Annual
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Pureprofile’s vision
is to deliver more
value from the
world’s information
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ANNUAL REPORT 2022
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SECTION SEVEN
Data, Media
& Innovation
SECTION EIGHT
Meet our
Directors
pg 47
pg 51
SECTION NINE
Director’s Report,
Financial Report &
Auditor’s Report
pg 57
41
Table of
Contents
SECTION ONE
About
Pureprofile
SECTION TWO
Our
Business
SECTION THREE
Our Corporate
Strategy
SECTION FOUR
Our Year
in Review
SECTION FIVE
Chairman &
CEO’s Letter
SECTION SIX
Our People
& Culture
pg 3
pg 11
pg 19
pg 23
pg 35
pg 41
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SECTION ONE • ABOUT PUREPROFILE
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SECTION ONE
About
Pureprofile
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29%
of Australians say they
don’t feel represented
in portrayals of
families/households in
advertising
ANNUAL REPORT 2022
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SECTION ONE • ABOUT PUREPROFILE
ANNUAL REPORT 2022
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How Pureprofile
works
We are in the business of using data
to help businesses thrive
Market Research tells you why something is happening
Digital Advertising helps you enhance or change it
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Our established online
panel network of deeply
profiled & highly engaged
consumers allows us
to conduct in-depth,
authentic studies for our
global clients
Data lies at the core of our business
•
It powers the insights we generate for market research projects
•
It gives us critical information to accurately deliver digital
advertising solutions
Our SaaS technology accelerates the way we can use data across
our business - and allows us to deliver solutions to our clients
quickly and intelligently
D
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Leveraging the power of
our consumer panels,
and the first-party data
they generate, we provide
full-service programmatic
and digital advertising
solutions
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SECTION ONE • ABOUT PUREPROFILE
Our
advantage
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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
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Preferences
Likes high-end
products, eco-products
Reads Frankie magazine
Gets her news from
The New Yorker
Beliefs
Drives a Lexus Hybrid
Is a vegetarian
Volunteers at a wildlife
conservation centre
Donates 10% of her
salary to charity
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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 2022
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SECTION ONE • ABOUT PUREPROFILE
About
Pureprofile
Pureprofile
at a glance
Pureprofile’s
vision is to deliver
more value from
the world’s
information
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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.
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.
ANNUAL REPORT 2022
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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.
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SECTION TWO • OUR BUSINESS
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SECTION TWO
Our
Business
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¼
of Singaporeans
feel university
degrees are not
useful
ANNUAL REPORT 2022
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SECTION TWO • OUR BUSINESS
Our
Our
business
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Why clients work with us
Our client value proposition
Global reach
Direct access to millions of deeply profiled consumers
Trusted
Over 20 years of experience in the field of internet market research
Service
Quick response, personal service and dedicated teams
What services we offer our clients
Our divisions
Data & Insights
Enabling organisations to understand their audiences
Self-service platform
Access insights and campaigns through our 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 business
Focus on expanding our business outside of Australia, growing 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
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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.
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.
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.
ANNUAL REPORT 2022
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SECTION TWO • OUR BUSINESS
Our vision is to deliver
more value from the
world’s information
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Data & Insights
Pure.amplify
Platform
Operations Hub
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UK
Mainland Europe
2022
2022
USA
9 offices globally (FY21 - 7)
757 clients globally (FY21 - 700)
202 staff globally (FY21 – 155)
$37.5m in revenue from repeat clients (FY21 - $27.2m)
$9.0m in annuity revenue (FY21 - $5.7m )
India
Philippines
Singapore
Malaysia
2022
2022
2022
2022
Australia
New Zealand
ANNUAL REPORT 2022
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SECTION TWO • OUR BUSINESS
ANNUAL REPORT 2022
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Delivering
global
insights
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We are a truly global company
completing studies in 91 countries
so far this year
Insights from these countries
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SECTION THREE • OUR CORPORATE STRATEGY
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SECTION THREE
Our
Corporate
Strategy
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50%
of Brits, Americans,
Aussies and Kiwis say
they’re using their
car less due to rising
fuel costs
ANNUAL REPORT 2022
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SECTION THREE • OUR CORPORATE STRATEGY
Our corporate
strategy
ANNUAL REPORT 2022
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Data and analytics lie at the core
of our 3-stage strategy. Through
all stages of this strategy we will
continue to leverage these assets
through our rigorous commercial
applications
Focus on building a stronger and
more diverse global panel and add
complementary data sources
through strategic partnerships
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Clear
corporate
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Leverage Pureprofile
proprietary data
- Data & Insights
- Media Advertising
Accelerate our SaaS
self-service solutions
Company restructure & recapitalisation
•
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Restructure the company operations by divesting unprofitable or non-core business units
Strengthen the balance sheet with a capital raise and debt to equity swap to provide the foundation to
deliver on growth ambitions
•
Refresh executive team to provide sector expertise and to enhance leadership capability
Invest in people, panels & technology
•
•
Replicate successful Australian Data & Insights business unit in new markets outside of Australia
Focus on global panel expansion through a combination of new partnerships, acquisitions or organic growth
• Drive efficiency and improve project profitability to improve margin by increasing automation, improving
processes and providing greater client service
•
Continue to evolve our core technology by implementing new technology solutions
• Develop a highly motivated organisational culture with a clear goal of enhancing shareholder value and
employee experience
Overlay end client facing technology
•
•
Provide end to end solutions directly to brands providing an integrated suite of products, services and tools
Enable brands to reach consumers using 1st party data allowing them to build better relationships with their
customers, providing more value, and optimising their marketing campaigns
•
Continue to identify acquisition opportunities that can help accelerate growth and fill technological gaps
1
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3
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we are here
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SECTION FOUR • OUR YEAR IN REVIEW
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SECTION FOUR
Our Year
in Review
37%
of Australians are
renting their homes
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SECTION FOUR • OUR YEAR IN REVIEW
Financial
highlights
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Accelerated revenue
growth
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Positive operating
net cash flow
Closing cash at bank
balance of $5.3m up
from $3.6m on pcp
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Total revenue up
39% to $41.7m
EBITDA up
28% to $4.0m
Operating net cash flow up
63% to $3.9m
SaaS platform revenue up
217% to $3.5m
Global Data & Insights revenue up
31% to $32.1m
Operational
KPIs
ANNUAL REPORT 2022
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48%
of new clients from
new markets
22%
YOY increase in
project volume
19%
YOY increase
in active clients
217%
growth in number
of SaaS clients
4.4 years
average tenure
of clients
$6.2m
of Data & Insights revenue is
annuity revenue (past 12 months)
43%
growth in
panel acquisition
$37.5m
of revenue coming from
repeat clients
80
Net Promoter Score which
places Pureprofile in the top
quartile of global organisations
for client loyalty
35%
YOY increase in
completed surveys
434+ million
ads delivered by
Pure.amplify
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SECTION FOUR • OUR YEAR IN REVIEW
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Unearthing real healthcare
perceptions across countries
Shedding light on pet parent
spending habits
While access to safe and affordable healthcare is paramount for a well-functioning society, there is a
large variance across countries in the level of care provided to citizens.
Compare the Market were seeking to understand the perceptions and feelings people have towards
their own and other countries’ healthcare systems - to provide consumers and healthcare providers
with a deeper understanding of each country’s approach to medicine.
The solution
Tapping into our extensive global panel network, a multi-country study was launched in order to
understand key healthcare variances across America, Canada and Australia.
01
02
03
Three groups of nationally representative audiences were created - targeting according to age,
gender, and location to get an accurate snapshot of the general population in each country
We developed an engaging study via an 18-question survey in order to unearth insights into
how consumers perceive their local healthcare system
The data was provided in a variety of raw and visualised formats, giving the client a
comprehensive topline overview - and the ability to dig deeper for more granular insights
Client
case studies
The challenge
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Key results
Almost
1/2
Over
2/5
The challenge
The cost of maintaining a happy and healthy pet is on the rise - with pet expenses increasing each year.
