MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Corporate Information
Money3 Corporation Limited is a company incorporated and domiciled in Australia.
Company Directors
Geoffrey Joseph Sam OAM, B.Comm MHA MA (Econ & Soc Stud) FAICD FACHSE
Non Executive Chairman (from 24 August 2010)
Bettina Evert BA LLB MAICD
Non Executive Director (from 28 February 2006)
Robert James Bryant
Executive Director (from 25 November 2005)
Kang Hong Tan ACA(UK) FIPA (Aust)
Non Executive Director (from 25 November 2005)
Christopher James Baldwin CPA
Non Executive Director (from 25 November 2005)
Scott Joseph Baldwin B.Eng (Hons) MBA
Executive Director (from 13 January 2009)
Chief Executive Officer
Robert James Bryant (from 4 April 2008)
Company Secretary
Craig Alan Harris (from 17 September 2010)
Head Office
Level 1, Graduate Road
Bundoora Victoria 3083
Telephone 03 9093 8255 Facsimile 03 9093 8227
Registered Office
Level 1, 48 High Street
Northcote Victoria 3070
Share Registry
Link Market Services Limited
Level 1, 333 Collins Street
Melbourne Victoria 3000
Solicitors
Foster Nicholson Legal Pty Ltd
Level 6, 406 Collins Street
Melbourne Victoria 3000
Auditors
BDO East Coast Partnership
Level 14, 140 William Street
Melbourne Victoria 3000
Bankers
Westpac Banking Corporation
360 Collins Street
Melbourne Victoria 3000
Stock Exchange Listing
Money3 Corporation Limited shares are listed on the Australian Securities Exchange (ASX code MNY)
Website
www.money3.com.au
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Contents
CEO and Chairman’s Report ................................................................................................................ 1
Corporate Governance Statement ...................................................................................................... 4
Directors' Report ...............................................................................................................................10
Auditor’s Independence Declaration ................................................................................................19
BDO Independent Auditors Report ...................................................................................................20
Directors' Declaration .......................................................................................................................21
Statement of Profit or Loss and Other Comprehensive Income .......................................................22
Statement of Financial Position ........................................................................................................23
Statement of Changes in Equity ........................................................................................................24
Statement of Cash Flows ...................................................................................................................25
Notes to the financial statements .....................................................................................................26
A. ASX Additional Information ..........................................................................................................67
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
CEO and Chairman’s Report
On behalf of the board of directors of MONEY3 Corporation Ltd (Money3), it is our pleasure to present the
Annual Report for end of financial year 2013(FY 2013).
Building on the strong first half Money3 has generated a full year profit after tax of $3,647,867, an increase of
44.46% on the previous year.
This result is a product of our continued development of our customer base, both by acquisition and organic
growth, as well as the introduction of new products that fit our customer base.
2013 Financial Highlights:
Net profit before tax up 44.4% to $5.2M (2012: $3.6M)
EPS up 4.9% to 6.16 (2012: 5.87) cents per share
Earned income up 47.0% to $22.8M (2012:$15.5)
Branch written income up 40.6% to $16.6M (2012:$11.8M)
Branch earned income up 26.0% to $14.5M (2012:$11.5M)
Secured written income up 177.7% to $15.0M (2012:$5.4M)
Secured earned income up 77.1% to $6.5M (2012:$3.5M)
Raised $15.9M in capital during the year
Loan book increased by 88.8% to $32.1M (2012:$17.0M)
Branch Network
The Branch network continued its growth with the expansion into the Sydney and Brisbane markets following
the introduction of national regulations applying to consumer credit. Consumers in NSW particularly have
benefited from the competition Money3 has provided in the small amount credit contracts and it appears the
market place is growing.
Branch written income increased by 40.6% to $16.6M, and earned income increased by 26% to 14.5M.
Money3 plans to continue its expansion into NSW and Queensland, these branch expansions are expected to
generate positive earnings in FY14. Money3 currently has 39 branches.
Web Centre
Providing referrals to Branches and the Auto Division and managing its own Loan portfolio the Web Centre
continues to grow. Integrated into the Loans Management system this division provides an extra front door to
the business.
The Auto Division
The Auto Division of Money3 has continued the exceptional growth over the past 12 months with written sales
up over 184% to $16.5M and earned income up 102% to 8M.
The Auto Division is broken into 3 focused areas:
Secured Loan Centre
Secured lending commenced soon after Money3 listed in 2006 and has become two thirds of the Loan Book of
Money3. As loans are paid back over a two to three year period the explosive growth in written income is
locked away to be earned in the future. Loan size averages $12,500 and is secured most commonly by a car.
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Micro Motors
This division providing loans on average of $4,500 commenced in August 2012 and has provided over 500
loans by end of FY2013. With low bad debt levels this department fits well with branch customers purchasing a
cheaper second hand vehicle.
Car Rentals
The car rentals division allows customer to have access to a car even if they don’t qualify for a car loan. Once a
customer has proven themselves in this product Money3 can then offer the customer a loan to either
purchase the rental car or a car of their choice.
Collections
The success of Money3’s business is contingent on how effective money is repaid by customers. In line with
the growth of lending the implementation of the Loans management system and associated reporting was
integral to this process. Focus is now on initial collections within each portfolio within each division as a result.
It is pleasing to report that collections are within desirable parameters. It is prudent for Money3 to maintain
bad debt levels at between 10% and 15% of revenue. We are currently in that range and provisioning
accordingly.
Debt Funding
The $20 million credit facility from Westpac Banking Corporation (Westpac) is still undergoing Westpac
internal process. While disappointed at the time taken to settle this facility Money3 is confident of a successful
outcome.
As announced previously completion of the facility is subject to Westpac’s conditions precedent and execution
of all relevant legal documentation. Money3 will keep the market informed of any further developments.
As shareholders would expect other debt funding alternatives are also being considered.
Equity Funding
Due to expanding demand in the secured loan division, capital raisings and a share purchase plan raised $15.9
million for issuance of 27.7 million shares were conducted during the financial year. Support for this raising
was strong and is a good indicator of how Money3 is regarded in the investment community.
It is anticipated that further equity raisings will be used in conjunction with debt funding.
Relocation of Head Office
The relocation of Head Office to Bundoora in March 2013 has provided an excellent environment for the
growing secured, web and collections divisions to operate. Being together with accounts and management
ensures issues and opportunities are picked up quickly.
Regulations
All consumer credit is now regulated federally under the National Consumer Credit Protection Act. Money3 is
pleased to operate under one set of laws across the nation allowing consistency in both managing compliance
and expansion.
Money3 is confident that the new regulations have provided certainty and opportunity in a relatively new and
growing credit sector.
Dividends
The Directors of the Company recommend that a final dividend of 2.25 cents per share is to be paid on the 28
October 2013 to those shareholders on the register at the close of business on the 11 October 2013.
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Outlook
With almost two months trading in FY2014 revenues from recently acquired branches has exceeded
expectation and will contribute to the bottom line this year while existing branches are well ahead of July and
August 2013 budget.
The secured lending divisions have seen written revenue increase significantly in July to August 2013 and we
expect that growth to continue.
Money3 remains focused on providing sustainable credit products to the millions of Australians unable to
access traditional credit products. It is estimated that 4.5 million Australians have less than one weeks wages
in their bank accounts, 2.65 million are financially excluded and of them 54% are unable to source $3,000 for
an emergency. We understand these consumers and their needs and will remain focused on this niche.
We now have certainty from the regulators, access to funding and committed well trained staff; we have the
company well positioned to capitalise on expanding the operations via acquisitions and organic growth.
The commitment of Directors, Management and Staff are evidenced by the Company’s impressive results. We
take this opportunity to thank them for their collective efforts and would also like to thank our valued
shareholders for your support.
Yours sincerely
Geoff Sam OAM
Chairman
29 August 2013
Robert Bryant
Chief Executive Officer
29 August 2013
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Corporate Governance Statement
The Board of Directors (Board) of Money3 Corporation Limited (Money3) is responsible for the corporate
governance of the Company. The Board guides and monitors the business and affairs of the Company on
behalf of the shareholders by whom they are elected and to whom they are accountable. The Company is
committed to implementing the highest standards of corporate governance.
The Board supports the core principles and best practice recommendations of the ASX Corporate Governance
Council. However in view of the Company’s size, full adoption of the recommendations is currently not
practical. The Board will continue to work towards full adoption of the recommendations in line with growth
and development of the Company. The corporate governance policies of the Company and departures from
the recommendations are discussed below.
In setting its standards the Company has considered the 2nd edition of the ASX Corporate Governance
Principles and Recommendations (Revised Recommendations). Whilst the Company continues to develop and
improve its corporate governance processes and standards, the Board is pleased to advise that Money3's
practices are largely consistent with the ASX guidelines.
The Corporate Governance Statement that follows contains certain specific information and discloses the
extent to which the Company has followed the guidelines during the 2013 year. Money3's Corporate
Governance Statement is structured with reference to the ASX Corporate Governance Principles and
Recommendations.
Principle 1: Lay solid foundations for management and oversight
Money3 has a Board Charter which establishes the functions reserved to the Board and to senior
management. The Board is responsible for setting the strategic direction of the Company and for overseeing
and monitoring its businesses and affairs. Directors are accountable to the shareholders for the Company's
performance. The Board's overriding objective is to increase shareholder value within an appropriate
framework that protects the rights and enhances the interests of all shareholders, whilst ensuring that the
Company is properly managed.
The functions of the Board include:
Setting overall financial goals for the Company;
Approving strategies, objectives and plans for the Company's businesses to achieve these goals;
Ensuring that business risks are identified and approving systems and controls to manage those risks
and monitor compliance;
Approving the Company's major HR policies and overseeing the development strategies for senior and
high performing executives;
Approving financial plans and annual budget;
Monitoring financial results on an on-going basis;
Monitoring executive management and business performance in the implementation and
achievement of strategic and business objectives;
Approving key management recommendations (such as major capital expenditure, acquisitions,
divestments, restructuring and funding);
Appointing and removing the Chief Executive Officer (CEO) and ratifying the appointment and removal
of executives reporting directly to the CEO (senior executives);
Reporting to shareholders on the Company's strategic direction and performance including
constructive engagement in the development, execution and modification of the Company's
strategies;
Overseeing the management of occupational health and safety and environmental performance;
Determining that satisfactory arrangements are in place for auditing the Company's financial affairs;
and
Meeting statutory and regulatory requirements and overseeing the way in which business risks and
the assets of the Company are managed.
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Corporate Governance Statement (continued)
In carrying out its responsibilities and functions, the Board may delegate any of its powers to a Board
committee, a Director, employee or other person. However, the Board acknowledges that it retains ultimate
responsibility for the exercise of such powers under the Corporations Act 2001 (Cth).
The Board has guidelines for its Directors to address potential conflicts of interest, including a requirement
that they declare their interests as required by the Corporations Act and the ASX Listing Rules.
Principle 2: Structure the Board to add value
The Board of Directors is structured to add long term value to Money3. The Board consists of two executive
and four non-executive directors. The non-executive directors, being Ms Bettina Evert, Mr Kang Tan, Mr
Geoffrey Sam and Mr Christopher Baldwin, are regarded for corporate governance purposes as independent,
notwithstanding the existence of certain relationships identified in the ASX's Corporate Governance Principles
and Recommendations. [Box 2.1 of Principle 2]
Mr Geoffrey Sam has over 30 years experience in the healthcare industry, and has held multiple hospital CEO
positions in the public and private sectors.
Ms Bettina Evert is a partner of Holman Webb which has not provided legal services to the Company and
subsidiaries. During the financial year ending 30 June 2013, the Company's legal affairs were handled by Foster
Nicholson Legal Pty Ltd.
Mr Kang Tan held the position of Chief Financial Officer until the 17 September 2010. Mr Tan continues to
provide consulting advice to the company in the area of accounting and IT. Mr Tan holds a significant number
of securities in the Company and is classified as a substantial shareholder as defined in section 9 of the
Corporations Act.
Mr Christopher Baldwin now consults to Brown Baldwin, in previous years he was a partner. Brown Baldwin
continues to provide taxation and statutory secretarial services to the Group and annual fees for the 30 June
2012 financial year were $16,430. Mr Baldwin holds a significant number of securities in the Company but is
not a substantial shareholder as defined in section 9 of the Corporations Act. Mr Baldwin is the uncle of Mr
Scott Baldwin who is an executive director of the Company.
The Directors also believe they are open and transparent in disclosing their plans and financial results to
shareholders. They believe the AGM provides a good opportunity for shareholders to evaluate their
performance. Directors are subject to re-election every three years. The Board has a policy of operating a tight
structure, but appoints external parties experienced in specific sectors from time to time to provide expert
advice.
Principle 3: Promote ethical and responsible decision-making
As part of its commitment to recognising the legitimate interests of stakeholders, the Company has
established certain Codes of Conduct to guide all employees, particularly Directors, the Chief Financial Officer
(CFO) and other Senior Executives in respect of ethical behaviour expected by the Company. These Codes of
Conduct as outlined below cover conflicts of interest, confidentiality, fair dealing, protection of assets,
compliance with laws and regulations; whistle blowing, security trading and commitments to stakeholders.
The Board is committed to ensuring that the group’s affairs are conducted in a judicious and ethical manner.
Accordingly, the Board fully supports the spirit and letter of the law and the listing rules concerning adequate
and reasonable disclosure of information relevant to the Company and its securities in line with contemporary
continuous disclosure requirements.
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Corporate Governance Statement (continued)
Money3 is committed to providing an inclusive workplace and recognises the value individuals with diverse
skills, values, backgrounds and experiences will bring to the company. At the core of the company's diversity
policy is a commitment to equality and respect. Diversity in recognised and valuing the unique contribution
people can make because of their individual background and different skills, experience and perspectives.
People differ not just on the basis of race and gender, but also dimensions such as lifestyle, education, physical
ability, age and family responsibility.
The total number of staff as at 30 June 2013 was 173 (2012: 133) of which 135 (2012: 107) are female, the
Board comprises 6 members of which 1(2012 :1) is female, and management has 14(2012: 10) of which
6(2012: 4) are female.
Money3 has a formal Share Trading Policy, a Trading Charter in dealing in the company’s securities in addition
to complying with legislative and regulatory obligations, for example in regard to provision of credit and
confidential information.
The Board is also mindful that trading by Directors and other employees of the Company at certain times may
not be in the best interests of the above commitment. Accordingly, the Board has established and
promulgated to all Directors and employees a Share Trading Policy to guide those officers in their
responsibilities in respect of trading in the Company's and other companies' securities.
The Company's Code of Conduct consists of the following principles: -
1. The Company will conduct its business operations with full regard to and in compliance with all legal
obligations.
2. The Company's employees, contractors and agents:
a. will strive to the utmost of their abilities to deliver quality services to meet our customers'
needs and treat our customers with respect, courtesy and a caring attitude toward their
business requirements;
b. will present themselves in a fit and tidy condition for work and be fully equipped to perform
their work safely and competently;
c. will, when working for customers, adhere to all workplace and occupational health and safety
requirements, work instructions and directives and will refrain from any irresponsible,
negligent or unsafe actions or work;
d. are expected to work in a supportive and cooperative manner, and the Company will not
condone any form of harassment of fellow workers. All cases of harassment will be promptly
resolved through counselling and conciliation processes; and
e. will not knowingly reveal confidential information, trade secrets or information concerning
intellectual property or practices, which could be injurious to our customers or our own
business interests.
3. The Company encourages the reporting of unlawful/unethical behaviour by its directors, employees,
contractors and agents and will actively promote ethical behaviour and protection for those who
report violations in good faith.
4. The Company encourages individuals to join appropriate organisations and associations that can
effectively represent their work interests.
5. The Company will communicate the code of conduct to all its employees, contractors and agents.
Principle 4: Safeguard integrity in financial reporting
The Board has in place an Audit Committee which comprises a non-executive Director (Mr Geoffrey Sam) as
Chairman and Ms Bettina Evert, Christopher Baldwin and Kang Tan as the other non-executive Directors.
