Locality Planning Energy Holdings Limited
Annual
Report
2021
Smarter, Friendlier, Better electricity provider
1
Locality Planning Energy Holdings Limited | Annual Report 2021 Contents
Performance Highlights
About LPE
Corporate Directory
Chairman’s Letter
Message from the Managing Director and CEO
Operating and Financial Review
Directors’ Report
Directors’ Meetings
Remuneration Report - Audited
Financial Statements
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
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3
7
8
10
12
14
16
17
21
26
47
48
55
LPE is the smarter, friendlier, better electricity
provider. We supply innovative electricity solutions
and our Queensland-based customer care team is
always here to help.
Smarter, Friendlier, Better electricity provider
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Locality Planning Energy Holdings Limited | Annual Report 2021 LPE Performance Highlights
Key Operating Metrics
6,245
4,963
35,005
26,253
1,390
20,165
Strong Customer
Growth
SME Customers
Residential Customers
151
15,120
117
9,050
0
3,269
FY16
FY17
FY18
FY19
FY20
FY21
$55M
$43M
Track Record of
Growth
FY2021 Revenue
Financial Year revenues
comparisons
$10M
$2M
$28M
$21M
FY16
FY17
FY18
FY19
FY20
FY21
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Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited | Annual Report 2021 What We Do
Locality Planning Energy (ASX: LPE) became an
authorised electricity retailer in 2014 and listed on
the ASX in January 2016.
LPE is a fast-growing electricity provider challenging
the way customers receive their electricity; going
beyond being just a traditional supplier, we are leaders
in innovation supporting strata communities to think of
tomorrow.
With first to market technology, LPE has delivered shared
solar for apartment living and carbon neutral centralised
hot water systems, creating shareholder value through
long term supply agreements that provide strong
recurring revenue.
LPE services Queensland and New South Wales, selling
electricity, hot water, solar and battery systems to homes,
business and strata communities.
Locality Planning Energy Holdings Limited | Annual Report 2021
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Locality Planning Energy Holdings Limited | Annual Report 2021 Our Products
Embedded
Networks
LPE is recognised as one of the
largest residential embedded network
operators in South East Queensland.
Embedded networks enable
communities to reduce energy costs
via connecting multiple premises to
the National Electricity Market with a
single meter, saving residents money
on costly network charges.
“Hartley’s have been enjoying a
close working relationship with LPE
for more than 5 years since their
early days of inception. LPE are the
electricity and hot water providers to
many of our existing portfolio and we
have always found them to be focused
on delivering the best outcomes
for our communities. The team are
professional, readily available for
assistance or to provide solutions as
needed. We have found them to be
the experts within the energy industry
when it comes to managing electricity
within the strata communities.”
Simon Barnard, Hartley’s Body
Corporate Management
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Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited | Annual Report 2021 Retail
Electricity
We supply thousands of residential
and business customers with their
day-to-day electricity needs. With a
100% Queensland based customer
care centre, we pride ourselves on
exceptional friendly service. We
offer easy to understand pricing and
educational tips that aim to help our
customers save every dollar.
“More people need to know about
LPE. So great in these times to
be able to be support a true local
company. Even better to be so
pleasantly surprised by the first
significant decreased electricity
bill and every bill since. Very
simple and hassle-free changeover
process.”
Paul Paskins
Locality Planning Energy Holdings Limited | Annual Report 2021
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Locality Planning Energy Holdings Limited | Annual Report 2021 Solar and
Shared Solar
LPE work with homes, businesses,
and strata communities to provide
the perfect solar solution for
any situation.
We are leading the way on
sustainability in strata energy
solutions, through delivering
innovative shared solar electricity
infrastructure to residential
customers in apartment living.
Our shared solar product enables
residents to benefit from onsite
solar generation and batteries. LPE
installs and owns the infrastructure,
and enters a long-term supply
agreement with the community
whereby body corporates and their
underlying residents benefit from
the installation and maintenance of
the asset at zero upfront cost.
“With LPE. it was a win-win
situation because there were
no capital costs involved for the
owners. And everybody is now
going to get a reduction on their
power bill. It’s just a no brainer -
going green, and we’re helping the
environment.”
Christine Pullin,
Noosa Keys Onsite Manager
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Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited | Annual Report 2021 Corporate
Directory
Non-Executive Chairman
Mr Justin Pettett
Non-Executive Director
Mr Barnaby Egerton-Warburton
Executive Directors
Mr Damien Glanville
Ms Melissa Farrell
Company Secretary
Ms Elissa Hansen
Principal & Registered Office
Level 8
8 Market Lane
Maroochydore QLD 4558
Phone: 1800 040 168
Auditors
Bentleys
Level 9, 123 Albert Street
Brisbane QLD 4000
Phone +61 7 3222 9777
Lawyers
Gadens
Level 11, 111 Eagle Street
Brisbane QLD 4000
Phone +61 7 3231 1692
Share Registrar
Link Market Services Limited
10 Eagle Street
Brisbane QLD 4000
Phone: + 61 1300 554 474
Stock Exchange Listing
Australian Securities Exchange
Code: LPE
Locality Planning Energy Holdings Limited | Annual Report 2021
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Locality Planning Energy Holdings Limited | Annual Report 2021 Chairman’s
Letter
Dear fellow Shareholders,
It is with immense pride that I present to you LPE’s Annual Report for the fiscal year ended 30
June 2021 (FY21).
FY21 undoubtedly marks a milestone year for the Company. Since listing on the ASX in January
2016, LPE has achieved consistent rates of rapid growth. At the same time, organisational
capability has scaled quickly to uphold LPE’s steadfast commitment to our loyal customers and
corporate values. At LPE, putting customer needs at the centre of everything we do is what drives
and motivates our team. Delivering high levels of service while saving customers money on their
utility bills is the backbone of our competitive advantage, and the new customer growth rates we
have achieved during the year reflect the fact that this competitive edge is stronger than ever.
Following a transformational year in FY20 where the company undertook a strategic reset in
preparation for the next phase of accelerated market share gains, the business has both evolved
and matured in FY21. To observe first-hand the realisation of this step-change in the growth
journey of LPE has been both satisfying and immensely rewarding. The entire team have worked
diligently to support both new and existing customers in equal measure. We have continued
to invest in scalable internal systems while diligently advancing efficiency and productivity
measures to carefully manage and contain costs. As a result, significant operating leverage
began to emerge during the year, as gross profit substantially outpaced growth in corporate
overheads. It is with this in mind that the Board believes the next phase of growth for LPE will be
very different to the last, supported by funding flexibility and an array of strategic options which
have the potential to bolster and accelerate our 5-year strategic growth plan.
Looking ahead to FY22, the Board anticipates another year of consistent growth and investment
to support and plan for longer-term expansion. Continued investments in core operational
systems such as billing software and other flexible and scalable technology will be prioritised, the
benefits of which will be evident over time. Our financial results will continue to improve; however
the Board foresees an immense market opportunity for growth and shareholder value creation
over the medium and long-term, and as major shareholders ourselves, we believe the optimal
course of action is to unashamedly pursue growth which is currently generating very strong
incremental returns.
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Locality Planning Energy Holdings Limited | Annual Report 2021
Ms Melissa Farrell, Executive Director & Chief Financial Officer
Mr Justin Pettett, Non-Executive Director, Co-founder & Chairman
Mr Damien Glanville, Director, Co-founder & Chief Executive Officer
At LPE we are proudly local. 100% of our employees are located in Australia, and the vast
majority of them work in our expanded corporate office in the new Maroochydore Central
Business District. The Sunshine Coast is one of Australia’s best performing regional economies
and LPE remains deeply committed to providing a vibrant and dynamic workplace to support
personal and professional growth for our passionate local staff. It is this commitment that has
built a corporate culture which exhibited immense tenacity and grit to overcome the numerous
operational challenges presented by the onset of COVID. It is this commitment which underpins
our superior customer service offering. It is also this commitment that paves the way for an
extended future runway of growth for LPE as Australian’s increasingly appreciate and understand
that when they support local businesses, they help create jobs in local communities.
In closing, LPE’s achievements in FY21 have been outstanding and I would like to personally
thank every member of our team for their dedication and commitment to continued growth and
success of the organisation during the year. Our business model is intrinsically durable, yet our
vision for the future potential of our company indicates that we are only just getting started. Our
positive momentum sets the business in a strong position for the year ahead, and I look forward
to continued delivery as we accelerate forwards.
Justin Pettett
Chairman
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Locality Planning Energy Holdings Limited | Annual Report 2021 Message from the
Managing Director
& CEO
Dear Shareholders,
As Australia continues to grapple with prolonged disruption brought about by COVID-19 more than 18 months
after we first learned what it meant to be in “lockdown”, FY21 will go down as another year of tackling intense
uncertainty head-on. At LPE we have continued to grow, learn and evolve, while doing our utmost to remain
nimble and promptly adapt to challenges as they have arisen. LPE’s overarching focus through this period as
an essential service provider, has been to ensure our customers and local communities felt supported. Our
service team took great pride in the many thousands of customer interactions over the year, knowing that
many were working from home for the first time and wrestling with their own changing circumstances. For
people isolated during this time, we firmly understood that a friendly local voice providing capable advice and
assistance was just as important as the supply of essential and affordable energy.
The Company successfully built on our track record of strong year-on-year growth in FY21, adding a further
10,000 customers to the prior year’s total of just over 31,000. Revenue increased by 27% to $55 million in a
particularly subdued wholesale energy market. Against the backdrop of this rapid business expansion, LPE
maintained a disciplined focus on expenditure resulting in only a modest increase in operating expenses of
$0.8 million. This is an outstanding achievement which underscores a vital element of our success this year:
focused delivery of the things we can control.
I am particularly proud of the relentless effort exerted by our dedicated sales professionals, and the
unwavering commitment they have displayed to delivery of our long-term corporate growth strategy. The
confidence and determination they have shown in articulating LPE’s value proposition at every turn has been
resolute, in what can be a thankless and sometimes confronting position.
During the year, the sales team expanded to launch our own internal phone sales capability. We also ventured
out of Southeast Queensland into regional Queensland to provide those customers with a competitive
service-focused alternative to the state-run electricity provider. This has been extremely successful as our
regionally based Queensland field sales team set about providing the old-fashioned service and knowledge
that has been evidently lacking, to win over thousands of new regional customers.
The success of any sales team is only made possible by the dedication, support and hard work of the broader
team that sits behind the scenes to keep the organisation running smoothly. From the many seasonal
deadlines handled capably by the finance team, to the skilled precision of the trading desk, and the critical
customer care team who continually go above and beyond to make every service experience a memorable
one, everyone at LPE has contributed to the growth and success that has been delivered this year. I’d like to
take this opportunity to thank the entire team at LPE for what has been another fantastic year.
Challenges
Business challenges provide us all with the opportunity to grow. Without fearlessly making mistakes or
diligently uncovering problems we often become complacent and stop asking “why?”. I believe a clear signal
of the success of our current leadership team is evidenced in our ability to identify and address challenges big
or small. This demonstrates the fundamental drive within our organisation from the top down, to constantly
improve who we are, as well as optimise and finesse the service that we provide.