Pet Circle wanted to help pet parents understand how they could save money on their pet expenses,
but still ensure they get what they need. So they were looking to identify:
• Exactly how much pet parents were spending on their pets each year
• What the expenses comprised
• Spending habits of pet parents to see where the opportunities were to save
The solution
An in-depth research study was launched in order to identify the spending habits of pet parents in
Australia. This was achieved by:
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Connecting to niche research audiences: We were able to instantly connect Pet Circle to
Pureprofile’s audience of self-verified pet owners. This eliminated unnecessary project
costs - as there was no need for custom audience creation or additional screening questions
02
Curating in-depth insights for the pet parenting community: In order for Pet Circle to provide
practical guidance on how to save on pet-related costs, a robust study was launched - asking pet
parents a range of detailed questions about how they care for their pets
Key results
of the population in all three countries surveyed said that they had delayed getting the medical
care they needed
Food and veterinary care were the biggest expenses for pet parents, with dog owners spending
an average of $612 on food and $640 on vet services
The majority of Australians (49%) and Canadians (47%) said they were somewhat satisfied with their
country’s healthcare, only 37% of Americans agree
of Australians and Canadians say healthcare is somewhat affordable. However, 24% of
Americans say it’s extremely unaffordable
What our client had to say
“As a research partner, Pureprofile really go the extra mile. The team really
understood our brief and delivered on exactly what was promised. They were
fast and efficient with excellent communication. We will definitely be using
them again.”
- Chris Ford | General Manager Media & Communications
Only
1/5
of pet parents ask for the best price when shopping for pet products, and only about 30%
compare prices before making a purchase
The average dog owner spent $3,350 on their pet last year - compared to just $2,377 spent on
the typical cat
What our client had to say
“Pureprofile worked in partnership with our PR and data team to ensure that we
produced a robust piece of research that had media relevance and longevity. It not only
allowed us to position ourselves as a leading pet retailer in media, we were also able to
use the research to provide genuine advice and tips to our customers to help them
pet better, which is the core of our mission.”
- Larissa Rembisz| PR Manager
ANNUAL REPORT 2022
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SECTION FOUR • OUR YEAR IN REVIEW
Our client
community
Our NPS score for FY22
was 80 which places
Pureprofile in the top
quartile* of organisations
for client loyalty **
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‘‘
The Pureprofile team is an
absolute joy to work with
- they set a true standard
for customer service in our
industry. - GreenBook
‘‘
Very personalised service. Quick and
knowledgeable response to inquiries.
Professional but also very caring to
specific needs of the research.
- University of Melbourne
‘‘
I would 110% recommend Pureprofile
and have done so already. Their ability
to understand our needs and turn them
around in a fast and cost effective way
was outstanding and I will not hesitate
to use them again. - Flight Centre NZ
‘‘
Pureprofile is the best platform 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. - Vitaco Health
‘‘
Thank you for getting this done
earlier than scheduled! Very
happy with the service and
delivery - Starburst Insights
‘‘
You guys are my favourite
fieldwork provider to work
with. - RFI Intelligence
*
**
Top quartile NPS is defined as 72 and above.
Our NPS score reflects our loyal clients who continually work with Pureprofile.
Account holder
highlights
ANNUAL REPORT 2022
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‘‘
Absolutely love being a member of
Pureprofile. So many relevant survey
opportunities, quick to accumulate a
healthy reward balance and good variety
of payment options. A long time member
and glad to see the introduction of new
competitions which make it even more
rewarding.
‘‘
I love that I can earn some money by
doing these surveys, even if I only have
20mins to do it in. Pureprofile is one of
the only survey sites I have found that
allows me to deposit directly into my
account too!
‘‘
I love doing surveys on Pureprofile
as I feel that I am doing my bit to
help shape the future of everyday
products for myself, my pets, family
and other consumers. It’s nice to make
a difference and that companies are
thankful for your valued input.
‘‘The thing I like the most about
Pureprofile is that the rewards
contribute towards petrol costs.
Especially now with the price per litre
skyrocketing!
‘‘
I love being paid to give my opinion on
a wide variety of topics. It’s so easy to
do via the Pureprofile app and it can
be done at times that suit me! Thanks
Pureprofile
‘‘I love Pureprofile because there are so
many great reward options, the site and
app make it easy to share my opinions
and I enjoy being part of shaping future
products and services.
‘‘
I like Pureprofile as it’s an easy & fun
way to pass time while waiting for my
children to finish school.
‘‘I like the versatility and practicality of
Pureprofile. I can log in at any hour, any
time of the week, and there is always a
bunch of interesting surveys waiting for
me! The duration of the survey is also
listed so I can easily work around my
schedule.
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SECTION FOUR • OUR YEAR IN REVIEW
Pureprofile
in the news
ANNUAL REPORT 2022
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The world is talking
about Pureprofile
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749 individual feature articles
and press mentions during FY22
in multiple countries across
various media formats including
publications, radio and TV.
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SECTION FOUR • OUR YEAR IN REVIEW
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What our
panellists think
We’re on the pulse of
consumer insights
We conduct marketing surveys regularly 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.
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ANNUAL REPORT 2022
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SECTION FIVE • CHAIRMAN AND CEO'S LETTER
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SECTION FIVE
Chairman &
CEO’s Letter
50%
of Kiwis said
rising interest
rates are a cause
of concern
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SECTION FIVE • CHAIRMAN AND CEO'S LETTER
ANNUAL REPORT 2022
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Chairman’s
letter
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Andrew Edwards
Non-Executive Chairman
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Pureprofile has created a global
business structure and way of working.
This empowers our talented team and
provides a platform for sustainable
growth
Dear fellow shareholder,
I am truly proud of the turnaround that Pureprofile has
achieved in a few short years. From the difficult times,
leading up to the recapitalisation of the Company in late
2020, we have now pivoted our focus from one of survival to
one of sustainable global growth.
Over the last two years, Pureprofile has recorded cumulative
annual sales growth of 31% and earnings before interest,
tax, depreciation & amortisation (EBITDA) growth of 69%.
Our strong free cashflow generation has also enabled the
Company to continue to shore up its balance sheet, with
cash at bank on 30 June 2022 of $5.3 million.
This was achieved during a year of investment, primarily
committed to the establishment of new international offices,
further development of our new SaaS platforms, growth in
market research panellists, and a substantial upgrade to
our technology. We also embarked on a robust recruitment
program across the leadership team, senior sales &
marketing personnel and support staff.
Tailwinds from global trends
Global trends continue to remain favourable for Pureprofile.
The onset of COVID-19 and the technological benefits of
operating in cloud-based environments has accelerated
the transition to remote working and online shopping. As a
result, consumer buying habits have, and should continue to
change substantially.
In addition, regulatory requirements relating to data
protection and privacy continue to tighten up around the
world. To meet these regulatory obligations, major players
like Apple and Google have either already, or are in the
process of, committing to no longer supporting third-party
cookies which assist in consumer targeting for advertising
campaigns.
We expect that for brands to stay on top of these evolving
consumer habits, and with reducing access to third-party
data, our competitive advantage of providing insights
through first-party data should provide Pureprofile with
tailwinds into the foreseeable future.
Board enhancement
As the Company embarks on the next stage of its growth
strategy, the need to strengthen the Board’s functions, and
capabilities across mergers and acquisitions and industry
expertise have been largely addressed.
As such, it was a pleasure to welcome Tim Hannon as a
Non-Executive Director. Tim was appointed on 1 January
2022 and brings experience in banking and finance, including
in mergers & acquisitions and capital markets within senior
management roles across the private sector. Tim has
previously held senior management positions at Goldman
Sachs and is currently the principal of Conrad Capital
Partners and Managing Director of Gaia Natural Capital,
corporate advisory and funds management businesses.
He was instrumental in supporting the recapitalisation of
Pureprofile and has been contributing very positively to our
growth.
I am also pleased to welcome Albert Hitchcock to the Board.
Albert has, for the last 8 months, been assisting the Board in
an advisory capacity. Effective 26 July 2022, Albert accepted
a role as Non-Executive Director. Albert brings to the Board
30 years of experience in the technology industry. More
recently, Albert was Chief Technology Officer at Pearson, the
world’s leading learning company. Before that, Albert was
Chief Information Officer for the Vodafone Group.
Closing remarks
On behalf of the Board, I would like to express my deepest
appreciation in particular to Martin Filz, Melinda Sheppard,
the senior leadership team, and all of the staff of Pureprofile.