The primary role of the Audit Committee is to monitor and review the effectiveness of the Company's control
environment in the areas of operational risk, legal/regulatory compliance and financial reporting. It will advise
and assist the Board to discharge its responsibility to exercise due care, diligence and skill in relation to:
1. Reporting of financial information to users of financial reports, in particular the quality and reliability
of such information;
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Corporate Governance Statement (continued)
2. Assessing the consistency of disclosures in the financial statements with other disclosures made by the
Company to the financial markets, governmental and other public bodies;
3. Review and application of accounting policies;
4. Financial management;
5. Review of internal and external audit reports to ensure that where weaknesses in controls or
procedures have been identified, appropriate and prompt remedial action is taken by management;
6. Evaluation of the Company's compliance and risk management structure and procedures, internal
controls and ethical standards;
7. Review of business policies and practices;
8. Conduct of any investigation relating to financial matters, records or accounts, and to report those
matters to the Board;
9. Protection of the Company's assets; and
10. Compliance with applicable laws, regulations, standards and best practice guidelines.
Declaration of the CEO and CFO
The CEO and CFO provide the Board with written confirmation that:
The financial reports present a true and fair view, in all material respects, of the Company’s financial
condition and operational results and are in accordance with relevant accounting standards;
The statement is founded on a sound system of risk management and internal compliance and control
which implements the policies adopted by the Board; and
The Company’s risk management and internal compliance and control system is operating effectively
in all material respects in relation to financial reporting risks.
The Board has received the above declaration from the CEO and CFO for this year.
Principle 5: Make timely and balanced disclosure
The Board is aware of its continuous disclosure obligations in respect of material information, and embraces
the principle of providing access to that information to the widest audience.
To ensure that these principles are appropriately actioned, the Board has nominated the Company Secretary
as having responsibility for:
Ensuring that the Company complies with continuous disclosure requirements;
Overseeing and co-ordinating disclosure of information to ASX, analysts, brokers, shareholders, the
media and the public;
Educating directors and staff on the Company's disclosure policies and procedures and raising
awareness of the principles underlying continuous disclosure;
Ensuring that the Chairman and the CEO are aware of all sensitive information that may be required by
the ASX Listing Rules and the law to be publicly released through the ASX before disclosing it to any
person, including analysts and others outside the Company;
Ensuring that all information released through the ASX is promptly made available to its bankers and
other parties to whom it has a similar reporting responsibility;
The further dissemination of information, after it has been released through the ASX, to investors and
other interested parties;
Posting such information on the Company's website immediately after the ASX confirms that it has
received such announcements; and
Reviewing all briefings and discussions with media representatives, analysts and major shareholders,
to check whether any price sensitive information has been inadvertently disclosed. If so, to
immediately announce the information through the ASX.
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Corporate Governance Statement (continued)
To safeguard against inadvertent disclosure of price sensitive information, the Board has agreed to keep to a
minimum the number of directors and staff authorised to speak on the Company's behalf. In order of
precedence, the following combinations of officers have authority to speak on behalf of the Company without
the prior approval of the Board:
The Chairman and/or the Managing Director, separately, then
The Chairman and a non-executive director, jointly, then
Any two non-executive directors and the Managing Director, jointly (by majority), and then
In extreme circumstances, any 2 directors, jointly.
These officers are also authorised to clarify information that the Company has released publicly through the
ASX, but must avoid commenting on other price sensitive matters. All ASX announcements of a non procedural
nature are approved by the Chairman before release.
The Company has determined that the Company Secretary must be made aware of any information
disclosures in advance, including information to be presented at private briefings. This will minimise the risk of
breaching the continuous disclosure requirements.
In accordance with the ASX Listing Rules, the Company immediately notifies the ASX of information:
1. Concerning the Company that a reasonable person would expect to have a material effect on the price
or value of the Company's securities; and
2. That would, or would be likely to, influence persons who commonly invest in securities in deciding
whether to acquire or dispose of the Company's securities.
Upon confirmation of receipt from the ASX, the Company posts all information disclosed in accordance with
this policy on the Company's website in an area accessible by the public.
Principle 6: Respect the rights of shareholders
Money3 recognises the importance of effective communications with shareholders and other parties.
Shareholders also have other formal and informal rights provided by the Company’s constitution, regulatory
bodies and proper public company behaviour. These include their entitlement to financial statements,
attendance and voting at shareholder meetings. The auditor is invited to attend the AGM and be available to
answer shareholder questions about the conduct of the audit and the preparation and content of the auditor's
report. Shareholder meetings are conducted in an open forum with wide discussion encouraged by the
Chairman.
Principle 7: Recognise and manage risk
The identification and effective management of risk, including calculated risk-taking is viewed as an essential
part of the Company’s approach to creating long-term shareholder value.
Money3 has an established lending policy and policies for the recognition, oversight and management of
material business risks. These policies are reviewed on a regular basis for effectiveness and changing economic
environment. Given the actual and potential volatility of the present global economic conditions, Money3
regards risk management as a very important issue. In this regard the Board has strengthened the Debt
Recovery Department, placed greater management oversight on problem loans and in some cases engaged
external professional debt collectors.
Management, through the CEO, is responsible for designing, implementing and reporting on the adequacy of
the Company’s risk management and internal control system. Management reports to the Audit and Risk
Committee on the Company’s key risks and the extent to which it believes these risks are being monitored at
each Committee meeting. The Audit and Risk Committee review and monitor management's risk management
and internal compliance and control systems.
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Corporate Governance Statement (continued)
On a continuous basis the Board has charged the Audit and Risk Committee with responsibilities that:
Clearly describe the respective roles of the Board, the Committee, Management and the internal audit
function; and
Prescribe the necessary elements of an effective risk management system, namely, oversight, risk
profile, risk management, compliance and control, and assessment of system effectiveness.
The CEO and CFO in providing written confirmation to the Board in accordance with the requirements of
Section 295A (2) of the Corporations Act 2001 must be satisfied that their certification is founded on a sound
system of risk management and internal compliance and control, which implements the policies adopted by
the Board and that the Company's risk management and internal compliance and control systems are
operating efficiently and effectively in all material respects.
Principle 8: Remunerate fairly and responsibly
The Board is responsible for determining and reviewing compensation arrangements for the Directors
themselves, the Non-Executive Chairman and the Senior Management team. Money3 has a Remuneration
Committee which comprises a non-executive Director (Mr Kang Tan) as Chairman and Mr Christopher Baldwin
and Ms Bettina Evert as the other non-executive Directors.
The primary purpose of the Remuneration Committee is to support and report to the Board in fulfilling their
responsibilities to shareholders in relation to:
Executive remuneration policy;
The remuneration of executive directors;
The remuneration of persons reporting directly to the managing director, and as appropriate, other
executive directors;
The Company's recruitment, retention and termination policies and procedures;
Superannuation arrangements; and
All equity based remuneration.
The performance of the Board, Committees, individual Directors and key executives is reviewed regularly
against both measurable and qualitative indicators.
Performance appraisals are undertaken annually. The performance criteria against which the Board, key
executives and committees will be assessed is aligned with key corporate governance needs as well as financial
and non-financial objectives.
In relation to the payment of bonuses, options and other incentive payments to executives and other staff,
discretion is exercised by the Board having regard to individual, team and Company performance relative to
specific targets during the period.
The expected outcomes of the remuneration structure are to retain and motivate Directors and key
executives, attract quality management and provide performance incentives which align performance and
Company success in a manner that is market competitive, consistent with best practice and in the interests of
shareholders. Details of the nature and amount of each element of remuneration, including both monetary
and non-monetary components, for each Director and the (Non Director) Officers paid during the year can be
found in the Directors' Report.
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Report
The directors present the annual financial report on the consolidated entity, consisting of Money3 Corporation
Limited and the entities it controlled at the end of, or during the year ended 30 June 2013. In order to comply
with the provisions of the Corporations Act 2001, the directors report as follows:
Directors' Details
The names and details of the Company's Directors in office during the financial year and until the date of this
report are as follows. Directors were in office for this entire period unless otherwise stated.
Geoffrey Joseph Sam OAM, B.Comm MHA MA(Econ & Soc Stud) FAICD FACHSE
Non Executive Chairman (Appointed on 24 August 2010)
Member of the Audit Committee (Appointed on 22 June 2011)
Geoff has over 30 years experience in the healthcare industry, and has held multiple hospital CEO positions in
the public and private sectors. Geoff is currently Executive Chairman of Care Australia Pty Ltd, a private
hospital operator.
Bettina Evert BA LLB MAICD
Non-Executive Director (Appointed on 28 February 2006)
Member of the Audit and Remuneration Committees
Bettina is a partner of Holman Webb, a commercial and insurance law practice established over 60 years ago.
She is highly experienced in commercial law and litigation. She was, prior to commencing at Holman Webb, a
senior solicitor on the work-out team after the collapse of the Tricontinental Bank in 1991 and worked as a
senior solicitor at Telstra Corporation advising senior management in relation to corporate governance. Prior
to joining Holman Webb, Bettina was a director of Deloitte Touche Thomatsu. Bettina is currently Deputy Chair
of the Law Institute of Victoria, Executive Committee, Litigation Section, the Chair of the Courts Practice
Committee of the Law Institute of Victoria and a lay member of the CPA Australia Disciplinary Committee
which hears professional disciplinary matters relating to members of CPA Australia.
Robert James Bryant
Chief Executive Officer (Appointed on 4 April 2008)
Executive Director (Appointed on 25 November 2005)
Robert has been a company director since July 1995 and is the major shareholder in Money3. Before entering
the financial services industry in May 2000 he was predominantly involved in agricultural related industries for
over 25 years. The shift to financial services in 2000 saw Robert commence a small cash loans franchise in
Victoria.
Robert's responsibilities include management and governance, regulation and compliance, expansion and
public and government relations.
Kang Hong Tan ACA (UK) FIPA (Aust)
Non-Executive Director (Appointed on 25 November 2005)
Member of the Audit and Remuneration Committees (Appointed 22 June 2011)
Kang has been a member of the Institute of Chartered Accountants in England and Wales since 1983, and the
National Institute of Accountants in Australia since 1998. Kang spent 10 years as an Accountant with La Trobe
University Union and spent 7 years as an owner operator of a Pizza Haven franchise in Thornbury, Victoria.
Before coming to Australia, Kang was the Group Financial Controller of Tanming Corporation Berhad for 4
years.
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MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Report (continued)
Christopher James Baldwin CPA
Non-Executive Director (Appointed on 25 November 2005)
Member of the Audit and Remuneration Committees
Christopher commenced work in 1960 for a public accountant and had continued his accounting professional
work in taxation, business and consultancy in Shepparton as a principal that headed the public accounting
practice of Brown Baldwin in Shepparton and Melbourne. Christopher now consults to Brown Baldwin as he
has extensive experience in business matters, including taxation and accounting.
Scott Joseph Baldwin B.Eng(Hons) MBA MAAICD
Chief Operations Officer (Appointed on 25 April 2008)
Executive Director (Appointed on 13 January 2009)
Scott has a Masters of Business Administration, Graduate Diploma of Management and a Bachelor of
Engineering (Hons). Scott has previously held a number of management positions with several public listed
companies. His previous position was with General Electric as a Marketing Manager covering the Asia region.
None of the Company's Directors have held directorships in other listed companies during the past 3 years.
Company Secretary’s Details
Craig Alan Harris CPA
CFO and Company Secretary (appointed 17 September 2010)
Craig is a Certified Practicing Accountant with over 20 years experience in both public and private companies.
Craig previous role was as Company Secretary for Wentworth Holdings Ltd, a listed property management
company.
Principal activities
The principal activities of the consolidated entity during the year were providing financial services specialising
in the delivery of small cash loans, secured and unsecured personal loans, cheque cashing, equipment and
motor vehicle rental, and international money transfer. Although the company has discontinued the offering
of international money transfer, there has been no significant change in nature of the principal activities
during the financial year.
Dividends
The Company paid a fully franked final dividend for the year ended 30 June 2012 of 2.25 cents per share on
26 October 2012.
The Company paid a fully franked interim dividend for the year ended 30 June 2013 of 1.75 cents per share on
26 April 2013.
On 29 August 2013, the directors declared a fully franked final dividend of 2.25 cents per share to the holders
of fully paid ordinary shares in respect of the financial year ended 30 June 2013, to be paid to shareholders on
28 October 2013. The dividend will be paid to shareholders on the Register of Members on 11 October 2013.
This dividend has not been included as a liability in these financial statements.
Page 11
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Report (continued)
Results of operations
The consolidated net profit after tax for the year was $3,647,867 (2012: $2,525,840).
Review of Operations
Revenue continued to increase with an increase of 47% in the financial year ended June 2013. Money3 has
continued to expand and consolidate its business over the 12 months ended 30 June 2013. The Company
opened 7 new stores, many as result of taking over sites from competitors.
The company has decided that offering international money transfer was not a product that complemented
the company's other products and the transaction costs outweighed the benefits, this actually ceased during
the year.
The company also has declared a 2.25 cent fully franked dividend for the second half of the year. For more
details of results please refer to the CEO and Chairman’s report.
Change in the State of Affairs
There was no significant change in the state of affairs of Money3.
Significant Matters Subsequent to the Reporting Date
No other matter or circumstances has arisen since the end of the financial year that has significantly affected
or may significantly affect the operations of Money3, the results or the state of affairs of the Company.
Likely Developments and Expected Results
Disclosure of information, in addition to that provided in this report, regarding likely developments in the
operations of the consolidated entity in future financial years and the expected results of those operations is
likely to result in unreasonable prejudice to the consolidated entity. Accordingly, this information has not been
disclosed in this report.
Environmental Regulation and Performance
The Company's operations are not regulated by any environmental regulation under a law of the
Commonwealth or of a state or territory.
Share Options
As at the date of this report, there were 3,550,000 unissued ordinary shares of Money3 Corporation Limited in
respect of which there are options outstanding (2012: 800,000).
a) Share options granted to directors and executives
2,000,000 share options were granted to directors and executives during the current financial year.
b) Share options on issue at year end
Details of unissued ordinary shares in Money3 Corporation Limited under option at the date of this report are:
Issuing entity
Type
Money3 Corporation Ltd
Money3 Corporation Ltd
Money3 Corporation Ltd
Money3 Corporation Ltd
Money3 Corporation Ltd
Directors Options
Directors Options
Directors Options
Employee Options
Employee Options
No. of shares under
option
200,000
200,000
200,000
1,950,000
1,000,000
Exercise Price
$
0.70
0.85
1.00
0.50
0.50
Expiry Date
31 December 2013
31 December 2014
31 December 2015
30 September 2017
16 November 2017
Each share option converts into one ordinary share of Money3 Corporation Limited on exercise. The options carry neither rights to
dividends nor voting rights.
Page 12
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Report (continued)
Shares Issued as a Result of the Exercise of Options
No options have been exercised during or since the end of the year.
Indemnification and Insurance of Directors and Officers
The Company has not during or since the end of the financial year,
Indemnified or agreed to indemnify an officer or auditor of the Company or any related body
corporate against a liability, including costs and expenses in successfully defending legal proceedings,
as an officer or auditor.
Paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an
officer for the costs or expenses to defend legal proceedings. The Company has not taken out any
insurance during or since the end of the year in respect of any person who is or has been a director.
Directors' Meeting
The following table sets out the number of directors' meetings (including meetings of committees of directors)
held during the financial year and the number of meetings attended by each director (while they were a
director or committee member). During the financial year, there were five Board meetings, two Audit
Committees and one Remuneration Committee meeting held. No meeting of the Nominations Committee was
held during the year.
Director
Geoffrey Sam
Bettina Evert
Robert Bryant
Kang Hong Tan
Christopher Baldwin
Scott Baldwin
Board meeting
Audit Committee
Held
5
5
5
5
5
5
Attended
5
5
5
4
4
5
Held
2
2
-
2
2
-
Attended
2
2
-
2
2
-
Remuneration Committee
Attended
-
1
-
1
1
-
Held
-
1
-
1
1
-
Directors’ Shareholding
The following table sets out each director’s relevant interest in shares or options in shares of the Company or a
related body corporate as at the date of this report.
Director
Ordinary Shares
Geoffrey Sam
Bettina Evert
Robert Bryant
Kang Hong Tan
Christopher Baldwin
Scott Baldwin
124,459
244,979
9,756,849
5,099,668
1,059,019
1,841,106
Partly paid ordinary
shares
-
-
-
-
-
-
Type of Options
-
-
-
-
-
Director/Employee
Options over Ordinary
Shares
-
-
-
-
-
1,600,000
Remuneration Report (Audited)
This report outlines the remuneration arrangements in place for directors and executives of Money3
Corporation Limited.
Remuneration philosophy
The performance of the Company depends upon the quality of its directors and executives. To prosper, the
Company must attract, motivate and retain highly skilled directors and executives.
Page 13
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Report (continued)
To that end, the Company embodies the following principles in its remuneration framework:
Provide competitive rewards to attract high calibre executives;
Focus on creating sustained shareholder value;
Significant portion of executive remuneration at risk, dependent upon meeting predetermined
performance benchmarks; and
Differentiation of individual rewards commensurate with contribution to overall results and according
to individual accountability, performance and potential.
