23 October 2023
Updated FY23 Annual Report
Locality Planning Energy Holdings Limited’s (ASX: LPE) (the Company or LPE) updated 2023 Annual
Report is attached. The only change is the addition of the Shareholder Information as required
by ASX Listing Rule 4.10.
Authorised by Justin Pettett, Chairman.
For further information:
Elissa Hansen
Company Secretary
investors@localityenergy.com.au
1800 040 168
Locality Planning Energy Holdings Ltd (ASX: LPE)
Level 8, 8 Market Lane, Maroochydore BC QLD 4558
ABN 90 147 867 301
Telephone 1800 040 168
joinLPE.com.au
2023 Annual Report
Locality Planning Energy
Holdings Limited
ABN 90 147 867 301
Smarter, Friendlier, Better electricity provider
Contents
Performance Highlights
Chairman’s Letter
CEO’s Report
Operating and Financial Review
Directors’ Report
Remuneration Report (Audited)
Independent Auditor’s Declaration
Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Directory
02
04
06
08
10
12
19
20
48
49
56
59
Locality Planning Energy Holdings Limited 2023 Annual Report
What we do
LPE is an electricity provider to strata communities; leaders in innovation, with
bespoke energy solutions, reducing community carbon footprints and energy
bills with no upfront cost. Predominantly servicing the Queensland energy
market, providing electricity, hot water, solar and battery systems, creating
shareholder value through long term supply agreements that provide strong
recurring revenue.
We are the leader in delivering
embedded electricity networks,
centralised hot water, behind the
meter renewable energy generation,
and EV charging solutions, for
strata communities.
From concept through to delivery
we manage every step, delivering
a hassle-free result making it easy
for the body corporate, with a
transparent and risk-free service.
LPE understand that our customers
have specific needs individual to
them. We believe that together
through our innovative thinking
we can create resilient, sustainable
communities of the future, providing
transparent energy solutions that
are easy and risk free for the
communities we serve.
We achieve this by providing
practical innovative solutions
that adopt the latest renewable
technologies, reducing grid
dependency with behind the meter
generation. We enable smarter and
efficient water heating solutions,
provide better EV charging options
that are easy for the end user and
not onerous on owners. We offer
simple bills that are transparent
and risk free for all stakeholders.
Locality Planning Energy Holdings Limited 2023 Annual Report
01
Performance
Highlights
Improving operating performance in
FY23, especially from the embedded
network business, as the remaining
balance of $7m of the $10m growth
facility is deployed to fund capital
works and acquire existing operations/
billing agents, should facilitate the
transition to profitability in FY24
Due to higher wholesale electricity
costs re-contracted during the
height of the electricity market
crisis and associated bad debt write
offs, exit payments to Blackrock,
and restructuring costs, LPE booked
a net loss of $12.0m for FY23
Significant debt restructuring,
which included financing the
closed hedge position for $17.8m,
enabling all Blackrock related debt
to be extinguished
Plans to exercise the option to
acquire 50% of crypto-miner STAK
Mining were dropped in late 2022
due to volatile crypto market
conditions; LPE is continuing its
discussions with Bundaberg BioHub
to secure repayment of $5.75m
(capital works fund and continuing
to accrue interest) during 1HFY24
Locality Planning Energy Holdings Limited 2023 Annual Report
02
Improving customer traction
facilitated the high value-add
contracted embedded network
business meeting FY23’s
$40m
annualised revenue guidance,
comprising $38.6m in electricity
sales, $0.75m in accrued interest
from the BioHub and $0.65m in
other interest and other items
Successfully acquiring
All Power To You Pty Ltd
(AP2U) in June 2023, boosting
billable customers by circa
4,000
(+14%) to circa 32,000 at year’s
end, allowing LPE to generate
higher customer receipts as
FY24 progresses
Completed strategic transition,
enabling a shift in resources
to focus on
Creating value powering
strata communities
to deliver sustainable results
Locality Planning Energy Holdings Limited 2023 Annual Report
03
Chairman’s
Letter
At the conclusion of FY23, LPE’s core
embedded network business is well
positioned to grow organically and
through selective acquisition.
Justin Pettett
Chairman
Dear Shareholders,
The fiscal year to 30 June 2023 (FY23) represented the
most challenging in our 10-year history, as we successfully
navigated through the wholesale electricity crisis which saw
9 authorised retailers fail. As a result, our operating platform
has been transformed onto more stable foundations focused
on the embedded network business.
Whilst unforeseen external factors adversely impacted
LPE’s business during FY23, we continued to respond
proactively. Through making some decisive strategic calls
in FY22 and executing on those decisions in FY23, the
operating platform was protected. At the conclusion of
FY23, LPE’s core embedded network business is well
positioned to grow organically and through selective
acquisition. Moreover, we will see margin improvement in
FY24, as higher wholesale electricity costs have now been
factored into customer pricing schemes.
Overall, LPE produced a $12m net loss in FY23, attributable
to one-off charges comprising $2.1m to close the Blackrock
credit facility; $2.6m in interest expenses; and $7.3m from
re-contracting electricity pricing schemes for some
embedded network customers during the wholesale
electricity market crisis in June-July 2022.
A key accomplishment during FY23 was successfully
acquiring AP2U for $900,000 in June 2023, as this boosted
the customer base 14% to circa 32,000 and should generate
at least $500,000 in incremental revenues in FY24. More
importantly, many of the newly acquired customers have
long-term service contracts – ranging from 5-to-10 years –
which delivers LPE a high-quality recurrent revenue stream.
A key focus for FY24 is to boost the quality of the customer
base organically and through select acquisitions. As a result
of debt restructuring exercises during FY23 and securing
support from Roadnight Capital, LPE is well funded to
progress expanding the customer base. The Company’s
cash reserves will be further strengthened on settlement
of the Bundaberg BioHub $5.75m in capital works funds.
Locality Planning Energy Holdings Limited 2023 Annual Report
04
FY24 has started on a positive cashflow note, as LPE
received circa $11m from the Queensland government
as a ‘cost-of-living rebate’ which will be credited against
customer accounts as they become due.
On behalf of the Board, our thanks to CEO Damien Glanville
and his management team for steering LPE through some
hazardous times in FY23 relatively unscathed. In addition,
a huge thank you to our amazing staff for their tireless
work effort throughout this intense period and to our
shareholders for ongoing support.
The Board looks forward to delivering a turnaround year in
FY24 and expanding LPE’s customer footprint throughout
Queensland as the preferred provider of electricity and
utilities to strata communities.
A key accomplishment during FY23 was
successfully acquiring AP2U for $900,000,
as this boosted the customer base 14% to
circa 32,000 and should generate at least
$500,000
in incremental revenues in FY24.
Justin Pettett
Chairman
Locality Planning Energy Holdings Limited 2023 Annual Report
05
CEO’s Report
Successfully navigating through
the past two years will serve LPE
well into FY24 and beyond.
Damien Glanville
CEO
Dear Shareholders,
The dislocation in the wholesale energy market, which saw
persistently high energy prices through much of 1HFY23,
resulted in the Company undertaking a wholesale
reorganisation that delivers several key benefits:
• Materially de-risked operating platform that is now
focused on the core embedded network business;
•
Iron clad strategy to grow the customer base, currently
circa 32,000, organically and via select acquisition;
• Robust funding to support expanding the embedded
network business;
• Streamlined cost structure that should enable
a resumption of EBITDA margin expansion as
FY24 progresses; and
• Clear path to profitability in FY24.
Without question, the challenges LPE faced during 1HFY23
managing change were immense, as it comprised exiting the
retail business, while concurrently renegotiating wholesale
energy agreements with embedded network customers.
Retail business exit
Although the decision to exit the retail business was
taken in late FY22, an active off-boarding campaign was
implemented to transition legacy customers to new service
providers. This was an intense process, requiring continuous
follow up communication, that took until 1QFY23 to close out.
At the same time, we had the difficult task of rapidly realigning
the cost structure with a much lower revenue threshold to
avoid material operating losses. Pleasingly, this has now
been completed and all reorganisation related costs have
been factored into FY23’s accounts.
