2021
Annual Report
1
Pureprofile’s vision is to
deliver more value from
the world’s information
Table of
Contentsce
SECTION ONE
About
Pureprofile
SECTION TWO
Our
Business
SECTION SEVEN
Data, Media,
& Innovation
SECTION EIGHT
Meet our
Directors
pg 3
pg 7
SECTION THREE
Our Corporate
Strategy
SECTION NINE
Director’s
Report
pg 17
SECTION FOUR
Our Year
in Review
SECTION TEN
Financial
Report
pg 21
1
pg 41
pg 47
pg 53
pg 71
SECTION ELEVEN
Auditor’s
Report
pg 121
SECTION FIVE
Chairman &
CEO’s Letter
SECTION SIX
Our People
& Culture
pg 31
pg 35
ANNUAL REPORT 2021
3
SECTION ONE • ABOUT PUREPROFILE
4
34%
of Aussies get their
news from social
media platforms
SECTION ONE
About
Pureprofile
ANNUAL REPORT 2021 5
SECTION ONE • ABOUT PUREPROFILE
About
Pureprofile
Pureprofile’s
vision is to deliver
more value from
the world’s
information.
We are a global data and
insights organisation providing
online research and
digital advertising services
for agencies, marketers,
researchers and publishers.
Our research division delivers
rich insights into real human
behaviour and provides the
“Why” behind the “What”
through ResTech and
SaaS solutions. Our digital
advertising division taps into
these rich insights on behalf of
advertisers and publishers and
executes impactful, targeted
digital marketing strategies.
We build in-depth profiles of
consumers via our proprietary
and partner panels and
give businesses the ability
to understand, target, and
ultimately engage with
their audiences.
The Company, founded in
2000 and based in Surry
Hills, Australia, now operates
in North America, Europe
and APAC and has delivered
solutions for over 700 clients.
Pureprofile
at a glance
Our aspiration
Pureprofile insights are
used by every company
in their decision making.
Our vision
To deliver more value from
the world’s information,
allowing deeper connections
between organisations and
their audiences.
Our mission
To reward people for sharing
their thoughts, opinions and
behaviours and provide
valuable, actionable insights
to businesses for better
decision making.
6
Our values
Discovery
We invite our people to continually
ask questions and be open to new ideas.
To be inquisitive and to understand
that we are on a journey together,
learning from one another at every step.
Ownership
We encourage our people to take
responsibility for everything they
do and say, to be bold and
fearless and to lead with passion.
We encourage our team to
challenge themselves daily.
Trust
We foster a culture of trust at
Pureprofile. We trust ourselves,
colleagues and clients. We also trust
the process - things don’t always go to
plan but hard work and integrity always
yield the best results.
Team
We know that we are one team and
appreciate how much strength there
is in that. We always treat others
with respect and compassion.
We show kindness to everyone.
ANNUAL REPORT 2021
7
SECTION TWO • OUR BUSINESS
8
60%
of Aussies
think that the
COVID vaccine
is safe
SECTION TWO
Our
Business
ANNUAL REPORT 2021 9
SECTION TWO • OUR BUSINESS
Our
Our
business
business
Why
clients work
with us
What
services we
offer our clients
Our client value
proposition
Our
divisions
Global reach
Direct access to
millions of deeply
profiled consumers
Trusted
With over 20 years
of experience in the
online market
research space
Service
Fast personal
quick turnaround,
dedicated teams
Data & Insights
Enabling organisations
to understand their
audiences and to make
better business decisions
Self-service
platform
Access insights and
campaigns through
our proprietary
technology platform
Pure.amplify media
Through first-party
data our advertising
campaigns reach the right
people at the right time
How
we grow
our business
Our corporate
strategy
Global panel
Focus on expanding
and diversifying our
global panel, and
adding complementary
data sources through
strategic partnerships
More data,
more insights
Leverage Pureprofile
proprietary data
Self-service
Innovate and enhance
our SaaS solutions
10
Our
divisions
We provide our global clients
with the ammunition to make
better business decisions.
Our commitment to delivering best-in-class
research & digital advertising solutions is
evidenced via our three core divisions:
Data & Insights
Online market research solutions
conducted via a global network of
highly engaged, demographically
diverse consumers. We connect
our clients to groups of deeply
profiled people and offer a range
of market-leading services to deliver
critical insights quickly and effectively.
‘‘
Pureprofile were invaluable in
helping us gather market feedback.
The team were extremely collaborative,
working with us to create a seamless
process for uncovering the insights
we needed. The speed and quality of
the responses gave us the ability to
make informed business decisions at
critical touchpoints.”
Richard Spencer
Chief Customer Experience Officer
Business Australia
Self-service platform
Research technology that delivers
consumer intelligence for the future.
Our tools allow clients to manage,
enrich and activate their data via
cutting-edge ResTech and SaaS
solutions, placing us at the forefront of
the data & insights industry.
‘‘
Pureprofile is the best research
partner for us! Their profiling
capabilities allow us to target our core
audience and conduct research in a
cost-effective way - with high quality
and fast turnarounds.”
Matthew Zionzee
Assistant Brand Manager
Vitaco Health
Pure.amplify media
Powerful insights-driven digital
media solutions fit for a cookie-less
world. We plan, execute and optimise
every step of our clients’ digital
advertising campaigns for maximum
impact, connecting our clients to the
right consumers on the right channels.
‘‘
We were very impressed with the
results obtained during this very
volatile time. News of our relief fund
garnered over 9.2 million impressions.
We even found generous new donors
who selflessly contributed to our fund,
despite experiencing challenging
circumstances themselves.”
Adnan Shahzad
Senior Digital Growth Manager
Barnardos
ANNUAL REPORT 2021
11
SECTION TWO • OUR BUSINESS
Our
advantage
Humans aren’t one dimensional,
they’re complex. We hold the key to
understanding the depth of human
behaviour, empowering brands to
truly know their audience.
34 years old
Single, no dependants
CMO at a Tier 1
not-for-profit
Lives in Byron Bay
Earns $145k
Preferences
Likes high-end
products, eco-products
Reads Frankie magazine
Gets her news from
The New Yorker
Drives a Lexus Hybrid
Is a vegetarian
Beliefs
Volunteers at a wildlife
conservation centre
Donates 10% of her
salary to charity
12
Prime candidate for
high-end hybrid cars
Interested in ethical
health insurance products
Climate change is the biggest
issue that influences her vote
Habits
Drinks 4
almond lattes a day
Walks her dog
every day
Ideal target for
Christmas donor
acquisition activity
ANNUAL REPORT 2021
13
SECTION TWO • OUR BUSINESS
Our vision is to deliver
more value from the
world’s information
14
Data & Insights
Pure.amplify
Platform
Operations Hub
UK
Mainland Europe
USA
2021
2021
2021
2021
India
Singapore
2021
Australia
New Zealand
Offices in 7
Offices in 7
countries
countries
700 clients
700 clients
globally
globally
155 staff globally
155 staff globally
91% repeat clients
91% repeat clients
20% in
20% in recurring
recurring revenue
revenue
ANNUAL REPORT 2021 15
SECTION TWO • OUR BUSINESS
Delivering
global
insights
Offices in 7
countries
700 clients
globally
155 staff globally
91% repeat clients
We are a truly
global company
20% in recurring
completing studies
revenue
in 91 countries
so far this year
16
Insights from these countries
ANNUAL REPORT 2021 17
SECTION THREE • OUR CORPORATE STRATEGY
18
48%
of Aussies
are excited
about Brisbane
being announced
as the host of
the 2032 Olympics
SECTION THREE
Our
Corporate
Strategy
ANNUAL REPORT 2021 19
SECTION THREE • OUR CORPORATE STRATEGY
Our corporate
strategy
Pureprofile will continue to build
on its core data and analytics
assets while leveraging them
through commercial applications
such as the self-service platform.
Focus on building a stronger and
more diverse global panel and add
complementary data sources
through strategic partnerships
Accelerate our SaaS
self-service solutions
Clear
corporate
growth
strategy
Leverage Pureprofile
proprietary data
- Data & Insights
- Media Advertising
Great progress
in 2021
20
Strategic Pillar
Strategy
FY21 Progress
Global panel
Focus on building a
stronger and more diverse
global panel and add
complementary data
sources through
strategic partnerships
More data,
more insights
Leverage Pureprofile
proprietary data
• Data & Insights
• Media Advertising
Doubled the size of
the AU & UK panels
Refer-a-friend program
implemented driving
panel acquisition
Further quality and
fraud prevention
initiatives implemented
Launched
Flybuys partnership
Launched SGAG
community in Singapore
Self-service
Accelerate our SaaS
self-service solutions
• Audience Intelligence
•
Insights Builder
Pilot launched Audience
Intelligence SaaS solution
in Food Delivery vertical
Signed marquee client
and further client trials
ANNUAL REPORT 2021 21
SECTION FOUR • OUR YEAR IN REVIEW
22
55%
of Brits have
experienced lock-
down fatigue since
the pandemic began
SECTION FOUR
Our Year
in Review
ANNUAL REPORT 2021 23
SECTION FOUR • OUR YEAR IN REVIEW
Financial
highlights
Positive
operating
net cash flow
EBITDA
exceeding
guidance
Closing cash at
bank balance of
$3.6m up from
$1.8m on pcp
Operational
KPIs
24
40%
of new clients from
new markets
58%
growth in number
of SaaS clients
71%
YOY increase in
completed surveys
45%
YOY increase in
project volume
91%
of revenue coming from
repeat clients
4 years
average tenure
of clients
15%
YOY increase
in active clients
20%
of Data & Insights
revenue is recurring
219 million
ads delivered by
Pure.amplify
90%
growth in
panel acquisition
$5.9m
incentives earned by
Pureprofile panellists in Q4
Total revenue up
24% to $30.0m
EBITDA up
124% to $3.1m
Operating net cash flow up
65% to $2.4m
SaaS Platform revenue up
119% to $1.0m
Global Data & Insights
revenue up
34% to $24.6m
ANNUAL REPORT 2021 25
SECTION FOUR • OUR YEAR IN REVIEW
Our client
community
Our NPS score for FY21
was 82 which places
Pureprofile in the top
quartile* of organisations
for client loyalty.**
‘‘
The survey was programmed
amazingly quickly and any
requested updates were
implemented almost
immediately. - CSIRO
‘‘
Knows what they are doing and
are friendly and willing to go
above and beyond to contribute
to a successful project. - SACAP
‘‘
The quality was much higher
than what is received via
other partners.
- Empirica Research
‘‘
Pureprofile is really emerging
as the market leader in the
panel space. - Woolcott
‘‘
Fast and high quality. Whatever
quality assurances you have in
place are definitely working!
- Bastion Insights
‘‘
PP team spanned
across time zones, so it felt
like they were working
on this 24/7! - TRA NZ
*
**
Top quartile NPS is defined as 72 and above.
Our NPS score reflects our loyal clients who continually work with Pureprofile.
Account holder
highlights
‘‘
The best thing about Pureprofile is
the flexibility and opportunity to earn a
little something almost every day just by
giving my opinion. I honestly enjoy doing
the surveys and being greeted by such a
wide variety of topics, it really keeps me
interested and motivated.
‘‘
The little bit I get from Pureprofile helps
pay for small luxuries each month that
I would not normally be able to afford
during these lockdown times. The
reviews are easy to do and rewards
are fair and reasonable.
‘‘
I’ve been a member of Pureprofile for a
while now and I love being able to share
my opinions on topics important to me.
Being rewarded for doing so is such
an added bonus. Pureprofile and their
user-friendly website make it incredibly
easy to answer surveys whenever I can
and wherever I am.
‘‘
I absolutely love working with Pureprofile
as the surveys are always varied which
makes it interesting and the rewards are
very good as well.
26
‘‘
‘‘
Pureprofile is one of my favourite survey
sites because there is always something
new there to do - and you can make
some extra money and have the chance
to win prizes on top of it.
I am thoroughly enjoying the surveys
and find myself refreshing the screen
throughout the day to see if any more
surveys have popped up. I have the time
& energy and needed the money.
So it’s perfect.
‘‘
I like Pureprofile because there is always
a variety of subjects to fill surveys in on
and they don’t repeat the same question
in five different ways so they are fun to
do. Another obvious reason is every time
you do the work you are rewarded.
‘‘
What I like most about Pureprofile is
that I can login anytime and answer
a quick survey which keeps my brain
active while being a stay at home mum.
It has been so nice having something to
think about other than a newborn,
especially during lockdown with no
adult company during the day.
ANNUAL REPORT 2021 27
SECTION FOUR • OUR YEAR IN REVIEW
Pureprofile
in the news
The world is talking
about Pureprofile.
287 individual feature articles
and press mentions during FY21
in multiple countries across
various media formats including
publications, radio and TV.
28
ANNUAL REPORT 2021 29
SECTION FOUR • OUR YEAR IN REVIEW
What our
panellists think
We’re on the pulse of
consumer insights.
We conduct marketing surveys on a weekly
basis to determine what our members think
about current world events. Insights are used
to create infographics, shared across all of
our platforms and social media channels.
30
ANNUAL REPORT 2021 31
SECTION FIVE • CHAIRMAN AND CEO'S LETTER
32
94%
of Kiwis think
gambling is
a problem
SECTION FIVE
Chairman &
CEO’s Letter
ANNUAL REPORT 2021 33
SECTION FIVE • CHAIRMAN AND CEO'S LETTER
Chairman and
CEO’s letter
Andrew Edwards
Non-Executive Chairman
Martin Filz
Managing Director and CEO
We are pleased to present
the 2021 Annual Report to
our shareholders.
At Pureprofile, our vision is to deliver more
value from the world’s information. This year,
we’ve made tremendous progress in realising
that vision.
STRONG STRATEGIC PROGRESS
Over the last 21 years we’ve built a solid reputation
as a data and analytics centre of excellence
Pureprofile continues to develop year on year, and
in 2021, we had our best year in terms of customer
growth and satisfaction, leading us to report our
highest revenue growth and end of year cash
position in Pureprofile’s history. The Company
is now operating in 7 countries and delivering
insights from 91 countries. We’ve continued to
grow our team under the direction of our new CEO
and Managing Director, Martin Filz, adding industry
experts who provide extra depth and skill to our
leadership team and board. We’ve opened sales
offices in Singapore and the Netherlands, added
crucial data and insights and sales professionals
to our global team. Our strengthened talent pool
has helped us meet the rigours of being a dynamic
global data, analytics and media company.
Through FY21 we recorded a 34 per cent increase
in customers from the United Kingdom and 40 per
cent of new customer growth in the past year has
come from outside Australia. We rebranded our
media arm Pure.amplify, launched Pure.amplify in
the UK and are well positioned to take advantage
of the new cookieless world. Now we’re ready to
further extend our international business.
We are proud of Pureprofile’s strong financial
performance across the past year. EBITDA grew
from $1.4 million in FY21 to $3.1 million, up 124%
and early month-on-month results in the first part
of FY22 suggest this momentum will continue. Full-
year revenue was $30 million, 24% over the prior
year. We finished FY21 with a cash balance of $3.6
million as at 30 June 2021, up from $1.8 million on
30 June 2020.
We have achieved solid customer and revenue
growth over the year thanks to the talent and
efforts of our people, who concentrated on
delivering meaningful work to our customers.
EXPANDED PRODUCT SUITE ENABLES
CROSS-CLIENT GROWTH
Our new and improved product suite, which now
includes our SaaS platform solution Audience
Intelligence with its data analysis capabilities has
allowed us to organically expand our offering
to our existing client base, with 91% of revenue
coming from repeat clients, with an average client
tenure of 4 years. The quality of our services
helped to secured over 100 new customers in
FY21. Our Audience Intelligence platform has
already begun to accelerate what we believe will
be transformational growth and global expansion
opportunities. Audience Intelligence is a true
34
well above the industry average, and above the
global best companies rating of 78 per cent. As
you would expect from a tech-enabled company,
we invite our people to ask questions continually
which inform our engagement strategy. We ask
them to be open to new ideas, to be inquisitive
and understand that we are on a journey
together, learning from one another
at every step.
OUTLOOK
We are on a clear path - focused on driving our
global expansion. The Global Market Research
industry was valued at US$90 billion in 2019*,
with the US and Europe accounting for nearly
80% of that value. By increasing new partnership
development in Asia, Europe, and the United
States, launching new panels in mainland Europe
and Singapore to support our growing businesses
in these regions, and expanding our SaaS offering
globally, Pureprofile will be able to further attract
new clients and build recurring revenues while
maintaining focus on controlling costs and staying
cash flow positive.
This strategy underpins our drive toward
measured growth and profitability
We have a unique opportunity to think about
consumer data differently and to help brands
grow, whilst staying relevant in a rapidly changing
landscape. With our eyes firmly on our obligations
in the area of data privacy and compliance, we are
committed to building customer trust in everything
we do. It all begins and ends with customer trust;
accessing their data ethically and creating mutual
value-based benefits.
At Pureprofile, this is what we pride ourselves on
and this is what we deliver day in, day out.Finally,
we would like to thank our staff, board, business
partners, panellists, and shareholders for their
generous support over the year, and assure you
that the whole Pureprofile team is focused on
positioning the Company for ongoing growth.
SaaS play with its software delivery allowing
clients access to unrivalled market intelligence
and consumer trends. Using the platform, clients
can slice and dice our contextualised data in
way that provides deep, compelling, and precise
competitive insights. UberEats signed onto the
Audience Intelligence solution at the end of the
fiscal year, with several interested parties currently
running trials. Our unique solution has been
shortlisted for the Australian Business Awards
2021’s SaaS Innovation Award.
GROWING QUALITY PANELS
WITH STRONG PARTNERS
Our focus on building more robust and diverse
global panels and adding complementary data
sources through strategic partnerships has
helped increase panel size. Panel quality is a
key differentiator of Pureprofile’s business,
and through the year, our panels grew globally,
demonstrated by a 90% increase in the number
of new panellists joining over the last 12 months.
This growth in new panellists gives Pureprofile
the ability to provide more insights to new and
existing clients, grow revenue, and improve
margins. New global partnerships, especially the
exclusive survey platform created for members
of Flybuys - one of Australia’s largest loyalty
programs - will help increase panel size and
revenue. The Pureprofile Perks platform that
went live in April 2021 will create the largest
insights panel in Australia, allowing more brands
and businesses to unearth the attitudes and
behaviours of consumers. This new partnership is
an exciting extension of our existing relationships
with Raiz, News Corporation, and AASmartfuel.