The Remuneration Committee is responsible for determining and reviewing compensation arrangements for
the directors, chief executive officer (CEO) and the senior management team. The committee assesses the
appropriateness of the nature and amount of remuneration of directors and senior managers on a periodic
basis by reference to relevant employment market conditions with the overall objective of ensuring maximum
stakeholder benefit from the retention of a high quality board and executive team.
Remuneration structure
In line with best practice corporate governance, the structure of non-executive director, executive director and
senior manager remuneration is separate and distinct.
Non-executive director remuneration
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to
attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors
shall be determined from time to time by a general meeting. An amount not exceeding the amount
determined is then divided between the non executive directors as agreed. The current approved aggregate
remuneration is $300,000.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is
apportioned amongst directors is reviewed annually. The board considers the fees paid to non-executive
directors of comparable companies when undertaking the annual review process. No external consultants
have been used.
Each director receives a fee for being a director of the Company.
Senior management and executive director remuneration
The Company aims to reward executives with a level and mix of remuneration commensurate with their
position and responsibilities within the Company and so as to:
Reward executives for company and individual performance against targets set by reference to
appropriate benchmarks;
Align the interests of executives with those of shareholders;
Ensure total remuneration is competitive by market standards.
Link reward with the strategic goals and performance of the company; and
The executive remuneration program is designed to support the Company's reward philosophies and to
underpin the Company's growth strategy. The program comprises the following components:
Fixed remuneration component; and
Variable remuneration component including short term incentive (STI) and long term incentive (LTI)
Page 14
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Report (continued)
Fixed remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate
to the position and is competitive in the market. Senior managers are given the opportunity to receive their
fixed (primary) remuneration in a variety of forms including cash and fringe benefits such as motor vehicles. It
is intended that the manner of payment chosen will be optimal for the recipient without creating undue cost
for the Company.
Variable remuneration – short term incentive (STI)
The objective of the STI program is to link the achievement of the Company’s operational targets with the
remuneration received by the executives charged with meeting those targets. The total potential STI available
is set at a level so as to provide sufficient incentive to the senior manager to achieve the operational targets
and such that the cost to the Company is reasonable. On a quarterly basis, after consideration of performance
against KPIs, the Board approves an overall performance rating for the Company. The individual performance
of each executive is also rated and taken into account when determining the amount, if any, of the short term
incentive pool allocated to each executive. The aggregate of annual STI payments available for executives
across the Company are usually delivered in the form of a cash bonus . Employees and executives participate
in performance incentive program under which a budgeted Earnings Before Interest and Tax(EBIT) was
established by the directors where the employees and executives are entitled to a share of the profit which
exceeds this budget figure. Under the program cash bonuses of $200,000 (2012: nil) have been earned and
accrued at 30 June 2013 based on the 30 June 2013 result and will be paid after completion of the audit
process.
Variable remuneration - long term incentive (LTI)
The objective of the LTI plan is to reward senior managers in a manner which aligns this element of
remuneration with the creation of shareholder wealth. As such, LTI grants are only made to executives who
are able to influence the generation of shareholder wealth and thus have a direct impact on the Company's
performance against relevant long term performance hurdles. LTI grants to executives are delivered in the
form of options or shares. In the 2013 financial year, 2,000,000 options were granted (2012: nil) to directors
and executives. No issue of shares was made in 2013 (2012: nil) under the LTI plan.
Contract of employment
All executives of the Company are employed under a letter of appointment. Various notice periods of up to 6
months are required to terminate the appointment as mutually agreed with no additional termination
payments stipulated. The letters of appointment do not contain specified option incentive entitlements and
are rolling with no fixed term.
Relationship between remuneration policy and company performance
Remuneration paid to key management personnel (KMP) has been set at a level to attract and retain
appropriately skilled persons. All executive Directors and KMP receive a base salary, superannuation and fringe
benefits. Performance based bonuses of nil (2012: nil) were paid by the Group to KMP during the year. During
the year 2,000,000 options were issued (2012: nil) to KMP.
In considering the consolidated entity’s performance and benefits for shareholder wealth, the directors have
regard to the indices in respect of the current financial year and the previous four financial years. The
following table shows revenue, profits, dividends, share price, EPS and KMP remuneration at the end of each
year.
Page 15
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Report (continued)
Revenue
Net Profit after tax
Closing share price
Price increase/(decrease) $
Price increase/(decrease) %
Earnings per share
Dividend paid per share
Total key management personnel remuneration
30 June 2009
9,013,813
1,033,926
$0.39
($0.07)
(15%)
3.51
3.3 cents
$592,179
30 June 2010
11,000,772
2,150,223
$0.50
$0.11
28%
6.85
3.4 cents
$571,350
30 June 2011
13,513,713
2,402,270
$0.42
($0.08)
(16%)
7.11
4.25 cents
$831,782
30 June 2012
15,494,893
2,525,840
$0.38
($0.04)
(10%)
5.87
4.00 cents
$815,394
30 June 2013
22,787,126
3,647,867
$0.79
$0.41
108%
6.16
4.00 cents
$784,025
The overall level of KMP’s compensation takes into account the performance of the consolidated entity since
listing on 19 October 2006. The level of compensation has not increased significantly since listing.
Details of remuneration
The KMP of Money3 Corporation Limited includes the directors and the CFO of the entity as follows:
Mr Geoffrey Sam OAM
Mr Robert Bryant
Non-Executive Chairman (from 24 August 2010)
Executive Director (from 25 November 2005), CEO (from 1 July 2006 to 6 August
2007 and re-appointed from 4 April 2008)
Non-Executive Director (from 28 February 2006)
Ms Bettina Evert
Mr Christopher Baldwin Non Executive Director (from 25 November 2005)
Mr Kang Hong Tan
Non-Executive Director (from 25 November 2005)
Mr Scott Joseph Baldwin Executive Director and Chief Operations Officer (from 13 January 2009)
Mr Craig Harris
Company Secretary (from 17 September 2010) and CFO (from 31 May 2010)
There are no KMP other than those disclosed above.
The compensation of each member of the KMP of the consolidated entity is set out below:
Short term employee
benefits
Salary & fees
$
Bonus
$
Post employment
benefits
Superannuation
$
Other long
term benefits
$
Share based
payments
(options)
$
Total
$
52,884
38,461
140,700
61,538
38,461
166,463
164,920
663,427
55,000
40,000
135,000
62,020
40,000
171,262
162,257
75,688
741,227
-
-
-
-
-
9,148*
8,493*
17,641*
-
-
-
-
-
-
-
-
-
-
4,760
3,461
11,250
4,188
3,461
25,050
14,843
67,013
4,950
3,600
11,250
4,682
3,600
15,750
14,603
6,812
65,247
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,277
15,667
35,944
-
-
-
-
-
8,920
-
-
8,920
57,644
41,922
151,950
65,726
41,922
220,938
203,923
784,025
59,950
43,600
146,250
66,702
43,600
195,932
176,860
82,500
815,394
2013
G. Sam
B. Evert
R. Bryant
Kang H. Tan
C. Baldwin
S. Baldwin
C Harris
Total
2012
G. Sam
B. Evert
R. Bryant
Kang H. Tan
C. Baldwin
S. Baldwin
C Harris
M Simonovski
Total
Except for retirement benefits provided by the superannuation guarantee legislation, there are no retirement
benefits for the Directors. The proportion of S.Baldwin's remuneration that is linked to performance is 4.14%
(2012: nil). The proportion of C.Harris's remuneration that is linked to performance is 4.16% (2012: nil). No
other KMP remuneration linked to performance (2012: nil).
* Bonus earned for the 2013 financial year, not yet paid.
Page 16
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Report (continued)
Value of options
The value of options is determined at grant date using the Binomial Option Pricing Model taking into account
factors including exercise price, expected volatility and option life and is included in remuneration on a
proportion basis from grant date to vesting date.
Value of options issued to directors and key management personnel
The following table discloses the value of options granted, exercised or lapsed during the year:
Value of
options
granted
during the
year
$
Value of
options
excercised
during the
year
$
Value of
options
lapsed
during the
year
$
Percentage of total
remuneration for
the year that
consists of options
%
Proportion of option
remuneration
Performance
related
%
Non-
Performance
related
47,000
47,000
Nil
Nil
Nil
Nil
9,780
Nil
10,980
9
8
5
Nil
Nil
Nil
100
100
100
Directors
2013
S Baldwin
C Harris
2012
S Baldwin
Options granted during the 2013 financial year were not related to performance of the company as they were
granted as an incentive to drive the continuing performance of the Company. The total fair value of these
options on grant date was $94,000.
Options granted during the 2010 financial year were not related to performance of the company as they were
granted as an incentive to drive the continuing performance of the Company. These options were issued to
Mr Baldwin during the 2010 financial year in five 200,000 option tranches. The total fair value of these options
on grant date was $44,740.
As the options vest over time the cost is expensed in accordance with AASB2 over the vesting period. In the
2013 financial year the expense is $35,944 (2012: $8,920).
Details on the determination of the fair value of options issued to the KMP are set out in note 8 to the financial
statements.
Share based compensation
Options
Options are granted under the Money3 Corporation Limited's Director and Employee Share Option Plan.
Options are granted under the plan for no consideration. The board meets to determine eligibility for the
granting of options, and to determine the quantity and terms of options that will be granted.
The valuations of options are independently determined by independent experts using the Binomial option
pricing model taking into account the terms and conditions upon which the instruments were granted.
The following table discloses terms and conditions of each grant of options provided as compensation.
Issue Date
27 Nov 2009
27 Nov 2009
27 Nov 2009
16 Nov 2012
30 Sep 2012
Options
Granted
200,000
200,000
200,000
1,000,000
1,000,000
S Baldwin
S Baldwin
S Baldwin
S Baldwin
C Harris
Exercise Price
Expiry Date
Vesting Date
$0.70
$0.85
$1.00
$0.50
$0.50
31 Dec 2013
31 Dec 2013
31 Dec 2014
31 Dec 2013
31 Dec 2015
31 Dec 2014
16 Nov 2017
16 Nov 2015
30 Sep 2017
30 Sep 2015
Maximum total
value of issue
yet to vest
$
7,000
6,473
6,086
47,000
47,000
Page 17
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Report (continued)
These options vest if an event occurs which gives rise to a change in control of the Company. 2,000,000 (2012:
nil) options were issued during the 30 June 2013 financial year.
Share options carry no rights to dividends and no voting rights. In accordance with the terms of the share
option schemes, options may be exercised at any time from the date on which they vest to the date of their
expiry, subject to any additional specific requirements of the particular allocation.
At the company's 2012 Annual General Meeting Money3 Corporation Limited received more than 96.76% of
"yes" votes on its remuneration report for the 2012 financial year. The company did not receive any specific
feedback at the AGM or throughout the year on its remuneration practices.
End of Remuneration Report (Audited)
Proceedings on Behalf of the Company
No person has applied to the Court for leave to bring proceedings to which the Company is a party, for the
purpose of taking responsibility on behalf of the Company for all or part of these proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.
Non-Audit Services
There were no non audit services provided by the auditor during the 2013 or 2012 financial years.
Auditor's independence declaration
The auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
on page 19 of the financial report.
Signed in accordance with a resolution of the Directors
On behalf of the directors
Geoff Sam OAM
Chairman
Melbourne,
Dated 29 August 2013
Page 18
Auditor’s Independence Declaration
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Page 19
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
BDO Independent Auditors Report
Page 20
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Directors' Declaration
The directors of Money3 Corporation Limited declare that:
1.
in the directors’ opinion the financial statements and notes and the Remuneration report in the
Directors Report set out on pages 13 to 18, are in accordance with the Corporations Act 2001,
including:
2. giving a true and fair view of the consolidated entity’s financial position as at 30 June 2013 and of its
performance, for the financial year ended on that date; and
3. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) ,
Corporations Regulations 2001 and other mandatory professional reporting requirements;
4. the financial report also complies with International Financial Reporting Standards issued by the
International Accounting Standards Board (IASB) as disclosed in Note 1(a); and
5. there are reasonable grounds to believe that the company will be able to pay its debts as and when
they become due and payable.
The directors have been given the declarations required by Section 295A of the Corporations Act 2001 by the
chief executive officer and chief financial officer for the financial year ended 30 June 2013.
Signed in accordance with a resolution of the directors pursuant to section 295(5) of the Corporations Act
2001.
On behalf of the Directors
Geoff Sam OAM
Chairman
Dated 29 August 2013
Page 21
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Statement of Profit or Loss
and Other Comprehensive Income
for the year ended 30 June 2013
Revenue from continuing operations
Other Income
Expenses from operating activities:
Employment
Advertising
Occupancy costs
Bad debts
Depreciation & amortisation
Communication
Legal and professional
Other
Finance Costs
Loss on sale of property, plant and equipment
Profit before income tax from continuing operations
Income tax expense
Consolidated
2013
$
Consolidated
2012
$
22,787,126
15,494,893
86,987
100,350
8,389,479
575,464
2,199,421
2,451,975
1,307,550
458,211
829,357
1,057,287
358,058
18,837
6,055,981
637,620
1,409,533
1,525,728
543,535
338,130
520,642
784,576
166,736
-
5,228,474
3,612,762
(1,580,607)
(1,086,922)
Notes
2
3
3
3
3
5
Profit after income tax for the year from continuing operations
3,647,867
2,525,840
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Exchange gain/(loss) on translation of foreign operation
Other comprehensive income/(loss) for the year net of tax
Total comprehensive income for the year net of tax
Profit attributable to:
Owners of Money3 Corporation Limited
Non-controlling interest
Total comprehensive income attributable to:
Owners of Money3 Corporation Limited
Non-controlling interest
(258)
(258)
4,383
4,383
3,647,609
2,530,223
3,647,867
-
3,647,867
3,647,609
-
3,647,609
2,575,091
(49,251)
2,525,840
2,579,474
(49,251)
2,530,223
Earnings per share for the year attributable to the members of Money3 Corporation Limited
Basic earnings per share (cents)
Diluted earnings per share (cents)
6
6
6.16
5.87
5.87
5.76
The statement of profit or loss and other comprehensive income is to be read in conjunction with the attached notes.
Page 22
Statement of Financial Position
as at 30 June 2013
ASSETS
Current assets
Cash and cash equivalents
Loans and other receivables
Other
Total current assets
Non current assets
Loans and other receivables
Other
Property, plant & equipment
Intangibles
Deferred tax assets
Total non current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Borrowings
Current tax payables
Provisions
Total current liabilities
Non current liabilities
Trade and other payables
Provisions
Total non current liabilities
Total liabilities
Net assets
EQUITY
Issued capital
Reserves
Non-controlling interest
Retained earnings
Total equity
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Consolidated
2013
$
Consolidated
2012
$
Notes
9
10
11
10
11
12
13
5(d)
14
16
5(c)
15
14
15
17
18
4
4,564,100
17,650,848
816,715
1,256,406
9,880,749
430,011
23,031,663
11,567,166
14,510,052
235,088
3,281,566
7,127,634
186,203
2,714,595
15,363,487
15,363,487
823,799
496,198
34,213,992
25,888,117
57,245,655
37,455,283
1,207,901
3,052,181
1,104,140
611,762
5,975,984
-
53,915
53,915
6,029,899
51,215,756
1,105,409
1,590,469
791,027
379,409
3,866,314
82,500
69,738
152,238
4,018,552
33,436,731
45,097,588
28,902,114
55,769
-
6,062,399
51,215,756
26,463
(66,190)
4,574,344
33,436,731
The statement of financial position is to be read in conjunction with the attached notes
Page 23
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Statement of Changes in Equity
for the year ended 30 June 2013
Consolidated
At 1 July 2011
Profit after income tax expense for the year
Other comprehensive income for the year,
net of tax
Total comprehensive income for the year
Transactions with owners in their capacity
as owners:
Issue of shares
Transaction costs arising for share issue
Deferred tax asset due to transaction costs
arising for share issue
Employee share options -value of
employees service
Transfer of lapsed options
Issued Capital
$
26,701,073
-
-
-
Retained
Earnings
$
3,816,202
2,575,091
-
2,575,091
2,013,002
(117,679)
35,304
-
-
-
-
-
-
10,980
(10,980)
Reserves
$
24,140
-
4,383
4,383
-
-
-
8,920
Non-
controlling
interest
$
(16,939)
(49,251)
Total
$
30,524,476
2,525,840
-
4,383
(49,251)
2,530,223
-
-
-
-
-
-
2,013,002
(117,679)
35,304
8,920
-
(1,557,515)
Dividend paid
270,414*
(1,827,929)
-
Closing balance as at 30 June 2012
28,902,114
4,574,344
26,463
(66,190)
33,436,731
At 1 July 2012
28,902,114
Profit after income tax expense for the year
Other comprehensive income for the year,
net of tax
Total comprehensive income for the year
-
-
-
4,574,344
3,647,867
-
3,647,867
Transactions with owners in their capacity
as owners:
Issue of shares
Transaction costs arising for share issue
Deferred tax asset due to transaction costs
arising for share issue
Sale of controlled entity
Employee share options -value of
employees service
Transfer of lapsed options
15,893,202
(662,498)
198,749
-
-
-
-
-
-
-
-
9,780
Dividend paid
766,021*
(2,169,592)
Closing balance as at 30 June 2013
45,097,588
6,062,399
26,463
(66,190)
33,436,731
-
(258)
(258)
-
-
-
-
39,344
(9,780)
-
55,769
-
-
-
-
-
-
66,190
-
-
-
-
3,647,867
(258)
3,647,609
15,893,202
(662,498)
198,749
66,190
39,344
-
(1,403,571)
51,215,756
*Shares issued to shareholders that elect to participate in the Dividend Reinvestment Plan.