Strengthening core embedded
network business
With many buildings wholesale energy agreements expiring
during FY23, the team had to work extremely hard to protect
the embedded network business from losing customers.
This necessitated a delicate balance of explaining to
customers (committees/corporate managers) face-to-face
that while energy prices had tripled, LPE was prepared to
smooth out the impact in return for agreeing to contract
extensions. This proved to be a win-win strategy as there
was no net erosion in the customer base, while there is
scope in the contracts for LPE to claw back lost margin
in future years.
Locality Planning Energy Holdings Limited 2023 Annual Report
06
The acquisition of All Power 2 You (AP2U), which boosted
the customer base by 4,000 to >32,000 was an excellent
outcome during a tough transitionary period. It demonstrates
that LPE has the foundations in place to grow the business
via acquisition, complementing an already proven ability
to expand organically.
Outlook
Successfully navigating through the past two years will serve
LPE well into FY24 and beyond. The Company’s core focus
is profitably growing the customer base inside strata
complexes, delivering smarter utility services from selling
electricity/hot water systems; providing utility billing services;
and, overall, creating sustainable communities of the future.
My sincere thanks to all of our dedicated LPE team
members, who worked tirelessly to keep the operation
running smoothly during a tough period, and ongoing
support from shareholders. The group is now in a very
strong position to transition to profitability during FY24.
Damien Glanville
CEO
The acquisition of
All Power 2 You (AP2U),
which boosted the
customer base by 4,000
to >32,000 was an excellent
outcome during a tough
transitionary period.
Locality Planning Energy Holdings Limited 2023 Annual Report
07
Operating and
Financial Review
Operating Results
LPE read the market signals correctly during mid-FY22
and, fortunately, was an early mover in making the tough
decision to exit the cash intensive on-market retail business.
More importantly, excellent risk management – through
hedging against rising wholesale electricity prices –
delivered a significant buffer of approximately $6m to aid
LPE’s re-focus back to the core embedded network business.
In line with guidance, the reorganised business platform
delivered revenues of $40m during FY23 comprising
$38.6m in electricity sales, $0.75m in accrued interest
from the BioHub and $0.65m in interest and other items.
The overall loss for FY23 was $12m primarily due to the
Company’s reorganisation and largely explained by
one-off charges including $7.3m for carrying high
wholesale electricity costs through the financial year,
$2.1m to extinguish the Blackrock credit facility and
$2.6m in interest expenses.
As a result of right-sizing the business platform, operating
costs were reduced by a significant 43% in FY23 to $8.2m
(FY22: $14.7m). Notably, there was a material reduction in
head count and associated costs resulting from exiting
the on-market side of the industry to focus on the core
embedded network business. In addition, shelving plans
to move into the crypto arena should see $5m plus $750,000
in accrued interest flow back to LPE from the capital works
funding during FY24 which will further bolster the
Company’s’ cash reserves.
The Board expects LPE to be profitable in FY24, which
would represent a material turnaround compared to
FY23’s performance.
As a result of right-sizing the business
platform, operating costs were reduced
by a significant 43% in FY23 to
$8.2m
(FY22: $14.7m).
Financial Performance Summary
Sales for FY23 were $38.6m, a decrease of 43% on FY22,
due to LPE exiting the on-market retail business. Importantly,
the high costs to service the on-market retail business have
been largely eliminated and operating efficiencies increased.
Drilling down, employee costs were cut 30% now the
current team has been stabilised under the new structure.
Elsewhere, IT and marketing costs were down a significant
65% and 46% respectively, due to the reorganisation.
For FY23, the net loss was primarily due to the requirement
to re-contract electricity for some of LPE’s embedded
network customers, during the height of the wholesale
electricity market crisis in June-July 2022. Due to
significantly higher electricity costs and adverse impact
on parts of the customer base, LPE agreed to subsidise
the higher electricity charges in return for owner groups
extending contract terms up to 10 years. This will enable
LPE to recover the lost margin in subsequent years
commencing in FY24, whilst stabilising the customer base.
LPE closed the fiscal year with $1.5m in cash and cash
equivalents and is well capitalised to fund growing its
operations through FY24.
AP2U acquisition boosts billable
customer base >32,000
During 4QFY23, LPE closed the All Power To You Pty
Ltd (AP2U) acquisition which currently services >4,000
customers located in 44 strata communities throughout
south-east Queensland. Notably, many of the new customers
have long-term service contracts ranging from 5 to 10 years
which delivers LPE a high-quality recurrent revenue stream.
The AP2U acquisition is expected to generate >$500,000
annually and should be earnings enhancing as LPE’s fixed
costs are likely to remain relatively stable throughout FY24.
In addition, bringing AP2U into the mix elevates LPE’s totally
embedded billable customer network by 14% to circa 32,000.
Bundaberg BioHub
The Board has been working with the Bundaberg BioHub
to obtain early repayment of the $5m capital works funds
and accrued interest (originally due to be repaid in October
2023). The repayment was due to be made during Q4FY23
but remains outstanding.
LPE has notified Bundaberg BioHub it has until
30 September 2023 to pay all accrued unpaid interest
and until 31 October 2023 to repay the $5m capital
works funds.
Locality Planning Energy Holdings Limited 2023 Annual Report
08
$10m credit facility to grow embedded
network business
During FY23, LPE secured a $10m credit facility from
funding partner, Roadnight Capital, to expand its embedded
network customer base. The credit facility, which has a
3-year term, has been utilised to install and upgrade strata
communities’ capital works, whether it be switchboard or
metering replacement or upgrades, centralised hot water
systems and/or renewable generation at no upfront cost
to the community, in return for long-term stable
supply contracts.
Incrementally, LPE will continue to pursue acquisition
opportunities (like AP2U) to further expand the embedded
electricity network, centralised hot water customer base
through existing retailers and billing agents looking to exit
the industry or join forces with a well-established ASX-listed
Queensland strata service provider.
Outlook
In FY24, the Board expects further organic and acquisition
driven growth from the core embedded network business.
LPE remains a prominent supplier for Queensland’s strata
communities through offering an innovative product suite
and service to all decision makers and, importantly,
to owners.
Overall, with a stronger operating platform, expanding
customer base, normalising margins due to re-pricing in
line with market and stable costs, the Board is optimistic
LPE can successfully transition to profitability in FY24.
During FY23, LPE
secured a $10m credit
facility from funding
partner, Roadnight
Capital, to expand its
embedded network
customer base.
Locality Planning Energy Holdings Limited 2023 Annual Report
09
Directors’ Report
Your directors submit the financial report of the consolidated entity (referred to hereafter as the Group or Consolidated Entity)
consisting of Locality planning Energy Holdings Limited (referred to hereafter as the Company or LPE) and the entities
controlled at the end of and during the year to 30 June 2023.
Directors and Company Secretary
The names of directors who held office during the year and up to the date of this report are:
Justin Pettett
Non‑Executive Chairman
Justin is a co‑founder of LPE and has over 22 years of ASX company experience having
founded and helped companies from start‑up to take over/acquisition/public‑listing stage.
He has a proven track record in identifying and maximizing business opportunities in the
energy sector having led teams to deliver successful results, working closely with key
stakeholders, investors and industry partners. Justin’s ethos is to support the transition
of fossil fuels to a dependable, renewable form of energy resource for future generations
to come.
Damien Glanville
Managing Director and CEO
Damien has 19 years’ experience in senior management, logistics, and Executive Director
roles. He engineered the business cases for the deployment of the Sunshine Coast
16MW Solar Farm. Damien is co‑founder and architect of the electricity retail model
that successfully enabled LPE to obtain their Australian Energy Regulator Authorisation.
Damien is the CEO of the LPE and the listed responsible person for the management
components of the Australian Energy Regulator Authorisation to retail electricity.
