Superannuation
($)
LTIP/ COVID-19 Related
Retention Plan
($)
Termination
payments
($)
Performance
related
percentage
Total
($)
A Burnes (CEO and Managing Director)
2021
2020
373,423
543,154
-
-
26,154
29,849
21,694
15,752
C Burnes (Group General Manager – Wholesale & Inbound and Executive Director)
2021
2020
330,289
514,212
-
-
36,058
22,638
D Hall (CFO and Group Company Secretary)
Commenced effective 2 December 2019
2021
2020
360,000
6,275
7,692
268,039
-
3,408
N Sutherland (Group General Manager – Corporate)
2021
2020
336,462
6,275
1,231
449,905
-
5,193
R Moss (General Manager - Government Services)
21,694
15,752
21,694
15,763
21,694
21,003
-
-
-
-
184,500
-
123,000
52,000
-
-
-
-
-
-
-
-
421,271
588,755
388,040
552,602
580,161
287,210
0%
0%
0%
0%
0%
0%
488,662
528,101
0%
9.8%
2021
259,485
6,275
1,797
21,694
98,400
-
387,651
0%
C Hunter (General Manager - New Zealand)1
A$ equivalent (Partial year, Part time)
2021
135,442
-
12,940
4,270
FORMER KMP (Were not considered KMP for FY21)
M Burnett (CFO and Group Company Secretary)
(Resigned effective 20 December 2019) (Were not considered KMP for FY21)
2020
260,192
-
(5,563)
10,501
J Constable (Group General Manager – Retail & Commercial)
(Resigned effective 10 July 2020) (Were not considered KMP for FY21)
-
-
-
152,653
0%
49
-
265,130
0%
2020
520,141
340,782
1,124
-
180,000
-
1,042,047
17.3%
S McKearney (Group General Manager – New Zealand)
(Resigned effective 9 September 2020) (Were not considered KMP for FY21)
2020
362,892
-
-
10,887
-
-
373,779
0%
2021 TOTAL
1,795,101
18,825
85,872
2020 TOTAL
2,918,535
340,782
56,649
112,740
89,658
405,900
232,000
- 2,418,438
-
-
3,637,624
6.4%
1. Payments made to Chris Hunter are in local currency and converted at average exchange rates.
On 18 December 2020, Helloworld Travel granted 905,000 shares under the omnibus incentive plan mechanism. The
shares were issued to a number of staff, none of whom are Directors. All those personnel have been working hard for a
sustained period since March 2020. Shares were issued for nil consideration and have a non-market vesting condition
of remaining an employee at Helloworld Travel through to the vesting date of 1 July 2021.
The fair value of the shares issued under the plan is based on the number of shares issued at the closing price on
18 December 2020 which was $2.46 per share and brought to account over the vesting period.
Short term benefits
Other - Is car parking grossed up for FBT purposes and for John Constable Other is comprised of housing, motor
vehicle and travel allowances grossed up for FBT purposes.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT
2 . 3
L O N G T E R M I N C E N T I V E P L A N ( LT I P )
A loan based LTIP was established during 2017. The overall objectives of the LTIP was to lock in key leaders for
an extended period, whilst at the same time, incentivising them to generate superior long term returns to our
shareholders.
No shares have been issued or allocated to KMP under this loan funded LTIP during the current 2021 financial year
(2020: nil).
In relation to the shares previously granted to Nick Sutherland, the Board determined that the share price-based
performance criteria KPI was not achieved and accordingly these lapsed.
The loan provided to participants equals the market value of the shares at the time of issue. As at 30 June 2021, the
loans balance was nil due to the unvested LTIP shares being forfeited and recycled under the Helloworld Travel Limited
Omnibus Incentive Plan (30 June 2020: $2.9 million).
Set out below is the summary of the shares and loan value with the KMP:
50
Year ended 30 June 2021
Number of LTIP shares
Loan Value $
Name
John Constable
Nick Sutherland
TOTAL
Opening
Balance
500,000
200,000
700,000
Forfeited /
Lapsed Closing Balance
Opening
Balance
Movement
Closing
Balance
(500,000)
(200,000)
(700,000)
-
-
-
2,184,028
(2,184,028)
678,697
(678,697)
2,862,725
(2,862,725)
-
-
-
Year ended 30 June 2020
Number of LTIP shares
Loan Value $
Name
Michael Burnett
Simon McKearney
John Constable
Nick Sutherland
TOTAL
Opening
Balance
500,000
150,000
500,000
200,000
Addition Closing Balance
500,000
150,000
-
-
-
-
500,000
200,000
700,000
1,350,000
650,000
Opening
Balance
Movement
1,349,427
(1,349,427)
404,828
2,265,421
711,254
(404,828)
(81,393)
(32,557)
Closing
Balance
-
-
2,184,028
678,697
4,730,930
(1,868,205)
2,862,725
At the Helloworld Travel Annual General Meeting held on 14 November 2019, the Group’s shareholders approved the
adoption of the Helloworld Travel Limited Omnibus Incentive Plan (the Plan). Under the Plan, the Group can reward and
incentivise employees, directors (including both executive and non-executive directors), contractors and consultants by
offering shares, performance rights or options.
Helloworld Travel Limited Annual Report 2021
50
Helloworld Travel Ltd Annual Report 2021 2 . 4
E X E C U T I V E S H A R E H O L D I N G S
The number of shares in the company held during the financial year by each director and other members of KMP of the
Group, including their personally related parties, is set out below:
EXECUTIVE
Andrew Burnes
Cinzia Burnes
Number of
shares at
1 July 2020
10,495,531
10,138,014
-
-
The Burnes Group Pty Limited as trustee for
The Burnes Group Service Trust
18,530,105
3,030,303
Longbush Nominees Pty Limited as trustee for
the Burnes Superannuation Fund
John Constable
David Hall
Nick Sutherland
Rohan Moss
TOTAL
10,000
500,000
180,000
200,000
-
-
-
23,333
-
-
40,053,650
3,053,636
Additions Shares held Transferred
Fortified/
Lapsed
Number of
shares at
30 June 2021
-
-
-
-
-
-
-
9,160
9,160
-
-
(1,212,121)
1,212,121
-
-
-
-
10,495,531
10,138,014
20,348,287
1,222,121
-
-
-
-
-
(500,000)
-
-
203,333
(200,000)
-
-
9,160
(700,000)
42,416,446
Andrew Burnes and Cinzia Burnes each have a beneficial interest in The Burnes Group Pty Limited which acts as the Trustee
of The Burnes Group Service Trust. They also have an interest in Longbush Nominees Pty Limited which acts as the Trustee
of the Burnes Superannuation Fund of which they are both members. During the year 1,212,121 shares held in The Burnes
Group Pty Limited as trustee for The Burnes Group Service Trust were transferred to Longbush Nominees Pty Limited as
trustee for the Burnes Superannuation Fund.
The 500,000 shares held by John Constable were forfeited on his resignation and Nick Sutherland’s shares lapsed under the
LTIP during the year.
51
Each of Andrew Burnes, Cinzia Burnes (via The Burnes Group Service Trust) and David Hall participated in the Group’s
Institutional Placement and Accelerated Non-Renounceable Entitlement Offer (together, the Offer).
2 . 5
E X E C U T I V E S E RV I C E A G R E E M E N T S
Remuneration and other terms of employment for KMP are formalised in continuing contracts of employment. These
contracts specify the components of remuneration, benefits and notice periods. All contracts may be terminated by
either party subject to notice periods and subject to termination payments or benefits as detailed in the table below:
EXECUTIVE
Notice period
to be given by
KMP
Notice period
to be given by
the Company
Termination payments or benefits payable if
termination is by the Company
Andrew Burnes CEO and Managing Director
6 months
6 months
In accordance with normal statutory entitlements
Group General Manager - Wholesale
Cinzia Burnes
& Inbound and Executive Director
6 months
6 months
In accordance with normal statutory entitlements
David Hall
CFO and Group Company Secretary
6 months
6 months
In accordance with normal statutory entitlements
Nick Sutherland Group General Manager – Corporate
6 months
6 months
In accordance with normal statutory entitlements
General Manager –
Rohan Moss
Government Services
3 months
3 months
In accordance with normal statutory entitlements
General Manager –
Chris Hunter
New Zealand
3 months
3 months
In accordance with normal statutory entitlements
helloworldlimited.com.au
51
helloworldlimited.com.au D I R E C TO R S ' R E P O RT
3 NON-EXECUTIVE DIRECTOR REMUNERATION
3 . 1
N O N - E X E C U T I V E D I R E C TO R R E M U N E R AT I O N G OV E R N A N C E
The Remuneration Committee is responsible for reviewing and recommending remuneration arrangements to the
Board pertaining to Directors. The Board seeks to set aggregated remuneration levels for Directors, providing the
Group the threshold to attract and retain Directors of the highest calibre, in line with shareholders’ expectations.
In compliance with best practice corporate governance, Non-Executive Director remuneration is structure d separately
and is distinct from executive remuneration; as detailed below.
3 . 2
N O N - E X E C U T I V E D I R E C TO R R E M U N E R AT I O N ST R U C T U R E
The aggregate remuneration of Non-Executive Directors is determined and voted on at a general meeting. At the 2010
Annual General Meeting shareholders approved an aggregate remuneration of $1,500,000 per year. The amount of
aggregate remuneration to be approved by shareholders, together with the fee structure, is reviewed annually. From
52
time-to-time the Board considers external advice from consultants as well as for fees paid to Non-Executive Directors
for comparable companies. The Board is not proposing any change to the aggregate level of remuneration. A breakdown
of Director fees is below.
Role
Fee
Summary
Chairperson
$200,000
The Chairman’s fees were reduced to zero from 11 March 2020 to 30 June
2020. From July 2020 to December 2020 the Chairman’s fee was increased
by 50%. From January 2021 to June 2021 the Chairman fee was increased to
the pre COVID-19 level. In recognition of the additional time and commitment
required (inclusive of Committee fees).
Non-Executive Director
$100,000
Non-Executive Directors’ fees were reduced to zero from 11 March 2020 to
30 June 2020. From July 2020 to December 2020 the fee was increased
by 50%. From January 2021 to June 2021 the fee was increased to the pre
COVID-19 level. In recognition of the time commitment and service to the
Group’s Board.
Committee Fee –
$25,000
From 11 March 2020 to 30 June 2020 the Committee fee was reduced
Chairperson Audit
& Risk Committee
to zero. July 2020 the fee was increased by 50%. January 2021 the fee was
increased to the pre COVID-19 level. The additional fee paid to the
Chairperson of the Audit & Risk Committee. The Committee fee is not paid
to the Board Chairman.
The remuneration of Non-Executive Directors for the years ended 30 June 2021 and 30 June 2020 is detailed in the
following statutory table.
The process for review of Non-Executive Directors’ performance is explained in the Corporate Governance Statement.
Helloworld Travel Limited Annual Report 2021
3 . 3
N O N - E X E C U T I V E D I R E C TO R R E M U N E R AT I O N
NON-EXECUTIVE DIRECTOR
Garry Hounsell (Chairman)
2021
2020
Mike Ferraro
2021
2020
Andrew Finch
2021
2020
2021 TOTAL
2020 TOTAL
Short-term
benefits
Post-employment
benefits
Cash salary
($)
Superannuation
($)
143,808
154,385
88,943
91,346
-
-
232,751
245,731
14,289
13,812
8,930
8,678
-
-
23,219
22,490
Total
($)
158,096
168,197
97,874
100,024
-
-
255,970
268,221
Since his appointment to the Board on 1 January 2017, Andrew Finch has not received Director fees. This is by
agreement; no fees are paid to Qantas Airways Limited for his Directorship.
During the reported periods material changes were made in respect of Director fees. Commencing 1 July 2021, the
Chairman of the Board and the Chairman of the Audit & Risk Committee agreed to a reduction in Director's fees of 25%:
53
3 . 4
N O N - E X E C U T I V E D I R E C TO R S H A R E H O L D I N G S
NON-EXECUTIVE DIRECTOR
Garry Hounsell (Chairman)
Mike Ferraro
Andrew Finch
TOTAL
Number of
shares at
1 July 2020
138,500
17,569
-
156,069
Movement
15,390
1,953
-
17,343
Number of
shares at
30 June 2021
153,890
19,522
-
173,412
Both Garry Hounsell and Mike Ferraro participated in the Offer, acquiring 15,390 and 1,953 shares, respectively.
This concludes the remuneration report, which has been audited.
helloworldlimited.com.au
D I R E C TO R S ' R E P O RT - AU D I TO R ' S I N D E P E N D E N C E D E C L A R AT I O N
54
AU D I TO R I N D E P E N D E N C E
On 16 February 2021 Helloworld Travel announced
the appointment of Ernst & Young as auditor of the
Company. The appointment follows the conclusion
of a tender process. In accordance with the
process the Company has received the resignation
of PricewaterhouseCoopers as auditor and the
Australian Securities and Investment Commission’s
consent for the resignation. Ernst & Young will hold
office until the Company’s Annual General Meeting
at which shareholder approval will be sought for the
reappointment of Ernst & Young.
The Directors received the declaration of
independence on page 55 from Ernst & Young,
the auditor of Helloworld Travel. This declaration
confirms the auditor’s independence and forms part
of the Directors’ Report.
N O N - A U D I T S E RV I C E S
During the year the Company’s auditors performed
minimal other services in addition to their statutory
duties. Consistent with written advice provided by
the Audit & Risk Committee, the Directors have
resolved and are satisfied that the provision of
these non-audit services is compatible with, and
did not compromise, the general standard of
independence of auditors imposed by the auditor
independence requirements in the Corporations
Act 2001. All non-audit services were subject to
the corporate governance procedures adopted
by the Company and reviewed by the Audit & Risk
Committee to ensure no impact on the integrity and
objectivity of the auditor. The non-audit services
provided do not undermine the general principles
relating to auditor independence, as set out in APES
110 Codes of Ethics for Professional Accountants,
as no own audit work was reviewed by the auditor.
The lead auditor’s independence declaration, as
required under section 307C of the Corporations
Act 2001, is set out on page 55 and forms part of
the Directors’ Report for the financial year ended
30 June 2021. Details of the amounts paid to Ernst
& Young for audit and non-audit services are set out
in note 27 of the Financial Statements on page 102
of the Financial Report.
R O U N D I N G
The amounts contained in this Directors’ Report
and in the Financial Report have been rounded to
the nearest $1,000 (where rounding is applicable)
under the option available to the Company under
Australian Securities & Investments Commission
ASIC Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191.
Made in accordance with a resolution of the Directors.
Garry Hounsell
Chairman
Helloworld Travel Limited
Melbourne, 6 September 2021
Helloworld Travel Limited Annual Report 2021
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Auditor’s independence declaration to the directors of Helloworld Travel
Limited
As lead auditor for the audit of the financial report of Helloworld Travel Limited for the financial year
ended 30 June 2021, I declare to the best of my knowledge and belief, there have been:
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Helloworld Travel Limited and the entities it controlled during the
financial year.
Ernst & Young
Brett Croft
Partner
Melbourne
6 September 2021
55
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
helloworldlimited.com.au
56
S E C T I O N 2
CORPORATE GOVERNANCE STATEMENT
OV E RV I E W
The Board of Helloworld Travel Limited (the Company)
governs the business on behalf of shareholders with the
prime objective of protecting and enhancing shareholder
value. The Board is committed to the highest
standards of ethics and integrity and ensures that
senior management run the Group in accordance with
these standards. The Board monitors the Company’s
governance framework and practices to ensure it fulfils
its corporate governance obligations.
This statement has been approved by the Board and
outlines the main corporate governance practices
employed by the Company. The Company endorses
the ASX Corporate Governance Principles and
Recommendations (4th Edition) released in February
2019 by the ASX Corporate Governance Council (ASX
CGP) and where it has not adopted a recommendation, a
detailed explanation is provided.
• Board and Executive Management development and
succession planning;
• Approving the annual operating budget;
• Approving and monitoring the progress of major capital
expenditure, capital management and acquisitions/
divestitures;
• Monitoring compliance with legal, tax and regulatory
obligations;
• Reviewing and ratifying systems of risk management,
governance, internal compliance and controls, code
of ethics and conduct, continuous disclosure, legal
compliance and other significant corporate policies;
• Reviewing the effectiveness of the Company’s risk
management systems;
• Approving and monitoring financial and other reporting
to the market; and
• Appointment, reappointment or replacement of the
external auditor.
This statement is current at 6 September 2021.
Day-to-day management of the Company’s affairs and
1 L AY S O L I D F O U N DAT I O N S F O R
the implementation of the corporate strategy and policy
initiatives are formally delegated by the Board to the
M A N AG E M E N T A N D O V E R S I G H T
CEO, the CFO and other senior executives. Authority for
these matters is delegated to the CEO, CFO and senior
management under the Delegations of Authority Policy
and the delegations are subject to certain specified value
thresholds. These matters include:
• Incurring budgeted and unbudgeted operating
expenditure;
• Incurring budgeted and unbudgeted capital expenditure;
• Write-downs, bad debts, asset or equity disposals and
acquisitions; and
• Approval of entry into contracts.
Prior to a Director’s appointment, the Board ensures that
appropriate checks including background and reference
checks are conducted, which may be conducted by external
consultants and by other Directors of the Company.
Candidates also meet with each existing Director prior to
the Board’s decision to appoint them.
To ensure that Directors clearly understand the
requirements of the role, service contracts and formal job
descriptions are provided to them.
The relationship between the Board and senior
management is critical to the Company’s long-term
success. The Board is responsible for the performance of
the Company in both the short and longer term and seeks
to balance competing objectives in the best interests of
the Group as a whole. The key aims of the Board are to
ensure that the Company is properly managed and has an
appropriate corporate governance structure to ensure
the protection of shareholder value.
The role and responsibilities of the Board, the Chairman
and individual Directors are set out in the Company’s
Board Charter. A copy of the Board Charter is available
from the Corporate Governance section of the
Company’s website at www.helloworldlimited.com.au.
The Board’s key responsibilities and matters expressly
reserved to the Board are set out in the Board Charter
and include:
• Setting the strategic direction of the Company and
monitoring the implementation of that strategy by
management;
• Oversight of the Company, including its control and
accountability systems;
• Appointing and removing the CEO, CFO and Company
Secretary;
56
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au S E N I O R E X E C U T I V E P E R F O R M A N C E
With the assistance of the Remuneration Committee, the
Chairman undertakes an annual review of the performance
of the CEO against key performance indicators.
The CEO reviews the performance of his direct reports
against key performance indicators and reports this to
the Remuneration Committee.
2 ST R U C T U R E O F T H E B OA R D
B O A R D C O M P O S I T I O N
The Directors determine the composition and size of the
Board in accordance with the Company’s Constitution.
The Constitution empowers the Board to set upper and
lower limits with the number of Directors not permitted
to be less than three. There are currently five Directors
appointed to the Board.
Under the Board Charter, the appointment and removal of
the Company Secretary is the responsibility of the Board.
The Company Secretary reports directly to the Chairman
in relation to all matters relating to the proper functioning
of the Board.
The Company uses a Board Skills Matrix to ensure that
its membership includes an appropriate mix of skills,
experience and expertise and to assist in identifying the
skills most desired in potential candidates for appointment
to the Board. The matrix is also a tool for identifying
professional development opportunities for existing
Directors to develop and maintain the skills and knowledge
required to effectively perform their role as Directors.
Board Skills Matrix
Travel Industry Experience - Australia
Travel Industry Experience - International
Franchise Operations
Technology & Digital Economy
Brand Development, Marketing
Governance & Compliance
Listed Company Experience
Relationships/Stakeholder Management
Remuneration, Human Resources
Legal
Wide Industry Experience
Financial Experience
Strategic Planning & Risk
Health & Safety
Number out
of 5 directors
4
4
2
3
4
4
4
5
5
3
4
3
5
5
Further detail regarding the Directors’ qualifications,
special responsibilities, skills, experience and expertise
(including the period of office held by each Director) is set
out in the Directors’ Report on pages 22 to 25.
D I R E C TO R I N D E P E N D E N C E
As at 30 June 2021, based on the factors relevant to
assessing the independence of Directors included in the
ASX CGP, two Directors, Garry Hounsell and Mike Ferraro,
are deemed to be independent.
The remainder of the Board is not independent for the
following reasons:
• Andrew Finch is an executive of Qantas, the ultimate
holding company of QH Tours Limited, a substantial
shareholder of Helloworld Travel Limited and a
company having a material business relationship with
the Company as a supplier of product and a customer
for distribution services;
• Andrew Burnes is the Company’s Chief Executive
Officer and Managing Director, and a substantial
shareholder of the Company; and
• Cinzia Burnes is the Company’s Group General Manager
- Wholesale & Inbound, Executive Director and a
substantial shareholder of the Company.
The length of each Directors’ tenure as a director is set
out in the Directors’ Report on pages 22 to 25.
57
I N D E P E N D E N T D E C I S I O N M A K I N G
During the reporting period, the role of Chairman was
held by Garry Hounsell. Mr Hounsell is an independent
director of the Company.
For the whole of the year Andrew Finch was the
nominated member to the Board by QH Tours Limited.
Mr Finch brought to the Board the requisite skills which
are complementary to those of the other Directors and
enabled him to adequately discharge his responsibilities
as a Non- Executive Director.
As Executive Directors, Andrew Burnes in his role as CEO
and Managing Director and Cinzia Burnes in her role as
Group General Manager - Wholesale & Inbound, are not
considered by the Board to be Independent Directors.
All Directors bring independent judgement to bear on
their decisions.
57
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au
C O R P O R AT E G O V E R N A N C E STAT E M E N T
The materiality thresholds used to assess Director
independence are set out in the Board Charter. The Board
believes that the interests of the shareholders are best
served by:
• the current composition of the Board which is regarded
as balanced with a complementary range of skills,
diversity and experience as detailed in the Directors’
The terms of reference, role and responsibility of the
Nominations and Governance Committee are consistent
with ASX CGP 2.1 except that the majority are not
Independent Directors. The Chairman of the Committee is
an independent Director and the Committee members are
considered to have the appropriate experience to serve
on the committee.
Report; and
• the Independent Directors providing an element of
balance as well as making a considerable contribution in
their fields of expertise.
The following measures are in place to ensure the
decision making process of the Board is subject to
independent judgement:
• a standing item on each Board Meeting agenda requires
Directors to focus on and declare any conflicts of
interest in addition to those already declared;
• Directors are permitted to seek the advice of
independent experts at the Company’s expense, subject
to the approval of the Chairman;
• all Directors must act at all times in the interests of the
Company; and
• Directors meet regularly without management present.
Adoption of these measures ensures that the interests of
shareholders, as a whole, are not jeopardised by a lack of
independence.
58
A majority of the Board are not independent and the
Company recognises that this is a departure from
Recommendation 2.4 of the ASX CGP.
N O M I N AT I O N S A N D G OV E R N A N C E C O M M I T T E E
The company has a Nominations & Governance
Committee. It’s key responsibilities are the nomination,
appointment and re-election of directors and are set out
in the Nominations and Governance Committee’s charter,
which is available in the Corporate Governance section of
the Company’s website.
The following Directors were members of the
Nominations and Governance Committee:
• Garry Hounsell (Chairman)
• Andrew Burnes
• Cinzia Burnes
• Mike Ferraro
• Andrew Finch
Details of these Directors’ qualifications, their
attendance at Nominations and Governance Committee
meetings, and the number of meetings held during FY21
are set out in the Directors’ Report on pages 22 to 26.
58
R E M U N E R AT I O N C O M M I T T E E
During the year, the following Non-Executive Directors
were members of the Remuneration Committee:
• Garry Hounsell (Chairman)
• Mike Ferraro
• Andrew Finch
Details of these Directors’ qualifications, their
attendance at Remuneration Committee meetings, and
the number of meetings held during FY21 are set out in
the Directors’ Report on pages 22 to 26.
The Board seeks to ensure that collectively its
membership represents an appropriate balance
between Directors with experience and knowledge of
the Company and Directors with an external or fresh
perspective. It reviews the range of expertise of its
members on a regular basis and seeks to ensure that it
has operational and technical expertise relevant to the
operations of the Company.
Directors are nominated, appointed and re-elected
to the Board in accordance with the Board’s policy on
these matters set out in the Charter, the Company’s
Constitution and the ASX Listing Rules. In considering
appointments to the Board, the extent to which the skills
and experience of potential candidates complement
those of the Directors in office is considered along with
an assessment of the nature of the skills, experience,
expertise, diversity and other attributes which would
benefit the Board in fulfilling its responsibilities.
B OA R D P E R F O R M A N C E
The Board undertakes an annual self-assessment of its
collective performance and the performance of its
committees, by way of a series of questionnaires. The
results are collated and discussed at a Board meeting and
any action plans are documented together with specific
performance goals which are agreed for the coming year.
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au The outcomes from this Board and Committee
Governance section of the Company’s website and the
performance review were:
terms are consistent with ASX CGP4.
• That the Board was functioning well with very open
In accordance with this policy and ASX CGP4, the Board
communication between management and the Board;
has established the following measurable objectives in
• The mix of skills and experience of the Board is
relation to gender diversity:
appropriate for the size and complexity of the company
with all Directors making a strong contribution; and
• The focus of the Board will be to ensure the company
is well positioned to manage through the COVID-19
pandemic and be in a strong position to take advantage
of the opportunities as they arise.
• The Board will encourage suitable women applicants
for Board vacancies;
• The proportion of females on the Board should not fall
below current levels unless a transparent process fails
to succeed in attracting a suitable woman candidate;
and
An assessment of individual Director’s performance was
• The proportion of females reporting to the CEO should
undertaken during the year. This assessment consisted
not fall below the current levels unless a transparent
of a self-assessment questionnaire completed by each
process fails to succeed in attracting suitable women
Director and an individual discussion with the Board
candidates.
Chairman. The assessment and discussion in relation
to the Chairman’s performance was undertaken by the
During the current year, no new Directors were appointed
Chairman of the Audit & Risk Committee.
and no Director retired. The percentage of female
AC C E S S TO I N F O R M AT I O N
Directors may access all relevant information required to
personnel reporting directly to the CEO was 20% at
30 June 2021 and 17% at 30 June 2020.
During the year the Company offered the following:
discharge their duties in addition to information provided
• Further revised our methods in talent attraction and
in Board papers and regular presentations delivered by
selection in the recruitment of people from diverse
executive management on business performance and
backgrounds by removing unconscious biases;
issues. With the approval of the Chairman, Directors may
seek independent professional advice, as required, at the
Company’s expense.
3 E T H I CA L A N D R E S P O N S I B L E
D E C I S I O N M A K I N G
The Company has a Code of Ethics and Conduct in
• Enhanced our employee health and hygiene activities
particularly in the context of a COVID-19 safe workplace
• Promoted awareness of mental health services
available to our employees and immediate family
members. In the support of people who are experiencing
mental, financial or legal duress.
59
place to promote ethical and responsible practices and
P R O P O RT I O N O F W O M E N I N T H E O R G A N I SAT I O N
expectations for Directors, Employees and Consultants
of the Company in the discharge of their responsibilities.
This Code reflects the Directors’ and senior executive’s
intention to ensure that their duties and responsibilities
to the Company are performed with the utmost integrity.
A copy of the Code of Ethics and Conduct is available
to all employees and is also available in the Corporate
Governance section of the Company’s website.
D I V E R S I T Y
The Board has established a Diversity Policy which
supports the commitment of the Company to an inclusive
workplace that embraces and promotes diversity and
provides a framework for new and existing diversity
related initiatives, strategies and programs within the
business. A copy of the policy is available in the Corporate
There are 572 female employees in the Group
representing 64.6% of the workforce. There is one
female employee in executive role representing 20% of
employees who report directly to the CEO. There is one
female on the Board which represents 20% of the Board.