The statement of changes in equity is to be read in conjunction with the attached notes.
Page 24
Statement of Cash Flows
for the year ended 30 June 2013
Cash flows from operating activities
Net fees and charges from customers
Payments to suppliers and employees
Interest received
Interest paid
Income tax paid
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Consolidated
2013
$
Consolidated
2012
$
Notes
19,629,330
13,819,298
(14,753,148)
(10,242,851)
41,683
(358,058)
91,643
(166,736)
(1,396,346)
(1,155,741)
Net cash provided by operating activities
19(b)
3,163,461
2,345,613
Cash flows from investing activities
Payment for property, plant and equipment
Proceeds from property, plant and equipment
Net funds advanced to customers for loans
Proceeds from purchase of business
Payments for purchase of business
Net cash used in investing activities
Cash flows from financing activities
Proceeds from share issue
Repayment of hire purchase borrowings
Proceeds from borrowings
Repayment of borrowings
Dividend paid
Net cash provided by financing activities
(2,058,338)
(1,580,691)
136,582
-
(12,767,855)
(4,750,176)
-
(235,000)
98,662
(12,000)
(14,924,611)
(6,244,205)
15,010,703
(45,914)
3,130,445
(1,745,000)
(1,403,571)
14,946,663
1,895,325
(6,435)
32,901
-
(1,557,508)
364,283
Net increase/(decrease) in cash held
3,185,513
(3,534,309)
Cash and cash equivalents at the beginning of the year
1,256,406
4,790,715
Cash and cash equivalents at end of the year
19(a)
4,441,919
1,256,406
The statement of cash flows is to be read in conjunction with the attached notes.
Page 25
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to the financial statements
Contents
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
A
Summary of significant accounting policies
Revenue
Other items included in net profit from continuing operations
Retained earnings
Income tax
Earnings per share
Dividends
Share based payments
Cash and cash equivalents
Loans and other receivables
Other assets
Property, plant and equipment
Intangible assets
Trade and other payables
Provisions
Borrowings
Issued capital
Reserves
Statement of cash flows
Business combinations
Significant matters subsequent to the reporting date
Segment information
Contingent liabilities
Controlled entities
Financial instruments
Leases
Auditor’s remuneration
Related party disclosures
Parent entity financial information
ASX Additional information
Page 26
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to the Financial Statements
for the year ended 30 June 2013
Introduction
The financial report covers Money3 Corporation Limited (“Money3” or “Company”) and its controlled entities.
Money3 is a Company limited by shares whose shares are publicly traded on the Australian Securities
Exchange (“ASX”). Money3 is incorporated and domiciled in Australia. Money3 Corporation Limited and its
controlled entities (“Group”) were accounted for as a reverse acquisition on 1 July 2006. The presentation
currency and functional currency of the Group is Australian dollars and amounts are rounded to the nearest
dollar.
Separate financial statements for Money3 Corporation Limited as an individual entity are no longer presented
as the consequence of a change to the Corporations Act 2001, however, limited financial information for
Money3 Corporation Limited as an individual entity is included in Note 29.
The principal activity of the Group during the financial year was to provide small cash loans in the form of line
of credit and personal loans, car loans, cheque cashing, equipment and motor vehicle rental and international
money transfer services.
The financial statements are presented in Australian dollars and amounts are rounded to the nearest dollar.
The financial report was authorised for issue by the Board of Directors of Money3 Corporation Limited at a
directors meeting on the date shown on the Declaration by the Board of Directors attached to the Financial
Statements.
1. Summary of significant accounting policies
a) Basis of accounting
The financial report is a general purpose financial report which has been prepared in accordance with the
Corporations Act 2001, Australian Accounting Standards and Interpretations and complies with other
requirements of the law, as appropriate for profit oriented entities. The financial report comprises the
consolidated financial statements of the group.
The financial statements comply with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
The financial statements have been prepared on an accrual basis and are based on historical costs modified by
the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value
basis of accounting has been applied.
The financial statements have been prepared on a going concern basis. The financial statements have been
prepared in accordance with Australian Accounting Standards, which are based on the Company continuing as
a going concern which assumes the realisation of assets and the extinguishment of liabilities in the normal
course of business and at the amounts stated in the financial report.
The following significant accounting policies have been adopted in the preparation and presentation of the
financial report. The accounting policies have been consistently applied and except where there is a change in
accounting policy, are consistent with those of the previous year.
Page 27
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
New, revised or amending accounting standards and Interpretations adopted
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the
current reporting period. The adoption of these Accounting Standards and Interpretations did not have any
significant impact on the financial performance or position of the consolidated entity. Disclosures were
impacted as follows:
AASB 2011-9 Amendments to Australian Accounting Standards - Presentation of Items of Other Comprehensive
Income
The consolidated entity has applied AASB 2011-9 amendments from 1 July 2012. The amendment requires
grouping together of items within other comprehensive income on the basis of whether they will eventually be
'recycled' to the profit or loss (reclassification adjustments). The change provides clarity about the nature of
items presented as other comprehensive income and the related tax presentation. The amendment also
introduced the term 'Statement of profit or loss and other comprehensive income' clarifying that there are
two discrete sections, the profit or loss section (or separate statement of profit or loss) and other
comprehensive income section.
b) New Accounting Standards and Interpretations not yet mandatory or early
adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not
yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended
30 June 2013. The consolidated entity's assessment of the impact of these new or amended Accounting
Standards and Interpretations, most relevant to the consolidated entity, are set out below.
AASB 9 Financial Instruments, 2009-11 Amendments to Australian Accounting Standards arising
from AASB 9, 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 and
2012-6 Amendments to Australian Accounting Standards arising from AASB 9
This standard and its consequential amendments are applicable to annual reporting periods beginning on or
after 1 January 2015 and completes phase I of the IASB's project to replace IAS 39 (being the international
equivalent to AASB 139 'Financial Instruments: Recognition and Measurement'). This standard introduces new
classification and measurement models for financial assets, using a single approach to determine whether a
financial asset is measured at amortised cost or fair value. The accounting for financial liabilities continues to
be classified and measured in accordance with AASB 139, with one exception, being that the portion of a
change of fair value relating to the entity’s own credit risk is to be presented in other comprehensive income
unless it would create an accounting mismatch. The consolidated entity will adopt this standard from 1 July
2015 but the impact of its adoption is yet to be assessed by the consolidated entity.
Page 28
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
b) New Accounting Standards and Interpretations not yet mandatory or early adopted (continued)
AASB 10 Consolidated Financial Statements
This standard is applicable to annual reporting periods beginning on or after 1 January 2013. The standard has
a new definition of 'control'. Control exists when the reporting entity is exposed, or has the rights, to variable
returns (e.g. dividends, remuneration, returns that are not available to other interest holders including losses)
from its involvement with another entity and has the ability to affect those returns through its 'power' over
that other entity. A reporting entity has power when it has rights (e.g. voting rights, potential voting rights,
rights to appoint key management, decision making rights, kick out rights) that give it the current ability to
direct the activities that significantly affect the investee’s returns (e.g. operating policies, capital decisions,
appointment of key management). The consolidated entity will not only have to consider its holdings and
rights but also the holdings and rights of other shareholders in order to determine whether it has the
necessary power for consolidation purposes. The adoption of this standard from 1 July 2013 may have an
impact where the consolidated entity has a holding of less than 50% in an entity, has de facto control, and is
not currently consolidating that entity. The adoption of this standard from 1 July 2013 will not have a material
impact on the consolidated entity.
AASB 11 Joint Arrangements
This standard is applicable to annual reporting periods beginning on or after 1 January 2013. The standard
defines which entities qualify as joint ventures and removes the option to account for joint ventures using
proportional consolidation. Joint ventures, where the parties to the agreement have the rights to the net
assets will use equity accounting. Joint operations, where the parties to the agreements have the rights to the
assets and obligations for the liabilities will account for the assets, liabilities, revenues and expenses
separately, using proportionate consolidation. The adoption of this standard from 1 July 2013 will not have a
material impact on the consolidated entity.
AASB 12 Disclosure of Interests in Other Entities
This standard is applicable to annual reporting periods beginning on or after 1 January 2013. It contains the
entire disclosure requirement associated with other entities, being subsidiaries, associates and joint ventures.
The disclosure requirements have been significantly enhanced when compared to the disclosures previously
located in AASB 127 'Consolidated and Separate Financial Statements', AASB 128 'Investments in Associates',
AASB 131 'Interests in Joint Ventures' and Interpretation 112 'Consolidation - Special Purpose Entities'. The
adoption of this standard from 1 July 2013 will significantly increase the amount of disclosures required to be
given by the consolidated entity such as significant judgements and assumptions made in determining whether
it has a controlling or non-controlling interest in another entity and the type of non-controlling interest and
the nature and risks involved.
AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting
Standards arising from AASB 13
This standard and its consequential amendments are applicable to annual reporting periods beginning on or
after 1 January 2013. The standard provides a single robust measurement framework, with clear measurement
objectives, for measuring fair value using the 'exit price' and it provides guidance on measuring fair value when
a market becomes less active. The 'highest and best use' approach would be used to measure assets whereas
liabilities would be based on transfer value. As the standard does not introduce any new requirements for the
use of fair value, its impact on adoption by the consolidated entity from 1 July 2013 should be minimal,
although there will be increased disclosures where fair value is used.
Page 29
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
b) New Accounting Standards and Interpretations not yet mandatory or early adopted (continued)
AASB 127 Separate Financial Statements (Revised)
AASB 128 Investments in Associates and Joint Ventures (Reissued)
These standards are applicable to annual reporting periods beginning on or after 1 January 2013. They have
been modified to remove specific guidance that is now contained in AASB 10, AASB 11 and AASB 12. The
adoption of these revised standards from 1 July 2013 will not have a material impact on the consolidated
entity.
AASB 119 Employee Benefits (September 2011) and AASB 2011-10 Amendments to Australian
Accounting Standards arising from AASB 119 (September 2011)
This revised standard and its consequential amendments are applicable to annual reporting periods beginning
on or after 1 January 2013. The amendments make changes to the accounting for defined benefit plans and
the definition of short -term benefits from 'due to' to 'expected to' be settled within 12 months. The later will
require annual leave that is not expected to be wholly settled within 12 months to be discounted allowing for
expected salary levels in the future period when the leave is expected to be taken. The adoption of the revised
standard from 1 July 2013 will not have a material impact on the consolidated entity.
AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key
Management Personnel Disclosure Requirement
These amendments are applicable to annual reporting periods beginning on or after 1 July 2013, with early
adoption not permitted. They amend AASB 124 'Related Party Disclosures' by removing the disclosure
requirements for individual key management personnel ('KMP'). The adoption of these amendments from 1
July 2014 will remove the duplication of information relating to individual KMP in the notes to the financial
statements and the directors report. As the aggregate disclosures are still required by AASB 124 and during the
transitional period the requirements may be included in the Corporations Act or other legislation, it is
expected that the amendments will not have a material impact on the consolidated entity.
AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and
Joint Arrangements Standards
The amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The
amendments make numerous consequential changes to a range of Australian Accounting Standards and
Interpretations, following the issuance of AASB 10, AASB 11, AASB 12 and revised AASB 127 and AASB 128. The
adoption of these amendments from 1 July 2013 will not have a material impact on the consolidated entity.
AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial
Assets and Financial Liabilities
The amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The
disclosure requirements of AASB 7 'Financial Instruments: Disclosures' (and consequential amendments to
AASB 132 'Financial Instruments: Presentation') have been enhanced to provide users of financial statements
with information about netting arrangements, including rights of set-off related to an entity's financial
instruments and the effects of such rights on its statement of financial position. The adoption of the
amendments from 1 July 2013 will increase the disclosures by the consolidated entity.
Page 30
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
b) New Accounting Standards and Interpretations not yet mandatory or early adopted (continued)
AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and
Financial Liabilities
The amendments are applicable to annual reporting periods beginning on or after 1 January 2014. The
amendments add application guidance to address inconsistencies in the application of the offsetting criteria in
AASB 132 'Financial Instruments: Presentation', by clarifying the meaning of "currently has a legally
enforceable right of set-off"; and clarifies that some gross settlement systems may be considered to be
equivalent to net settlement. The adoption of the amendments from 1 July 2014 will not have a material
impact on the consolidated entity.
AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements
2009-2011 Cycle
The amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The
amendments affect five Australian Accounting Standards as follows: Confirmation that repeat application of
AASB 1 (IFRS 1) 'First-time Adoption of Australian Accounting Standards' is permitted; Clarification of
borrowing cost exemption in AASB 1; Clarification of the comparative information requirements when an
entity provides an optional third column or is required to present a third statement of financial position in
accordance with AASB 101 'Presentation of Financial Statements'; Clarification that servicing of equipment is
covered by AASB 116 'Property, Plant and Equipment', if such equipment is used for more than one period;
clarification that the tax effect of distributions to holders of equity instruments and equity transaction costs in
AASB 132 'Financial Instruments: Presentation' should be accounted for in accordance with AASB 112 ‘Income
Taxes’; and clarification of the financial reporting requirements in AASB 134 'Interim Financial Reporting' and
the disclosure requirements of segment assets and liabilities. The adoption of the amendments from 1 July
2013 will not have a material impact on the consolidated entity.
AASB 2012-9 Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation
1039
This amendment is applicable to annual reporting periods beginning on or after 1 January 2013. The
amendment removes reference in AASB 1048 following the withdrawal of Interpretation 1039. The adoption
of this amendment will not have a material impact on the consolidated entity.
AASB 2012-10 Amendments to Australian Accounting Standards – Transition Guidance and Other
Amendments
These amendments are applicable to annual reporting periods beginning on or after 1 January 2013. They
amend AASB 10 and related standards for the transition guidance relevant to the initial application of those
standards. The amendments clarify the circumstances in which adjustments to an entity’s previous accounting
for its involvement with other entities are required and the timing of such adjustments. The adoption of these
amendments will not have a material impact on the consolidated entity.
c) Parent entity financial information
The financial information for the parent entity Money3 Corporation Limited, disclosed in note 29 has been
prepared on the same basis as the consolidated financial statements.
d) Principles of consolidation
The consolidated financial statements comprise the financial statements of the Company and the Group.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company
using consistent accounting policies.
Page 31
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
d) Principles of consolidation (continued)
A controlled entity is an entity controlled by the Company. Control exists where the Company has the capacity
to dominate the decision making in relation to the financial and operating policies of other entities so that the
other entities operate with the Company to achieve the objectives of the Company.
The consolidated financial statements include the information and results of each subsidiary from the date on
which the company obtains control and until such time as the company ceases to control such entity. In
preparing the consolidated financial statements, all intercompany balances and transactions, and unrealised
profits/losses arising within the consolidated entity are eliminated in full.
Non-controlling interests in the result and equity of subsidiaries are shown separately in the consolidated
statement of profit or loss and other comprehensive income, statement of financial position and statement of
changes in equity respectively.
e) Critical accounting estimates, assumptions and judgements
In the application of Australian Accounting Standards, management is required to make judgements, estimates
and assumptions about the carrying value of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results of which form the basis of
making the judgements. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revisions affect both current and future periods.
Judgments made in the application of Australian Accounting Standards that have significant effects on the
financial statements and estimates with a significant risk of material adjustments in the next year are
disclosed, where applicable in the relevant notes to the financial statements.
Judgments made in applying accounting policies that have the most significant effect on the amounts
recognised in the financial statements concern the estimated impairment of investments in subsidiaries in the
parent entity, associated goodwill on consolidation of subsidiaries, allowance for doubtful debts and share
based payments.