With COVID-19 still affecting our everyday lives, a significant challenge has been attracting new team
members as we have found fewer people looking to transition into new employment opportunities. In
uncertain times people seek stability above all else, which has manifested in a subdued willingness to
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Locality Planning Energy Holdings Limited | Annual Report 2021 embrace new opportunities and change employers. We believe this will continue to create headwinds for
rapidly growing businesses, including LPE, well into the next financial year. However, we are also continuing to
work hard to tailor recruitment strategies in order to emphasise our position as an employer of choice. At LPE,
talented and dedicated staff are rewarded with an exciting and fast paced career pathway, within a Company
that truly believes in its people and embraces a future built on sustainable energy.
Continuing from the previous year’s success, we are relentlessly looking for further efficiency and cost
reduction opportunities, while maintaining our very high standard of customer service. During the year
we began to outgrow our legacy billing systems and commenced investigations for an upgraded solution
to facilitate growth to our medium-term target of 100,000 customers and beyond. We expect the ongoing
implementation of new and highly scalable internal systems across critical business functions will underpin
significant future productivity and cost reduction opportunities, as well as enhance service standards and
complement our internal culture of continuous improvement.
The wholesale energy market in the first three quarters of FY21 was subdued due to the combination of
changing usage patterns resulting from COVID-19 behavioural changes, the impact of renewable energy being
exported to the grid and the La Niña weather pattern bringing a milder summer and a lack of days above 35˚C.
The combination of these factors led to a suppressed wholesale energy market over this period. However,
this suppression was flipped on its head in May 2021 when a significant explosion at the Callide Power Plant,
combined with several baseload generation units undergoing planned and unplanned maintenance, resulting
in generation shortages relative to market demand. This produced extreme volatility in the wholesale energy
market during the June quarter, with the average wholesale energy price settling three times above that of the
March quarter, which is traditionally the highest priced period of the year.
Creating sustainable communities of the future
During the year, LPE entered into a two-year exclusivity agreement with Allume Energy to roll-out Solshare
in QLD and NSW markets. Our shared solar infrastructure solution is unique in Australia, and well suited for
apartment living, retail strip shops and commercial buildings, giving us first mover advantage in the push for
the adoption of renewable energy in strata complexes. Entering into the exclusivity agreement with Allume
aligns with the Company’s goal of being recognised as the leading electricity provider to strata communities,
embracing innovation as we drive the business towards being a leading enabler of creating sustainable
communities of the future.
The coming year ahead
In FY22 our customers will benefit from enhanced service technology, underpinned by a brand new customer
website portal coming early in Q3. This will be supplemented by a new look bill, as well as a brand refresh, as
we continue to optimise and invest in tools to enhance customer experience. The deployment of our shared
solar product is further improving the Company’s position as a leading electricity provider and innovation
leader to strata communities. The growth of our retail customer base is continuing to gain momentum as our
brand in Southeast Queensland becomes more established. As our customer base grows, we are also focused
on opportunities to cross-sell solar and battery solutions to residential homes and businesses, expanding the
potential gross revenue opportunity per customer.
The Company has invested heavily in our people to create a strong culture supported by the right technology
and systems to create the foundations for growth to 100,000 customers and beyond. As a result, LPE is truly
poised at an inflection point of becoming the industry leader we have long been ambitiously targeting, as well
as delivering our shareholders the returns they have so patiently waited for.
We look forward to another strong year of revenue and customer growth while navigating the continual
challenges our community faces in the COVID-19 era.
Damien Glanville
Managing Director & CEO
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Locality Planning Energy Holdings Limited | Annual Report 2021 Operating and
Financial Review
Operating Results
For the year ended 30 June 2021, LPE achieved strong growth in net new customers, sales and gross profit.
In parallel the business continued to invest in internal capability, including systems and technology, in order
to prepare for and facilitate effective execution of the strategic growth plan. The business realised excellent
cost containment and efficiency gains during the year, despite the backdrop of rapid business expansion.
Highlights for the year ended 30 June 2021 include:
•
+27.2% growth in sales to $55.6 million (2020: $43.7 million), with growth realised across all
customer segments;
• Gain on fair value of derivatives $5.6 million
• Gross margin 16% of sales (excluding unrealised gain on derivatives) (2020: 17%)
•
Excellent productivity gains with employee costs declining by 6.2% to $6.1 million (2020: $6.5 million)
• Strong cost discipline with other expenses up modestly to $5.7 million (2020: $4.6 million)
• Modest underlying EBIT loss of -$3.2 million (2020: -$3.9 million) excluding unrealised gains on
derivatives of $5.6 million (2020: loss $2.3 million)
•
Financing expenses $2.2 million (2020: $1.8 million)
• Maiden net profit of $0.9 million (2020: loss of $7.2 million).
LPE’s financial performance during FY21 was driven by an increase in customers to over 41,000 as at
30-June-2021, representing a growth rate during the year of 32%. Notwithstanding difficult and unforeseen
conditions for sales execution through certain periods of the year related to COVID’s impact on face-to-face
contact, the Company was able to successfully deliver market guidance for new customer acquisition (set at
10,000 new customers).
The rapid growth achieved over the year generated a gross profit of $14.3 million. Electricity margins
(excluding unrealised gains on derivatives) were maintained at 16% (2020: 17%), with only a slight dilution
from the prior period, due to change in product mix (an increase in direct market residential and SME
customers.)
The Company achieved an underlying EBITDA loss for the year of $2.6 million, driven by ongoing investment in
sales capacity, as well as internal systems and technology to prepare the Company to scale to accommodate
future business expansion plans.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)
2020
$ million
2021
$ million
Statutory EBIT
Government Grants
Loss/(gain) on fair value of financial instruments
Underlying EBIT
Depreciation and Amortisation
Underlying EBITDA
2.5
(0.1)
(5.6)
(3.2)
0.6
(2.6)
(6.1)
(0.1)
2.3
(3.9)
(0.6)
(4.6)
Underling EBIT is the primary alternative performance measures used by the Directors for the purpose
of assessing the performance of the Group. Underlying EBIT is a non-statutory (non-IFRS) measure. The
objective of measuring and reporting underlying EBIT is to provide a more meaningful and consistent
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Locality Planning Energy Holdings Limited | Annual Report 2021
representation of financial performance by removing items that distort performance or are non-recurring in
nature. Changes in the fair value of financial instruments are excluded from underlying EBIT to remove the
significant volatility caused by timing mismatches in valuing financial instruments and the related underlying
transactions. The valuation changes are subsequently recognised in underlying earnings when the underlying
transaction are settled.
The Company closed the year with $5.7 million in cash and cash equivalents, of which $1 million was provided
from hedging counterparties, held as credit support for favourable futures contracts. An additional $2
million in credit support has been provided to the Company, from hedging counterparties, in the form of bank
guarantees. This combined $3 million credit support represents security for $3.3 million of financial assets
taken up on the Company’s balance sheet as at 30 June 2021, with respect to the valuation of derivative
contracts used to hedge the underlying cost of electricity for its customers. In addition to its cash balance
of $5.7 million, the Company has $1.6 million of cash in term deposits used as security for bank guarantees
provided to various third parties, including AEMO.
The Company received $3.5 million in COVID-19 electricity relief payments from the Queensland Government
(on behalf of customers) in FY20 that would have otherwise been received during the normal course of
business in FY21. After normalising the timing of these receipts, the Company’s net cash outflows from
operating activities would have been $-2.3 million, a considerable improvement on prior year ($-4.1 million),
even after pre-purchasing $0.6 million of environmental certificates not obliged to surrender until FY22.
Adjusted Operating Cashflow
Receipts from customers
Adjustment for timing of COVID-19 electricity relief receipts*
Receipts from government utility relief scheme
Receipts from government grants
Payments to suppliers and employees
Interest received
Interest paid
Adjusted cash flows from operating activities
Outlook
2021
$ million
2020
$ million
49.9
3.5
0.0
0.1
(54.9)
0.6
(1.6)
(2.3)
36.5
(3.5)
6.7
0.1
(43.3)
0.7
(1.1)
(4.1)
LPE remains a small and nimble player in a vast domestic market for electricity supply. The Board firmly
believes that the long-term growth opportunity that lies ahead of the Company is both material, highly
attractive and value accretive, predicated on LPE’s clear competitive edge in attracting and retaining high-
value customers and building a recurring and durable business with increasing benefits of scale.
The Board considers FY22 to be another year of significant growth and in August 2021, the Company raised
$6 million in equity via a share placement to support this growth. Continued traction in existing customer
verticals bolstered by the addition of the new solar-in-strata product, are the key assumptions underpinning
the plan for the year ahead.
While operating leverage has become increasingly evident in the Company’s financial performance, the Board
anticipates that FY22 will be another year of investment in preparedness for longer-term growth objectives.
The Board expects up to $1.5 million of investment during the year to upgrade internal systems and capability
and as such the Company is anticipating FY22 to incur a modest loss on an underlying basis.
The Company has also commenced the process of refinancing and restructuring its existing debt, to
include the provision of credit support to AEMO and hedging counterparties as well as margin calls for spot
settlements and its OTC and exchange traded futures contracts.
Looking further ahead the Board remains steadfastly focused on ensuring the long-term vision for growth is
realised given the scale of the perceived opportunity. With the Chairman and CEO both maintaining significant
shareholdings, LPE’s leadership are deeply aligned with all shareholders and maintain a strategy of delivering
sensible growth over time as well as strong shareholder value creation.
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Locality Planning Energy Holdings Limited | Annual Report 2021
Directors’ Report
The following persons were directors of the company during
the financial year and up to the date of this report.
Mr Justin Pettett
Non-Executive Director, Co-founder and Chairman
Mr Barnaby Egerton-Warburton
Non-Executive Director
Appointment Date
21 January 2020
Experience
Mr Pettett has over 20 years’ of ASX company
experience having founded and helped built
businesses and taken companies from start-up
to the take-over/acquisition/public-listing stages,
working closely with key stakeholders, investors
and industry partners. He has been involved in the
energy business, namely the oil and gas industry
for over 20 years and is currently an Executive
Director and the Chief Operating Officer of Conrad
Petroleum Ltd, a Singapore based, South-East
Asian oil and natural gas company overseeing
contractual arrangements, partner negotiations
and operational oversight.
He has a solid, proven track record in identifying
and maximising business opportunities,
particularly in the energy sector with strengths
including capital raising, negotiation, investment
analysis and leading teams to deliver successful
results. Mr Pettett is a co-founder of LPE and as
such has operational and strategic insight into the
electricity retailing industry.
Special Responsibilities
Mr Pettett is Chairman of the Nomination
Committee. He is also a member of the
Remuneration Committee and the Audit and Risk
Management Committee.