Barnaby Egerton‑Warburton
Non‑Executive Director
Barnaby has over 25 years of trading, investment banking, international investment and
market experience with positions at JP Morgan (New York, Sydney, Hong Kong) BNP Equities
(New York) and Prudential Securities (New York). He is an experienced investment banker
and corporate advisor, having held managing director and non executive director positions
in the investment banking, technology and resource sectors. Mr. Egerton Warburton holds
a degree in economics and is a graduate of the Australian Institute of Company Directors.
Kathryn Giudes
Non‑Executive Director
Kathryn was previously the Senior Director of Xbox Games Marketplace, as well as the
Microsoft Store online where she managed the profit and loss and global expansion in
over 200 geographies, with both having an annual revenue budget in the mid US$1 billion
range. She holds a Bachelor of Science (BSc) in International Marketing from Oregon State
University and Associate of Science (ASc) – Computer Science and Information Systems
from Shoreline Community University. Kathryn is a member of the Australian Institute of
Company Directors.
Locality Planning Energy Holdings Limited 2023 Annual Report
10
Directors’ Report continued
Simon Tilley
Non‑Executive Director
Simon has been working in the hospitality industry for over 30 years. He started his
career in the USA and has been focussing his attention solely on hotels since 1996.
Further, Mr Tilly is a passionate and focused business owner whose knowledge and
experience allows him to continually raise the bar in customer experience.
David Jarjoura
Non‑Executive Director
David has over 30 years of executive and non‑executive board level experience in unlisted
public, commercial and for purpose organisations across the retail, property, manufacturing,
financial, legal, education and disability sectors.
Elissa Hansen
Company Secretary
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.
Director Meetings
Director
Justin Pettett
Damien Glanville
Barnaby
Egerton‑Warburton
Kathryn Giudes
Simon Tilley
David Jarjoura
Board Meetings
Audit and Risk
Committee Meeting
Nomination and Remuneration
Committee Meeting
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
12
12
12
12
2
2
12
12
9
10
1
2
3
–
3
3
–
–
3
–
2
3
–
–
1
–
1
1
–
–
1
–
–
1
–
–
Locality Planning Energy Holdings Limited 2023 Annual Report
11
Remuneration Report (Audited)
The Company is committed to attracting and retaining the best people to work in the organisation, including directors and
senior management. A key element in achieving that objective is to ensure that the Company can appropriately remunerate
its key people.
Remuneration Practices
The Company has established a remuneration committee as a committee of the Board.
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 remuneration 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 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.
At the 2022 Annual General Meeting (AGM), 98.98% of votes received supported the adoption of the remuneration report for the
year ended 30 June 2022. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of the remuneration of key management personnel of LPE are set out in the following tables. The key management
personnel of the Group consisted of the following directors of LPE:
• Justin Pettett, Non‑Executive Chairman
• Damien Glanville, Managing Director and CEO
• Barnaby Egerton‑Warburton, Non‑Executive Director
• Kathryn Giudes, Non‑Executive Director
• Simon Tilley, Non‑Executive Director
• David Jarjoura, Non‑Executive Director
Locality Planning Energy Holdings Limited 2023 Annual Report
12
Remuneration Report (Audited) continued
2023 Remuneration
Directors
Justin Pettett
Damien Glanville
Barnaby Egerton‑Warburton
Kathryn Giudes
Simon Tilley1
David Jarjoura1
Executives
Melissa Farrell2
Total
Short Term
Employee
Benefits
Post
Employment
Benefits
Salary & Fees
$220,000
$442,242
$60,000
$60,000
–
Superan
nuation
–
$25,292
$6,300
–
–
$20,000
$525
$98,565
$900,807
$9,119
$41,236
Long Term
Employment
Benefits
Equity based
Payments
–
$44,973
$20,518
$20,517
–
–
–
–
–
–
–
–
–
–
Total
$240,518
$533,024
$66,300
$60,000
–
$20,525
$107,684
$44,973
$41,035
$1,028,051
Equity‑settled benefits include the full assessed value of the performance rights issued in the year. These performance rights
are at at‑risk, and none have vested by year‑end.
2022 Remuneration
Directors
Justin Pettett
Damien Glanville
Melissa Farrell3
Barnaby Egerton‑Warburton
Kathryn Giudes4
Executives
Toby Mills5
Total
Notes:
Short Term
Employee
Benefits
Post
Employment
Benefits
Salary & Fees
$220,000
$461,774
$318,992
$60,000
$20,000
$221,482
$1,302,248
Superan
nuation
–
$23,568
$23,568
$6,000
–
$22,148
$75,284
Long Term
Employment
Benefits
Equity Based
Payments
–
$8,149
$2,235
–
–
$484
–
–
–
$30,000
–
–
Total
$220,000
$493,491
$344,795
$96,000
$20,000
$244,114
$10,868
$30,000
$1,418,400
1. Appointed 17 May 2023.
2. Resigned as an executive 30 September 2022.
3. Resigned as a director 1 March 2022.
4. Appointed 3 March 2022.
5. Appointed 23 September 2021 and resigned on 1 July 2022.
Locality Planning Energy Holdings Limited 2023 Annual Report
13
Remuneration Report (Audited) continued
Equity Based Compensation
There were no shares or options issued to directors and other key management personnel as part of compensation during
the year ended 30 June 2023.
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of directors and
other key management personnel in this financial year or future reporting years are as follows:
Name
Number
of Rights
granted
Grant Date
Justin Pettett
3,500,000
19 December 2022
Damien Glanville
3,500,000
19 December 2022
Vesting date
and exercisable
date
On achievement
of milestones
On achievement
of milestones
Expiry Date
Share price
hurdle for
vesting
Fair value
per right at
grant date
19 December 2025
$0.15
$0.0367
19 December 2025
$0.15
$0.0367
Performance rights granted carry no dividend or voting rights.
Vesting of Performance Rights is subject to the Director’s continued role with the Company and upon achievement of either
of the following Performance Milestones within the 24‑month period from issue:
•
the volume‑weighted average share price (VWAP) over any 10 consecutive day period (in aggregate) exceeding 15 cents
per share, representing a 150% increase in share price from 22 November 2022; or
• net profit after tax being achieved from operations in any two consecutive 6‑month reporting periods of more than
$1 million combined from and including 1 January 2023 (together the Milestones)
There were no performance rights over ordinary shares granted to or vested by directors and other key management
personnel as part of compensation during the year ended 30 June 2022.
Share Holdings
The number of shares in the Company held during the year ended 30 June 2023 by each director and other key management
personnel of the Consolidated Entity, including their personally related parties, is set out below:
Balance
30 June 2022
Shares
Acquired
Shares
Disposed
Balance
30 June 2023
Directors
Justin Pettett
Damien Glanville
Barnaby Egerton‑Warburton
Kathryn Guides
Simon Tilley1
David Jarjoura1
9,409,102
8,400,995
60,000
–
–
–
9,409,102
8,400,995
60,000
–
21,300,000
200,000
1.
Simon Tilley and David Jarjoura were appointed as directors on 17 May 2023.
Locality Planning Energy Holdings Limited 2023 Annual Report
14
Remuneration Report (Audited) continued
Option Holdings
The number of options over ordinary shares in the Company held during the year ended 30 June 2023 by each director and
other key management personnel of the Consolidated Entity, including their personally related parties, is set out below:
Balance
30 June 2022
Options
Acquired
Options
Disposed
Balance
30 June 2023
Directors
Justin Pettett
Damien Glanville
Barnaby Egerton‑Warburton
Kathryn Guides
Simon Tilley1
David Jarjoura1
1,400,000
0
1,000,000
0
–
–
1,400,000
0
1,000,000
0
0
0
2,400,000
2,400,000
1.
Simon Tilley and David Jarjoura were appointed as directors on 17 May 2023.
Performance Right Holdings
The number of Performance Rights over ordinary shares in the Company held during the year ended 30 June 2023 by
each director and other key management personnel of the Consolidated Entity, including their personally related parties,
is set out below:
Directors
Justin Pettett
Damien Glanville
Barnaby Egerton‑Warburton
Kathryn Guides
Simon Tilley1
David Jarjoura1
Balance
30 June 2022
Performance
Rights
Acquired
Performance
Rights
Disposed
Balance
30 June 2023
0
0
0
0
–
–
3,500,000
3,500,000
3,500,000
3,500,000
0
0
0
0
7,000,000
7,000,000
1.