Goodwill
The consolidated entity tests annually whether goodwill has suffered any impairment in accordance with the
accounting policy stated in Note 1(j). The Directors are of the opinion that there has been no impairment of
goodwill. Refer to Note 13 for further details.
Allowance for doubtful debts
The Company assesses impairment regularly. The allowance for doubtful debts represents management's
estimate of the losses incurred in the loan book as at 30 June 2013 based on past experience and judgement.
At 30 June 2013, the allowances for doubtful debts were $988,736 (2012: $834,586).
Share based payments
Share based payments are accounting for at fair valued using the Binomial model. See Note 8 for further
discussion.
f) Cash and cash equivalents
Cash and cash equivalents in the Statement of Financial Position comprise cash at bank and in hand and short-
term deposits with an original maturity of three months or less. For the purposes of the Statement of Cash
Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.
Page 32
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
g) Loans and other receivables
Loans and other receivables are non-derivative financial assets, with fixed and determinable payments that are
not quoted in an active market. Loans and other receivables are initially recognised at fair value, including
direct transaction costs, and are subsequently measured at amortised cost using the effective interest method.
Collectability of receivables are reviewed on an ongoing basis, and an allowance for doubtful debts is
recognised when there is objective evidence that the collection of the full amount is no longer probable. Bad
debts are written off when identified.
Receivables from related parties are recognised and carried at the nominal amount due.
Loans and other receivables are due for settlement at various times in line with the terms of their contracts.
h) Investments and other financial assets
Investments are recognised and derecognised on trade date where the purchase or sale of an investment is
under a contract whose terms require delivery of the investment within the time frame established by the
market concerned, and are initially measured at fair value, net of transaction costs except for those financial
assets classified as fair value through profit or loss which are initially measured at fair value.
Investments in subsidiaries are measured at cost in the parent entity financial statements. Refer Note 29.
Other financial assets are classified into the following specified categories: financial assets 'at fair value
through profit or loss', 'held-to-maturity investments', 'available-for-sale' financial assets, and 'loans and
receivables'. The classification depends on the nature and purpose of the financial assets and is determined at
the time of initial recognition.
Income is recognised on an effective interest rate basis for debt instruments other than those financial assets
'at fair value through profit or loss'.
Impairment of financial assets
Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment
at each reporting date. Financial assets are impaired where there is objective evidence that as a result of one
or more events that occurred after the initial recognition of the financial asset the estimated future cash flows
of the investment have been impacted. For financial assets carried at amortised cost, the amount of the
impairment is the difference between the asset's carrying amount and the present value of estimated future
cash flows, discounted at the original effective interest rate.
The carrying amount of the original asset is reduced by the impairment loss directly for all financial assets with
the exception of trade and other receivables where the carrying amount is reduced through the use of an
allowance account. When a trade or other receivable is uncollectible, it is written off against the allowance
account. Subsequent recoveries of amounts previously written off are credited against the allowance account.
Changes in the carrying amount of the allowance account are recognised in profit or loss.
In respect of available-for-sale equity instruments, any subsequent increase in fair value after an impairment
loss is recognised directly in equity.
Page 33
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
i) Business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether
equity instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity
instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of
any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the
acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net assets.
All acquisition costs are expensed as incurred to profit or loss.
On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities
assumed for appropriate classification and designation in accordance with the contractual terms, economic
conditions, the consolidated entity's operating or accounting policies and other pertinent conditions in
existence at the acquisition-date.
Where the business combination is achieved in stages, the consolidated entity remeasures its previously held
equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value and
the previous carrying amount is recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value.
Subsequent changes in the fair value of contingent consideration classified as an asset or liability is recognised
in profit or loss. Contingent consideration classified as equity is not remeasured and its subsequent settlement
is accounted for within equity.
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-
controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any
pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-
existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to
the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-
date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-
controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held
equity interest in the acquirer.
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts
the provisional amounts recognised and also recognises additional assets or liabilities during the measurement
period, based on new information obtained about the facts and circumstances that existed at the acquisition-
date. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or
(ii) when the acquirer receives all the information possible to determine fair value.
j) Intangible assets
All intangible assets acquired in a business combination are identified and recognised separately from goodwill
where they satisfy the definition of an intangible asset and their fair value can be measured reliably.
Goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of the entity's share of the net
identifiable assets of the acquired business at the date of acquisition. Goodwill is not amortised. Instead,
goodwill is tested for impairment, annually or more frequently if events or changes in circumstances indicate
that it might be impaired and is carried at cost less accumulated impairment losses.
Page 34
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
j) Intangible assets (continued)
Software
Costs incurred in developing products or systems that will contribute to future periods through revenue
generation and/or cost reduction are capitalised to software and systems. Costs capitalised include external
direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the
project.
k) Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested
annually for impairment or more frequently if events or changes in circumstances indicate that they might be
impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate the
carrying amount may not be recoverable. An impaired loss is recognized for the amount by which the assets
carrying amount may not be recoverable.
At each reporting date, the consolidated entity reviews the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of
the impairment loss (if any). Where the asset does not generate cash flows that are independent from other
assets, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the
asset belongs.
l) Acquisition of assets
The cost method of accounting is used for all acquisitions of assets regardless of whether shares or other
assets are acquired. Cost is determined as the fair value of the assets given up, shares issued or liabilities
undertaken at the date of acquisition. Acquisition related costs are expensed as incurred. Where shares are
issued in an acquisition, the value of the shares is determined having reference to existing markets.
m) Property, plant and equipment
Plant and equipment, leasehold improvements and equipment under finance lease are stated at cost less
accumulated depreciation and any impairment losses. Cost includes expenditure that is directly attributable
to the acquisition of the item.
Depreciation is provided on property, plant and equipment and is calculated on a diminishing value basis over
its estimated useful life net of estimated residual values. The estimated useful lives, residual values and
depreciation method are reviewed at the end of each reporting period.
The following rates are used in the calculation of depreciation:
Class of Fixed Asset
Leasehold Improvements
Motor Vehicles
Furniture, Equipment and Fittings
Rental Assets
Depreciation Rate
20% to 30% or remaining life of the lease
20% to 50%
20% to 37.5%
33% to 50%
Page 35
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
m) Property, plant and equipment (continued)
Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value
may be impaired. Impairment exists when the carrying value of an asset or cash-generating unit exceeds its
estimated recoverable amount. The asset or cash-generating unit is then written down to its recoverable
amount. Impairment losses are recognised in the Statement of Profit or Loss and Other Comprehensive
Income.
Disposals
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on disposal of an asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in profit or loss in the year the asset is disposed.
n) Trade and other payables
Trade and other payables are recognised when the consolidated entity becomes obliged to make future
payments resulting from the purchase of goods and services. The amounts are unsecured and are usually paid
within 30 days of recognition.
o) Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST) except:
1. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as
part of the cost of acquisition of an asset or as part of an item of expense, or
2. for receivables and payables which are recognised inclusive of GST, the net amount of GST recoverable
from, or payable to the taxation authority is included as part of receivables or payables in the
Statement of Financial Position. Receivables and payables are stated with the amount of GST
included.
Cash flows are included in the Statement of Cash Flows on a gross basis. The GST component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority,
is classified as an operating cash flow.
p) Provisions
Provisions are recognised when the economic entity has a present obligation (legal, equitable or constructive)
as a result of a present or past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where
a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is
the discounted present value of those cash flows. As that discount is unwound it gives rise to interest expense
in the income statement.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and
the amount of the receivable can be measured reliably.
Page 36
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
p) Provisions (continued)
If the effect of the time value of money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and,
where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.
q) Issued capital
Issued and paid up capital is recognised at the fair value of the consideration received by the Company.
Transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the
share proceeds received.
r) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the economic
entity and the revenue can be reliably measured.
Loan fees and charges
Revenue associated with loans such as application and credit fees are deferred and recognised over the life of
the loans using the effective interest rate method (i.e. on a reducing balance basis) over the loan period.
Interest
Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the
net carrying amount of the financial asset.
Dividends
Revenue is recognised when Money3 Corporation Limited has the right to receive the payment.
Rendering of service
Revenue from the rendering of services such as cheque cashing and money transfer is recognised in the
Statement of Profit or Loss and Other Comprehensive Income when the service is performed and there are no
unfulfilled service obligations that will restrict the entitlement to receive the sales consideration.
Rental income
Rental income is recognised in the Statement of Profit or Loss and Other Comprehensive Income as rent
accrues on a daily basis in line with lease agreements. The company has a policy of ceasing to recognise
income on operating leases when a rental payment is not made on time. Revenue will only recommence
accruing when payments recommence.
s) Employee benefits
Wages and salaries and annual leave
The provision for employee benefits relates to liabilities for wages and salaries and annual leave expected to
be settled within 12 months of the reporting date and is recognised in respect of employees' service up to the
reporting date measured at the amounts expected to be paid when the liabilities are settled.
Page 37
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
s) Employee benefits (continued)
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the
present value of expected future payments to be made in respect of services provided by employees up to the
reporting date. Consideration is given to expected future wage and salary levels, experience of employee
departures and periods of service. Expected future payments are discounted using market yields at the
reporting date on national government bonds with terms to maturity and currency that match, as closely as
possible, the estimated future cash outflows.
Superannuation
The amount charged to the Statement of Profit or Loss and Other Comprehensive Income in respect of
superannuation represents the contributions made by the consolidated entity to the employees' nominated
superannuation funds.
t) Income tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the
taxable profit or loss for the period. It is calculated using tax rates and tax laws that have been enacted or
substantively enacted by the reporting date. Current tax for current and prior periods is recognised as a
liability (or asset) to the extent that it is unpaid (or refundable).
Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of temporary
differences arising from differences between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax base for those items.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets
are recognized to the extent that it is probable that sufficient taxable amounts will be available against
deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax
assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial
recognition of assets and liabilities (other than as a result of a business combination) which affects neither
taxable income nor accounting profit. Furthermore, a deferred tax liability is not recognised in relation to
taxable temporary differences arising from goodwill.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries,
branches, associates and joint ventures except where the consolidated entity is able to control the reversal of
the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable
future. Deferred tax assets arising from deductible temporary differences associated with these investments
and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits
against which to utilise the benefits of the temporary differences and they are expected to reverse in the
foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s)
when the assets and liabilities giving rise to them are realised or settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities
and assets reflects the tax consequences that would follow from the manner in which the consolidated entity
expects, at reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances they relate to are levied by the same taxation
authority.
Page 38
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
t) Income tax (continued)
Current tax assets and liabilities are offset where the entity has a legally enforceable right to offset and the
entity intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax is recognised as an expense or income in the Statement of Profit or Loss and Other
Comprehensive Income, except when it relates to items credited or debited directly to equity, in which case
the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a
business combination, in which case it is taken into account in the determination of goodwill.
On 1 July 2010 Money3 Corporation Limited ('the head entity') and its wholly-owned Australian controlled
entities formed a tax consolidated group under the tax consolidation regime. The head entity and the
controlled entities in the tax consolidated group continue to account for their own current and deferred tax
amounts. The tax consolidated group has applied the group allocation approach in determining the
appropriate amount of taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from controlled entities in the tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as
amounts receivable from or payable to other entities in the tax consolidated group. The tax funding
arrangement ensures that the intercompany charge equals the current tax liability or benefit of each tax
consolidated group member, resulting in neither a contribution by the head entity to the subsidiaries nor a
distribution by subsidiaries to the head entity.
u) Leases
Leases under which the Company or its controlled entities assume substantially all the risks and benefits of
ownership are classified as finance leases. Other leases are classified as operating leases.
The Group as lessee
Finance leases
Finance leases, which transfer to the economic entity substantially all the risks and benefits incidental to
ownership of the leased item, are recognised at the inception of the lease at the fair value of the leased
property or, if lower, at the present value of the minimum lease payments, with a corresponding liability
included in current and non-current payables.
Finance leased assets are amortised on a straight line basis over the estimated useful life of the asset. Finance
lease payments are allocated between interest expense and reduction of lease liability over the term of the
lease. The interest expense is determined by applying the interest rate implicit in the lease to the outstanding
lease liability at the beginning of each lease payment period. Finance charges are charged directly against
income. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or
the lease term.
Operating leases
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified
as operating leases. Payments made under operating leases are charged to the Statement of Profit or Loss and
Other Comprehensive Income on a straight line basis over the term of the lease.
The Group as lessor
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised on a straight-line basis over the lease term.
Page 39
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
v) Borrowings
Borrowings are initially measured at fair value, net of transaction costs. Borrowings are subsequently
measured at amortised cost using the effective interest method, with interest expense recognised on an
effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the financial liability, or, where
appropriate, a shorter period.
Borrowings are classified as current liabilities unless the consolidated entity has an unconditional right to defer
settlement of the liability for at least 12 month after the reporting date.
Borrowing costs are recognised as an expense in the period in which they are incurred except borrowing costs
that are directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period to get ready for its intended use or sale. In this case the borrowing costs are capitalised as
part of the cost of such a qualifying asset.
w) Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
x) Share based payment arrangements
Goods or services received or acquired in a share-based payment transaction are recognised as an increase in
equity if the goods or services were received in an equity-settled share based payment transaction or as a
liability if the goods and services were acquired in a cash settled share-based payment transaction.
For equity settled share-based payments, goods or services received are measured directly at the fair value of
the goods and services received provided this can be estimated reliably. If a reliable estimate cannot be made
the value of the goods or services is determined indirectly by reference to the fair value of the equity
instruments issued. The share option reserve is used to record the grant of share options to directors and
senior employees. Amounts are transferred out of the reserve account into issued capital when the options
are exercised or to retained earnings if the options lapse unexercised.
y) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
Where a net loss is made for the period, basic EPS and diluted EPS are the same, because, the inclusion of
options in the earnings per share calculations does not result in further dilution.
Page 40
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
1. Summary of significant accounting policies (continued)
z) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at
the discretion of the entity, on or before the end of the financial year but not distributed at reporting date.
2. Revenue
Revenue from operating activities
Loan fees and charges
Cheque cashing fees
Rental services
Other
Revenue from non-operating activities
Interest income from financial institutions
Total revenue from continuing operations
Notes
Consolidated
2013
$
Consolidated
2012
$
20,182,569
800,571
1,525,896
236,407
22,745,443
41,683
22,787,126
14,019,376
797,538
404,393
181,943
15,403,250
91,643
15,494,893
3. Other items included in net profit from continuing operations
Profit before income tax has been determined after:
Other Income
Discount on acquisition
Profit on sale of controlled entity
Employment
Salary and employee benefits expense
Share based payments
Defined contributed superannuation
Other employment costs
Total Employment costs
Depreciation and amortisation
Leasehold improvements
Motor vehicles
Furniture, equipment and fittings
Rental assets
Total depreciation and amortisation
Operating lease
Minimum rent payments
Finance costs (a)
Interest on bank overdrafts and loans
Interest on obligations under finance lease
Total finance costs
20
-
86,987
100,350
-
6,904,705
39,344
595,561
849,869
8,389,479
163,815
18,055
288,982
836,698
1,307,550
5,132,993
8,920
478,708
435,360
6,055,981
113,965
15,856
225,647
188,067
543,535
1,347,328
968,172
354,262
3,796
358,058
157,904
8,832
166,736
(a) The weighted average interest rate on funds borrowed generally is 11.7% p.a. (2012: 11.3% p.a.)
Page 41
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
4. Retained Earnings
Retained earnings at 1 July
Net profit
Dividends Paid (note 7)
Lapsed Options transferred from share option reserve
Retained earnings at 30 June
5. Income Tax
Consolidated
2013
$
Consolidated
2012
$
4,574,344
3,647,867
(2,169,592)
9,780
6,062,399
3,816,202
2,575,091
(1,827,929)
10,980
4,574,344
a) Income tax expense recognised in the Statement of profit and loss and other comprehensive income
Current tax expense
Current tax expense in respect of current year
1,709,458
1,148,869
Adjustments recognised in current year in relation to the current tax of previous years
-
-
Deferred tax
Deferred tax income related to the origination and reversal of temporary differences
in relation to deferred tax assets
Total tax expense in the Statement of profit or loss and other comprehensive Income
1,709,458
1,148,869
(128,851)
1,580,607
(61,947)
1,086,922
b) The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense in the
financial statements as follows
Profit from continuing operations before income tax expense
Income tax calculated at 30% (2012: 30%)
Add/(less):
Non assessable income
Share based payments
Non deductible expenses
Tax losses from other jurisdictions
Under provision in prior years
Income tax expense
5,228,474
1,568,542
-
11,779
286
-
1,580,607
-
3,612,762
1,083,829
(30,105)
2,676
-
30,522
1,086,922
-
1,580,607
1,086,922
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate
entities on taxable profits under Australian tax law. There has been no change in the corporate tax rate when
compared with the previous reporting period.
c) Current tax liabilities
Income tax payable attributable to:
Entities in the consolidated group
1,104,140
1,104,140
791,027
791,027
Page 42
Notes to Financial Statements for the year ended 30 June 2013 (continued)
5. Income tax (continued)
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
d) Deferred tax balances
Deferred tax assets comprises:
Capital raising costs
Provisions and accruals
Movements:
Opening balance
Credited to profit or loss
Credited to equity
Closing balance
e) Tax losses
Consolidated
2013
$
Consolidated
2012
$
210,880
612,919
823,799
496,198
128,852
198,749
823,799
74,290
421,908
496,198
398,947
61,947
35,304
496,198
Unused tax losses for which no deferred tax assets has been recognised
-
36,789
All unused tax losses were incurred by Singaporean entity which was disposed of in
the 2013 financial year.