GROWTH
We intend to open more offices in South East
Asia in the first half of the FY22 financial year to
complement our new office in Singapore, and
we are excited to expand in other areas across
Europe where we are currently experiencing
profitable revenue growth, supporting our
strategy of growing into these new markets.
TEAM ENGAGEMENT–
A PROUD ACHIEVEMENT
A proud operational achievement was the
growth of employee engagement this year, which
helped to drive the Company’s results. In FY21,
our employee satisfaction increased to 86 per
cent, up 14 per cent from the prior year. This is
ANNUAL REPORT 2021 35
SECTION SIX • OUR PEOPLE AND CULTURE
36
94%
of Kiwis would
travel into space
if they got
the chance
SECTION SIX
Our People
& Culture
ANNUAL REPORT 2021 37
SECTION SIX • OUR PEOPLE AND CULTURE
Our people
and culture
Melinda Sheppard
Chief Operating Officer
Pureprofile is home to 155
employees globally, with teams
in Australia, New Zealand,
the United Kingdom, Mainland
Europe, India, Singapore and
in the US.
We’re very proud that our employees want to
work for us, with 98% of our employees recom-
mending Pureprofile as a great place to work.
The health, wellbeing and safety of our people
remains our number one priority. At the onset of
COVID-19 in March 2020 all our offices moved to
a virtual working environment. We are an agile
business, and our existing flexible workplace
culture has enabled us to transition some of
our teams to a hybrid working model in regions
where lockdowns were lifted throughout the
year. To support our leaders, we implemented
COVID leadership training and toolkit to assist
our leaders to transition to managing their teams
100% remotely. In addition to our bi-annual
employee engagement surveys we also surveyed
all employees to gauge our team’s wellbeing and
mental health, as well as the level of satisfaction
with communications from our leadership and
management. To ensure we kept our teams
connected, we introduced weekly global virtual
business update meetings, team meetings,
lunches, dinners and social events. Pleasingly as
a result of this initiative, in June 2021 95% of our
employees told us that our leaders keep them
informed about what is happening at Pureprofile.
98% OF EMPLOYEES WOULD
RECOMMEND PUREPROFILE
AS A GREAT PLACE TO WORK
Despite a disruptive year of COVID-19 lockdowns
and global stress, FY21 saw a 14% uplift in
employee engagement over the year. We’ve
continued to support our employees through our
flexible workplace policies as well as health and
wellness programs designed to aid the wellbeing
of our people. All our global teams have access
to an Employee Assistance Program to provide
access to mental health support services to help
them with whatever they might be going through.
Given the escalating situation in India during the
year, we created a more specific support package
which included an immediate cash payment to
employees and providing health cover to all our
Indian employees, their spouses, children and
parents. More recently we have implemented our
Pure Movers Program. Pure Movers is a
movement, exercise, physical and psychological
drive to get everyone away from their desks for 1
hour every week and move together. This initiative
takes into account our global employee base and
is suitable for employees in lockdown or working
both from home and in the office.
We want our Pureprofile employees to feel they
are part of our community, and we encourage
everyone in our workplace to be themselves.
We believe teams with diverse ideas and
experiences are more creative, more effective
and fuel disruptive thinking. Be it cultural and
ethnic backgrounds, gender identity, age or
sexual orientation, we know diverse teams are
critical to maintaining our success and driving
business performance.
In FY21, across our global teams we had 52%
male employees, 46% female employees, 1%
gender fluid and 1% non-binary. We are also
proud of the diverse backgrounds of our team
with 20 different nationalities and 35 different
ethnic backgrounds across the group.
During FY21, in line with our commitment to
corporate social responsibility and sustainability
we implemented a working group to drive
our approach to environmental, social and
governance factors (“ESG”). We operate lawfully
and ethically in all areas relevant to our
38
97% OF EMPLOYEES
ARE PROUD TO WORK
FOR PUREPROFILE
business, including how we collect data from
panellists, how we service our clients, and how
we handle our employee data internally. Moving
into FY22, we will continue to review our ESG
practices to ensure that they are relevant and
fit for purpose, and we have a solid governance
framework to support that.
Environment, social
and governance (ESG)
Environment
Social
Governance
Digital business model
Diversity & inclusion
ASX listed company
We are committed to reducing
our environmental footprint
by working fully online and
reducing paper consumption.
Amazon web services
We use AWS for all our
infrastructure services,
reducing our carbon impact.
AWS data centers are
more energy-efficient than
enterprise sites due
to their comprehensive
efficiency programs.
Flexible and hybrid
working environment
We are helping to cut
emissions by allowing our
employees to work from
home for part or all of their
working week. Transportation
is currently Australia’s third
largest source of carbon
emissions, with the fastest
pace of growth.
We are committed to providing
a working environment in
which our people contribute
to our success irrespective of
gender, marital status, ethnic
origin, nationality, religion,
sexual orientation or age.
Employee engagement
Engaged employees are
an integral part of our
business. In FY21 our focus
was company wide updates
weekly, ongoing two-way
conversations, regular review
and career discussions
and activities such as Shark
Tank sessions.
Employee wellness,
health and safety
We are committed to ensuring
that our employees feel part
of a caring culture with a
strong sense of support and
wellbeing at work.
Reduction in permanent
office space
Data protection
and privacy
Conducting meetings and
townhalls online, reducing our
collective energy consumption
and realising other carbon
saving benefits.
Is fundamental to Pureprofile.
The protection and security of
our employee, client and panel
data is fundamental to our
business and a key priority.
We comply with the ASX
Corporate Governance
Council’s 4th edition Corporate
Governance Principles.
ISO 20252:2019 certified
Reflecting our commitment
to quality, consistency, and
operational excellence across
our market research services.
GDPR compliance
According to local privacy
legislation in the countries
where we operate, we
place a high premium on
respecting the privacy of
our panellists’ data.
Ethical behaviour
At all times we require our
employees to maintain high
professional, ethical and moral
standards. In August 2021,
we amended our Anti-Bribery
& Corruption Policy and
Whistleblowing Policy.
ANNUAL REPORT 2021
39
SECTION SIX • OUR PEOPLE AND CULTURE
Employee
spotlights
Thomas
Vliagkoftis
Role:
Full Stack Senior Developer
Claire
Fletcher
Role:
Campaign Manager
Length of time at company:
Length of time at company:
5 years
5.5 years
Tell us a little bit about yourself:
I was born and raised in Thessaloniki,
Greece and studied Applied informatics at
the University of Macedonia. After completing
my Bachelors degree, I decided to pursue
my passion for playing music. At age 31
and returned to the engineering industry &
completed a Masters degree in Health
Applied Informatics at the Open University
of Cyprus.
Favorite quote:
“Together we stand, divided we fall” - Pink Floyd
Tell us a little bit about yourself:
I grew up in Belfast, Northern Ireland. After
completing my studies in Communication,
Advertising and Marketing, I struggled to find
a job in the industry so spent a couple of years
working at a construction company. I used the
money to go travelling and when I came back I
found a job with what was then Cohort
in London.
What’s one thing about you that’s not
on your LinkedIn profile?
I worked at the 2012 London Olympics
as a volunteer.
Rosie
Li
Role:
Junior Financial Accountant
Sharique
Shaikh
Role:
Project Consultant
Length of time at company:
Length of time at company:
2 years, 4 months
2 years, 8 months
Tell us a little bit about yourself:
I was born and raised in Beijing, China. I moved
to Sydney in 2013, and studied a
Master of Professional Accounting at the
University of Sydney for 2 years. After
graduation, I started my career at WPPAUNZ
before moving to Pureprofile 2 years later.
What’s one thing about you that’s not on
your LinkedIn profile?
I am now a fully qualified Certified
Practising Accountant (CPA)!
Tell us a little bit about yourself:
I grew up in Mumbai, and started working in the
hospitality industry. I worked for close to
2 years at Marriott Hotels before shifting gears
to start a career in market research.
What’s your favourite meal?
Sandwiches with any type of stuffing
is my go-to meal any time of the day.
What’s the most inspiring part
of your job?
The chance to make an impact. I’ve seen brand
new products being launched after helping a
client run their research.
40
Ujwala
Rawool
Role:
Campaign Manager
Length of time at company:
1 year
Tell us a little bit about yourself:
I grew up in Thane, India and have completed
my post graduate diploma in Advertising
& Media. I have 8 years of experience in SEO
& paid marketing.
What’s the most inspiring part
of your job?
I get to learn about new technologies and
experiment with different strategies everyday.
Nisha
Yadav
Role:
Campaign Manager
Length of time at company:
6 months
Tell us a little bit about yourself:
I am from Bhilai, India and have a degree in
Computer science engineering. Before joining
Pureprofile, I was working for a French-based
skin care company as an associate digital
marketer, where I was handling all the
marketing activities from strategy-building
to promotion.
What’s one thing about you that’s not on
your LinkedIn profile?
I am a certified National Cadet Corps (NCC)
candidate and have been selected for the
Republic Day celebration which is held every
year in New Delhi.
Sugu
Supramaniam
Role:
Product Manager
Length of time at company:
6 months
Tell us a little bit about yourself:
I was born in Singapore and moved to Sydney
in 2005 to do my Bachelors degree. I worked for
about 15 years at a tech company and market
research agency, before moving
to Pureprofile.
How do you think the market research
industry will shift over the next 3-5 years?
With the increased need for fast insights, it’s
no surprise that AI is and will be more heavily
utilised in interesting ways.
In another life, I’m pretty sure I was...
a food critic - I love my food!
Lizzie
Osborn
Role:
Marketing Coordinator
Length of time at company:
1 year, 5 months
Tell us a little bit about yourself:
I grew up in Sydney & graduated from the
University of Technology Sydney in 2017 with a
Bachelors in Marketing Communications.
I previously worked for an asset management
software company before joining Pureprofile &
haven’t looked back!
If I won the lottery tomorrow,
I’d travel the world, and, you know, keep
working here (remotely).
What does success mean to you?
Running my own race, being happy & healthy.
ANNUAL REPORT 2021
41
SECTION SEVEN • DATA, MEDIA AND INNOVATION
42
SECTION SEVEN
Data, Media
& Innovation
59%
of Americans
think drugs are
a major cause
of crime in the US
ANNUAL REPORT 2021 43
SECTION SEVEN • DATA, MEDIA AND INNOVATION
44
Data, solutions and innovation:
The changing landscape
DATA
90% of the world’s data has been created in the
last 12 months. Covid-19 has accelerated the
adoption of online consumption in the form
of e-shopping, news, entertainment and social
media. What this means is that businesses have
more data than ever before at their fingertips.
Their need is now to be able to make sense of this
data and turn it into insights.
SaaS
Our lives have been changed by SaaS, going to
a bank, ordering food and hailing a taxi are just
a few examples of how SaaS enables us to carry
out daily tasks more easily. The data, insights and
media industries have had to adapt to this trend
as all businesses now expect to be able to access
insights and launch campaigns as and when they
want to.
In response to these trends, we focussed
our efforts on creating and improving the
solutions that would make the most impact
n the current climate:
AUDIENCE INTELLIGENCE
Businesses constantly need to understand the
evolving landscape of their audiences. Analysing
quantitative/qualitative data in isolation is
no longer enough. It needs to be fused with
transactional data to paint a holistic picture
of consumers.
Audience Intelligence was launched in FY21 to
identify “who” purchases “what” from “where”. This
product advances Pureprofile’s market research
capabilities to empower understanding into “why”
people purchase or don’t purchase from brands.
Benefits:
• Competitive intelligence
• Consumer spending patterns
• Easy to use dashboard for insights
SOFTWARE AS A SERVICE (SaaS)
Our proprietary survey and analytics platform is
designed to enable clients to conduct fast, high
quality consumer research with ease and at speed.
We spent FY21 refining these capabilities, making
them readily available to brands and businesses
across all industries.
Young Ham
Global Head of Innovation &
Partnerships
In FY21 the data and insights
industry had to adapt quickly
to the changing needs of
businesses across the world.
The Covid-19 pandemic created a constantly
shifting environment and, along with businesses
everywhere, Pureprofile had to keep pace with the
new normal.
I am extremely proud of the way our teams
successfully rose to the challenge; delivering the
insights clients needed with speed, in the way that
they needed them.
In the last 12 months we’ve seen a number of
trends gain traction. To ensure we stayed relevant
and at the forefront of global developments we
knew we had to future-proof our solutions.
Some of the most prevalent trends we
identified included:
TECHNOLOGY
Rapid advances in technology are enabling open
connectivity and the sharing of data
as we’ve never seen before. A business can quickly
connect to consumers, partners, distribution
channels and seamlessly link to internal systems.
In essence, our SaaS solution allows clients to
build surveys directly in the self-service platform
and deploy them to Pureprofile’s highly engaged,
deeply profiled panels.
• Creating new revenue streams
• Building new solutions
•
Improving efficiencies with new ways
of working
• Supporting staff health
• Helping panel members cope with lockdown
and mental health
It was amazing to see how much the employees
care for the business and community around us.
The winning entries were about our people (need
for health and work/life balancing) and rewarding
our loyal panellists (encourage participation, earn
more, increase business revenue). These will be
implemented by FY22 Q2. Following the huge
success of the Shark Tank Competition, we will
introduce regular competitions (twice a year).
Inspiring an innovative workplace and encouraging
forward-thinking is a big part of who we are as a
business. In summary, businesses today want and
need high quality insights, delivered quickly and at
the right price. Pureprofile, with our combination
of data, respondents, media capabilities all
optimised by technology is perfectly positioned
to take advantage of these needs and help clients
understand and impact the world around them.
Benefits:
• Self-serve survey building platform
• Access to Pureprofile’s proprietary panels
• Quality respondents at speed
COMMUNITIES
In FY21 we focussed our attention on helping
clients create their own digitally engaged
communities, developing first-party data assets to
guide business decision making. Our communities
platform allows clients to build, collect and analyse
members’ views to enrich their understanding of
what drives behaviours and preferences.
Benefits:
• Build first-party data asset
• Deeply profiled community members
• Branded eco-system, including quick insights
In April 21, we partnered with Flybuys, Australia’s
most popular loyalty program, to launch an
exclusive community survey platform for their
members.On top of developing these solutions,
we also ensured that we kept up momentum with
our commitment to innovation.
In FY21 we ran our inaugural Shark Tank
Innovation Competition, which saw a fantastic
response across the business (15% of the
employees entered the competition).
Ideas spanned many areas:
ANNUAL REPORT 2021
45
SECTION SEVEN • DATA, MEDIA AND INNOVATION
46
DIGITAL AD SPENDING WORLDWIDE 2019-2024
645.8
585.96
524.31
455.3
378.16
58.20%
60.90%
63.60%
65.90%
67.80%
12.70%
20.40%
15.20%
11.80%
10.20%
335.6
51.00%
18.60%
22001199
22002200
22002211
22002222
22002233
22002244
Digital ad spending ( $ billions)
% change
% of total media ad spending
Source: eMarketer, March 2021
Pure.amplify: How the
media world is changing
NEW PARTNERSHIPS
FY21 saw us establish brand new relationships
with both adtech and publishing partners,
allowing us to deliver niche digital audiences,
at scale.
BESPOKE COOKIELESS SOLUTIONS
The digital world is set to shift dramatically
when third-party cookies are phased out in 2023.
Looking ahead, we see these developments as a
huge potential for the industry, and one that Pure.
amplify, Pureprofile’s dedicated digital advertising
business, is really excited to tackle. Throughout
FY21 and into FY22, we will work on several
solutions that strategically align with the new
cookieless media landscape:
• Leverage our first-party assets
for direct ad targeting
• Focus on digital programmatic
advertising solution
• Harness the power of creating
bespoke audiences for brands
We have an inherent ability to adapt and
innovate at Pure.amplify. With the tools and
technology already in place, we are well placed to
deliver the cookieless solutions that the
industry needs to thrive. In the process,
we remain dedicated to making data more
relevant and more tailored to the specific
needs of our clients.
We are about to enter an exciting moment
of change, which will bring with it tremendous
potential. I have complete faith that we are
well prepared and ready to deliver our very
unique offering to agencies and brands
across the globe.
Tasneem Ali
General Manager
Pure.amplify Media
In FY21 our primary objective
was to cement our position
as a media agency with a
difference; crafting media
strategies based on first-party
declared data - a unique
selling point that sets us
apart from our competitors.
Our media clients benefit from having real-time
access to consumer insights, which helps them
execute a unique, fully customised digital media
plan, thanks to Pureprofile’s 21-year legacy (of
history) in the first-party data business.
Our major achievements in FY21 can be defined in
three specific areas:
GLOBAL EXPANSION AND REBRAND
We worked hard to define our position in
market by launching the Pure.amplify brand,
expanding our offering into the UK and
integrating our sales and operations teams. These
enhancements have certainly made a difference
where it matters, finishing the year with a 65%
increase in new business compared to the
previous year.
ANNUAL REPORT 2021
47
SECTION EIGHT • MEET OUR DIRECTORS
48
13%
of Aussies are
vegan or vegetarian
in order to be more
environmentally
conscious
SECTION EIGHT
Meet our
Directors
ANNUAL REPORT 2021 49
SECTION EIGHT • MEET OUR DIRECTORS
Meet our
directors
50
Andrew Edwards
Non-Executive Chairman
Sue Klose
Non-Executive Director
Martin Filz
Managing Director and CEO
Albert Hitchcock
Board Associate
Andrew has more than 30 years of
marketing and executive leadership
experience. Prior to joining
Pureprofile, Andrew was Chairman
and CEO of internationally renowned
advertising and marketing agency,
Leo Burnett Group UK and Ireland
and President of Leo Burnett Central
Europe. Andrew was also a Global
Board Director with the specific remit
of driving mergers and acquisitions
in Europe, the Middle East, Africa
and roll out of the group’s social and
mobile strategy.
Prior to his roles at Leo Burnett,
Andrew ran Australia’s most
successful and awarded direct and
database marketing company,
Cartwright Williams. Andrew now
focuses his time on Pureprofile and
his portfolio of other
business interests.
Sue Klose is an experienced non-
executive director and executive,
with a diverse background in digital
business growth and operations,
corporate development, strategy
and marketing. Previously the Chief
Marketing Officer of GraysOnline
and COO of 12WBT, she brings deep
experience in digital operations,
marketing and brand strategy,
and digital product development.