Simon Tilley and David Jarjoura were appointed as directors on 17 May 2023.
This concludes the remuneration report which has been audited.
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 (NEM).
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 2023 and to the date of this report.
Locality Planning Energy Holdings Limited 2023 Annual Report
15
Directors’ Report continued
Shares under Option
Unissued ordinary shares under option at the date of this report are as follows:
Grant Date
26 October 2023
30 March 2022
Expiry Date
26 October 2023
30 March 2026
Exercise
Price
Number
under option
$0.30
130,833,334
$0.20
1,000,000
131,833,334
No ordinary shares were issued on exercise of options during the year ended 30 June 2023 and up to the date of this report.
Shares under Performance Rights
Unissued ordinary shares under performance rights at the date of this report are as follows:
Grant Date
14 November 2022
19 December 2022
27 March 2023
Expiry Date
1 January 2024
19 December 2025
1 January 2024
Exercise
Price
Number
under option
$0.00
$0.00
$0.00
1,764,081
7,000,000
399,804
9,163,885
2,487,541 ordinary shares were issued on exercise of performance rights during the year ended 30 June 2023.
Review of Activities and Business Strategies
An operating and financial review of the company during the financial year is contained on pages 8 to 9 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.
Locality Planning Energy Holdings Limited 2023 Annual Report
16
Directors’ Report continued
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
There are no 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.
Corporate Governance
A copy of Locality Planning Energy Holdings Limited’s Corporate Governance Statement can be found on the Company’s
website at https://investors.joinlpe.com.au/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.
Locality Planning Energy Holdings Limited 2023 Annual Report
17
Directors’ Report continued
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 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.
following the safety and security directives of management;
Specifically, all employees are responsible for safety in their work area by:
•
• 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 was 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 25th day of August 2023.
Justin Pettett
Chairman
Locality Planning Energy Holdings Limited 2023 Annual Report
18
Independent Auditor’s Declaration
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 2023
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
25 August 2023
Locality Planning Energy Holdings Limited 2023 Annual Report
19
Financial Statements
Contents
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
1. Reporting Entity
2. Basis of Preparation
3. Significant Accounting Policies
4. Segment Reporting
5. Statement of Profit or Loss and Other Comprehensive Income
6.
7.
8.
Income Tax
Trade and Other Receivables
Financial Assets
9. Other Current Assets
10. Non‑Current Financial Assets
11. Plant and Equipment
12. Leasehold Improvements
13.
Intangibles
14. Right‑of‑Use Asset
15. Borrowings
16.
Issued Capital
17. Earnings per share
18. Controlled Entities
19. Commitments
20. Contingent Liabilities and Assets
21. Related Parties
22. Cash Flow Information
23. Financial Instruments
24. Auditors Remuneration
25. Subsequent Events
26. Parent Entity Disclosures
Locality Planning Energy Holdings Limited 2023 Annual Report
21
22
23
24
25
25
25
26
31
32
33
34
35
35
36
36
37
38
38
39
40
41
42
43
43
43
44
45
46
46
47
20
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the year ended 30 June 2023
Electricity revenue
Electricity cost of goods sold
Unrealised gains/(losses) on derivatives
Gain from trading
Other income
Total operating income
Impairment losses
Financing expenses
Other expenses
Profit/(loss) before income taxes
Income tax benefit/(expense)
Net profit/(loss) for the period
Other comprehensive income
Other comprehensive income net of tax
Total comprehensive income for the year
Note
5a
5b
5c
5d
5e
5f
6
2023
$
2022
$
38,582,426
68,600,739
(37,662,193)
(56,854,785)
–
14,314,320
920,233
26,060,274
1,398,439
830,365
2,318,672
26,890,639
(1,033,272)
(2,612,920)
(4,874,815)
(3,449,454)
(8,435,385)
(14,698,318)
(12,024,800)
6,129,947
–
–
(12,024,800)
6,129,947
–
–
–
–
(12,024,800)
6,129,947
Basic earnings per share (dollars per share)
Diluted earnings per share (dollars per share)
17
17
(0.0683)
(0.0683)
0.0572
0.0410
The Consolidated Statement of Profit or Loss and Other Comprehensive income should be read in conjunction
with the Notes to the Financial Statements.
Locality Planning Energy Holdings Limited 2023 Annual Report
21
Consolidated Statement of Financial Position
As at 30 June 2023
Current assets
Cash and cash equivalents
Trade and other receivables
Site conversion receivables
GST receivable
Financial assets
Other current assets
Total current assets
Non‑current assets
Trade and other receivables
Site conversion receivables
Financial assets
Plant and equipment
Leasehold improvements
Intangibles
Right of use assets
Total non‑current assets
TOTAL ASSETS
Current liabilities
Trade and other payables
Employee entitlements – leave provisions
Lease liabilities
Provisions
Borrowings
Total current liabilities
Non‑current liabilities
Employee entitlements – leave provisions
Lease liabilities
Borrowings
Total non‑current liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Issued capital
Share option reserve
Accumulated losses
TOTAL EQUITY
Note
June 2023
$
June 2022
$
22
1,545,946
3,137,913
7
7
8
9
7
7
10
11
12
13
14
10,257,162
27,659,526
1,086,431
1,226,793
94,744
659,297
5,110,000
3,000,000
268,035
445,510
18,362,318
36,129,039
749,208
6,578,316
3,136,193
2,712,974
212,312
230,177
235,259
913,827
472,515
5,212,312
316,241
331,965
81,325
664,472
5,949,491
15,897,605
24,311,809
52,026,644
5,497,474
10,120,105
418,938
292,024
39,694
390,527
255,750
36,085
15
4,981,390
20,025,025
11,229,520
30,827,492
87,871
493,110
15
3,723,670
4,304,651
99,583
785,552
20,201
905,336
15,534,171
31,732,828
8,777,638
20,293,816
16
54,705,664
54,298,849
640,140
811,440
(46,568,166)
(34,816,473)
8,777,638
20,293,816
The Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Financial Statements.
Locality Planning Energy Holdings Limited 2023 Annual Report
22
Consolidated Statement of Cash Flows
For the year ended 30 June 2023
Cash flows from operating activities
Receipts from customers
Receipts from government grants
Payments to suppliers and employees
Interest received
Interest paid
Note
2023
$
2022
$
57,886,327
67,795,250
5,000
9,545
(45,986,599)
(78,796,755)
856,234
692,026
(2,139,880)
(1,892,323)
Net cash provided by/(used in) operating activities
22
10,621,082
(12,192,257)
Cash flows from investing activities
Receipt/(payment) for financial assets
Payment to acquire investments
Payment for plant and equipment
Proceeds from plant and equipment
Payment for leasehold improvements
Payment for intangibles
2,890,000
(2,544,200)
–
(5,000,000)
(23,834)
32,282
–
(900,000)
(54,747)
–
(1,979)
(70,700)
Net cash provided by/(used in) investing activities
1,998,448
(7,671,626)
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
22
22
22
22
–
–
13,832,150
(766,664)
(2,448,595)
(699,355)
20,898,941
6,327,294
(252,559)
(219,797)
(32,409,284)
(1,217,082)
(14,211,497)
17,256,546
(1,591,967)
(2,607,337)
3,137,913
5,745,250
22
1,545,946
3,137,913
The Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Financial Statements.