59
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au 60
C O R P O R AT E G O V E R N A N C E STAT E M E N T
S H A R E T R A D I N G
The Company’s Share Trading Policy sets out the
guidelines designed to protect the Directors and
employees from intentionally or unintentionally breaching
the law. The Share Trading Policy prohibits employees
from dealing in the securities of the Company while in
possession of material non-public information.
In addition, employees and Non-Executive Directors are:
• Prohibited from dealing in Helloworld securities during
defined closed periods; and
• Required to comply with ‘request to deal’ procedures
prior to dealing in Helloworld securities outside of
defined closed periods.
A copy of the policy is available in the Corporate
Governance section of the Company’s website.
P R OT E C T E D D I S C L O S U R E S
The Group’s Whistle-blower Policy encourages employees
to report concerns in relation to illegal, unethical or
improper conduct in circumstances where they may be
apprehensive about raising their concern because of fear
of possible adverse repercussions. The Whistle-blower
Policy is available to all Helloworld Travel employees and
is also available in the Corporate Governance section of
the Company’s website.
4 I N T E G R I T Y O F F I N A N C I A L
R E P O RT I N G
The Board has an Audit & Risk Committee to assist the
Board in the discharge of its responsibilities.
During the reporting period, the following Non-Executive
Directors were members of the Audit & Risk Committee:
• Mike Ferraro (Chairman)
• Andrew Finch
• Garry Hounsell
The Audit & Risk Committee Charter is available in the
Corporate Governance section of the Company’s website
and the composition, operation and responsibilities of the
Committee are consistent with the requirements of ASX
CGP 4.1.
Mike Ferraro, an independent Director, has been the
Committee Chairman for the full year. Details of the
member Directors’ qualifications and attendance at
Audit & Risk Committee meetings are set out in the
Directors’ Report on pages 22 to 26.
60
Both the Board and Audit & Risk Committee closely
monitor the independence of the external auditors,
including, but not limited to the rotation of the external
audit engagement partner every five years.
The lead audit partner responsible for the Group’s
external audit is required to attend each Annual General
Meeting and be available to answer shareholder
questions about the conduct of the audit and the
preparation and content of the Auditor’s Report.
5 T I M E LY A N D B A L A N C E D
D I S C L O S U R E
The Company has a written Continuous Disclosure Policy
in relation to the market disclosure of any information
concerning the Group that a reasonable person would
expect to have a material effect on the price of the
Company’s securities in order to ensure compliance with
its obligations under the ASX Listing Rules.
A copy of the Continuous Disclosure Policy is located in the
Corporate Governance section of the Company’s website.
6 R I G H T S O F S H A R E H O L D E R S
The Helloworld Travel Limited Shareholder
Communications Policy promotes effective
communication with the Company’s shareholders and
encourages shareholder participation at Annual General
Meetings. The policy which deals with communication
through the ASX, the Share Registry, shareholder
meetings and the Annual Report is available in the
Corporate Governance section of the Company’s website.
All the Company’s announcements to the market can also
be accessed through the Company’s website and copies
of the Helloworld Travel Limited Annual Reports since
2014 are available.
Copies of Charters and policies associated with the
governance of the Company are available on the
Company’s website.
The Company ensures that the explanatory notes
accompanying its ‘Notice of Annual General Meeting’
provide shareholders with all required information in the
Company’s possession relevant to a decision on whether
or not to elect or re-elect a Director at an Annual General
Meeting, including a recommendation from the Board.
These notices are available under Investor and ASX
Releases on the Company’s website.
The Chairman ensures that shareholders are provided
with the opportunity to ask questions of the Board
specific to the operations of the Company at the Annual
General Meeting and other shareholder meetings.
Shareholders are also afforded the opportunity
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au
to question the Company auditors at that meeting
concerning matters related to the audit of the
Company’s financial statements. Shareholders who
are unable to attend the meeting are provided with the
opportunity to submit questions and comments prior to
the meeting to the Company or to the auditor.
The CEO and CFO will endeavour to answer questions
from shareholders and analysts, providing the information
requested is not price sensitive.
Shareholders have the option to receive and send
communications to the Company and its share registry
electronically if they wish to do so. Online voting on
resolutions to be put at the Company’s Annual General
Meetings is available to shareholders.
7 R E C O G N I S I N G A N D
M A N AG I N G R I S K
The Company has a policy in place for the oversight and
management of its material business risks. The Group
takes a proactive approach to risk management. The Board
and Audit & Risk Committee are primarily responsible for
ensuring that risks are identified and reviewed in a timely
manner. A copy of the Risk Management Policy is available in
the Corporate Governance section of the Company’s website.
Under the Risk Management Policy, the Board is
responsible for:
• Overseeing and approving the Company’s risk
management, internal controls and compliance
systems;
The Company’s Executive Management Team (EMT) also
plays a role in identifying, assessing, monitoring and
managing risks. The EMT, supported by the Helloworld
Group Risk team, are responsible for assisting the Audit
& Risk Committee to ensure that robust risk management
exists within the business. The EMT ensures that sufficient
levels of risk analysis is applied to critical decisions and
provides assurance to the Audit & Risk Committee that
risk processes at all levels are effective and compliant with
the Company’s Risk Management Policy.
The Board has received a report from Management as to
the effectiveness of the Company’s management of its
material business risks during the year. The Board has
also received from the CEO and CFO a declaration that,
in their opinion, the financial records of the Company
have been properly maintained and that the financial
statements comply with the appropriate accounting
standards and give a true and fair view of the financial
position and performance of the Company and that
the opinion has been formed on the basis of a sound
system of risk management and internal control which is
operating effectively.
Information in relation to the economic, environmental
and social sustainability risks facing the Company and the
way these are managed are included in the Operating and
Financial Review on pages 39 to 43 of the Annual Report.
I N T E R N A L AU D I T
The Company does not have an in-house internal audit
function and has not engaged external consultants this
• Reviewing the effectiveness of the Company’s risk
financial year due to the continued impacts of COVID-19.
management, internal control and compliance systems
at least annually, and satisfying itself that management
is adhering to the requirements of the policy; and
• Approving the delegations of authority for day-to-day
management of the Company’s operations.
Under the Risk Management Policy, the Audit & Risk
Committee is responsible for assisting the Board in
fulfilling its corporate governance responsibilities
regarding:
• The reliability and integrity of information for inclusion
in the Company’s financial statements;
• Enterprise-wide risk management;
• Compliance with legal and regulatory obligations,
including audit, accounting, tax and financial reporting
obligations;
• The integrity of the Company’s internal control
framework; and
• Safeguarding the independence of the external and
internal auditors.
8 R E M U N E R AT I N G FA I R LY
A N D R E S P O N S I B LY
Helloworld Travel’s remuneration philosophy, objectives
and arrangements are detailed in the Remuneration
Report, which forms part of the Directors’ Report.
D I R E C TO R S
The total annual fees paid to Non-Executive Directors is set
by the Company’s shareholders and allocated as Directors’
Fees and Committee Fees by the Board on the basis of the
roles undertaken by the Directors. Full details of Directors’
remuneration appear in the Remuneration Report. No
retirement benefits are paid and Non-Executive Directors
do not participate in equity-based remuneration schemes.
Details of the remuneration arrangements for the
Company’s Executive Directors are set out in the
Remuneration Report.
61
61
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au C O R P O R AT E G O V E R N A N C E STAT E M E N T
R E M U N E R AT I O N
The Board has established a Remuneration Committee
to assist it in the discharge of its duties relating to
remuneration.
The Non-Executive Directors who were members of the
Remuneration Committee during the financial year are
set out in the Remuneration Committee section of this
Corporate Governance Statement.
The Remuneration Committee Charter is available in the
Corporate Governance section of the Company’s website.
The composition and operation of this committee is
consistent with ASX CGP 8.1. Details of the Directors’
qualifications and attendance at Remuneration
Committee meetings are set out in the Directors’ Report
on pages 22 to 26.
E X E C U T I V E M A N AG E M E N T
Remuneration for executive management is set to
be competitive, to both retain executives and attract
appropriately skilled and qualified executives to the
Company. Remuneration comprises of a fixed cash
element and variable incentive component. Payment
of the variable components is reliant on the Company’s
62
financial performance and the executive’s personal
performance against pre-determined key performance
indicators (“KPIs”).
The Company’s Share Trading Policy prohibits executives
participating in the equity based remuneration scheme
from entering into any arrangement that operates, or
is intended to operate, to limit their exposure to risk in
relation to these shares.
A copy of the Share Trading Policy is available in the
Corporate Governance section of the Company’s website.
Helloworld Travel Limited Annual Report 2021
63
helloworldlimited.com.au
F I N A N C I A L STAT E M E N T S
CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
Revenue
Other Income
TOTAL REVENUE AND OTHER INCOME
Employee benefit expenses
Advertising and marketing expenses
Selling expenses
Communication and technology expenses
Occupancy expenses
Operating expenses
Depreciation and amortisation expense
Impairment expense
Finance expense
Profit/(loss) on disposal of investments
Share of profit/(loss) of associates accounted for using the equity method
64
LOSS BEFORE INCOME TAX
Income tax benefit/(expense)
LOSS AFTER INCOME TAX FOR THE YEAR
LOSS FOR THE YEAR IS ATTRIBUTABLE TO:
Non-controlling interest
Owners of Helloworld Travel Limited
OTHER COMPREHENSIVE LOSS
Items that may be reclassified subsequently to profit or loss:
Change in fair value of cash flow hedges
Income tax benefit on cash flow hedges
Exchange differences on translation of foreign operations
OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF TAX
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
TOTAL COMPREHENSIVE LOSS FOR THE YEAR IS ATTRIBUTABLE TO:
Non-controlling interest
Owners of Helloworld Travel Limited
Basic earnings per share
Diluted earnings per share
Note
2
3
3
3
4
12
6
25
25
25
8
8
CONSOLIDATED
2021
$’000
68,107
26,066
94,173
2020
$’000
278,002
16,877
294,879
(80,697)
(133,009)
(3,264)
(1,839)
(12,050)
(2,756)
(8,873)
(29,219)
(426)
(3,637)
(112)
(790)
(24,433)
(39,264)
(18,354)
(4,343)
(41,888)
(32,742)
(67,947)
(4,099)
1,075
1,246
(49,490)
(68,879)
13,605
(1,106)
(35,885)
(69,985)
(389)
(111)
(35,496)
(69,874)
(35,885)
(69,985)
-
-
(359)
109
(551)
(2,318)
(551)
(2,568)
(36,436)
(72,553)
(389)
(36,047)
(36,436)
(111)
(72,442)
(72,553)
Cents
(23.3)
(23.3)
Cents
(56.5)
(56.5)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
64
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au CONSOLIDATED
Note
2021
$’000
2020
$’000
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AT 3 0 J U N E 2 0 2 1
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Accrued revenue
Inventories
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Investments accounted for using the equity method
Property, plant and equipment
Right of use assets
Intangible assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease liabilities
Provisions
Deferred revenue
Income tax payable
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Lease liabilities
Deferred tax liabilities
Provisions
Other non-current liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
9
10
11
10
12
13
14
15
17
18
20
21
19
18
22
20
23
24
25
26
EQUITY ATTRIBUTABLE TO THE OWNERS OF HELLOWORLD TRAVEL LIMITED
Non-controlling interest
TOTAL EQUITY
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
65
131,024
131,861
27,108
18,333
522
39,991
34,482
540
176,987
206,874
5,774
16,699
12,735
25,042
291,404
351,654
528,641
4,692
17,436
14,697
24,538
300,747
362,110
568,984
108,551
123,401
8,028
22,156
19,852
-
9,145
20,914
24,368
5,748
158,587
183,576
80,711
22,962
33,079
1,572
1,240
139,564
298,151
100,519
20,614
40,512
5,639
1,445
168,729
352,305
230,490
216,679
468,199
(1,554)
419,466
(2,517)
(237,136)
(201,640)
229,509
981
215,309
1,370
230,490
216,679
65
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
CONSOLIDATED
BALANCE AT 1 JULY 2019
Profit after income tax expense (restated)
Other comprehensive loss (restated)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
Transfer of predecessor accounting reserve to accumulated losses
Transactions with owners in their capacity as owners net of tax:
LTIP expensed
Franchise loyalty plan expensed
Issue of new shares, net of transaction costs
Sale of forfeited shares, net of transaction costs
Proceeds on repayment of LTIP related loans
Acquisition of shares
Issue of shares to employees
Dividends
Dividends associated with LTIP
BALANCE AT 30 JUNE 2020
66
CONSOLIDATED
BALANCE AT 1 JULY 2020
Loss after income tax
Other comprehensive loss
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
Transactions with owners in their capacity as owners net of tax:
LTIP expenses reversed for shares that did not meet vesting
conditions
Issued
capital
$’000
Reserves
$’000
Accumulated
losses
$’000
416,219
693
(106,255)
-
(69,874)
-
(2,568)
(2,568)
Non-
controlling
interest
$’000
Total
equity
$’000
1,481
(111)
-
312,138
(69,985)
(2,568)
(69,874)
(111)
(72,553)
(844)
844
195
7
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(26,815)
460
-
-
-
-
-
-
-
-
-
195
7
277
669
2,301
(671)
671
(26,815)
460
-
-
-
-
-
277
669
2,301
(671)
671
-
-
419,466
(2,517)
(201,640)
1,370
216,679
Issued
capital
$’000
Reserves
$’000
Accumulated
losses
$’000
419,466
(2,517)
(201,640)
-
(35,496)
-
Non-
controlling
interests
$’000
1,370
(389)
-
Total
equity
$’000
216,679
(35,885)
(551)
-
-
-
-
(551)
(551)
(710)
-
(35,496)
(389)
(36,436)
-
-
-
-
-
-
(710)
48,733
2,224
Issue of new shares, net of transaction costs
48,733
COVID related retention benefit plan expensed
-
2,224
BALANCE AT 30 JUNE 2021
468,199
(1,554)
(237,136)
981
230,490
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
66
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au CONSOLIDATED STATEMENT
OF CASH FLOWS
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of GST)(i)
Payments to suppliers and employees (inclusive of GST)(i)(ii)
Interest received
Finance costs paid
Income taxes paid
NET CASH USED IN OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for intangibles
Payments for property, plant and equipment
Payments for acquisition of controlled entities, net of cash acquired
Payments for disposal of controlled entities, net of cash disposed
Proceeds from disposal of property, plant and equipment
Dividends from associates
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue, net of costs
Repayment of borrowings
Proceeds from loan funded LTIP repayments
Dividends paid to company shareholders
Loans provided to related parties for equity accounted investments
Loans repaid from related parties for equity accounted investments
Payments for shares acquired by employee share trust
Principal elements of lease payments
NET CASH FROM USED IN FINANCING ACTIVITIES
NET DECREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the financial half year
Effects of exchange rate changes on cash and cash equivalents
CONSOLIDATED
2021
$’000
2020
$’000
Note
28
15
13
35
36
12
24
19
24
7
37
680,799
2,711,242
(691,550)
(2,749,226)
656
(3,444)
-
2,313
(4,007)
(1,761)
(13,539)
(41,439)
(6,361)
(2,836)
175
(2,122)
38
-
(16,596)
(2,878)
(21,751)
(1,215)
101
68
(11,106)
(42,271)
48,733
(20,000)
-
-
-
-
-
(6,996)
21,737
(2,908)
131,861
2,071
-
44,000
2,301
(26,355)
(245)
104
(671)
(7,769)
11,365
(72,345)
204,755
(549)
67
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
9
131,024
131,861
(i) Receipts from customers and payment to suppliers and employees include certain amounts received and paid on behalf customers.
(ii) Includes receipts relating to government wage subsidies.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
67
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au
F I N A N C I A L STAT E M E N T S
NOTES TO THE
FINANCIAL STATEMENTS
1 . B AS I S O F P R E PA R AT I O N
( A ) R E P O RT I N G E N T I T Y
Helloworld Travel Limited (the Company) is incorporated and domiciled in Australia. The Company’s shares are
publicly traded on the Australian Securities Exchange (ASX).
The financial statements of Helloworld Travel Limited and its controlled entities (the Group), for the year ended 30
June 2021 were authorised for issue in accordance with a resolution of the directors on 6 September 2021.
Helloworld Travel Limited is a for profit entity and its principal activities were the selling of international and
domestic travel products and services and the operation of retail distribution networks of travel agents.
( B ) P R E S E N TAT I O N A N D M E A S U R E M E N T
(i) Statement of compliance
This general purpose financial report has been prepared in accordance with Australian Accounting Standards (including
Australian Accounting Interpretations) adopted by the Australian Accounting Standards Board and the Corporations
Act 2001. The consolidated financial statements of the Group comply with International Financial Reporting Standards
(IFRS) and interpretations adopted by the International Accounting Standards Board.
68
The report has been prepared on a going concern basis, which assumes the Group will be able to meet its obligations as
and when they fall due, refer section (c).
(ii) Basis of accounting
The financial statements have been prepared on a historical cost basis except for financial assets and financial liabilities
(including derivative instruments) measured at fair value.
(iii) Functional and presentation currency
The financial report is presented in Australian dollars, which is the Group’s functional currency.
(iv) Rounding of amounts
The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191
and in accordance with that instrument, amounts in the consolidated financial statements and directors’ report have
been rounded off to the nearest thousand dollars, unless otherwise indicated.
(v) Consistent application of accounting policies
Details of the Group’s principle accounting policies which have been applied in the preparation of the financial
statements are included in note 39: significant accounting policies. The accounting policies adopted are
consistent with the previous financial year.
(vi) Comparative periods
Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current period.
68
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au ( C ) G O I N G C O N C E R N
The continued COVID-19 pandemic has caused unprecedented impacts to travel and tourism as a result of border
closures, mandatory quarantine periods and restrictions on domestic and international travel.
Since the global pandemic was officially announced by the World Health Organisation (WHO) on 11 March 2020 there
continues to be a high level of uncertainty regarding the near-term outlook for the global travel industry. As a result, the
Chief Executive Officer and the Board (the Chief Operating Decision Makers or CODM’s) have carefully considered the
Group’s ability to continue as a going concern for the next 12 months from the date the financial statements are issued.
Based on their assessment, it has been concluded that the Group will continue to operate as a going concern. As a result,
the financial statements have been prepared on this basis.
The key considerations used by the CODM’s to assess Helloworld Travel’s ability to continue to operate are outlined below:
Liquidity considerations:
• At 30 June 2021, the Group had a cash balance of $131.1 million.
• At 30 June 2021, short dated facilities (A,B & C) totalling $90.0 million were extended until March 2023.
• Net leverage and interest coverage covenants are suspended for the calculation dates between September 2020
and the quarter ending June 2022.
• The Group prepaid $20.0 million of borrowings in October 2020 which can be redrawn if required with Westpac’s
consent. This has reduced our interest costs by approximately $420,000 per annum at current rates.
• At the end of July 2021, the Group had circa $31.6 million of headroom on existing facilities. This is believed to
be sufficient to manage through a prolonged period of disruption to the global travel industry.
• A monthly liquidity requirement has been agreed at $55.0 million from June 2021 through to the end of
September 2021, $50.0 million until the end of December 2021 and $45.0 million until the quarter ending June
2022. The amount of $45.0 million is subject to negotiation in good faith after 1 June 2022.
69
• The Group has complied with the financial covenants of its borrowing facilities during the relevant periods.
Future cash flow considerations:
• As a result of COVID-19, action was taken to progressively reduce Helloworld Travel’s cost base. Management
has remained agile in responding to impacts of lockdowns to manage the cost base in line with requirements.
Cost reductions have been carefully considered to ensure that the Group is able to respond effectively once travel
volumes recover. The Group has a diversified business with a mix of domestic and international leisure travel,
corporate travel and wholesale travel. This means that Helloworld is well placed to benefit from a recovery in both
domestic and international travel.
The Group has a diversified business with a mix of domestic and international leisure travel, entertainment, film
and event travel, corporate travel and wholesale travel. This means that Helloworld is well placed to benefit from a
recovery in both domestic and international travel.
The key cost saving initiatives below have been included in Helloworld’s financial modelling and sensitivity testing:
• Implementation of hiring and salary freezes and restructuring of non-essential contractors and staff.
• Eliminating all non-essential expenditure including short term capital expenditure (travel, marketing, IT
development).
• Negotiating reduced rental across Helloworld Travel’s property portfolio.
• Implementing staff stand downs and reduced working hours across the business.
• Directors and direct reports to the CEO agreed to reduced salaries during the reporting period.
Refer to note 1 (d) (i) for more information regarding the impact of COVID-19 on Helloworld Travel.
69
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au
F I N A N C I A L STAT E M E N T S
( D ) U S E O F C R I T I CA L A C C O U N T I N G E ST I M AT E S A N D J U D G E M E N T S
The preparation of financial statements requires management to make estimates, judgements and assumptions that
affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised prospectively.
(i) COVID-19 Pandemic
On 11 March 2020 the World Health Organisation (WHO) declared a global pandemic as a result of the outbreak and
spread of COVID-19. As a result, governments across the world took action to close country borders and limited
people to only essential travel. Both Australia and New Zealand governments imposed these restrictions which
resulted in a significant adverse impact on Helloworld Travel’s ability to derive revenue from the sale of travel
products and services.
As at 30 June 2021, many of these border restrictions across the world remained in place. Uncertainty remains with
regard to when they may open. The actions taken by Helloworld to address the decline in revenue have been outlined
in note 1 (c).
As a result of COVID-19, there has been an increase in estimation uncertainty when preparing the financial
statements. The key estimates and judgements used have been outlined in the notes to the financial statements.
These include the recoverability of assets, valuation of assets measured at fair value and the timeline regarding the
eventual recovery of the travel industry, the return of agents on a full-time basis throughout the network and the
recovery of loans.
(ii)
Impairment of non-financial assets
70
The Group determines impairment exists when the carrying value of an asset or cash generating unit (CGU) exceeds
its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. Management’s
estimation of the recoverable amount requires the use of judgement and assumptions. The estimation of the
recoverable amount is most relevant to goodwill and intangible assets with indefinite useful lives, which are tested
on an annual basis. Refer note 15: intangible assets for the key assumptions, including a sensitivity analysis, used
in this estimation of recoverable amount of CGU’s to which goodwill and intangible assets with indefinite useful
lives are allocated.
All other non-financial assets are tested for impairment when indicators of impairment exist. Refer note 12:
Investments accounted for using the equity method for further information.
(iii) Business acquisitions
Business acquisitions require key judgements in the identification, recognition and measurement of intangible
assets recognised on acquisition. For certain acquisitions, the Group is required to assess and value any contingent
consideration payable including the valuation of potential future purchases of non-controlling interests for existing
put options. Refer to note 29: financial risk management for details regarding the techniques and inputs used in the
valuation of contingent consideration.
In accordance with applicable accounting standards, Helloworld Travel has twelve months from the date of acquisition
to finalise the acquisition accounting for additional information obtained after the acquisition about circumstances
that existed at the acquisition date, including any purchase price allocation and income tax finalisation. The key
judgements used for business acquisitions undertaken are outlined in note 35: business acquisitions. In addition, the
accounting policies for acquisitions undertaken are outlined in note 39: significant accounting policies.
70
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au (iv) Override commission revenue
The Group enters into override commission revenue contracts with airlines and other suppliers. The override
commission revenue accrual process is inherently judgemental and requires the use of accounting estimates.
Override commission is calculated for the contract period with a supplier, based on the value of eligible travel during
the period at the expected contracted applicable override rates. Eligible travel for the financial year is calculated
based on detailed booking information and is reviewed by management considering current and historical booking
trends. To estimate the appropriate override rate to use in the calculation of the estimated override commission,
the expected eligible travel sales for the contract period are estimated (based on actual sales, forecast bookings
and historical trends) and compared to the contractual performance tiers. The Company has also considered the
prevailing level of uncertainty in the travel industry and the impact of COVID-19 on the estimates.
A significant portion of override commission contract periods do not correspond to the Group’s financial year
end. Judgements and estimation techniques are required to determine anticipated future flown revenues over the
remaining contract year and the associated override commission rates applicable to these forecast levels.
The accounting policy for override commission revenue is outlined in note 39: significant accounting policies.
(v) Lease terms of contracts with extension options
Extension and termination options are included in a number of the Group’s property leases. In determining the lease term,
which forms part of the initial measurement of the right of use asset and lease liability, management considers all facts and
circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option.
Extension options (or periods after termination options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated).
( E ) N E W A N D A M E N D E D A C C O U N T I N G STA N DA R D S I M PAC T I N G T H E G R O U P
(i) New and amended accounting standards for the year ended 30 June 2021
The adoption of the accounting standard amendments and interpretation did not have any impact on the amounts
recognised in the current period or any prior period and is not expected to materially affect future periods.
71
2 . R E V E N U E A N D OT H E R I N C O M E
The disaggregation of revenue and other income by key types is provided as follows:
Commissions
Transaction and services fees
Marketing related activities
Other revenue from contracts with customers (including freight and call-centre revenue)
REVENUE FROM CONTRACTS WITH CUSTOMERS
Rents and sublease rentals
Finance income
Government wage subsidies (i)
Sundry income
OTHER INCOME
TOTAL REVENUE AND OTHER INCOME
CONSOLIDATED
2021
$’000
23,080
25,259
3,995
15,773
68,107
-
656
22,977
2,433
26,066
94,173
2020
$’000
191,470
40,170
24,463
21,899
278,002
324
2,313
12,692
1,548
16,877
294,879
(i) During the current year, Helloworld Travel Limited received government wage subsidies for eligible employees in both
Australia and New Zealand, in the form of JobKeeper of $21.9 million (2020: $10.5 million) and New Zealand wage subsidy
of $1.1 million (2020: $2.2 million) payments. The NZ wage subsidy scheme finished on 6 September 2020. These subsidies
were made available to companies to assist with the financial impacts of the COVID-19 pandemic. Government wage
subsidies for FY20 have been reclassified from employee expenses to other income to align with current year financial
statements.
71
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
3 . E X P E N S E I T E M S
LOSS BEFORE INCOME TAX EXPENSE INCLUDES THE FOLLOWING SPECIFIC EXPENSE ITEMS:
Defined contribution superannuation expense
LTIP expense
Employee share plan expense (inc COVID-19 Related Retention Benefit Plan (iv))
Other employee benefits expense including salaries
TOTAL EMPLOYEE BENEFITS EXPENSE
Depreciation of property, plant and equipment (note 13)
72
Depreciation of right of use assets (note 14)
Amortisation of intangible assets (note 15)
TOTAL DEPRECIATION AND AMORTISATION
Impairment of investments accounted for using the equity method (note 12)
Impairment of right of use assets (note 14)
Impairment of commercial agreements (note 15)
Impairment of goodwill (note 15)
IMPAIRMENT OF NON-CURRENT ASSETS
Fair value adjustment on contingent consideration receivable (i)
Fair value adjustment on redemption liability (ii)
FAIR VALUE ADJUSTMENTS RELATING TO FINANCIAL ASSETS AND LIABILITIES
Gain/(loss) on disposal of the US Wholesale Division (iii) (note 36)
PROFIT ON DISPOSAL OF INVESTMENTS
Loss allowance on trade receivables and accrued revenue
Business acquisition related expenses
Franchise loyalty plan expense
Other provision
Payments relating to Tempo Holidays and Bentours collapse
Rent concessions (v)
Restructuring costs (vi)
Bargain purchase on ITM acquisition (note 35)
Disposal and modification of leases
72
CONSOLIDATED
2021
$’000
2020
$’000
(4,865)
710
(2,224)
(74,318)
(80,697)
(3,920)
(8,039)
(17,260)
(29,219)
-
(426)
-
-
(426)
(170)
1,200
1,030
(112)
(112)
(1,771)
(58)
-
(8,928)
(195)
(671)
(123,215)
(133,009)
(6,029)
(8,823)
(17,890)
(32,742)
(850)
(90)
(1,507)
(65,500)
(67,947)
(883)
3,600
2,717
1,075
1,075
(7,666)
(1,198)
(7)
(2,473)
(2,639)
-
-
(702)
977
(5,597)
(6,877)
228
(270)
-
-
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au (i) The contingent consideration receivable relating to the sale of Insider Journeys is a financial asset recorded at fair
value through profit or loss in accordance with applicable accounting standards. As at 30 June 2021, the contingent
consideration receivable has been remeasured to its fair value of $nil (30 June 2020: $170,000) and the resulting fair
value change of $170,000 has been recognised within operating expenses in the consolidated statement of profit and
loss.