As Director of Digital Corporate
Development for News Ltd, Sue
screened hundreds of potential
investments, leading multiple
acquisitions and establishing
the CareerOne and CarsGuide
joint ventures.
She is currently a non-executive
director of Envirosuite (ASX: EVS),
Nearmap (ASX: NEA), Stride and
Honan Insurance Group.
Martin is one of the most well-
respected and influential individuals
in the market research industry
and has held senior executive roles
as Managing Director of EMEA and
APAC at Research Now (now a part of
Dynata) and CEO of EMEA / APAC at
Kantar-owned, Lightspeed GMI. He
joined Pureprofile from Eureka AI, a
business intelligence platform, where
he was Managing Director and Chief
Revenue Officer.
Martin is active in digital and research
bodies including the Association
of Market and Social Research
Organisations (AMSRO), ESOMAR, the
Australian Market and Social Research
Society (AMSRS), and the Interactive
Advertising Bureau (IAB).
Albert Hitchcock is Chief Technology
and Operations Officer for Pearson,
the world’s leading learning
company. In this role Albert leads
Digital product development,
Information technology, Operations
encompassing Supply chain,
Procurement, Customer service, Real
Estate and shared services across
Finance, HR and Technology.
Albert spent a 28-year career in the
technology industry working for BAE
systems, Racal Electronics and Nortel
Networks. In January 2007 Albert
joined Vodafone and was appointed
into the role of Vodafone Group
Chief Information Officer.
Albert is currently a Non-Executive
Director of Nationwide Building
Society. Albert is a Fellow of the
Institute of Engineering and
Technology and a Chartered
Engineer. Albert is based in London.
ANNUAL REPORT 2021 51
SECTION EIGHT • MEET OUR DIRECTORS
Meet some of
our leaders
United Kingdom
Europe
Catherine
Jones
Head of
Media -
UK
Georgia
Prorok
Business Development
Director -
UK
Rebecca
Mansley
Head of Data
& Insights -
UK
USA
India
Joris
Schellekens
Sales Director -
Mainland Europe
George
Georgopoulos
Head of
Engineering -
Europe
52
Asia
Andy
Averill
Vice President
of Sales -
USA
Boni
Krishnaswam
Team Leader -
Panel Management
Bhanu
Singh
Team Leader -
AdOps
Australia
Augustin
Ong
Project
Consultant -
Asia
Keith
Ang
Client Solutions
Director -
Asia
Maqsood
Lulaniya
Manager -
Survey Scripting
Sumedh
Gaikwad
Manager -
Project Management
Data & Insights
Briar
Hawkins
Talent & Culture
Manager
Mo
Li
Financial
Controller
New Zealand
Jo
Harris
Global Head
of Marketing &
Communications
Papaya
Huang
Head of Acquisition,
Panel Management
& Partnership
Emily
Bing
Account Director -
NZ
ANNUAL REPORT 2021 53
SECTION NINE • DIRECTOR'S REPORT
54
54%
of Americans are
concerned about
climate change
SECTION NINE
Director’s
Report
ANNUAL REPORT 2021 55
SECTION NINE • DIRECTOR'S REPORT
56
Pureprofile Ltd
Directors' report
30 June 2021
Pureprofile Ltd
Directors' report
30 June 2021
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'group') consisting of Pureprofile Ltd (referred to hereafter as the 'company' or 'parent entity') and the entities it
controlled at the end of, or during, the year ended 30 June 2021.
Directors
The following persons were directors of Pureprofile Ltd during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Andrew Edwards - Non-Executive Chairman
Sue Klose - Non-Executive Director
Martin Filz - Chief Executive Officer and Managing Director (appointed Chief Executive Officer on 3 August 2020 and
appointed Managing Director on 2 September 2020)
Aaryn Nania - Non-Executive Director (appointed on 28 August 2019 and resigned on 2 September 2020)
Principal activities
During the financial year the principal continuing activities of the group consisted of the provision of profile marketing and
insights technology services.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The profit for the group after providing for income tax amounted to $2,811,156 (30 June 2020: loss of $9,829,481).
Earnings before interest, tax, depreciation, amortisation and significant items (‘EBITDA excluding significant items’) for the
financial year amounted to a profit of $3,141,689 (30 June 2020: $1,401,152).
EBITDA excluding significant items is a financial measure which is not prescribed by Australian Accounting Standards
(‘AAS’) and represents the profit under AAS adjusted for non-specific non-cash and significant items.
The following table summarises key reconciling items between statutory loss after income tax and EBITDA excluding
significant items:
Profit/(loss) after income tax
Less: Interest income
Add: Depreciation and amortisation
Add: Impairment of assets
Add: Loss on disposal of intangible assets
Add: Finance costs
Add: Income tax expense
EBITDA
Less: Gain on loan forgiveness
Add: Restructuring, acquisition and capital raising costs
Add: Share-based payment expense
EBITDA (excluding significant items)
Consolidated
2021
$
2020
$
2,811,156
(815)
3,747,842
-
258,906
2,708,473
43,097
9,568,659
(8,416,780)
848,202
1,141,608
(9,829,481)
(105)
4,350,338
2,107,127
625,027
4,130,173
18,073
1,401,152
-
-
-
3,141,689
1,401,152
Revenue from ordinary activities of $30,002,853 was up 24.0% on prior comparable period ('pcp').
During financial year ('FY') ended 30 June 2021, the group implemented a clear corporate strategy focused on 3 key areas:
●
Global panel - focus on expanding and diversifying our global panel and adding complementary data sources through
strategic partnerships.
● More data, more insights - leverage Pureprofile proprietary data via its Data & Insights and Pure.amplify divisions.
●
Self-service - accelerate our Software as a Service ('SaaS') self-service solutions including Audience Intelligence and
Insights Builder.
At the end of FY2021, the group delivered a number of initiatives against its corporate strategy including:
●
Global Panel - doubled the size of the Australian & United Kingdom panels, implemented a Refer-a-friend program
driving panel acquisition and implemented several quality and fraud prevention initiatives.
● More data, more insights - launched Flybuys partnership and the SGAG community in Singapore.
●
Self-service - we continued to see success in our SaaS solutions Survey Builder and Community Manager. In
addition we launched Audience Intelligence where we signed Uber Eats as a client and are running a number of client
trials. Also, we implemented Flybuys on our Community Manager platform.
The group experienced strong global growth in the core Data & Insights operating segment (which includes SaaS platform)
of 36% on pcp. The Data & Insights division (excluding the SaaS Platform division) delivered growth of 34% on pcp. During
FY2021, the group expanded its Data & Insights division into new regions with offices in Singapore and Mainland Europe.
This coupled with further investment in global sales capability resulted in new client growth, increased project volumes and
revenue growth in all regions.
The group also experienced Platform SaaS growth of 119% on pcp bolstered by revenue from the Flybuys partnership and
the Audience Intelligence solution both of which launched in quarter 4. Pureprofile Perks is an exclusive survey platform
created for members of Flybuys, one of Australia’s largest loyalty programs. The Flybuys community platform has
substantially increased project and survey complete volumes, further driving Pureprofile’s revenue and profitability. In
quarter 4 ('Q4') FY2021, a new panelist joined Pureprofile Perks every 5 minutes, 27 million Flybuys points were earned
and 95,000 surveys completed. Pureprofile’s unique Audience Intelligence SaaS solution pilot launched in April 2021,
providing clients with direct access to unrivalled market intelligence and consumer trends. Using Audience Intelligence,
Pureprofile’s clients are able to access demographic and spending behaviours related to their own businesses and
markets. UberEats signed onto the Audience Intelligence solution in Q4 with a number of interested parties running trials.
EBITDA (excluding significant Items) was $3,141,689 which was up 124% on pcp due to the strong EBITDA growth in the
Data & Insights operating segment coupled with improved business operations from other segments.
Significant changes in the state of affairs
The following significant changes in the state of affairs occurred during the half year:
●
●
Board members: Mr Martin Filz was appointed as Chief Executive Officer and Executive board member, Mr Aaryn
Nania resigned as non-executive board member, effective on 2 September 2020.
Capital raising and Restructure of Debt facility: During Q2, the group successfully raised $18.80 million (before
expenses and subject to rounding) (the Entitlement Offer).The proceeds of the Entitlement Offer have been used as
follows:
(i) significantly restructured the balance sheet by converting a large proportion of the group’s debt to equity
(ii) partially pay down the group’s existing debt to $3m;
(iii) inject further funds into the sales team and global panel partnership;
(iv) commercialisation of the group’s technology;
(v) provide working capital for the group; and
(vi) pay the costs of the Entitlement offer.
Following the completion of the Entitlement Offer and allocation of funds under that offer against the existing debt, the
remaining balance of the facilities ($8,416,780) has been forgiven. The New Facility terms are as follows:
●
New $3m facility - replacing the previous facilities is a new, fully-drawn $3m loan facility, effective on 29 December
2020;
Interest on New Facility - interest rate of 8.5% per annum (payable quarterly);
●
● Maturity of New Facility - 3 years from the date of completion of the Entitlement Offer and payable in advance at the
group’s discretion;
No performance covenants - the New Facility does not contain business performance covenants; and
Performance rights cancelled - the performance rights that were previously issued to Lucerne have been cancelled.
●
●
The New Facility is subject to warranties, indemnities, fees and default fees and terms, which the group considers usual for
a transaction of this size and scope.
55
56
ANNUAL REPORT 2021
57
SECTION NINE • DIRECTOR'S REPORT
58
Pureprofile Ltd
Directors' report
30 June 2021
There were no other significant changes in the state of affairs of the group during the financial year.
Matters subsequent to the end of the financial year
The consequences of the Coronavirus (COVID-19) pandemic are continuing to be felt around the world, and its impact on
the group, if any, has been reflected in its published results to date. It is not possible at this time to state that the pandemic
will not subsequently impact the group's operations going forward. The group now has experience in the swift
implementation of business continuation processes should future lockdowns of the population occur, and these processes
continue to evolve to minimise any operational disruption. Management continues to monitor the situation both locally and
internationally.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect
the group's operations, the results of those operations, or the group's state of affairs in future financial years.
Likely developments and expected results of operations
Information on likely developments in the operations of the group and the expected results of operations have not been
included in this report because the directors believe it would be likely to result in unreasonable prejudice to the group.
Pureprofile Ltd
Directors' report
30 June 2021
Name:
Title:
Qualifications:
Experience and expertise:
The group will continue to build on its core Data and Analytics assets while leveraging them through commercial
applications such as its self-service platform. The group’s corporate strategy is three-fold:
Other current directorships:
Sue Klose
Non-Executive Director
Sue has an MBA in Finance, Strategy and Marketing from the JL Kellogg School of
Management at Northwestern University, and a Bachelor of Science in Economics
from the Wharton School of the University of Pennsylvania.
Sue Klose is an experienced non-executive director and executive, with a diverse
background in digital business growth and operations, corporate development,
strategy and marketing. Previously the Chief Marketing Officer of GraysOnline and
COO of 12WBT, she brings deep experience in digital operations, marketing and
brand strategy, and digital product development. As Director of Digital Corporate
Development for News Ltd, Sue screened hundreds of potential investments, leading
multiple acquisitions and establishing the CareerOne and CarsGuide joint ventures.
She is currently a non-executive director of Envirosuite (ASX: EVS), a provider of
real-time environmental intelligence management systems, Nearmap (ASX: NEA), a
provider of aerial imagery and location intelligence; Stride, one of Australia’s largest
mental health care providers; and Honan Insurance Group, an insurance, risk and
financial solutions provider.
Non-Executive Director of Nearmap (ASX: NEA), Non-Executive Director of
Envirosuite (ASX: EVS)
(1) Focus on building a stronger and more diverse global panel and add complementary data sources through acquisition
and partnerships.
(2) Leverage Pureprofile’s proprietary data.
(3) Begin distribution of our SaaS self-service insights platform.
Although the economic outlook for the year ahead is uncertain, we will focus on the execution of our corporate strategy and
investment to drive earnings growth and positive cash flows from operating activities.
Environmental regulation
The group is not subject to any significant environmental regulation under Australian Commonwealth or State law.
Information on directors
Name:
Title:
Experience and expertise:
Andrew Edwards
Non-Executive Chairman
Andrew has more
than 30 years of marketing and executive
leadership
joining Pureprofile, Andrew was Chairman and CEO of
to
experience. Prior
internationally renowned advertising and marketing agency, Leo Burnett Group UK
and Ireland and President of Leo Burnett Central Europe. Andrew was also a Global
Board Director with the specific remit of driving mergers and acquisitions in Europe,
the Middle East and Africa and roll out of the group's social and mobile strategy.
Prior to his roles at Leo Burnett, Andrew ran Australia’s most successful and awarded
direct and database marketing company, Cartwright Williams. Andrew now focuses
his time on Pureprofile and his portfolio of other business interests.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
Contractual rights to shares:
Chairman of the Audit Committee and Member of the Nomination and Remuneration
Committee
8,862,219 ordinary shares
4,930,156
14,000,000
None
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
Contractual rights to shares:
Chair of the Nomination and Remuneration Committee and Member of the Audit
Committee
None
2,000,000
1,750,000
None
Name:
Title:
Qualifications:
Experience and expertise:
Martin Filz
Chief Executive Officer (appointed on 3 August 2020) and Managing Director
(appointed 2 September 2020)
Institutional Management - Northampton College
Martin is one of the most well-respected and influential individuals in the market
research industry and has held senior executive roles as Managing Director of EMEA
& APAC at Research Now (now a part of Dynata) and CEO of EMEA / APAC at
Kantar-owned, Lightspeed GMI. Most recently Martin was the Managing Director and
Chief Revenue Officer of Eureka AI, a business intelligence platform, which generates
actionable insights from mobile data.
Other current directorships:
None
Former directorships (last 3 years): None
None
Special responsibilities:
375,000 ordinary shares
Interests in shares:
32,867,707
Interests in options:
9,875,000
Interests in rights:
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and
excludes directorships of all other types of entities, unless otherwise stated.
Company secretary
Lee Tamplin was appointed Company Secretary on 14 December 2020. Lee has almost 20 years’ experience in a variety
of roles covering investment management, financial services and corporate governance in both Australia and the UK. Lee
is currently Company Secretary for a number of ASX listed, NSX listed and unlisted public and private companies across a
range of industries. Lee has a Degree in Financial Services, a diploma in Financial Planning and is a Graduate of the
Australian Institute of Company Directors Course. He is also a member of the Governance Institute of Australia. Prior to
joining Automic, Lee was a Senior Client Relationship and Business Development Manager for a global share registry.
57
58
ANNUAL REPORT 2021
59
SECTION NINE • DIRECTOR'S REPORT
60
Pureprofile Ltd
Directors' report
30 June 2021
Pureprofile Ltd
Directors' report
30 June 2021
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2021, and
the number of meetings attended by each director were:
Full Board
Attended
Held
Nomination and
Remuneration Committee
Attended
Held
Audit and Risk Committee
Attended
Held
Andrew Edwards
Sue Klose
Martin Filz
11
11
11
11
11
11
-
-
-
-
-
-
-
-
-
-
-
-
Held: represents the number of meetings held during the time the director held office.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the group, in accordance
with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the group's executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good
reward governance practices:
●
●
●
●
competitiveness and reasonableness;
acceptability to shareholders;
performance linkage / alignment of executive compensation; and
transparency.
The Nomination and Remuneration Committee is responsible for reviewing and making recommendations to the Board on
remuneration packages and policies relating to the directors and executives and to ensure that the remuneration policies
and practices are consistent with the group's strategic goals and human resource objectives.
In consultation with external remuneration consultants who were engaged in previous financial years, the Nomination and
Remuneration Committee has structured an executive remuneration framework that is market competitive and
complementary to the reward strategy of the group.
The reward framework is designed to align executive reward to shareholders' interests. The Board has considered that it
should seek to enhance shareholders' interests by:
●
●
having economic profit as a core component of plan design;
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value; and
attracting and retaining high calibre executives.
●
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors' remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive
directors' fees and payments are reviewed annually by the Nomination and Remuneration Committee. The Nomination and
Remuneration Committee may, from time to time, receive advice from independent remuneration consultants to ensure
non-executive directors' fees and payments are appropriate and in line with the market. The chairman's fees are
determined independently to the fees of other non-executive directors based on comparative roles in the external market.
The chairman is not present at any discussions relating to the determination of his own remuneration. Non-executive
directors do not receive short-term incentives and their remuneration must not include a commission on, or a percentage
of, operating revenue.
ASX listing rules require the aggregate non-executive directors remuneration be determined periodically by a general
meeting. Under the company’s constitution and as set out in the IPO Prospectus, total aggregate remuneration available to
non-executive directors is set currently at $600,000 per annum. Non-executive director fees (directors' fees and committee
fees, inclusive of superannuation) proposed for the year ending 30 June 2022 are summarised as follows:
Name
Sue Klose
Andrew Edwards*
FY 2022 Fees
$70,320
$132,000
*
Reverted to Non-Executive Chairman on 2 September 2020.
All directors are also eligible for additional long term incentives under the company's Long Term Incentive plan ('LTI'). The
company from time to time grant director share options under the LTI. Refer to Long Term Incentives section below for key
terms and conditions of the LTI.
Executive remuneration
The group aims to reward executives based on their position and responsibility, with a level and mix of remuneration which
has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits;
short-term performance incentives;
share-based payments; and
other remuneration such as superannuation and long service leave.
The combination of these comprises the executive's total remuneration. The remuneration packages for executives are
considered by the Nomination and Remuneration Committee and approved by the Board. At the absolute discretion of the
Nomination and Remuneration Committee, the company may seek external advice on the appropriate level and structure
of remuneration packages from time to time.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, is reviewed annually by the
Nomination and Remuneration Committee, based on individual and business unit performance, the overall performance of
the group and comparable market remuneration.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the group and provides additional value to the executive.
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience;
reflecting competitive reward for contribution to growth in shareholder wealth; and
providing a clear structure for earning rewards.