Interest in Shares and Options
7,509,102 fully paid ordinary shares
Directorships Held in Other Listed Entities
Nil
14
Qualifications
BEcon, GAICD
Appointment Date
13 March 2020
Experience
Mr Egerton-Warburton has over 20 years’
investment banking experience with JPMorgan
(New York, Sydney, Hong Kong), Prudential Bache
(Perth, New York) and Banque National de Paris
(New York).
In accordance with the ASX Corporate Governance
Council’s definition of independence and the
materiality thresholds set, the directors consider
Mr Egerton-Warburton to be independent.
Special Responsibilities
Mr Barnaby Egerton-Warburton is Chairman of the
Remuneration Committee. He is also a member of
the Audit and Risk Committee.
Interest in Shares and Options
60,000
Directorships Held in Other Listed Entities
Chairman of Hawkstone Mining Limited, Non-
Executive Director of Invictus Energy Limited
(ASX:IVZ), Non-Executive Director of iSignthis
Limited (ASX:ISX) and Pantera Minerals Limited
ASX PFE.
Locality Planning Energy Holdings Limited | Annual Report 2021 Mr Damien Glanville
Director, Co-founder and Chief Executive Officer
Ms Melissa Farrell
Executive Director and Chief Financial Officer
Appointment Date
11 December 2015
Experience
Mr Glanville has eighteen years’ experience in senior
management, logistics and Executive Director roles,
the last eight specifically focused in renewable
energy on-site generation and solar PV industry.
Mr Glanville is a co-founder and architect of the
electricity retail model that successfully enabled
LPE to obtain their Australian Energy Regulator
authorisation and is also listed as its Chief Executive
Officer for the management components of the
Australian Energy Regulators authorisation to retail
electricity.
Special Responsibilities
Mr Glanville is a member of the Audit and Risk
Management Committee, the Remuneration
Committee, and the Nomination Committee.
Interest in Shares and Options
8,400,955 fully paid ordinary shares
Directorships Held in Other Listed Entities
Nil
Qualifications
BBus, CPA, MAppFin, MAICD
CFO Appointment Date
31 May 2017
Executive Director Appointment Date
21 January 2020
Experience
Ms Farrell has over 20 years’ experience working in
accounting and finance. She has worked in various
sectors including banking, and mining, both in
Australia and overseas for publicly listed companies
including the Commonwealth Bank and Wesfarmers
Resources.
Special Responsibilities
Ms Farrell is Chairperson of the Audit and Risk
Management Committee. She is also a member of
the Remuneration Committee, and the Nomination
Committee.
Interest in Shares and Options
Nil
Directorships Held in Other Listed Entities
Nil
Ms Elissa Hansen
Company Secretary
Qualifications: BComm, Grad Dip Applied CorpGov, GAICD, FGIA
Appointment Date: 1 June 2021
Experience: Elissa has over 20 years’ experience advising boards and
management on corporate governance, compliance, investor relations and other
corporate related issues. She has worked with boards and management of a
range of ASX listed companies including assisting companies through the IPO
process. Elissa is a Chartered Secretary who brings best practice governance
advice, ensuring compliance with the Listing Rules, Corporations Act and other
relevant legislation.
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Locality Planning Energy Holdings Limited | Annual Report 2021 Directors’ Meetings
Director
Justin Pettett
Barnaby Egerton-Warburton
Damien Glanville
Melissa Farrell
Meetings of
Directors Held*
Meetings of
Directors Attended
11
11
11
11
11
11
11
11
Director
Justin Pettett
Barnaby Egerton-Warburton
Damien Glanville
Melissa Farrell
Audit & Risk
Committee
Meetings Held*
Audit & Risk
Committee
Meetings Attended
2
2
2
2
2
2
2
2
Director
Justin Pettett
Barnaby Egerton-Warburton
Damien Glanville
Melissa Farrell
Remuneration
& Nomination
Committee
Meetings Held*!
Remuneration
& Nomination
Comittee
Meetings Attended
0
0
0
0
0
0
0
0
While no formal Committee meetings were held during the period, the Committee members talked
on an informal basis and passed the required resolutions via written resolution.
* of which eligible to attend
16
Locality Planning Energy Holdings Limited | Annual Report 2021
Remuneration
Report – Audited
Remuneration Practices
The Company has established a Remuneration & Nomination Committee as a Committee of the Board.
With regards to remuneration, the primary purpose of the Committee is to support and advise the Board in
fulfilling its responsibilities to shareholders by:
a) reviewing and approving the executive remuneration policy to enable the Company to attract and
retain executives and Directors who will create value for shareholders;
b) ensuring that the executive remuneration policy demonstrates a clear relationship between senior
executive performance and remuneration;
c) recommending to the Board the remuneration of executive Directors;
d) fairly and responsibly rewarding executives having regard to the performance of the Company, the
performance of the executive and the prevailing remuneration expectations in the market;
e) reviewing the Company’s recruitment, retention and termination policies and procedures for senior
management;
f)
reviewing and approving the remuneration of the Chief Executive Officer and, as appropriate other
senior executives; and
g) reviewing and approving any equity based plans and other incentive schemes.
The Committee shall have the right to seek any information it considers necessary to fulfil its duties, which
includes the right to obtain appropriate external advice at the Company’s expense.
The key management personnel (KMP) of Locality Planning Energy Holdings Limited and the consolidated
entity includes the directors of the Parent Entity.
Remuneration Policy
The Board’s policy for determining the nature and amount of remuneration for KMP of the Consolidated Group
is based on the following:
• The remuneration policy is to be developed by the Remuneration Committee and approved by the
Board after professional advice is sought from independent external consultants.
• All KMP receive a base salary (which is based on factors such as length of service and experience),
and superannuation.
• The Remuneration Committee reviews KMP packages annually by reference to the Consolidated
Group’s performance, executive performance and comparable information from industry sectors.
The Board’s policy is to remunerate non-executive Directors at market rates for time, commitment and
responsibilities. The Remuneration & Nomination Committee determines payments to the non-executive
Directors and reviews their remuneration annually, based on market practice, duties and accountability.
Independent external advice is sought when required.
17
Locality Planning Energy Holdings Limited | Annual Report 2021 2021 Remuneration
Short Term
Employee
Benefits
Short Term
Employee
Benefits
Annual Leave
Payout $
Directors
Justin Pettett
Damien Glanville
Melissa Farrell
Barnaby Egerton-
Warburton
Executives
Paul Wilson
Total
Salary & Fees
$
139,100
352,268
258,992
60,000
208,385
1,018,745
2020 Remuneration
Post
Employment
Benefits
Super-
annuation $
25,000
24,795
5,700
Long Term
Employment
Benefits
Termination
$
$
3,803
2,053
Total...
$......
139,100
381,072
285,840
65,700
19,797
75,292
810
6,667
228,992
1,100,703
Short Term
Employee
Benefits
Short Term
Employee
Benefits
Salary & Fees
$
58,500
Annual Leave
Payout $
Post
Employment
Benefits
Super-
annuation $
Long Term
Employment
Benefits
Termination
$
$
26,538
350,000
213,946
20,000
78,750
228,846
33,261
184,161
1,167,464
26,538
21,003
18,858
1,900
15,544
3,160
17,495
77,960
5,676
8,808
1,477
15,960
Total...
$......
58,500
403,217
241,612
21,900
78,750
570,618
36,421
203,133
326,229
326,229
1,614,151
Directors
Justin Pettett
Damien Glanville
Melissa Farrell
Barnaby Egerton-
Warburton
Andrew Pierce *
Ben Chester **
Neale O’Connell *
Executives
Paul Wilson
Total
*Resigned 21 January 2020
**Resigned 13 February 2020
Shareholdings of Key Management Personnel
Balance
30 June 2020
7,349,102
8,400,995
0
0
0
Shares
Acquired
160,000
0
0
60,000
0
Shares
Balance
Disposed
30 June 2021
0
0
0
0
0
7,509,102
8,400,995
0
60,000
0
Directors
Justin Pettett
Damien Glanville
Melissa Farrell
Barnaby Egerton-Warburton
Executives
Paul Wilson
18
Locality Planning Energy Holdings Limited | Annual Report 2021 Other required disclosures
for the year ended 30 June 2021
Principal Activities of the Consolidated Entity
The principal activity of the consolidated entity is the
sale of electricity and utility services to residential and
commercial customers throughout the Australian
National Electricity Market.
Dividends
The directors do not recommend the payment of a
dividend and no amount has been paid or declared by
way of a dividend since 30 June 2021 and to the date
of this report.
Review of Activities and Business Strategies
An operating and financial review of the Company
during the financial year is contained on pages 12
to 13 of this report and forms part of the Director’s
Report. It includes a review of operations during the
year, as well as the financial results and business
strategies of the Company.
Changes in State of Affairs
In the opinion of the Directors, there were no significant
changes in the state of affairs of the consolidated
entity that occurred during the financial year.
Proceedings on Behalf of the Company
No person has applied under Section 237 of the
Corporations Act for leave of the Court to bring
proceedings on behalf of the Company or intervene
in any proceedings to which the Company is a party
for the purpose of taking responsibility on behalf of
the Company for all or any part of those proceedings.
The Company was not a party to any other such
proceedings during the year.
Non-Audit Services
Non-audit services have been provided during the year
by the external auditor, Bentleys. Disclosure of the
details of these services can be found in Note 24 of
the Financial Statements.
Auditor’s Independence Declaration
A copy of the external auditor’s declaration under
Section 370C of the Corporates Act in relation to
the audit for the financial year is attached to the
Company’s Financial Statements.
Indemnification and Insurance of Officers
or Auditor
Each of the Directors and the Secretary of the
Company have entered into a Deed with the
Company whereby the Company has provided certain
contractual rights of access to books and records of
the Company to those Directors and the Secretary.
The Company has insured all of the Directors and
Officers of Locality Planning Energy Holdings Limited.
The contract of insurance prohibits the disclosure
of the nature of the liabilities covered and amount of
the premium paid. The Corporations Act 2001 does
not require disclosure of the information in these
circumstances. The Company has not indemnified or
insured its auditor.
Events Subsequent to Balance Date
The Company raised an additional $3,144,000
capital via the issue of 15,720,000 fully paid ordinary
shares in August 2021. A further 14,280,000 shares
to raise an additional $2,856,000 is subject to
shareholder approval. There are no other matters or
circumstances that have arisen since the end of the
year which significantly affected or could significantly
affect the operations of the Consolidated Entity, the
result of those operations or the state of affairs of the
Consolidated Entity in future financial years.
Non-IFRS Financial Information
The Operating & Financial Review attached to and
forming part of this Directors’ Report includes non-
International Financial Standards (IFRS) financial
measures. The Company’s management uses
these non-IFRS financial measures to assess the
performance of the business.
• Principal among these non-IFRS financial measures
is Underlying EBIT. This measure is adjusted
for significant items (which are material items of
revenue or expenses that are unrelated to the
underlying performance of the business); and
• Changes in the fair value of financial instruments
recognised in the statement of profit or loss (to
remove the volatility caused by mismatches in
valuing financial instruments and the underlying
asset differently).