(ii) The redemption liability relates to the put option liability to acquire the non-controlling 40.0% ownership interest
in Keygate Holdings Pty Ltd on 1 July 2022. The put option is a financial liability recorded at fair value through profit
or loss in accordance with applicable accounting standards. Due to border restrictions across Asia, the fair value of
the redemption liability has been remeasured to $nil (2020: $1.2 million) as at 30 June 2021 and the resulting fair
value change of $1.2 million (2020: $3.6 million) has been recognised within operating expenses in the consolidated
statement of profit and loss. Refer note 29: financial risk management for further details.
(iii) During the current year, Helloworld Travel updated the U.S Wholesale division disposal accounting to reflect the
payment of the preliminary adjustment which was paid on 1 December 2020. The payment amounted to $2.1 million,
resulting in an adjustment of $0.1 million in the current year. Refer note 36 for more information.
(iv) On 18 December 2020, Helloworld Travel granted 905,000 shares under the omnibus incentive plan mechanism.
The shares were issued to a number of staff, none of whom are Directors. All those personnel have been working
reduced days for a sustained period since March 2020. Shares were issued for nil consideration and have a non-
market vesting condition of remaining an employee at Helloworld Travel through to the vesting date of 1 July 2021.
At the vesting date, employees that have satisfied the required conditions of the plan will be issued with their
allocated shares at nil consideration. All omnibus incentive plan shares rank equally in all respects with existing
shares from the date of their issue.
The fair value of the shares issued under the plan is based on the number of shares issued at the closing price on
18 December 2020 which was $2.46 per share and is being brought to account over the vesting period. As a result,
the total share-based payment expense recognised in the current year in the statement of profit or loss and other
comprehensive income amounts to $2.22 million.
(v) Helloworld Travel received rent concessions from certain landlords as a direct result of the COVID-19 pandemic
and has elected to use the practical expedient available under Amendments to Australian Accounting Standards –
COVID-19 Related Rent Concessions. Rent concessions that have not resulted in a lease modification, are considered
variable lease payments. Any difference between the remeasurement of the lease liability and the right of use asset
is recognised within occupancy expenses in the consolidated statement of profit or loss and other comprehensive
income.
(vi) In response to the change in the travel market due to the COVID-19 pandemic, Helloworld Travel has undertaken
initiatives to deliver cost savings and efficiencies while preserving the key operations to support the eventual
recovery of both domestic and international travel. Refer note 1(c) for further information.
73
73
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
4 . F I N A N C E I N C O M E A N D E X P E N S E
RECOGNISED IN PROFIT OR LOSS
FINANCE INCOME RECOGNISED IN REVENUE
Finance expense (i)
Finance expense on lease liabilities
Finance expense on make good provisions
FINANCE EXPENSE
NET FINANCE EXPENSE RECOGNISED IN LOSS BEFORE INCOME TAX
CONSOLIDATED
2021
$’000
2020
$’000
656
(2,575)
(1,062)
-
(3,637)
(2,981)
2,313
(3,029)
(1,030)
(40)
(4,099)
(1,786)
(i) Finance expense includes $0.2 million (2020: $0.3 million) of non-cash amortised borrowing costs.
5 . O P E R AT I N G S E G M E N T S
74
( A ) D E S C R I P T I O N O F S E G M E N T S
The reporting structure is based on a geographical basis of where the Group’s businesses are managed. Internal reports
reviewed and used by the Chief Executive Officer and the Board (the Chief Operating Decision Makers or CODMs) in
assessing performance and making strategic decisions are prepared on this basis.
The Group has the following three segments:
• Australia;
• New Zealand; and
• Rest of World.
Australia and New Zealand segments each have retail distribution operations, air ticketing, wholesale and inbound, and
travel management businesses. Australia and New Zealand also contain corporate support units performing shared
service functions, which are fully allocated to all segments and are reported within segment expenses. The Rest of
World segment consists of an inbound travel business in Fiji, and Tourist Transport Fiji (TTF), being a vehicle transport
service provider in Fiji. The Group disposed of its U.S Wholesale Division on 30 June 2020. This business previously
formed part of the Group’s Rest of World segment.
74
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au ( B ) S E G M E N T I N F O R M AT I O N P R O V I D E D TO T H E C O D Ms
The CODMs assess the performance of the operating segments based on a financial measure of Underlying EBITDA,
which is not a measure prescribed by Australian Accounting Standards.
Underlying EBITDA represents earnings before interest expense, tax, depreciation and amortisation, adjusted to:
• include depreciation on right of use assets and interest expense on lease liabilities and make good provisions arising
from the application of AASB 16; and
• exclude large non-recurring items described in part (c) of this note
A reconciliation of Underlying EBITDA to loss before income tax expense is provided in part (c) of this note.
Segment results for the Group are shown below:
CONSOLIDATED
YEAR ENDED 30 JUNE 2021
Commissions
Transaction and services fees
Marketing related activities
Other revenue from contracts with customers (including freight and call-centre revenue)
REVENUE FROM CONTRACTS WITH CUSTOMERS
Government wage subsidies
Other revenue
SEGMENT REVENUE
Segment expenses
Depreciation of right of use assets
Interest expense on lease liabilities
Equity accounted losses
UNDERLYING EBITDA
CONSOLIDATED
YEAR ENDED 30 JUNE 2020
Commissions
Transaction and services fees
Marketing related activities
Other revenue from contracts with customers (including freight and call-centre revenue)
REVENUE FROM CONTRACTS WITH CUSTOMERS
Government wages subsidies
Other revenue
SEGMENT REVENUE
Segment expenses
Depreciation of right of use assets
Interest expense on lease liabilities
Equity accounted profits
Trading losses relating to U.S Wholesale Division (i)
75
Australia
$’000
New Zealand
$’000
Rest of World
$’000
Total
$’000
19,270
23,119
3,785
15,773
61,947
21,898
2,411
86,256
(84,957)
(6,787)
(868)
(790)
3,708
2,140
210
-
6,058
1,079
654
7,791
(12,729)
(1,139)
(188)
-
102
-
-
-
102
-
24
126
(657)
(114)
(6)
-
23,080
25,259
3,995
15,773
68,107
22,977
3,089
94,173
(98,343)
(8,040)
(1,062)
(790)
(7,146)
(6,265)
(651)
(14,062)
Australia
$’000
New Zealand
$’000
Rest of World
$’000
Total
$’000
152,801
34,224
4,445
191,470
35,475
18,756
18,776
225,808
10,474
3,530
239,812
(193,729)
(6,964)
(885)
1,246
-
4,328
5,530
496
44,578
2,218
497
47,293
(41,395)
(1,204)
(153)
-
-
367
177
2,627
7,616
-
158
40,170
24,463
21,899
278,002
12,692
4,185
7,774
294,879
(9,350)
(244,474)
(655)
(32)
-
2,284
(8,823)
(1,070)
1,246
2,284
UNDERLYING EBITDA
39,480
4,541
21
44,042
(i) Trading losses relating to U.S Wholesale Division represents the EBITDA losses, excluding share service
allocations, associated with U.S Wholesale Division which was disposed of on the 30 June 2020.
75
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
( C ) OT H E R S E G M E N T I N F O R M AT I O N
(i) EBITDA
Underlying EBITDA represents earnings before interest expense, tax, depreciation and amortisation, adjusted to
include depreciation on right of use assets and interest expense on lease liabilities and make good provisions arising
from the application of AASB 16 and exclude large non-recurring items. Underlying EBITDA is a financial measure which
is not prescribed by Australian Accounting Standards but is the measure used by the Board to assess the financial
performance of the Group and operating segments and it is not subject to auditor review.
A reconciliation of Underlying EBITDA to loss before income tax is provided as follows:
UNDERLYING EBITDA
Impairment of non-current assets (note 14)
Restructuring expense
COVID-19 Related Retention Benefit Plan
Increase in loss allowance
Disposal and modification of leases
Bargain purchase on ITM acquisition
Other provisions
Trading losses relating to U.S Wholesale Division
Business acquisition related and other expenses
Fair value adjustment on contingent consideration receivable (Insider Journeys)
Payments relating to Tempo Holidays and Bentours collapse
Fair value adjustment on redemption liability (Keygate Holdings)
76
Gain/(loss) on disposal of the US Wholesale Division
TOTAL SIGNIFICANT ITEMS
Depreciation of property, plant and equipment
Amortisation of intangible assets
Finance expense on borrowings
LOSS BEFORE INCOME TAX
CONSOLIDATED
2021
$’000
2020
$’000
(14,062)
44,042
(426)
(5,597)
(2,224)
(1,771)
(270)
228
(2,473)
-
(58)
(170)
-
1,200
(112)
(67,947)
(6,877)
-
(7,118)
-
-
(2,639)
(2,284)
(2,198)
(883)
(702)
3,600
1,075
(11,673)
(85,973)
(3,920)
(17,260)
(2,575)
(6,029)
(17,890)
(3,029)
(49,490)
(68,879)
Interest income on client funds is included within segment revenue and underlying EBITDA.
(ii) Segment assets
The internal management reports provided to the CODMs report total assets on a basis consistent with that of the
consolidated financial statements. These reports do not allocate assets based on the operations of each segment
or by geographical location.
Total non-current assets, other than deferred tax assets, located in Australia total $320.8 million (2020: $331.5
million). Total non-current assets located in other countries total $28.5 million (2020: $30.7 million). Under
the current management reporting framework, total assets are not reviewed to a specific reporting segment or
geographic location.
(iii) Segment liabilities
The internal management reports provided to the CODMs report total liabilities on a basis consistent with that of
the consolidated financial statements. Under the current management reporting framework, total liabilities are not
reviewed to a specific reporting segment or geographic location.
76
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 6 . I N C O M E TA X
The major components of income tax recognised in the consolidated statement of profit or loss and other
comprehensive income are:
( A ) I N C O M E TA X
Current income tax (expense)/benefit
Deferred income tax (expense)/benefit
Adjustment in respect of current tax expense of previous year
INCOME TAX BENEFIT/(EXPENSE)
Deferred income tax expense relates to the origination and reversal of temporary differences and
comprises:
(Increase)/decrease in deferred tax assets
Increase/(decrease) in deferred tax liabilities
DEFERRED INCOME TAX
CONSOLIDATED
2021
$’000
6,947
6,680
(22)
13,605
2020
$’000
(5,361)
4,944
(689)
(1,106)
1,310
5,880
7,190
(4,573)
9,517
4,944
( B ) R E C O N C I L I AT I O N O F I N C O M E TA X A N D TA X AT T H E STAT U TO RY R AT E
LOSS BEFORE INCOME TAX
Tax at the statutory tax rate of 30%
Add/(deduct) tax effect of:
Gain on disposal of non-current assets
Non-deductible amortisation
Non-deductible non-cash impairment
Share based payment expense
Non-assessable income
Tax losses
Differences in overseas tax rates
Tax offset for franked dividends from equity accounted investments
Under provision in prior year
INCOME TAX BENEFIT/(EXPENSE)
CONSOLIDATED
2021
$’000
2020
$’000
(49,490)
14,847
(68,879)
20,664
77
(394)
(415)
(61)
(497)
431
-
(284)
-
(22)
13,605
(231)
(526)
(19,650)
(59)
(751)
18
100
18
(689)
(1,106)
( C ) TA X E X P E N S E R E L AT I N G TO I T E M S O F OT H E R C O M P R E H E N S I V E I N C O M E
Cash flow hedges
TOTAL TAX (BENEFIT)/EXPENSE RELATING TO ITEMS OF OTHER COMPREHENSIVE INCOME
CONSOLIDATED
2021
$’000
-
-
2020
$’000
(109)
(109)
77
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
( D ) TA X L O S S E S N OT R E C O G N I S E D
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit at statutory tax rates
CONSOLIDATED
2021
$’000
-
-
2020
$’000
-
-
All unused tax losses were incurred by non-Australian entities that are not part of the Australian tax consolidated group.
( E ) U N R E C O G N I S E D T E M P O R A RY D I F F E R E N C E S
The Group had undistributed earnings for controlled entities which if paid out as dividends would be non-assessable
exempt income and not subject to tax in the hands of the recipient. Therefore, no deferred tax liability has been
recorded in relation to the undistributed earnings.
7 . D I V I D E N D S PA I D A N D P R O P O S E D
( A ) D I V I D E N D S
No dividends were declared or paid during the year. In FY20, an interim dividend of 9.0 cents per share was
declared and paid.
78
Final dividend for the year ended 30 June 2019 (12.5 cents per share, distributed
on 17 September 2019)
Final dividends associated with LTIP
Interim dividend for the year ended 30 June 2020 (9.0 cents per share, distributed
on 19 March 2020)
Interim dividends associated with LTIP
DIVIDENDS PAID PER STATEMENT OF CASH FLOWS
CONSOLIDATED
2021
$’000
2020
$’000
-
-
-
-
-
15,590
(298)
11,225
(162)
26,355
The interim dividend for the year ended 30 June 2020 was paid out of the 2020 financial half year profits.
No interim or final dividend has been proposed for the year ended 30 June 2021.
Pursuant to the Group’s financing arrangements, dividends made prior to 01 June 2022 may be made with
Westpac’s consent.
( B ) F R A N K I N G C R E D I T S
The Group’s available franking credits are summarised below:
Franking credits available at the reporting date
Franking credits that will arise from income tax (receivable)/payable as at year end
TOTAL AMOUNT OF FRANKING CREDITS AVAILABLE FOR THE SUBSEQUENT FINANCIAL YEARS
CONSOLIDATED
2021
$’000
25,486
-
25,486
2020
$’000
20,231
5,255
25,486
The ability to utilise the franking credits is dependent upon the Company meeting solvency based tests for payment
of dividends set out in the Corporations Amendments (Corporate Reporting Reform) Act 2010. Pursuant to the
Group’s financing arrangements, dividends made prior to 01 June 2022 may be made with Westpac’s consent. In
accordance with tax consolidation legislation, the Company, as the head entity in the Australia tax consolidated
group, has assumed the benefit of franking credits of all entities.
78
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 8 . E A R N I N G S P E R S H A R E
( A ) B A S I C A N D D I L U T E D E A R N I N G S P E R S H A R E ( E P S )
Basic EPS attributable to the ordinary equity holders of the Company
Diluted EPS attributable to the ordinary equity holders of the Company
( B ) R E C O N C I L I AT I O N O F E A R N I N G S U S E D I N CA L C U L AT I N G E P S
Loss after income tax expense
Adjusted for loss attributable to the non-controlling interest
NET LOSS FOR THE YEAR USED IN CALCULATING EPS
( C ) W E I G H T E D AV E R AG E N U M B E R O F S H A R E S ( WA N O S )
CONSOLIDATED
2021
cents
(23.3)
(23.3)
2020
cents
(56.5)
(56.5)
CONSOLIDATED
2021
$’000
2020
$’000
(35,885)
(69,985)
389
111
(35,496)
(69,874)
CONSOLIDATED
2021
Number of
shares
2020
Number of
shares
WANOS USED IN CALCULATING BASIC EPS
Adjustment for shares issued under franchise loyalty plan
WANOS USED IN CALCULATING DILUTED EPS
152,088,337
123,737,691
-
2,466
152,088,337
123,740,157
79
The franchise loyalty shares prior to vesting date are included in diluted EPS, reflecting the forward non-market
vesting conditions and the nil consideration paid on the issue of the shares. No further shares remain under the
franchise loyalty plan at 30 June 2021.
The LTIP shares prior to vesting date are excluded from diluted EPS, until the forward market vesting conditions
attached to these shares have been met. For the year ended 30 June 2021, Helloworld Travel has a weighted average
number of potential ordinary shares relating to the LTIP of Nil (2020: 980,685) which have been excluded from diluted
EPS. At 30 June 2021, there are nil (2020: 850,000) shares issued under the LTIP that have that have not yet vested
and are subject to future performance criteria.
Refer note 37: share based payments for further details on the nature of shares issued under the franchise loyalty
plan and the LTIP.
( D ) I N F O R M AT I O N C O N C E R N I N G T H E C L A S S I F I C AT I O N O F S E C U R I T I E S
As at 30 June 2021, the Company had 155,027,845 (2020: 124,720,842) ordinary shares on issue. Refer note 24: issued
capital for further details on the movement of ordinary shares during the current year.
79
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
9 . CA S H A N D CAS H E Q U I VA L E N T S
Cash at bank and on hand (i)
Restricted cash at bank (ii)
CASH AND CASH EQUIVALENTS
(i) Cash at bank and on hand
CONSOLIDATED
2021
$’000
110,830
20,194
131,024
2020
$’000
103,510
28,351
131,861
Includes client cash which is not International Air Transport Association (IATA) restricted.
(ii) Restricted cash at bank
Includes cash held of $20.2 million (2020: $28.4 million) within legal entities of the Group that have IATA
requirements as part of providing ticketing travel arrangements.
1 0 . T R A D E A N D OT H E R R E C E I VA B L E S
80
Trade receivables
Loss allowance
TRADE RECEIVABLES NET OF LOSS ALLOWANCE
Prepayments
Other receivables
OTHER RECEIVABLES
CURRENT TRADE AND OTHER RECEIVABLES
Loans to related parties
Contingent consideration receivable (i)
Other receivables
NON-CURRENT TRADE AND OTHER RECEIVABLES
CONSOLIDATED
2021
$’000
16,342
(2,487)
13,855
5,502
7,751
13,253
27,108
4,395
-
1,379
5,774
2020
$’000
27,986
(4,517)
23,469
9,062
7,460
16,522
39,991
4,397
170
125
4,692
Trade receivables are non-interest bearing and are generally on 7 to 30 day payment terms from the date of invoice.
Fair value and credit risk
Due to the short-term nature of current trade and other receivables, their carrying value generally approximates
their fair value. The maximum exposure to credit risk is the carrying value of the receivables. Collateral is not held as
security, nor is it the Group’s policy to transfer receivables to special purpose entities.
(i) The contingent consideration receivable relating to the sale of Insider Journeys is a financial asset recorded at fair
value through profit or loss in accordance with applicable accounting standards. As at 30 June 2021, the contingent
consideration receivable has been remeasured to its fair value of $nil (30 June 2020: $170,000) and the resulting fair
value change of $170,000 has been recognised within operating expenses in the consolidated statement of profit and
loss.
Helloworld Travel has also considered the prevailing level of uncertainty in the travel industry and the impact of
COVID-19 on Helloworld’s ability to recover outstanding receivables from customers. These factors have been included
in the expected credit loss provision, refer note 29: financial risk management for more information.
Credit, foreign exchange and interest rate risk
Details regarding credit, foreign exchange and interest rate risk exposure are disclosed in note 29: financial risk
management.
80
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au
1 1 . A C C R U E D R E V E N U E
Accrued override commission
Other accrued revenue
Loss allowance
ACCRUED REVENUE
CONSOLIDATED
2021
$’000
7,334
14,199
(3,200)
18,333
2020
$’000
34,773
3,409
(3,700)
34,482
Accrued revenue relates to amounts owed to the Group at balance sheet date that have not yet been invoiced to the
customer or received as cash from the customer. The Group’s accrued revenue consists of:
• Accrued override commission, which relates to the estimate of override commission earned during the respective
customer contract period, but not yet invoiced at balance date; and
• Other accrued revenue, which relates to other revenue earned, but not yet invoiced.
Accrued override commission is considered a contract asset in accordance with applicable accounting standards. The
Group generates override commission from its contracts with airlines and leisure partners and the revenue accrual process
is inherently judgemental, refer note 1(d): use of critical accounting estimates and judgements for further details.
Accrued override commission is transferred to trade receivables, when the contract period with the airline or leisure
partner is completed and the final amount of the override commission has been calculated and invoiced in accordance with
the contract.
Once invoiced, override commissions are settled in line with the credit terms from the invoice date under normal
commercial terms and conditions
The contract periods with airline and leisure partners for override commission varies from one month to twelve
months. As a result, the accrued revenue recorded on the consolidated statement of financial position as at 30 June
is invoiced and settled in the following financial year. The estimated accrued override commission is subsequently
adjusted for any differences between Helloworld Travel’s initial estimate and finalisation with the respective
contractual partner. These prior year true ups mainly result from a change in the achievement of performance tiers
which were estimated while the contracts were in progress. Commission revenue adjustments in the current year of
$0.6 million (2020: $1.3 million) relate to prior year revenue true ups from the finalisation of commission revenue
that was estimated at the end of the financial year.
As at 30 June 2021, the balance of accrued override commission has decreased by $27.4 million to $7.3 million reflecting
the impact of COVID-19.
Helloworld Travel has also considered the prevailing level of uncertainty in the travel industry and the impact of COVID-19
on Helloworld’s ability to recover outstanding override commissions from all airlines. These factors have been included in
the expected credit loss provision, refer note 29: financial risk management for more information.
81
81
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
1 2 . I N V E ST M E N T S A C C O U N T E D F O R U S I N G T H E E Q U I T Y M E T H O D
Investment in associates
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
( A ) I N T E R E ST S I N A S S O C I AT E S
Information relating to associates is set out below:
NAME
COUNTRY OF INCORPORATION
Mobile Travel Holdings Pty Limited and its subsidiaries (i)
82
Hunter Travel Group Pty Limited
HTG Australia Pty Limited
Cooney Investments Pty Limited
Inspire Travel Management Pty Limited
Australia
Australia
Australia
Australia
Australia
CONSOLIDATED
2021
$’000
16,699
16,699
2020
$’000
17,436
17,436
OWNERSHIP INTEREST
2020
%
2021
%
50.0
12.0
25.0
20.0
-
50.0
12.0
25.0
20.0
40.0
(i) The majority of the balance as at 30 June 2021 relates to Helloworld Travel's investment in Mobile Travel Holdings
Pty Limited and its subsidiaries, refer section (c).
(ii) Inspire Travel Management ceased to be an equity accounted investment in FY21, refer note 35 for more information.
( B ) M OV E M E N T I N CA R RY I N G A M O U N T S
OPENING BALANCE
Share of (loss)/ profit after income tax expense (i)
Dividends received
Impairment (i)
Other movements
CLOSING BALANCE
(i) Share of profit after income tax expense
CONSOLIDATED
2021
$’000
17,436
(790)
-
-
53
2020
$’000
17,109
1,246
(68)
(850)
(1)
16,699
17,436
During the current year, investments accounted for using the equity method were impacted by COVID-19. This resulted
in a loss being recognised against the investment in the current year.
Helloworld Travel recognised an impairment charge in FY20 due to a decrease in future forecasted cash flows.
82
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au ( C ) I N V E ST M E N T I N M O B I L E T R AV E L H O L D I N G S P T Y L I M I T E D A N D I T S
S U B S I D I A R I E S ( M TA )
MTA’s mobile travel consultants provide home based travel consulting services throughout Australia.
Helloworld Travel has a call option to acquire the remaining 50.0% ownership interest in MTA on 1 December 2021.
The associate party has a put option to sell its remaining 50.0% ownership interest to Helloworld Travel 30 days after
the expiry of the call option period. Refer note 30 (c) (i) for more information.
(i) Reconciliation of the Group's investment in MTA
Reconciliation of movement of investment in MTA:
OPENING CARRYING AMOUNT
Share of (loss)/ profit after income tax expense
Dividends received
CLOSING CARRYING AMOUNT
The closing carrying amount of investment in MTA is reconciled as follows:
50% share in net assets of MTA
Intangible assets acquired on acquisition (Goodwill)
CLOSING CARRYING AMOUNT
(ii) Summarised MTA financial information
CONSOLIDATED
2021
$’000
16,148
(783)
-
2020
$’000
14,878
1,270
-
15,365
16,148
CONSOLIDATED
2021
$’000
1,469
13,896
15,365
2020
$’000
2,252
13,896
16,148
83
The tables below provide summarised financial information for the equity accounted investment in MTA, which is
considered a significant equity accounted investment for the Group. The information disclosed reflects the amounts
presented in the financial statements of MTA and not Helloworld Travel’s share of the amounts.
Summarised statement of financial position
Total current assets
Total non-current assets
TOTAL ASSETS
Total current liabilities
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
MTA
2021
$’000
12,609
665
13,274
10,153
182
10,335
2,939
2020
$’000
18,132
726
18,858
14,172
182
14,354
4,504
83
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
Summarised statement of profit or loss and other comprehensive income
Revenue
Operating expenses
Depreciation and amortisation
PROFIT/(LOSS) BEFORE INCOME TAX
Income tax expense
PROFIT/(LOSS) AFTER INCOME TAX
Other comprehensive income
TOTAL COMPREHENSIVE INCOME/(LOSS)
( D ) C O N T I N G E N T L I A B I L I T I E S
MTA
2021
$’000
1,584
(3,529)
(301)
(2,246)
680
(1,566)
-
(1,566)
2020
$’000
9,607
(5,418)
(554)
3,635
(1,095)
2,540
-
2,540
There are no contingent liabilities recognised by an associate or joint venture for which the Group has a legal obligation to settle.
1 3 . P R O P E RT Y, P L A N T A N D E Q U I P M E N T
Land and
buildings
$’000
Equipment
including motor
vehicles
$’000
Leasehold
improvements
$’000
675
-
-
-
16
(11)
680
749
(69)
680
680
-
-
(31)
(11)
638
11,578
2,793
233
(3)
(45)
(4,344)
10,212
26,878
(16,666)
10,212
10,212
2,260
(296)
-
(3,300)
8,876
5,355
85
60
-
(21)
(1,674)
3,805
9,176
(5,371)
3,805
3,805
576
(546)
(5)
(609)
3,221
718
(80)
638
28,842
(19,966)
8,876
9,201
(5,980)
3,221
Total
$’000
17,608
2,878
293
(3)
(50)
(6,029)
14,697
36,803
(22,106)
14,697
14,697
2,836
(842)
(36)
(3,920)
12,735
38,761
(26,026)
12,735
84
CONSOLIDATED
BALANCE AT 1 JULY 2019
Additions
Additions through business combinations (note 35)
Disposals
Foreign currency differences
Depreciation charge (note 3)
BALANCE AT 30 JUNE 2020
AT 30 JUNE 2020
Cost
Accumulated depreciation
NET BOOK AMOUNT
BALANCE AT 1 JULY 2020
Additions
Disposals
Foreign currency differences
Depreciation charge (note 3)
BALANCE AT 30 JUNE 2021
AT 30 JUNE 2021
Cost
Accumulated depreciation
NET BOOK AMOUNT
84
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 1 4 . R I G H T O F U S E AS S E T S
CONSOLIDATED
BALANCE AT 1 JULY 2019
Additions (ii)
Additions through business combinations (note 36)
Disposals (ii)
Modifications to lease terms (ii)
Foreign currency differences
Impairment (i) (note 3)
Depreciation charge (note 3)
BALANCE AT 30 JUNE 2020
AT 30 JUNE 2020
Cost
Accumulated deprecation
NET BOOK AMOUNT
BALANCE AT 1 JULY 2020
Additions (ii)
Disposals (ii)
Modifications to lease terms (ii)
Foreign currency differences
Impairment (i) (note 3)
Depreciation charge (note 3)
BALANCE AT 30 JUNE 2021
AT 30 JUNE 2021
Cost
Accumulated depreciation and impairment
NET BOOK AMOUNT
(i) Impairment of right of use assets
Property
$’000
Motor Vehicles
$’000
24,487
3,670
2,968
(1,888)
4,204
(87)
(90)
(8,776)
24,488
47,169
(22,681)
24,488
24,488
9,698
(3,629)
2,958
(37)
(426)
(8,027)
25,025
56,160
(31,135)
25,025
42
58
-
-
(1)
(2)
-
(47)
50
69
(19)
50
50
18
(39)
-
-
-
(12)
17
48
(31)
17
Total
$’000
24,529
3,728
2,968
(1,888)
4,203
(89)
(90)
(8,823)
24,538
47,238
(22,700)
24,538
24,538
9,716
(3,668)
2,958
(37)
(426)
(8,039)
25,042
56,208
(31,166)
25,042
85
Right of use assets are assessed for impairment periodically. During the current year, right of use assets relating to
certain Australian operations have been impaired and as a result, $0.4 million has been recognised as an impairment
loss in the profit or loss in the current year.