Without the dedication, experience, and support of this great
team, Pureprofile could not have achieved the success that it
has to-date.
As we head into FY23 and beyond, I am very optimistic that
Pureprofile has established strong foundations from which
it will continue to prosper as we seek growth opportunities
across the globe.
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SECTION FIVE • CHAIRMAN AND CEO'S LETTER
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CEO’s
letter
Core to Pureprofile’s
success is its reputation
and reliability in
answering the questions
that brand owners have
about their consumers,
easily, accurately, and
effectively. It’s in our DNA
Martin Filz
Managing Director and CEO
I am delighted to report another solid year for Pureprofile and
to have achieved all of our goals for the year. During FY22, we
continued to lay the foundations for long-term sustainable
growth, whilst delivering record performances across our key
financial and operating metrics.
We opened our 9th international office, signed new strategic
partnerships, onboarded 136 new global clients, increased our
global panellists significantly, and generated consumer insights
from over 90 countries.
In a year of disciplined investment, our global team grew by
50 with senior appointments across all 9 countries. With a
core objective of improving our clients, panellists, and team’s
user experiences and operating efficiency for the business, we
also undertook a substantial upgrade of our technology. We
replaced in-house legacy with ‘best of breed’ third-party systems
across global panel management, reporting and research
quality suite.
It was pleasing to see our efforts rewarded, with existing clients
spending 30% more with us in FY22, volumes of multi-country
studies increasing 18%, and repeat client business climbing 5
ppts to 90% on the prior year.
Operating performance
Revenue grew strongly across all business units to a record
$41.9 million, an improvement of 39% on the prior year. This
being driven by Pureprofile continuing to win market share from
competitors and accelerated growth outside of Australia in Asia,
the UK, Europe and US.
During FY22, SaaS platform revenue rose 217%, benefitting
from growing support for our Audience Intelligence, Audience
Builder, and Insights Builder solutions. Our Data & Insights UK/
EU/US business grew revenue by 50%, as we leveraged global
market opportunities. Pure.amplify Media revenue grew 42%,
are solving their everyday needs. Our team are passionate
and curious, and provide flexible and bespoke solutions
as and when required. Processes and systems are also
an important consideration for our clients. As such, our
investment decisions are also driven with regard for our
clients’ needs.
Our approach ensures that our clients like and want to work
with us and this was reflected in the growth of existing key
client business and the successful contracting of new clients
during the year.
This was further acknowledged by another year of achieving
a Net Promoter Score of 80 and above. Any NPS score
of 72 or above is world class. To put this into perspective
the average NPS score globally is 32. Being client centric,
listening to their needs and ensuring our team is engaged,
passionate, curious and consultative drives this score and
resultant revenues.
Strategy, priorities, and outlook
We are now halfway through the first phase of our journey
of building a truly global, leading Data & Insights business.
During FY23, we will further invest in our sales capability,
panels, technologies, and platforms to enable us to scale our
business and to leverage the opportunities we see in our
existing and new markets and geographies.
We are fortunate that the current market environment
is presenting prospects to acquire small to medium size
businesses. These may provide opportunities to enhance
our panels, enter and further develop our businesses in
key target markets and attract senior executives. We will
continue to actively assess these opportunities throughout
the year.
Partnerships remain a core component of our growth
strategy and can provide an effective entry into new markets
and territories. Discussions with potential new partners are
ongoing in the UK, US and Asia, and we are optimistic about
announcing new agreements during the year. This will help
to increase panellists and data points and drive revenues
and profits.
Whilst we see FY23 as being another year of investment
towards building a sustainable global business, we plan to
maintain our disciplined approach towards balancing our
investment spend against our profitability and cash flow
generation. We are in a good place with our key commercial
hubs namely Singapore, UK and Netherlands. FY23 will see
us grow regionally from these hubs and focus on expanding
our US business.
In closing, I would like to thank the support and guidance
of our Board, the enthusiastic and tireless efforts of our
leadership team and staff, our clients for believing in
Pureprofile, our honest and engaged panellists, and our
supportive shareholders, bankers and advisors.
consumers, whilst creating new revenue streams and
encouraging member loyalty for our partners. We grew our
active community members for partners by 62k to 136k.
They completed 1.7m surveys, and generated 336.5m
reward points.
We welcomed new partners, both domestically and abroad
to augment our already successful partnerships. Flybuys
in Australia continues to perform strongly with member
surveys up more than 500% on FY21.
In January 2022, we announced a new partnership with
theAsianparent, the largest content and community
platform for parents, reaching 35 million users per month,
across 11 countries throughout Southeast Asia.
Brand refresh
During FY22 we successfully undertook a refresh of
Pureprofile’s corporate branding across our website, social
media applications, and sales and marketing materials. Our
intention was to elicit a sense of curiosity, discovery, and
openness, while capturing the essence of who we are, what
we value, and what we do best.
Awards and accolades
It was pleasing to be recognised for achievements by our
peers, clients and employees. In October our Audience
Intelligence platform was recognised as an ABA100 Winner
for SaaS Innovation in The Australian Business Awards 2021.
In December, Pureprofile was also awarded the winner
of Forsta’s 2021 Achievement in Insight and Research
(AIR) Awards. This was for designing and implementing
innovation, and for breaking new ground in the merging of
Market Research, Insight, and Voice of the Customer.
People
The Companies that thrive not only have great people,
but are also the ones that provide the right culture, work
environment and importantly a level of trust. At Pureprofile
we absolutely put our people first. We recruit the best, most
curious and most passionate team members to Pureprofile.
We provide them with a supportive, collaborative, open and
flexible environment. We give them a voice and invest in
their personal and professional development. We also have
embraced the post covid ways of working with fully flexible
home and office options as well as a work anywhere in the
world policy under our globetrotters program.
In return, our team rewards us with a high level of
engagement, inspiration and innovation. Translating to
higher client satisfaction and returns for the business.
In our annual Global Engagement Survey, it was pleasing to
see an excellent engagement score of 82%, with 95% of our
people recommending Pureprofile as a great place to work
and over 50% of our new hires coming from team referrals.
Further validation came from the achievement of “Great
Place to Work” certification during the year. We achieved
a 98% rating from our employees. This compares very
positively against 55% for a typical Australian Company.
Clients
Pureprofile prides itself as a client centric business. We
may be global, but we think local. We put ourselves in our
clients’ shoes, working closely with them to ensure that we
while more clients entrusted Pureprofile to activate the insights
gained from our solutions. Closer to home, our APAC Data &
Insights business continued to grow strongly, with revenue up
22% on the prior year.
EBITDA grew by 28% to $4.0 million in FY22 over the prior year.
As a result of increased re-investment in the second half of the
year, margin declined over the year from 10.3% to 9.6%.
Net cash from operating activities was $3.9 million for the year,
up from $2.4 million on the prior year, resulting in a strong
closing cash balance of $5.3 million, up from $3.6 million in
FY21.
Panels strengthening
During the year we were active in growing the number of
market research panellists and improving the quality and
engagement with our panellists. Total panel numbers increased
by 35% including a 43% increase in offshore panellists.
The quality and engagement of our panellists are core to
Pureprofile’s strength. As such, in addition to enhancing
our panel member experience through technological
improvements, new redemption policies were adopted during
the year, providing panellists the opportunity of earning more
and giving ourselves a higher yield per panellist.
Partnerships and SaaS platforms
We continue to offer our clients greater insights through the
build-out of our new SaaS-based products and platforms. A
highlight of the year was seeing our Audience Intelligence
platform recognised through signing marquee clients, such as
household names Coles and UberEats.
Audience Builder is also proving a beneficial tool for assisting
clients to stay on top of the dynamic buying behaviours of
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SECTION SIX • OUR PEOPLE AND CULTURE
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SECTION SIX
Our People
& Culture
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70%
of Australians prefer to
stream video content on
Smart TVs rather than
their smartphones or
tablets
ANNUAL REPORT 2022
43
SECTION SIX • OUR PEOPLE AND CULTURE
Our people
and culture
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Michelle Mowle
Global Head of Talent and Culture
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Engagement, retention &
talent acquisition
FY22 proved to be another year of disruptions due
to the global pandemic, although for somewhat
paradoxical reasons to the prior two years.