59
60
ANNUAL REPORT 2021
61
SECTION NINE • DIRECTOR'S REPORT
62
Pureprofile Ltd
Directors' report
30 June 2021
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance
hurdles of executives. Under the STI, eligible executives may be offered cash incentives ('rewards') which may be subject
to vesting conditions set by the Board. Each offer of rewards under the STI is, or will be, on the terms generally described
as follows:
●
●
the Board will determine the total dollar amount of the STI, calculated as a percentage of their salary package;
the payment (or part payment) of the STI will be subject to fulfilment (or part fulfilment) of performance conditions set
by the Board;
any STI that becomes payable will be paid in cash and, at the discretion of the Board, by the grant of rights to receive
shares ('service rights') of equivalent value (as determined by the Board at the time of grant);
if granted, the service rights will vest 13 months from grant date provided that the eligible employee is still employed
by the company at the vesting date;
on vesting employees will receive the shares that are subject to the service rights without payment of any exercise
price;
service right holders are not entitled to participate in new issues of shares or other securities made by the company to
holders of shares without receiving the shares that are subject to the service rights before the record date for the
relevant issue;
if, prior to the receipt of shares that are subject to the service right, the company makes a pro rata bonus issue to the
holders of its shares, and the shares that are subject to the service right are not issued prior to the record date in
respect of that bonus issue, the service right will, when vested, entitle the holder to one share plus the number of
bonus shares which would have been issued to the holder if the shares that are subject to the service right had been
issued prior to the record date; and
if, prior to the receipt of shares that are subject to the service right, the company undergoes a reorganisation of capital
(other than by way of a bonus issue for cash), the terms of the service rights will be changed to the extent necessary
to comply with the ASX Listing Rules as they apply at the relevant time.
●
●
●
●
●
●
The long-term incentives include long service leave and share-based payments. The company has adopted a long term
incentive plan ('LTI') in order to assist in the motivation and retention of key staff. The LTI is designed to align the interest
of eligible executives and employees more closely with the interests of the shareholders by providing an opportunity for
eligible executives and employees to receive an equity interest in the company.
Under the LTI, eligible executives and employees may be given rights or options to acquire shares which may be subject to
vesting conditions set by the Board. Each grant of rights or options under the LTI is, or will be, on the terms generally
described as follows:
●
●
●
●
●
the Board will determine the number of rights or options to be granted to each eligible employee;
rights or options will vest progressively over the periods which were determined by the Board at the time of the grant;
the expiration date will be determined by the Board at the time of the grant;
the exercise price is set by the Board at the time of the grant;
rights or options holders are not entitled to participate in new issues of shares or other securities made by the
company to holders of shares without exercising the rights or options before the record date for the relevant issue;
if, prior to the exercise of a right or option, the company makes a pro rata bonus issue to the holders of its shares, and
the right or option is not exercised prior to the record date in respect of that bonus issue, the right or option will, when
vested, entitle the holder to one share plus the number of bonus shares which would have been issued to the holder if
the right or option had been exercised prior to the record date; and
if, prior to the exercise of a right or option, the company undergoes a reorganisation of capital (other than by way of a
bonus issue for cash), the terms of the rights or options will be changed to the extent necessary to comply with the
ASX Listing Rules as they apply at the relevant time.
●
●
Group performance and link to remuneration
Remuneration for certain individuals is directly linked to the performance of the group. A portion of cash bonus and
incentive payments are dependent on defined revenue and earnings targets being met. The remaining portion of the cash
bonus and incentive payments are at the discretion of the Nomination and Remuneration Committee.
The Nomination and Remuneration Committee is of the opinion that the adoption of performance based compensation will
have a positive impact on its earnings, which in turn will have a positive impact on its share price. This is expected to
increase shareholder wealth if maintained over the coming years.
Consequences of performance on shareholder wealth
In considering the group's performance and benefits to shareholder wealth, the remuneration committee has had regard to
the share price in respect of the current financial year and the previous two financial years.
Pureprofile Ltd
Directors' report
30 June 2021
Share price
2021
2020
2019
$0.027
$0.006
$0.010
Use of remuneration consultants
During the financial year ended 30 June 2021, the group engaged PricewaterhouseCoopers ('PwC') to review the group's
share-based incentive programs and provide recommendations on how to improve the LTI program. PwC were paid
$66,300 for these services.
Voting and comments made at the company's 2020 Annual General Meeting ('AGM')
At the 2020 AGM, 97.7% of the votes received supported the adoption of the remuneration report for the year ended 30
June 2020. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the group are set out in the following tables.
The key management personnel of the group consisted of the following directors of Pureprofile Ltd:
●
Andrew Edwards - Non-Executive Chairman (appointed Executive on 28 August 2019 and re-appointed Non-
Executive on 2 September 2020)
Sue Klose - Non-Executive Director
●
● Martin Filz - Chief Executive Officer and Managing Director (appointed Chief Executive Officer on 3 August 2020 and
appointed Managing Director on 2 September 2020)
Aaryn Nania - Non-Executive Director (appointed on 28 August 2019 and resigned 2 September 2020)
●
And the following person:
● Melinda Sheppard - Chief Operating Officer/Chief Financial Officer
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Other
$
Super-
annuation
$
Employee
leave
$
Equity-
settled
$
Total
$
110,000
58,600
-
326,521
262,173
757,294
-
-
-
-
-
-
-
-
-
-
-
-
10,450
5,567
-
20,229
22,390
58,636
-
-
-
-
-
-
411,213
72,511
-
531,663
136,678
-
326,225
672,975
112,068
922,017
396,631
1,737,947
2021
Non-Executive Directors:
A. Edwards
S. Klose
A. Nania*
Executive Directors:
M. Filz*
Other Key Management
Personnel:
M. Sheppard
*
Represents remuneration from the date of appointment and/or to the date of resignation
61
62
ANNUAL REPORT 2021
63
SECTION NINE • DIRECTOR'S REPORT
64
Pureprofile Ltd
Directors' report
30 June 2021
2020
Non-Executive Directors:
S. Klose
A. Nania
Executive Directors:
A. Edwards
N. Jones*
Other Key Management
Personnel:
M. Sheppard
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Other
$
Super-
annuation
$
Employee
leave
$
Equity-
settled
$
78,618
32,690
120,500
184,951
236,250
653,009
-
-
-
-
-
-
-
-
-
-
-
-
4,049
3,106
7,600
15,402
22,444
52,601
-
-
-
-
-
-
Total
$
82,667
35,796
128,100
200,353
258,694
705,610
-
-
-
-
-
-
*
Represents remuneration from the date of appointment and/or to the date of resignation
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
A. Edwards
S. Klose
A. Nania
Executive Directors:
N. Jones
M. Filz
Other Key Management Personnel:
M. Sheppard
Fixed
remuneration
2021
2020
At risk - STI
2021
At risk - LTI
2021
23%
47%
-
-
52%
100%
100%
100%
100%
-
77%
53%
-
-
48%
72%
100%
28%
-
-
-
-
-
-
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Andrew Edwards
Non-Executive Chairman
12 June 2015
Appointment until next Annual General Meeting, at which he will be eligible for re-
election
Base salary for the year ended 30 June 2021 of $120,000 plus superannuation, to be
reviewed from time to time by the Nomination and Remuneration Committee in
accordance with constitution and policies and eligibility to short-term and long-term
incentives under the Incentives Scheme, which defines the amount, form, frequency,
KPIs and targets to which the incentives relate. As from March 2020, consistent with
the group’s COVID-19 cost saving measures, Andrew has stopped receiving director
fees voluntarily for the remainder of the financial year. The base salary has been
reinstated from August 2020, after the group has seen its recovery from the
pandemic.
Pureprofile Ltd
Directors' report
30 June 2021
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Sue Klose
Non-Executive Director
1 September 2018
Appointment until next Annual General Meeting, at which she will be eligible for re-
election
Base salary of $70,000 for the year ended 30 June 2021 including superannuation, to
be reviewed from time to time by the Nomination and Remuneration Committee in
accordance with constitution and policies. Eligibility to long-term incentives under the
Incentives Scheme, which defines the amount, form, frequency, KPIs and targets to
which the incentives relate. As from March 2020, consistent with the group’s COVID-
19 cost saving measures, Sue has stopped receiving director fees voluntarily for the
remainder of the financial year. The base salary has been reinstated from August
2020, after the group has seen its recovery from the pandemic.
Martin Filz
Chief Executive Officer and Managing Director
3 August 2020
No fixed end date
Base salary of $400,000 plus superannuation, to be reviewed from time to time by the
Nomination and Remuneration Committee in accordance with constitution and
in
policies. Reimbursement of
connection with the performance of duties. 3 month termination notice period by
either party. Eligibility to short-term and long-term incentives, under the Incentives
Scheme, which defines the amount, form, frequency, KPI’s and targets to which the
incentives relate.
reasonable out-of-pocket expenses
incurred
Melinda Sheppard
Chief Operating Officer/Chief Financial Officer
25 June 2018
No fixed end date
Base salary for the year ended 30 June 2021 of $276,750 plus superannuation, to be
reviewed from time to time by the Nomination and Remuneration Committee in
accordance with constitution and policies. Reimbursement of reasonable out-of-
pocket expenses incurred in connection with the performance of duties. 3 month
termination notice period by either party. Eligibility to short-term incentive reward of
up to $151,250 and eligibility to long-term incentives, under the Incentives Scheme,
which defines the amount, form, frequency, KPIs and targets to which the incentives
relate. As from April 2020, consistent with the group’s COVID-19 cost saving
measures, Melinda has voluntarily taken a temporary 50% salary cut in Q4 FY20 and
20% salary cut in Q1 FY21. The salary has been reinstated to normal from October
2020, after the group has seen its recovery from the pandemic.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the year
ended 30 June 2021 (2020: nil).
63
64
ANNUAL REPORT 2021
65
SECTION NINE • DIRECTOR'S REPORT
66
Pureprofile Ltd
Directors' report
30 June 2021
Pureprofile Ltd
Directors' report
30 June 2021
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are as follows:
Name
Number of
options
granted
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
A. Edwards
4,930,156 29/01/2021
30/06/2021
01/04/2026
$0.020
$0.0153
S. Klose
M. Filz
M. Sheppard
2,000,000 29/01/2021
30/06/2021
01/04/2026
$0.020
$0.0153
10,955,902 29/01/2021
10,955,902 29/01/2021
10,955,903 29/01/2021
4,208,906 01/04/2021
4,208,906 01/04/2021
4,208,907 01/04/2021
01/09/2021
01/09/2022
01/09/2023
01/09/2021
01/09/2022
01/09/2023
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
$0.020
$0.020
$0.020
$0.020
$0.020
$0.020
$0.0153
$0.0153
$0.0153
$0.0161
$0.0161
$0.0161
Options granted carry no dividend or voting rights.
Share rights
The terms and conditions of each grant of share rights over ordinary shares affecting remuneration of directors and other
key management personnel in this financial year or future reporting years are as follows:
Name
A. Edwards
S. Klose
Number of
rights
granted
Grant date
Vesting date and
exercisable date
14,000,000 29/01/2021
1,750,000 29/01/2021
30/06/2021
30/06/2021
Expiry date
01/04/2026
01/04/2026
Fair value
per right
at grant date
$0.0240
$0.0240
Share rights granted carry no dividend or voting rights.
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key
management personnel of the group, including their personally related parties, is set out below:
Ordinary shares
A. Edwards
M. Filz
M. Sheppard
Balance at
the start of
the year
Received
as part of
remuneration
984,691
-
-
984,691
-
-
-
-
Additions
7,877,528
375,000
250,000
8,502,528
Disposals/
other*
Balance at
the end of
the year
-
-
-
-
8,862,219
375,000
250,000
9,487,219
*
Disposals/other represents a member no longer being designated as a KMP and does not represent a disposal of
holding.
Option holding
The number of options over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the group, including their personally related parties, is set out below:
Options over ordinary shares
A. Edwards
S. Klose
M. Filz
M. Sheppard
Balance at
the start of
the year
Granted
Expired
Disposals/
other*
-
-
-
-
-
4,930,156
2,000,000
32,867,707
12,626,719
52,424,582
-
-
-
-
-
-
-
-
-
-
Balance at
the end of
the year
4,930,156
2,000,000
32,867,707
12,626,719
52,424,582
*
Disposals/other represents a member no longer being designated as a KMP and does not represent a disposal of
holding.
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of directors and
other key management personnel in this financial year or future reporting years are as follows:
Share rights holding
The number of share rights over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the group, including their personally related parties, is set out below:
Name
M. Filz
M. Sheppard
Number of
rights
granted
Grant date
4,937,500 29/01/2021
2,468,750 29/01/2021
2,468,750 29/01/2021
3,125,000 01/04/2021
1,562,500 01/04/2021
1,562,500 01/04/2021
Vesting date and
exercisable date
29/07/2021
29/01/2022
29/01/2023
01/10/2021
01/04/2022
01/04/2023
Expiry date
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
Fair value
per right
at grant date
$0.0240
$0.0240
$0.0240
$0.0250
$0.0250
$0.0250
Performance rights granted carry no dividend or voting rights.
Share rights over ordinary shares
A. Edwards
S. Klose
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other*
Balance at
the end of
the year
-
-
-
14,000,000
1,750,000
15,750,000
-
-
-
-
-
-
14,000,000
1,750,000
15,750,000
*
Disposals/other represents a member no longer being designated as a KMP and does not represent a disposal of
holding.
65
66
ANNUAL REPORT 2021
68
Number
under rights
9,875,000
6,250,000
16,125,000
67
SECTION NINE • DIRECTOR'S REPORT
Pureprofile Ltd
Directors' report
30 June 2021
Pureprofile Ltd
Directors' report
30 June 2021
Performance rights holding
The number of performance rights over ordinary shares in the company held during the financial year by each director and
other members of key management personnel of the group, including their personally related parties, is set out below:
Shares under performance rights
Unissued ordinary shares of Pureprofile Ltd under performance rights at the date of this report are as follows:
Performance rights over ordinary shares
M. Filz
M. Sheppard
Balance at
the start of
the year
Granted
Vested
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
9,875,000
6,250,000
16,125,000
-
-
-
-
-
-
9,875,000
6,250,000
16,125,000
Other transactions with key management personnel and their related parties
During the financial year, expenses totalling $7,934 (2020: $2,612) were reimbursed to key management personnel. There
were no loans to or from key management personnel at the current and previous reporting date.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Pureprofile Ltd under option at the date of this report are as follows:
Grant date
19/10/2020
29/01/2021
29/01/2021
29/01/2021
01/04/2021
01/04/2021
24/05/2021
Expiry date
08/12/2022
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
08/12/2022
Exercise
price
Number
under option
$0.030
$0.020
$0.020
$0.020
$0.020
$0.020
$0.030
15,000,000
4,930,156
2,000,000
32,867,707
12,626,719
34,023,703
4,000,000
105,448,285
Shares issued on the exercise of options
There were no ordinary shares of Pureprofile Ltd issued on the exercise of options during the year ended 30 June 2021
and up to the date of this report.
Grant date
29/01/2021
01/04/2021
Expiry date
01/04/2026
01/04/2026
No person entitled to exercise the performance rights had or has any right by virtue of the performance rights to participate
in any share issue of the company or of any other body corporate.
Shares issued on the exercise of performance rights
There were no ordinary shares of Pureprofile Ltd issued on the exercise of performance rights during the year ended 30
June 2021 and up to the date of this report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking
responsibility on behalf of the company for all or part of those proceedings.
Shares under share rights
Unissued ordinary shares of Pureprofile Ltd under share rights at the date of this report are as follows:
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Grant date
29/01/2021
29/01/2021
01/04/2021
01/04/2021
Expiry date
01/04/2026
01/04/2026
01/04/2026
01/04/2026
Number
under rights
14,000,000
1,750,000
2,453,740
703,942
18,907,682
No person entitled to exercise the share rights had or has any right by virtue of the service right to participate in any share
issue of the company or of any other body corporate.
Shares issued on the exercise of share rights
There were no ordinary shares of Pureprofile Ltd issued on the exercise of share rights during the year ended 30 June
2021 and up to the date of this report.
Officers of the company who are former partners of Grant Thornton Australia
There are no officers of the company who are former partners of Grant Thornton Australia.
Rounding of amounts
The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191,
issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in the Directors'
Report and Financial Report have been rounded to the nearest dollar.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
67
68
ANNUAL REPORT 2021
69
SECTION NINE • DIRECTOR'S REPORT
70
Pureprofile Ltd
Directors' report
30 June 2021
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act
2001.