(ii) Property - right of use assets
Property right of use assets relate to the benefits derived from various leased offices under non-cancellable
agreements. During the current year, Helloworld Travel entered into an additional lease and renewed existing leases
resulting in additions of $9.7 million. In addition, the Group exited leases resulting in disposals of $3.7 million. Due
to COVID-19, a number of leases were renegotiated which resulted in modifications of $2.9 million.
85
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
1 5 . I N TA N G I B L E A S S E T S
CONSOLIDATED
Retail
distribution
systems
$’000
Goodwill
$’000
Agent
network
$’000
Commercial
agreements
$’000
Customer
bases
$’000
Brand
names and
trademarks
$’000
Technology
assets
$’000
Total
$’000
BALANCE AT 1 JULY 2019
167,706
104,400
8,756
21,207
Additions (i)
Additions through internally
generated projects (i)
Adjustments to business
combinations – FY19 (ii)
Additions through business
combinations – FY20
Foreign currency differences
Impairment (note 3)
Amortisation charge (note 3)
-
-
(1,373)
21,145
(524)
(65,500)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(50)
BALANCE AT 30 JUNE 2020
121,454
104,400
8,706
2,904
-
-
-
(145)
(1,507)
(3,383)
19,076
-
-
-
1,506
7,200
-
-
(282)
8,424
1,165
35,212 338,446
-
-
857
500
-
-
7,861
10,765
6,778
6,778
-
990
234
255
29,079
(414)
-
(67,007)
(165)
(14,010)
(17,890)
2,357
36,330 300,747
AT 30 JUNE 2020
Cost
Accumulated amortisation and
impairment
NET BOOK AMOUNT
510,673
104,400
8,810
26,951
8,706
10,500
98,106 768,146
(389,219)
-
121,454
104,400
(104)
8,706
(7,875)
19,076
(282)
8,424
(8,143)
(61,776) (467,399)
2,357
36,330 300,747
86
BALANCE AT 1 JULY 2020
121,454
104,400
8,706
19,076
8,424
2,357
36,330 300,747
Additions (i)
Additions through internally
generated projects (i)
Additions through business
combinations – FY21 (note 35)
Foreign currency differences
Amortisation charge (note 3)
-
-
1,531
-
-
-
-
-
-
-
-
-
-
-
(396)
BALANCE AT 30 JUNE 2021
122,985
104,400
8,310
-
-
-
(18)
(3,306)
15,752
-
-
-
-
-
-
-
3,234
3,234
3,127
3,127
-
43
1,531
25
(1,089)
7,335
(230)
(12,239)
(17,260)
2,127
30,495 291,404
AT 30 JUNE 2021
Cost
Accumulated amortisation and
impairment
NET BOOK AMOUNT
512,204
104,400
8,810
26,933
8,706
10,500
104,510 776,063
(389,219)
-
(500)
(11,181)
(1,371)
(8,373)
(74,015) (484,659)
122,985
104,400
8,310
15,752
7,335
2,127
30,495 291,404
(i) During the current year, $3.2m of Technology assets were added and $3.1m of internal labour costs on
IT related projects was capitalised. An amount of $5.7 million in the capital works balance in progress is
included in Technology Assets.
(ii) On 30 November 2020, Helloworld Travel announced the acquisition for 100% of the CruiseCo business (CruiseCo),
a specialist cruise package wholesaler. The acquisition will allow Helloworld Travel to expand its cruise offerings in
Australia and New Zealand, complementing the existing cruise wholesale business. The assets and liabilities of CruiseCo
acquired by Helloworld Travel are recorded at fair value for accounting purposes, resulting in goodwill of $1.5 million
which was capitalised.
In accordance with applicable accounting standards, Helloworld Travel has 12 months from the date of acquisition to
finalise the acquisition accounting. Refer note 35: business acquisitions for details on the acquisitions undertaken.
86
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au ( A ) N AT U R E O F I N TA N G I B L E A S S E T S
(i) Goodwill and retail distribution systems
Goodwill and retail distribution systems were acquired as part of business combinations and are not amortised
for accounting purposes. Further details on the nature of these intangible assets and the results of the annual
impairment testing is outlined in section (b) of this note.
(ii) Agent networks
The agent networks represent agreements with travel agents for the provision of Wholesale and Inbound travel
products such as packaged tours. The agent network intangible assets have been acquired as part of business
combinations.
The agent networks of $8.8 million includes $8.3 million relating to the agent network acquired from the AOT
merger in FY16. This asset is considered an indefinite life asset and not amortised for accounting purposes.
Further details on the nature of this intangible asset and the results of the annual impairment testing is outlined
in section (b) of this note.
(iii) Commercial agreements
Commercial agreements represent the value attributable to agreements entered into with travel agents, servicing
leisure and corporate travel, that are part of the Helloworld Travel member network. In addition, this intangible
asset category includes long term supplier agreements relating to revenue contracts that were acquired as part of a
business combination.
As a result of COVID-19, commercial agreements have been assessed for impairment. Commercial agreements are
amortised over their useful life (between 3 to 12 years).
87
(iv) Customer bases
Customer bases represents the value attributable to key customer relationships with within the corporate business.
The customer bases intangible assets have been acquired as part of business combinations and are amortised over
their useful life between 8 and 14 years.
(v) Brand names and trademarks
Brand names and trademarks are intangible assets acquired as part of a past business acquisition and include the
wholesale business brands which are being amortised over their respective useful life of 20 years.
(vi) Technology assets
Technology assets consist of external software, website and other technology assets that were acquired through
external suppliers or via business combinations, which provide future economic benefits to the Group. In addition,
technology assets also include capitalised internal labour costs incurred by the Group in the development and
enhancement of the Group’s technology platforms.
Technology assets are amortised over a useful life of 2.5 years to 5 years, except for the booking system and related
website technology acquired from the Flight Systems Group that is being amortised over 10 years.
87
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
( B ) I N D E F I N I T E L I F E I N TA N G I B L E AS S E T S
(i) Goodwill by cash generating unit (CGU) group
88
Australia retail distribution operations
Australia wholesale and inbound
Australia travel management
New Zealand
GOODWILL, NET OF IMPAIRMENT
CONSOLIDATED
2021
$’000
34,610
45,049
29,101
14,225
2020
$’000
34,610
43,518
29,101
14,225
122,985
121,454
Goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets
acquired. Goodwill is allocated to the Group’s CGUs, which are expected to benefit from the business combination.
Australia retail distribution operations CGU, Australia wholesale and inbound CGU and Australia travel management
CGU make up the Australia reportable segment for management reporting purposes. CruiseCo, acquired on 30
November 2020, is reported as part of the Australia wholesale and inbound CGU. The New Zealand CGU equates to the
New Zealand reportable segment for management reporting purposes. There is no goodwill allocated to the Rest of
World CGU, which equates to the Rest of World reportable segment for management reporting purposes.
The recoverable amount of the Group’s CGU’s is determined based on the value in use calculations given the Group
derives its value through use. The key assumptions used in the calculation are outlined in section (c).
(ii) Retail distribution systems
Retail distribution systems
Magellan distribution systems
CONSOLIDATED
2021
$’000
97,400
7,000
2020
$’000
97,400
7,000
TOTAL RETAIL DISTRIBUTION SYSTEMS – INDEFINITE LIFE
104,400
104,400
88
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au Retail distribution system assets are acquired as part of business acquisitions undertaken and result in separate
identification and valuation of indefinite life intangible assets.
The retail distribution systems are the integrated system of methods, procedures, techniques and other systems
which facilitate the day-to-day running of the retail business. This includes access to products/inventory, brands,
marketing, advertising, promotional techniques, training and operational manuals of the network. Due to the
inter-dependencies between these components, the Group considers these assets to be complementary and are
recognised as single identifiable assets. The Group has determined that these retail distribution systems have an
indefinite useful life due to the ongoing effectiveness of the systems which support the Australia retail network
and are allocated to the Australian retail distribution operations CGU.
89
The recoverable amount of the retail distribution systems has been assessed at 30 June 2021. The key
assumptions used in the calculation are outlined in section (c).
The impairment testing undertaken for the year ended 30 June 2021 supports the carrying value of the retail
distribution systems and no impairment was recognised.
(iii) Agent network
AGENT NETWORK – INDEFINITE LIFE
CONSOLIDATED
2021
$’000
8,310
2020
$’000
8,706
The indefinite life agent network asset was separately identified and valued as part of the merger with AOT Group Limited.
The agent network represents the agreements with travel agents for the provision of wholesale and inbound domestic
travel product such as packaged tours. The Group considers that the agent network has an indefinite useful life as there are
no indications that these relationships will not continue to provide future benefits and is entirely allocated to the Australia
wholesale and inbound CGU.
The recoverable amount of the agent network has been assessed at 30 June 2021. The key assumptions used in the
calculation are outlined in section (c).
The impairment testing undertaken for the year ended 30 June 2021 supports the carrying value of the agent network and
no impairment was recognised.
89
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
Key assumptions
The Group’s rationale and explanation of the assumptions used in the value in use calculations are described below.
AREA
COMMENTARY
DOMESTIC TRAVEL RESTRICTIONS
INTERNATIONAL TRAVEL RESTRICTIONS
TOTAL TRANSACTION VALUE (TTV)
Australia retail distribution operations CGU
Australia wholesale and inbound CGU
Australia travel management CGU
New Zealand
90
REVENUE MARGINS
OPERATING EXPENSES
Employee benefits expenses
The impact of COVID-19 has continued to evolve. Various states are using spot lockdowns to
manage the spread of the virus. These actions adversely impact domestic travel and tourism.
Despite border restrictions, domestic bookings are strong when borders are relatively stable.
The Group’s forecasts assume that current restrictions on Australian residents travelling
overseas have been extended to the end of 2021. Additional travel bubbles to be added
as vaccination rates increase and will grow as a proportion of TTV when compared to
historical levels. International travel is forecast to gradually increase from early-mid 2022
which is predicated upon further easing of international border restrictions. In the absence
of a high vaccination rate, international border openings likely dependent on containment
of COVID-19 in such countries and the establishment of additional screening in airports
and ports which are currently being explored by international agencies such as IATA and
the World Health Organisation.
The majority of TTV has historically been derived from outbound international travel. FY22
TTV is forecast to be 70.0% lower than FY19 levels, before gradually recovering to FY19
levels by FY26, consistent with IATA’s estimates.
The majority of TTV has historically been derived from international travel. FY22 TTV forecast
to be 88.4% lower than FY19 levels. FY26 TTV is expected to approximate FY19 levels.
FY22 TTV forecast to be 69.6% lower than FY19 levels. Relative to FY19 levels, TTV is
forecast to recover to FY19 levels by FY25. This CGU has a higher relative proportion of
domestic travel by corporate customers when compared to the Australia retail distribution
operations CGU and Australia wholesale and inbound CGU.
The New Zealand CGU comprises inbound and outbound leisure and corporate travel. FY22
TTV forecast to be 85.1% lower than FY19 levels. FY26 TTV is expected to approximate
FY19 levels.
Revenue margins are forecast to remain at historical levels for each revenue stream,
allowing for changes in TTV mix within the respective CGU.
Employee benefits expenses Employee benefits are forecast based on the significantly
reduced cost structure implemented as a result of COVID-19. Expenditure is forecast to
increase in dollar terms from FY22 to FY26 in line with the forecast TTV trends outlined
above and assumes the extension of reduced a workforce until travel returns and attrition.
As a percentage of revenue, employee benefits expenses are forecast to revert to pre-
COVID-19 levels between FY23 and FY26.
Other expenses
Variable costs have been forecast as a percentage of TTV or revenue.
Fixed costs are forecast to remain at historical levels, adjusted only for discretionary
expenditure and committed cost reductions.
Tax is forecast based on the prevailing corporate tax rates that apply to the CGU.
Forecast capital expenditure is based on historical levels, adjusted to exclude relocation
costs and expansion or growth related items which have been incurred in prior years.
Working capital movements are forecast net of movements in client cash. Working capital is
forecast based on forecast revenues. Employee leave entitlements are forecast to reduce
(resulting in cash outflows) through attrition between FY22 – FY26 as the Group’s workforce
reduces to levels commensurate with TTV.
The terminal value calculations have an equivalent revenue and operating expense growth
assump-tion of 2.0% (2020: 2.0%), with the exception of Australia Wholesale and Inbound
CGU 0.5%; (2020: 0.5%).
Revenue and operating expense growth projections have been benchmarked against long-
term infla-tion estimates.
Discount rates applied in the testing of recoverable amounts reflect the post-tax weighted
average cost of capital. An 11.5% discount rate has been applied to the respective CGU’s
with goodwill allo-cated (2020: 11.5%).
TAX
CAPITAL EXPENDITURE
WORKING CAPITAL
LONG-TERM GROWTH
DISCOUNT RATES
90
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au Sensitivity analysis
It is not certain how long the current domestic and international travel restrictions will continue, and the recovery
profile as travel restrictions are eased, while we acknowledge there are plans and targets in place that will enable the
return to restrictions free travel. The following outlines the impacts of changes in material assumptions.
The recoverable amount is based on operating and cashflow performance stabilising, however the timing of cashflow
benefits arising from initiatives could be influenced by market conditions. The recoverable amount is sensitive to
changes in all of the key assumptions. The impact of these changes in key assumptions is shown in the table below and
has been calculated in isolation from other changes. In the event that multiple changes took place simultaneously, this
may result in an impairment.
RESULTANT IMPAIRMENT CHANGE
TTV reduction to key
assumption (notes i and ii)
5.0%
EBITDA reduction
to key assumption
2%
Long-term growth
decrease
0.5%
Discount rate
increase
0.5%
GOODWILL
Australia retail distribution operations
No impairment
No impairment
No impairment
No impairment
Australia wholesale and inbound
Australia travel management
No impairment
No impairment
No impairment
No impairment
No impairment
No impairment
No impairment
No impairment
New Zealand
MTA
No impairment
No impairment
No impairment
No impairment
No impairment
No impairment
No impairment
No impairment
(i): TTV does not represent revenue in accordance with Australian Accounting Standards and is not subject to auditor
review. TTV represents the price at which travel products and services have been sold across the Group, as agents
for various airlines and other service providers, plus revenue from other sources. The Group’s revenue is, therefore,
derived from TTV. TTV does not represent the Group cash inflows as some transactions are settled directly between
the customer and the supplier.
91
(ii): a reduction in forecast TTV has a corresponding impact on forecast revenues and variable operating expenditures,
working capital and tax.
In the year ended 30 June 2020, the Wholesale and Inbound CGU was impaired in line with the analysis completed at
that time, in the event that similar changes were to impact this CGU, it may result in additional impairment.
Significant judgements or estimates
The allocation of goodwill to the cash-generating units as well as the computation of the recoverable amount is subject
to the judgement of management. This encompasses the estimation of future cash flows, the determination of the
discount rate, and the growth rates on the basis of historical data and current forecasts.
91
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
1 6 . D E F E R R E D TA X A S S E T S
( A ) D E F E R R E D TA X AS S E T S
Employee benefits
Payables and accruals
Property, plant and equipment
Lease liabilities
Tax losses
Other
GROSS DEFERRED TAX ASSETS
Set-off of deferred tax assets and liabilities pursuant to set-off provisions
NET DEFERRED TAX ASSETS
Amount expected to be recovered within 12 months
Amount expected to be recovered after more than 12 months
GROSS DEFERRED TAX ASSETS
CONSOLIDATED
2021
$’000
3,960
8,835
188
9,162
3,167
3,454
28,766
(28,766)
-
17,840
10,926
28,766
2020
$’000
6,644
7,636
695
8,854
667
2,606
27,102
(27,102)
-
16,793
10,309
27,102
( B ) M O V E M E N T I N T E M P O R A RY D I F F E R E N C E S D U R I N G T H E Y E A R
CONSOLIDATED
Employee
benefits
$’000
Payables and
accruals
$’000
Property
plant and
equipment
$’000
Lease
liabilities
$’000
Tax losses
$’000
Other
$’000
Total
$’000
BALANCE AT 1 JULY 2019
5,138
11,452
1,715
8,549
2,054
1,486
30,394
92
(Charged)/credited
- to profit or loss
- to other comprehensive income
Additions through business combinations
BALANCE AT 30 JUNE 2020
1,506
(5,189)
(1,020)
305
(1,387)
1,212
(4,573)
-
-
6,644
-
1,373
7,636
-
-
-
-
-
-
(92)
-
(92)
1,373
695
8,854
667
2,606
27,102
BALANCE AT 1 JULY 2020
6,644
7,636
695
8,854
667
2,606
27,102
(Charged)/credited
- to profit or loss
BALANCE AT 30 JUNE 2021
(2,684)
3,960
1,199
8,835
(507)
188
308
9,162
2,500
3,167
848
1,664
3,454
28,766
1 7 . T R A D E A N D OT H E R PAYA B L E S
Trade payables
Accruals
Other payables
TRADE AND OTHER PAYABLES
CONSOLIDATED
2021
$’000
89,652
10,652
8,247
2020
$’000
86,990
27,390
9,021
108,551
123,401
Trade payables are non-interest bearing and are normally settled within 7 to 30 day payment terms from the date of
invoice. Non trade payables and accruals are non interest bearing. The Group’s contractual arrangements generally allow
the Group to defer payment of travel related payables until funds have been received from the customer or agent.
Details regarding foreign exchange risk exposure are disclosed in note 29: financial risk management.
92
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 1 8 . L E A S E L I A B I L I T I E S
Lease liabilities
CURRENT LEASE LIABILITIES
Lease liabilities
NON-CURRENT LEASE LIABILITIES
CONSOLIDATED
2021
$’000
8,028
8,028
2020
$’000
9,145
9,145
22,962
22,962
20,614
20,614
( A ) M OV E M E N T S I N L E AS E L I A B I L I T I E S
Movements in each class of lease liability (current and non-current) during the financial year, are set out below:
CONSOLIDATED
BALANCE AT 1 JULY 2019
Additions (i)
Additions through business combinations
Disposals (i)
Disposals through business sales
Interest expense
Lease payments (ii)
Modifications to lease terms (i)
Other adjustments to lease liabilities
Foreign currency differences
BALANCE AT 30 JUNE 2020
Current
Non-current
BALANCE AT 30 JUNE 2020
BALANCE AT 1 JULY 2020
Additions (i)
Disposals (i)
Disposals through business sales
Interest expense
Lease payments (ii)
Modifications to lease terms (i)
Foreign currency differences
BALANCE AT 30 JUNE 2021
Current
Non-current
BALANCE AT 30 JUNE 2021
Property
$’000
Motor Vehicles
$’000
Total
$’000
28,453
3,450
2,888
(1,167)
(197)
1,028
(8,748)
3,771
360
(129)
29,709
9,122
20,587
29,709
29,709
9,865
(4,210)
-
1,061
(8,035)
2,590
(7)
30,973
8,016
22,957
30,973
42
25
-
(3)
-
2
(51)
36
-
(1)
50
23
27
50
50
17
(29)
-
1
(23)
1
-
17
12
5
17
93
28,495
3,475
2,888
(1,170)
(197)
1,030
(8,799)
3,807
360
(130)
29,759
9,145
20,614
29,759
29,759
9,882
(4,239)
-
1,062
(8,058)
2,591
(7)
30,990
8,028
22,962
30,990
93
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(i) Property – current and non-current lease liabilities
Lease liabilities payment obligations relate to various leased offices under non-cancellable agreements. During
the current year, Helloworld Travel entered into an additional Normanby Road lease and renewed existing leases
resulting in additions of $9.9 million. In addition, the Group exited leases at Mascot and Robina resulting in disposals
of $4.2 million. Due to COVID-19, leases were renegotiated which resulted in modifications of $3.2 million.
(ii) Amounts recognised in the consolidated statement of cash flows
The total cash outflow for lease liabilities during the year ended 30 June 2021 was $8.0 million (2020: $8.8 million),
comprising of interest expense on lease liabilities of $1.0 million (2020: $1.0 million), recognised as ‘operating activities’,
and principal elements of lease liabilities of $7.0 million (2020: $7.8 million), recognised as ‘financing activities’.
( B ) F U T U R E R E N TA L PAY M E N T S E X C L U D E D F R O M L E AS E L I A B I L I T I E S :
In light of COVID-19 and the Group’s continual focus on cost reduction and efficiency initiatives, the Group has
determined, that uncertainty exists regarding the likelihood of the Group agreeing to extend all lease terms beyond
the minimum period. As a result, the potential future rental payments relating to periods following the exercise date
of extension options are not included in the lease liabilities. The extension options held are exercisable only by the
Group and not by the lessors.
1 9 . B O R R O W I N G S
Secured bank loans
Deferred borrowings costs
NON-CURRENT BORROWINGS
94
( A ) F I N A N C I N G A R R A N G E M E N T S :
CONSOLIDATED
2021
$’000
81,000
(289)
80,711
2020
$’000
101,000
(481)
100,519
The Group has secured financing arrangements with the Westpac Banking Corporation (Westpac) of $119 million
(2020: $119.0 million) as outlined below:
CONSOLIDATED
Secured bank loan – multi currency
Secured multi-option revolving credit facility
Secured bank loan facility – AUD
Expiry Date
Facility A - March 2023
Facility B - March 2023
Facility C – March 2023
Secured bank loan facility – TravelEdge acquisition (i)
Facility D – September 2022
TOTAL FACILITIES
Secured bank loan – multi currency
Secured multi-option revolving credit facility
Secured bank loan facility – AUD
Secured bank loan facility – TravelEdge acquisition (i)
FACILITIES DRAWN DOWN AT THE REPORTING DATE
Secured multi-option revolving credit facility
Secured bank loan facility – AUD
BANK GUARANTEES AND LETTERS OF CREDIT AT THE REPORTING DATE
Secured bank loan – multi currency
Secured multi-option revolving credit facility
Secured bank loan facility – AUD
UNUSED AT THE REPORTING DATE
94
2021
$’000
40,000
30,000
20,000
29,000
2020
$’000
40,000
30,000
20,000
29,000
119,000
119,000
19,500
17,500
15,000
29,000
81,000
4,037
2,412
6,449
20,500
4,281
6,770
31,551
39,500
17,500
15,000
29,000
101,000
8,623
2,888
11,511
500
3,877
2,112
6,489
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au ( B ) S E C U R E D M U LT I - O P T I O N R E V O LV I N G C R E D I T FAC I L I T Y:
During the current year, Helloworld Travel renegotiated the terms and conditions of its Westpac Banking Corporation
(Westpac) facility agreements for facilities A, B and C totalling $90.0 million. The key changes are outlined below:
• The terms of facilities (A,B & C) were extended from their original expiration date to March 2023. As a result, all
facilities are classified as non-current at 30 June 2021.
• During the current financial year, there have been no breaches of the Westpac debt covenants. Helloworld
negotiated for a further waiver of EBITDA related covenants to the quarter ending 30 June 2022. This continuation
of covenant waivers emphasises the strong relationship Helloworld has with its bankers to provide Helloworld
Travel with additional flexibility to manage its liquidity during the COVID-19 pandemic.
• Helloworld prepaid $20 million of Facility A in October 2020, which can be drawn down with bank consent.
The Group’s loans incorporate certain market standard covenants such as interest cover ratio and net leverage ratio.
Westpac has agreed to covenant waivers and suspensions of certain financial covenants.
The Group has complied with the financial covenants of its borrowing facilities during the relevant 2021 and 2020 periods.
( C ) B A N K G UA R A N T E E S A N D L E T T E R S O F C R E D I T:
Facilities used at 30 June 2021 of $87.4 million (June 2020: $112.5 million) includes bank guarantees and letters of
credit on issue totalling $6.4 million (June 2020: $11.5 million).
( D ) S E C U R E D L I A B I L I T I E S A N D A S S E T S P L E D G E D AS S E C U R I T Y
The total secured liabilities (current and non-current) are as follows:
SECURED BANK LOAN
CONSOLIDATED
2021
$’000
2020
$’000
81,000
101,000
95
The financing arrangements are secured over the assets of the entities in the Deed of Cross Guarantee (note 29)
and certain New Zealand entities within the Group, which form the "obligor group" as defined under the Westpac
facility agreement. The obligor group includes the group parent entity of Helloworld Travel Limited and its
investment holdings in subsidiaries.
( E ) S E T - O F F O F AS S E T S A N D L I A B I L I T I E S :
There are currently no contractual arrangements establishing a legal right to set-off assets and liabilities with any
financial institutions.
( F ) FA I R VA L U E S A N D R I S K E X P O S U R E S :
Information about the carrying amounts and fair values of interest bearing liabilities, including exposure to interest
rate and foreign currency changes, is provided in note 29: financial risk management.
95
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au
F I N A N C I A L STAT E M E N T S
2 0 . P R O V I S I O N S
Employee benefits - annual leave
Employee benefits - long service leave
Lease make good
Other (b)
CURRENT PROVISIONS
Employee benefits - long service leave
Lease make good
Other
NON-CURRENT PROVISIONS
CONSOLIDATED
2021
$’000
4,938
6,793
-
10,425
22,156
215
1,357
-
1,572
2020
$’000
5,640
9,054
63
6,157
20,914
1,510
1,490
2,639
5,639
( A ) M OV E M E N T I N P R OV I S I O N S
96
Movements in each class of provision (current and non-current) during the financial year, other than employee benefits,
are set out below:
CONSOLIDATED
BALANCE AT 1 JULY 2019
Additions through business combinations
Provisions charged to fixed assets
Provision charged/(released) to income statement
Payments made from provision
BALANCE AT 30 JUNE 2020
Current
Non-current
BALANCE AT 30 JUNE 2020
BALANCE AT 1 JULY 2020
Provisions charged to fixed assets
Provision charged/(released) to income statement
Payments made from provision
BALANCE AT 30 JUNE 2021
Current
Non-current
BALANCE AT 30 JUNE 2021
96
Lease
make good
$’000
2,186
80
242
(548)
(407)
1,553
63
1,490
1,553
1,553
63
(196)
(63)
1,357
Other
$’000
Total
$’000
166
2,352
-
-
9,506
(876)
8,796
6,157
2,639
8,796
80
242
8,961
(1,286)
10,349
6,220
4,129
10,349
8,796
10,349
-
4,720
(3,091)
10,425
-
10,425
1,357
1,357
-
10,425
63
4,524
(3,154)
11,782
10,425
1,357
11,782
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au ( B ) N AT U R E A N D T I M I N G O F P R O V I S I O N S
(i) Lease make good
A provision is recognised in respect of existing lease contracts for the estimated present value of expenditure required
to complete dismantling and site restoration obligations to the extent required in the associated contracts. Future
dismantling and restoration costs are reviewed annually. Any changes are reflected in the present value of the lease
make good provision at the end of the reporting period. The effect of unwinding the discounting of the provision is
recognised as a finance expense.