The Company believes that Underlying EBIT provides
a better understanding of its financial performance
than Statutory EBIT and allows for a more relevant
comparison of financial performance between financial
periods.
Underlying EBIT is presented with reference to
ASIC Regulatory Guide 230 ‘Disclosing non-IFRS
financial information’, issued in December 2011. The
Company’s policy for reporting Underlying EBIT is
consistent with this guidance. The Directors have
had the consistency of the application of the policy
reviewed by the external auditor of the Company.
19
Locality Planning Energy Holdings Limited | Annual Report 2021 affect customers. LPE regularly assesses its cyber
security profile. All Employees undertake cyber
awareness training, including how to identify scam
emails and how to keep data safe.
Climate change
The ongoing decarbonisation of energy markets and
the decreasing demand for fossil fuels provides both
risks and opportunities for LPE. The Company is
focused and committed to growth and innovation of its
Solar products.
Company Health and Safety Policy
It is the responsibility of all employees to act in
accordance with occupational health and safety
legislation, regulations and policies applicable to their
respective organisations and to use security and safety
equipment provided.
Specifically, all employees are responsible for safety in
their work area by:
• following the safety and security directives of
management;
• advising management of areas where there is a
potential problem in safety and reporting suspicious
occurrences; and
• minimising risks in the workplace.
Environmental
Whilst it is not an environmental issue for the
Company, under the Renewable Energy Target, the
Company is obliged to purchase and surrender an
amount of large-scale generation certificates, and
small-scale technology certificates, based on the
volume of electricity the Company acquires each year.
Approval of Directors’ Report
This Director’s Report is made in accordance with a
resolution of the Board of Directors and is signed for
and on behalf of the Board this 26th day of August
2021.
Justin Pettett
Chairman
Corporate Governance
A copy of Locality Planning Energy Holdings Limited’s
Corporate Governance Statement can be found on
the Company’s website at https://localityenergy.com.
au/invester-resources-pdf/corporate-governance
Business Risks
The Company has identified the following risks as
having the potential to materially affect LPE’s ability to
meet its business objectives:
Regulatory policy
LPE is exposed to regulatory policy change and
government interventions. Changes in energy market
design and climate change policies for example,
have the potential to impact the financial outcomes
of the Company. LPE contributes to policy process
by actively participating in public policy debate,
proactively engaging with policy makers and
participating in public forums, industry associations
and research.
Competition
LPE operates in a highly competitive industry which
can put pressure on margins. Our strategy to mitigate
this risk is to effectively build customer loyalty and
trust by delivering an exceptional customer service
experience based on openness and transparency, and
by offering innovative energy solutions that come with
longer length supply terms.
Changes in demand for energy
A decrease in demand for energy could possibly
reduce LPE’s revenues and adversely affect the
Company’s future financial performance. LPE cannot
control the habits or consumption patterns of our
customers, however LPE works to mitigate the impact
of this risk by utilising data analytics to better predict
customer demand.
Technological developments/disruption
Technology is allowing consumers to understand
and manage their electricity usage through smart
appliances, having the potential to disrupt the
Company’s existing relationship with consumers.
Advances in technology have the potential to create
new business models and introduce new competitors.
LPE actively monitors and participates in technological
developments and is exploring investments in new
innovative products to enhance customer experience
and reduce cost to serve.
Cyber security
A cyber security incident could lead to disruption of
critical business operations. It could also lead to a
breach of privacy, and loss of and/or corruption of
commercially sensitive data which could adversely
20
Locality Planning Energy Holdings Limited | Annual Report 2021 Financial
Statements
21
21
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Consolidated statement of profit or loss and other comprehensive
income for the year ended 30 June 2021
Electricity revenue
Electricity cost of goods sold
Unrealised gain/(losses) on derivatives
Gain from trading
Other income
Total operating income
Impairment losses
Financing expenses
Other expenses
Loss before income taxes
Income tax benefit/(expense)
Net loss for the period
Other comprehensive income
Other comprehensive income net of tax
Total comprehensive loss for the year
Basic earnings/(loss) per share (dollars per share)
Diluted earnings/(loss) per share (dollars per share)
Note
5A
5B
2021....
$.......
2020....
$.......
54,880,379
(46,265,094)
5,638,187
14,253,472
42,926,175
(35,782,849)
(2,254,517)
4,888,809
5C
5D
5E
5F
6
17
17
711,322
14,964,794
793,412
5,682,221
(598,039)
(2,217,719)
(11,230,789)
918,247
(505,289)
(1,841,979)
(10,566,220)
(7,231,267)
-
918,247
-
(7,231,267)
-
-
918,247
0.0180
0.0171
-
-
(7,231,267)
(0.1440)
(0.1440)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the Notes to the Financial Statements.
22
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Consolidated statement of financial position
for the year ended 30 June 2021
Current assets
Cash and cash equivalents
Trade and other receivables
GST receivable
Site conversion receivables current
Financial assets – derivatives
Other current assets
Total current assets
Non-current assets
Site conversion receivables
Financial assets - non current
Plant and equipment
Leasehold improvements
Intangibles
Right of use assets
Total non-current assets
TOTAL ASSETS
Current liabilities
Trade and other payables
GST payable
Employee entitlements - leave provisions
Lease Liabilities
Provisions
Financial liabilities - derivatives
Borrowings
Total current liabilities
Non-current liabilities
Employee entitlements - leave provisions
Lease Liabilities
Borrowings
Total non-current liabilities
TOTAL LIABILITIES
Net assets / (deficiency)
Equity
Issued capital
Share option reserve
Accumulated losses
Total equity
The Consolidated Statement of Financial Position should be read in conjunction
with the Notes to the Financial Statements.
Note
2021....
$.......
2020....
$.......
21
7
7
8
9
7
10
11
12
13
14
15
15
16
5,745,250
10,045,765
179,918
944,180
3,403,475
1,327,000
21,645,588
3,703,181
1,612,312
479,578
426,609
210,058
823,408
7,255,146
8,251,616
4,862,976
-
1,360,871
126,027
461,274
15,062,764
3,968,347
2,250,000
395,446
177,090
478,002
117,360
7,386,245
28,900,734
22,449,009
11,872,243
-
323,673
222,364
32,805
-
173,612
12,624,697
8,911,718
30,580
216,169
107,923
46,049
2,205,301
143,365
11,661,105
74,143
1,011,331
14,088,430
15,173,904
62,567
3,427
13,521,697
13,587,691
27,798,601
25,248,796
1,102,133
(2,799,787)
41,775,446
273,107
(40,946,420)
1,102,133
39,064,880
-
(41,864,667)
(2,799,787)
23
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Consolidated statement of cash flows
for the year ended 30 June 2021
Cash flows from operating activities
Receipts from customers
Receipts from government utility relief scheme
Receipts from government grants
Payments to suppliers and employees
Interest received
Interest paid
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Payment for financial assets
Payment for plant and equipment
Payment for leasehold improvements
Payment for intangibles
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Proceeds from issues of shares
Share issue costs
Financing costs paid
Proceeds from loans
Repayment of leases
Repayment of loans
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents opening balance
Cash and cash equivalents closing balance
Note
2021....
$.......
2020....
$.......
49,940,376
-
119,248
(54,892,817)
645,621
(1,566,314)
(5,753,886)
36,474,440
6,653,700
58,899
(43,274,840)
679,900
(1,143,332)
(551,233)
1,707,915
(244,092)
(10,294)
(109,089)
(1,344,440)
(2,376,027)
(114,645)
(10,917)
(456,535)
(2,958,124)
3,168,500
(184,827)
(950,804)
225,251
(184,579)
(170,461)
1,903,080
-
-
(395,259)
11,383,110
(135,683)
(2,397,267)
8,454,901
(2,506,366)
8,251,616
5,745,250
4,945,544
3,306,072
8,251,616
22
22
22
22
22
22
The Consolidated Statement of Cash Flows should be read in conjunction
with the Notes to the Financial Statements.
24
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Consolidated statement of changes in equity
for the year ended 30 June 2021
Balance at 1 July 2019
Profit/(Loss) after income tax
Balance at 30 June 2020
Balance at 1 July 2020
Issue of share capital
Capital raising costs
Issue of share capital
Profit/(Loss) after income tax
Balance at 30 June 2021
Issued..
capital..
$.......
Options..
reserve..
$.......
Accumulated
losses..
$.......
Totals...
$.......
39,064,880
-
39,064,880
39,064,880
3,168,500
(457,934)
-
-
41,775,446
-
-
-
-
-
-
273,107
-
273,107
(34,633,400)
(7,231,267)
(41,864,667)
4,431,480
(7,231,267)
(2,799,787)
(41,864,667)
-
-
-
918,247
(40,946,420)
(2,799,787)
3,168,500
(457,934)
273,107
918,247
1,102,133
The Consolidated Statement of Changes in Equity should be read in conjunction
with the Notes to the Financial Statements.
25
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
1. Reporting Entity
The financial statements of Locality Planning Energy Holdings Limited (“the Company”) for the year ended
30 June 2021 covers the Consolidated Entity consisting of Locality Planning Energy Holdings Limited and the
entities it controlled from time to time throughout the year (“the Group” or “Consolidated Entity”) as required by the
Corporations Act 2001. Locality Planning Energy Holdings Limited is a for-profit entity for the purpose of preparing
these financial statements.
The financial statements are presented in Australian dollars, which is the functional currency.
The address of the Group’s registered office and principal place of business is
Level 8, 8 Market Lane, Maroochydore QLD 4558.
2. Basis of Preparation
(a) Statement of Compliance
The Financial Report has been prepared in accordance with requirements of Australian Accounting Standards,
other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Corporations
Act 2001.
This report is to be read in conjunction with any other public announcements made by the Group during the year in
accordance with the continuous disclosure requirements of the Corporations Act 2001.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply
with International Financial Reporting Standards.
The accounting policies adopted are consistent with those of the previous financial year, unless stated otherwise.
(b) Basis of Measurement
The financial statements have been prepared on the historical cost basis, modified, where applicable by the
measurement at fair value of selected financial assets and liabilities.
(c) Use of Estimates and Judgements
The preparation of financial statements in conformity with AASB’s requires management to make judgements,
estimates and assumptions that effect the application of 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 in the period in which the estimates are revised and in any future periods affected. Information about
critical estimates and judgements in applying accounting policies that have the most significant effect on the
amounts recognised in the financial statements are outlined below:
Impairment
The Group assesses impairment at the end of each reporting period by evaluating conditions specific to the Group
that may be indicative of impairment triggers. Impairment of financial assets (trade receivables and financial assets)
are assessed for impairment as described in Note 3G. Note 3H describes the process for assessing impairment for
non-financial assets (property, plant and equipment, intangible assets and other assets).
Site Conversion Revenue
Site conversion revenue is recognised upon installation, however customers are able to make payment over a 5 to
15 year period. The Group has assessed that where this payment is deferred, the transaction contains a significant
financing component and therefore the revenue must be adjusted for the effects of the time value of money.