On behalf of the directors
___________________________
Andrew Edwards
Non-Executive Chairman
26 August 2021
Sydney
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Pureprofile Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Pureprofile
Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
S M Coulton
Partner – Audit & Assurance
Sydney, 26 August 2021
69
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
ANNUAL REPORT 2021
71
SECTION TEN • FINANCIAL REPORT
72
24%
of Brits believe
that the monarchy
should be abolished
SECTION TEN
Financial
Report
ANNUAL REPORT 2021 73
SECTION TEN • FINANCIAL REPORT
74
Pureprofile Ltd
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
Pureprofile Ltd
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
Profit/(loss) per share for profit/(loss) from continuing operations attributable
to the owners of Pureprofile Ltd
Basic earnings per share
Diluted earnings per share
Loss per share for loss from discontinued operations attributable to the
owners of Pureprofile Ltd
Basic earnings per share
Diluted earnings per share
Profit/(loss) per share for profit/(loss) attributable to the owners of Pureprofile
Ltd
Basic earnings per share
Diluted earnings per share
37
37
37
37
37
37
Cents
Cents
0.43
0.42
(8.22)
(8.22)
-
-
(0.15)
(0.15)
0.43
0.42
(8.36)
(8.36)
Revenue
Other income
Interest revenue calculated using the effective interest method
Gain on loan forgiveness
Expenses
Direct costs of revenue
Employee benefits expense
Foreign exchange loss
Depreciation and amortisation expense
Impairment of assets
Loss on disposal of intangible assets
Technology, engineering and licence fees
Share-based payment expense
Restructuring, acquisition and capital raising costs
Occupancy costs
Other expenses
Finance costs
Profit/(loss) before income tax expense from continuing operations
Income tax expense
Consolidated
Note
2021
$
2020
$
5
6
7
7
8
30,002,038
24,186,722
843,454
815
8,416,780
899,243
105
-
(13,210,595)
(10,339,644)
(30,813)
(3,747,842)
-
(258,906)
(2,222,129)
(1,141,608)
(848,202)
(62,449)
(1,838,173)
(2,708,473)
(10,507,493)
(8,995,359)
-
(4,350,338)
(2,107,127)
(625,027)
(2,116,084)
-
-
(326,859)
(1,568,018)
(4,130,173)
2,854,253
(9,640,408)
(43,097)
(18,073)
Profit/(loss) after income tax expense from continuing operations
2,811,156
(9,658,481)
Loss after income tax expense from discontinued operations
-
(171,000)
Profit/(loss) after income tax expense for the year attributable to the owners of
Pureprofile Ltd
2,811,156
(9,829,481)
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive loss for the year, net of tax
(4,700)
(32,900)
(4,700)
(32,900)
Total comprehensive profit/(loss) for the year attributable to the owners of
Pureprofile Ltd
2,806,456
(9,862,381)
Total comprehensive profit/(loss) for the year is attributable to:
Continuing operations
Discontinued operations
2,806,456
-
(9,691,381)
(171,000)
2,806,456
(9,862,381)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
71
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
72
ANNUAL REPORT 2021
75
SECTION TEN • FINANCIAL REPORT
76
Pureprofile Ltd
Statement of financial position
As at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Other
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangibles
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Income tax
Provisions
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets/(liabilities)
Equity
Issued capital
Reserves
Accumulated losses
Total equity/(deficiency)
Consolidated
Note
2021
$
2020
$
9
10
11
12
13
14
15
17
18
19
20
21
22
23
24
3,621,675
5,700,828
689,083
1,056,642
11,068,228
1,768,401
3,717,695
402,593
797,253
6,685,942
147,611
1,945,484
6,237,541
8,330,636
187,540
2,374,240
7,434,547
9,996,327
19,398,864
16,682,269
7,172,052
733,321
-
362,007
66,584
2,453,258
10,787,222
5,956,450
377,687
24,392,384
489,534
40,275
2,015,580
33,271,910
3,000,000
1,750,327
112,859
4,863,186
-
2,024,027
124,958
2,148,985
15,650,408
35,420,895
3,748,456
(18,738,626)
25
26
59,892,781
1,482,306
(57,626,631)
41,461,502
237,659
(60,437,787)
3,748,456
(18,738,626)
Pureprofile Ltd
Statement of changes in equity
For the year ended 30 June 2021
Consolidated
Balance at 1 July 2019
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total
deficiency in
equity
$
41,461,502
270,559
(50,608,306)
(8,876,245)
Loss after income tax expense for the year
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
-
-
-
-
(32,900)
(9,829,481)
-
(9,829,481)
(32,900)
(32,900)
(9,829,481)
(9,862,381)
Balance at 30 June 2020
41,461,502
237,659
(60,437,787)
(18,738,626)
Consolidated
Balance at 1 July 2020
Profit after income tax expense for the year
Other comprehensive loss for the year, net of tax
Total comprehensive profit/(loss) for the year
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
41,461,502
237,659
(60,437,787)
(18,738,626)
-
-
-
-
(4,700)
2,811,156
-
2,811,156
(4,700)
(4,700)
2,811,156
2,806,456
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 25)
Share-based payments (note 38)
18,431,279
-
-
1,249,347
-
-
18,431,279
1,249,347
Balance at 30 June 2021
59,892,781
1,482,306
(57,626,631)
3,748,456
The above statement of financial position should be read in conjunction with the accompanying notes
73
The above statement of changes in equity should be read in conjunction with the accompanying notes
74
ANNUAL REPORT 2021
77
SECTION TEN • FINANCIAL REPORT
78
Pureprofile Ltd
Statement of cash flows
For the year ended 30 June 2021
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Receipts from Government grant
Interest received
Interest and other finance costs paid
Income taxes paid
Net cash from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for intangibles
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Proceeds from borrowings
Repayment of borrowings
Repayment of lease liabilities
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Consolidated
Note
2021
$
2020
$
39
13
15
25
30,331,757
(28,246,741)
28,878,388
(27,359,407)
2,085,016
478,500
815
(175,681)
(37,683)
1,518,981
234,000
105
(255,653)
(75,064)
2,350,967
1,422,369
(43,736)
(2,012,257)
8,841
(30,387)
(2,375,521)
-
(2,047,152)
(2,405,908)
13,396,878
(1,080,749)
-
(9,896,878)
(863,588)
-
-
5,600,000
(2,069,339)
(1,267,371)
1,555,663
2,263,290
1,859,478
1,768,401
(6,204)
1,279,751
524,322
(35,672)
Cash and cash equivalents at the end of the financial year
9
3,621,675
1,768,401
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 1. General information
The financial statements cover Pureprofile Ltd as a group consisting of Pureprofile Ltd and the entities it controlled at the
end of, or during, the year. The financial statements are presented in Australian dollars, which is Pureprofile Ltd's functional
and presentation currency.
Pureprofile Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office
and principal place of business are:
Registered office
Level 5
126 Phillip Street
Sydney NSW 2000
Australia
Principal place of business
263 Riley Street
Surry Hills NSW 2010
Australia
A description of the nature of the group's operations and its principal activities are included in the directors' report, which is
not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 26 August 2021. The
directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the group:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The group has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework contains new
definition and recognition criteria as well as new guidance on measurement that affects several Accounting Standards, but
it has not had a material impact on the group's financial statements.
IFRS Interpretations Committee guidance on cloud computing arrangement
In April 2021, the International Financial Reporting Standards Interpretations Committee ('IFRIC') issued a final agenda
decision, configuration or customisation costs in a cloud computing arrangement. The decision discusses whether
configuration or customisation expenditure relating to cloud computing arrangements is able to be recognised as an
intangible asset and if not, over what time period the expenditure is expensed. The adoption of this agenda decision has no
material impact on the group’s current or prior periods presented. As at 30 June 2021, The group has adopted this IFRIC
agenda decision.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention.
The above statement of cash flows should be read in conjunction with the accompanying notes
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SECTION TEN • FINANCIAL REPORT
80
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 3.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Pureprofile Ltd ('company'
or 'parent entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. Pureprofile Ltd and its
subsidiaries together are referred to in these financial statements as the 'group'.
Subsidiaries are all those entities over which the group has control. The group controls an entity when the group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the group. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the group are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the group.
The acquisition of common control subsidiaries is accounted for at book value. The acquisition of other subsidiaries is
accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is
accounted for as an equity transaction, where the difference between the consideration transferred and the book value of
the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.
Where the group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The group
recognises the fair value of the consideration received and the fair value of any investment retained together with any gain
or loss in profit or loss.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same
basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the
allocation of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Pureprofile Ltd's functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into the company's functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the
reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average
exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange
differences are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Revenue recognition
The group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the group is expected to be entitled in
exchange for transferring goods or services to a customer. For each contract with a customer, the group: identifies the
contract with a customer; identifies the performance obligations in the contract; determines the transaction price which
takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the
separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the
transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable
consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement
constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts
received that are subject to the constraining principle are recognised as a refund liability.
Sales revenue - Data and Insights
Revenue relating to the provision of services for Data & Insights encapsulates online market research services which helps
businesses connect to, and receive feedback from, consumers who are registered to www.pureprofile.com. The group
generates sales revenue by charging clients for access to its online panel for survey responses and may additionally
charge for set-up and support services. Contracts with clients generally comprise a single distinct performance obligation,
being the provision of market research services and the transaction price is allocated to the single performance obligation.
Some contracts contain multiple deliverables – such as set-up and support services. In such circumstances, these multiple
deliverables are considered to represent a single distinct performance obligation, given there is a significant integration
performed by the group in delivering the services. For fixed-price contracts, revenue is recognised over time and is based
on the actual service provided to the end of the reporting period as a proportion of the total services to be provided
because the customer receives and uses the benefits simultaneously. This is determined based on the actual surveys
completed relative to the total expected surveys.
Sales revenue - Pure.amplify Media AU (formerly Media)
Revenue relating to Media sales is generated through the programmatic buying and selling of ad inventory, provision of
online marketing solutions for advertisers and advertising yield optimisation solutions for online publishers. The group
generates sales revenue for managed campaign (programmatic trading) services by charging clients for purchasing ad
inventory and managing the placement of ads on their behalf (at a marked-up price to the ad inventory purchased or as a
service fee). The group also generates sales revenue for Media Trading service by buying and reselling ad inventory. The
group also generates sales revenue by helping publishers to increase yield through programmatically selling their ad
inventory. Contracts with clients generally comprise a single distinct performance obligation, being the provision of Media
services described above and the transaction price is allocated to the single performance obligation. Fees for the provision
of services are recognised as revenue as the services are rendered, in accordance with the terms and conditions of the
service agreement.
Sales revenue - Pure.amplify Media UK (formerly Performance)
Revenue relating to the provision digital marketing is generated by providing lead generation and email marketing services.
The group generates sales revenue for lead generation services by charging clients on a price per lead basis. The group
generates sales revenue from email marketing using various revenue models including cost per thousand (CPM), cost per
click (CPC) and cost per acquisition (CPA). Contracts with clients generally comprise a single distinct performance
obligation, being the provision of Lead Generation and Email marketing services described above and the transaction price
is allocated to the single performance obligation. For fixed-price contracts, revenue is recognised based on the actual
service provided to the end of the reporting period as a proportion of the total services to be provided because the
customer receives and uses the benefits simultaneously. This is determined based on the actual leads obtained relative to
the total expected leads.
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SECTION TEN • FINANCIAL REPORT
82
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Note 2. Significant accounting policies (continued)
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Government grants
Grants from the government are recognised at their fair value when there is reasonable assurance that the grant will be
received and that the group will comply with all attached conditions. Government grants relating to costs are deferred and
recognised in profit or loss as other income over the periods necessary to match them with the costs that they are intended
to compensate.
Government grants received which do not relate to any specific costs are recognised as income received in the period in
which they are received.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the
applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to
temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when
the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted,
except for:
●
when the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting
nor taxable profits; or
when the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and
the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the
foreseeable future.
●
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred
tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for
the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is
probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable
authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.
Pureprofile Ltd. (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax consolidated
group with tax funding agreements, under the tax consolidation regime, effective 7 November 2014. The head entity and
each subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax
consolidated group has applied the 'separate taxpayer within group' 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 each subsidiary 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 the subsidiaries to the head entity.
Discontinued operations
A discontinued operation is a component of the group that has been disposed of or is classified as held for sale and that
represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to
dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations are presented separately on the face of the statement of profit or loss and other
comprehensive income.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the group's
normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the group's normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within
30 days.
The group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Contract assets
Contract assets are recognised when the group has transferred goods or services to the customer but where the group is
yet to establish an unconditional right to consideration. Contract assets are treated as financial assets for impairment
purposes.
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
over their expected useful lives as follows:
Office and computer equipment
3 to 9 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
79
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SECTION TEN • FINANCIAL REPORT
84
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Note 2. Significant accounting policies (continued)
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in
the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset,
and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the group expects to obtain ownership of the leased asset at the end of
the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted
for any remeasurement of lease liabilities.
The group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss
as incurred.
Intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value
at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible
assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are
subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss
arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the
carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually.
Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation
method or period.
Goodwill
Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for
impairment, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at
cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not
subsequently reversed.
Software
Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute
to future period financial benefits through revenue generation and/or cost reductions are capitalised. Costs capitalised
include external direct costs of materials and service and employee costs. Software development costs include only those
costs directly attributable to the development phase and are only recognised following completion of technical feasibility
and where the group has an intention and ability to use the asset. Software costs are amortised on a straight-line basis
over the period of their expected benefit, being their finite life of between four and five years.
Customer contracts and partner network arrangements
Acquired membership database is amortised over 7 years, on a straight line basis.
Membership base
Membership bases acquired are amortised over their useful economic life of 7 years on a straight line basis.
Brand names
Acquired brand names are not amortised. Instead, brand names are tested annually for impairment, or more frequently if
events or changes in circumstances indicate that they might be impaired, and is carried at cost less accumulated
impairment losses.
Impairment of non-financial assets
Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment,
or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets
are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the group prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted.
The amounts are unsecured and are usually paid within 59 days of recognition.
Contract liabilities
Contract liabilities represent the group's obligation to transfer goods or services to a customer and are recognised when a
customer pays consideration, or when the group recognises a receivable to reflect its unconditional right to consideration
(whichever is earlier) before the group has transferred the goods or services to the customer.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They
are subsequently measured at amortised cost using the effective interest method.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the group's incremental borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option
is reasonably certain to occur, and any anticipated termination penalties.
The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are
incurred. Variable lease payments include rent concessions in the form of rent forgiveness or a waiver as a direct
consequence of the Coronavirus (COVID-19) pandemic and which relate to payments originally due on or before 30 June
2021.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured
if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use
asset is fully written down.
Group as a lessor
Leases in which the group transfers substantially all the risks and rewards of ownership of an asset are classified as
finance leases held by the customer. Lease receivables are recognised at an amount equal to the net investment in the
lease which represents the gross investment discounted at the implicit interest rate. Lease payments received are
accounted for as a repayment of principal and receipt of income. Interest income is calculated on the principal balance
outstanding and is brought to account to produce a constant rate of return over the lease term.
Leases in which the group does not transfer substantially all the risks and rewards incidental to ownership of an asset are
classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is
included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating
and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term
on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.
81
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ANNUAL REPORT 2021
85
SECTION TEN • FINANCIAL REPORT
86
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Note 2. Significant accounting policies (continued)
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in
the period in which they are incurred.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair
value of the share-based compensation benefit as at the date of modification.
Provisions
Provisions are recognised when the group has a present (legal or constructive) obligation as a result of a past event, it is
probable the group 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 the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value
of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the
provision resulting from the passage of time is recognised as a finance cost.
Reward redemption
The group invites its internet panel members to complete surveys in exchange for a cash or points-based incentive. These
amounts are not paid until a predetermined target value has accrued on a members account. An assessment of incentives
likely to be paid (present obligation) is made taking into account past behaviour and activity. This is recognised as an
expense in the period in which the service is provided.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
Other long-term employee benefits
The liability for employee benefits not expected to be settled wholly within 12 months of the reporting date are 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 high quality
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Share-based payments
Equity-settled share-based compensation benefits are provided to employees. Equity-settled transactions are awards of
shares, or options over shares, that are provided to employees in exchange for the rendering of services.
The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do
not determine whether the group receives the services that entitle the employees to receive payment. No account is taken
of any other vesting conditions.
The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already
recognised in previous periods.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If the non-vesting condition is within the control of the group or employee, the failure to satisfy the condition is treated as a
cancellation. If the condition is not within the control of the group or employee and is not satisfied during the vesting period,
any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, they are treated as if they had vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and
new award are treated as if they were a modification.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the
fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the
principal market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its
highest and best use.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and
transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair
value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either
not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge
and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an
analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison,
where applicable, with external sources of data.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
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 group assesses the financial assets acquired and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic conditions, the group's operating or
accounting policies and other pertinent conditions in existence at the acquisition-date.
Where the business combination is achieved in stages, the group 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.
83
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ANNUAL REPORT 2021
87
SECTION TEN • FINANCIAL REPORT
88
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Note 3. Critical accounting judgements, estimates and assumptions
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent
changes in the fair value of the 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.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Pureprofile Ltd, 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 financial 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.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Rounding of amounts
The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191,
issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this Report have
been rounded to the nearest dollar.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the group for the annual reporting period ended 30 June 2021. The group has
not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates
and assumptions on historical experience and on other various factors, including expectations of future events,
management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will
seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may
have, on the group based on known information. This consideration extends to the nature of the products and services
offered, customers, supply chain, staffing and geographic regions in which the group operates. Other than as addressed in
specific notes, there does not currently appear to be either any significant impact upon the financial statements or any
significant uncertainties with respect to events or conditions which may impact the group unfavourably as at the reporting
date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Share-based payment transactions
The group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-
Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting
estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts
of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the
lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected
credit loss rate for each group. These assumptions include recent sales experience, historical collection rates, the impact
of the Coronavirus (COVID-19) pandemic and forward-looking information that is available. The allowance for expected
credit losses, as disclosed in note 10, is calculated based on the information available at the time of preparation. The
actual credit losses in future years may be higher or lower.
Capitalised software development costs
Distinguishing the research and development phases of a new customised software project and determining whether the
recognition requirements for the capitalisation of development costs are met requires judgement. After capitalisation,
management monitors whether the recognition requirement continue to be met and whether there are any indicators that
capitalised costs may be impaired.
Estimation of useful lives of assets
The group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant
and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical
innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less
than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be
written off or written down.
Goodwill and other indefinite life intangible assets
The group tests annually, or more frequently if events or changes in circumstances indicate impairment, whether goodwill
and other indefinite life intangible assets have suffered any impairment, in accordance with the accounting policy stated in
note 2. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations.
These calculations require the use of assumptions, including estimated discount rates based on the current cost of capital
and growth rates of the estimated future cash flows.
Impairment of non-financial assets other than indefinite life intangible assets
The group assesses impairment of non-financial assets other than indefinite life intangible assets at each reporting date by
evaluating conditions specific to the group and to the particular asset that may lead to impairment. If an impairment trigger
exists, the recoverable amount of the asset is determined.
85
86
ANNUAL REPORT 2021
89
SECTION TEN • FINANCIAL REPORT
90
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Note 4. Operating segments (continued)
Income tax
The group is subject to income taxes in the jurisdictions in which it operates. Significant judgement and estimates are
required in recognising and measuring current and deferred tax amounts. For any uncertain tax treatment adopted relating
to transactions or events, the group recognises and measures tax related amounts having regard to both the probability
that such amounts may be challenged by a tax authority and the expected resolution of such uncertainties. In such
circumstances, tax balances are determined based on either most-likely amount or expected-value probability based
outcomes. Where final tax outcomes vary from what is estimated, such differences will impact the current and deferred tax
provisions recognised in the financial statements.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the group considers it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement
is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the
underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods
to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical
incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease
commencement date. Factors considered may include the importance of the asset to the group's operations; comparison of
terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold
improvements; and the costs and disruption to replace the asset. The group reassesses whether it is reasonably certain to
exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in
circumstances.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to
discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such
a rate is based on what the group estimates it would have to pay a third party to borrow the funds necessary to obtain an
asset of a similar value to the right-of-use asset, with similar terms, security and economic environment.
Reward redemption provision
In determining the level of provision required for reward redemptions the group has made judgements in respect of the
expected outflows necessary to settle the redemptions. The provision represents the maximum amount that the group
estimates is likely to be claimed by panel members and is based on estimates made from historical data and likely
redemption patterns. Balances accrued by panel members that have been inactive (i.e. not completed any transaction) for
more than one year are written back to profit or loss.