During the current year, Helloworld Travel consolidated their operations resulting in the relocation of staff from the
Mascot and Robina offices. The recognised make good provisions were adjusted in the current financial year.
A restructure of our New Zealand operations took place which resulted in closure of the Christchurch office and
payments made for make good of the premises during the financial year.
(ii) Other
Provisions of $5.9m as at 30 June 2020 has been reclassified from Restructuring provisions to Other due to the
nature of expense. Balance provided for at 30 June 2021 are expected to be settled in the following financial year.
( C ) A M O U N T S N OT E X P E C T E D TO B E S E T T L E D W I T H I N T H E N E X T 1 2 M O N T H S
The Group does not expect all employees to take the full amount of accrued leave or require payment within the
next 12 months.
2 1 . D E F E R R E D R E V E N U E
Supplier incentives (i)
Unearned income (ii)
DEFERRED REVENUE
(i) Supplier incentives
97
CONSOLIDATED
2021
$’000
8,733
11,119
19,852
2020
$’000
8,374
15,994
24,368
Helloworld Travel receives incentives from suppliers upfront when entering into long term contracts. Incentives
deferred at 30 June 2021 relate to contracts with terms of between 7 to 10 years. Incentives are recognised in the
consolidated statement of profit or loss and other comprehensive income over the life of the contract based on
specific performance criteria. During the current year, Helloworld Travel received additional incentives in the form of
cash payments from suppliers.
(ii) Unearned Income
The Group also receives monies from customers prior to travel booking finalisation, which is recorded in the
statement of financial position as unearned income as at 30 June.
Unearned income is considered a contract liability in accordance with applicable accounting standards. Unearned
income commissions are recognised as revenue in the consolidated statement of profit or loss and other
comprehensive income when the travel has occurred. The unearned income in both year is expected to become
revenue within the following 12 month period.
During the current year, unearned income decreased by $4.9 million to $11.1 million as a result of COVID-19
which resulted in a decline in new bookings and cancellation of travel bookings made prior to COVID-19. Only the
commission element earned on these bookings will impact revenue in the consolidated statement of profit or loss
and other comprehensive income.
97
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
2 2 . D E F E R R E D TA X L I A B I L I T I E S
( A ) D E F E R R E D TA X L I A B I L I T I E S
Accrued revenue
Property, plant and equipment
Right of use assets
Intangibles
Other
GROSS DEFERRED TAX LIABILITIES
Set-off of deferred tax assets and liabilities pursuant to set-off provisions
NET DEFERRED TAX LIABILITIES
98
Deferred tax liabilities expected to be settled within 12 months
Deferred tax liabilities expected to be settled after more than 12 months
GROSS DEFERRED TAX LIABILITIES
CONSOLIDATED
2021
$’000
2020
$’000
16,982
99
7,424
35,650
1,690
61,845
(28,766)
33,079
6,242
55,603
61,845
19,931
160
7,311
37,156
3,056
67,614
(27,102)
40,512
9,199
58,415
67,614
( B ) M OV E M E N T I N T E M P O R A RY D I F F E R E N C E S D U R I N G T H E Y E A R
CONSOLIDATED
BALANCE AT 1 JULY 2019
(Charged)/credited
- to profit or loss
- to other comprehensive income
Additions through business combinations
Accrued
revenue
$’000
Property
plant and
equipment
$’000
Right
of use
assets
$’000
Intangibles
$’000
Other
$’000
Total
$’000
26,149
2,116
7,359
34,937
3,681
74,242
(6,218)
(1,956)
(48)
-
-
-
-
-
-
(91)
-
2,310
37,156
(1,204)
(9,517)
(109)
688
3,056
(109)
2,998
67,614
BALANCE AT 30 JUNE 2020
19,931
160
7,311
BALANCE AT 1 JULY 2020
(Charged)/credited
- to profit or loss
Additions through business combinations
BALANCE AT 30 JUNE 2021
19,931
160
7,311
37,156
3,056
67,614
(2,949)
-
16,982
(61)
-
99
113
-
(1,506)
(1,366)
(5,769)
-
-
-
7,424
35,650
1,690
61,845
98
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 2 3 . OT H E R L I A B I L I T I E S
Redemption liability (i)
Deferred payments (ii)
Other non-current liabilities
OTHER NON-CURRENT LIABILITIES
CONSOLIDATED
2021
$’000
-
1,030
210
1,240
2020
$’000
1,200
-
245
1,445
(i) The redemption liability relates to the estimated consideration payable by Helloworld Travel for the remaining
40.0% non-controlling interest in Keygate Holdings Pty Ltd in FY22. The redemption liability is a financial liability
measured at fair value through profit or loss at the end of each reporting period. During the current year, the
redemption liability was written back to nil (2020: $1.2 million) and the gain of $1.2 million was recognised in the
current year. The remeasurement gain has been excluded from Underlying EBITDA in note 5 operating segments.
For further details on the assumptions used in the remeasurement, refer note 29: financial risk management.
(ii) The deferred payment relates to deferred contingent consideration payable by Helloworld Travel for the CruiseCo
business acquired on 30 November 2020. A retrospective adjustment has been made since initial recognition of total
consideration and a corresponding adjustment has been made to goodwill. Deferred Contingent Consideration was
determined in accordance with the terms of sale purchase contract as a percentage of the applicable revenue over
the reporting period. Refer note 35: Business acquisitions.
99
2 4 . I S S U E D C A P I TA L
( A ) S H A R E S O N I S S U E
CONSOLIDATED
2021
shares
2020
shares
2021
$’000
2020
$’000
Issued capital – fully paid
154,122,845
123,870,842
468,199
419,492
Issued capital – issued, but not vested (i)
905,000
850,000
-
(26)
ISSUED CAPITAL
155,027,845
124,720,842
468,199
419,466
Holders of ordinary shares in Helloworld Travel are entitled to receive dividends as declared from time to time and
are entitled to one vote per share at Helloworld Travel shareholders’ meetings. In the event of the winding up of
Helloworld Travel, ordinary shareholders rank after creditors and are fully entitled to any proceeds on liquidation.
Ordinary shares have no par value and Helloworld Travel does not have a limited amount of authorised capital.
(i)
Issued capital – issued, but not vested
Issued, but not vested capital relates to shares that have been issued under the Omnibus Incentive Plan which have
not yet met their future vesting conditions.
99
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
( B ) M OV E M E N T S I N S H A R E S O N I S S U E
CONSOLIDATED
BALANCE
Issue of new shares (i)
Costs associated with capital raising (net of tax)
Date
Number
of Shares
$’000
1 July 2020
124,720,842
419,466
27 July 2020 to
10 August 2020
30,307,003
-
50,006
(1,273)
BALANCE
30 June 2021
155,027,845
468,199
(i)
Issue of new shares
Helloworld Travel completed a $50.0 million fully underwritten equity raise to strengthen the balance sheet and
provide additional liquidity to manage the prolonged period of disruption to the global travel industry.
The $50.0 million equity raise comprised of an institutional placement and an entitlement offer ($48.7 million net
of costs). It resulted in the issue of 30.3 million new fully paid ordinary shares in Helloworld Travel, representing
approximately 24.3% of existing shares on issue. The shares ranked equally with existing shares on issue. The issue
price of $1.65 per share represented a 16% discount to the last traded price prior to announcement of the equity
raise of $1.97 on 15 July 2020.
2 5 . R E S E RV E S
100
Foreign currency translation reserve
Share based payments reserve
Redemption reserve
RESERVES
CONSOLIDATED
2021
$’000
1,608
4,038
(7,200)
(1,554)
2020
$’000
2,159
2,524
(7,200)
(2,517)
100
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au ( A ) M O V E M E N T S I N R E S E RV E S
Movements in each class of reserve during the current and previous financial year are set out below:
Foreign
currency
translation
reserve
$’000
Hedging
reserve
$’000
Share based
payments
reserve
$’000
Redemption
reserve
$’000
4,477
-
-
(896)
-
(1,422)
2,159
2,159
(551)
-
-
1,608
1,094
(359)
109
-
-
-
(844)
-
-
-
-
-
-
2,322
(7,200)
-
-
-
202
-
-
-
-
-
-
2,524
(7,200)
Total
$’000
693
(359)
109
(896)
202
(1,422)
(844)
(2,517)
2,524
(7,200)
(2,517)
-
2,224
(710)
4,038
-
-
-
(551)
2,224
(710)
(7,200)
(1,554)
CONSOLIDATED
BALANCE AT 1 JULY 2019
Revaluation – gross
Revaluation - deferred tax
Foreign currency translation
Share based payment expense
Released to profit or loss on disposal
Transfer of predecessor accounting reserve to
accumulated losses
BALANCE AT 30 JUNE 2020
BALANCE AT 1 JULY 2020
Foreign currency translation
Share based payment expense
Reversal of LTIP
BALANCE AT 30 JUNE 2021
( B ) N AT U R E O F R E S E RV E S
(i) Foreign currency translation reserve
Exchange differences arising on translation of the foreign operations are taken to the foreign currency translation
reserve, as described in note 39: significant accounting policies.
101
(ii) Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash
flow hedging instruments related to hedging transactions that have not yet occurred, as described in note 39:
significant accounting policies. Amounts are reclassified to the consolidated statement of profit or loss and
other comprehensive income when the associated underlying hedge transaction also affects profit and loss. As a
consequence of COVID-19, the Group has temporarily ceased hedging given the difficulties in reliably estimating the
quantum and timing of foreign currency denominated receipts and payments.
(iii) Share based payments reserve
The share-based payments reserve is used to recognise the fair value of shares issued to eligible employees with
performance related conditions. In addition, the reserve records the fair value of franchise loyalty shares issued to eligible
franchise network members with related conditions. Once the vesting conditions of the respective share schemes are met
and the shares are exercised, the accumulated amount of the share-based payment reserve relating to the vested shares is
transferred to share capital.
(iv) Redemption reserve
The redemption reserve relates to Helloworld Travel’s option to purchase the remaining 40.0% non-controlling interest in
Keygate Holdings Pty Limited and was determined in the sale and purchase agreement for the 60.0% controlling interest
in the business. Upon exercise or forfeiture, the balance of the redemption reserve will be recycled through accumulated
losses. The Group has recognised a financial liability for the estimated amount payable which is subject to remeasurement.
Non-cash gains or losses on remeasurement are reflected in the profit or loss at the end of each reporting period and are
excluded from underlying EBITDA, refer note 5: operating segments.
101
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
2 6 . A C C U M U L AT E D L O S S E S
ACCUMULATED LOSSES AT THE BEGINNING OF THE FINANCIAL YEAR
CONSOLIDATED
2021
$’000
2020
$’000
(201,640)
(106,255)
Loss after income tax attributable to the owners of Helloworld Travel Limited
(35,496)
Dividends
Dividends associated with LTIP
Transfer of predecessor accounting reserve to accumulated losses
-
-
-
(69,874)
(26,815)
460
844
ACCUMULATED LOSSES AT THE END OF THE FINANCIAL YEAR
(237,136)
(201,640)
2 7 . A U D I TO R ' S R E M U N E R AT I O N
Ernst & Young (EY) was appointed as the company’s auditors from 16 February 2021 following the resignation of
Price Waterhouse Coopers (PwC). During the financial year, the following fees were paid or were payable for services
provided by EY and PwC, its related practices and unrelated audit firms:
AUDIT SERVICES – EY AUSTRALIA
Audit or review of the financial statements
Other assurance services
OTHER SERVICES - EY AUSTRALIA
Consultancy services
TOTAL OTHER SERVICES – EY AUSTRALIA
TOTAL SERVICES – EY AUSTRALIA
NETWORK FIRMS OF EY AUSTRALIA
Audit services
Taxation consultancy services
TOTAL SERVICES - NETWORK FIRMS OF EY AUSTRALIA
102
AUDIT SERVICES – PWC AUSTRALIA
Audit or review of the financial statements
Other assurance services
OTHER SERVICES - PWC AUSTRALIA
Taxation compliance services
Due diligence services
Consultancy services
TOTAL OTHER SERVICES – PWC AUSTRALIA
TOTAL SERVICES – PWC AUSTRALIA
AUDIT SERVICES – PWC AUSTRALIA
Audit services
Taxation compliance services
Taxation consultancy services
Compliance services
CONSOLIDATED
2021
$
2020
$
815,000
-
-
-
815,000
122,400
6,647
129,047
-
-
-
-
37,777
37,777
37,777
87,605
37,702
-
-
-
-
35,000
35,000
35,000
-
-
-
918,277
20,400
78,780
906,000
152,796
1,137,576
2,076,253
177,725
36,736
5,212
4,814
TOTAL SERVICES - NETWORK FIRMS OF PWC AUSTRALIA
125,307
224,487
NON-EY/PWC AUDIT FIRMS
Audit services - unrelated firms
Taxation compliance
Taxation consultancy
Other services
TOTAL SERVICES - NON-EY/PWC AUDIT FIRMS
102
4,917
2,664
-
56,925
64,506
49,789
21,795
38,801
11,533
121,918
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 2 8 . CA S H F L O W R E C O N C I L I AT I O N
( A ) R E C O N C I L I AT I O N O F L O S S A F T E R I N C O M E TA X TO N E T CAS H
U S E D I N O P E R AT I N G AC T I V I T I E S
LOSS AFTER INCOME TAX FOR THE YEAR
Adjustments for:
Depreciation and amortisation expense
Impairment expense
Share based payment expense
Profit on disposal of property, plant and equipment
Profit on disposal of investments
Loss allowance on trade receivables
Share of profit of associates accounted for using the equity method
Fair value adjustment on redemption liability
Fair value adjustment on contingent receivable
Amortisation of borrowing costs
Non-cash revaluation of lease liability
Gain on bargain purchase
Change in operating assets and liabilities:
Decrease in trade and other receivables
Decrease in accrued revenue
Decrease in derivative financial instruments
(Increase)/decrease in inventories
(Decrease)/increase in trade and other payables
Decrease in deferred revenue
Increase in provisions
(Decrease)/increase in other liabilities
Movements in tax balances
NET CASH USED IN OPERATING ACTIVITIES
CONSOLIDATED
2021
$’000
2020
$’000
(35,885)
(69,985)
29,219
426
1,515
(39)
(963)
(3,529)
790
(1,200)
170
192
(389)
228
13,660
16,649
-
20
32,742
67,947
873
(101)
(1,075)
8,368
(1,246)
(3,600)
883
275
191
-
57,109
31,619
360
(69)
14,584
(142,869)
(33,951)
(2,826)
995
(13,205)
(13,539)
(28,975)
7,306
(361)
(831)
(41,439)
103
103
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(B) RECONCILIATION OF ASSETS AND LIABILITIES ARISING FROM FINANCING ACTIVITIES
The movements in assets and liabilities impacting financing activities are outlined below:
CONSOLIDATED - 2021
Cash flows
Non-cash
Balance at
1 July 2020
$'000
Proceeds of
borrowings
$’000
Payments
relating to
leases (i)
$'000
Movement
in related
party loans
$'000
Other
movements
(ii)
$'000
Foreign
exchange
movement
$'000
Balance
at 30 June
2021
$'000
Current and non-current lease liabilities
29,759
-
(6,996)
Non-current borrowings - secured bank loan
101,000
(20,000)
Non-current receivables - loans to related parties
(4,397)
-
-
-
NET DEBT FROM FINANCING ACTIVITIES
126,362
(20,000)
(6,996)
-
-
-
-
8,234
-
3
(7)
-
-
30,990
81,000
(4,394)
8,237
(7)
107,596
CONSOLIDATED - 2020
Cash flows
Non-cash
Balance at
1 July 2019
$'000
Proceeds of
borrowings
$’000
Payments
relating to
leases (i)
$'000
Movement
in related
party loans
$'000
Other
movements
(ii)
$'000
Foreign
exchange
movement
$'000
Balance
at 30 June
2020
$'000
Current and non-current lease liabilities
Non-current borrowings - secured bank loan
Non-current receivables - loans to related parties
NET DEBT FROM FINANCING ACTIVITIES
28,495
57,000
(4,501)
80,994
-
(7,769)
44,000
-
-
-
44,000
(7,769)
-
-
104
104
9,163
(130)
29,759
-
-
-
-
101,000
(4,397)
9,163
(130)
126,362
(i) Payments relating to leases
Payments relating to leases include principal cash payments relating to lease liabilities.
(ii) Other movements
104
Lease liabilities other movements include interest paid on lease liabilities as the Group classifies this as cash flows from
operating activities. Refer note 18: lease liabilities for further information on lease liabilities non-cash movements.
104
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 2 9 . F I N A N C I A L R I S K M A N A G E M E N T
The Group’s principal financial instruments are outlined below. Details of the significant accounting policies and methods
adopted, including criteria for recognition, the basis of measurement and the basis on which income and expenses are
recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 39:
significant accounting policies.
Financial risk management is carried out under policies approved by the Board of Directors. The Group identifies, evaluates
and actively manages financial risks in close co-operation with the Group’s operating businesses. The Board of Directors
set policies covering specific areas, such as liquidity risk, foreign exchange risk, interest rate risk, credit risk and the use of
derivative financial instruments and non-derivative financial instruments.
The Group holds the following financial instruments:
FINANCIAL ASSETS
Cash and cash equivalents
Trade and other receivables (excluding contingent consideration receivable)
FINANCIAL ASSETS AT AMORTISED COST
Contingent consideration receivable
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
DERIVATIVE FINANCIAL INSTRUMENTS
FINANCIAL LIABILITIES
Trade and other payables (excluding contingent consideration payable)
Borrowings (excluding deferred borrowings costs)
FINANCIAL LIABILITIES AT AMORTISED COST
Deferred Consideration
Redemption liability
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
105
CONSOLIDATED
2021
$’000
2020
$’000
131,024
27,380
158,404
-
-
-
108,551
81,000
189,551
1,032
-
1,032
131,861
35,451
167,312
170
170
-
123,401
101,000
224,401
-
1,200
1,200
Trade and other receivables (excluding contingent consideration receivable) consists of current trade and other receivables
of $27.1 million (2020: $40.0 million) less prepayments of $5.5 million (2020: $9.1 million), plus non-current trade and other
receivables of $5.8 million (2020: $4.7 million) less contingent consideration receivable of $0.0 million (2020: $0.2 million).
(A) LIQUIDITY RISK
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
Helloworld Travel manages short term liquidity risk by matching surplus and deficit cash flows throughout the Group.
In addition, the Group ensures that there is further excess liquidity based on an ongoing assessment of the current
operating environment, in the event that unexpected circumstances should arise.
105
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
Management monitors rolling forecasts of the Group’s liquidity reserves (comprising the undrawn facilities outlined in
note 19: borrowings) and cash and cash equivalents (outlined in note 9: cash and cash equivalents) on the basis of expected
cash flows. Financing arrangements, including details on the interest-bearing liabilities and facilities and maturity dates,
are contained in note 19: borrowings. Due to the current disruption to the travel industry, Helloworld has taken additional
measures to ensure liquidity is managed prudently, refer note 1 (c) going concern.
(i) Maturities of financial liabilities
The tables below analyse and arrange the Group’s financial liabilities into relevant maturity groupings based on their
contractual maturities for all non-derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal
their carrying balances as the impact of discounting is not significant.
CONSOLIDATED - 2021
NON-DERIVATIVE FINANCIAL INSTRUMENTS
Carrying
value
$’000
Less than
6 months
$’000
Contractual maturities of financial liabilities
4–5
years
$’000
6–12
months
$’000
2–3
years
$’000
1–2
years
$’000
3–4
years
$’000
More than
5 years
$’000
Total
$’000
Trade and other payables
108,551
108,551
-
-
-
-
-
- 108,551
Lease liabilities
Interest bearing liabilities – secured (i)
Bank guarantees and letter of credit
Deferred Consideration
30,990
81,000
-
-
4,335
3,934
6,129
5,016
5,054
4,918
3,239
32,625
845
831 81,866
-
-
-
1,681
877
455
-
1,032
-
-
-
-
-
461
-
-
83,542
2,975
-
6,449
1,032
TOTAL
220,541
113,731
6,446 89,904
5,471
5,054
5,379
6,214 232,199
106
CONSOLIDATED - 2020
NON-DERIVATIVE FINANCIAL INSTRUMENTS
Carrying
value
$’000
Less than
6 months
$’000
Contractual maturities of financial liabilities
4–5
years
$’000
6–12
months
$’000
3–4
years
$’000
1–2
years
$’000
2–3
years
$’000
More than
5 years
$’000
Total
$’000
Trade and other payables
Lease liabilities (restated)
Restructuring provision
Redemption liability
93,967
29,759
5,998
1,200
Interest bearing liabilities – secured (i)
101,000
Bank guarantees and letter of credit
-
1,100
2,730
93,967
-
-
-
-
-
-
93,967
4,911
4,772
7,438
5,539
3,403
3,356
2,200
31,619
-
-
5,998
-
-
-
-
1,200
1,083 74,025 29,146
-
-
-
3,039
1,380
841
455
-
-
-
-
-
-
5,998
1,200
- 105,354
3,066
11,511
TOTAL
231,812
102,708 14,892 82,843 36,726
3,858
3,356
5,266 249,649
(i) Excludes deferred borrowing costs.
(B) MARKET RISK
(i) Foreign exchange risk
The Group operates internationally and is exposed in its wholesale operations to foreign exchange risk arising from future
cash flows relating to financial instruments denominated in a currency that is different to its local currency. Due to the
nature of Helloworld Travel’s wholesale operations, revenue is earned in the wholesale businesses’ local currency, however
the associated cost of sales is settled by Helloworld Travel based on quoted prices in the local currency of the supplier.
Prior to COVID-19, foreign exchange risk was measured through a forecast of highly probably future purchases, with hedge
contracts to purchase foreign currencies timed to mature when payments to suppliers are scheduled, in order to minimise the
volatility of the Australian dollar cash flows.
The Group’s hedging policy requires management to document at the inception of the hedging transaction, the economic
relationship between the hedging instruments and hedged items, as well as its risk management objective and strategy for
undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing
basis, whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in
offsetting changes in the cash flows of hedged items.
106
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au The Board’s risk management policy was to hedge forecasted foreign currency cash flows in the wholesale businesses using
forward foreign exchange contracts and to not enter into, issue or hold derivative financial instruments for speculative trading
purposes. As a consequence of COVID-19, the Group has temporary ceased hedging foreign currency payables due to the
uncertainty as to whether bookings will result in foreign currency payments.
Exposure
As at 30 June 2021, the Group’s net exposure to foreign currency risk is set out in the table below. The table includes the
following:
• Foreign cash holdings as at year end;
• Receivables including accrued revenue denominated in foreign currencies as at year end;
• Current trade payables and forward payment obligations in foreign currencies as at year end; and
• Foreign currency exchange contracts outstanding as at year end.
CURRENCY
USD
EUR
GBP
FJD
NZD
Other currencies
NET TOTAL FOREIGN CURRENCY EXPOSURE ASSET
Sensitivity
CONSOLIDATED
2021
$’000
AUD
equivalent
2020
$’000
AUD
equivalent
107
-
-
74
2,380
7,094
1,070
10,618
(3,910)
(448)
(198)
(2,352)
8,512
(508)
1,096
The following table summarises the impact of a 10% increase (strengthening of AUD) and decrease (weakening of
AUD) in foreign exchange rates on the net profit in the statement of profit or loss and other comprehensive income.
The sensitivity rate represents management’s assessment of the reasonable possible change in foreign exchange rates
(focusing on New Zealand and Fiji) and is used when reporting foreign currency risk to key management personnel. The
sensitivity analysis assumes hedge effectiveness and that all other variables including interest rates, remain constant.
10% increase (2020: 10%)
10% decrease (2020: 10%)
CONSOLIDATED
Impact on net profit
before tax
2021
$’000
(965)
1,180
2020
$’000
(736)
973
107
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(ii)
Interest rate risk
The Group’s interest rate risk arises from future cash flows relating to cash assets and cash borrowings with variable interest
rates. Helloworld Travel does not hedge its exposure to fluctuations in future cash flows due to changes in market interest rates.
Helloworld Travel manages interest rate risk by ensuring that debt servicing costs are minimised and interest earned is
maximised. This includes reviews undertaken, where required, to consider the restructuring of interest bearing debt, the
possibility of repaying interest bearing debt and the level of investment of surplus cash in interest bearing accounts.
Exposure
As at 30 June 2021, the Group had term deposits amounting to $9.6 million (2020: $17.1 million) with an average interest
rate of 3.0% per annum (2020: 3.0%). In addition, the Group had drawn down borrowings of $81.0 million (2020: $101.0
million) and other cash funds held in operational and foreign currency bank accounts with interest at market rates under
normal commercial terms.
Sensitivity
108
The information below summarises the impact of a 100 basis points per annum increase and decrease in interest rates
on the net profit in the statement of profit or loss and other comprehensive income.
SHORT TERM DEPOSITS
Increase by 100 basis points (2020: 100 basis points)
Decrease by 100 basis points (2020: 100 basis points)
BORROWINGS
Increase by 100 basis points (2020: 100 basis points)
Decrease by 100 basis points (2020: 100 basis points)
(C) CREDIT RISK
CONSOLIDATED
Impact on net profit
before tax
2021
$’000
96
(96)
(810)
810
2020
$’000
171
(171)
(1,010)
1,010
The Group undertakes transactions with a large number of customers and other counterparties in various countries
in accordance with Board approved policy. Credit risk arises from the possibility that a counterparty will default on
its contractual obligation relating to cash and cash equivalents, trade and other receivables, accrued revenue and
favourable derivatives, resulting in financial loss to the Group. Credit risk is measured at fair value.
108
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au Risk management
The Group has credit risk associated with travel agents, airlines, industry settlement organisations and direct
suppliers. The Group minimises credit risk through the application of stringent credit policies, regular monitoring and
accreditation of travel agents through industry programs. A portion of Helloworld Travel’s credit risk is also mitigated
through offsetting receivable and payable balances between Helloworld Travel and key suppliers. In addition, the
Group’s key customers include various Australian Government agencies which have a low risk of default.
Where specific credit risk is identified with a counterparty, the Group requires pre-payment for services provided.
A reservation for such a counterparty is not confirmed or ticketed prior to receiving payment in full.
Collateral is not held as security, nor is it the Group’s policy to transfer receivables to special purpose entities.
Exposure
The Group’s maximum exposure to credit risk is the carrying amount of the financial asset, net of any loss allowance.
The table below sets out the maximum exposure to credit risk as at 30 June:
Cash and cash equivalents
Trade and other receivables (including contingent consideration receivable) (i)
Accrued revenue
TOTAL CREDIT RISK EXPOSURE
Impairment of financial assets
CONSOLIDATED
2021
$’000
2020
$’000
109
131,024
131,861
32,882
18,333
44,683
34,482
182,239
211,026
The Group has three types of financial assets that are subject to the expected credit loss model:
• Trade receivables
• Accrued revenue
• Investments and other financial assets at amortised cost (such as other receivables and loans to related parties)
The Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected
loss allowance for all trade receivables and accrued revenue, refer note 39: significant accounting policies for more
information regarding the calculation of impairment losses.
The Group undertakes a debtor by debtor review with a provision for each debtor calculated based on each debtor’s
recent and longer-term history of debt repayments. All receivables are issued with a maximum of 30 days terms.