Judgement is therefore required to determine the amount of the consideration that relates to the site conversion
revenue, and the amount relating to the financing of the purchase. See Note 3K for further details.
26
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
2. Basis of Preparation (continued)
(c) Use of Estimates and Judgements (continued)
Derivatives
LPE’s approach to managing energy price risks reflects the need to provide pricing certainty to customers and limit
exposure to adverse wholesale market outcomes. LPE uses certain financial instruments (derivatives) to manage
these energy price risks arising in the normal course of business to align with LPE’s risk appetite.
These derivatives are recorded at fair value through profit or loss. Fair value is determined using valuation
techniques that incorporate a range of estimates and judgements, as described in Note 23.
(d) Going Concern
The financial statements have been prepared on a going concern basis which contemplates the continuity
of normal business activities and the realisation of assets and discharge of liabilities in the ordinary course of
business. The Group earned a net profit after income tax for the year ended 30 June 2021 of $918,247 (2020: net
loss $7,231,267), and net assets of $1,102,133 (2020: net asset deficiency of $2,799,787), however a non-cash
movement on the fair value of derivatives increased this performance by $5,638,187.
While net cash outflow from operations of $5,753,886 (2020: $551,233) would have otherwise been an
improvement if receipts (approximately $3,500,000) from a government utility relief scheme received in 2020, had
of been received in the ordinary course of business during 2021, there remains material uncertainty on whether
the Group will continue as a going concern, particularly given the company’s $15,000,000 debt facility is nearing
maturity.
The Group has $4,745,250 in unrestricted cash at 30 June 2021, and in August 2021 successfully raised
$3,144,000 of capital through an issue of shares, with a further $2,856,000 committed subject to shareholder
approval. The Group is also examining refinancing opportunities, for its current debt facility. On this basis, the
Group has prepared budgets and has determined it has sufficient net working capital to maintain continuity of
normal business activity and pay its debts as and when they fall due, and therefore that it is appropriate to prepare
the financial report on a going concern basis.
3. Significant Accounting Policies
The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements, and have been applied by all entities in the Group.
(a) Basis of Consolidation
The consolidated financial statements comprise the financial statements of Locality Planning Energy Holdings
Limited and its subsidiaries for the year ended 30 June 2021 (“the Group”). Subsidiaries are entities (including
structured entities) over which the Group has control. The Group has control over 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 use its
power to affect those returns. Subsidiaries are consolidated from the date on which control is transferred to the
Group and are deconsolidated from the date that control ceases.
All intercompany balances and transactions, including unrealised profits arising from intragroup transactions have
been eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment
of the asset transferred.
27
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
3. Significant Accounting Policies (continued)
(b) Income Tax
The charge for current income tax expense is based on the profit/(loss) for the year adjusted for any non-
assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted
by the balance date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination,
where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised
or liability is settled. Current and deferred tax is recognised in the profit or loss, except where it relates to items
recognised in the other comprehensive income or directly in equity. In this case the tax is recognised in the other
comprehensive income or directly in equity respectively.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences or tax losses can be utilised. To the extent that any rebates are
received from Government taxation authorities, they are recognised in profit or loss as an income tax benefit.
(c) Plant and Equipment
Plant and equipment are measured on the cost basis less depreciation and impairment losses.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the consolidated entity
and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit or
loss during the financial period in which they are incurred.
All assets are depreciated on either a straight line basis or diminishing value basis over their useful lives to the
consolidated entity commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Depreciation Rate & Method
Plant and equipment
10-50% per annum straight line or diminishing value
Motor Vehicles
25% per annum, diminishing value
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are included in the profit or loss.
D. Intangible Assets
Intangible assets include the cost of software development. Software has an estimated useful life of between three
and ten years. It is assessed annually for impairment.
28
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
3. Significant Accounting Policies (continued)
(e) Leashold Improvements
Leasehold improvements are amortised over the shorter of either the unexpired period of the lease or the
estimated useful lives of the improvements.
(f) Trade and Other Payables
Trade and other payables represent liablities for goods and services provided to the Group prior to the year end
and which are unpaid. These amounts are unsecured and have 30-60 day payment terms. They are recognised
initially at fair value and subsequently measured at amortised cost using the effective interest method.
(g) Impairment of Financial Assets
The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which
prescribes the use of the lifetime expected loss provision for all trade receivables. To measure the expected credit
losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due,
and a provision matrix is used.
The “amounts written off” are all due to customers declaring bankruptcy, or term receivables that have now
become unrecoverable.
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or loss in
the Statement of Profit or Loss and Other Comprehensive Income.
(h) Impairment of Non-Financial Assets
At each reporting date, the Consolidated Entity reviews the carrying values of its tangible and intangible assets
to determine whether there is any indication that those assets have been impaired. If such an indication exists,
the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use,
is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is
expensed in the profit or loss.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
(i) Share-based Payments
The Consolidated Entity may make share-based payments to directors, employees and suppliers. The fair value of
the equity to which employees become entitled is measured at grant date and recognised as an expense over the
vesting period, with a corresponding increase to an equity account. The fair value of shares is ascertained as the
market bid price. The fair value of options is ascertained using a valuation which incorporates all market vesting
conditions. The number of shares and options expected to vest is reviewed and adjusted at each reporting date
such that the amount recognised for services received as consideration for the equity instruments granted shall be
based on the number of equity instruments that eventually vest.
(j) Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within
short-term borrowings in current liabilities on the statement of financial position.
29
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
3. Significant Accounting Policies (continued)
(k) Revenue
Revenue for the Group can be categorised as follows:
– Supply of electricity
– Supply of embedded network or solar infrastructure (including installation)
Supply of electricity
Revenue from the supply of electricity is recognised as the customer obtains a benefit from the supply, which
occurs over time as the customer consumes the electricity. Consumption is determined by meter readings.
Between meter readings, consumption is estimated using industry and historical customer consumption patterns,
along with consumption reports from the Group’s suppliers.
Costs associated with the supply of the electricity are expensed over time in line with customers’ consumption.
Supply of embedded network or solar infrastructure
The Group arranges to supply and install embedded network infrastructure on customers’ premises. The
performance obligation is the installation of the infrastructure, and therefore revenue is recognised at a point in time
upon installation. Likewise, the Group arranges to supply and install solar infrastructure on customers’ premises.
The performance obligation is the installation of the infrastructure, and therefore revenue is recognised at a point in
time upon installation.
Customers have the option to pay for the site conversion infrastructure over the life of a related electricity supply
contract, ranging from 5 to 15 years. Therefore a significant financing component has been identified within these
contracts. The revenue is therefore discounted to remove the financing component. Consideration receivable
in respect of this revenue is recognised as ‘site conversion receivables’ in the Statement of Financial Position.
The financing component has been assessed by the Group at a rate between 10%-12% per annum, and this is
recognised as interest revenue over time until the customer has paid all consideration.
Costs incurred to supply and install the site conversion infrastructure are expensed when the revenue is
recognised, upon installation. For costs incurred on site conversions where the infrastructure has not yet been
installed, and therefore no revenue yet recognised, the costs are capitalised within the inventory balance contained
within ‘Other Current Assets’ in the Statement of Financial Position.
(l) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of
the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Consolidated
Statement of Financial Position are shown inclusive of GST. Cash flows are presented in the statement of cash
flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as
operating cash flows.
(m) Issued Capital
Ordinary shares are classified as equity. Costs directly attributable to the issue of new shares or options are shown
as a deduction from equity.
30
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
3. Significant Accounting Policies (continued)
(n) Earnings per Share
The Consolidated Entity presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic
EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the
weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting
the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares
outstanding, adjusted for the effects of all dilutive potential ordinary shares.
(o) Leases
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present,
a right-of-use asset and a corresponding lease liability is recognised by the Group where the Group is a lessee.
However all contracts that are classified as short-term leases (lease with remaining lease term of 12 months or
less) and leases of low value assets are recognised as an operating expense on a straight-line basis over the term
of the lease.
Initially the lease liability is measured at the present value of the lease payments still to be paid at commencement
date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily
determined, the Group uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
–
fixed lease payments less any lease incentives;
– variable lease payments that depend on an index or rate, initially measured using the index or rate at
the commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
–
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
–
–
lease payments under extension options if lessee is reasonably certain to exercise the options; and
– payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to
terminate the lease.
The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above,
any lease payments made at or before the commencement date, as well as any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever is the
shortest.
Where a lease transfers ownership of the underlying asset, or the cost of the right-of-use asset reflects that
the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of the
underlying asset.
(p) Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions to the instrument. For financial assets, this is the date that the Group commits itself to either the
purchase or sale of the asset (ie trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs,
except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are
expensed to profit or loss immediately. Where available, quoted prices in an active market are used to determine
fair value. In other circumstances, valuation techniques are adopted.
31
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
3. Significant Accounting Policies (continued)
(p) Financial Instruments (continued)
Classification and subsequent measurement
Financial Liabilities
Financial liabilities are subsequently measured at:
– Amortised cost; or
– Fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
– A contingent consideration of an acquirer in a business combination to which AASB 3: Business
Combinations applies;
– Held for trading; or
–
Initially designated at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of
the financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through the
expected life of the instrument to the net carrying amount at initial recognition.
A financial liability is held for trading if:
–
It is incurred for the purpose of repurchasing or repaying in the near term;
– Part of a portfolio where there is an actual pattern of short-term profit taking; or
– A derivative financial instrument (except for a derivative that is in a financial guarantee contract or
a derivative that is in an effective hedging relationship).
The Group recognises the financial derivative instruments at fair value through profit or loss.
Financial Assets
Financial assets are subsequently measured at:
– Amortised cost;
– Fair value through other comprehensive income; or
– Fair value through profit or loss.
Measurement is on the basis of two primary criteria:
– The contractual cash flow characteristics of the financial asset; and
– The business model for managing financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
– The financial asset is managed solely to collect contractual cashflows; and
– The contractual terms within the financial asset give rise to cashflows that are solely payments of principal
and interest on the principal amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other
comprehensive income:
– The contractual terms within the financial asset give rise to cashflows that are solely payments of principal
and interest on the principal amount outstanding on specified dates;
– The business model for managing the financial assets comprises both contractual cashflows and the
selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value
through other comprehensive income are subsequently measured at fair value through profit or loss.
The Group currently has futures contracts that are recognised within financial assets in the Statement of Financial
Position that are recognised at fair value through profit or loss. All other financial assets are recognised at
amortised cost.
32
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
3. Significant Accounting Policies (continued)
(p) Financial Instruments (continued)
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement
of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled
or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a
substantial modification to the terms of a financial liability is treated as an extinguishment of the existing liability and
recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder’s contractual rights to its cash flows expire, or the asset is
transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
– The right to receive cash flows from the asset has been expired or been transferred;
– All risk and rewards of ownership of the asset have been substantially transferred; and
– The Group no longer controls the asset.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable is recognised in profit or loss.
(q) Employee Entitlements
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to
balance date.