Locality Planning Energy Holdings Limited 2023 Annual Report
23
Consolidated Statement of Changes in Equity
For the year ended 30 June 2023
Balance at 1 July 2021
Issue of Share Capital
Capital Raising Costs
Issue of Share Capital (Options)
Profit/(Loss) after income tax
Balance at 30 June 2022
Balance at 1 July 2022
Issue of Share Capital
Capital Raising Costs
Expired Share Capital (Options)
Issue of Share Capital (Options)
Profit/(Loss) after income tax
Balance at 30 June 2023
Issued
capital
$
Options
reserve
$
Accumulated
losses
$
Totals
$
41,775,446
13,828,400
(1,304,997)
–
–
273,107
(40,946,420)
1,102,133
–
–
538,333
–
–
–
13,828,400
(1,304,997)
538,333
–
6,129,947
6,129,947
54,298,849
811,440
(34,816,473)
20,293,816
54,298,849
811,440
(34,816,473)
20,293,816
406,815
–
–
–
–
–
–
–
–
(273,107)
273,107
406,815
–
–
101,807
–
101,807
–
(12,024,800)
(12,024,800)
54,705,664
640,140
(46,568,166)
8,777,638
The Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the Financial Statements.
Locality Planning Energy Holdings Limited 2023 Annual Report
24
Notes to the Financial Statements
For the year ended 30 June 2023
1. Reporting Entity
The financial statements of Locality Planning Energy Holdings Limited (“the Company”) for the year ended 30 June 2023
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 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.
Locality Planning Energy Holdings Limited 2023 Annual Report
25
Notes to the Financial Statements continued
2. Basis of Preparation continued
(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
made a net loss after income tax for the year ended 30 June 2023 of $12,024,800 (2022 net profit: $6,129,947), and had
net assets of $8,777,638 (2022: $20,293,816). Although net cash inflow from operations for the year was $10,621,082
(2022 net outflow: $12,192,257), $15,915,650 was the cash inflow from the closing of the derivative position in FY22.
Without the derivative receivable inflow, the net operating outflow would have been $5,294,568. These factors, prima facie,
indicated that there is material uncertainty on whether the Group will continue as a going concern.
The Group has $1.5 million in unrestricted cash at 30 June 2023, and $7 million available in an undrawn funding facility
($10 million total facility less $3 million drawndown). Additionally, approximately $7.2 million of the FY22 loss involved
subsidising the wholesale cost of energy for many customers. In return for subsidising the cost of goods, profitable customer
contracts have been extended and this shortfall will be recovered in the coming years. The $16 million received during FY23
from the closing of the derivative position is repaying borrowings. 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 2023 (“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.
(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.
Locality Planning Energy Holdings Limited 2023 Annual Report
26
Notes to the Financial Statements continued
3. Significant Accounting Policies continued
(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
Plant and equipment
Motor Vehicles
Depreciation Rate & Method
10‑50% per annum straight line or diminishing value
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.
(e) Leasehold 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 liabilities 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.
Locality Planning Energy Holdings Limited 2023 Annual Report
27
Notes to the Financial Statements continued
3. Significant Accounting Policies continued
(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.
(k) Revenue
Revenue for the Group can be categorised as follows:
• Supply of electricity; and
• 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.
Locality Planning Energy Holdings Limited 2023 Annual Report
28
Notes to the Financial Statements continued
3. Significant Accounting Policies continued
(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.
(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:
•
• variable lease payments that depend on an index or rate, initially measured using the index or rate at the
fixed lease payments less any lease incentives;
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
(i.e. 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.
Locality Planning Energy Holdings Limited 2023 Annual Report
29
Notes to the Financial Statements continued
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
•
All other financial liabilities are subsequently measured at amortised cost using the effective interest method.
Initially designated at fair value through profit or loss.
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; and
• The business model for managing the financial assets comprises both contractual cashflows and the selling of the
financial asset.
Locality Planning Energy Holdings Limited 2023 Annual Report
30
Notes to the Financial Statements continued
3. Significant Accounting Policies continued
(p) Financial Instruments continued
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.
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 (i.e. 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 assets’:
• 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 2023 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.
Locality Planning Energy Holdings Limited 2023 Annual Report
31
Notes to the Financial Statements continued
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/(decrease) 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
Loss on disposal of assets
Information technology
Insurance
Marketing and advertising
Occupancy expenses
Other expenses
Professional costs
Total Other Expenses
Consolidated Entity
2023
$
2022
$
37,360,472
66,712,172
1,221,954
1,888,567
38,582,426
68,600,739
24,653,382
16,838,093
7,757,742
29,373,948
4,114,619
8,926,987
1,136,450
1,715,757
37,662,193
56,854,785
1,393,439
820,820
5,000
9,545
1,398,439
830,365
1,205,588
702,322
(172,316)
1,910,598
1,033,272
2,612,920
2,774,143
1,557,131
91,182
110,287
2,009,490
1,782,036
4,874,815
3,449,454
104,571
407,864
193,096
490,104
5,175,671
7,351,997
48,637
141,793
872,922
2,556,628
88,440
369,686
94,830
796,972
475,792
95,083
691,146
57,298
2,527,268
593,905
8,435,385
14,698,318
Locality Planning Energy Holdings Limited 2023 Annual Report
32
Notes to the Financial Statements continued
6. Income Tax
Components of tax expense/(benefit) comprise:
Current tax
Prior year tax
Deferred tax
Income tax expense/(benefit)
Consolidated Entity
2023
$
2022
$
–
–
–
–
–
–
–
–
Numerical reconciliation of income tax benefit to prima facie tax payable
Profit/(loss) from operations before tax for the year
(12,024,800)
6,129,947
The prima facie income tax benefit on loss before income tax at a tax rate of 30%
(2022: 30%)
(3,607,440)
1,838,984
Tax effect amounts which are not (deductible)/taxable in calculating taxable income:
65,621
1,163
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
3,541,819
(1,840,147)
–
–
100,683
(126,975)
6,615,205
3,328,054
6,715,888
3,201,079
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.
Locality Planning Energy Holdings Limited 2023 Annual Report
33
Notes to the Financial Statements continued
7. Trade and Other Receivables
Current Trade and Other Receivables
Trade receivables
Trade receivables expected credit losses
Hedging Counterparty receivables
Interest receivables
Non Current Trade and Other Receivables
Hedging Counterparty receivables
Current Site Conversion Receivables
Site conversion receivables
Site conversion receivables expected credit losses
Non Current Site Conversion Receivables
Site conversion receivables
Site conversion receivables expected credit losses
Consolidated Entity
2023
$
2022
$
5,160,741
8,248,449
(1,206,179)
(1,249,969)
5,547,828
20,531,835
754,772
129,211
10,257,162
27,659,526
749,208
749,208
6,578,316
6,578,316
1,125,367
1,404,172
(38,936)
(177,379)
1,086,431
1,226,793
3,336,110
3,938,696
(199,917)
(1,225,722)
3,136,193
2,712,974
Current trade receivables are not interest bearing and are generally receivable within 14 days.
The Group closed all financial derivative positions during the previous financial year, therefore the Hedging Counterparty
receivables reflects the cash receivable from these closed positions.
Lifetime Expected Credit Loss: Credit Impaired
Current trade receivables
Current interest receivables
Current site conversion receivables
Non‑Current site conversion receivables
Lifetime Expected Credit Loss: Credit Impaired
Current trade receivables
Current interest receivables
Current site conversion receivables
Non‑Current site conversion receivables
Opening
Balance
1 July 2021
Net
Measurement
of loss
allowance
Closing
Balance
30 June 2022
Amounts
written off
163,911
1,086,058
1,249,969
702,322
–
68,499
510,062
742,472
–
108,880
715,660
1,910,598
–
177,379
1,225,722
2,653,070
–
–
–
702,322
Opening
Balance
1 July 2022
Net
Measurement
of loss
allowance
Closing
Balance
30 June 2023
Amounts
written off
1,249,969
(43,790)
1,206,179
1,205,588
–
–
177,379
(138,443)
1,225,722
(1,025,805)
–
38,936
199,917
–
–
–
2,653,070
(1,208,038)
1,445,032
1,205,588
The entity does not hold any financial assets whose terms have been renegotiated, but which would otherwise be past due
or impaired.
Locality Planning Energy Holdings Limited 2023 Annual Report
34
Notes to the Financial Statements continued
7. Trade and Other Receivables continued
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.