6. Earnings per share
a) Basic and diluted earnings per share
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
b) The earnings and weighted average number of ordinary shares used in the
calculation of basic and diluted earnings per share are as follows:
Earnings used in basic and diluted earnings per share (net profit)
Weighted average number of ordinary shares for the purpose of basic earnings per
share
Weighted average number of ordinary and potential ordinary shares used in the
calculation of diluted earnings per share as follows:
Weighted average number of ordinary shares basic
Dilutive potential ordinary shares
Weighted average number of ordinary shares and potential ordinary shares used in
calculation of diluted earnings per share
(i) Options
Consolidated
2013
Cents
Consolidated
2012
Cents
6.16
5.87
5.87
5.76
3,647,867
2,575,091
Number
Number
59,258,626
43,831,868
59,258,626
2,905,068
43,831,868
900,274
62,163,694
44,732,142
Options granted to employees are considered to be potential ordinary shares and have been included in the
determination of diluted earnings per share to the extent to which they are dilutive. The options have not
been included in the determination of basic earnings per share. Details relating to options are set out in
note 8.
Page 43
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
7. Dividends
Recognised amounts
Fully paid ordinary shares
2013
Cents per
share
2013
$
2012
Cents per
share
2012
$
Final dividend fully franked at 30% tax rate
Interim dividend fully franked at 30% tax rate
2.25
1.75
1,098,748
1,070,844
2.5
1.75
1,071,246
756,683
Unrecognised amounts
Fully paid ordinary shares
Final dividend fully franked at 30% tax rate
2.25
1,760,005
2.25
1,098,747
On 29 August 2013, the directors declared a fully franked final dividend of 2.25 cents per share to the holders
of fully paid ordinary shares in respect of the financial year ended 30 June 2013, to be paid to shareholders on
28 October 2013. The dividend will be paid to shareholders on the Register of Members on 11 October 2013.
This dividend has not been included as a liability in these financial statements. The total estimated dividend to
be paid is $1,760,005.
Dividend Franking Credits
Franking credits available for subsequent financial years based on a tax rate of 30%
(2012 – 30%) (i)
Impact on franking account balance of dividends not recognised (ii)
Consolidated
2013
$
Consolidated
2012
$
2,985,935
(754,288)
2,986,226
(470,892)
(i) The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for:
- franking credit that will arise from the payment of the amount of the provision for income tax;
- franking debits that will arise from the payment of dividends recognised as a liability at the reporting date; and
- franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
(ii) The consolidated group has been formed into a consolidated tax group therefore the franking credits have been
consolidated to the parent entity to pay fully franked dividends to shareholders on 26 October 2013. The impact on the
franking account of the dividend recommended by the directors since year end, but not recognised as liability at year end,
will be a reduction in the franking account of $754,288 (2012: $470,892).
8. Share based payments
Movement in the share options of the consolidated entity during the financial year are summarized below.
Balance at 1 July
Lapsed during the financial period
Granted during the financial period
Balance at 30 June
No options were exercised, forfeited, or expired during the period.
2013
Number
2012
Number
800,000
(200,000)
2,950,000
3,550,000
1,000,000
(200,000)
-
800,000
Page 44
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
8. Share based payments (continued)
The Company has a total of 1,600,000 options on issue (2012: 800,000 options) to the Directors (or their
nominees) ("Director Options").
Issue Date
Options Granted
Exercise Price
Expiry Date
Vesting Date
Scott Baldwin
Scott Baldwin
Scott Baldwin
Scott Baldwin
27 November 2009
27 November 2009
27 November 2009
200,000
200,000
200,000
30 September 2012
1,000,000
Options on issue have the following conditions:-
$0.70
$0.85
$1.00
$0.50
31 December 2013
31 December 2012
31 December 2014
31 December 2013
31 December 2015
31 December 2014
30 September 2017
30 September 2015
The options vest in full when an event occurs which give rise to a change in control of the Company.
If the Company after having granted these options restructures its issued share capital, ASX Listing
Rules will apply to the number of Shares issued to the option holder on exercise of an option.
Options will not be listed on ASX but application will be made for quotation of the shares resulting
from the exercise of the options.
On issue of the resulting shares, they will rank equally with ordinary shares on issue at that time.
Share options carry no rights to dividends and no voting rights. In accordance with the terms of the
share option schemes, options may be exercised at any time from the date on which they vest to the
date of their expiry, subject to any additional specific requirements of the particular allocation
Consideration received on the exercise of options is recognised as contributed equity. During the financial year
ended 30 June 2013 and 30 June 2012 no options were exercised.
The weighted average share price during the year was $0.56 (2012: $0.39)
Options
Options are granted under the Money3 Corporation Limited's Director and Employee Share Option Plan.
Options are granted under the plan for no consideration. The board meets to determine eligibility for the
granting of options, and to determine the quantity and terms of options that will be granted.
The valuation of options is determined by independent experts using the Binomial option pricing model taking
into account the terms and conditions upon which the instruments were granted.
Options granted under the plan carry no dividend or voting rights
The expected price volatility is based on the historical volatility (based on the remaining life of the options),
adjusted for any expected changes to future volatility due to publicly available information.
The model inputs for options on issue at 30 June 2013 included:-
Director - Expire
31/12/13
Director - Expire
31/12/14
Director - Expire
31/12/15
Employee
Exercise price
Grant date
Expiry date
Share price at grant date
Expected volatility
Expected dividend yield
Risk free rate
$0.70
$0.85
$1.00
$0.50
27 November 2009
27 November 2009
27 November 2009
16 November 2012
31 December 2013
31 December 2014
31 December 2015
16 November 2017
$0.45
40%
7.33%
4.8105
$0.45
40%
7.33%
4.925%
$0.45
40%
7.33%
5.000%
$0.43
40%
9.50%
2.52%
Page 45
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
8. Share based payments (continued)
The following reconciles the outstanding share options granted under the Executive Share Option Plan at the
beginning and end of the financial year.
2013
No of options
800,000
2,950,000
-
-
(200,000)
-
3,550,000
3.07 years
200,000
2013
Weighted
average
exercise price
$
2012
No of options
2012
Weighted
average
exercise price
$
0.79
1,000,000
0.73
-
-
-
0.60
-
0.56
0.70
-
-
-
(200,000)
-
800,000
1.3 years
200,000
-
-
-
0.50
-
0.79
0.60
Balance at beginning of year
Granted during the year
Forfeited during the year
Exercised during year
Lapsed during year
Expired during the year
Balance at end of year
Weighted average remaining contractual life
Exercisable at the end of the financial year
9. Cash and cash equivalents
Cash at bank and in hand
Reconciliation to cash and cash equivalents at the end of financial year
The above figures are reconciled to cash and cash equivalents at the end of the
financial year as shown in the statement of cash flows as follows:
Cash and cash equivalents
Bank overdraft (note 16)
Cash at bank and in hand
Consolidated
2013
$
Consolidated
2012
$
4,564,100
1,256,406
4,564,100
(122,181)
4,441,919
1,256,406
-
1,256,406
The Group's exposure to interest rate risk is discussed in note 25. The maximum expose to credit risk at the
end of the financial year is the carrying amount of each class of cash and cash equivalents mentioned above.
Page 46
Notes to Financial Statements for the year ended 30 June 2013 (continued)
10. Loans and other receivables
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Loans and other receivables
Allowance for doubtful debts
Current receivables
Non-current receivables
Total receivables
Consolidated
2013
$
Consolidated
2012
$
33,149,636
17,842,969
(988,736)
32,160,900
(834,586)
17,008,383
17,650,848
14,510,052
32,160,900
9,880,749
7,127,634
17,008,383
Loans and other receivables have been aged according to their original due date in the below ageing analysis,
including where repayment terms for certain long outstanding trade receivables have been renegotiated. The
carrying value of trade receivables after allowance for doubtful debts is considered a reasonable
approximation of fair value.
The following basis has been used to assess the allowance for doubtful debts required for loans:
an individual account by account assessment based on past credit history;
any prior knowledge of debtor insolvency or other credit risk; and
working with client managers on weekly basis to assess past due items to determine recoverability.
An allowance has been made for estimated irrecoverable loans amounts arising from the past provision of
services, determined by reference to past default experience. During the current financial year, the allowance
for doubtful debts increased by $ 154,150 (2012: increased by $137,462) in the Group. These amounts relate
mainly to customers experiencing financial hardships. This movement was recognised in the Statement of
Profit or Loss and Other Comprehensive Income. During the year the Group’s bad debt expense increased by
$926,247 (2012: decreased by $335,624). The consolidated entity actively reviews debtors for their
recoverability and these debts are expensed immediately when non recoverability is identified.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the
financial statements. The Group does not hold any collateral as security over loans below $5,000, and as such
did not take possession of any collateral for loans in this category. Security is generally taken for loans above
$5,000 and is secured by collateral of approximately $20,372,501 (2012: $8,016,569). The total fair value of
securities held for certain trade receivables is impracticable to determine for accounting disclosure as is the
fair value of any collateral sold or repledged. However, the security position against individual debtors is
considered by management in their evaluation of the recoverable amount.
Refer to Note 25 for more information on the risk management policy of the Group and the credit quality of
the entity’s loans and other receivables.
A reconciliation of the movement in the provision for impairment of loans and other receivables is shown
below:
Opening balance
Additional provisions
Receivables written off as uncollectible
Bad debts recovered
Closing balance
834,586
2,451,975
(2,718,607)
420,782
988,736
697,124
1,525,728
(2,133,576)
368,407
834,586
The creation and release of provision for impaired receivables has been included in the profit and loss.
Amounts charged to the allowance account are generally written off when there is no expectation of
recovering additional cash.
Page 47
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
11. Other assets
Current
Prepayments
Accrued Income
Refundable facility fee
Other
Non-Current
Rental deposits
There were no past due and impaired other debtors.
12. Property, plant and equipment
Consolidated
2013
$
Consolidated
2012
$
187,751
466,909
150,000
12,055
816,715
245,280
144,942
-
39,789
430,011
235,088
186,203
Motor
vehicles
$
Rental Assets
Leasehold
Improvements
$
$
Furniture,
Equipment and
Fittings
$
237,927
-
-
237,927
147,405
18,055
-
165,460
1,124,010
1,636,409
(196,702)
2,563,717
1,185,732
236,575
(28,452)
1,393,855
188,067
836,698
(53,573)
971,192
656,734
163,815
(9,530)
811,019
2,181,227
185,354
(24,406)
2,342,175
1,022,095
288,982
(2,640)
1,308,437
Total
$
4,728,896
2,058,338
(249,560)
6,537,674
2,014,301
1,307,550
(65,743)
3,256,108
72,467
1,592,525
582,836
1,033,738
3,281,566
Motor vehicles
on hire
purchase
$
Motor vehicles Rental Assets
Leasehold
Improvements
$
$
$
Furniture,
Equipment and
Fittings
$
Total
$
2013
Gross carrying amount
Balance at 1 July 2012
Additions
Disposals
Balance at 30 June 2013
Accumulated Depreciation
Balance at 1 July 2012
Depreciation expense
Disposals
Balance at 30 June 2013
Net carrying amount
As at 30 June 2013
2012
Gross carrying amount
Balance at 1 July 2011
Additions
Balance at 30 June 2012
93,500
144,427
1,124,010
1,185,732
2,181,227
93,500
144,427
-
-
-
1,124,010
884,458
301,274
2,025,820
155,407
3,148,205
1,580,691
4,728,896
Accumulated Depreciation
Balance at 1 July 2011
Depreciation expense
Balance at 30 June 2012
Net carrying amount
As at 30 June 2012
47,411
9,218
56,629
84,138
6,638
90,776
-
188,067
188,067
542,769
113,965
656,734
796,448
225,647
1,470,766
543,535
1,022,095
2,014,301
36,871
53,651
935,943
528,998
1,159,132
2,714,595
See accounting policy in Note 1(m), regarding useful life assumptions.
Assets and assets under hire purchase contracts are pledged as security for the related and hire purchase
liabilities.
Page 48
Notes to Financial Statements for the year ended 30 June 2013 (continued)
13. Intangible assets
Goodwill allocated to:
Secured operations
Unsecured operations
Total (in 2012 only 1 CGU was recognised)
Background
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Consolidated
2013
$
Consolidated
2012
$
10,294,854
5,068,633
n/a
n/a
15,363,487
15,363,487
Goodwill is allocated for impairment testing purposes to two cash generating units (CGU's), being the secured
operations and unsecured operations. The recoverable amount of the cash generating unit is based on a
number of key assumptions as detailed below.
Due to the growth of the business the directors have reorganised the reporting structure and monitor
operations on the basis of secured lending, unsecured lending and rental operations (not a material segment).
In accordance with the requirement of accounting standard AASB 136 Impairment of Assets the reallocation of
goodwill between the new segments was based on a relative value approach.
Impairment tests and key assumptions used
As at 30 June 2013, the directors concluded that there is no impairment of goodwill (2012: $nil).
The following are the key assumptions used in testing the recoverable value of goodwill:
a. Secured operations
Cash flows
The value in use calculations use cash flow projections based on past operating results and budgets approved
by the directors for the 30 June 2014 financial year extended over a further four year period, in total covering
a five-year period and a terminal value. The 30 June 2014 financial year budget allows a growth in operating
expenses of 110% and an increase in revenue of 88%.
Growth rate
The terminal value growth used to extrapolate cash flows beyond the five year period is 2.5%. Projected
revenue growth beyond the one-year period has been extrapolated using a 4% per annum growth rate.
Projected operating costs beyond the one-year period have been extrapolated using a 2.5% to 4% growth rate.
Discount rate
The discount rate applied to the cash flow projections is 18.54% pre tax. The discount rate is derived using the
capital asset pricing model by estimating the company’s weighted average cost of capital with appropriate
adjustment for cost of equity, risk free rate of interest, market risk premium and the beta of GICS Class 17 –
Diversified Financials sector.
b. Unsecured operations
Cash flows
The value in use calculations use cash flow projections based on past operating results and budgets approved
by the directors for the 30 June 2014 financial year extended over a further four year period, in total covering
a five-year period and a terminal value. The 30 June 2014 financial year budget allows for a growth in
operating expenses of 17% and an increase in revenue of 15%.
Page 49
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
13. Intangible assets (continued)
Growth rate
The terminal value growth used to extrapolate cash flows beyond the five year period is 2.5%. Projected
revenue growth beyond the one-year period have been extrapolated using a steady 4% per annum growth
rate. Projected operating costs beyond the one-year period have been extrapolated using a 2.5% to 4% growth
rate.
Discount rate
The discount rate applied to the cash flow projections is 18.54% pre tax. The discount rate is derived using the
capital asset pricing model by estimating the company’s weighted average cost of capital with appropriate
adjustment for cost of equity, risk free rate of interest, market risk premium and the beta of GICS Class 17 –
Diversified Financials sector.
c.2012 assumptions
In 2012 the key assumptions used to calculate cash flows were a growth in operating expenses of 26% in 2013
and in the following years of 2.5% to 3.5%, increase of revenue of 34% in 2013 and in the following years of
2.5% to 5%.
Impact of possible changes in key assumptions
Management believe that any reasonable possible change in the key assumptions in which the recoverable
amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount
of the CGU's.
14. Trade and other payables
Current
Trade and other payables
Non-Current
Trade and other payables
Consolidated
2013
$
Consolidated
2012
$
1,207,901
1,105,409
-
82,500
Trade creditors and other creditors are non interest bearing liabilities. Trade creditor payments are processed
once they have reached 30 days from the date of invoice for electronic funds transfer payments or cheque
payment or 30 days from the end of the month of invoice for other payments. No interest is charged on trade
payables.
All amounts are short term and the carrying values are considered to be a reasonable approximation of fair
value.