Note 4. Operating segments
Identification of reportable operating segments
The Group is organised into three operating segments:
● Data & Insights;
● Pure.amplify Media AU (formerly Media); and
● Pure.amplify Media UK (formerly Performance)
These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are
identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of
resources. There is no aggregation of operating segments.
Other segments represent the corporate headquarters of the group.
The CODM reviews adjusted EBITDA (earnings before interest, tax, depreciation and amortisation, adjusted for non-cash
and significant items). The accounting policies adopted for internal reporting to the CODM are consistent with those
adopted in the financial statements.
Types of products and services
The principal products and services are as follows:
Data & Insights
Pure.amplify Media AU
Pure.amplify Media UK
Conducting market research and accessing insights and campaigns through our proprietary
Self-service platform
Buying and selling online advertising inventory on behalf of advertisers and publishers
Generates leads for clients through its consumer database and proprietary and partner
digital assets
During financial year 2021, the media and performance operating segments were rebranded under Pure.amplify division.
The media operating segment is now known as Pure.amplify Media AU and the performance operating segment is now
known as Pure.amplify Media UK.
Major customers
During the years ended 30 June 2021 and 30 June 2020 no single customer contributed more than 10% to the group's
external revenue.
Operating segment information (continuing and discontinued operations)
Consolidated - 2021
Revenue
Sales to external customers
Interest
Total revenue
EBITDA
Depreciation and amortisation
Gain on loan forgiveness
Share-based payment expense
Restructuring, acquisition and capital raising
costs
Loss on disposal of intangible assets
Interest
Interest expense on leases
Finance costs
Profit/(loss) before income tax expense
Income tax expense
Profit after income tax expense
Data &
Insights
$
Pure.amplify
Media AU
$
Pure.amplify
Media UK
$
Other
segments
$
Total
$
25,651,046
-
25,651,046
3,253,125
-
3,253,125
1,097,867
-
1,097,867
-
815
815
30,002,038
815
30,002,853
8,951,635
(2,950,357)
-
-
-
(164,906)
-
-
-
5,836,372
225,639
-
-
-
-
-
-
-
-
225,639
(66,589)
-
-
-
-
-
-
-
-
(66,589)
(5,968,996)
(797,485)
8,416,780
(1,141,608)
(848,202)
(94,000)
815
(204,227)
(2,504,246)
(3,141,169)
3,141,689
(3,747,842)
8,416,780
(1,141,608)
(848,202)
(258,906)
815
(204,227)
(2,504,246)
2,854,253
(43,097)
2,811,156
87
88
ANNUAL REPORT 2021
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 6. Other income
Net foreign exchange gain
Net gain on disposal of intangible assets, property, plant and equipment
Government grants (COVID-19)
Rental income
Other income
Other income
92
Consolidated
2021
$
2020
$
-
8,841
364,500
468,997
1,116
11,545
-
348,000
516,049
23,649
843,454
899,243
Government grants (COVID-19) represents grants received from the Government comprising of JobKeeper support
payments. During the Coronavirus (COVID-19) pandemic, the group has received JobKeeper support payments from the
Australian Government which are passed on to eligible employees. These have been recognised as government grants in
the financial statements and recorded as other income over the periods in which the related employee benefits are
recognised as an expense. The group is eligible for JobKeeper support from the government on the condition that
employee benefits continue to be paid.
91
SECTION TEN • FINANCIAL REPORT
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 4. Operating segments (continued)
Consolidated - 2020
Revenue
Sales to external customers
Interest
Total revenue
EBITDA
Depreciation and amortisation
Impairment of intangible assets
Loss on disposal of intangible assets
Interest
Interest expense on leases
Finance costs
Profit/(loss) before income tax expense
Income tax expense
Loss after income tax expense
Data &
Insights
$
Pure.amplify
Media AU
$
Pure.amplify
Media UK
$
Other
segments
$
Total
$
18,866,160
-
18,866,160
3,471,696
-
3,471,696
1,848,866
-
1,848,866
-
105
105
24,186,722
105
24,186,827
6,176,341
(3,104,740)
-
(409,068)
-
-
-
2,662,533
491,461
(159,576)
(2,107,127)
(215,959)
-
-
-
(1,991,201)
245,836
-
-
-
-
-
-
245,836
(5,512,486)
(1,086,022)
-
-
105
(258,152)
(3,872,021)
(10,728,576)
1,401,152
(4,350,338)
(2,107,127)
(625,027)
105
(258,152)
(3,872,021)
(9,811,408)
(18,073)
(9,829,481)
All assets and liabilities, including taxes are not allocated to the operating segments as they are managed on an overall
group basis.
Revenue by geographical area (continuing and discontinued operations)
The group has operations in 7 countries working with clients based in 3 (2020: 3) regions. The sales revenue based on
each client region is as follows:
Sales to external customers
Australasia
Europe
United States
Note 5. Revenue
Data & Insights
Pure.amplify Media AU
Pure.amplify Media UK
Revenue
Consolidated
2021
$
2020
$
21,318,089
6,359,052
2,324,897
16,901,665
4,787,349
2,497,708
30,002,038
24,186,722
Consolidated
2021
$
2020
$
25,651,046
3,253,125
1,097,867
18,866,160
3,471,696
1,848,866
30,002,038
24,186,722
Disaggregation of revenue
Refer to note 4 'Operating segments' for analysis of revenue by major product line and geographical region.
During the financial years ended 30 June 2021 and 30 June 2020, all revenue was recognised based on services
transferred over time.
89
90
ANNUAL REPORT 2021
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SECTION TEN • FINANCIAL REPORT
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Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 7. Expenses
Profit/(loss) before income tax from continuing operations includes the following specific
expenses:
Depreciation
Right-of-use assets
Office and computer equipment
Total depreciation
Amortisation
Software
Membership base
Total amortisation
Total depreciation and amortisation
Impairment
Goodwill
Finance costs
Interest and finance charges paid/payable on borrowings
Interest and finance charges paid/payable on lease liabilities
Finance costs expensed
Leases
Short-term lease payments
COVID-19 related rent concessions
Low-value assets lease payments
Superannuation expense
Defined contribution superannuation expense
Employee benefits expense excluding superannuation
Employee benefits expense excluding superannuation
Consolidated
2021
$
2020
$
711,103
86,382
906,059
114,118
797,485
1,020,177
2,572,181
378,176
2,951,985
378,176
2,950,357
3,330,161
3,747,842
4,350,338
-
2,107,127
2,504,246
204,227
3,872,021
258,152
2,708,473
4,130,173
-
(22,916)
3,970
254,197
(34,824)
4,717
(18,946)
224,090
680,932
645,736
9,658,712
8,349,623
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 8. Income tax expense
Income tax expense
Current tax
Adjustment recognised for prior periods
Aggregate income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit/(loss) before income tax expense from continuing operations
Loss before income tax expense from discontinued operations
Tax at the statutory tax rate of 30%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Entertainment expenses
Share-based payments
Capital gain from loan forgiveness
Thin capitalisation - deduction denial amount
Intercompany loan write-off disallowed
Disposal of intangible assets
Sundry items
Adjustment recognised for prior periods
Current year tax losses not recognised
Prior year tax losses not recognised now recouped
Current year temporary differences not recognised
Difference in overseas tax rates
Income tax expense
Consolidated
2021
$
2020
$
66,929
(23,832)
99,035
(80,962)
43,097
18,073
2,854,253
-
(9,640,408)
(171,000)
2,854,253
(9,811,408)
856,276
(2,943,422)
12,682
342,482
(3,959,962)
591,038
1,434,928
77,672
2,347
11,615
-
-
834,007
-
-
632,759
(642,537)
(23,832)
450,232
(12,211)
283,295
(11,850)
(1,465,041)
(80,962)
1,272,366
-
303,018
(11,308)
43,097
18,073
Consolidated
2021
$
2020
$
Tax losses not recognised
Potential unused tax benefit for which no deferred tax asset has been recognised
4,820,760
5,469,681
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax
losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test
is passed.
91
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ANNUAL REPORT 2021
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SECTION TEN • FINANCIAL REPORT
96
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 9. Current assets - cash and cash equivalents
Cash at bank
Cash on deposit*
Consolidated
2021
$
2020
$
3,612,716
8,959
1,758,741
9,660
3,621,675
1,768,401
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 10. Current assets - trade and other receivables (continued)
Movements in the allowance for expected credit losses are as follows:
Opening balance
Additional provisions recognised
Receivables written off during the year as uncollectable
*
Cash on deposit of $8,959 (2020: $9,660) is a restricted cash balance which is held and maintained as security over
the group's leased properties.
Closing balance
Note 10. Current assets - trade and other receivables
Note 11. Current assets - contract assets
Trade receivables
Less: Allowance for expected credit losses
Other receivables
Consolidated
2021
$
2020
$
5,700,476
(64,646)
5,635,830
3,765,943
(94,422)
3,671,521
64,998
46,174
5,700,828
3,717,695
Allowance for expected credit losses
The group has recognised a loss of $31,576 (2020: $57,355) in profit or loss in respect of impairment of receivables for the
year ended 30 June 2021.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Consolidated
Not overdue
0 to 3 months overdue
3 to 6 months overdue
Over 6 months overdue
Expected credit loss rate
2021
%
2020
%
Carrying amount
2020
$
2021
$
Allowance for expected
credit losses
2021
$
2020
$
-
0.0081%
35.3873%
53.7664%
0.0331%
0.0323%
23.3055%
65.6366%
4,774,602
847,180
68,994
74,698
2,720,076
923,775
40,678
127,588
-
69
24,415
40,162
900
298
9,480
83,744
5,765,474
3,812,117
64,646
94,422
Contract assets
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and previous financial year are set out
below:
Opening balance
Additions
Cumulative catch-up adjustments
Transfer to trade receivables
Disposals/write off of assets
Closing balance
Consolidated
2021
$
2020
$
402,593
690,298
5,826
(409,634)
-
412,903
403,808
(1,236)
(412,331)
(551)
689,083
402,593
Allowance for expected credit losses
The allowance for expected credit losses on contract assets for the year ended 30 June 2021 is $nil (2020: $nil).
Note 12. Current assets - other
The group has increased its monitoring of debt recovery as there is an increased probability of customers delaying
payment or being unable to pay, due to the Coronavirus (COVID-19) pandemic. As a result, the calculation of expected
credit losses has been revised as at 30 June 2021 and rates have increased in each category up to 6 months overdue.
Prepayments
Note 13. Non-current assets - property, plant and equipment
Office and computer equipment - at cost
Less: Accumulated depreciation
93
94
Consolidated
2021
$
2020
$
94,422
31,576
(61,352)
266,091
57,355
(229,024)
64,646
94,422
Consolidated
2021
$
2020
$
689,083
402,593
Consolidated
2021
$
2020
$
1,056,642
797,253
Consolidated
2021
$
2020
$
784,294
(636,683)
737,841
(550,301)
147,611
187,540
ANNUAL REPORT 2021
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SECTION TEN • FINANCIAL REPORT
98
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 13. Non-current assets - property, plant and equipment (continued)
Note 15. Non-current assets - intangibles
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2019
Additions
Disposals
Exchange differences
Depreciation expense
Balance at 30 June 2020
Additions
Disposals
Exchange differences
Depreciation expense
Balance at 30 June 2021
Note 14. Non-current assets - right-of-use assets
Right-of-use assets
Less: Accumulated depreciation
Office and
computer
equipment
$
222,226
88,380
(4,213)
(4,735)
(114,118)
187,540
43,736
(154)
2,871
(86,382)
147,611
Consolidated
2021
$
2020
$
2,848,098
(902,614)
2,931,316
(557,076)
1,945,484
2,374,240
The group leases buildings under agreements of between 1 to 5 years with, in some cases, options to extend. The leases
have various escalation clauses. On renewal, the terms of the leases are renegotiated.
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2019
Additions
Exchange differences
Depreciation expense
Balance at 30 June 2020
Additions
Exchange differences
Depreciation expense
Balance at 30 June 2021
95
Right-of-use
assets
$
2,937,297
432,196
(89,194)
(906,059)
2,374,240
233,413
48,934
(711,103)
1,945,484
Goodwill - at cost
Less: Impairment
Software - at cost
Less: Accumulated amortisation
Less: Impairment
Customer contracts and partner network arrangement - at cost
Less: Accumulated amortisation
Less: Impairment
Membership base - at cost
Less: Accumulated amortisation
Brand names - at cost
Consolidated
2021
$
2020
$
15,503,285
(15,503,285)
-
15,503,285
(15,503,285)
-
26,819,404
(16,873,956)
(4,598,724)
5,346,724
24,972,053
(14,301,775)
(4,598,724)
6,071,554
3,622,000
(1,168,990)
(2,453,010)
-
3,622,000
(1,168,990)
(2,453,010)
-
2,694,410
(1,803,593)
890,817
2,694,410
(1,425,417)
1,268,993
-
94,000
6,237,541
7,434,547
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2019
Additions
Disposals
Impairment of assets
Amortisation expense
Balance at 30 June 2020
Additions
Disposals
Amortisation expense
Balance at 30 June 2021
Goodwill
$
Software
$
Membership
base
$
Brand
names
$
Total
$
7,273,045
2,375,521
(625,027)
-
(2,951,985)
6,071,554
2,012,257
(164,906)
(2,572,181)
1,647,169
-
-
-
(378,176)
1,268,993
-
-
(378,176)
94,000
-
-
-
-
11,121,341
2,375,521
(625,027)
(2,107,127)
(3,330,161)
94,000
-
(94,000)
-
7,434,547
2,012,257
(258,906)
(2,950,357)
5,346,724
890,817
-
6,237,541
2,107,127
-
-
(2,107,127)
-
-
-
-
-
-
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ANNUAL REPORT 2021
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SECTION TEN • FINANCIAL REPORT
100
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 18. Current liabilities - contract liabilities (continued)
Consolidated
2021
$
2020
$
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and previous financial year are set out
below:
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 16. Non-current assets - deferred tax
Deferred tax asset comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Allowance for expected credit losses
Prepayments
Capitalised expenditure
Brand names
Employee benefits
Accrued expenses and other payables
Provision for reward redemptions
Other assets
Business related capital expenditure
Research and development expenditure
Unrealised foreign exchange (gain)/loss
Deferred tax asset
Movements:
Opening balance
Credited to profit or loss (note 8)
Closing balance
8,656
(1,687)
(347,054)
(28,200)
159,734
(95,835)
31,885
-
298,940
-
(26,439)
8,606
(1,186)
(565,035)
(28,200)
206,513
62,940
419,148
(694,188)
152,413
410,224
28,765
-
-
-
-
-
-
-
-
The group has unused tax losses of $4,820,760 (2020: $5,469,681) for which no tax benefit has been recognised. Based
on management's assessment, taking into consideration the group's future forecasts, deferred tax assets on tax losses
have only been recognised to the extent that it is probable that there will be taxable future income from which to offset the
tax losses.
Note 17. Current liabilities - trade and other payables
Trade payables
Accrued expenses
Other payables
Note 18. Current liabilities - contract liabilities
Contract liabilities
Consolidated
2021
$
2020
$
2,424,285
3,944,087
803,680
2,281,193
2,352,800
1,322,457
7,172,052
5,956,450
Consolidated
2021
$
2020
$
733,321
377,687
Opening balance
Payments received in advance
Transfer to revenue
Disposals
Foreign exchange differences
Closing balance
Consolidated
2021
$
2020
$
377,687
1,170,984
(816,747)
(1,339)
2,736
331,421
668,431
(549,855)
(72,113)
(197)
733,321
377,687
Unsatisfied performance obligations
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end of
the reporting period was $733,321 as at 30 June 2021 ($377,687 as at 30 June 2020) and is expected to be recognised as
revenue in future periods as follows:
Within 6 months
6 to 12 months
12 to 18 months
Note 19. Current liabilities - borrowings
Loans
Interest accrued on loans
Refer to note 22 for further information.
Note 20. Current liabilities - lease liabilities
Lease liability
Refer to note 28 for further information on financial instruments.
Consolidated
2021
$
2020
$
666,372
66,949
-
296,487
74,700
6,500
733,321
377,687
Consolidated
2021
$
2020
$
-
-
20,000,000
4,392,384
-
24,392,384
Consolidated
2021
$
2020
$
362,007
489,534
97
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ANNUAL REPORT 2021
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SECTION TEN • FINANCIAL REPORT
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 21. Current liabilities - provisions
Employee benefits
Reward redemption
Consolidated
2021
$
2020
$
562,760
1,890,498
410,515
1,605,065
2,453,258
2,015,580
Reward redemption
This provision represents the estimated costs of rewards awarded to customers in respect of services sold. The provision
is estimated based on historical reward redemption information, sales levels and any recent trends that may suggest future
reward redemptions could differ from historical amounts.
Refer to note 24 for further information.
Note 22. Non-current liabilities - borrowings
Consolidated
2021
$
2020
$
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 22. Non-current liabilities - borrowings (continued)
Financing arrangements
Unrestricted access was available at the reporting date to the following lines of credit:
Total facilities
Bank loans
Used at the reporting date
Bank loans
Unused at the reporting date
Bank loans
Note 23. Non-current liabilities - lease liabilities
Loans
3,000,000
-
Lease liability
Refer to note 28 for further information on financial instruments.
On 19 October 2020, the group and its existing lender, Lucerne, entered into a new agreement in respect of its debt facility
('new facility'). Under the terms of the new facility, $7,300,000 of borrowings (balance as at 30 September 2020) under the
previous facility were to be forgiven on the basis that funds from the group's capital raise were used to repay the remaining
debt under the previous facility. Following completion of the capital raise, the group repaid $9,896,878 of the loan and in
accordance with the terms of the new facility and the underwriting letter agreement, a shortfall amount of $5,407,292 has
been converted into shares (note 25). The remaining balance of $8,416,780, which included accrued interest, was forgiven.
The performance rights that were previously issued to Lucerne under the previous facility have been cancelled.
The new facility is $3,000,000, which is effective from 29 December 2020. Interest is fixed and payable at 8.5% per annum
and is payable quarterly on the last day of the quarter. The facility expires on 29 December 2023. The new facility does not
contain business performance covenants. The loan is secured over the assets of the group. As at 30 June 2021, the new
facility has been fully drawn.
Total secured liabilities
The total secured liabilities (current and non-current) are as follows:
Loans
Consolidated
2021
$
2020
$
-
20,000,000
Refer to note 28 for maturity analysis of lease liabilities.