8. Financial Assets
At Amortised Cost
Term deposits
Investments
Consolidated Entity
2023
$
2022
$
110,000
3,000,000
5,000,000
–
5,110,000
3,000,000
LPE has entered into an agreement with Bundaberg BioHub Pty Ltd (BBH) and Stak Mining Pty Ltd (STAK) whereby LPE has
funded $5 million in capital works (Capital Works Fund) to facilitate the construction of the Bundaberg BioHub. The Capital
Works Funds principal is expected to be repaid to the Company in October 2023. LPE will receive a 15% per annum margin
on the Capital Works Funds, which was due to be paid quarterly, but has been re‑negotiated to be paid in September 2023
(and recognised at Note 7 within interest receivable). This re‑negotiated date was to align with BBH obtaining financing
for further capital works.
The Capital Works Fund and interest payable is secured by a second mortgage over the property owned by BBH in Bundaberg
East, and a general security over all the present and after‑acquired personal and other property of the BBH. Given the existence
of this security, the directors are of the opinion that this investment plus the related interest receivable is recoverable.
9. Other Current Assets
Prepayments
Environmental certificates
Inventory
Environmental Certificates
Consolidated Entity
2023
$
96,756
2,434
168,845
268,035
2022
$
154,655
–
290,855
445,510
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.
Locality Planning Energy Holdings Limited 2023 Annual Report
35
Notes to the Financial Statements continued
10. Non‑Current Financial Assets
At Amortised Cost
Term deposits
Investments
Term Deposits
Consolidated Entity
2023
$
2022
$
212,312
212,312
–
5,000,000
212,312
5,212,312
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.
Office Lease
11. Plant and Equipment
Plant and equipment at cost
Accumulated depreciation
Motor vehicles at cost
Accumulated depreciation
Consolidated Entity
2023
$
212,312
212,312
2022
$
212,312
212,312
Consolidated Entity
2023
$
2022
$
396,112
391,588
(240,425)
(184,807)
155,687
206,781
189,979
222,772
(115,489)
(113,312)
74,490
230,177
109,460
316,241
Locality Planning Energy Holdings Limited 2023 Annual Report
36
Notes to the Financial Statements continued
11. Plant and Equipment continued
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
Consolidated Entity
2023
$
206,781
17,226
(60,007)
(8,313)
155,687
2022
$
268,694
91,065
(101,519)
(51,459)
206,781
Consolidated Entity
2023
$
2022
$
109,460
210,884
6,608
(23,945)
(17,633)
74,490
–
(52,721)
(48,703)
109,460
Consolidated Entity
2023
$
484,273
(249,014)
235,259
2022
$
484,273
(152,308)
331,965
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
Consolidated Entity
2023
$
331,965
–
(96,706)
–
2022
$
426,609
1,979
(96,623)
–
235,259
331,965
Locality Planning Energy Holdings Limited 2023 Annual Report
37
Notes to the Financial Statements continued
13. Intangibles
Intangibles at cost
Intangibles work in progress
Accumulated amortisation
Reconciliation
Consolidated Entity
2023
$
2022
$
1,108,419
331,464
28,850
–
(223,442)
(250,139)
913,827
81,325
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
Consolidated Entity
2023
$
81,325
922,725
35,249
2022
$
210,058
31,700
(49,620)
(125,472)
(110,813)
913,827
81,325
Consolidated Entity
2023
$
2022
$
959,452
959,452
(486,937)
(294,980)
472,515
664,472
Locality Planning Energy Holdings Limited 2023 Annual Report
38
Notes to the Financial Statements continued
14. Right‑of‑Use Asset continued
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
Balance at the end of the year
15. Borrowings
Current
Insurance financing
Motor vehicle financing
Financing
Blackrock funding facility
Roadnight hedge facility
Non‑current
Motor vehicle financing
Roadnight hedge facility
Roadnight growth facility
Consolidated Entity
2023
$
664,472
–
2022
$
823,408
30,685
(191,957)
(189,621)
472,515
664,472
Consolidated Entity
2023
$
2022
$
–
20,201
43,827
38,049
–
–
2,000,000
17,943,149
4,961,189
–
4,981,390
20,025,025
–
20,201
712,001
3,011,669
3,723,670
–
–
20,201
The Group has two funding facilities from Roadnight Capital. The first is the hedge facility of $5.8 million whereby the future
cash flows from the closing of the hedge facility in June 2022 was received upfront and utilised to payout the Blackrock
facility. The future hedging counterparty receivables will be used to pay down this debt. The second is a growth facility of
$10 million ($3.1 million utilised) to fund site conversions and acquisitions. Both of these facilities are presented above net
of borrowing costs.
Locality Planning Energy Holdings Limited 2023 Annual Report
39
Notes to the Financial Statements continued
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 2022
Issued 28 September 2022
Issued 7 December 2022
Balance at 30 June 2023
Ordinary shares
2023
Number
2022
Number
178,156,277
171,168,736
Number
$
171,168,736
54,298,849
4,500,000
2,487,541
270,000
136,815
178,156,277
54,705,664
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held.
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
Unlisted Options
Expiry
Opening
Number
Issued
Vested/
Lapsed
Closing
Number
Issued 11/11/20 EX $0.375
21/10/22
3,400,000
Issued 6/4/22 EX $0.20
30/3/26
1,000,000
–
–
(3,400,000)
–
–
1,000,000
1/12/23
19/12/24
1/12/23
–
–
–
4,491,749
(2,727,668)
1,764,081
7,000,000
399,804
–
–
7,000,000
399,804
4,400,000
11,891,553
(6,127,668)
10,163,885
131,807
$
–
30,000
53,693
41,035
7,079
Issued 17/11/22
Issued 19/12/22
Issued 27/03/23
Listed Options:
Issued 26/10/21 EX $0.30
26/10/23
15,000,000
Issued 26/10/21 EX $0.30
26/10/23
3,333,334
Issued 06/04/22 EX $0.30
26/10/23
75,000,000
Issued 06/04/22 EX $0.30
26/10/23
37,500,000
Balance at 30 June 2023
130,833,334
–
–
–
–
–
–
–
–
–
15,000,000
–
3,333,334
133,333
75,000,000
37,500,000
– 130,833,334
–
375,000
508,333
Locality Planning Energy Holdings Limited 2023 Annual Report
40
Notes to the Financial Statements continued
16. Issued Capital continued
(c) Share options continued
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 for all tranches except the 19/12/22 tranch whereby the
Monte‑Carlo simulation was deemed more appropriate due to the conditions imposed on these performance rights.
Some inputs require the application of judgement. The assumptions are set out below:
Unlisted Options:
Volatility
Risk‑free interest rate
Expected life of share options (years)
Dividend Yield
Listed Options:
Volatility
Risk‑free interest rate
Expected life of share options (years)
Dividend Yield
6/4/22
17/11/22
19/12/22*
27/3/22
82.0%
2.10%
4.00
0.00%
87.0%
3.20%
1.00
0.00%
66.0%
3.20%
2.00
0.00%
26/10/21
80.00%
0.16%
2.00
0.00%
87.0%
2.80%
0.70
0.00%
6/4/22
82.00%
2.10%
1.60
0.00%
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 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.
17. Earnings per share
Weighted average number of shares used as the denominator in calculating basic and diluted earnings per share
Basic
Diluted
Net profit/(loss) after tax used in calculating basic earnings per share
Basic earnings per share (dollars per share)
Net profit/(loss) after tax used in calculating diluted earnings per share
Diluted earnings per share (dollars per share)
2023
Number
2022
Number
175,956,259
107,076,998
175,956,259
149,314,898
2023
$
2022
$
(12,024,800)
6,129,947
(0.0683)
0.0572
(12,024,800)
6,129,947
(0.0683)
0.0410
Locality Planning Energy Holdings Limited 2023 Annual Report
41
Notes to the Financial Statements continued
18. Controlled Entities
Investment in controlled entities
Country of incorporation
Locality Planning Energy Pty Ltd
All Power to You Pty Ltd
Locality Embedded Networks Pty Ltd
LPE Generate Pty Ltd
Australia
Australia
Australia
Australia
Class of
shares
% of
ownership
2023
% of
ownership
2022
Ord
Ord
Ord
Ord
100%
100%
100%
100%
100%
0%
100%
100%
Business Acquisition
On 1 June 2023, Locality Planning Energy Pty Ltd acquired 100% of the shares of All Power to You (AP2U), a utility
management company with circa 4,000 customers for $900,000. This was purchased to acquire the customer contracts
in place, which was not recognised in the statement of Financial Position at acquisition date.