Page 50
Notes to Financial Statements for the year ended 30 June 2013 (continued)
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
15. Provisions
Current
Employee benefits – current (i)
Lease make good
Non-Current
Employee benefits – non-current
Consolidated
2013
$
Consolidated
2012
$
511,762
100,000
611,762
379,409
-
379,409
53,915
69,738
(i) The current provision for employee benefits includes accrued annual leave and long service leave. For long
service leave it covers all unconditional entitlements where employees have completed the required period of
service and also those where employees are entitled to pro-rata payments in certain circumstances. The entire
amount of the provision of $511,762 (2012: $379,409) is presented as current, since the group does not have
an unconditional right to defer settlement for ant of these obligations. However based on past experience,
the group does not expect all employees to take the full amount of accrued long service leave or require
payment within the next 12 months. The current leave obligations expected to be settled after 12 months is
$131,374,(2012: $108,050)
16. Borrowings
Current
Bank overdraft
-Borrowings
-Related parties (Note 28)
-Others
Hire Purchase liabilities
Fair value disclosures
122,181
-
355,000
2,575,000
2,930,000
-
3,052,181
150,000
1,394,555
1,544,555
45,914
1,590,469
The fair value of current borrowings approximates their carrying amount as the impact of discounting is not
significant.
Fair values of long term financial liabilities are based on cash flows discounted using fixed effective market
interest rates available to the Group.
No fair value changes have been included in profit or loss for the period as financial liabilities are carried at
amortised cost in the Statement of Financial Position.
Bank loans
Bank liabilities are denominated in Australian dollars. The bank facility is secured by a floating charge over the
Group’s assets.
Bank overdraft, bank loans and bills of exchange when utilised, bear interest at commercially negotiated rates.
All bank borrowings are subject to adherence to gearing and interest covenants and are subject to annual
review. The loan bears interest at the banks prime rates plus a margin payable monthly in arrears.
Page 51
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
16. Borrowings (continued)
Other borrowings
Other borrowings are funds at call repayable in 90 days at an fixed interest rate of 12% to 12.5%.
Financing facilities available
Total facilities
- Bank overdraft
- Bank loans and hire purchase facilities
Facilities used at reporting date
- Bank overdraft
- Bank loans and hire purchase facilities
Facilities unused at reporting date
- Bank overdraft
- Bank loans and hire purchase facilities
Total facilities
- Facilities used at reporting date
- Facilities unused at reporting date
Assets pledged as security
Non-current
Floating charge
- Plant and equipment
Total assets pledged as security
Consolidated
2013
$
Consolidated
2012
$
1,000,000
-
1,000,000
122,181
-
122,181
877,819
-
877,819
122,181
877,819
1,000,000
1,000,000
100,000
1,100,000
-
45,914
45,914
1,000,000
54,086
1,054,086
45,914
1,054,086
1,100,000
3,281,566
3,281,566
2,714,595
2,714,595
Under the arrangement of the hire purchase and bank borrowing facilities, all property, plant and equipment
of the Group has been pledged as security. The holder of the security does not have the right to sell or re-
pledge the assets.
Details of the Groups risk exposure arising from borrowings are provided in Note 25.
Page 52
Notes to Financial Statements for the year ended 30 June 2013 (continued)
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
17. Issued capital
Fully paid ordinary shares
(a) Movement in shares on issue
Consolidated
2013
$
45,097,588
Consolidated
2012
$
28,902,114
Movement in the shares on issue of the consolidated entity during the financial year are summarized below.
Balance at the beginning of the financial year
Issued during the year:
Issue of shares to public at $0.40 each
Issue of shares to public at $0.38 each
Issue of shares to public at $0.70 each
Issue of shares to shareholders under the Share
Purchase Plan at $0.70 each
Share issue costs
Deferred tax credit
Issue of shares to employees at $0.405 each
Issue of shares to employees at $0.38 each
Issue of shares to employees at $0.68 each
Issue of shares on DRP
Balance at end of financial year 30 June
(b) Movements in share options
Consolidated 2013
Consolidated 2012
Number of
ordinary shares
48,833,201
Value
$
28,902,114
Number of
ordinary shares
42,849,811
11,800,000
-
10,000,000
5,941,712
-
-
-
-
20,888
1,626,631
78,222,432
4,720,000
-
7,000,000
4,159,100
(662,498)
198,749
-
-
14,102
766,021
45,097,588
-
5,263,158
-
-
-
-
2,469
31,584
-
686,179
48,833,201
Value
$
26,701,073
-
2,000,000
-
-
(117,679)
35,304
1,000
12,002
-
270,414
28,902,114
Movement in the share options of the consolidated entity during the financial year are summarized below.
Balance at 1 July
Granted during the financial period
Exercised during the financial period
Lapsed during the financial period
Balance at the end of the financial period
(c) Terms and conditions of issued capital
Ordinary shares
2013
Number
800,000
2,950,000
-
(200,000)
3,550,000
2012
Number
1,000,000
-
-
(200,000)
800,000
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company,
to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts
paid up on shares held.
Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
The company does not have limited authorised capital and issued shares have no par value.
Options
The company has 3,550,000 options on issue. The holders of the options are not permitted to exercise those
options until after the vesting date.
Page 53
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
18. Reserves
Share option reserve
Balance at 1 July
Charged to expense for the year
Lapsed options transferred to accumulated profits
Balance at 30 June
Foreign exchange reserve
Balance at 1 July
Charged to profit and loss for the year
Balance at 30 June
Total Reserves
Consolidated
2013
$
Consolidated
2012
$
26,205
39,344
(9,780)
55,769
258
(258)
-
55,769
28,265
8,920
(10,980)
26,205
(4,125)
4,383
258
26,463
The share option reserve is used to recognise the fair value of options issued to employees but not exercised.
The foreign exchange reserve is used to recognise exchange differences arising from translation of the financial
statements of foreign operations to Australian dollars.
19. Statement of cash flows
(a) Reconciliation of cash
Cash at the end of the year as shown in the Statement of Cash Flows is reconciled to the related items in the
Statement of Financial Position as follows:
Cash at bank and on hand
Bank overdraft
Cash at bank and on hand
4,564,100
(122,181)
4,441,919
1,256,406
-
1,256,406
(b) Reconciliation of operating profit after income tax to net cash flows from
operating activities
Net Profit after tax
Non cash items:
Depreciation and amortisation expense
Discount on acquisition
Profit on sale of controlled entity
Loss on sale of property, plant and equipment
Bad and doubtful debts allowance
Foreign exchange difference
Share based payments
Changes in Movements in assets and liabilities:
(Increase)/decrease in assets
Trade and other receivables
Deferred tax assets
Increase/(decrease) in liabilities
Trade and other payables
Current tax payable
Provisions
Cash flows from operations
Page 54
3,647,867
2,525,840
1,307,550
-
(86,987)
18,837
154,150
(258)
259,344
(2,426,465)
(327,601)
87,383
313,112
216,529
3,163,461
543,535
(100,350)
-
137,462
4,383
8,920
(612,205)
(61,948)
(163,595)
(6,871)
70,442
2,345,613
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
19. Statement of cash flows (continued)
(c) Non cash financing and investment activities:
There were no non cash financing and investing activities during the year.
20. Business combinations
The company has not acquired any business in the period.
The company divested its shares in Money3 Singapore Pte Ltd on 1 July 2012 for net proceeds of $16,866.
Details of the disposal are as follows;
Net fair value of net liabilities at date of disposal
Minority Interest & reserves at date of disposal
Acquisition-date fair value of the total consideration transferred
Net amount receivable
Profit on disposal of controlled entity
Consolidated
2013
$
(135,103)
64,982
(70,121)
16,866
86,987
21. Significant matters subsequent to the reporting date
No other matters or circumstances has arisen since the end of the financial year that have significantly
affected or may significantly affect the operations of the Company, the results or the state of affairs of the
Company in future years.
22. Segment information
A segment is a component of the consolidated entity that engages in business activities to provide products or
services within a particular economic environment. Management has identified two distinct operating
segments that are used to make decisions on the allocation of resources and assess their performance. The
two segments are as follows:
Secured operations
This segment provides lending facilities based on the provision of an underlying asset as security.
Unsecured operations
This segment provides services and lending facilities without the provision of an underlying asset as security.
Segment profit earned by each segment without the allocation of central administration costs and directors'
salaries, interest income and expense in relation to corporate facilities, bad debt collection and tax expense.
This is the measure reported to the chief executive officer for the purpose of resource allocation and
assessment of segment performance.
The unallocated assets include various corporate assets held at a corporate level that have not been allocated
to the underlying segments.
The unallocated liabilities include various corporate liabilities held at a corporate level that have not been
allocated to the underlying segments.
Page 55
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
22. Segment information (continued)
Consolidated - 2013
Revenue
Secured
Unsecured
Eliminations
/Unallocated
$
$
$
Total
$
Revenue from continuing operations
6,207,998
16,537,445
-
22,745,443
6,207,998
16,537,445
128,670
22,874,113
41,683
86,987
41,683
86,987
1,715,458
2,618,833
2,518,108
6,852,399
(1,307,550)
(358,058)
41,683
5,228,474
(1,580,607)
3,647,867
33,068,643
20,955,667
(2,335,481)
51,688,829
3,393,843
990,890
37,503
310,791
823,799
57,245,655
16,869,686
8,855,166
(25,448,992)
275,860
932,041
1,104,140
665,677
3,052,181
6,029,899
Interest revenue
Other revenue
Total Revenue
EBITDA
Depreciation and amortisation
Finance costs
Interest revenue
Profit before income tax
Income Tax
Profit after income tax
Assets
Segment assets
Unallocated assets:
Cash and cash equivalents
Property, plant and equipment
Other receivables
Other assets
Deferred tax assets
Total assets
Liabilities
Segment liabilities
Unallocated assets:
Trade and other payables
Current tax payables
Provisions
Borrowings
Total liabilities
Page 56
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
22. Segment information (continued)
Consolidated - 2012
Revenue
Secured
Unsecured
$
$
Eliminations
/Unallocated
$
Total
$
Revenue from continuing operations
3,522,858
12,188,357
(307,965)
15,403,250
Interest revenue
Other revenue
Total Revenue
EBITDA
Depreciation and amortisation
Finance costs
Interest revenue
Profit before income tax
Income Tax
Profit after income tax
Assets
Segment assets
Unallocated assets:
Cash and cash equivalents
Property, plant and equipment
Goodwill
Other receivables
Other assets
Deferred tax assets
Total assets
Liabilities
Segment liabilities
Unallocated assets:
Trade and other payables
Current tax payables
Provisions
Borrowings
Total liabilities
3,522,858
12,188,357
(115,972)
15,595,243
91,643
100,350
91,643
100,350
2,180,670
4,490,122
(2,439,402)
4,231,390
(543,535)
(166,736)
91,643
3,612,762
(1,086,922)
2,525,840
10,550,074
10,522,186
(930,725)
20,141,535
252,675
1,021,161
15,363,487
6,420
173,807
496,198
37,455,283
8,369,335
3,222,260
(11,134,388)
457,208
730,701
791,027
449,147
1,590,469
4,018,552
Page 57
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
23. Contingent liabilities
The Company has no contingent liabilities as at 30 June 2013 (2012: Nil).
24. Controlled entities
The consolidated financial statements incorporate the assets and liabilities and results of the following
subsidiaries in accordance with the accounting policy described in Note 1 (d).
Controlled entities of Money3 Corporation Limited (parent entity)
Name
Country of
Incorporation
Percentage of
equity held by the
consolidated entity
2013
2012
Acquisition
Date
Investment
2013
$
2012
$
Money3 Loans Pty Ltd
(formerly Money3 Ballarat Pty Ltd)
Money3 Services Pty Ltd
(formerly Money3 Dandenong Pty Ltd)
Money3 Franchising Pty Ltd
Money3 Branches Pty Ltd
(formerly Money3 Reservoir Pty Ltd)
Money3 Wodonga Pty Ltd
Antein Pty Ltd (Glenroy)
Bellavita Pty Ltd (Northcote)
Hallowed Holdings Pty Ltd (Clayton)
Kirney Pty Ltd (Coburg)
Nexia Pty Ltd (Werribee)
Pechino Pty Ltd (Frankston)
Salday Pty Ltd (St Albans)
Tannaster Pty Ltd (Moonee Ponds)
Tristace Pty Ltd (Geelong)
Money3 Singapore Pte Ltd
Total
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Singapore
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
100
100
100
100
100
100
100
100
100
100
100
100
100
51
100
1 November 2006
1 November 2006
16 April 2007
1 November 2006
13 March 2008
2
2
2
2
2
2
2
2
2
2
1 July 2006
3,100,500
3,100,500
1 July 2006
3,037,500
3,037,500
1 July 2006
2,970,000
2,970,000
1 July 2006
483,750
483,750
1 July 2006
1,665,000
1,665,000
1 July 2006
1,687,500
1,687,500
1 July 2006
483,750
483,750
1 July 2006
2,898,000
2,898,000
1 July 2006
1,741,500
1,741,500
1 July 2010
-(i)
40,850
18,067,510
18,108,360
All entities operated solely in their place of incorporation.
(i) The company divested its shares in Money3 Singapore Pte Ltd on 1 July 2012.
The Group does not actively engage in the trading of financial assets for speculative purposes nor does it write
options. The most significant financial risks to which the Group is exposed to are described below. There have
been no changes to these risks since the previous financial year.
Page 58
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
25. Financial instruments
The Group is exposed to a variety of financial risks through its use of financial instruments.
This note discloses the Group’s objectives, policies and processes for managing and measuring these risks.
The Group’s overall risk management plan seeks to minimise potential adverse effects due to the
unpredictability of financial markets.
The Board of Directors ensures that the Group maintains a competent management structure capable of
defining, analysing, measuring and reporting on the effective control of risk inherent in the Group’s underlying
financial activities and the instruments used to manage risk. Key financial risks including interest rate risk and
credit risk are reviewed by management on a regular basis and are communicated to the board so that it can
evaluate and impose its oversight responsibility. The Group does not enter into or trade financial instruments,
including derivative financial instruments, for speculative purposes.
Specific risks
Market risk (including foreign currency risk, interest rate risk and price risk)
Credit risk
Liquidity risk
Financial assets / liabilities used
The principal categories of financial assets / liabilities used by Money3 Corporation Limited are:
Trade receivables
Cash at bank
Bank borrowings
Trade and other payables
Objectives, policies and processes
The risk management policies of Money3 Corporation Limited seek to mitigate the above risks and reduce
volatility on the financial performance of the Group. Financial risk management is carried out centrally by the
Finance Department of Money3 Corporation Limited.
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern
while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The group overall strategy remains unchanged from 2012.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The capital structure of the Group consists of debt, which includes the borrowings disclosed in Note 16, cash
and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital,
reserves and retained earnings as disclosed in Notes 17,18 and 4 respectively. None of the Group’s entities is
subject to externally imposed capital requirements. Under the arrangement of the hire purchase and bank
borrowing facilities, all property, plant and equipment of the Group has been pledged as security. The holder
of the security does not have the right to sell or re-pledge the assets.
Page 59
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
25. Financial instruments (continued)
Gearing ratio
The Group's Board of Directors reviews the capital structure on a semi-annual basis. As a part of this review
the board considers the cost of capital and the risks associated with each class of capital. Based on
recommendations of the board the Group will balance its overall capital structure through the payment of
dividends, new share issues and share buy-backs as well as the issue of new debt or the redemption of existing
debt.
Financial assets
Debt (a)
Cash and cash equivalents
Net cash/(debt)
Equity
Debt to equity ratio
Note
16
9
17
Consolidated
2013
$
Consolidated
2012
$
(3,052,181)
4,564,100
1,511,919
(1,590,469)
1,256,406
(334,063)
45,097,588
28,902,114
6.7%
5.5%
(a) Debt is defined as long-term and short-term borrowings, as detailed in Note 16.
(a) Market risk
(i) Foreign currency risk
Money3 Corporation Limited has no significant exposure to foreign currency risk.
(ii) Interest rate risk
The company's exposure to market interest rates relates primarily to the company's short term deposits held,
deposits at call and borrowings. The interest income earned or paid on these balances can vary due to interest
rate change.
Money3 Corporation Limited does not have a significant interest rate risk as its borrowing level is low. Interest
rate risk is minimised by having a mixture of fixed and floating interest rate loan facilities.
(iii) Price risk
Price risk is the risk that future cashflows derived from financial instruments will be changed as a result of a
market price movement, other than interest rates. The company and group are not exposed to any material
price risk.