Note 24. Non-current liabilities - provisions
Employee benefits
Lease make good
Lease make good
The provision represents the present value of the estimated costs to make good the premises leased by the group at the
end of the respective lease terms.
Movements in provisions
Movements in each class of provision (current and non-current) during the current financial year, other than employee
benefits, are set out below:
Consolidated - 2021
Carrying amount at the start of the year
Additional provisions recognised
Amounts used
Payments
Foreign exchange differences
Unused amounts reversed
Carrying amount at the end of the year
Reward
redemption
$
Lease make
good
$
1,605,065
5,916,649
(4,336,707)
(261,023)
(706)
(1,032,780)
60,943
11,000
-
-
1,721
-
1,890,498
73,664
99
100
102
Consolidated
2021
$
2020
$
3,000,000
20,000,000
3,000,000
20,000,000
-
-
Consolidated
2021
$
2020
$
1,750,327
2,024,027
Consolidated
2021
$
2020
$
39,195
73,664
64,015
60,943
112,859
124,958
ANNUAL REPORT 2021
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SECTION TEN • FINANCIAL REPORT
104
Consolidated
2021
$
2020
$
(216,282)
1,698,588
(211,582)
449,241
1,482,306
237,659
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 25. Equity - issued capital
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 26. Equity - reserves
Ordinary shares - fully paid
1,057,734,591
117,526,063
59,892,781
41,461,502
Foreign currency reserve
Share-based payments reserve
Consolidated
2021
Shares
2020
Shares
2021
$
2020
$
Movements in ordinary share capital
Details
Balance
Balance
Issue of shares
Issue of shares
Issue of shares*
Less: share issue costs net of taxation
Date
1 July 2019
30 June 2020
24 November 2020
1 December 2020
8 December 2020
Balance
30 June 2021
1,057,734,591
Shares
Issue price
$
117,526,063
117,526,063
353,600,944
186,500,000
400,107,584
-
$0.020
$0.020
$0.020
$0.000
41,461,502
41,461,502
7,072,019
3,730,000
8,002,152
(372,892)
59,892,781
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign
operations.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
*
Includes shares issued on conversion of Lucerne loan of $5,407,292 (refer to note 22 for further information).
Ordinary shares
Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders
should the company be wound up in proportions that consider both the number of shares held and the extent to which
those shares are paid up. The fully paid ordinary shares have no par value and the company does not have a limited
amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The group's objectives when managing capital is to safeguard its ability to continue as a going concern so that it can
provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce
the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
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 group would look to raise capital when an opportunity to invest in a business or company was seen as value adding
relative to the current company's share price at the time of the investment. The group is not actively pursuing additional
investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.
The group is subject to certain financing arrangements covenants and meeting these is given priority in all capital risk
management decisions. There have been no events of default on the financing arrangements during the financial year.
The capital risk management policy remains unchanged from the previous period.
Consolidated
Balance at 1 July 2019
Foreign currency translation
Balance at 30 June 2020
Foreign currency translation
Share-based payments
Share options issued for underwriting services*
Share options issued as referral fee for underwriting services
Consultancy fee paid as share option
Balance at 30 June 2021
Foreign
currency
$
Share-based
payments
$
Total
$
(178,682)
(32,900)
(211,582)
(4,700)
-
-
-
-
449,241
-
270,559
(32,900)
449,241
-
1,141,608
61,248
37,741
8,750
237,659
(4,700)
1,141,608
61,248
37,741
8,750
(216,282)
1,698,588
1,482,306
*
On 8 December 2020, 15,000,000 unlisted options were granted to Peloton Capital Pty Ltd as consideration for
underwriting services provided to the company. The options vested on the date they were granted. Each option has
an exercise price of $0.03 and a contractual life of two years.
Note 27. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 28. Financial instruments
Financial risk management objectives
The group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and
interest rate risk), credit risk and liquidity risk. The group's overall risk management program focuses on the unpredictability
of financial markets and seeks to minimise potential adverse effects on the financial performance of the group. These
methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks and ageing analysis
for credit risk.
101
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ANNUAL REPORT 2021
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SECTION TEN • FINANCIAL REPORT
106
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 28. Financial instruments (continued)
Market risk
Foreign currency risk
The group operates internationally and is exposed to foreign currency risk from various currency exposures, primarily with
respect to the US dollar and GB Pound.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
The carrying amount of the group's foreign currency denominated financial assets and financial liabilities at the reporting
date were not significant.
Price risk
The group is not exposed to any significant price risk.
Interest rate risk
The group's main interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the group
to interest rate risk. Borrowings issued at fixed rates expose the group to fair value risk.
An analysis by remaining contractual maturities is shown in the liquidity section below.
As at the 30 June 2021 and 30 June 2020, the group's borrowings were subject to a fixed interest rate, hence the group
was not susceptible to interest rate risk arising from fluctuation in the variable interest rate.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
group. The group has a strict code of credit, including obtaining agency credit information, confirming references and
setting appropriate credit limits. The group obtains guarantees where appropriate to mitigate credit risk. The maximum
exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for
impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The
group does not have any material credit risk exposure to any single debtor or group of debtors and does not hold any
collateral.
The group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables
through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered
representative across all customers of the group based on recent sales experience, historical collection rates and forward-
looking information that is available. As disclosed in note 10, due to the Coronavirus (COVID-19) pandemic, the calculation
of expected credit losses has been revised as at 30 June 2021 and rates have increased in each category up to 6 months
overdue.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Liquidity risk
Vigilant liquidity risk management requires the group to maintain sufficient liquid assets (mainly cash and cash equivalents)
and available borrowing facilities to be able to pay debts as and when they become due and payable.
The group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously
monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 28. Financial instruments (continued)
Remaining contractual maturities
The following tables detail the group's remaining contractual maturity for its financial instrument liabilities. The tables have
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 2021
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Reward redemption provision
Interest-bearing - fixed rate
Loans
Lease liability
Total non-derivatives
Consolidated - 2020
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Reward redemption provision
Interest-bearing - fixed rate
Loans
Lease liability
Total non-derivatives
Weighted
average
interest rate 1 year or less
%
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
Remaining
contractual
maturities
$
-
-
-
2,424,285
803,680
1,890,498
-
-
-
-
-
-
-
-
-
2,424,285
803,680
1,890,498
8.50%
8.59%
-
362,007
5,480,470
-
85,794
85,794
3,000,000
1,162,972
4,162,972
-
501,560
501,560
3,000,000
2,112,333
10,230,796
Weighted
average
interest rate 1 year or less
%
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
Remaining
contractual
maturities
$
-
-
-
2,281,193
1,322,457
1,605,065
-
-
-
-
-
-
-
-
-
2,281,193
1,322,457
1,605,065
20.00%
8.59%
24,392,384
489,534
30,090,633
-
319,959
319,959
-
787,525
787,525
-
916,545
916,545
24,392,384
2,513,563
32,114,662
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Note 29. Fair value measurement
The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair
values due to their short-term nature.
The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market
interest rate that is available for similar financial liabilities.
103
104
ANNUAL REPORT 2021
107
SECTION TEN • FINANCIAL REPORT
108
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 30. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the group is set out
below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Note 31. Remuneration of auditors
Consolidated
2021
$
2020
$
757,294
58,636
922,017
653,009
52,601
-
1,737,947
705,610
During the financial year the following fees were paid or payable for services provided by Grant Thornton Australia, the
auditor of the company, and unrelated firms:
Consolidated
2021
$
2020
$
158,750
162,000
91,150
37,412
249,900
199,412
31,500
37,892
46,414
36,300
42,146
37,500
82,714
79,646
114,214
117,538
Audit services - Grant Thornton Australia
Audit or review of the financial statements
Other services - Grant Thornton Australia
Taxation services
Audit services - other firms
Audit or review of the financial statements
Other services - other firms
Taxation services
Assistance in financial due diligence
Note 32. Contingent liabilities
The group had no contingent liabilities as at 30 June 2021 (2020: none).
Note 33. Related party transactions
Parent entity
Pureprofile Ltd is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 35.
Key management personnel
Disclosures relating to key management personnel are set out in note 30.
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 33. Related party transactions (continued)
Transactions with related parties
The following transactions occurred with related parties:
Payment for goods and services:
Payment for expenses reimbursed to key management personnel
Consolidated
2021
$
2020
$
7,934
2,612
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 34. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Foreign currency reserve
Share-based payments reserve
Accumulated losses
Total equity/(deficiency)
Parent
2021
$
2020
$
(3,632,643)
(79,331)
(3,632,643)
(79,331)
Parent
2021
$
2020
$
609,839
399,839
11,175,375
12,321,126
1,084,445
1,275,924
4,084,445
21,275,924
59,931,480
(2,435)
1,660,847
(54,498,962)
41,462,460
(180)
449,241
(50,866,319)
7,090,930
(8,954,798)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity is a party to a deed of cross guarantee (refer note 36), under which it guarantees the debts of certain of
its subsidiaries as at 30 June 2021 and 30 June 2020.
105
106
ANNUAL REPORT 2021
109
SECTION TEN • FINANCIAL REPORT
110
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 34. Parent entity information (continued)
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 36. Deed of cross guarantee (continued)
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021 and 30 June 2020.
Set out below is a consolidated statement of profit or loss and other comprehensive income and statement of financial
position of the 'Closed Group'.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 June 2020.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the group, as disclosed in note 2, except for the
following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Note 35. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 2:
Name
Pureprofile.com, Inc.
Pureprofile Australia Pty Limited
Pureprofile Global Pty Ltd
Pureprofile Media PLC**
Pureprofile UK Ltd
Pureprofile US Inc.
Pure Network Pty Ltd*
Real Research Global Pty Ltd*
Real Research Pty Ltd*
Sparc Media Pty Ltd
Funbox India Private Limited
Sparc Media sp. Z o.o.
Pureprofile NZ Ltd
*
Deregistered on 22 July 2020.
** Deregistered on 22 June 2021.
Note 36. Deed of cross guarantee
Principal place of business /
Country of incorporation
Ownership interest
2020
2021
%
%
USA
Australia
Australia
United Kingdom
United Kingdom
USA
Australia
Australia
Australia
Australia
India
Poland
New Zealand
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
-
-
-
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
The following entities are party to a deed of cross guarantee under which each company guarantees the debts of the
others:
Pureprofile Australia Pty Limited
Pureprofile Global Pty Ltd
Pure Network Pty Ltd*
Real Research Global Pty Ltd*
Real Research Pty Ltd*
Sparc Media Pty Ltd
*
Deregistered on 22 July 2020.
By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare financial
statements and directors' report under Corporations Instrument 2016/785 issued by the Australian Securities and
Investments Commission.
The above companies represent a 'Closed Group' for the purposes of the Corporations Instrument, and as there are no
other parties to the deed of cross guarantee that are controlled by Pureprofile Ltd, they also represent the 'Extended
Closed Group'.
Statement of profit or loss and other comprehensive income
Revenue
Other income
Interest revenue calculated using the effective interest method
Gain on loan forgiveness
Gain from intercompany loan forgiveness
Direct costs of revenue
Employee benefits expense
Depreciation and amortisation expense
Impairment of assets
Loss on disposal of intangible assets
Technology, engineering and licence fees
Share-based payment expense
Restructuring, acquisition and capital raising costs
Occupancy costs
Other expenses
Finance costs
Profit/(loss) before income tax expense
Income tax expense
Profit/(loss) after income tax expense
Other comprehensive income for the year, net of tax
Total comprehensive profit/(loss) for the year
Equity - accumulated losses
Accumulated losses at the beginning of the financial year
Profit/(loss) after income tax expense
Accumulated losses at the end of the financial year
2021
$
2020
$
27,679,051
492,061
107
8,416,780
4,783,094
(12,133,953)
(8,211,958)
(3,410,125)
-
(258,906)
(2,154,683)
(1,107,969)
(848,202)
(20,575)
(2,758,814)
(2,502,699)
21,410,640
418,641
41
-
-
(9,039,325)
(6,712,830)
(3,612,888)
(2,107,127)
(625,027)
(2,048,392)
-
-
(9,279)
(2,455,650)
(4,053,322)
7,963,209
-
(8,834,518)
-
7,963,209
(8,834,518)
-
-
7,963,209
(8,834,518)
2021
$
2020
$
(62,617,478)
7,963,209
(53,782,960)
(8,834,518)
(54,654,269)
(62,617,478)
107
108
ANNUAL REPORT 2021
111
SECTION TEN • FINANCIAL REPORT
112
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 36. Deed of cross guarantee (continued)
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 37. Earnings per share (continued)
Statement of financial position
Current assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Other
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangibles
Deferred tax
Investment in subsidiary
Related party receivable
Total assets
Current liabilities
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Income tax
Provisions
Related party payables
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Total liabilities
Net assets/(liabilities)
Equity
Issued capital
Reserves
Accumulated losses
Total equity/(deficiency)
Note 37. Earnings per share
Profit/(loss) per share for profit/(loss) from continuing operations
Profit/(loss) after income tax attributable to the owners of Pureprofile Ltd
2021
$
2020
$
1,864,832
5,724,903
383,892
1,000,120
8,973,747
45,962
223,396
6,237,541
-
765,465
6,504,656
13,777,020
1,083,923
3,226,853
398,025
867,761
5,576,562
43,573
420,296
6,165,555
1,311,230
765,465
-
8,706,119
22,750,767
14,282,681
6,327,120
564,911
-
201,125
-
2,210,928
3,386,077
12,690,161
3,000,000
13,482
50,195
3,063,677
4,886,037
280,764
24,392,385
354,655
1,275,924
1,813,028
1,937,603
34,940,396
-
73,410
64,015
137,425
15,753,838
35,077,821
6,996,929
(20,795,140)
59,931,481
1,719,717
(54,654,269)
41,462,461
359,877
(62,617,478)
6,996,929
(20,795,140)
Consolidated
2021
$
2020
$
2,811,156
(9,658,481)
Weighted average number of ordinary shares used in calculating basic earnings per share
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
Rights over ordinary shares
Number
Number
660,151,961
117,526,063
1,672,283
12,990,935
-
-
Weighted average number of ordinary shares used in calculating diluted earnings per share
674,815,179
117,526,063
Basic earnings per share
Diluted earnings per share
Loss per share for loss from discontinued operations
Loss after income tax attributable to the owners of Pureprofile Ltd
Weighted average number of ordinary shares used in calculating basic earnings per share
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
Rights over ordinary shares
Cents
Cents
0.43
0.42
(8.22)
(8.22)
Consolidated
2021
$
2020
$
-
(171,000)
Number
Number
660,151,961
117,526,063
1,672,283
12,990,935
-
-
Weighted average number of ordinary shares used in calculating diluted earnings per share
674,815,179
117,526,063
Basic earnings per share
Diluted earnings per share
Profit/(loss) per share for profit/(loss)
Profit/(loss) after income tax attributable to the owners of Pureprofile Ltd
Weighted average number of ordinary shares used in calculating basic earnings per share
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
Rights over ordinary shares
Cents
Cents
-
-
(0.15)
(0.15)
Consolidated
2021
$
2020
$
2,811,156
(9,829,481)
Number
Number
660,151,961
117,526,063
1,672,283
12,990,935
-
-
Weighted average number of ordinary shares used in calculating diluted earnings per share
674,815,179
117,526,063
Basic earnings per share
Diluted earnings per share
Cents
Cents
0.43
0.42
(8.36)
(8.36)
109
110
ANNUAL REPORT 2021
113
SECTION TEN • FINANCIAL REPORT
114
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 38. Share-based payments
Share options granted during the year ended 30 June 2021
On 19 October 2020, 15,000,000 unlisted options were granted to Peloton Capital Pty Ltd as consideration for underwriting
services provided to the company. The options vest on the date they were granted. Each option has an exercise price of
$0.03 and a contractual life of two years.
On 29 January 2021, 4,930,156 unlisted options were granted to A. Edwards, the chairman of the company. The options
vest on 30 June 2021 and the contractual life of each option is five years.
On 29 January 2021, 2,000,000 unlisted options were granted to S. Klose, a director of the company. The options vest on
30 June 2021 and the contractual life of each option is five years.
On 29 January 2021, 32,867,707 unlisted options were granted to M. Filz, the chief executive officer of the company. The
options vest in three tranches: 10,955,902 options will vest on the date following the announcement of annual audited
results for financial year ('FY') 2021 (1 September 2021), 10,955,902 options will vest on the date following the
announcement of annual audited result for FY2022 (1 September 2022) and 10,955,903 options will vest on the date
following the announcement of annual audited result for FY2023 (1 September 2023). The contractual life of each option is
five years.
On 1 April 2021, 12,626,719 unlisted options were granted to M. Sheppard, a key management personnel of the company.
The options vest in three tranches: 4,208,906 options will vest on the date following the announcement of annual audited
results for FY2021 (1 September 2021), 4,208,906 options will vest on the date following the announcement of annual
audited result for FY2022 (1 September 2022) and 4,208,907 options will vest on the date following the announcement of
annual audited result for FY2023 (1 September 2023). The contractual life of each option is five years.
On 1 April 2021, 34,023,703 unlisted options were granted to executive team members. The options vest in three tranches:
11,341,234 options will vest on the date following the announcement of annual audited results for FY2021 (1 September
2021), 11,341,234 options will vest on the date following the announcement of annual audited result for FY2022 (1
September 2022) and 11,341,235 options will vest on the date following the announcement of annual audited result for
FY2023 (1 September 2023). The contractual life of each option is five years.
On 24 May 2021, 4,000,000 unlisted options were granted to eXtreme Visions as consideration for introducing Peloton
Capital Pty Ltd as partial underwriter to the company. The options vest on the date they were granted. Each option has an
exercise price of $0.03 and a contractual life of 1.5 years.
Share rights granted during the year ended 30 June 2021
On 29 January 2021, 14,000,000 share rights were granted to A. Edwards, the chairman of the company. The share rights
are exercisable at nil value. The share rights vest on 30 June 2021. The contractual life of each share right is five years.
On 29 January 2021, 1,750,000 share rights were granted to S. Klose, a director of the company. The share rights are
exercisable at nil value. The share rights vest on 30 June 2021. The contractual life of each share right is five years.