With rapid wage inflation and unemployment
dropping to rates not experienced since the 70’s,
the competition for talent in a niche market was
more fierce than ever. Despite this, our annual
Global Engagement Survey saw a favourable
engagement score of 82%, with 95% of our people
recommending Pureprofile as a great place to
work and over 50% of our new hires coming from
team referrals.
With Gallup’s recent release of State of the Global
Workforce 2022 confirming ‘60% of employees
are emotionally detached at work and 19%
are miserable’, our results put Pureprofile in a
powerful position to attract and retain industry
leading talent.
In FY22, we saw global headcount grow by 35%,
from 155 people to 205 strong. With 80% of these
roles being market-diverse revenue generating
positions, we have been able to support the
company’s global growth strategy. Our already
diverse culture has been further enhanced by
the engagement of new team members in the
Philippines, Netherlands, Thailand and Malaysia.
To support this growth, we invested in our HR
function, engaging an in-house Talent Acquisition
Specialist (bringing our recruitment costs down
and allowing us to have a dedicated focus on
our Employee Value Proposition), a HR Manager
based in India (to increase local efficiencies and
adopt local best practice talent management),
and a HR Generalist based in Sydney (to ensure
we maintain our high levels of engagement and
retention). The team is dedicated to embedding
innovative people practices, driving engagement &
productivity across our organisation in a scalable
format - whilst not losing sight of our core values -
Discovery, Trust, Ownership and Team.
Learning & development
Armed with the knowledge that employees are
seeking both flexibility/work-life balance and
opportunities to learn and grow, we invested
considerable effort into ensuring these two areas
remain a key focus of our value proposition.
We partnered with LinkedIn Learning, revisited
and amplified our support for study assistance
and delivered a customised leader/management
training program for over 30 managers. The result
was an increase in employee satisfaction of 7
points to 84%, favourable of their L&D experience,
whilst work-life blend increased a further 5 points
to 92%.
Hybrid working & other
employee benefits
Ongoing efforts have been made with respect to
bringing our people back into the office under
a hybrid working model, with new office spaces
secured in Melbourne, Singapore, London and
Mumbai. In light of the highly collaborative nature
of our culture there remains a high appetite for
social connection, whilst still balancing the desire
for flexibility and the feeling of empowerment
that comes with employees being able to work
to their own schedule. The opportunity to
reconnect in offices - to participate in in-person
learning, mentoring and idea sharing has been
exceptionally well received, with the common
understanding that there are definite advantages
to spending time in an office environment
including increased connection, collaboration and
overall wellbeing.
With travel reopening in the latter half of FY22,
we didn’t hesitate to promote our Globetrotters
program, enabling our people to work from
anywhere in the world for up to 3 months. We
had team members at all levels and across
functions work from various locations including
Bali, Mexico, Canada, India and Australia. This
initiative means that people who have been
separated from loved ones over the last few
years, have been able to meaningfully reconnect
with them, whilst still being able to work - and
thosewho desire world travel after a long period
of isolation, can do so without having to part ways
from Pureprofile.
44
Leadership & connectivity
What’s next?
Our leadership and management team put
considerable effort into remaining connected,
informative and supportive of their people.
Communication takes place via numerous
forums including monthly All Hands meetings,
fortnightly updates, weekly WIPS, one-on-one
meetings and ad hoc, fun global sessions. With
91% of our people agreeing the leaders at
Pureprofile keep them informed about what is
happening and 97% agreeing their managers
care about their wellbeing, we’re proud to have
exceptional and people focused leaders across
our business.
As we look forward to FY23, we are committed
to building on our people-first philosophy with
programs centering around strengths-based
career growth, global mobility and customised
reward & recognition. With no sign of the
competitive employment market slowing down,
and continued pressure around salary inflation
and benefits, Pureprofile is well positioned as
an employer of choice, with authentic flexible
working, rewarding benefits and a strong and
supportive culture. In light of Gallup’s research
showing that organisations who have a highly
engaged workforce have 23% increased profit
than one who has unhappy workers, we are
confident in our thriving culture driving the
achievement of further growth in 2023.
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 centres 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.
Reduction in permanent
office space
We conduct meetings and
townhalls online, reducing our
collective energy consumption
and realising other carbon
saving benefits.
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.
Our focus continues to
be all hands, fortnightly
company-wide updates, one
on one meetings, learning
and development career
discussions.
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.
Data protection
and privacy
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
This certification reflects
our commitment to quality,
consistency, and operational
excellence across our market
research services.
GDPR compliance
We strictly adhere 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.
ANNUAL REPORT 2022
45
SECTION SIX • OUR PEOPLE AND CULTURE
Employee
spotlights
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Boni
Krishnaswamy
Role:
Amy
Davis
Role:
Manager- Panel Management
Account Manager
Length of time at company:
6 yrs, 8 months
Length of time at company:
3 yrs, 9 months
Tell us a little bit about yourself:
I grew up in a small town outside of Mumbai
called Dombivli. Before Pureprofile I’ve had
many different roles - from recruiting to process
training at a large tech company. I also worked
in fraud investigations at JP Morgan Chase - and
a few other bits and pieces in between.
Who inspires you and why?
My mother is my biggest inspiration. She was
a refugee from Sri Lanka, while also being the
eldest daughter among 10 children. Despite a
life of hardship, she is the most warm-hearted
person I have ever met. She has inspired me to
have a skip in my step and hope in my heart, no
matter what life throws at me.
Tell us a little bit about yourself:
I grew up in Wollongong, Australia. After
completing my business degree, I began
working as a Junior Marketing Coordinator for
a Schoolies organisation. Being hands-on with
clients is something I was missing from previous
roles, so I joined Pureprofile three years ago as
an Account Manager - and could not have asked
for a better team and clients to work with!
In another life, I’m pretty sure I was a…
Detective or forensic scientist
Anything else we should know?
I’m absolutely obsessed with dogs!
Jessica
Gorzynski
Role:
Programmatic Manager
Sumedh
Gaikwad
Role:
Manager - Business Process & Systems
Length of time at company:
Length of time at company:
3 years, 8 months
7 yrs, 10 months
Tell us a little bit about yourself:
I grew up in Toronto. I started my career in
media planning before deciding to take some
time off to travel Southeast Asia with my
partner. I landed in Oz in 2017 to continue my
career in programmatic and operations. The rest
is history!
If I won the lottery tomorrow,
I’d invest heavily in renewable energy, buy all of
the pets, and, you know, keep working at
Pure.amplify
Who inspires you and why?
Literally any woman who is proud and confident
in who they are. Girl power!
Tell us a little bit about yourself:
I started working in the financial sector, growing
my skills in management, operations and data
quality, before entering the market research
space around 9 years ago. At Pureprofile, I’ve
worked in various roles across Data & Insights,
PCI and Project Management - I’m currently
working with the Technology & Operations
divisions, developing the systems and processes
we need to support our rapid growth.
If I won the lottery tomorrow,
I would retire and travel the world - and earn the
accreditations required to be a football coach,
so I could teach the next generation of football
players.
ANNUAL REPORT 2022
46
Charlotte
Watkins
Role:
Bhanu
Singh
Role:
Business Development Manager
Ad Operations Team Lead
Length of time at company:
6 years, 7 months
Length of time at company:
3 yrs, 3 months
Tell us a little bit about yourself:
I was born on the Isle of Man, a little island
just off mainland England, but grew up in
and around London. I studied Sociology and
Criminology at University and began working
in recruitment when I graduated. A friend
introduced me to the market research industry
8 years ago and I haven’t looked back since.
What’s one thing about you that’s not on
your LinkedIn profile?
I spent a couple of weeks in Calais a few years
ago volunteering at a non-profit organisation
called Help Refugees - it was a very rewarding
and insightful experience.
Tell us a little bit about yourself:
I’m from a village called Saropatti, which is in
the Bihar region of India’s north. Before Pure.
amplify, I worked at a few different agencies
- expanding my knowledge across the ad
operations space.
Who inspires you and why?
No specific person - I find life itself to be
inspiring. I believe that human beings are born
to do good things in life.
What’s your favourite quote?