Employee benefits that are expected to be settled within one year have been measured at the amounts expected
to be paid when the liability is settled. Long-term employee benefits are only recognised to the extent that it is
considered probable that employees will reach the eligible service period.
(r) New Accounting Standards Issued but not yet Applicable
A number of new standards and interpretations are effective for annual reporting periods beginning after 1 July
2021 and earlier application is permitted; however the Company has not early adopted the new or amended
standards in preparing these financial statements. The new standards relate to very specific circumstances that are
not applicable to the Group.
4. Segment Reporting
The Group has identified its operating segments as being the energy retail sector in Australia. Management
currently identifies the energy retail sector as being the Group’s sole operating segment.
There have been no changes in the operating segments during the year. Accordingly, all significant operating
decisions are based upon analysis of the Group as one segment. The financial results from the segment are
equivalent to the financial statements of the Group as a whole.
33
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
5. Statement of Profit or Loss and Other Comprehensive Income
A. Electricity Revenue
Electricity sales
Site conversion sales
Total electricity revenue
B. Electricity Cost of Goods Sold
Energy usage charges
Network charges
Other COGS
Site conversion COGS
Total electricity cost of goods sold
C. Other Revenue
Interest revenue
Government grants
Total other revenue
D. Impairment Losses
Bad debts written off
Addition to provision for doubtful debt
Total impairment losses
E. Financing Expenses
Borrowing expenses
Interest on leases
Interest expense
Total financing expenses
F. Other Expenses
Bank fees
Depreciation and amortisation
Employee costs
(Gain)/loss on disposal of assets
Information technology
Insurance
Marketing and advertising
Occupancy expenses
Other expenses
Professional costs
Total other expenses
34
Consolidated
Entity 2021
$........
Consolidated
Entity 2020
$........
53,310,798
1,569,581
54,880,379
41,175,283
1,750,892
42,926,175
17,401,769
21,508,930
5,917,640
1,436,755
46,265,094
15,889,239
13,648,301
4,609,657
1,635,652
35,782,849
642,074
69,248
711,322
249,158
348,881
598,039
651,405
55,944
1,510,370
2,217,719
123,659
606,206
6,093,965
46,382
2,292,215
84,851
580,617
30,026
1,052,980
319,888
679,968
113,444
793,412
131,801
373,488
505,289
665,438
30,530
1,146,011
1,841,979
120,410
630,409
6,502,705
25,159
1,309,888
100,166
312,905
92,345
918,914
553,319
11,230,789
10,556,220
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
6. Income Tax
Components of tax expense/(benefit) comprise:
Current tax
Prior year tax
Deferred tax
Income tax expense/(benefit)
Numerical reconciliation of income tax benefit to prima facie tax payable
Profit/(Loss) from operations before tax for the year
The prima facie income tax benefit on loss before income tax
at a tax rate of 30% (2020: 27.5%)
Tax effect amounts which are not (deductible)/taxable
in calculating taxable income:
Deferred tax asset not brought to account
Total income tax benefit
Net unrecognised deferred tax assets
Net Deductible/(Assessable) temporary differences
Unused tax losses
Net unrecognised deferred tax asset
Consolidated
Entity 2021
$........
Consolidated
Entity 2020
$........
-
-
-
-
-
-
-
-
918,247
275,474
(7,231,267)
(1,988,598)
(16,758)
3,964
(258,716)
-
1,984,634
-
(2,457,628)
(331,910)
7,256,080
4,798,452
4,892,469
4,560,559
The above potential tax benefit for tax losses has not been recognised in the statement of financial position.
These tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that,
the same business test is passed.
The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been
recognised in the statement of financial position as the recovery of this benefit is uncertain.
The consolidated entity has no franking credits.
35
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
7. Trade & Other Receivables
Trade receivables
Trade receivables provision
Hedging counterparty receivables
Interest receivables
Site conversion receivables (current)
Site conversion receivables (non-current)
Site conversion receivables provision (current)
Site conversion receivables provision (non-current)
Consolidated
Entity 2021
$........
8,848,596
(163,911)
1,360,663
417
10,045,765
1,522,741
3,703,181
(68,499)
(510,062)
14,693,126
Consolidated
Entity 2020
$........
4,984,841
(125,830)
-
3,965
4,862,976
1,628,633
3,968,347
(44,973)
(222,789)
10,192,194
Current trade receivables are interest bearing and are generally receivable within 14 days.
Opening
Balance
1 July 2019
Net Measure-
ment of loss
allowance
Amounts
written off
Closing
Balance
30 June 2020
Lifetime Expected Credit Loss: Credit Impaired
Current trade receivables
Current interest receivables
Current site conversion receivables
Non-current site conversion
receivables
20,103
-
-
-
105,726
-
44,973
222,789
131,801
-
-
-
125,829
-
44,973
222,789
20,103
373,488
131,801
393,591
Opening
Balance
1 July 2020
Net Measure-
ment of loss
allowance
Amounts
written off
Closing
Balance
30 June 2021
Lifetime Expected Credit Loss: Credit Impaired
Current trade receivables
Current interest receivables
Current site conversion receivables
Non-current site conversion
receivables
125,829
-
44,973
222,789
38,081
-
23,526
287,273
249,158
-
-
-
163,910
-
68,499
510,062
393,591
348,880
249,158
742,471
The entity does not hold any financial assets whose terms have been renegotiated, but which would otherwise
be past due or impaired.
Collateral held as security
No collateral is held as security for any of the trade and other receivable balances.
Collateral pledged
No collateral has been pledged for any of the trade and other receivable balances.
36
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
8. Financial Assets
At fair value through the profit or loss
Financial assets – derivatives
At Amortised Cost
ASX initial margin on derivatives
9. Other Current Assets
Bond paid
Prepayments
Environmental Certificates
Inventory
Environmental Certificates
Consolidated
Entity 2021
$........
Consolidated
Entity 2020
$........
3,347,675
-
55,800
3,403,475
126,027
126,027
-
246,675
618,709
461,616
1,327,000
66,209
183,469
-
211,596
461,274
Environmental certificates are classified into two certificate types, Large-scale Generation Certificates (LGCs)
and Small-scale Technology Certificates (STCs).
LGCs and STCs are measured at fair value at the end of the financial year, with changes in fair value recognised
in the statement of profit or loss and other comprehensive income. LGCs and STCs held at the end of financial
year are valued at the market price on the measurement date.
10. Non-Current Financial Assets
At Amortised Cost
Term deposits
1,612,312
1,612,312
2,250,000
2,250,000
Term Deposits
Non-current financial assets in the form of term deposits are held as security for bank guarantees for various
suppliers and hedging counterparties. The bank guarantees are not due to expire within the next 12 months, and
as such have been classified as non-current. Prior year term deposits held as security for bank guarantees have
been adjusted to non-current also.
AEMO & Hedging Counterparties
Office Lease
1,400,000
212,312
1,612,312
2,250,000
-
2,250,000
37
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
11. Plant & Equipment
Plant & equipment at cost
Accumulated depreciation
Motor vehicles at cost
Accumulated depreciation
Reconciliation
Reconciliations of the carrying amount of each class of plant and
equipment between the beginning and the end of the financial year.
Plant and Equipment
Balance at the beginning of the year
Additions
Depreciation
Disposals
Balance at the end of the year
Motor Vehicles
Balance at the beginning of the year
Additions
Depreciation
Disposals
Balance at the end of the year
12. Leasehold Improvements
Leasehold improvements at cost
Accumulated depreciation
Reconciliation
Reconciliations of the carrying amount of leasehold improvements
between the beginning and the end of the financial year.
Leasehold improvements
Balance at the beginning of the year
Additions
Depreciation
Disposals
Balance at the end of the year
38
Consolidated
Entity 2021
$........
621,960
(353,266)
268,694
Consolidated
Entity 2020
$........
527,978
(292,403)
235,575
413,440
(202,556)
210,884
479,578
310,412
(150,541)
159,871
395,446
235,575
143,145
(88,002)
(360,725)
(70,007)
159,871
103,028
(52,015)
-
210,884
........
482,294
(55,685)
426,609
268,135
82,153
(108,868)
(5,845)
235,575
180,520
39,401
(50,216)
(9,834)
159,871
........
518,357
(341,267)
177,090
177,090
482,294
(211,952)
(20,823)
426,609
372,371
10,917
(206,198)
-
177,090
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
13. Intangibles
Intangibles at cost
Intangibles work in progress
Accumulated amortisation
Reconciliation
Reconciliations of the carrying amount of intangibles between the
beginning and the end of the financial year.
Intangibles
Balance at the beginning of the year
Additions
Amortisation
Disposals
Balance at the end of the year
14. Right of Use Asset
Right of use asset at cost
Accumulated amortisation
Reconciliation
Reconciliations of the carrying amount of right of use assets
between the beginning and the end of the financial year.
Right of use assets
Balance at the beginning of the year
Additions
Depreciation
Disposals
Balance at the end of the year
15. Borrowings
Current
Insurance financing
Motor vehicle financing
Non-current
Motor vehicle financing NC
Blackrock funding facility
Consolidated
Entity 2021
$........
346,553
94,300
(230,795)
210,058
Consolidated
Entity 2020
$........
345,134
338,700
(205,832)
478,002
478,002
109,089
(31,518)
(345,516)
210,058
162,154
455,620
(95,427)
(44,345)
478,002
........
........
939,146
(115,738)
823,408
287,059
(169,699)
117,360
116,724
928,767
(222,063)
-
823,408
285,469
-
(168,745)
-
116,724
107,421
66,191
173,612
92,862
50,503
143,365
58,253
14,030,177
14,088,430
33,711
13,487,986
13,521,697
The Group has a funding facility of $15 million with Blackrock as at 30 June 2021. This facility is fully drawn down
by $15 million as at 30 June 2021 (2020: $15 million). This is presented above net of borrowing costs.
39
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
16. Issued Capital
(a) Issued and paid up capital
Ordinary shares fully paid no par value
(b) Movement in ordinary shares on issue
Balance at 30 June 2020
Issued for cash 10 August 2020
Issued for cash 7 September 2020
Capital raising expenses
Balance at 30 June 2021
2021
Number
2020
Number
62,884,736
50,210,736
Number
50,210,736
12,000,000
674,000
-
62,884,736
$........
39,064,880
3,000,000
168,500
(457,934)
41,775,448
Ordinary shares
Ordinary shares entitle the holder to paricipate in dividends and the proceeds on the winding up of the company
in proportion to the number of and amounts paid on the shares held.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon
a poll each share shall have one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
Share buy-back
There is no current on-market share buy-back.
(c) Share options
Balance at 30 June 2020
Issued 10 August 2020
Balance at 30 June 2021
Number
-
3,400,000
3,400,000
$........
-
273,107
273,107
The fair value of options is determined in accordance with the fair market value of the shares available at the
issue date. The Black-Scholes option valuation method has been utilised and some inputs require the application
of judgement. The assumptions are set out below:
Volatility
Risk-free interest rate
Expected life of share options (years)
Dividend yield
2021
78.0%
0.1%
1.9
0.0%
The expected volatility and life of share options are based on historical data and current expectations and are not
necessarily indicative of actual outcomes.