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 38. Share-based payments (continued)
On 1 April 2021, 6,250,000 performance rights were granted to M. Sheppard, a key management personnel of the
company. The performance rights are exercisable at nil value. The performance rights vest in three tranches: 3,125,000
rights will vest on the 6 month anniversary of the grant date (1 October 2021), 1,562,500 rights will vest on the 12 month
anniversary of the grant date (1 April 2022) and 1,562,500 will vest on the 24 month anniversary of the grant date (1 April
2023). The contractual life of each performance right is five years.
Share options and service rights granted prior to 30 June 2020
A long term incentive plan ('LTI') and short term incentive plan ('STI') had been established by the group, whereby the
group, at the discretion of the Board, granted options or performance rights (in the case of an LTI) or service rights (in the
case of an STI) over ordinary shares in the company to certain key management personnel and employees of the group.
The options were issued for consideration and were granted in accordance with guidelines established by the Board. The
service rights were issued for nil consideration and are granted in accordance with performance guidelines established by
the Board. All share options and service rights granted prior to 30 June 2020 expired during the year ended 30 June 2020.
Performance rights granted prior to 30 June 2020
On 12 December 2017, the company issued 2,100,000 performance rights to its finance facility provider, as part
consideration for the financing facility obtained in November 2017. 950,000 performance rights, which will convert to fully
paid-up ordinary shares upon the 60-day volume weighted average price ('VWAP') of Pureprofile shares reaching $0.40
per share; and 1,150,000 performance rights, which will convert to fully paid-up ordinary shares upon the 60-day VWAP of
Pureprofile shares reaching $0.60 per share. These performance rights expired in November 2019.
Share-based payments expense for the financial year was $1,141,608 (2020: $nil).
Share options
Set out below are summaries of options granted by the company:
2021
Grant date
Expiry date
19/10/2020
29/01/2021
29/01/2021
29/01/2021
01/04/2021
01/04/2021
24/05/2021
08/12/2022
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
08/12/2022
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
$0.030
$0.020
$0.020
$0.020
$0.020
$0.020
$0.030
-
-
-
-
-
-
-
-
15,000,000
4,930,156
2,000,000
32,867,707
12,626,719
34,023,703
4,000,000
105,448,285
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,000,000
4,930,156
2,000,000
32,867,707
12,626,719
34,023,703
4,000,000
105,448,285
Weighted average exercise price
$0.000
$0.020
$0.000
$0.000
$0.020
On 1 April 2021, 2,453,740 share rights were granted to employees. The share rights are exercisable at nil value. The
share rights vest on 1 April 2022. The contractual life of each share right is five years.
2020
On 1 April 2021, 703,942 share rights were granted to Albert Hitchcock, a board associate. The share rights are
exercisable at nil value. The share rights vest in two tranches: 351,971 rights vest on 30 June 2021 and 351,971 will vest
on 30 September 2021. The contractual life of each share right is five years.
Performance rights granted during the year ended 30 June 2021
On 29 January 2021, 9,875,000 performance rights were granted to M. Filz, the chief executive officer of the company. The
performance rights are exercisable at nil value. The performance rights vest in three tranches: 4,937,500 rights will vest on
the 6 month anniversary of the grant date (29 July 2021), 2,468,750 rights will vest on the 12 month anniversary of the
grant date (29 January 2022) and 2,468,750 rights will vest on the 24 month anniversary of the grant date (29 January
2023). The contractual life of each performance right is five years.
Grant date
Expiry date
Exercise
price
29/05/2015
29/05/2015
29/05/2020
29/05/2020
$0.500
$0.600
Balance at
the start of
the year
2,009,000
1,200,000
3,209,000
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
-
-
(2,009,000)
(1,200,000)
(3,209,000)
-
-
-
Weighted average exercise price
$0.540
$0.000
$0.000
$0.540
$0.000
111
112
ANNUAL REPORT 2021
115
SECTION TEN • FINANCIAL REPORT
116
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 38. Share-based payments (continued)
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 38. Share-based payments (continued)
Set out below are the options that have vested and are exercisable at the end of the financial year:
2020
Grant date
Expiry date
19/10/2020
29/01/2021
29/01/2021
24/05/2021
08/12/2022
01/04/2026
01/04/2026
08/12/2022
2021
Number
2020
Number
15,000,000
4,930,156
2,000,000
4,000,000
25,930,156
-
-
-
-
-
The weighted average share price during the financial year was $0.02 (2020: $0.01).
The weighted average remaining contractual life of options outstanding at the end of the financial year was 4.2 years
(2020: nil).
Share rights
Set out below are summaries of share rights granted by the company:
2021
Grant date
Expiry date
29/01/2021
29/01/2021
01/04/2021
01/04/2021
01/04/2026
01/04/2026
01/04/2026
01/04/2026
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
$0.000
$0.000
$0.000
$0.000
-
-
-
-
-
14,000,000
1,750,000
2,453,740
703,942
18,907,682
-
-
-
-
-
-
-
-
-
-
14,000,000
1,750,000
2,453,740
703,942
18,907,682
Set out below are the share rights exercisable at the end of the financial year:
Grant date
Expiry date
29/01/2021
29/01/2021
01/04/2021
01/04/2026
01/04/2026
01/04/2026
2021
Number
2020
Number
14,000,000
1,750,000
351,971
16,101,971
-
-
-
-
The weighted average remaining contractual life of share rights outstanding at the end of the financial year was 4.8 years.
Performance rights
Set out below are summaries of performance rights granted under the plan:
2021
Grant date
Expiry date
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
29/01/2021
01/04/2021
01/04/2026
01/04/2026
$0.000
$0.000
-
-
-
9,875,000
6,250,000
16,125,000
-
-
-
-
-
-
9,875,000
6,250,000
16,125,000
Grant date
Expiry date
Exercise
price
12/12/2017
02/11/2019
$0.000
Balance at
the start of
the year
2,100,000
2,100,000
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
(2,100,000)
(2,100,000)
-
-
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was 4.8
years (2020: nil).
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
19/10/2020
29/01/2021
29/01/2021
29/01/2021
01/04/2021
01/04/2021
24/05/2021
08/12/2022
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
08/12/2022
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value
at grant date
$0.020
$0.024
$0.024
$0.024
$0.025
$0.025
$0.029
$0.030
$0.020
$0.020
$0.020
$0.020
$0.020
$0.030
60.00%
75.00%
75.00%
75.00%
75.00%
75.00%
70.00%
-
-
-
-
-
-
-
0.14%
0.14%
0.14%
0.14%
0.14%
0.14%
0.14%
$0.0041
$0.0153
$0.0153
$0.0153
$0.0160
$0.0160
$0.0094
For the share rights granted during the current financial year, the valuation model inputs used to determine the fair value at
the grant date, are as follows:
Grant date
29/01/2021
29/01/2021
01/04/2021
01/04/2021
Expiry date
01/04/2026
01/04/2026
01/04/2026
01/04/2026
Share price
at grant date
Exercise
price
Fair value
at grant date
$0.024
$0.024
$0.025
$0.025
$0.000
$0.000
$0.000
$0.000
$0.0240
$0.0240
$0.0250
$0.0250
For the performance rights granted during the current financial year, the valuation model inputs used to determine the fair
value at the grant date, are as follows:
Grant date
29/01/2021
01/04/2021
Expiry date
01/04/2026
01/04/2026
Share price
at grant date
Exercise
price
Fair value
at grant date
$0.024
$0.025
$0.000
$0.000
$0.0240
$0.0250
113
114
ANNUAL REPORT 2021
117
SECTION TEN • FINANCIAL REPORT
118
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 39. Cash flow information
Reconciliation of profit/(loss) after income tax to net cash from operating activities
Pureprofile Ltd
Notes to the financial statements
30 June 2021
Note 39. Cash flow information (continued)
Changes in liabilities arising from financing activities
Profit/(loss) after income tax expense for the year
2,811,156
(9,829,481)
Consolidated
Consolidated
2021
$
2020
$
Adjustments for:
Depreciation and amortisation
Impairment of intangibles
Share-based payments
Consultancy fee paid in share option
Net loss on disposal of non-current assets
Foreign currency differences
Gain from loan forgiveness
Restructuring, acquisition and capital raising costs
Capitalised finance cost
Interest on lease liabilities
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in contract assets
Increase in prepayments
Increase/(decrease) in trade and other payables
Increase in contract liabilities
Increase/(decrease) in provision for income tax
Decrease in employee benefits
Increase in other provisions
Net cash from operating activities
Non-cash investing and financing activities
Additions to the right-of-use assets
Shares issued on conversion of loan
3,747,842
-
1,141,608
8,750
250,065
-
(8,416,780)
794,142
2,328,565
204,227
4,350,338
2,107,127
-
-
629,240
2,482
-
-
3,616,369
258,152
(1,983,133)
(286,490)
(259,389)
1,215,604
355,634
26,309
(24,820)
437,677
2,613,240
9,744
(108,986)
(2,524,995)
47,148
(54,471)
(59,622)
366,084
2,350,967
1,422,369
Consolidated
2021
$
2020
$
233,413
5,407,292
432,196
-
5,640,705
432,196
Balance at 1 July 2019
Change in accounting policy
Net cash from/(used in) financing activities
Other changes
Balance at 30 June 2020
Net cash from/(used in) financing activities
Loans received
Acquisition of leases
Loan forgiveness
Other changes
Balance at 30 June 2021
Note 40. Events after the reporting period
Trade
receivables
financing
facility
$
Loans
$
Lease
liabilities
$
Total
$
14,400,000
-
5,600,000
-
2,069,339
-
(2,069,339)
-
-
3,242,181
(126,371)
(602,249)
16,469,339
3,242,181
3,404,290
(602,249)
20,000,000
(9,896,878)
3,000,000
-
(8,416,780)
(1,686,342)
3,000,000
-
-
-
-
-
-
-
2,513,561
(863,588)
-
233,413
-
228,948
22,513,561
(10,760,466)
3,000,000
233,413
(8,416,780)
(1,457,394)
2,112,334
5,112,334
The consequences of the Coronavirus (COVID-19) pandemic are continuing to be felt around the world, and its impact on
the group, if any, has been reflected in its published results to date. It is not possible at this time to state that the pandemic
will not subsequently impact the group's operations going forward. The group now has experience in the swift
implementation of business continuation processes should future lockdowns of the population occur, and these processes
continue to evolve to minimise any operational disruption. Management continues to monitor the situation both locally and
internationally.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect
the group's operations, the results of those operations, or the group's state of affairs in future financial years.
115
116
ANNUAL REPORT 2021
119
SECTION TEN • FINANCIAL REPORT
120
Pureprofile Ltd
Directors' declaration
30 June 2021
In the directors' opinion:
●
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the group's financial position as at 30 June
2021 and of its performance for the financial year ended on that date;
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable; and
at the date of this declaration, there are reasonable grounds to believe that the members of the Extended Closed
Group will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed
of cross guarantee described in note 36 to the financial statements.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Andrew Edwards
Non-Executive Chairman
26 August 2021
Sydney
117
ANNUAL REPORT 2021
121
SECTION TEN • FINANCIAL REPORT
122
70%
of Brits think children
should be taught
about the hazards of
gambling in school
SECTION ELEVEN
Auditor’s
Report
ANNUAL REPORT 2021 123
SECTION ELEVEN • AUDITOR'S REPORT
124
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Pureprofile Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Pureprofile Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss
and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows
for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting
policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for the year
ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
Key audit matter
How our audit addressed the key audit matter
Capitalisation of development costs, Note 2 and Note 15
During the year ended 30 June 2021, the Group capitalised
$2,012,257 of costs related to the development of its software
assets. These intangible assets are being amortised over a 4
to 5 year period.
AASB 138 Intangible Assets sets out the specific requirements
to be met in order to capitalise development costs.
We considered this to be a key audit matter given the
magnitude of amounts capitalised and the significant
judgements involved in determining which costs may be
capitalised and in determining the assets’ useful lives.
Our procedures included, amongst others:
Assessing the Group’s accounting policy in respect of
product development costs for compliance with AASB 138;
Assessing the reasonableness of management’s judgments
and estimates made in capitalising development costs;
Testing the eligibility of development projects and costs
capitalised, on a sample basis, with reference to the nature
of the project and underlying supporting documentation
including employment contracts, payroll reports, and
invoices from external suppliers;
Assessing the reasonableness of the useful lives attributed
to capitalised development costs and whether amortisation
expense was recorded based upon the assigned useful
lives; and
Assessing the adequacy of the disclosures relating to
intangible assets in the financial statements.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Company’s annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Directors for the financial report
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: https://www.auasb.gov.au/auditors_responsibilites/ar1_2020.pdf. This description forms part of
our auditor’s report.
ANNUAL REPORT 2021 125
SECTION ELEVEN • AUDITOR'S REPORT
126
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 59 to 67 of the Directors’ report for the year ended 30 June
2021.
In our opinion, the Remuneration Report of Pureprofile Limited, for the year ended 30 June 2021 complies with section
300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
S M Coulton
Partner – Audit & Assurance
Sydney, 26 August 2021
Pureprofile Ltd
Corporate directory
30 June 2021
Directors
Andrew Edwards
Martin Filz
Sue Klose
Company secretary
Lee Tamplin
Notice of annual general meeting
To be announced
Registered office
Principal place of business
Share register
Auditor
Level 5, 126 Phillip Street
Sydney NSW 2000
263 Riley Street
Surry Hills NSW 2010
Automic
Level 5, 126 Phillip Street
Sydney
NSW 2000
Tel: +61 2 9698 5414
Grant Thornton
Level 17, 383 Kent Street
Sydney
NSW 2000
Tel: +61 2 8297 2400
Stock exchange listing
Pureprofile Ltd. shares are listed on the Australian Securities Exchange (ASX code:
PPL)
Website
pureprofile.investorportal.com.au
Business objectives
Pureprofile Ltd. has used cash and cash equivalents held at the time of listing, in a
way consistent with its stated business objectives.
Corporate Governance Statement
The directors and management are committed to conducting the business of
Pureprofile Limited in an ethical manner and in accordance with the highest standards
of corporate governance. Pureprofile Limited has adopted and has substantially
complied with the ASX Corporate Governance Principles and Recommendations
(Fourth Edition) ('Recommendations') to the extent appropriate to the size and nature
of its operations. The group’s Corporate Governance Statement, which sets out the
corporate governance practices that were in operation during the financial year and
identifies and explains any Recommendations that have not been followed, and ASX
Appendix 4G are released to the ASX on the same day the Annual Report is
released. The Corporate Governance Statement can be found on the company’s
website at pureprofile.investorportal.com.au
121
ANNUAL REPORT 2021
127
SECTION ELEVEN • AUDITOR'S REPORT
128
Pureprofile Ltd
Shareholder information
30 June 2021
The shareholder information set out below was applicable as at 30 July 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
Options over ordinary
shares
Rights over ordinary
shares
Number
of holders
% of total
shares
issued
Number
of holders
% of total
shares
issued
Number
of holders
% of total
shares
issued
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
33
129
58
556
568
-
0.04
0.04
2.46
97.46
1,344
100.00
Holding less than a marketable
parcel
263
-
Equity security holders
-
-
-
-
23
23
-
-
-
-
-
100.00
100.00
-
-
-
-
61
4
65
-
-
-
-
7.15
92.85
100.00
-
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Citicorp Nominees Pty Limited
J P Morgan Nominees Australia Pty Limited
Appwam Pty Ltd
CS Third Nominees Pty Limited (HSBC Cust Nom AU Ltd 13 A/C)
Mr Christopher Wayne Lonergan
Onmell Pty Ltd (ONM BPSF A/C)
BNP Paribas Nominees Pty Ltd (IB AU Noms Retailclient DRP)
Conrad Capital Group Pty Ltd
Depofo Pty Ltd (Ordinary A/C)
DMX Capital Partners Limited
Lonergan Foundation Pty Ltd (Lonergan Foundation A/C)
Vadina Pty Limited (Jordan Super Fund A/C)
Sanit Chapelle Pty Ltd (Hannon Fmaily A/C)
BFB Holdings Pty Ltd (BFB Investment A/C)
Mr Anand Singaram
Bilson Nominees (WA) Pty Ltd
Andrew Edwards
Mr Paul Augustine Chan (The Chan Family A/C)
BKLEB Pty Ltd (The BK LEBSANFT SF A/C)
Mr Calcidon Camilleri
Ordinary shares
Number held
% of total
shares
issued
162,615,979
129,149,835
50,000,000
32,150,336
30,400,000
21,705,795
17,253,808
16,778,826
16,500,000
15,400,000
15,000,000
15,000,000
13,478,821
12,500,000
10,500,000
9,128,821
8,862,219
7,500,000
7,000,000
6,500,000
597,424,440
15.37
12.21
4.73
3.04
2.87
2.05
1.63
1.59
1.56
1.46
1.42
1.42
1.27
1.18
0.99
0.86
0.84
0.71
0.66
0.61
56.47
Pureprofile Ltd
Shareholder information
30 June 2021
Substantial holders
Substantial holders in the company are set out below:
Ordinary shares
Number held
% of total
shares
issued
Principis Master Fund SPC for the account and on behalf of Lucerne Composite Master
Fund SP
Jencay Capital Pty Limited
174,148,230
88,823,601
16.46
8.40
Voting rights
The voting rights attached to each class of equity securities are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Unlisted Options and Rights
These classes do not have voting rights.
Classes of unquoted equity securities
Unlisted Options
Rights
Number of
Holders
Number of
Securities
23
65
105,448,258
34,328,725
The only holders in these unquoted security classes holding more than 20% of the unquoted class were issued the
securities under the company’s Equity Plan.
On-market buy-back
The company is not currently conducting an on-market buy-back.
122
123
ANNUAL REPORT 2021
Copyright © 2021 Pureprofile
The financial statements cover Pureprofile Ltd. as a group consisting of Pureprofile Ltd. and the entities it controlled at the end
of, or during, the year. The financial statements are presented in Australian dollars, which is Pureprofile Ltd.’s functional and
presentation currency. Pureprofile Ltd. is a listed public Company limited by shares, incorporated and domiciled in Australia. Its
registered address is Level 5, 126 Phillip Street, Sydney NSW 2000. Its principal business address is 263 Riley Street, Surry Hills
NSW 2010. A description of the nature of the group’s operations and its principal activities are included in the directors’ report,
which is not part of the financial statements. The financial statements were authorised for issue in accordance with a resolution
of directors, on 24 August 2021. The directors have the power to amend and reissue the financial statements.