(b) Credit risk
Credit risk is managed on the Group basis. Credit risk arises from cash and cash equivalents and deposits with
banks and financial institutions, as well as credit exposures to outstanding receivables, net of any allowance
for doubtful debts, as disclosed in the Statement of Financial Position and notes to the financial report.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the consolidated entity. With the exception of its dealings with core customers, the consolidated entity
has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral or
other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The
consolidated entity measures credit risk on a fair value basis.
Money3's core customers are financially challenged and generally have a bad credit history and are lacking in
budgeting ability. Money3 obtains security on loans greater than $5,000.
Page 60
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
25. Financial instruments (continued)
(b) Credit risk (continued)
The consolidated entity does not have any significant credit risk exposure to any single counterparty or any
group of counterparties having similar characteristics, given the number and diversity of debtors.
The management of Money3 manages credit risk by adopting the procedures and policies which:
Lend for short term;
Assess each application on the borrower’s capacity to service the loan;
Match repayment dates to borrowers pay dates and pay cycles;
Where possible, obtain security on loans greater than $5,000;
Require repayment of loans by direct debit or pay deductions or during settlements;
Have the ability to adjust repayments when customers face further financial difficulties; and
Align debt collection processes with the Consumer Credit Code.
Implement prompt follow up when a repayment is missed;
This strategy is consistent with the prior year.
(c) Liquidity risk analysis
Liquidity risk is the risk that the company will not be able to pay their debts as and when they fall due. The
company has borrowings and finance lease liability; and the directors ensure that the cash on hand is sufficient
to meet the commitments of the company and group at all times.
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal
repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its
financial obligations as they fall due. This strategy is consistent with the prior year.
Liquidity risk includes the risk that, as a result of our operational liquidity requirements Money3:
will not have sufficient funds to settle a transaction on the due date;
will be forced to sell financial assets at a value which is less than what they are worth; and
may be unable to settle or recover a financial asset at all.
To help reduce these risks, where possible Money3’s strategy is to borrow long term and lend short term,
maintain an overdraft facility and adequate cash reserves. The ratio of current borrowings to Current Debtors
is considered to be low.
Maturity of financial liabilities
The Group holds the following financial instruments. Amounts presented below represent the future
undiscounted principal and interest cash flows.
2013
Financial Liabilities:
Borrowings
Trade and other payables
Lease Liabilities
Total Financial Liabilities
Consolidated
< 1 year
$
1-5 years
$
> 5 years
$
Total
$
3,126,212
1,207,901
-
4,334,113
-
-
-
-
-
-
-
-
3,126,212
1,207,901
-
4,334,113
Page 61
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
25. Financial instruments (continued)
(c) Liquidity risk analysis (continued)
Maturity of financial liabilities (continued)
2012
Financial Liabilities:
Borrowings
Trade and other payables
Lease Liabilities
Total Financial Liabilities
Consolidated
< 1 year
$
1-5 years
$
> 5 years
$
Total
$
1,590,892
1,105,409
49,710
2,746,011
-
82,500
-
82,500
-
-
-
-
1,590,892
1,187,909
49,710
2,828,511
The above contractual maturities reflect the gross cash flows, which may differ to the carrying values of the
liabilities at the reporting date.
Also affecting liquidity are cash at bank and non interest bearing receivables and payables. Liquidity risk
associated with these financial instruments is represented by the carrying amounts as shown above.
d) Fair value estimation
The carrying amount of financial assets and financial liabilities recorded in the financial statements
approximates their net fair values.
The net fair values of financial assets and financial liabilities are determined as follows:
the net fair value of financial assets and financial liabilities with standard terms and conditions and
traded on active liquid markets are determined with reference to quoted market prices; and
the net fair value of other financial assets and financial liabilities are determined in accordance with
generally accepted pricing models based on discounted cash flow theory.
The carrying value less impairment provision of trade receivables and payables is a reasonable approximation
of their fair values due to the short-term nature of trade receivables. The fair value of financial liabilities for
disclosure purposes is estimated by discounting the future contractual cash flows at the current market
interest rate that is available to the Group for similar financial instruments.
26. Leases
Operating leases
Operating leases relate to branch premises which have lease terms of up to 5 years with in some instances an
unexercised option to extend for a further 5 years. All operating leases contain market rent review clauses
when an option to renew is exercised.
Hire purchase commitments relate to the company’s fleet of motor vehicles.
Lease expenditure commitments
Operating leases (non-cancellable)
Minimum lease payments
- not later than one year
- later than one year but not later than five years
- more than five years
Total minimum payments
Page 62
Consolidated
2013
$
Consolidated
2012
$
1,459,059
2,629,978
-
4,089,037
1,079,345
2,341,644
19,186
3,440,175
Notes to Financial Statements for the year ended 30 June 2013 (continued)
26. Leases (continued)
Operating leases (continued)
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Hire purchase
Hire Purchase commitments
- not later than one year
- later than one year but not later than five years
Total minimum payments
Hire purchase commitments relate to motor vehicle.
Future finance charges
Recognised as liability
Representing lease liabilities
Current (Note 16)
Non-Current(Note 16)
Leases as lessor
Consolidated
2013
$
Consolidated
2012
$
-
-
-
-
-
-
-
-
47,186
-
47,186
(1,272)
45,914
45,914
-
45,914
The consolidated entity leases out its rental assets under operating leases. The future minimum lease
payments under non-cancellable operating leases are as follows:
Minimum lease payments
- not later than one year
- later than one year but not later than five years
Total minimum payments
27. Auditors remuneration
Amounts received or due and receivable by the auditors for:
Auditing or reviewing the financial reports
Other services
Total remuneration of auditors
28. Related party disclosures
(a) Parent and ultimate controlling entity
1,896,453
860,295
2,756,748
1,351,925
1,163,440
2,515,365
119,839
-
119,839
103,500
-
103,500
The parent and ultimate controlling entity is Money3 Corporation Limited which is incorporated and domiciled
in Australia.
(b) Key management personnels’ remuneration
The aggregate compensation of the key management personnel of the Group is set out below:
Short term employee benefits
Post employment benefits
Share based payments
Total
681,068
67,013
35,944
784,025
741,227
65,247
8,920
815,394
Page 63
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
28. Related party disclosures (continued)
(c) Equity interests in controlled entities
Details of the percentage of ordinary shares held in controlled entities are disclosed in Note 24 to the financial
statements.
(d) Loan disclosures
The Company has an unsecured interest bearing loan of $155,000 (2012: $100,000) from Mr Geoffrey Baldwin,
the father of Mr Scott Baldwin (executive director) and brother of Mr Christopher Baldwin (non-executive
director). The Company has an unsecured interest bearing loan of $50,000 (2012: $50,000) from Brian
Baldwin, the brother of Mr Scott Baldwin and nephew of Mr Christopher Baldwin. The Company has an
unsecured interest bearing loan of $50,000 (2012: nil) from Graeme Baldwin, the uncle of Mr Scott Baldwin
and brother of Mr Christopher Baldwin. The Company has an unsecured interest bearing loan of $100,000
(2012: nil) from Simon Baldwin, the cousin of Mr Scott Baldwin and nephew of Mr Christopher Baldwin. The
Company has an unsecured interest bearing loan of $155,000 (2012: nil) from G&V Livestock Pty Ltd, the
proprietor is the uncle of Mr Scott Baldwin (executive director) and brother of Mr Christopher Baldwin (non-
executive director). The Company had an unsecured interest bearing loan of $600,000 (2012: nil) from Mr
Robert Bryant (executive director). The Company had an unsecured interest bearing loan of $500,000 (2012:
nil) from Mr Kang Tan (non-executive director). The Company had an unsecured interest bearing loan of
$350,000 (2012: nil) from Mr Geoffrey Sam (chairman and non-executive director). The Company had an
unsecured interest bearing loan of $200,000 (2012: nil) from Mrs Vanessa Baldwin, wife of Mr Scott Baldwin
(executive director).
These loan transactions are made on normal commercial terms and conditions and at market rates. Interest is
charged at a commercial rate. Refer note 28(g)
There are no loans made by the disclosing entity or any of its subsidiaries to any key management personnel,
including their personally related entities.
(e) Key management personnel equity holdings
Details of key management personnel equity holdings of the Group, including their personally related parties
are disclosed below. There were no shares granted during the reporting period as compensation.
Balance at 1 July
2012
286,949
9,102,648
5,013,952
1,033,002
1,608,784
155,964
17,201,299
Balance at 1 July
2011
256,000
9,082,648
5,011,320
1,023,943
1,525,599
146,135
17,045,645
Granted as
remuneration
-
-
-
-
-
-
-
Granted as
remuneration
-
-
-
-
-
-
On exercise of
options
Net change other
Balance as at 30
June 2013
-
-
-
-
-
-
-
(162,490)
654,201
85,716
26,017
232,322
89,015
924,781
124,459
9,756,849
5,099,668
1,059,019
1,841,106
244,979
18,126,080
On exercise of
options
Net change other
Balance as at 30
June 2012
-
-
-
-
-
-
30,949
20,000
2,632
9,059
83,185
9,829
286,949
9,102,648
5,013,952
1,033,002
1,608,784
155,964
155,654
17,201,299
Geoffrey Sam
Robert Bryant
Kang Hong Tan
Christopher Baldwin
Scott Baldwin
Bettina Evert
Total
Geoffrey Sam
Robert Bryant
Kang Hong Tan
Christopher Baldwin
Scott Baldwin
Bettina Evert
Total
Page 64
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
28. Related party disclosures (continued)
(f) Options holdings over ordinary shares in Money3 Corporation Limited held during
the financial year by each director of Money3 Corporation Limited and key
management personnel of the consolidated entity, including their personally
related parties are set out below.
Balance as
at 1 July
2012
800,000
Received as
remunerati
on
1,000,000
-
1,000,000
800,000
2,000,000
Balance as
at 1 July
2011
1,000,000
1,000,000
Received as
remunerati
on
-
-
S Baldwin
C Harris
Total
Scott Baldwin
Total
Options
exercised
Net change
other
(200,000)
Balance as
at 30 June
2013
1,600,000
Total
exercisable
and vested
-
Total
options
vested
-
-
-
-
1,000,000
(200,000)
2,600,000
-
-
Options
exercised
Net change
other
-
-
(200,000)
(200,000)
Balance as
at 30 June
2012
800,000
800,000
Total
exercisable
and vested
-
-
Total
options
vested
Total
options
unvested
1,600,000
1,000,000
2,600,000
Total
options
unvested
800,000
800,000
-
-
-
-
-
(g) Other transactions with key management personnel or their related entities
The financial statements include the following items of expenses that resulted from transactions other than
compensation or equity holdings with key management personnel or their related entities:
Interest paid to Geoffrey Baldwin
Interest paid to Brian Baldwin
Interest paid to Simon Baldwin
Interest paid to G&V Livestock Pty Ltd
Interest paid to Kang Tan
Interest paid to Geoff Sam
Interest paid to Robert Bryant
Interest paid to Vanessa Baldwin
Accounting and taxation fees paid to Brown Baldwin Melbourne Pty Ltd (*)
Consolidated
2013
$
12,019
6,010
8,770
3,992
7,934
29,167
11,475
13,665
-
93,032
Consolidated
2012
$
12,019
6,010
-
-
-
-
-
-
16,430
34,459
(*) Christopher Baldwin was a director of Brown Baldwin Melbourne Pty Ltd in prior years.
Transactions between the consolidated entity and these parties are conducted on normal commercial terms.
(h) Transactions with other related parties
There are no other related party transactions
Page 65
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
29 Parent entity financial information
a) Summary financial information
The financial position and results of Money3 Corporation Ltd, the parent entity, are as follows:
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Net assets
EQUITY
Issued capital
Share option reserves
Retained earnings
Total equity
Statement of profit or loss and other comprehensive income
Company
2013
$
Company
2012
$
3,919,762
5,831,339
54,372,702
33,816,484
5,357,071
2,043,963
5,410,986
48,961,716
2,248,528
31,567,957
46,398,104
55,769
2,507,843
48,961,716
30,202,630
26,285
1,339,042
31,567,957
Company
2013
$
Company
2012
$
Profit for the period from continuing operations
3,328,613
86,968
Total comprehensive income
3,328,613
86,968
b) Guarantees entered into by the parent entity
The parent entity has not entered into guarantees for any of its subsidiaries.
c) Contingent liabilities of the parent entity
The parent entity has no contingent liabilities at the time of the report.
d) Contractual commitments by the parent entity
The parent entity has no contractual commitments at the time of the report.
Page 66
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
A. ASX Additional Information
Additional information required by the Australian Stock Exchange and not shown elsewhere in this report is as
follows. The information is current as at 22 August 2013.
(a) Distribution of equity securities
The number of shareholders, by size of holding, in each class of share are:
Distribution of Shareholdings
Ordinary Shares
Unlisted Options
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Number of
Holders
82
442
187
427
98
Number of
Shares
61,017,785
14,464,154
1,390,667
1,295,373
54,453
1,236
78,222,432
Number of
Holders
6
2
-
-
-
8
Number of
Options
3,400,000
150,000
-
-
-
3,550,000
The number of shareholders holding less than a marketable
parcel of shares are
33
3,320
(b) Twenty largest holders of quoted shares are:
Listed Ordinary Shares
No. of Shares
% of Holding
Name of Holder
1. Rocsange Pty Ltd
2. Hosking Financial Investments Pty Ltd
3. Aust Executor Trustees Sa Ltd
4. Picton Cove Pty Ltd
5. Platey Pty Ltd
6. Rubi Holdings Pty Ltd
7. Rbc Investor Services Australia Nominees Pty Limited
8. Belstock Pty Ltd
9. Cranchi Pty Ltd
10. Matooka Pty Ltd
11. Baldwin Brothers Investments Pty Ltd
12. Ubs Nominees Pty Ltd
13. Mr Kang Hong Tan & Mrs Hwea Chong Tan
14. Quickdou Pty Ltd
15. Dorran Pty Ltd
16. Ninth Nell Pty Ltd
17. Bnp Paribas Noms Pty Ltd
18. Balmoor Pty Limited
7,440,535
6,414,735
5,453,358
4,061,057
3,631,429
2,652,921
2,578,676
2,545,288
2,000,000
1,799,680
1,463,533
1,375,571
1,316,749
1,000,000
1,000,000
892,048
757,143
728,256
9.51%
8.20%
6.97%
5.19%
4.64%
3.39%
3.30%
3.25%
2.56%
2.30%
1.87%
1.76%
1.68%
1.28%
1.28%
1.14%
0.97%
0.93%
0.91%
19. Mr Wayne Hosking & Miss Bernadette Williams
715,301
20. Redbrook Nominees Pty Ltd
Top twenty shareholders
Total issued capital
534,390
48,360,670
78,222,432
0.68%
61.82%
100.00%
Page 67
MONEY3 CORPORATION LIMITED
ABN 63 117 296 143
Notes to Financial Statements for the year ended 30 June 2013 (continued)
A. ASX Additional Information (continued)
(c) Substantial shareholders
The names of the substantial shareholders who have notified the Company in accordance with section 671B of
the Corporations Act 2001 are:
Rocsange Pty Ltd
Hosking Financial Investments Pty Ltd
Pie Fund Management
Picton Cove Pty Ltd
(d) Voting rights
No. of Shares
% Held
7,440,535
7,130,036
5,453,358
4,061,057
9.93%
9.12%
6.97%
5.19%
The company only has ordinary shares on issue.
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting
or by proxy has one vote on a show of hands.
(e) Option holders information
The Company has issued (or may issue in the future) Options over unissued capital. The Company has a total
of 2,950,000 (2012: 800,000) options on issue as follows:
Director Options
The Company has issue 1,600,000 options during the year (2012: nil options) to the Directors (or their
nominees) ("Director Options").
Issue Date
Options Granted
Exercise Price
Expiry Date
Vesting Date
Scott Baldwin
Scott Baldwin
Scott Baldwin
Scott Baldwin
27November 2009
27 November 2009
27 November 2009
200,000
200,000
200,000
$0.70
31 December 2013
31 December 2012
$0.85
31 December 2014
31 December 2013
$1.00
31 December 2015
31 December 2014
30 September 2012
1,000,000
$0.50
30 September 2017
30 September 2015
The options vest in full when an event occurs which give rise to a change in control of the Company.
If the Company after having granted these options restructure its issued share capital, ASX Listing
Rules will apply to the number of Shares issued to the option holder on exercise of an option.
Options will not be listed on ASX but application will be made for quotation of the shares resulting
from the exercise of the options.
On issue of the resulting shares, they will rank equally with ordinary shares on issue at that time.
(f) On-market buy-back
There is no current on-market buy-back of the Company's securities.
Page 68