“Genius is one per cent inspiration and 99 per
cent perspiration” - Thomas Edison
Stavros
Pontikis
Role:
Project Manager
Length of time at company:
1 year, 8 months
Tell us a little bit about yourself:
I grew up in Athens where I studied Electrical
Engineering. I then completed my MSc in
Management in the UK and became a Project
Manager in the travel and online outsourcing
industry. Before I knew it, I’d been in London
for 4 years! I followed my passion for the digital
world, and joined Pureprofile in Thessaloniki,
Greece in 2020.
In another life, I’m pretty sure I was…
An explorer - I’m always curious and examining
new things and objects in detail to understand
how they work or how to resolve an issue.
Eline
Rekers
Role:
Account Manager, Mainland Europe
Length of time at company:
10 months
Tell us a little bit about yourself:
I grew up in Rosmalen, south of the
Netherlands. After university and a short time
in the UK I returned and joined the market
research industry in 2018. I went on to work with
Joris for the second time last year at Pureprofile,
and instantly knew it was the best decision I’d
made.
What does success mean to you?
To me success is not about status or reaching a
certain level. It’s doing something you love and
having joy in your work and with colleagues so
want to open up your laptop in the morning and
start the day.
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SECTION SEVEN • DATA, MEDIA AND INNOVATION
48
SECTION SEVEN
Data, Media
& Innovation
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30%
of Brits, Americans,
Aussies and Kiwis
say COVID has
made them review
their work routines
ANNUAL REPORT 2022
49
SECTION SEVEN • DATA, MEDIA AND INNOVATION
ANNUAL REPORT 2022
50
Data and
Innovation
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Young Ham
Global Head of Innovation
& Partnerships
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The Data and Insights industry had a busy FY22,
with business and government alike monitoring
consumer sentiment closely. We saw several data-
centric businesses grow and expand into new
markets, emphasising the importance of consistent
insight to guide decision-making in turbulent times.
External markets
Increasingly over FY22, the market wanted to
understand how businesses and decision-makers
would respond to external influences. We saw a
number of nimble, boutique research agencies
emerge offering one-stop-shop solutions for
streamlined insights with quality respondents. Their
technology focussed on easy UI and UX that clients
could utilise without training.
Pureprofile set a goal to strengthen our B2B
targeting capabilities and we are progressing
extremely well, enabling us to cement our
positioning as an invaluable source of niche
audience insights.
Moving into FY23, the industry will need to offer
customers a range of DIY (Do It Yourself), DIT (Do
It Together), and DIFM (Do It For Me) options as
time, resource and cost constraints dictate clients’
research needs.
Global trends
Organisations across Europe and America focussed
on their in-house research capabilities, aiming to
reduce reliance on external providers, speed up the
research process, and save on costs.
This has driven demand for simple, scalable
solutions that allow brands to launch, collect,
analyse and visualise data with ease and speed.
Organisations want solutions at scale, with the ability
to conduct extensive research seamlessly across
multiple markets without having to manage multiple
vendors.
New products
Artificial Intelligence (AI) was a major theme in
FY22 and continues to be central to new product
innovation. Machine learning and the ability to
handle mass amounts of data make AI an ideal
fit for market research and in turn, enables more
comprehensive predictive analytics and behavioural
research.
Many platforms began exploring automated insights
in FY 22 by highlighting key findings and applying a
nascent layer of automated interpretation over this
so that clients would be able to readily read into the
importance of certain data and results.
FY23 outlook
The coming economic challenges will test industries
in new and different ways, and market research
will have to respond with speed and agility. There
will be a continued focus on automation and
machine learning as the market turns to solutions
that provide predictive analytics at scale. The trend
towards utilising existing data repositories for
passive research will also persist.
At Pureprofile, we have done the hard work to set
us up for a solid foundation for success in FY23.
Our expansive panel, premium data and enhanced
technological capabilities mean that our teams
are well placed to respond adeptly to evolving
needs of clients as we head into the next period of
changeable market conditions.
Pure.amplify
Media
Tasneem Ali
General Manager, Pure.amplify
FY22 was a pivotal period for the advertising industry
with Dentsu ad spend forecasts showing a global
growth of 9.2% in 2022. The market is expected to
reach US$745 billion, exceeding 2019 pre-pandemic
spend levels by US$117.2 billion. Within this is a
significant shift toward digital advertising, which is
anticipated to account for a 55.5% share.
eMarketer also predicts that in 2022, over 90%
of digital display ad dollars will be transacted
programmatically at US$ 115 billion, as agencies and
brands alike continue to embrace automated media
buying as standard practice in their advertising
strategies.
Throughout FY22, Pure.amplify focussed on
onboarding brands directly and managing their
global omnichannel campaigns. A key highlight for
us was our first global RFP win with a key player in
the healthcare sector.
We also established several strategic partnerships
with leading customer intelligence and data
enrichment platforms with integrated identity
solutions. This enables us to provide our clients
with unparalleled bespoke audience targeting and
activation, complete with extensive insights and
measurement.
Bespoke cookieless solutions
The delay in Google’s deprecation of third-party
cookies to 2024 allowed Pure.amplify time to further
develop our bespoke cookieless solutions - building
upon our ability to connect with customers in
premium environments in a more targeted way
using first-party data and world-class technology.
This was achieved by leveraging first-party assets
to build campaigns for bespoke audiences, then
connecting with them programmatically across
the proven media channels these audiences were
browsing. The result: highly-targeted advertising that
exceeded campaign goals.
By using proprietary measurement methodologies
via our research division, we were able to
successfully gauge brand uplift and awareness, and
make these available to clients pre-, mid- and post-
campaign. With more advertisers preparing for a
post-cookie future, we expect to further hone these
offerings in FY23.
Growth channels
The growth of TikTok and connected TV (CTV) were
the predominant channel trends of FY22. At the start
of the year, 4.62 billion people were using social
media with an average of 2 hours and 27 minutes
being spent on these platforms daily. TikTok was
a driving force of these high numbers, with the
platform boasting close to 750 million monthly users
worldwide.
With Australia’s average household now containing
6.7 video-capable screens, CTV usage also increased
in FY22. After totalling US$16.6 billion in 2021, global
CTV ad spending is projected to rise another 23%
by the end of 2022 to US$20.3 billion- a nearly 12%
share of total global TV ad spend (US$171 billion).
The shift in media consumption is driving the trend
toward consumer interaction, rather than one-
way messaging, leading to an increased focus on
conversational marketing and sentiment analysis.
FY23 outlook
The advertising industry is set to evolve rapidly in the
coming 12 months with video being the key driver
for the ad market and new media categories rapidly
emerging.
Global retailer media, led by traditional retailers
and Amazon, is expected to grow by 25% per year
to US$100 billion over the next five years and
will account for over 25% of total digital media
spending by 2026. Additionally, after being valued at
US$59.14 billion in 2021, the video streaming market
is predicted to expand by 21.3% from 2022 to 2030.
FY23 will see brands gravitate towards omnichannel
campaigns, powered by advanced adtech that
enables programmatic, customisable advertising
across proven channels, with regular feedback on
brand impact.
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SECTION EIGHT • MEET OUR DIRECTORS
52
SECTION EIGHT
Meet our
Directors
13%
of Brits identify as
a ‘rule breaker’
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ANNUAL REPORT 2022
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SECTION EIGHT • MEET OUR DIRECTORS
Meet our
directors
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Andrew Edwards
Non-Executive Chairman
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.
Martin Filz
Managing Director and CEO
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).
54
Sue Klose
Non-Executive Director
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.
Tim Hannon
Non-Executive Director
Tim is the Managing Director of GAIA Natural Resources, an investment
firm dedicated to linking capital markets to the restoration of the natural
environment. Tim has 25 years’ experience in the investment and securities
markets. He was a former partner of Goldman Sachs where he enjoyed an
18-year tenure, holding roles such as Head of Australian Equities, Head of
Real Estate and co-manager of Global Real Estate Securities portfolios. He was
also founder and co-manager of the Goldman Sachs Australian Infrastructure
Securities Fund, and co-manager of the award-winning Goldman Sachs Emerging
Leaders Fund.
Tim holds a Bachelor of Economics, Postgraduate Finance qualifications and an
MBA from Melbourne Business School.