The Company applied the concentration test and deemed it be a reasonable assessment for the portfolio of contracts be
deemed “a group of similar identifiable assets” and as such treated the acquisition as an asset purchase and therefore
business combination accounting has not been applied.
Current assets
Cash and cash equivalents
Trade and other receivables
Total Assets
Current Liabilities
Trade and other payables
Total Liabilities
Net Assets
Retained Earnings
Total Equity
All Power To You Pty Ltd
Statement of
Financial Position
as at 1 June 2023
18,045
2,810
20,855
14,706
14,706
6,149
6,149
6,149
Locality Planning Energy Holdings Limited 2023 Annual Report
42
Notes to the Financial Statements continued
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 (2022: nil).
21. Related Parties
Key management personnel compensation
Short‑term employee benefits
Post‑employment benefits
Long‑term benefits
Share based payments
2023
$
2022
$
900,807
1,302,248
41,236
44,973
41,035
75,284
10,868
30,000
1,028,051
1,418,400
Other related party transactions
Director Kathryn Giudes is a director of STAK Mining Pty Ltd (refer to note 8).
David Jarjoura received an observer fee prior to appointment included in the short‑term employee benefits above.
There were no other related party transactions.
Locality Planning Energy Holdings Limited 2023 Annual Report
43
Notes to the Financial Statements continued
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
Non‑cash share based payments
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
Decrease/(increase) in receivables
Decrease/(increase) in other assets
(Decrease)/increase in creditors and payables
Increase in employee entitlements
Net cash used in operating activities
Reconciliation of liabilities arising from financing activities
Borrowings
Opening balance
Non‑cash changes
Cashflow
Closing balance
Lease Liabilities
Opening balance
Non‑cash changes
Cashflow
Closing balance
Cash and cash equivalents in the Consolidated Statement of Cash Flows include:
Cash at bank
Cash on deposit
Restricted cash**
Consolidated Entity
2023
$
2022
$
(12,024,800)
6,129,947
407,864
238,622
48,637
54,974
490,104
–
141,793
69,182
–
(14,314,320)
161,377
109,510
(11,113,326)
(7,373,784)
26,162,865
(1,900,786)
177,475
(4,118,511)
(4,622,631)
1,108,530
16,699
92,294
10,621,082
(12,192,257)
20,045,226
14,262,042
2,618,772
1,372,327
(13,958,938)
4,410,857
8,705,060
20,045,226
1,041,302
1,233,695
(3,609)
27,404
(252,559)
(219,797)
785,134
1,041,302
1,542,196
3,134,163
–
3,750
–
3,750
1,545,946
3,137,913
** Restricted cash represents $3,750 that the Company is holding as a deposit from CPS Capital for Broker Options.
Locality Planning Energy Holdings Limited 2023 Annual Report
44
Notes to the Financial Statements continued
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, 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 minimises wholesale price
risk by using fixed price contracts where possible.
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, and borrowings. The following
table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant,
on 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 1% in interest rates.
It is the policy of the Consolidated Entity to manage their risks by continuously monitoring interest rates.
Cash and cash equivalents
Borrowings
Sensitivity
Effect on profit or loss before taxes
Increase 1%
Decrease 1%
Liquidity risk management
Consolidated Entity
2023
$
2022
$
1,545,946
3,137,913
(8,705,060)
(20,045,226)
(7,159,114)
(16,907,313)
(71,591)
(169,073)
71,591
169,073
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 reserves and by continually monitoring forecast and actual
cash flows and cash balances.
At 30 June 2023 current assets exceed current liabilities by $7,132,798 (2022: current assets exceeded current liabilities by
$5,301,547). Financial liabilities comprised trade payables, accruals and other payables. All trade payables and accruals have
a contractual maturity of 6 months or less.
Locality Planning Energy Holdings Limited 2023 Annual Report
45
Notes to the Financial Statements continued
23. Financial Instruments continued
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, term deposits,
outstanding receivables and financial assets. 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 and cash equivalents and term deposits 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, 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
2023
$
75,311
3,600
78,911
2022
$
90,679
5,250
95,929
25. Subsequent Events
There are no matters or circumstances that have arisen since the end of the year which have 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.
Locality Planning Energy Holdings Limited 2023 Annual Report
46
Notes to the Financial Statements continued
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.
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
Non 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
Contingent liabilities
2023
$
2022
$
(5,070,592)
(4,043,914)
–
–
(5,070,592)
(4,043,914)
–
–
(5,070,592)
(4,043,914)
20,785,112
31,843,644
–
5,000,000
20,785,112
36,843,644
5,130,459
20,350,691
3,723,670
–
8,854,129
20,350,691
11,930,983
16,492,953
54,705,664
54,298,849
640,140
811,440
(43,414,821)
(38,617,336)
11,930,983
16,492,953
As at 30 June 2023, Locality Planning Energy Holdings Ltd is not aware of any contingent liabilities (2022: $Nil).
Contractual commitments
At 30 June 2023, contractual commitments entered into by Locality Planning Energy Holdings Ltd is $Nil (2022: $Nil).
Guarantees
Locality Planning Energy Holdings Ltd has not entered into any guarantees, in the current or previous financial years,
in relation to debts of its subsidiaries.
Locality Planning Energy Holdings Limited 2023 Annual Report
47
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 2023 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 Financial Controller 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
Chairman
Dated: 25 August 2023
Locality Planning Energy Holdings Limited 2023 Annual Report
48
Independent Auditor’s Report
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 2023 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 2023
and of its performance for the year then ended; and
complying with Australian Accounting Standards and
Regulations 2001.
the Corporations
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 confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of the Group, would be in the same terms if given to the
directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
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 made a net loss after income tax of $12,024,800 and without a
$15,915,650 inflow from closing of the derivatives position, cashflows from operating activities
would have been an outflow of $5,294,568. 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. Therefore, the Group may be unable to realise its assets and discharge its
liabilities in the normal course of business and at the amounts stated in the financial report.
Our opinion is not modified in respect of this matter.
Locality Planning Energy Holdings Limited 2023 Annual Report
49
Independent Auditor’s Report continued
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
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.
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:
Obtaining cashflow forecasts for the Group.
History of losses after income tax.
History of cashflow deficits from operating
activities.
Reviewing the assumptions in the forecasts for
reasonableness and consistency with our
knowledge of the business.
2. Recoverability of Bundaberg Biohub
Pty Ltd (“BBH”) Investment
We focused on this area as a key audit matter
due to:
The investment contributes to a significant
portion of total current assets and total assets
at 30 June 2023.
Interest payments due were renegotiated
during the year.
Our procedures included, amongst others:
Reviewed the renegotiated terms, and the
mortgage and general security deed entered
into during the year.
Performed
title searches
the
existence of the mortgaged properties and the
registration of the mortgage.
to confirm
Obtained information on the value of the
mortgaged properties and secured assets.
Reviewed correspondence between
the
Group the BBH management on the latest
developments at BBH
Locality Planning Energy Holdings Limited 2023 Annual Report
50
Independent Auditor’s Report continued
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
Key Audit Matter
How our audit addressed the key audit matter
How our audit addressed the key audit matter
3. Recognition and Recording Revenue
We focused on this area as a key audit matter due
to:
Large volume of customers.
The estimation and complexity required in
determining the amount and timing of accrued
but unbilled revenue.
The estimation involved in determining the
financing component of the embedded network
revenue.
The complexity of the billing system used by the
organisation.