109
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
On this basis, the loss allowance as at 30 June 2021 and 30 June 2020 was determined as follows for both trade
receivables and accrued revenue:
CONSOLIDATED - 2021
Trade receivables
Accrued revenue
GROSS CARRYING AMOUNTS
Expected loss rate
Trade receivables
Accrued revenue
LOSS ALLOWANCES
NET CARRYING AMOUNTS
Not past due
$’000
Past Due
1-30 days
$’000
Past due
31-60 days
$’000
Past due
61-90 days
$’000
More than
90 days
$’000
7,102
18,333
25,435
2.8%
(199)
-
(199)
25,236
3,840
2,442
-
-
3,840
2,442
2.5%
(96)
-
(96)
3,744
4.0%
(98)
-
(98)
2,344
Total
$’000
16,342
21,533
37,875
207
-
207
2,751
3,200
5,951
15.0%
75.0%
(31)
-
(31)
176
(2,063)
(2,487)
(3,200)
(3,200)
(5,263)
688
(5,687)
32,188
The Group recognised a larger allowance for expected credit losses due to the COVID-19 pandemic. The gross carrying
amount of trade receivables and accrued revenue as at 30 June 2021 was assessed based on management’s judgement
using information available at the time. The allowance incorporates management’s review of specific debtors which have
been individually assessed due to indications that the debt owed may not be repaid.
As at 30 June 2021, trade receivables of $7.0 million (2020: $11.6 million) were aged between 1 and more than 90 days
past due but not impaired. These relate to a number of independent counterparties for whom there is no recent history
of default.
CONSOLIDATED - 2020
110
Trade receivables
Accrued revenue
GROSS CARRYING AMOUNTS
Expected loss rate
Trade receivables
Accrued revenue
LOSS ALLOWANCES
NET CARRYING AMOUNTS
Not past due
$’000
Past Due
1-30 days
$’000
Past due
31-60 days
$’000
Past due
61-90 days
$’000
More than
90 days
$’000
12,145
38,182
50,327
7.9%
(253)
(3,700)
(3,953)
46,374
1,214
1,371
7,898
5,358
-
-
-
-
1,214
1,371
7,898
5,358
1.6%
(20)
-
(20)
1,194
1.5%
(20)
-
(20)
1,351
13.0%
(1,029)
-
(1,029)
6,869
59.6%
(3,195)
(4,517)
-
(3,700)
(3,195)
2,163
(8,217)
57,951
Total
$’000
27,986
38,182
66,168
Movements in the loss allowance for both trade receivables and accrued revenue are as follows:
BALANCE AT 1 JULY
Acquisitions through business combinations
Additional loss allowance recognised
Writeback of loss allowance
Receivables written off during the year as uncollectable
Other
BALANCE AT 30 JUNE
CONSOLIDATED
2021
$’000
2020
$’000
8,217
-
2,614
(5,144)
-
-
5,687
724
20
7,788
(61)
(272)
18
8,217
During the current year, a loss allowance of $2.6 million (2020: $7.7 million) relating to receivables and accrued revenue
arising from contracts with customers was recognised in the statement of profit or loss and other comprehensive income.
110
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au Impairment of other financial assets at amortised cost
There are no significant other receivables, or classes of receivables, that have been recognised that would otherwise,
without negotiation, be past due or impaired. It is expected that all other amounts will be received when due. The Group
does not hold any collateral in relation to receivables.
(D) NET FAIR VALUES
The fair values of current cash and cash equivalents and non-interest bearing current financial assets and current
financial liabilities approximate their carrying values due to their short maturity.
The fair values of interest bearing financial assets and liabilities, together with their carrying amounts in the statement
of financial position, are as follows:
CONSOLIDATED
Interest bearing assets – non-current
TOTAL ASSETS
Interest bearing liabilities – non-current
TOTAL LIABILITIES
(E) FAIR VALUE HIERARCHY
2021
2020
Carrying
amount
$’000
4,394
4,394
81,000
81,000
Fair
value
$’000
4,394
4,394
Carrying
amount
$’000
4,397
4,397
Fair
value
$’000
4,397
4,397
81,000
81,000
100,519
100,519
101,000
101,000
Certain judgements and estimates are made in determining the fair values of the financial instruments that are
recognised and measured at fair value in the financial statements. To provide an indication of the reliability of the inputs
used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under
111
the accounting standards. The different levels have been defined as follows:
• Level 1: fair value of financial instruments traded in active markets is based on quoted market prices at the end of the
reporting period. The quoted market price used for financial assets is the current bid price.
• Level 2: fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2.
• Level 3: if one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.
There were no transfers between level 1, 2 and 3 for recurring fair value measurements during the year. The Group’s
policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.
The table below analyses financial instruments carried at fair value, by valuation method.
CONSOLIDATED - 2021
Interest bearing assets (i)
TOTAL ASSETS
Deferred Consideration (ii)
Interest bearing liabilities(iii)
TOTAL LIABILITIES
Level 1
$’000
Level 2
$’000
-
-
-
-
-
-
-
-
-
-
Level 3
$’000
4,394
4,394
1,032
81,000
82,032
Total
$’000
4,394
4,394
1,032
81,000
82,032
111
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
CONSOLIDATED - 2020
Contingent consideration receivable (i)
Interest bearing assets
TOTAL ASSETS
Redemption liability (ii)
Interest bearing liabilities
TOTAL LIABILITIES
Level 1
$’000
Level 2
$’000
-
-
-
-
-
-
-
-
-
-
-
-
Level 3
$’000
170
4,397
4,567
1,200
101,000
102,200
Total
$’000
170
4,397
4,567
1,200
101,000
102,200
Interest bearing assets are made up of loans to related parties. Refer to note 31: Related Party Transactions
(i)
(ii) Deferred consideration relates to the acquisition of CruiseCo. Refer to note 35: Business Acquisitions
(iii) Interest bearing liabilities are loans from Westpac to Helloworld. Refer to note 19: Borrowings
(F) CAPITAL MANAGEMENT
(i) Capital Structure
112
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business.
The Board continually monitors the return on capital, the level of dividends to ordinary shareholders, cash flow generation
and the debt to equity mix in determining its appropriate capital structure.
In order to maintain or adjust the capital structure, the Board considers the following:
• Potential repayment of debt obligations;
• Future fixed asset investment;
• Funding of any future proposed acquisitions via either debt or equity instruments; and
• The appropriate level of future dividends to ordinary shareholders to support investor returns.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
(ii) Loan covenants
Under the terms of the borrowing facility, the Group is required to comply with certain loan covenants. The Group
has complied with these covenants throughout the current and prior year, with no breaches of loan covenants noted.
Earnings based covenant waivers have been provided until June 2022. With the liquidity covenant of $55.0 million,
reducing by $5.0 million in October 2021 and a further $5.0 million in January 2022.
112
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 3 0 . C O M M I T M E N T S A N D C O N T I N G E N C I E S
(A) COMMITMENTS
The Group has no commitments as at 30 June 2021.
The Group has not entered into any material new lease agreements post 30 June 2021.
(B) GUARANTEES
The Group has on issue bank guarantees and letters of credit as at 30 June 2021 totalling $7.95 million (2020: $11.5
million). In addition, Helloworld Travel Limited has entered into a Deed of Cross Guarantee with certain Australian wholly
owned controlled entities as outlined in note 33: parent entity information.
(C) BUSINESS ACQUISITION COMMITMENTS
(i) Purchase of remaining ownership interest in MTA
In FY17, Helloworld Travel acquired 50.0% ownership in MTA for a total consideration of $14.2 million. The sale and
purchase agreement for the original 50.0% interest purchased outlines the conditions and mechanism for determining
the basis of the consideration for the remaining 50.0% ownership interest. Helloworld Travel has a call option to acquire
the remaining 50.0% ownership interest in MTA on 1 December 2021. The associate party has a put option to sell its
remaining 50.0% ownership interest to Helloworld Travel 30 days after the expiry of the call option period.
(ii) Commercial agreements entered into with BCD Travel and Gilpin Travel include options to
purchase 100% of the ownership interests in these businesses
During the year ended 30 June 2019, Helloworld Travel entered into commercial agreements for the distribution of
travel products. Two agreements included conditions on the future potential purchase these businesses in the financial
year ending 2024. In addition, the owners of the businesses have a put option to sell 100% of their ownership interest to
Helloworld Travel at the same point in time.
The value of the commitment for these arrangements is based on a future valuation of the financial performance of the
respective business in the preceding financial year prior to the exercise of the option, at a set market based valuation
multiple. As there is no current ownership control by Helloworld Travel in these businesses, no put option financial
instrument valuation is included in the 2021 financial statements.
113
(D) CONTINGENCIES
As at 30 June 2021, there are no significant contingent assets or contingent liabilities.
113
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
3 1 . R E L AT E D PA RT Y T R A N SA C T I O N S
(A) SUBSIDIARIES
Details relating to subsidiaries are included in note 32: particulars in relation to controlled entities.
(B) ULTIMATE AND DIRECT PARENT
Helloworld Travel Limited is the legal owner of the Group. Refer to note 33: parent entity information for further information.
(C) ASSOCIATES
Helloworld Travel undertake transactions with its associates. The list of associates and joint ventures held by Helloworld
Travel are outlined in note 12: investments accounted for using the equity method.
(D) ENTITIES WITH SIGNIFICANT INFLUENCE
The following entities were considered to have significant influence over the Group during the year:
• Entities related to Andrew Burnes and Cinzia Burnes hold 27.2% as at 30 June 2021 (2020: 31.4%) of the ordinary shares
of Helloworld Travel Limited following the FY16 merger with the AOT Group and its controlled entities. Andrew Burnes is
the CEO and Managing Director of Helloworld Travel Limited. Cinzia Burnes is an Executive Director of the Company.
• QH Tours Limited, a wholly owned subsidiary of Qantas Airways Limited, holds 12.4% as at 30 June 2021 (2020: 15.4%) of
the ordinary shares of Helloworld Travel Limited and has an executive member, Andrew Finch on the Board.
(E) KEY MANAGEMENT PERSONNEL (KMP) COMPENSATION
114
Short term employee benefits
Long term employee benefits
Share based payment benefits
Post-employment benefits
TOTAL KMP COMPENSATION
CONSOLIDATED
2021
$
2020
$
2,046,677
3,505,048
85,872
405,900
135,959
56,649
232,000
112,148
2,674,408
3,905,845
Detailed remuneration disclosures are provided in the remuneration report, contained within the Directors Report.
(F) TRANSACTIONS WITH RELATED PARTIES
The following trading transactions occurred with related parties:
(i) Revenue derived from:
Associates and joint ventures
Entities with significant influence over the Group
(ii) Expenses incurred as a result of transactions with:
Associates and joint ventures
Entities with significant influence over the Group
(iii) Receivables as at 30 June:
Associates and joint ventures
Entities with significant influence over the Group
(iv) Payables as at 30 June:
Associates and joint ventures
Entities with significant influence over the Group
114
CONSOLIDATED
2021
$’000
2020
$’000
161
-
2,038
6,364
191
2,677
521
3,513
887
28,542
5,104
6,955
769
5,555
824
1,156
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au Terms and conditions and nature of related party trading transactions
Sales to and purchases from related parties are made at arm's length at normal market prices and on normal commercial
terms. Andrew and Cinzia Burnes are both Directors of Normanby Road Holdings Pty Limited (ATF 179 Normanby Road
Trust), which owns and leases to Helloworld Travel, the head office premises for the Group’s operations. Helloworld Travel
derived revenue from Qantas Airways Limited and its controlled entities (Qantas), through commercial agreements and
incur expenses under an agreement with Qantas for services including shared services, IT services, labour recharges,
frequent flyer arrangement, intellectual property rights and website agreements. Transactions and balances with these
entities are included in part (f) above.
Related party trade receivables are non-interest bearing and are generally on 30 day terms from invoice. The Group
settles related party trade payables according to the payment conditions confirmed by the supplier of services and are
non-interest bearing and generally on 30 day terms from invoice.
The following loan transactions occurred with related parties:
(i)
Interest revenue from:
Associates of the Group
(ii) Non-current loans as at 30 June:
Associates of the Group
Terms and conditions of related party loan transactions
(i) Hunter Travel Group Pty Limited (HTG):
CONSOLIDATED
2021
$’000
2020
$’000
91
130
4,344
4,344
On 31 August 2017, Helloworld Travel provided a five year loan to the owners of HTG, amounting to $1.3 million. In the
prior year, Helloworld Travel provided an additional five year loan to the owners of HTG, amounting to $2.5 million. During
the current year, no repayments were made by the owners. As at 30 June 2021, the outstanding loan balance amounts to
115
$3.4 million (2020: $3.4 million).
The loan was provided to the HTG business to support its strategic business expansion. The loan was made on an arm’s
length basis under normal commercial terms and conditions and is secured by the assets of the business. Interest
accrues daily and is invoiced on a quarterly basis on 30 day terms. The interest rate is based on the Australian Bank Bill
swap reference plus a commercial mark-up margin. Under the terms of the loan agreement, Helloworld Travel has the
right to convert some of the outstanding loan balance to HTG shares at specified conversion periods in three to five
years from the loan date, to increase its possible shareholding in HTG from 12% up to a maximum of 25%.
(ii) Cooney Investments Pty Limited:
On 29 August 2018, Helloworld Travel provided a five year loan to the owners of Cooney Investments Pty Limited,
amounting to $1.6 million. During the current year, no repayments were received (2020: $0.2 million). As at 30 June 2021,
the outstanding loan balance amounts to $1.0 million (2020: $1.0 million).
115
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(G) TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL (KMP)
During the current year, the LTIP shares previously allocated to John Constable were forfeited as a result of his
resignation. In relation to the shares previously granted to Nick Sutherland, the Board determined that the TSR
share-based performance criteria KPI was not achieved and accordingly these lapsed.
116
As at 30 June 2021, there are nil (2020: 700,000) shares allocated under the LTIP program to KMP. The loans were
provided to each participant equal to the number of shares issued at market value. As at 30 June 2021, the loan to
the KMP amounts to nil (2020: $2.9 million) due to forfeiture of shares failing to vest and loans extinguished during
the year.
The loans provided were interest free and non-recourse and are accordingly not recorded as receivables on the
Group’s balance sheet.
Set out below is the summary of the shares and loan value with the KMP:
Year ended 30 June 2021
Number of Shares
Loan Value ($)
Name
Role
Opening
Balance
Addition as
KMP
Fortified/
lapsed
Vested
Closing
Balance
Opening
Balance Movement
Closing
Balance
J Constable
Group GM - Retail &
Commercial
500,000
N Sutherland Group GM - Corporate
200,000
700,000
- (500,000)
- (200,000)
- (700,000)
-
-
-
-
-
-
2,184,028 (2,184,028)
678,697
(678,697)
2,862,725 (2,862,725)
-
-
-
Year ended 30 June 2020
Number of Shares
Loan Value ($)
Name
Role
Opening
Balance
Addition as
KMP Granted
Vested
Closing
Balance
Opening
Balance Movement
Closing
Balance
M Burnett
Chief Financial Officer
500,000
S McKearney Group GM - New Zealand
150,000
J Constable
Group GM - Retail &
Commercial
500,000
N Sutherland Group GM - Corporate
200,000
1,350,000
-
-
-
-
-
-
-
-
-
-
(500,000)
(150,000)
-
-
1,349,427 (1,349,427)
404,828
(404,828)
-
-
- 500,000
2,265,421
(81,393) 2,184,028
- 200,000
711,254
(32,557)
678,697
(650,000) 700,000
4,730,930 (1,868,205) 2,862,725
The detailed KMP remuneration disclosures are provided in the Remuneration Report, contained within the Directors Report.
116
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 32. PARTICULARS IN RELATION TO CONTROLLED ENTITIES AS AT 30 JUNE 2021
The consolidated financial statements incorporate the assets, liabilities and results of the following principal
subsidiaries in accordance with the accounting policy described in note 40. The proportion of ownership interest
shown in this table is equal to the proportion of voting power held.
NAME
COUNTRY OF INCORPORATION
OWNERSHIP INTEREST
2020
%
2021
%
Helloworld Travel Limited 1, 2
12518 Pty Limited 3
20118181 Pty Limited 3
2012518 Pty Limited 3
ACN 003 683 967 Pty Limited 2
AOT Group Limited 2
AOT Inbound Pty Limited 2
AOT Retail Pty Limited 2
ATS Logistics Pty Limited 3
ATS Pacific Pty Limited 2
Aus STS Holdco II Pty Limited 2
Australian Online Travel Pty Limited 2
Best Flights Pty Limited 2
Communico Services Pty Limited 2
FB Freight Pty Limited 3
Flight Systems Pty Limited 2
Granted Worldwide Pty Limited 2
GSS Travel NZ Pty Limited 2
Harvey Holidays Pty Limited 2
Harvey World Travel Franchises Pty Limited 2
Harvey World Travel Group Pty Limited 2
Helloworld Franchising Pty Limited 2
Helloworld Group Pty Limited 2
Helloworld IP Pty Limited 2
Helloworld Services Pty Limited 2
Helloworld Travel Services (Australia) Pty Limited
Helloworld Travel Services Group Pty Limited 2
Helloworld Travel Services Holdings Pty Limited 2
Helloworld Travel Southland Pty Limited 2
Inspire Travel Management Pty Limited 3
Jetset Pty Limited 2
Jetset Travelworld Network Pty Limited 2
JTG Corporate Pty Limited 2
Keygate Holdings Pty Limited
Luxury Getaways Pty Limited 2
Magellan Travel Pty Limited 2
Nexus Point Travel Pty Limited 2
Pillowpoints Pty Limited 2
Viva Holidays II Limited 2, 3
QBT Pty Limited 2
Quay Services Pty Limited 2
Retail Travel Investments Pty Limited 2
Show Group Freight Pty Limited 3
Show Group Pty Limited 2
Skiddoo IT Pty Limited 2
Skiddoo Pty Limited 2
Sunlover Holidays Pty Limited 2
Transonic Travel Pty Limited 2
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
117
N/A
100.0
100.0
100.0
100.0
100.0
100.0
100.0
70.0
100.0
100.0
100.0
100.0
100.0
70.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
60.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
70.0
100.0
100.0
100.0
100.0
100.0
N/A
-
-
-
100.0
100.0
100.0
100.0
-
100.0
100.0
100.0
100.0
100.0
-
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
40.0
100.0
100.0
100.0
60.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
-
100.0
100.0
100.0
100.0
100.0
117
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
NAME
COUNTRY OF INCORPORATION
OWNERSHIP INTEREST
2020
%
2021
%
Traveledge Pty Limited
Travelpoint Pty Limited 2
Travelscene Pty Limited 2
Travelworld Pty Limited 2
Viva Holidays Pty Limited 2
AOT Business Consulting (Shanghai) Limited
Allied Tour Service (Pacific) Pte Limited
Coral Sun (Fiji) Pte Limited
Great Sights (Fiji) Pte Limited
Tourist Transport (Fiji) Pte Limited
Helloworld Travel Services Greece M.I.K.E
AOT India PVT Limited
AOT New Zealand Limited
Atlantic and Pacific Business Travel Limited
Australian Travel Service (Pacific) Limited
118
Atlas Limited
Biztrav Limited
GP Holiday Shoppe Limited
Gullivers Pacific Limited
Harvey World Travel (2008) Limited
Helloworld NZ Franchising Limited
Helloworld NZ Limited
Helloworld Travel Services (NZ) Limited
Just Tickets Limited
Pacific Leisure Group Limited
Show Group (NZ) Limited
Sunlover Holidays Limited
Travel Brokers Limited
United Travel Limited
Williment Travel Group Limited
Skiddoo Management Inc.
Skiddoo Philippines Inc.
Helloworld Travel Singapore Pte. Limited 3
Skiddoo Pte. Limited
QBT USA Inc.3
1. Helloworld Travel Limited
Australia
Australia
Australia
Australia
Australia
China
Fiji
Fiji
Fiji
Fiji
Greece
India
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
Philippines
Philippines
Singapore
Singapore
United States of America
100.0
100.0
100.0
100.0
100.0
100.0
100.0
60.0
60.0
60.0
100.0
100.0
100.0
100.0
100.0
100.0
76.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
-
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
60.0
60.0
60.0
100.0
100.0
100.0
100.0
100.0
100.0
76.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
-
Helloworld Travel Limited is the legal owner of the Group. Refer note 33: parent entity information for further details.
2. Deed of cross guarantee
These entities are included in the Deed of Cross Guarantee, refer note 34: deed of cross guarantee for further details.
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, these controlled entities are relieved
from the Corporations Act 2001 requirements for preparation, audit and lodgement of standalone financial statements.
118
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 3. Changes to controlled entities during the current year
During the current year, the following entities were established or acquired following a business acquisition:
• On 31 October 2020, Helloworld Travel acquired an additional 60% of Inspire Travel Management (ITM) a joint venture
between Helloworld Travel and In Travel Group, an indigenous travel management company. As a result, Helloworld
Travel now owns 100% of ITM, a travel management business providing services throughout Australia. Helloworld
Travel’s previous investment in ITM was accounted for using the equity method.
• On 12 February 2021, Helloworld Travel began FB Freight Pty Ltd, a controlled entity with a minority interest held by
DEF Venture Capital Pty Ltd as trustee for DEF Venture Capital Trust (DEF). Helloworld Travel has a 70.0% interest,
with the remaining 30.0% owned by DEF. The results of FB Freight are consolidated into the Groups results.
FB Freight Pty Limited provides freight and logistic services for the entertainment, sports, theatre, and concert
industries throughout Australia.
This company registered two new legal entities as wholly owned subsidiaries during the year:
• ATS Logistics Pty Ltd (registered 22nd March 2021)
• ShowGroup Freight Pty Ltd (registered 29th March 2021)
• On 1 January 2021, Helloworld Travel registered a new wholly owned entity in the United States, QBT USA Inc.
• On 23 April 2021, Helloworld Travel registered a new wholly owned entity, Discovery Travel Centre Cammeray Pty
Limited.
• On 19 May 2021, Helloworld Travel registered two new wholly owned entities:
• 12518 Pty Limited
• 20118181 Pty Limited
• On 2 June 2021, Helloworld Travel registered a new wholly owned entity, 2012518 Pty Limited
• On 8 April 2021 Helloworld Travel deregistered one Singapore entity:
• Helloworld Travel Singapore Pte Limited
• During the current year, Qantas Holidays Limited changed its name to Viva Holidays II Limited.
3 3 . PA R E N T E N T I T Y I N F O R M AT I O N
The legal parent company of the Group is Helloworld Travel Limited. Set out below is the supplementary
information about the parent entity.
119
(A) RESULTS OF PARENT ENTITY
Summarised statement of profit or loss and other comprehensive income
Profit/(loss) after income tax
TOTAL COMPREHENSIVE INCOME/(LOSS)
Summarised statement of financial position
Total current assets
Total non-current assets
TOTAL ASSETS
Total current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Share based payments reserve
Accumulated losses
TOTAL EQUITY
PARENT
2021
$’000
2,650
2,650
2020
$’000
(82,122)
(82,122)
PARENT
2021
$’000
118,327
160,575
278,902
156
156
2020
$’000
71,656
159,662
231,318
5,469
5,469
278,746
225,849
625,033
4,040
576,300
2,525
(350,327)
(352,976)
278,746
225,849
119
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(B) PARENT ENTITY GUARANTEES IN RESPECT OF DEBTS OF ITS SUBSIDIARIES
The legal parent Helloworld Travel Limited has entered into a Deed of Cross Guarantee with the effect that the Company
guarantees debts in respect of its subsidiaries. Details of the Deed of Cross Guarantee and the subsidiaries subject to
the deed are disclosed in note 34: deed of cross guarantee.
(C) PARENT ENTITY TAX LIABILITIES IN RESPECT OF ITS SUBSIDIARIES
The parent entity has entered into a tax funding agreement with the effect that the Company guarantees tax liabilities
of other entities in the tax consolidated group. As at 30 June 2021 the tax consolidated group had a tax receivable of
$0.5 million (2020: $5.4 million payable).
(D) PARENT ENTITY CONTINGENCIES
As at 30 June 2021, there are no significant contingent assets or contingent liabilities.
(E) PARENT ENTITY ISSUED CAPITAL
120
The issued capital of the parent entity does not equal the issued capital of the consolidated Group due to reverse
acquisition business combinations previously undertaken by the Group.
3 4 . D E E D O F C R O S S G UA R A N T E E
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, the entities identified in note
33: particulars in relation to controlled entities are relieved from the Corporations Act 2001 requirements for
preparation, audit and lodgement of financial statements and Directors’ reports.
Helloworld Travel has had a Deed of Cross Guarantee in place since 25 May 2007, which has been amended from
time to time to add or remove entities. On 20 June 2018, a replacement Deed of Cross Guarantee was entered
into which included the addition of certain wholly owned Australia controlled entities in the prior year. The effect
of the Deed is that Helloworld Travel Limited has guaranteed to pay any deficiency in the event of the winding up
of the controlled entities or if they do not meet their obligations under the terms of overdrafts, loans, leases or
other liabilities subject to guarantee. The controlled entities which are party to the Deed have also given a similar
guarantee in the event Helloworld Travel Limited is wound up or if it does not meet its obligations under the terms
of overdrafts, loans, leases or other liabilities subject to guarantee.
During the current year, no entities were added into the Deed of Cross Guarantee and no entities were deregistered
or removed from the Deed of Cross Guarantee.
The consolidated income statement and statement of financial position have been prepared in accordance with
the accounting policy note 40: significant accounting policies comprising the Company and the controlled entities
which are party to the Deed, after eliminating all transactions between parties to the Deed of Cross Guarantee and
is set out below.
120
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au (A) CLOSED GROUP STATEMENT OF LOSS AND OTHER COMPREHENSIVE LOSS
TOTAL REVENUE AND OTHER INCOME
Employee benefits expenses
Advertising, selling and marketing expenses
Communication and technology expenses
Occupancy expenses
Operating expenses
Depreciation and amortisation expense
Impairment charges
Finance expense
Profit on disposal of investments
Share of profit in associates accounted for using the equity method
LOSS BEFORE INCOME TAX BENEFIT
Income tax benefit
LOSS AFTER INCOME TAX BENEFIT
OTHER COMPREHENSIVE LOSS
Exchange differences on translation of foreign operations
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
CLOSED GROUP
2021
$’000
2020
$’000
65,397
157,732
(55,700)
(3,460)
(7,060)
(843)
(6,054)
(11,360)
(2,678)
(3,166)
(112)
(8)
(84,406)
(27,212)
(10,860)
(2,000)
(29,605)
(12,982)
(66,350)
(3,372)
1,075
(25)
(25,044)
(78,005)
7,788
6,918
(17,256)
(71,087)
121
4
570
(17,252)
(70,517)
Prior year revenue includes $10.0 million in dividends received from Australian entities outside the Closed Group.
These dividends are not assessable income for tax purposes. No dividends were received from entities outside the
Closed Group in the current year.