Albert Hitchcock
Non-Executive Director
Albert Hitchcock was the Chief Technology and Operations Officer for
Pearson, the world’s leading learning company from March 2014 until
January 2022. In this role Albert led 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 2022
55
SECTION EIGHT • MEET OUR DIRECTORS
ANNUAL REPORT 2022
56
FY22
Summary
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Accelerated revenue growth
Positive EBITDA and Operating cash flow
Investing for the future
Highly engaged employees
Loyal and satisfied clients
Strategic
outlook
Expansion of our
global business
People
Investment in
technology,
solutions
and platforms
Clients
Acquisitions
•
•
•
•
•
•
•
•
•
•
•
•
•
Further global expansion into new markets across Southeast Asia
and Europe
Further expand our partnership program with new publishers,
financial institutions and loyalty programs in multiple countries
Targeting 50% of total revenue from markets outside of Australia
Continue to recruit industry leaders across the globe
Enhance our employee benefits and salary packages to remain an
employer of choice
Support employee growth and development through tailored online
learning programs and by providing pathways for career progression
Develop industry leading technologies to make client goals easier to achieve
Continue to look for opportunities to increase automation and improve
processes in order to meet the evolving needs of our clients
Improve our operational efficiency and increase project profitability
Continue to work with industry leading brands
Offer a consultative, solution-oriented client service
Continue to deliver a client-first experience
Execute M&A strategy to help accelerate growth and expand access to new
panellists
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SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
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SECTION NINE
Director’s Report,
Financial Report &
Auditor’s Report
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80%
of Aussies believe
healthcare is
the nation’s top
priority
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ANNUAL REPORT 2022
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Pureprofile Ltd
Directors' report
30 June 2022
Pureprofile Ltd
Directors' report
30 June 2022
During FY22, the group continued to execute on stage 2 of its corporate strategy focused on investment in people, panels
and technology as below:
●
Global business - Focus on building a stronger global business, 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.
●
Technology - Accelerate our technology solutions focusing on client facing solutions, Internal efficiency and SaaS
solutions including Audience Builder, Audience Intelligence and Insights Builder.
At the end of the financial year, the group delivered a number of initiatives consistent with its corporate strategy. Key
highlights included:
●
●
●
●
●
Revenue growth from markets outside of Australia was up 48% on pcp.
Pureprofile generated consumer insights from over 90 countries during FY22 with growth in the volume of multi-country
studies increasing 18% on pcp.
136 new global clients were signed in FY22.
●
● Market research panellists grew by 43% in the past 12 months.
●
●
New partners signed during FY22 include theAsianparent (11 countries) and iGoDirect (Australia).
Pureprofile was recognised as a 2021 AIR agency winner by Forsta in its fourth annual Achievement in Insight and
Research (AIR) Awards for designing and implementing innovation, and breaking new ground in the merging of Market
Research, Insight and Voice of the Customer.
Pureprofile’s SaaS solution, Audience Intelligence was recognised as an ABA100 Winner for SaaS Innovation in The
Australian Business Awards 2021.
Internal efficiency - continual improvement with new systems including global project management system, new
feasibility tool and enhanced reporting for panel management team. Delivering improved speed, client quality and
efficiency.
The addition of data security solution, CleanID to our operations, following the completion of a successful pilot.
Developed by OpinionRoute, CleanID is a best-in-class fraud and duplication detection system built to analyse and
identify device level attributes to eliminate known data threats in real time.
The group delivered record continuing business revenue for the year, driven by strong growth from both new and existing
clients across all markets. Revenue from existing clients was up 30% on pcp with the top 20 existing clients contributing an
additional $2.7m during FY22. Revenue from new clients delivered an incremental $5.3m during FY22.
Additionally, the group's focus on providing industry-leading research solutions and services continues to drive client loyalty
and share of wallet, with revenue from repeat clients and annuity revenue continuing to grow each quarter. As a result,
average revenue per project increased by 13% during FY22.
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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 2022.
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
Tim Hannon - Non-Executive Director (appointed on 1 January 2022)
Albert Hitchcock - Non-Executive Director (appointed on 26 July 2022)
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 loss for the group after providing for income tax amounted to $2,164,277 (30 June 2021: profit of $2,811,156).
Earnings before interest, tax, depreciation, amortisation and significant items (‘EBITDA excluding significant items’) for the
financial year amounted to a profit of $4,005,964 (30 June 2021: profit of $3,141,689).
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)/profit after income tax and EBITDA excluding
significant items:
(Loss)/profit after income tax
Less:
Interest
Add back:
Finance cost
Income tax expense
Depreciation and amortisation expense
Loss on disposal of intangible assets
Interest expense (lease)
EBITDA
Less:
Gain from loan forgiveness
Add back:
Restructuring, acquisition and capital raising costs
Share-based payment expense
Professional fees and payroll tax on share-based payments
EBITDA (excluding significant items)
Revenue from ordinary activities of $41,710,969 was up 39.0% on the prior comparable period ('pcp').
Consolidated
2022
$
2021
$
(2,164,277)
2,811,156
-
(815)
351,387
96,085
3,246,427
-
145,313
1,674,935
2,504,246
43,097
3,747,842
258,906
204,227
9,568,659
-
(8,416,780)
-
2,238,811
92,218
848,202
1,141,608
-
4,005,964
3,141,689
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ANNUAL REPORT 2022
62
Pureprofile Ltd
Directors' report
30 June 2022
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The group made a number of commercial appointments with strong research industry experience during the prior year which
supported the strong global growth in the core Data & Insights operating segment (which includes SaaS platform) of 39% on
pcp. The Data & Insights division (excluding the SaaS Platform division) delivered growth of 31% on pcp.
EBITDA (excluding significant Items) was $4,005,964 which was up 28% on pcp. This was due to the strong revenue growth
in the Data & Insights operating segment. The group delivered strong EBITDA growth whilst continuing to invest in people,
panel and technology to deliver continued top line growth in FY23.
Net cash from operating activities was $3,891,762 which was 63% up on pcp due to the continuing revenue growth and the
proactive debt collection process. The group has delivered strong revenue growth and cash collections which has positively
impacted the operating cash flow during FY22 which resulted in a closing cash at bank balance of $5.3m.
Business risks
The following is a summary of material business risks that could adversely affect our financial performance and growth
potential in future years and how we propose to mitigate such risks.
Macroeconomic risks
The group’s financial performance is somewhat determined by current and future economic conditions such as increases in
interest rates and inflation. To some extent, this is mitigated by the fact that Pureprofile operates in a number of international
markets. Additionally, one of the many benefits of market research is that it helps alleviate uncertainty that brands and
companies experience during these periods of economic pressures. As a result, market research companies are best
positioned to take advantage of the chaos and change. When consumers feel the impact from economic pressures like
inflation or a recession, they start to shop more discriminately. Understanding why consumers buy a product or service is
important for any brand to know and understand. Market research can often reveal opportunities in price, competitor
intelligence gathering, new markets, customer satisfaction, product development, target groups, and overall demand.
Competitive market and changes to market trends
The group predominantly operates in the Data and Insights industry. The increasing complexity of the industry is due to the
surging global interest to understand humans and the world. Innovation is constant and technology is playing an increasingly
important component to deliver insights. We manage this risk through maintaining product development and technology
teams that are highly experienced and remain abreast of the latest technological advances and implications for the industry
we operate in.
Privacy and data breach
The group handles personal and sensitive information. The group continues to invest in technology and resources to manage
privacy and data risks led by the Chief Technology Officer. The group has privacy policies in place and which are reviewed
on a regular basis for all jurisdictions the group operates in. An European Union ('EU') representative has been engaged to
represent Pureprofile with regards to our General Data Protection Regulation ('GDPR') requirements and compliance
practices.
Reliance on key personnel
There are a number of key personnel who are important to the group. They include the CEO, executive team and several
commercial sales, operations and technology roles. The loss of one or more of these key personnel could have a negative
impact on the business. Pureprofile seeks to mitigate this risk through maintaining its people first culture, succession planning
and providing incentives (cash and equity) linked to performance and tenure.
Pureprofile Ltd
Directors' report
30 June 2022
Platform and Technology Risks
Pureprofile relies on its own proprietary technology and the technology of other suppliers in order to service its clients and to
support and maintain its panels. There are risks that the technology may fail, become unreliable or obsolete.