Capital risk management
The consolidated entity's objectives when managing capital are to safeguard its ability to continue as a going
concern so that it can provide returns for shareholders and benefits for other stakeholders and to maintain
an optimum capital structure to reduce the cost of capital.
In common with many other newly listed companies, the parent raises finance for the consolidated entity’s
working capital and asset development activities.
The consolidated entity is not subject to externally imposed capital requirements.
40
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
17. Earnings Per Share
Weighted average number of shares used as the denominator in
calculating basic and diluted earnings per share
Net profit/(loss) after tax used in calculating basic earnings per share
Basic earnings/(loss) per share (dollars per share)
Net profit/(loss) after tax used in calculating diluted earnings per share
Diluted earnings/(loss) per share (dollars per share)
2021
Number
62,884,736
$........
918,247
0.0180
918,247
0.0171
2020
Number
50,210,736
$........
(7,231,267)
(0.1440)
(7,231,267)
(0.1440)
18. Controlled Entities
Investment in controlled entities
Locality Planning Energy Pty Ltd
Locality Embedded Networks Pty Ltd
Country
of Inc.
Australia
Australia
Class of
Shares
% of
Ownership
2021
% of
Ownership
2020
Ord
Ord
100%
100%
100%
100%
19. Commitments
The Group has no material commitments that require reporting.
20. Contingent Liabilities and Assets
The Directors are not aware of any contingent liabilities or contingent assets that are likely to have a material
effect on the results of the Group as disclosed in these financial statements (2020: nil).
21. Related Parties
Key management personnel compensation
Short term employee benefits
Post-employment benefits
Long-term benefits
Termination benefits
Other related party transactions
There were no other related party transactions.
2021iiiii
$ A.....
1,018,745
75,291
6,667
-
1,100,703
2020iiiii
$...A...
1,194,003
77,960
15,960
326,229
1,614,151
41
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
22. Cash Flow Information
Reconciliation of cash flow from operations with profit / (loss) after tax
Profit / (loss) after tax
Non-cash flows:
Depreciation and amortisation
Loss on disposal of assets
Intangible asset write-off
Unrealised (gain) / loss on derivatives
Expenditure classified as financing activities
Changes in operating assets and liabilities
Increase in receivables*
Decrease / (increase) in other assets
(Decrease) / increase in creditors and payables
Increase in employee entitilements
Net cash used in operating activities
Reconciliation of liabilities arising from financing activities
Borrowings
Lease liability
Cashflows
Non-cash changes
Lease liability additions against ROU assets
Consolidated
Entity 2021
$........
Consolidated
Entity 2020
$........
918,247
(7,231,267)
606,206
46,382
338,700
(5,638,187)
632,317
(3,096,335)
(4,680,850)
(865,726)
2,769,945
119,080
(5,753,886)
13,665,062
111,350
(1,053,938)
1,459,275
1,313,988
15,495,737
630,409
25,159
-
2,254,517
628,460
(3,692,722)
(1,606,878)
(124,093)
4,886,208
(13,748)
(551,233)
5,218,509
-
8,454,901
(8,348)
-
13,665,062
Cash and cash equivalents in the Consolidated Statement of Cash Flows include:
Cash at bank
Cash on deposit
Restricted cash**
3,215,250
1,530,000
1,000,000
5,745,250
8,251,616
-
-
8,251,616
*2020 includes a cash inflow of approximately $3,500,000 from a government utility relief scheme that would have otherwise been received
during the ordinary course of business in 2021.
**Restricted cash represents $1,000,000 that the Company is holding as credit support from hedging counterparties. In addition, the Company
is also holding a further $2,000,000 in Bank Guarantees for credit support from hedging counterparties.
42
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
23. Financial Instruments
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis
of measurement and the basis on which income and expense are recognised, in respect of each class of financial
asset, financial liability, and equity instrument are disclosed in Note 3 to the financial statements.
Financial risk management objectives
The financial risks of the Consolidated Entity include price risk, interest rate risk, liquidity risk and credit risk. The
Consolidated Entity does not enter into or trade financial instruments, including derivative financial instruments,
for speculative purposes.
Price risk
Price risk is the risk of changes to market prices in the supply of electricity. This risk applies to both the price
at which the Company sells electricity to its customers and the price it pays for that electricity. The Company
eliminates wholesale price risk by using fixed price contracts where possible.
Where fixed price contracts are not possible, the Company minimises its exposure to the wholesale spot prices
by using derivative products, and a minimum hedge limit (MHL) provides floor coverage over a contracted load.
Sensitivity
A 30% increase/decrease in electricity spot prices effects the company’s load weighted hedged cost of electricity
by less than 4%.
Interest rate risk
Interest rate risks are caused by fluctuations in interest rates which, in turn, are due to market forces.
The Consolidated Entity’s main interest rate risk arises from cash and cash equivalents held to maturity
investments, and borrowings. The following table demonstrates the sensitivity to a reasonably possible change
in interest rates, with all other variables held constant, of the Consolidated Entity’s profit or loss before taxes
through the impact on cash and cash equivalents, and borrowings with a decrease or an increase of 0.25%
in interest rates.
It is the policy of the Consolidated Entity to manage their risks by continuously monitoring interest rates.
Cash and cash equivalents and other financial assets
Borrowings
Sensitivity
Effect on profit or loss before taxes
Increase 0.25%
Decrease 0.25%
Consolidated
Entity 2021
$........
Consolidated
Entity 2020
$........
5,745,250
(14,262,042)
(8,516,792)
8,251,616
(13,665,062)
(5,413,446)
(21,292)
21,292
(13,534)
13,534
43
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
23. Financial Instruments (Continued)
Liquidity risk management
Liquidity risks are caused by the inability to raise the money needed to meet payment of liabilities as and when
they fall due. The Consolidated Entity manages liquidity risk by maintaining of reserves and by continually
monitoring forecast and actual cash flows and cash balances.
At 30 June 2021 current assets exceed current liabilities by $9,020,891 (2020: current assets exceeded current
liabilities by $3,401,659). Financial liabilities comprised trade payables, accruals and other payables. All trade
payables and accruals have a contractual maturity of 6 months or less.
Credit risk management
In relation to financial assets, credit risk arises from the potential failure of counterparties to meet their obligations
under a contract or arrangements. Credit risk for the Consolidated Entity arises from cash and cash equivalents
and outstanding receivables. The Consolidated Entity partially reduces credit risk by the use of direct debit
facilities with its customers. In addition, the Company has the right to withhold the supply of electricity to secure
payment. All cash & cash equivalents are held with Australian regulated banks. The maximum exposure to credit
risk is the carrying amount of the financial assets recognised in the Consolidated Statement of Financial Position.
Fair values
The carrying amounts of all financial assets and liabilities primarily comprising cash and cash equivalents, trade
and other receivables, trade and other payables, employee entitlements, derivatives and loans approximate their
fair value.
24. Auditors Remuneration
Amounts paid/payable for audit or review of the financial statements
Amounts paid/payable for tax and other services
Consolidated
Entity 2021
$......
Consolidated
Entity 2020
$......
94,016
3,000
97,016
104,975
4,315
109,290
25. Subsequent Events
The company raised an additional $3,144,000 capital via the issue of 15,720,000 fully paid ordinary shares in
August 2021. A further 14,280,000 shares to raise an additional $2,856,000 is subject to shareholder approval.
There are no other matters or circumstances that have arisen since the end of the year which significantly
affected or could significantly affect the operations of the Consolidated Entity, the result of those operations or
the state of affairs of the Consolidated Entity in future financial years.
44
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
26. Parent Entity Disclosures
The following information has been extracted from the books and records of the legal parent entity
Locality Planning Energy Holdings Limited.
2021
$...
2020
$...
Results of parent entity
Profit/(loss) for the year
Other comprehensive income/(loss) for the year
Total comprehensive income/(loss) before tax
Income tax benefit
Total comprehensive income before tax
Financial position of parent entity at year end
Current Assets
Total Assets
Current Liabilities
Non Current Liabilities
Total Liabilities
Net Assets
Total equity of the parent entity comprising:
Issued capital
Reserves
Accumulated losses
Total Equity
(2,668,180)
-
(2,668,180)
-
(2,456,468)
(2,456,468)
-
(2,456,468)
-
(2,456,468)
21,612,147
21,612,147
21,578,433
21,578,433
106,840
14,030,177
14,137,017
930,811
13,487,986
14,418,797
7,475,130
7,159,636
41,775,447
273,107
(34,573,424)
7,475,130
39,064,880
-
(31,905,244)
7,159,636
Contingent liabilities
As at 30 June 2021, Locality Planning Energy Holdings Limited is not aware of any contingent liabilities.
Contractual commitments
At 30 June 2021, contractual commitments entered into by Locality Planning Energy Holdings Limited
is $Nil (2020: $Nil).
Guarantees
Locality Planning Energy Holdings Limited has not entered into any guarantees, in the current or previous
financial years, in relation to debts of its subsidiaries.
45
Locality Planning Energy Holdings Limited | Annual Report 2021 Locality Planning Energy Holdings Limited – ABN 90 147 867 301
Notes to the financial statements for the year ended
30 June 2021
27. Fair Value Measurements
The Group measures and recognises the following assets and liabilities at fair value on a recurring basis after initial
recognition:
– derivative financial instruments;
–
–
financial assets held for trading;
financial assets at fair value through other comprehensive income;
The Group does not subsequently measure any liabilities at fair value on a non-recurring basis.
(a) Fair Value Hierarchy
AASB 13: Fair Value Measurement requires the disclosure of fair value information by level of the fair value
hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level
that an input that is significant to the measurement can be categorised into as follows:
Level 1:
Level 2:
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date.
Measurements based on inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly or indirectly.
Level 3:
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more
valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable
market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in
Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included
in Level 3.
The Group selects a valuation technique that is appropriate in the circumstances and for which sufficient data is
available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific
characteristics of the asset or liability being measured. The valuation techniques selected by the Group are
consistent with one or more of the following valuation approaches:
– Market approach uses prices and other relevant information generated by market transactions for identical
or similar assets or liabilities.
–
Income approach converts estimated future cash flows or income and expenses into a single discounted
present value.
– Cost approach reflects the current replacement cost of an asset at its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when
pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Group
gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable
inputs. Inputs that are developed using market data (such as publicly available information on actual transactions)
and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are
considered observable, whereas inputs for which market data is not available and therefore are developed using
the best information available about such assumptions are considered unobservable.
The Group uses an internally derived forward curve to calculate the fair value of its financial derivatives, using an
income approach. This model uses observable futures prices from ASX Energy and distributes these prices across
half hour intervals using internally derived ratios. The fair value of the Group’s financial derivative instruments is
$3,347,675 financial asset as at 30 June 2021 (2020: $2,376,027 financial liability). Given the significance of the
internally-derived ratios to the valuation, the Group has assessed this as Level 3.