(B) CLOSED GROUP MOVEMENT IN ACCUMULATED LOSSES
CLOSED GROUP
2021
$’000
2020
$’000
ACCUMULATED LOSSES AT THE BEGINNING OF THE FINANCIAL YEAR
(247,320)
(185,866)
Loss after income tax benefit
Dividends
Dividends associated with LTIP
Retained earnings transferred in due to change in closed group
Transfer of predecessor accounting reserve to accumulated losses
(17,256)
-
-
-
(3,698)
(71,087)
(26,815)
460
35,818
170
ACCUMULATED LOSSES AT THE END OF THE FINANCIAL YEAR
(268,274)
(247,320)
121
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au CLOSED GROUP
2021
$’000
2020
$’000
106,970
23,271
14,262
180
87,933
26,168
6,607
185
144,683
120,893
4,471
818
17,129
179,206
19,727
85,611
306,962
451,645
4,474
1,091
16,399
180,461
23,605
88,243
314,273
435,166
173,973
132,355
5,837
19,768
17,512
-
6,220
21,461
42,086
5,239
217,090
207,361
80,711
16,311
20,798
1,082
1,234
120,136
337,226
100,519
13,922
25,820
997
1,419
142,677
350,038
114,419
85,128
386,060
(3,367)
337,327
(4,879)
(268,274)
(247,320)
114,419
85,128
F I N A N C I A L STAT E M E N T S
(C) CLOSED GROUP STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Accrued revenue
Inventories
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Property, plant and equipment
Right of use assets
Intangible assets
Deferred tax assets
Investments
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease liabilities
Provisions
Income tax payable
Deferred revenue
TOTAL CURRENT LIABILITIES
122
NON-CURRENT LIABILITIES
Borrowings
Lease liabilities
Deferred tax liabilities
Provisions
Other non-current liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
122
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au 3 5 . B U S I N E S S AC Q U I S I T I O N S
(A) ACQUISITION OF THE CRUISECO BUSINESS (CRUISECO)
(i) Summary of acquisition
On 30 November 2020, Helloworld Travel completed the acquisition for 100% of the CruiseCo business (CruiseCo),
a specialist cruise package wholesaler. The acquisition will allow Helloworld Travel to expand its cruise offerings in
Australia and New Zealand, complementing the existing cruise wholesale business.
Details of the purchase consideration, net assets acquired and goodwill of CruiseCo are as follows:
Purchase price
Deferred consideration
PURCHASE CONSIDERATION
The provisional assets and liabilities recognised from the CruiseCo acquisition are as follows:
Cash and cash equivalents
Trade and other payables
Provisions
NET ASSETS ACQUIRED (EXCLUDING GOODWILL)
Goodwill resulting from the acquisition
PROVISIONAL FAIR VALUE OF NET ASSETS ACQUIRED
$’000
174
1,032
1,206
$’000
283
(466)
(142)
(325)
1,531
1,206
The assets and liabilities of CruiseCo acquired by Helloworld Travel are recorded at fair value for accounting
purposes, resulting in goodwill of $1.5 million. The acquisition accounting was provisionally determined at 30 June
2021 and subsequent adjustments may arise within 12 months of the acquisition date, including finalisation of the
fair value of the net assets acquired, the allocation of the purchase price to the separate identifiable intangible
assets and the impact of tax finalisation.
123
The provisional goodwill acquired primarily represents the enlarged product and service offering that Helloworld
Travel can now provide to its customers, future synergy opportunities and the future profitability of the business.
The provisional goodwill has been allocated to the Australia wholesale and inbound cash generating unit and is not
deductible for tax purposes.
(ii) Purchase consideration – cash outflow
Cash paid
Cash and cash equivalents acquired
NET INFLOW OF CASH – INVESTING ACTIVITIES
$’000
(174)
283
109
(iii) Revenue and profit before income tax expense contribution
From the date of the acquisition to 30 June 2021, the revenue and net profit/(loss) before income tax expense
contributed by CruiseCo was immaterial to the Group’s result.
If the date of acquisition had been 1 July 2020, the Group revenue and net profit before income tax expense for the
period ended 30 June 2021 would not have been significantly impacted due to COVID-19.
123
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(iv) Acquisition related costs
Acquisition related costs of less than $0.1 million were incurred in the acquisition and are included in other expenses
in the consolidated statement of profit or loss and other comprehensive income and in operating cash flows in the
consolidated statement of cash flows.
(B) ACQUISITION OF INSPIRE TRAVEL MANAGEMENT (ITM)
(i) Summary of acquisition
On 31 October 2020, Helloworld Travel acquired an additional 60% of Inspire Travel Management (ITM). As a result,
Helloworld Travel now owns 100% of ITM, a travel management business providing services throughout Australia.
Helloworld Travel’s previous investment in ITM was accounted for using the equity method and was remeasured to fair
value immediately prior to the acquisition of the remaining 60.0% ownership interest.
Details of the purchase consideration, net assets acquired and gain on bargain purchase of ITM are as follows:
Purchase price
PURCHASE CONSIDERATION
Helloworld Travel paid the nominal amount of $1 to acquire the remaining 60% of ITM.
The provisional assets and liabilities recognised from the ITM acquisition are as follows:
124
Cash and cash equivalents
Trade and other receivables
Accrued revenue
Deferred tax asset
Trade and other payables
Provisions
NET ASSETS ACQUIRED
Purchase price
PROVISIONAL GAIN ON BARGAIN PURCHASE
$’000
-
-
$’000
66
7
35
162
(29)
(13)
228
-
228
Helloworld Travel had a pre-existing arrangement with ITM that arose due to an existing 40.0% ownership interest.
Under applicable accounting standards, the settlement of pre-existing arrangements is excluded from the business
acquisition. As a result, the purchase consideration paid by Helloworld Travel and net assets acquired from ITM exclude
any amounts relating to the settlement of pre-existing arrangements.
The assets and liabilities of ITM acquired by Helloworld Travel are recorded at fair value for accounting purposes,
resulting in a gain of $0.2 million recognised in the consolidated statement of profit or loss and other comprehensive
income. The acquisition was provisionally determined at 30 June 2021 and subsequent adjustments may arise within
12 months of the acquisition date, including the identification and measurement of separate intangible assets and
impact of tax finalisation.
Helloworld Travel recognised a gain in the consolidated statement of profit or loss and other comprehensive income
relating to the acquisition of ITM. Helloworld Travel's pre-existing arrangements and specific circumstances affecting
the seller that arose due to COVID-19 resulted in a bargain purchase on acquisition of the remaining 60.0% of share
capital. Helloworld Travel reassessed all assets acquired, and liabilities assumed, including the existing 40.0%
investment in ITM, to ensure that they were measured at fair value.
124
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au (ii) Purchase consideration – cash outflow
Cash paid
Cash and cash equivalents acquired from controlled entities
NET INFLOW OF CASH – INVESTING ACTIVITIES
$’000
-
66
66
(iii) Revenue and profit before income tax expense contribution
From the date of the acquisition, 30 November 2020 to 30 June 2021, the revenue and net profit/(loss) before income
tax expense contributed by ITM was immaterial to the Group’s result.
If the date of acquisition had been 1 July 2020, the revenue and net profit/(loss) before income tax expense contributed
by ITM would have been immaterial to the Group’s result.
(iv) Acquisition related costs
Acquisition related costs of less than $0.1 million were incurred in the acquisition and are included in other expenses in the
consolidated statement of profit or loss and other comprehensive income and in operating cash flows in the consolidated
statement of cash flows.
UPDATE ON BUSINESS ACQUISITIONS UNDERTAKEN IN THE PRIOR YEAR 30 JUNE 2020
During the current period, there were no significant updates made to acquisition accounting relating to TravelEdge Group,
Atlas Limited or the Show Group business.
3 6 . B U S I N E S S D I S P O SA L S
(A) PRIOR YEAR DISPOSAL OF U.S WHOLESALE DIVISION
125
In the prior financial year, Helloworld Travel divested its U.S Wholesale division.
During the current year, Helloworld Travel updated the disposal accounting to reflect the payment of the preliminary
settlement adjustment payable, which was paid on 1 December 2020.
The final consideration and resulting profit on disposal is outlined below:
Settlement adjustment payable
Carrying amount of net liabilities sold
LOSS ON DISPOSAL OF NET LIABILITIES SOLD
Foreign currency translation reserve released to profit or loss on disposal
Transaction costs
PROFIT/LOSS ON DISPOSAL OF U.S WHOLESALE DIVISION
Provisional at
30 June 2020
$'000
Adjustments
$'000
Final at
30 June 2021
$'000
(1,860)
1,663
(197)
1,422
(150)
1,075
(112)
-
(112)
-
-
(112)
(1,972)
1,663
(309)
1,422
(150)
963
125
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
3 7 . S H A R E B AS E D PAY M E N T S
(A) OMNIBUS INCENTIVE PLAN
Background
At the Helloworld Travel Annual General Meeting held on 14 November 2019, the Group’s shareholders voted for the
adoption of the Helloworld Travel Limited Omnibus Incentive Plan (the Plan). Under the Plan, the Group can reward and
incentivise employees, directors (including both executive and non-executive directors), contractors and consultants
by offering shares, performance rights or options. Any financial instruments granted under the Plan are held via an
employee share trust (the Trust) established with Perpetual Corporate Trust Limited.
Key attributes and valuation of the FY21 grants
On 18 December 2020, Helloworld Travel granted 905,000 shares under the omnibus incentive plan mechanism. The
shares were issued to a number of staff, none of whom are Directors. All those personnel have been working reduced
days for a sustained period since March 2020. Shares were issued for nil consideration and have a non-market vesting
condition of remaining an employee at Helloworld Travel through to the vesting date of 01 July 2021.
At the vesting date, all employees satisfied the required conditions of the plan will be issued with their allocated
shares at nil consideration. All omnibus incentive plan shares rank equally in all respects with existing shares from the
date of their issue.
The fair value of the shares issued under the plan is based on the number of shares issued at the closing price on
18 December 2020 which was $2.46 per share and is being brought to account over the vesting period. As a result,
the total share based payment expense recognised in the current year in the statement of profit or loss and other
comprehensive income amounts to $2.2 million.
(B) LOAN FUNDED LONG TERM INCENTIVE PLAN (LTIP)
126
Key attributes and valuation
The key attributes of the plan and grants provided since inception are:
FY19 grants
FY18 grants
FY17 grant
Grant date
Vesting date
Number of shares issued
Issue and exercise price
50% vesting
100% vesting
Performance criteria
26 March 2019
1 April 2018
31 December 2020
31 December 2020
150,000
$4.67 per share
$5.50 share price
$6.50 share price
TSR and KPIs
700,000
$4.67 per share
$3.81 per share
$5.50 share price
$5.50 share price
$6.50 share price
$6.50 share price
TSR and KPIs
TSR and KPIs
1 July 2017
1 July 2020
850,000
1 July 2016
1 July 2019
2,600,000
$3.00 per share
$4.50 share price
$5.50 share price
TSR and KPIs
A total of 4,300,000 loan funded LTIP shares have been issued over the three year period since the inception of the
program. During the current year, nil (2020: nil) shares were granted under the LTIP.
A loan is provided to the participant at grant date equal to the share value at the scheme commencement multiplied
by the number of shares issued. The loan is repaid to the company after vesting conditions are met. The loan is non-
recourse and interest free. A holding restriction is placed on the shares until the vesting date has been reached and the
performance criteria have been assessed. Should the shares vest, they will be removed from the holding restriction. If
the shares fail to vest, then the shares will be forfeited and the loan extinguished.
The shares attract dividends as per ordinary paid up shares. The dividends earned are offset against any future loan
payable by the eligible employees under the scheme.
The fair value of the shares granted includes the loan instruments attached to the shares. The fair value was calculated
in accordance with AASB 2: Share based payments. The fair value was determined using a version of the Black Scholes
model incorporating a Monte Carlo simulation analysis to value the market-based performance conditions
126
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au The fair value of the respective grants with key assumptions used in determining its value is outlined as follows:
FY19 grants
FY18 grants
FY17 grant
Grant date
Vesting date
26 March 2019
1 April 2018
31 December 2020
31 December 2020
Fair value of instrument
$0.99
$0.99
1 July 2017
1 July 2020
$0.78
1 July 2016
1 July 2019
$0.77
The fair value incorporates:
Expected price volatility (i)
30% to 40%
30% to 40%
35% to 45%
35% to 45%
Expected dividend yield
Risk free interest rate
3.40%
2.50%
3.40%
2.50%
3.75%
2.41%
2.00%
1.78%
(i) The expected price volatility was based on the historic volatility, adjusted for any expected changes to future
volatility due to publicly available information.
Financial summary
The movement in the number of shares held under the loan funded LTIP is summarised as follows:
Year ended 30 June 2021
Number of shares under holding restriction
Grant
Date
Start of
performance
period
End of
performance
period
Exercise
price ($)
Opening
balance Granted (i)
Lapsed (ii) Vested (iii)
01-Jul-17
01-Jul-17
1-Jul-20
01-Apr-18
01-Apr-18
1-Jan-21
26-Mar-19 01-Apr-18
1-Jan-21
3.81
4.67
4.67
TOTAL
200,000
500,000
150,000
850,000
-
-
-
-
(200,000)
(500,000)
(150,000)
(850,000)
-
-
-
-
Closing
balance
(iv)
Vested and
exercisable
at the end of
the year (v)
-
-
-
-
-
-
-
-
Year ended 30 June 2020
Grant
Date
Start of
performance
period
End of
performance
period
Exercise
price ($)
Opening
balance Granted (i)
Lapsed (ii) Vested (iii)
Closing
balance
(iv)
Vested and
exercisable
at the end of
the year (v)
Number of shares under holding restriction
01-Jul-16
1-Jul-16
01-Jul-17
01-Jul-17
1-Jul-19
1-Jul-20
01-Apr-18
01-Apr-18
1-Jan-21
26-Mar-19 01-Apr-18
1-Jan-21
3.00
3.81
4.67
4.67
TOTAL
2,200,000
200,000
700,000
150,000
3,250,000
-
-
-
-
-
-
-
(200,000)
(2,200,000)
-
200,000
500,000
150,000
(200,000)
(2,200,000)
850,000
-
-
-
-
(i) During the current year, nil (2020: nil) shares were granted under the loan funded LTIP;
(ii) During the current year, 650,000 (2020: 200,000) shares lapsed due to the resignation of certain employees and
200,000 shares (2020: nil) lapsed due to not meeting vesting conditions.
(iii) On 1 July 2019, 2,200,000 loan funded LTIP shares met their vesting conditions as determined by the Board,
based on meeting TSR and individual KPI targets over the three year vesting period. As at 30 June 2021, nil (2020:
850,000) LTIP shares remain with future vesting conditions to be met.
(iv) During the current year, 350,000 loan funded LTIP shares under the grant dates of 1 July 2017 and 1 April
2018 did not met their vesting conditions as determined by the Board, based on meeting TSR and individual KPI
targets over the three year vesting period. In September 2020, 500,000 loan funded LTIP shares lapsed due to staff
departure.
(v) As at 30 June 2021, nil shares (2020: nil) had met vesting conditions, which had not yet been exercised.
127
127
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(C) EXPENSES ARISING FROM SHARE BASED PAYMENT TRANSACTIONS
Total expenses arising from share based payment transactions recognised during the period are as follows:
Share based payment expense/(reversal) under loan funded LTIP
Share based payment expense under franchise loyalty plan
Share based payment expense under omnibus incentive plan
TOTAL SHARE BASED PAYMENTS EXPENSE
CONSOLIDATED
2021
$’000
2020
$’000
(710)
-
2,224
(1,514)
195
7
671
873
The share based payment expenses relating to the loan funded LTIP and franchise loyalty plan were recognised in the
share based payments reserve, which forms part of the reserves in the consolidated statement of financial position.
The share based payment expense relating to the omnibus incentive plan was recognised as an increase in share capital.
3 8 . E V E N T S A F T E R T H E R E P O RT I N G P E R I O D
Lockdowns across Australia and New Zealand may have an impact on the Group’s operations should they continue
indefinitely, the increasing vaccination rates across both countries also has the potential to bring forward unrestricted
international travel ahead of the Group’s current forecast.
With this exception, no matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may
significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in future
financial years.
3 9 . S I G N I F I C A N T AC C O U N T I N G P O L I C I E S
128
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
(A) PRINCIPLES OF CONSOLIDATION
The consolidated financial statements comprise the financial statements of Helloworld Travel Limited and its subsidiaries
(referred to in this financial report as the Group) as at 30 June 2021 and for the year then ended.
(i) Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are deconsolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred
asset. Accounting policies of subsidiaries are consistent with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement
of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated
statement of financial position respectively.
128
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au (ii) Associates
Associates are all entities over which the Group has significant influence but not control or joint control. This is generally
the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for
using the equity method of accounting after initially being recognised at cost.
Under the equity method of accounting, the investments are initially recognised at cost including acquisition related
costs, that are adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the
investee (in Group profit or loss) and the Group’s share of movements in other comprehensive income (OCI) of the
investee (in Group OCI). Dividends received or receivable from associates are recognised as a reduction in the carrying
amount of the investment.
When the Group’s share of losses in an associate equal or exceed its interest in the entity, including any other unsecured
long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments
on behalf of the associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest
in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the
asset transferred. Accounting policies of associates are consistent with the policies adopted by the Group.
The carrying amount of associates is tested for impairment in accordance with the policy described at note 39(l).
(iii) Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with
equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of
the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between
the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a
separate reserve within equity attributable to owners of Helloworld Travel Limited.
When the Group ceases to consolidate or equity account for an investment because of a loss of control or significant
influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount
recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently
accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously
recognised in OCI in respect of that entity are accounted for as if the Group had directly disposed of the related assets
or liabilities. This may mean that amounts previously recognised in OCI are reclassified to profit or loss.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of
the amounts previously recognised in OCI are reclassified to profit or loss where appropriate.
129
(B) BUSINESS COMBINATIONS
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:
• fair values of the assets transferred;
• liabilities incurred to the former owners of the acquired business;
• equity interest issued by the Group;
• fair value of any asset or liability resulting from a contingent consideration arrangement; and
• fair value of any pre-existing equity interest in the subsidiary.
129
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au 130
F I N A N C I A L STAT E M E N T S
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited
exceptions, measured initially at their fair values at the acquisition date. The Group recognises any non-controlling
interest in the acquired entity on an acquisition by acquisition basis either at fair value or at the non-controlling
interest’s proportionate share of the acquired entity’s net identifiable assets.
Acquisition related costs are expensed as incurred, except if related to the issue of debt or equity securities, in which
case are recognised directly in equity.
Goodwill is recognised when there is an excess of, consideration transferred, any amount of any non-controlling interest
in the acquired entity; and the acquisition date fair value of any previous equity interest in the acquired entity over the
fair value of the net identifiable assets acquired. If those amounts are less than the fair value of the net identifiable
assets of the business acquired, the difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to
their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being
the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and
conditions.
Contingent consideration is classified as a financial liability and subsequently remeasured to fair value with changes in
fair value recognised in profit or loss. Unless the adjustment relates to additional information obtained within twelve
months from the date of acquisition, about circumstances that existed at the acquisition date,
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held
equity interest in the acquired entity is remeasured to fair value on the acquisition date. Any gains or losses arising from
such re-measurement are recognised in profit or loss.
(C) FOREIGN CURRENCY TRANSLATION
(i) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the date of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally
recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges or are attributable
to part of the net investment in a foreign operation.
Foreign exchange gains or losses that relate to borrowings are presented in the statement of profit or loss, within
finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis
within other income or other expenses.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss in profit or loss and OCI.
(ii) Investments in foreign operations
The results and financial position of foreign operations that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
• income and expenses for each statement of profit or loss and statement of comprehensive income are translated at the
average exchange rates or the exchange rate at the date of the transaction if considered more appropriate; and
• all resulting exchange differences are recognised in OCI.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities and of
borrowings are recognised in OCI. When a foreign operation is sold or any borrowings forming part of the net investment are
repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the
foreign operation and translated at the closing rate.
130
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au (D) REVENUE RECOGNITION
The principal activities of the Group are those of acting as an agent for tour, travel and accommodation suppliers for which the
Group earns revenue, predominantly in the form of commissions.
Revenue is recognised when the performance obligations under the relevant revenue contracts have been met. The specific
accounting policies for the Group’s key revenue streams are outlined below:
(i) Commissions
Commissions consist of at source commissions and override commissions which are based on achievement of volume based
sales targets with specific airline and leisure partners. The Group acts in the capacity of an agent rather than principal with
the facilitation of tour, travel and accommodation services as the Group’s customer is a travel agent or supplier. As a result,
commission revenue is recognised as the net amount of commission received or receivable by the Group. The revenue policy
for the various types of commissions across the Group is outlined below:
At source commissions - retail and travel management businesses
The Group’s retail and travel management businesses receive at source commission from suppliers for the arrangement
of travel, tours and travel related products. Revenue is recognised at the point of time when tickets, itineraries or travel
documents are issued (ticketed date) as this is when the performance obligation is met to the travel agent or supplier.
At source commissions - Wholesale and Inbound
The Group’s wholesale business work with hotels, transportation providers (air, rail and cruise) and attractions to purchase
individual travel components from them at agreed rates. Those components are packaged into marketable holiday travel
packages and tours for the travel leisure market to local and overseas destinations. The commission revenue recognised
is the margin received between the arranged purchase price of travel products and the retail price of the holiday package,
net of commissions paid to travel agents. Revenue is recognised at the point of time when all aspects of holiday packaged
travel, including booking, ticketing and management amendments have been arranged (departure date), as this is when the
performance obligation has been met to the travel agent or supplier.
The Group’s Inbound business in Australia, New Zealand and Fiji receive at source commission for the arrangement of airline
tickets, tours and travel. Revenue is recognised at the point of time when the traveller’s tour or travel has commenced
(departure date) as this is when the performance obligation has been met to the travel agent or supplier.
Other types of at source commissions
The Group also receives commissions from sales of travel related products such as insurance, foreign currency
purchasing services and incentives from suppliers. These commissions are recognised as revenue at a point of time on
an accrual basis when the performance obligation is met and the amount can be reliably measured.
Override commission revenue
The Group also receives variable consideration in relation to the above performance obligations in the form of volume
based override commissions from airline and leisure partners across the air, land and cruise travel products sold.
Generally, override commissions are only received on departed travel sales (for air and cruise) or on commencement of
hotel stays (for land). On this basis, revenue is recognised on departure date or commencement date as this reflects the
point in time when this variable consideration is highly probable of not being subject to significant reversal.
Each supplier has separate contractual agreements with the Group and the contractual rates, performance tiers and
contract periods vary accordingly. Override commission revenue is calculated and recognised using the applicable
tiered earning rates per the agreements.
(ii) Transaction and service fees
The Group’s travel management businesses charge customers a transaction fee when travel arrangements are booked
through either the Group’s online system or using a travel management consultant. Transaction fees are levied in
accordance with their contractually agreed rates for the type of product booked. Transaction and service fees are
recognised as revenue at the point of time when tickets are issued (ticketed date) as this is when the performance
obligation is met to the consumer for the booking of travel arrangements and the transaction price is fixed. Where
amendments occur after the initial transaction, these are treated separately and additional transaction fees will apply.
131
131
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(iii) Marketing related activities
The Group receives contributions from suppliers to compensate for the costs incurred in relation to the production
of brochures, in relation to marketing campaigns and activities, and for travel conferences organised by the Group.
Revenue is recognised at a point of time when the marketing related activity is undertaken as the performance
obligation to the supplier has been met.
(iv) Other revenue from contracts with customers
Other revenue from contracts with customers consists of franchise fees generated across the rental distribution
network, transport and logistics revenue generated in the corporate business in Australia, the tourist transport
business in Fiji and revenue generated from the operation of call centres to support various COVID-19 contact tracing
programmes. Franchise fees mainly consist of network fees and information technology service fees relating to services
provided to the Group’s retail network members. Network membership fees are recognised over a period of time on a
straight line basis over the life of the contract and information technology service fees are recognised over time when
the services are undertaken. Revenue for transport and logistics services is recognised at a point of time on a gross
basis as the Group is acting as the principal in the delivery of the service and performance obligation to the customer.
132
(v) Other revenue
Other revenue consists primarily of finance income earned from cash and term deposits and sundry income relating
to all other ancillary income. Rental income is recognised over a period of time based on the term of the lease. Finance
income and sundry income are recognised on an accrual basis at a point of time.
(E) CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash at bank and in hand and short term deposits that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value. Interest income is earned on
cash and term deposits and is recognised on an accrual basis in the statement of profit or loss.
Restricted cash includes cash held within legal entities of the Group that have International Air Transport Association
(IATA) requirements as part of providing ticketing travel arrangements.
(F) TRADE RECEIVABLES
Trade receivables relate to contracts with customers and are recognised initially at the transaction price of the amount
of consideration that is unconditional. The Group holds trade receivables with the objective to collect the contractual cash
flows and therefore measures them subsequently at amortised cost using the effective interest rate method, less any
loss allowance. Trade receivables are generally collected within 7 to 30 days from the date of invoice. They are presented
as current assets unless collection is not expected within 12 months from the reporting date. Bad debts are written off as
incurred. Non-current receivables are carried at the present value of future net cash inflows expected to be received.
Collectability of receivables (including accrued revenue) is reviewed on an ongoing basis at an operating business unit
level. Individual debts that are known to be uncollectable are written off when identified. The Group applies the simplified
approach to measuring expected credit losses which, uses a lifetime expected loss allowance for receivables. To measure
the expected credit losses, receivables are grouped based on shared credit risk characteristics and days past due.
132
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au The expected loss rates applied to receivables at 30 June are based on historical loss rates adjusted to reflect current and
forward looking market factors.
The loss allowance is recognised in profit or loss within operating expenses. Subsequent recoveries of amounts previously
written off are recognised within operating expenses in profit or loss.
(G) ACCRUED REVENUE
Accrued revenue relates to amounts owed to the Group at balance sheet date that have not yet been invoiced to the
customer or received as cash from the customer. The Group’s accrued revenue mainly relates to the estimate of conditional
override commission revenue earned during the respective customer contract period but not yet invoiced at balance
date. In addition, accrued revenue includes other unconditional commission revenue earned, but not yet invoiced from the
passage of time.
(H) PREPAYMENTS
Prepayments consist of travel products purchased prior to revenue recognition of the associated travel booking and
prepaid operating expenditure.
(I) PROPERTY, PLANT AND EQUIPMENT
133
Property, plant and equipment is measured at cost less accumulated depreciation and any accumulated impairment losses.
Cost includes any expenditure that is directly attributable to the acquisition of property, plant and equipment. Any gain or
loss on disposal of an item of property, plant and equipment is recognised in profit or loss.
Depreciation is calculated to allocate the cost of items of property, plant and equipment (less their estimated residual
values) using the straight-line method over their estimated useful lives and is recognised in profit or loss. Leasehold
improvements are depreciated over the shorter of the lease term or their useful lives unless it is reasonably certain that
the Group will obtain ownership by the end of the lease term or extend the initial lease term. Land is not depreciated.
The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:
• Land and buildings
• Equipment including motor vehicles
• Leasehold improvements
40 years
2.5 to 10 years
5 to 10 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
(J) INTANGIBLE ASSETS
(i) Goodwill
Goodwill on acquisition of subsidiaries is included in intangible assets and the goodwill measurement policy is outlined
in note 40(b). Goodwill is not amortised but 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 (CGUs) for impairment testing purposes. The allocation is made to those
CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose.
133
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(ii) Other intangible assets
Intangible assets acquired separately or in a business combination are initially measured at cost. The cost of an intangible
asset acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible
assets are carried at cost less any accumulated amortisation and any accumulated impairment losses (where applicable). The
useful lives of intangible assets are assessed to be either finite or indefinite.
The following intangible assets are considered finite life intangible assets. They are amortised using the straight-line method
over the following periods:
• Commercial agreements
• Brand names and trademarks
• Technology assets
Customer bases
5 to 12 years
7 to 20 years
2.5 to 10 years
8 years
Amounts paid for the development of software and website intangible assets are capitalised only when the following
criteria are met:
• the technical feasibility of completing the intangible asset is confirmed, so that it will become available for use or sale;
• management intends on completing the intangible asset for use or sale;
• the business has the ability to use or sell the intangible asset;
• it is established how the intangible asset will generate probable future economic benefits. Among other things,
including being able to demonstrate the existence of a market for the intangible asset or, if it is to be used internally, the
usefulness of the intangible asset to the business; and
• management can reliably measure the expenditure attributable to the intangible asset during its development.