Regulatory compliance
The company is a listed entity subject to a number of Australian and International laws and regulations such as consumer
protection laws, importation laws, privacy laws and those relating to workplace health and safety. The group maintains
sufficient internal controls to ensure continued compliance. The Board and the Executive team are supported by qualified
external legal advisors in all jurisdictions that the group operates in.
Cybersecurity and Information technology ('IT') infrastructure
The group reviews its cybersecurity resilience by conducting regular penetration and security testing. The group has worked
with an external IT consultant to implement the essential 8 framework which is a series of mitigation strategies to combat
cyber security incidents. Amazon web services ('AWS') is used for all infrastructure services providing access to
comprehensive compliance controls. AWS supports and implements a number of security standards and compliance
certifications, helping Pureprofile to satisfy compliance requirements for all regulatory agencies around the globe. The group
has two factor authentication enforced on all web based systems. All third party suppliers are ISO 27001 accredited.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the group during the financial year.
Matters subsequent to the end of the financial year
Mr Albert Hitchcock was appointed to the Board of Directors on the 26th July 2022.
No other matter or circumstance has arisen since 30 June 2022 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
In line with its stated corporate strategy, the group remains on track to expand the international business into the larger UK,
European and US markets, whilst continuing to grow in Australia. The group will continue its disciplined investment approach
into FY23, further developing sales and operational capability and continuing to maintain positive operating cashflow over
FY23.
The group will continue delivering best-in-class research, services and solutions via our three core divisions. The group’s
key initiatives for FY23 include:
Expansion of our global business
●
●
Further global expansion into new markets across SE Asia and Europe
Further expand our partnership program with new publishers, financial institutions and loyalty programs in multiple
countries
50% of total revenue from markets outside of Australia
●
People
●
●
●
Continue to recruit industry leaders across the globe
Enhance our employee benefits and salary packages to remain an employer of choice
Support employee growth and development through tailored online learning programs and by providing pathways for
career progression
Investment in technology, solutions and platforms
●
●
Develop industry leading technologies to make client goals easier to achieve
Continue to look for opportunities to increase automation and improve processes in order to meet the evolving needs
of our clients
Improve our operational efficiency and increase project profitability
●
Clients
●
●
●
Continue to work with industry leading brands
Offer a consultative, solution-oriented client service
Continue to deliver a client-first experience
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SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
64
Pureprofile Ltd
Directors' report
30 June 2022
Pureprofile Ltd
Directors' report
30 June 2022
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Acquisitions
●
Execute M&A strategy that can help accelerate growth and expand access to new panellists
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
than 30 years of marketing and executive
leadership
Andrew has more
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:
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
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
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), Non-Executive Director of Halo Food Co. Limited (ASX: HLF)
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 and Managing Director
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:
15,591,616 ordinary shares
Interests in shares:
21,911,805
Interests in options:
12,468,750
Interests in rights:
Experience and expertise:
Name:
Title:
Qualifications:
Tim Hannon
Non-Executive Director
Tim holds a Bachelor of Economics, Postgraduate Finance qualifications and an MBA
from Melbourne Business School.
Tim is the Managing Director of GAIA Natural Resources, and investment firm
dedicated to linking capital markets to the restoration of the natural environment. Tim
has 25 years’ experience in the investment and securities markets. He was a former
partner of Goldman Sachs where he enjoyed an 18-year tenure, holding roles such as
Head of Australian Equities, Head of Real Estate and co-manager of Global Real Estate
Securities portfolios. He was also founder and co-manager of the Goldman Sachs
Australian Infrastructure Securities Fund, and co-manager of the award-winning
Goldman Sachs Emerging Leaders Fund.
Other current directorships:
None
Former directorships (last 3 years): None
None
Special responsibilities:
13,478,821
Interests in shares:
None
Interests in options:
None
Interests in rights:
None
Contractual rights to shares:
Name:
Title:
Qualifications:
Experience and expertise:
Albert Hitchcock
Non-Executive Director (appointed on 26 July 2022)
Albert holds a Dip.MBA (Distinction) from Exeter University, a Post Graduate Certificate
in Management Studies from Exeter Business School, a ONC & HNC in Electronic
Engineering from South Devon College of Arts & Technology. Albert is a Chartered
Engineer (CEng) and is a Fellow of the Institute of Engineering & Technology (FIET).
Albert Hitchcock was the Chief Technology and Operations Officer for Pearson, the
world’s leading learning company from March 2014 until January 2022. In this role
technology, Operations
Albert
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.
Nationwide Building Society (LON: NBS)
led Digital product development,
Information
Other current directorships:
Former directorships (last 3 years): None
None
Special responsibilities:
473,355
Interests in shares:
None
Interests in options:
None
Interests in rights:
None
Contractual rights to shares:
65
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
66
Pureprofile Ltd
Directors' report
30 June 2022
Pureprofile Ltd
Directors' report
30 June 2022
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'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.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2022, and
the number of meetings attended by each director were:
Andrew Edwards
Sue Klose
Martin Filz
Tim Hannon
Full Board
Attended
Held
Nomination and
Remuneration Committee
Attended
Held
Audit and Risk Committee
Attended
Held
9
8
9
5
9
9
9
9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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.
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.
●
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.
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 director's 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 2023 are summarised as follows:
Name
Sue Klose
Andrew Edwards
Tim Hannon
Albert Hitchcock
FY 2023 Fees
$70,639
$132,600
$70,000
$70,000
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 grants directors 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 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.
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.
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Directors' report
30 June 2022
Pureprofile Ltd
Directors' report
30 June 2022
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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.
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'), rights or options to acquire
shares which may be subject to vesting conditions set by the Board. Each offer of rewards, grant of rights or options 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 or by the grant of rights or by the grant of options to receive shares
of equivalent value (as determined by the Board at the time of grant);
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.
●
●
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 three financial years.
2022
2021
2020
2019
Share price
$0.044
$0.027
$0.006
$0.010
Use of remuneration consultants
During the financial year ended 30 June 2022, 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 $22,950
for these services.
Voting and comments made at the company's 2021 Annual General Meeting ('AGM')
At the 2021 AGM, 97.85% of the votes received supported the adoption of the remuneration report for the year ended 30
June 2021. 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.
Andrew Edwards - Non-Executive Chairman
Sue Klose - Non-Executive Director
The key management personnel of the group consisted of the following directors of Pureprofile Ltd:
●
●
● Martin Filz - Chief Executive Officer and Managing Director
●
●
Tim Hannon - Non-Executive Director (appointed on 1 January 2022)
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
$
120,000
63,927
31,818
-
-
-
416,432
393,600
284,086
916,263
-
393,600
-
-
-
-
-
-
12,000
6,393
-
23,568
23,568
65,529
-
-
-
-
-
-
-
-
-
132,000
70,320
31,818
583,532
1,417,132
649,498
1,233,030
957,152
2,608,422
2022
Non-Executive Directors:
A. Edwards
S. Klose
T. Hannon*
Executive Directors:
M. Filz
Other Key Management
Personnel:
M. Sheppard
*
**
Represents remuneration from the date of appointment and/or to the date of resignation
Share-based payments for M. Filz consists of options of $218,239 and performance rights of $365,293. Share-based
payments for M. Sheppard consists of options of $561,157 and performance rights of $88,342.
69
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
70
Pureprofile Ltd
Directors' report
30 June 2022
l
y
n
o
2021
Non-Executive Directors:
A. Edwards
S. Klose
A. Nania*
Executive Directors:
M. Filz*
Other Key Management
Personnel:
M. Sheppard
e
s
u
*
**
l
a
n
o
s
r
e
p
r
o
F
Name
Non-Executive Directors:
A. Edwards
S. Klose
T. Hannon
A. Nania
Executive Directors:
M. Filz
Other Key Management
Personnel:
M. Sheppard
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
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
Represents remuneration from the date of appointment and/or to the date of resignation
Share-based payments for A. Edwards consists of options of $75,213 and share rights of $336,000. Share-based
payments for S. Klose consists of options of $30,511 and share rights of $42,000. Share-based payments for M. Filz
consists of options of $189,437 and performance rights of $136,788. Share-based payments for M. Sheppard consists
of options of $58,855 and performance rights of $53,213.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
2021
2022
At risk - STI
At risk - LTI
2022
2021
2022
2021
100%
100%
100%
-
23%
47%
-
-
-
-
-
-
77%
53%
-
-
-
-
-
-
31%
52%
28%
48%
41%
32%
72%
-
28%
68%
-
-
-
-
-
-
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 2022 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.