46
Locality Planning Energy Holdings Limited | Annual Report 2021
Directors’
Declaration
The Directors of the Company declare that:
1. The attached financial statements and notes are in accordance with the Corporations Act 2001,
including:
(a) complying with Australian Accounting Standards (including Australian Accounting
Interpretations) and the Corporations Regulations 2001; and
(b) giving a true and fair view of the financial position as at 30 June 2021 and performance for
the year ended on that date of the consolidated entity.
2. The financial statements also comply with International Financial Reporting Standards as
disclosed in Note 2.
3. The Remuneration Report as set out in the Directors’ Report complies with Section 300A of The
Corporations Act 2001.
4. The Chief Executive Officer and Chief Financial Officer have declared that:
(a) the financial records of the company for the financial year have been properly maintained in
accordance with Section 286 of the Corporations Act 2001;
(b) the financial statements and notes for the financial year comply with the Australian
Accounting Standards (including Australian Accounting Interpretations); and
(c) the financial statements and notes for the financial year give a true and fair view.
5.
In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
JUSTIN PETTETT
Director
Dated: 26 August 2021
47
Locality Planning Energy Holdings Limited | Annual Report 2021
LOCALITY PLANNING ENERGY HOLDINGS LIMITED
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2021 there
have been:
i. no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
Bentleys Brisbane (Audit) Pty Ltd
Chartered Accountants
Ashley Carle
Director
Brisbane
26 August 2021
48
Locality Planning Energy Holdings Limited | Annual Report 2021 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Locality Planning Energy Holdings Limited (the Company”)
and its controlled entities (the “Group”), which comprises the consolidated statement of financial
position as at 30 June 2021 and the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of changes in equity and consolidated statement of
cash flows for the year then ended, notes to the financial statements comprising a summary of
significant accounting policies and other explanatory information, and the director’s declaration.
In our opinion the accompanying consolidated financial report of the Group is in accordance with the
Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of
its performance for the year then ended; and
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 Australian Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia.
We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material Uncertainty Related to Going Concern
Without modifying our opinion, we draw attention to Note 2(D) in the financial report, which indicates
that the Group earned a net profit of $918,247 and had a net cash outflow from operating activities
of $5,697,942 during the year ended 30 June 2021, however, a non-cash movement on the fair
value of derivatives increased this performance by $5,638,187. These conditions indicate the
existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue
as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
49
Locality Planning Energy Holdings Limited | Annual Report 2021 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
Key Audit Matter
How our audit addressed the key audit matter
1. Going Concern
We focused on this area as a key audit matter
due to:
Our procedures included, amongst others:
History of losses after income tax.
History of cashflow deficits
activities.
from operating
Obtaining cashflow forecasts for the Group.
Reviewing the assumptions in the forecasts for
our
reasonableness
knowledge of the business.
consistency with
and
Our procedures included, amongst others:
Testing key controls within the sales and accounts
receivable process to ensure completeness and
accuracy of sales invoices recorded in the ledger.
procedures
Analytical
unusual
transactions or trends in sales data that may be
indicative of material misstatement.
identify
to
Cut-off procedures to ensure that only sales related
to the 2020-2021 financial year are recorded in
these financial statements.
Detailed recalculation of accrued and unbilled
revenue.
Reviewing the reasonableness of the financing
component allocated by management
the
embedded network revenue.
to
Challenging managements’ assumptions and
estimates in relation to key inputs used in the
calculation of unbilled
revenue accruals and
collectability of sales. These estimates are
summarised
financial
statements.
in Note 2(C)
the
to
2. Recognition and Recording Revenue
We focused on this area as a key audit matter
due to:
The strong growth in sales in recent years
resulting in the need for substantially increased
human and information technology capabilities
and resources to ensure accurate recording.
The estimation and complexity required
in
determining the amount and timing of accrued
but unbilled revenue.
The estimation involved
the
financing component of the embedded network
revenue.
in determining
The complexity of the new billing system used
by the organization.
50
Locality Planning Energy Holdings Limited | Annual Report 2021 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
Key Audit Matter
How our audit addressed the key audit matter
3. Existence and Valuation of Site Conversion Receivables
We focused on this area as a key audit matter
due to:
Our procedures included, amongst others:
The site conversion
receivables balance
contributing towards a significant portion of total
assets as at 30 June 2021.
long-term
Given
the
receivables, subject
impairment.
nature
to a higher
of
these
risk of
Testing contracts of new embedded network
customers during the 2020-2021 financial year to
ensure
the site conversion receivable balance
recognised is appropriately valued and free from
material misstatement.
Testing costs incurred to complete site conversion
works on new embedded network customer
premises, to ensure contracted receivables are not
overstated or deemed uncollectable from date of
recognition.
Confirming new embedded network customer
accounts during 2020-2021 are live and receiving
energy during the period, to ensure existence of
the new customers, existence of
the site
conversion works completed, and consequently
receivables
existence of
recognised in 2020-2021.
the site conversion
embedded
pre-existing
network
Reviewing
customer accounts
the customers
continue to remain live, and that the corresponding
site conversion
to be
collectable.
receivable continues
to ensure
4. Valuation of Financial Derivatives
We focused on this area as a key audit matter
due to:
Our procedures included, amongst others:
The estimation and complexity required
determine the fair value of the derivatives.
to
the contracts
the
Confirming
counterparty to ensure that all derivatives were
included in the model used to calculate the fair
value.
in place with
Testing the formulae included in the model for
accuracy.
Where inputs
into
the fair value model were
observable, agreed to supporting documentation.
Where inputs into the fair value model were not
readily observable, reviewing the reasonableness
of the assumptions.
51
Locality Planning Energy Holdings Limited | Annual Report 2021 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
Key Audit Matter
How our audit addressed the key audit matter
5. Valuation and Recognition of Share Options
We focused on this area as a key audit matter
due to:
Our procedures included, amongst others:
The estimation and complexity required
determine the fair value of the derivatives.
to
Reviewing the Black Scholes model calculations
and assessing the inputs as being reasonable.
Reviewing the journal posted to recognise the
share options
is
appropriate.
to ensure
treatment
the
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 Group's annual report for the year ended 30 June 2021, 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.
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 control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or has no realistic alternative but to do so.
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.
52
Locality Planning Energy Holdings Limited | Annual Report 2021 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
As part of an audit in accordance with Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting
intentional omissions,
fraud may
from error, as
misrepresentations, or the override of internal control.
collusion,
forgery,
involve
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 those charged with governance 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,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
53
Locality Planning Energy Holdings Limited | Annual Report 2021 INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
Report on 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 Locality Planning Energy Holdings 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
Bentleys Brisbane (Audit) Pty Ltd
Chartered Accountants
Ashley Carle
Director
Brisbane
26 August 2021
54
Locality Planning Energy Holdings Limited | Annual Report 2021 Shareholder
Information
Shareholder Information
Additional information required by Australian Securities Exchange (ASX) and not shown elsewhere in
the Annual Report, current as at 13 August 2021, is advised hereunder.
Stock Exchange Quotation
The Company’s shares are quoted on the ASX under the code “LPE”.
Classes of Securities
The Company has the following equity securities on issue:
ASX quoted: 62,884,736 ordinary shares, each fully paid, held by 929 shareholders.
Voting Rights
The voting rights attaching to ordinary shares are set out in Clause 13.13 of the Company’s
Constitution and are summarised as follows:
• each shareholder entitled to vote may vote in person or by proxy, attorney or representative;
• on a show of hands, every person present who is a shareholder or a proxy, attorney or
representative of a shareholder has one vote (even though he or she may represent more than
one shareholder); and
• on a poll, every person present who is a shareholder or a proxy, attorney or representative of
a shareholder shall, in respect of each fully paid share held by him, or in respect of which he is
appointed proxy, attorney or representative, have one vote for the share.
Holders of options have no voting rights until such options are exercised.
Restricted Securities
There are no current restricted securities.
Unmarketable Holders
There are 327 shareholders holding less than a marketable parcel of shares based on the closing
price of $0.25 on 13 August 2021 representing a total of 204,783 shares.
On-market Buy-backs
There is no current on-market buy-back of any securities.
Corporate Governance Statement
The Corporate Governance Statement is available on the Company’s website at
https://localityenergy.com.au/invester-resources-pdf/corporate-governance
Distribution of Security Holders
Distribution of shares and the number of holders by size of holding are:
%
No. of holders
Range
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Securities
52,716,982
8,501,093
780,520
770,066
116,075
83.83
13.52
1.24
1.22
0.18
62,884,736
100.00
56
241
102
262
268
929
%
6.03
25.94
10.98
28.20
28.85
100.00
55
Locality Planning Energy Holdings Limited | Annual Report 2021
Shareholder Information (continued)
Twenty Largest Security Holders
Rank Name
1 Mr Damien Ian Glanville
2
Lumber Co Pty Ltd
3
Pettett Pty Ltd
4
National Nominees Limited
5
Fernsha Pty Limited
6
Jarwill Pty Ltd
7
Bearay Pty Limited
8
Defender Equities Pty Ltd
9 Mr Daryl Lindsay Allen
10 Ginga Pty Ltd
11 Bnp Paribas Nominees Pty Ltd
12 Woodville Super Pty Limited
13 Mr Anthony Bracks
14 Sore Tooth Pty Limited
14
The Genuine Snake Oil Company Pty Ltd
15 Mr Luke Gregory Ross
16 Emerging Equities Pty Ltd
17 Pac Partners Securities Pty Ltd
18 Netwealth Investments Limited
19 M&S Kriticos Smsf Pty Ltd
20 Newport Timber & Trading Pty Ltd
20 Mr Alexander William Pryor
15 Aug 2021 % IC
8,000,000
12.72
7,978,995
12.69
7,295,000
11.60
4,550,000
4,000,000
3,738,003
2,000,000
1,400,000
925,053
911,349
764,368
700,000
636,240
500,000
500,000
456,130
420,000
419,514
417,001
408,106
400,000
400,000
7.24
6.36
5.94
3.18
2.23
1.47
1.45
1.22
1.11
1.01
0.80
0.80
0.73
0.67
0.67
0.66
0.65
0.64
0.64
Total
46,819,759
74.45
Balance of Register
16,064,977
25.55
Grand Total
62,884,736 100.00
Substantial Shareholders
The names of substantial shareholders who have notified the Company in accordance
with section 671B of the Corporations Act are:
Name
Damien Glanville
Lumber Co Pty Ltd
Justin Pettett / Pettett Pty Ltd
EPG Capital Pty Ltd
Fernsha Pty Limited
Jarwill Pty Ltd
No. of Shares
% Voting Power
8,400,995
7,978,995
7,509,102
4,750,000
4,010,000
3,738,003
13.36%
12.69%
11.94%
7.55%
6.38%
5.94%
56
Locality Planning Energy Holdings Limited | Annual Report 2021
Locality Planning Energy Holdings Limited
Level 8
8 Market Lane
Maroochydore
QLD 4558 Australia
1800 040 168
www.localityenergy.com.au
2
Locality Planning Energy Holdings Limited | Annual Report 2021