134
Costs capitalised include external direct costs of materials and service, and direct payroll and payroll related costs of
employees’ time spent on the project.
Intangible assets with finite lives are tested for impairment whenever there is an indication that the intangible asset may be
impaired. The amortisation period and the amortisation method for intangible assets with a finite useful life are reviewed at
least at each financial year end.
Retail distribution systems and the AOT agent network asset are considered indefinite life intangible assets. Intangible assets
with indefinite useful lives are not amortised but are tested for impairment annually on an individual basis. The indefinite
life assumption of an intangible asset is reviewed each reporting period to determine whether the indefinite life assessment
continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is accounted for as a
change in an accounting estimate and is applied prospectively.
(K) INVESTMENTS AND OTHER FINANCIAL ASSETS
Financial assets measured at amortised cost and fair value through OCI are initially measured at fair value plus directly
attributable transaction costs. Financial assets measured at fair value through profit or loss are initially measured at fair value.
Investments and other financial assets are classified, at initial recognition, and subsequently into the following
measurement categories, financial assets at amortised cost, fair value through profit or loss or fair value through OCI. The initial
and subsequent classification depends on the Group’s business model for managing the financial assets and the contractual
terms of the cash flows.
• Amortised cost – relates to assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest. Assets are subsequently measured using the effective interest rate method and are
subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
• Fair value through profit or loss – relates to assets that are not held for collection of contractual cash flows nor held to sell at a
future date. As a result, the assets that do not meet the criteria for amortised cost or fair value through OCI are subsequently
measured at fair value. Gains and losses are recognised net in the profit or loss in the period in which they arise.
• Fair value through OCI – relates to assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest, and held to sell at a future date. Assets are subsequently measured at
fair value with movements in the carrying amount recognised in other comprehensive income, except for impairment, interest
income and foreign exchange gains or losses which are recognised in the profit or loss. When a financial asset is derecognised,
the gain or loss is reclassified from equity to the profit or loss.
Purchases and sales of financial assets are recognised on the trade date, that is, the date that the Group commits to purchase
or sell the asset. Financial assets are derecognised when the right to receive cash flows from the financial assets has expired or
been transferred and the Group has transferred substantially all the risks and rewards of ownership.
134
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au
(L) IMPAIRMENT OF NON FINANCIAL ASSETS
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. Other
non financial assets including property, plant and equipment, are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
An impairment loss relating to non financial assets is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal
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 CGUs. Non
financial assets, other than goodwill, that were impaired are reviewed for possible reversal of the impairment at the end of
each reporting period.
(M) TRADE AND OTHER PAYABLES
Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial
year which are unpaid. They include amounts owing to participating retail travel agents under the Group’s incentive
program, reported within selling expenses in the statement of profit or loss and OCI, which is assessed based on the
volume of completed sales made with designated preferred suppliers of the Group.
Trade and other payables are unsecured and are normally settled within 7 to 30 day payment terms from the date of
invoice. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the
reporting period. They are recognised initially at their fair value and subsequently measured at their amortised cost.
(N) LEASES
(i) Nature of leasing activities
The Group has leases relating to commercial office premises, retail properties and motor vehicles. The Group’s leases
are typically for fixed periods between 3 to 10 years and may include extension options. Lease terms are negotiated
on an individual lease basis and contain a wide range of different terms and conditions. None of the Group’s lease
agreements impose any covenants, however leased assets may not be used as security for borrowing purposes.
135
(ii) Measurement and recognition
The Group determines whether a contract contains a lease on the basis of whether the customer has the right to
control the use of an identified asset for a period of time in exchange for consideration. Upon determining the
contract is a lease, the Group applies a single recognition and measurement approach for all leases, except for short
term leases and leases of low value assets. A right of use asset representing the right to use the underlying asset
and a corresponding lease liability representing the obligation to make lease payments are recognised at the date at
which the leased asset is available for use by the Group.
Right of use asset
The right of use asset is measured at cost, comprising the following:
• initial measurement of the lease liability;
• lease payments made in advance of the lease commencement date less any incentives received;
• initial direct costs; and
• estimate of any costs to dismantle and remove the asset at the end of the lease.
The Group depreciates the right of use assets on a straight line basis from the lease commencement date to the
earlier of the end of the useful life of the right of use asset or the end of the lease term. The Group also assesses the
right of use assets for impairment when such indicators exist, refer note 40(l) impairment of non financial assets for
more information.
Subsequent to initial measurement, when the lease liability is remeasured, a corresponding adjustment is made to the
value of the right of use asset, or the profit and loss statement if the right of use asset is already reduced to zero.
135
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
Subsequent to initial measurement, when the lease liability is remeasured, a corresponding adjustment is made to the
value of the right of use asset, or the profit and loss statement if the right of use asset is already reduced to zero.
Lease liability
At the lease commencement date, the Group measures the lease liability at the present value of the lease payments unpaid
at that date, discounted using the interest rate implicit in the lease where that rate is readily available or using the Group’s
incremental borrowing rate for the respective period the lease was entered.
Lease payments included in the measurement of the lease liability consist:
• fixed payments less any incentives receivable;
• variable payments based on an index or rate;
• amounts expected to be payable under a residual value guarantee; and
• payments arising from options reasonably certain to be exercised.
136
On initial recognition of the right of use asset and the lease liability, a corresponding deferred tax asset and deferred
tax liability are recognised to reflect the temporary differences that arise.
Subsequent to initial measurement, the liability is reduced for payments made and increased for interest incurred. The
liability is remeasured to reflect any reassessment or modification, or if there are changes relating to in-substance
fixed payments. In addition, the liability is adjusted when an index or rate change takes effect resulting in an increase in
variable lease payments.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the
lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Helloworld Travel has elected to use the practical expedient available under Amendments to Australian Accounting
Standards – COVID-19-Related Rent Concessions when recognising rent concessions received from certain landlords
as a direct result of the COVID-19 pandemic. Helloworld Travel has elected to not assess whether rental concessions
have resulted in a lease modification. Rent concessions that have not resulted in a lease modification, are considered
variable lease payments. The difference between the remeasurement of the lease liability and the right of use asset is
recognised within occupancy expenses in the consolidated statement of profit or loss and other comprehensive income.
(iii) Incremental borrowing rate
The Group cannot determine the interest rate implicit in the lease, therefore, the Group’s estimated incremental
borrowing rate has been used to measure lease liabilities. The incremental borrowing rate is the rate of interest that
the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain
an asset of a similar value to the right of use asset in a similar economic environment. The Group has estimated the
incremental borrowing rate using market based interest rates adjusted for entity specific conditions.
(iv) Variable lease payments
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred
to produce inventories) in the period in which the event of condition that triggers the payment occurs.
136
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au (v) Short term leases and leases of low value assets
The Group has elected to apply the recognition exemptions to short term leases and leases of low value assets
available under AASB 16. Instead of recognising a right of use asset and lease liability, the payments in relation to
these are recognised as an expense in profit or loss on a straight line basis over the lease term. Short term leases
are leases with a lease term of 12 months or less. Low value assets comprise small items of office and information
technology related equipment.
(vi) Extension and termination options
Extension and termination options are included in a number of the Group’s property leases. These extension options
are at the discretion of Helloworld and provide management with the flexibility to manage the leased-asset portfolio
in line with the Group’s needs. Extension options (or periods after termination options) are only included in the lease
term if the lease is reasonably certain to be extended (or not terminated).
(O) EMPLOYEE BENEFITS
(i) Short term employee benefits
137
Liabilities for wages and salaries, short term bonuses and annual leave (that are expected to be settled wholly 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 annual leave liability is presented as current employee benefit obligations in the balance
sheet. All other short term employee benefit obligations are presented as payables.
(ii) Long term employee benefits
The liability for long service leave is not expected to be settled wholly within 12 months after the end of the period
in which the employees render the related service. It is therefore measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of the reporting period. The fair value
of long term employee benefits is determined using the 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 of high quality corporate bonds that match, as closely as possible, the estimated future cash outflows.
Remeasurement from experience adjustments and changes in assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional
right to defer settlement for at least 12 months after the reporting date, regardless of when the actual settlement is
expected to occur.
(iii) Share based payments
Share based compensation benefits are provided in the form of the omnibus Incentive plan, loan funded share
instruments (long term incentive plan) to employees and a deferred share scheme (franchise loyalty plan) to franchisees.
Information relating to these schemes is set out in note 37: share based payments.
137
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
Long term incentive plan and franchise loyalty plan
The fair value of the share based payments for the loan funded LTIP and the franchise loyalty plan are recognised as an
employee benefits expense or operating cost respectively with a corresponding increase in equity in the share based
payment reserve. The total amount to be expensed is determined by reference to the fair value of the instrument granted
as follows:
• including any market performance conditions such as share price;
• excluding the impact of any service and non-market performance vesting conditions such as employees achieving
certain KPIs; and
• including the impact of any non-vesting conditions.
The total expense is recognised over the vesting period, which is the period over which all the specified vesting conditions
are to be satisfied. At the end of each period, the Group revises its estimates of the number of instruments that are
expected to vest based on the non-market vesting conditions and service conditions. It recognises the impact of the
revision to the original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
138
When the instrument vests, the Company releases the holding restrictions on the appropriate amount of shares for the
employee or franchisee. The proceeds received (if any) net of any directly attributable transactions costs are recognised
directly to equity.
Omnibus incentive plan
The fair value of the share based payments for omnibus incentive plan is recognised as an employee benefits expense with
a corresponding increase in equity in issued capital. The total amount expensed is determined by reference to the fair value
of the instrument granted on the grant date. The instruments issued under the omnibus incentive plan have no conditions
that impact the fair value of the shares.
(iv) Defined contribution plans
The Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual
or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The
contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as
an asset to the extent that a cash refund or reduction in future payments is available.
(v) Termination benefits
Termination benefits are expensed at the earlier of when the Group is demonstrably committed to either terminating
the employment of current employees according to a detailed formal plan without possibility of withdrawal or to
providing termination benefits from an offer made to encourage voluntary redundancy. Benefits falling due more than
12 months after the end of the reporting period are discounted to present value.
138
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au (P) PROVISIONS
Provisions are recognised when the Group has a present legal or constructive obligation arising from past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be 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 end of the reporting period. The discount rate used to determine the present value is a pre-tax
rate that 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 finance expense.
Dividends are only recognised in the financial year in which the dividend is paid as the decision to pay a dividend may be
revoked by the Board at any time before payment.
(Q) DEFERRED REVENUE
The Group receives monies from customers prior to the travel booking finalisation, which are recorded in the statement of
financial position as deferred revenue.
At the end of each financial year, the amount recorded on the balance sheet consists of monies that Helloworld Travel
will pay its suppliers for the purchase of travel products in the next financial year and the revenue commission that will
be earned in the future. The revenue commission from these transactions will be released to the profit or loss in the next
financial year in accordance with the revenue recognition policy outlined in note 39 (d).
139
(R) BORROWINGS
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognised in profit or loss over the period of the borrowings using the effective interest method.
Establishment fees of the loan facilities are recognised as borrowing costs of the loan as the facility has been drawn down.
The establishment fees are netted against the borrowings and amortised on a straight line basis over the term of the
facility. As a result, finance expense in the consolidated statement of profit or loss includes interest expense recorded on
an accrual basis and the unwinding of the deferred borrowing costs.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
the consolidated statement of profit or loss.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period.
139
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(S) DERIVATIVES AND HEDGING ACTIVITIES
The Group holds derivative financial instruments to hedge its foreign currency exposures.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value
depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
The Group designates certain derivatives as a hedge of its foreign currency exposures.
The Group documents at the inception of the hedging transaction the economic relationship between the hedging
instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge
transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the
derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in
cash flows of hedged items.
Cash flow hedges
The effective portion of changes in the fair value of derivatives, that are designated and qualify as cash flow hedges are
recognised in OCI and accumulated in reserves in equity. The gain or loss relating to the ineffective portion is recognised
immediately in the consolidated statement of profit or loss.
Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss.
When the hedged item is a non-financial asset, the amount recognised in OCI is transferred to the carrying amount of the
asset when the asset is recognised. When a hedging instrument expires or is sold or terminated, or when a hedge no longer
meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is
recognised when the forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is no longer
expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to profit or loss.
140
(T) INCOME TAX
Income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the tax laws enacted or substantively enacted at the end of the reporting
period in the countries where the company’s subsidiaries and associates operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities
are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it
arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of
the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the
related deferred tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between
the carrying amount and tax bases of investments in foreign operations where the company is able to control the timing of the
reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities
are offset when 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.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in OCI or
directly in equity. In this case, the tax is also recognised in OCI or directly in equity, respectively.
140
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au (i) Tax consolidation legislation
Helloworld Travel Limited and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation. The head entity, Helloworld Travel Limited, and its 100% wholly-owned subsidiaries in the Australian income
tax consolidated group account for their own current and deferred tax amounts. These tax amounts are measured as if
each entity in the Australian income tax consolidated group continues to be a standalone taxpayer.
In addition to its own current and deferred tax amounts, Helloworld Travel Limited also recognises the current tax liabilities
(or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled
entities in the Australian income tax consolidated group where applicable.
(ii) Nature of tax funding arrangements and tax sharing agreements
Helloworld Travel Limited, in conjunction with the other 100% wholly owned subsidiary members of the Australian income
tax consolidated group, has entered into a tax funding arrangement which sets out the funding obligations of members of the
Australian income tax consolidated group in respect of the Group’s tax liability. The tax funding arrangements require payments
to/from the head entity equal to the current tax liability/(asset) assumed by the head entity and any deferred tax asset relating
to tax loss be assumed by the head entity, resulting in the head entity recognising an intercompany receivable/(payable) equal in
amount to the tax liability/(asset) assumed. The intercompany receivable/(payable) is at call.
The amounts receivable/payable under the tax funding arrangement are due upon receipt of the funding advice from the head
tax entity, which is issued as soon as practicable after the end of each financial year. The head tax entity may also require
payment of interim funding amounts to assist with its obligations to pay tax instalments. Assets or liabilities arising from the
tax funding agreement with Helloworld Travel are recognised as a current amount receivable or payable to Helloworld Travel. Any
difference in the amounts assumed and the amount receivable or payable to Helloworld Travel, are shown as a contribution to, (or
distribution from) the head tax entity Helloworld Travel in the results of the individual legal entities.
Contributions to fund the current tax liabilities are payable as per the tax funding arrangements and reflect the timing of the
head entity’s obligation to make payments for tax liabilities to the relevant tax authorities.
141
The head entity, in conjunction with the other members of the Australian income tax consolidated group, has also entered into
a tax sharing arrangement which provides for the determination of the allocation of income tax liabilities between the entities
should the head entity default on its tax payment obligations. No amounts have been recognised in the financial statements in
respect of this agreement, as payment of any amounts by subsidiary members under the tax sharing agreement is considered
remote.
(iii) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except where the GST incurred on a purchase of
goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of
acquisition of the asset or as part of the expense item as applicable.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables
in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as operating
cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable, or payable to, the
taxation authority.
(U) ISSUED CAPITAL
Ordinary shares are classified as issued capital within equity. Incremental costs directly attributable to the issue of new
shares or options are shown in issued capital as a deduction, net of tax (unrecoverable GST), from the proceeds.
141
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au F I N A N C I A L STAT E M E N T S
(V) EARNINGS PER SHARE (EPS)
Basic EPS amounts are calculated by dividing net profit/loss for the year attributable to ordinary equity holders of the
parent entity by the weighted average number of ordinary shares outstanding during the year.
Diluted EPS adjusts the weighted average number of additional ordinary shares that would have been outstanding
assuming the conversion of all dilutive potential ordinary shares.
(W) PARENT ENTITY FINANCIAL INFORMATION
The financial information for the legal parent entity, Helloworld Travel Limited is disclosed in note 34: parent entity
information and has been prepared on the same basis as described in the Group policies, except as set out below.
• investment in subsidiaries and associates are accounted for at cost; and
• where Helloworld Travel Limited has provided financial guarantees in relation to loans and payables of subsidiaries
for no compensation, the fair values of these guarantees are accounted for as contributions and recognised as part
of the cost of investment.
142
142
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au DIRECTORS’ DECLARATION
I N T H E D I R E C TO R S ’ O P I N I O N :
(a)
The consolidated financial statements and notes that are set out on pages 64 to 142 are in accordance
with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance
for the year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting
Interpretations), other mandatory professional reporting requirements and the Corporations
Regulations 2001; 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; and
(c)
At the date of this declaration there are reasonable grounds to believe that the Company and the
Group entities identified in note 32 will be able to meet any obligations or liabilities to which they
are or may become subject to by virtue of the deed of cross guarantee described in note 34 between
the Company and those Group entities pursuant to ASIC Corporations (Wholly-owned Companies)
Instrument 2016/785.
143
Note 1 confirms that the consolidated financial statements also comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer
required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Garry Hounsell
Chairman, Helloworld Travel Limited
Melbourne, 6 September 2021
143
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au
I N D E P E N D E N T A U D I TO R ' S R E P O RT
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
144
Independent auditor’s report to the members of Helloworld Travel Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Helloworld Travel Limited (the Company) and its subsidiaries (collectively
the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, notes to the financial statements, including a summary of
significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2021 and of its
consolidated financial performance for the year ended on that date; and
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our
report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial report of the current year. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters.
For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report
section of our report, including in relation to these matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the financial report.
The results of our audit procedures, including the procedures performed to address the matters below, provide
the basis for our audit opinion on the accompanying financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
144
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au
Liquidity risk and going concern basis of accounting
Why significant
How our audit addressed the key audit matter
The COVID-19 pandemic continues to impact the
operations and financial performance of the Group
and there is ongoing uncertainty as to when activity
within the travel and tourism sectors will return to
levels achieved before the onset of the outbreak.
As described in Note 1 of the Financial Report, the
Financial Statements of the Group have been
prepared on a going concern basis, which assumes
that the Group will continue to meet its commitments,
realise its assets and settle its liabilities in the
ordinary course of business. Note 1 (c) outlines the
key considerations used when assessing the Group’s
ability to continue as a going concern. This
assessment includes available cash and borrowing
facilities, borrowing terms including covenants and
forecast cashflows for the next 12 months.
Note 19 outlines the drawn and available debt
facilities as at 30 June 2021 and the key terms
associated with these facilities.
Assessing the appropriateness of the going concern
basis of preparation for the Financial Statements was
a key audit matter due to the level of judgement
required in assessing the Group’s forecast cashflows
(for a period of at least 12 months from the date of
signing the financial report) and the importance of
this assessment to the presentation of the Financial
Statements as a whole.
► We checked that the period covered by the Group’s
going concern assessment was for at least 12
months from the date of signing the financial
report and that all relevant information based on
our knowledge of the Group was included in the
assessment undertaken.
► We read the terms of the Group’s debt financing
arrangements, including covenant waivers as
described in Note 1 (c) and checked that forecasts
used to support compliance within the next twelve
months had been prepared in accordance with the
requirements of these arrangements.
► We assessed the forecast cashflow assumptions
used by management to test compliance with
future covenants. This assessment included
consideration of available external industry
information, historical results and cost control and
productivity initiatives undertaken by the Group.
► We assessed the sensitivity of management’s
forecast cashflows to a range of possible scenarios
resulting from the ongoing uncertainty caused by
the COVID-19 pandemic.
► We compared significant inputs and assumptions
used in cashflow forecasts with those utilised in
the Group’s impairment analysis.
► We tested compliance with debt financing
covenants which were in place throughout the
year ended 30 June 2021.
► We enquired of management and the Board of
Directors as to their knowledge of events or
conditions which may cast significant doubt on the
Group’s ability to continue as a going concern.
► We evaluated the adequacy of the Group’s going
concern disclosures included in Note 1 of the
financial report.
145
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
145
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au
I N D E P E N D E N T A U D I TO R ' S R E P O RT
Impairment Assessment of non-current assets (including equity accounted investments)
Why significant
How our audit addressed the key audit matter
As described above, the COVID-19 pandemic
continues to impact the operations and financial
performance of the Group and there is ongoing
uncertainty as to when activity within the travel and
tourism sectors will return to levels achieved before
the onset of the outbreak.
Note 15 discloses information on goodwill and other
intangible assets recognised by the Group as at 30
June 2021. Note 12 discloses information on the
Group’s investments accounted for using the equity
method of accounting.
► We assessed the Group’s determination of the
cash generating units (CGUs) used for their
impairment assessment based on the
requirements of Australian Accounting
Standards.
► We developed an understanding of the process
undertaken by the Group in preparing discounted
cash flow models used to estimate the
recoverable value of CGUs, including how key
assumptions (described in Note 15) were derived.
► We assessed the Group’s future cash flow
forecasts used to estimate recoverable value,
which included:
The impairment assessment of the Group’s cash
generating units (CGUs) and material equity accounted
investments was a key audit matter due to the value of
these assets as a proportion of total assets and the
extent of estimation uncertainty involved in the
assessment, particularly in relation to the impacts of
the COVID-19 pandemic on the forecast future
cashflows.
146
▪ Assessment of the mechanical accuracy
of the cash flow models.
▪ Assessment as to whether the allocation
of assets (including goodwill) to CGUs was
appropriate based on our knowledge of
the Group’s operations.
▪ Assessment of the basis of allocating
corporate costs and overheads to CGUs.
▪
▪
Evaluation of the Group’s forecast
recovery path (considering the potential
impacts of government and other
measures to address the COVID-19
pandemic) and expected financial
performance to FY26 using external
industry forecasts and internal historical
data.
Involvement of our valuation specialists
to evaluate the key assumptions applied
within the impairment models including
terminal growth rates, discount rates,
Total Transaction Value (TTV), margin,
capital expenditure forecasts and working
capital requirements.
▪ Assessment of the sensitivity of forecasts
to movements in key assumptions to
ascertain the extent of change in those
assumptions that would either individually
or collectively result in an impairment
charge at an individual CGU level (or
collection of CGUs where appropriate).
► We performed market capitalisation and earnings
multiples cross checks in comparison with other
comparable businesses to corroborate the
impairment testing model outcomes.
► We evaluated the adequacy of the disclosures
included within Note 15.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
146
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au
Revenue recognition, including deferred revenue and accrued revenue
Why significant
How our audit addressed the key audit matter
The Group earns revenue from the provision of travel
and travel related services as outlined in Note 2.
Significant judgement is required in the recognition of
commissions and transaction and service fees which
required:
► Assessment of the timing and satisfaction of
performance obligations to customers.
► Recognition and measurement of accrued revenue for
services provided but not yet invoiced.
► Recognition, measurement and classification of
deferred revenue where monies have been received
but services not yet rendered.
► Assessing the likelihood of future significant revenue
reversals and therefore the need for any revenue
deferral (particularly in response to the ongoing
impacts of the COVID-19 pandemic).
The accuracy of amounts recorded as revenue was a key
audit matter due to the number of systems used by the
Group in recording and processing transactions, the
differing nature of performance obligations for products
and services offered to customers and the ongoing
impact of the COVID-19 pandemic on the Group’s
revenue.
► We assessed the Group’s accounting policies for
each material revenue stream, as set out in Note 39
(d), against the requirements of Australian
Accounting Standards.
► We obtained an understanding of the processes
implemented by the Group to record and process
revenue transactions, including where appropriate,
evaluation of the design and operating effectiveness
of key controls.
► For a sample of revenue transactions recorded
during the year, we obtained supporting evidence
such as customer and supplier contracts, travel
documents, supplier statements and evidence of
customer payment and supplier payment. Based on
this information we evaluated whether revenue or
accrued revenue had been recognised in
accordance with the Group’s stated accounting
policies.
► For a sample of deferred revenue balances, we
evaluated the accuracy and appropriateness of
the classification of amounts recognised where
obligations to customers had not been met (such
as where travel had not yet availed) or there was
a significant chance of a future reversal. We
evaluated the adequacy of disclosures set out in
Note 2.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the information
included in the Company’s 2021 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 accordingly we do not express any
form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance
opinion.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of 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
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
147
147
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au
I N D E P E N D E N T A U D I TO R ' S R E P O RT
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment 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.
148
► 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 Group’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 Group’s ability to continue as a going 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 Group 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 Group to express an opinion on the 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.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
148
Helloworld Travel Ltd Annual Report 2021Helloworld Travel Limited Annual Report 2021helloworldlimited.com.au
From the matters communicated to the directors, we determine those matters that were of most significance in
the audit of the financial report of the current year 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 audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Helloworld Travel Limited for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
149
Ernst & Young
Brett Croft
Partner
Melbourne
6 September 2021
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
149
helloworldlimited.com.auHelloworld Travel Limited Annual Report 2021helloworldlimited.com.au
ASX ADDITIONAL INFORMATION
Additional information required by ASX and not shown elsewhere in this report is as follows. The information is current
as at 30 July 2021.
(A) DISTRIBUTION OF EQUITY SECURITIES
SHARE RANGE
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
TOTAL
Number
of holders
3,717
3,105
741
680
62
8,305
Number
of shares
1,898,926
7,834,742
5,643,848
17,365,822
122,284,507
155,027,845
%
1.22
5.05
3.64
11.20
78.89
100.00
All issued ordinary shares carry one vote per share and carry the right to dividends. The number of holders holding
a less than marketable parcel of ordinary shares based on the market price as at 30 July 2021 was 1,194 holders
holding 223,591 shares.
(B) TWENTY LARGEST HOLDERS OF QUOTED EQUITY SECURITIES
The names of the 20 largest registered holders of quoted shares are:
150
ORDINARY SHAREHOLDERS
SINTACK PTY LTD
THE BURNES GROUP PTY LTD
Q H TOURS Limited
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
ANDREW JAMES BURNES
CINZIA BURNES
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
NATIONAL NOMINEES LIMITED
CITICORP NOMINEES PTY LIMITED
JOHN ARMOUR
LONGBUSH NOMINEES PTY Limited
BELDISHA PTY Limited
SHAUN REID
BNP PARISBAS NOMINEES PTY Limited
ANDREW JONES & KAREN JONES
HIGHLIFE COMPANY (AUST) PTY Limited
CROWNACE PTY Limited
TREVOR E JONES & SONIA L JONES
GHASSAN BEYDOUN
SUIQING BAO
Number
of shares
20,630,306
20,348,287
19,223,454
16,664,613
10,495,531
10,138,014
4,218,580
3,705,000
3,235,475
2,000,000
1,222,121
562,500
560,630
500,000
500,000
396,731
390,000
384,528
353,500
305,500
%
13.31
13.13
12.40
10.75
6.77
6.54
2.72
2.39
2.09
1.29
0.79
0.36
0.36
0.32
0.32
0.26
0.25
0.25
0.23
0.20
(C) SUBSTANTIAL SHAREHOLDERS
The number of shares held by substantial shareholders and their associates are set out below:
115,834,770
74.73
SUBSTANTIAL SHAREHOLDER
THE BURNES GROUP PTY LTD AND ASSOCIATES
SINTACK PTY Ltd
Q H TOURS Limited
FIL LIMITED
Helloworld Travel Limited Annual Report 2021
150
Number
of shares
42,203,953
20,630,306
19,223,454
14,475,534
%
27.22
13.31
12.40
9.34
Helloworld Travel Ltd Annual Report 2021 151
151
helloworldlimited.com.au ABN: 60 091 214 998 ASX CODE: HLO