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.
Analytical
procedures
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 2022-2023 financial year are recorded in
these financial statements.
Detailed recalculation of accrued and unbilled
revenue.
Reviewing the reasonableness of the financing
the
component allocated by management
embedded network revenue.
to
Challenging managements’ assumptions and
estimates in relation to key inputs used in the
revenue accruals and
calculation of unbilled
collectability of sales. These estimates are
summarised
financial
statements.
in Note 2(C)
the
to
4. Valuation and Existence of Hedging Counterparty Receivables
We focused on this area as a key audit matter due
to:
Our procedures included, amongst others:
The hedging counterparty receivables balance
contributing towards a significant portion of total
assets as at 30 June 2023
The receipt of these funds being a significant
assumption in the cashflow forecasts of the
company and its going concern assessment
Recalculating the receivable by reference to the
initial trade confirmations.
Sighted recalculation performed by an independent
third party
Agreeing receipts expected during the year and post
year-end to actual receipts.
Locality Planning Energy Holdings Limited 2023 Annual Report
51
Independent Auditor’s Report continued
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. 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 2023.
Given the long-term nature of these receivables,
subject to a higher risk of impairment.
Testing contracts of new embedded network
customers during the 2022-2023 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 2022-2023 are live and receiving
energy during the period, to ensure existence of the
new customers, existence of the site conversion
works completed, and consequently existence of the
site conversion receivables recognised in 2022-
2023.
Reviewing
embedded
pre-existing
network
customer accounts
the customers
continue to remain live, and that the corresponding
site conversion
to be
collectable.
receivable continues
to ensure
6. 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 to
determine the fair value of the share options.
Reviewing the models used to calculate the fair
value and assessing the inputs as being reasonable.
Reviewing the journal posted to recognise the share
options to ensure the treatment is appropriate.
Locality Planning Energy Holdings Limited 2023 Annual Report
52
Independent Auditor’s Report continued
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
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 2023, 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.
Locality Planning Energy Holdings Limited 2023 Annual Report
53
Independent Auditor’s Report continued
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 from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the 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.
Locality Planning Energy Holdings Limited 2023 Annual Report
54
Independent Auditor’s Report continued
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LOCALITY PLANNING ENERGY HOLDINGS LIMITED
From the matters communicated with the directors, we determine those matters that were of
most significance in the audit of the financial report of the current period and are therefore the
key audit matters. We describe these matters in our auditor's report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended
30 June 2023.
In our opinion, the Remuneration Report of Locality Planning Energy Holdings Limited, for the
year ended 30 June 2023, 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
25 August 2023
Locality Planning Energy Holdings Limited 2023 Annual Report
55
Shareholder Information
Shareholder Information
Additional information required by Australian Securities Exchange (ASX) and not shown elsewhere in the Annual Report,
current as at 20 October 2023, 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: 178,156,277 ordinary shares (LPE), each fully paid, held by 996 shareholders;
• ASX quoted: 130,833,334 options exercisable at $0.30 and expiring 26 October 2023 (LPEO), held by 255 holders;
• Unlisted: 1,000,000 options exercisable at $0.20 and expiring 30th March 2026, held by 1 holder; and
• Unlisted: 9,503,125 Employee Performance Rights held by 39 employees.
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 513 shareholders holding less than a marketable parcel of shares based on the closing price of $0.045 on
20 October 2023 representing a total of 1,384,397 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://investors.joinlpe.com.au/corporate‑governance/
Locality Planning Energy Holdings Limited 2023 Annual Report
56
Shareholder Information continued
Distribution of Security Holders
Distribution of shares and the number of holders by size of holding are:
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
Unmarketable Parcels
Securities
164,806,000
12,039,693
622,671
592,826
95,087
%
92.51
6.76
0.35
0.33
0.05
178,156,277
100.00
1,384,397
0.78
No. of
holders
182
294
82
197
241
996
527
Twenty Largest Shareholders (LPE)
Rank
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
FERNSHA PTY LIMITED
MR STANISLAV MICHAEL KOLENC
PETTETT PTY LTD
CITICORP NOMINEES PTY LIMITED
MR DAMIEN IAN GLANVILLE
NATIONAL NOMINEES LIMITED
FPMC PROPERTY PTY LTD
BEARAY PTY LIMITED
MR LESLIE PETER WOZNICZKA
MR MOHENDRA MOODLEY
JARWILL PTY LTD
BRIO CAPITAL MASTER FUND LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
PROFESSIONAL PAYMENT SERVICES PTY LTD
SAHO NOMINEES PTY LTD
MR DUNCAN WILLIAM JONES
MR SAM APPLETON
PACIFIC CUSTODIANS PTY LIMITED
SANDHURST TRUSTEES LTD
MS ANA MARIA CHAVES
Total
Balance of register
Grand total
%
18.27
29.52
8.23
19.78
24.20
100.00
52.91
%IC
11.23
7.16
5.02
4.69
4.49
4.24
3.03
2.64
2.54
2.53
2.10
2.02
1.96
1.65
1.33
1.12
1.12
0.94
0.84
0.84
61.48
38.52
20 Oct 2023
20,000,000
12,762,587
8,945,000
8,360,036
8,000,000
7,550,000
5,395,936
4,700,000
4,518,502
4,500,000
3,738,003
3,600,000
3,488,831
2,936,000
2,366,244
2,000,000
1,997,655
1,673,372
1,499,282
1,498,295
109,529,743
68,626,534
178,156,277
100.00
Locality Planning Energy Holdings Limited 2023 Annual Report
57
Shareholder Information continued
Substantial Shareholders
The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations
Act are:
Name
Mr. Simon Tilley
Fernsha Pty Limited
Stan Kolenc
Pettett Pty Limited
Twenty Largest Optionholders (LPEO)
Rank
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CELTIC CAPITAL PTY LTD
KUBERA CAPITAL PTY LTD
SANDTON CAPITAL PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED ‑ A/C 2
MRS SHARON LANA GILES
MS CHUNYAN NIU
SUNSET CAPITAL MANAGEMENT PTY LTD
BRIO CAPITAL MASTER FUND LTD
MS SIHOL MARITO GULTOM
MR PETER ANDREW PROKSA
BEARAY PTY LIMITED
THE TRUST COMPANY (AUSTRALIA) LIMITED
FERNSHA PTY LIMITED
NEWPORT TIMBER & TRADING PTY LTD
AUKERA CAPITAL PTY LTD
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
MR PETER ANDREW PROKSA
JINDABYNE CAPITAL PTY LTD
FRESH EQUITIES PTY LTD
MR ANANDA KATHIRAVELU
Total
Balance of register
Grand total
Number of
Shares
21,300,000
20,000,000
12,835,901
8,945,000
Voting Power
11.96%
11.23%
7.20%
5.02%
20 Oct 2023
11,662,875
8,600,000
8,150,000
5,700,000
4,678,081
4,568,528
3,924,082
3,600,000
3,094,950
3,000,000
2,700,000
2,471,845
2,045,000
2,012,500
2,000,000
1,900,000
1,827,411
1,800,000
1,666,667
1,500,000
%IC
8.91
6.57
6.23
4.36
3.58
3.49
3.00
2.75
2.37
2.29
2.06
1.89
1.56
1.54
1.53
1.45
1.40
1.38
1.27
1.15
76,901,939
53,931,395
58.78
41.22
130,833,334
100.00
Locality Planning Energy Holdings Limited 2023 Annual Report
58
Corporate Directory
Non‑Executive Chairman
Mr Justin Pettett
Non‑Executive Directors
Mrs Kathryn Giudes
Mr Barnaby Egerton‑Warburton
Mr Simon Tilley
Mr David Jarjoura
Executive Director
Mr Damien Glanville
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
Holding Redlich
Level 1, 300 Queen Street
Brisbane, QLD 4000
Phone +61 7 3135 0500
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
colliercreative.com.au #LPE0009
Locality Planning Energy Holdings Limited 2023 Annual Report
59
localityenergy.com.au