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Pureprofile Ltd
Directors' report
30 June 2022
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
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 2022 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.
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 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 and long-term incentives, under the Incentives Scheme, which defines the
amount, form, frequency, KPI’s and targets to which the incentives relate.
Tim Hannon
Non-Executive Director
1 January 2022
Appointment until next Annual General Meeting, at which he will be eligible for re-
election
Base salary for the year ended 30 June 2022 of $70,000 including superannuation and
any GST, 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.
Melinda Sheppard
Chief Operating Officer/Chief Financial Officer
25 June 2018
No fixed end date
Base salary for the year ended 30 June 2022 of $283,669 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.
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 2022 (2021: nil).
71
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
72
Pureprofile Ltd
Directors' report
30 June 2022
Pureprofile Ltd
Directors' report
30 June 2022
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
M. Filz
M. Sheppard
Number of
options
granted
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
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
8,479,240 16/09/2021
8,479,240 16/09/2021
2,826,413 16/09/2021
2,826,413 16/09/2021
2,826,413 16/09/2021
01/09/2021
01/09/2022
01/09/2023
01/09/2021
01/09/2022
01/09/2023
16/09/2022
16/09/2023
01/09/2022
01/09/2023
01/09/2024
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
16/09/2026
16/09/2026
16/09/2026
16/09/2026
16/09/2026
$0.020
$0.020
$0.020
$0.020
$0.020
$0.020
$0.027
$0.027
$0.027
$0.027
$0.027
$0.0153
$0.0153
$0.0153
$0.0161
$0.0161
$0.0161
$0.0340
$0.0340
$0.0340
$0.0340
$0.0340
Options granted carry no dividend or voting rights.
All options were granted over unissued fully paid ordinary shares in the company. The number of options granted was
determined having regard to the satisfaction of performance measures and weightings as described above in the section
'Group performance and link to remuneration'. Options vest based on the provision of service over the vesting period whereby
the executive becomes beneficially entitled to the option on vesting date. Options are exercisable by the holder as from the
vesting date. There has not been any alteration to the terms or conditions of the grant since the grant date. There are no
amounts paid or payable by the recipient in relation to the granting of such options other than on their potential exercise.
Values of options over ordinary shares granted, exercised and forfeited for directors and other key management personnel
as part of compensation during the year ended 30 June 2022 are set out below:
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:
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
3,333,333 26/10/2021
3,333,333 26/10/2021
3,333,334 26/10/2021
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
01/09/2022
01/09/2023
01/09/2024
01/04/2021
01/04/2022
01/04/2023
Expiry date
01/04/2026
01/04/2026
01/04/2026
26/10/2026
26/10/2026
26/10/2026
01/04/2026
01/04/2026
01/04/2026
Fair value
per right
at grant date
$0.0240
$0.0240
$0.0240
$0.0604
$0.0604
$0.0604
$0.0250
$0.0250
$0.0250
Performance rights granted carry no dividend or voting rights.
All performance rights were granted over unissued fully paid ordinary shares in the company. The number of performance
rights granted was determined having regard to the satisfaction of performance measures and weightings as described above
in the section 'Group performance and link to remuneration'. Performance rights vest based on the provision of service over
the vesting period whereby the executive becomes beneficially entitled to the rights on vesting date. Performance rights are
exercisable by the holder as from the vesting date. There has not been any alteration to the terms or conditions of the grant
since the grant date. There are no amounts paid or payable by the recipient in relation to the granting of such rights other
than on their potential exercise.
Values of performance rights over ordinary shares granted, vested and lapsed for directors and other key management
personnel as part of compensation during the year ended 30 June 2022 are set out below:
Value of
options
granted
during the
year
$
Value of
options
exercised
during the
year
$
Value of
options
forfeited
during the
year
$
-
865,358
167,140
67,713
-
51,546
Name
M. Filz
M. Sheppard
Value of
rights
granted
during the
year
$
Value of
rights
exercised
during the
year
$
Value of
rights
lapsed
during the
year
$
604,034
-
177,750
117,187
-
-
Share rights
There were no share rights over ordinary shares issued to directors and other key management personnel that affect their
remuneration in this financial year or future financial years.
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
Additions*
Disposals/
other
Balance at
the end of
the year
8,862,219
375,000
250,000
9,487,219
-
-
-
-
-
15,216,616
7,006,736
22,223,352
-
-
-
-
8,862,219
15,591,616
7,256,736
31,710,571
*
Additions for M. Filz consist of exercise of options of 7,630,366 shares, exercise of performance rights of 7,406,250
shares and purchase of 180,000 shares. Additions for M. Sheppard consist of exercise of options of 2,319,236 shares
and exercise of performance rights of 4,687,500 shares.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Name
M. Filz
M. Sheppard
73
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
74
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:
Pureprofile Ltd
Directors' report
30 June 2022
l
y
n
o
Options over ordinary shares
A. Edwards
S. Klose
M. Filz
M. Sheppard
e
s
u
Options over ordinary shares
A. Edwards
S. Klose
l
a
n
o
s
r
e
p
Share rights over ordinary shares
A. Edwards
S. Klose
Share rights over ordinary shares
A. Edwards
S. Klose
Balance at
the start of
the year
4,930,156
2,000,000
32,867,707
12,626,719
52,424,582
Granted
Exercised
Forfeited
Balance at
the end of
the year
-
-
-
25,437,719
25,437,719
-
-
(10,955,902)
(4,208,906)
(15,164,808)
-
-
-
(1,515,239)
(1,515,239)
4,930,156
2,000,000
21,911,805
32,340,293
61,182,254
Vested and
Vested and
exercisable unexercisable
Balance at
the end of
the year
4,930,156
2,000,000
6,930,156
-
-
-
4,930,156
2,000,000
6,930,156
Balance at
the start of
the year
14,000,000
1,750,000
15,750,000
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
-
-
-
-
-
14,000,000
1,750,000
15,750,000
Vested and
Vested and
exercisable unexercisable
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
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:
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:
r
o
F
Performance rights over ordinary shares
M. Filz
M. Sheppard
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
9,875,000
6,250,000
16,125,000
10,000,000
-
10,000,000
(7,406,250)
(4,687,500)
(12,093,750)
-
-
-
12,468,750
1,562,500
14,031,250
Pureprofile Ltd
Directors' report
30 June 2022
Performance rights over ordinary shares
M. Filz
M. Sheppard
Vested and
Vested and
exercisable unexercisable
Balance at
the end of
the year
-
-
-
-
-
-
-
-
-
Other transactions with key management personnel and their related parties
During the financial year, expenses totalling $12,330 (2021: $7,934) 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
16/09/2021
17/09/2021
Expiry date
08/12/2022
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
16/09/2026
17/09/2026
Exercise
price
Number
under option
$0.030
$0.020
$0.020
$0.020
$0.020
$0.020
$0.027
$0.027
1,200,000
4,930,156
2,000,000
21,911,805
8,417,813
22,501,869
25,437,720
39,288,326
125,687,689
Shares issued on the exercise of options
The following ordinary shares of Pureprofile Ltd were issued during the year ended 30 June 2022 and up to the date of this
report on the exercise of options granted:
Date options granted
19/10/2020
01/04/2021
29/01/2021
01/04/2021
24/05/2021
01/04/2021
Exercise
price
Number of
shares issued
$0.030
$0.000
$0.000
$0.000
$0.030
$0.000
13,800,000
4,527,701
9,512,861
1,995,961
4,000,000
390,502
34,227,025
75
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
76
Pureprofile Ltd
Directors' report
30 June 2022
Pureprofile Ltd
Directors' report
30 June 2022
Shares under share rights
Unissued ordinary shares of Pureprofile Ltd under share rights at the date of this report are as follows:
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
The following ordinary shares of Pureprofile Ltd were issued during the year ended 30 June 2022 and up to the date of this
report on the exercise of performance rights granted:
l
y
n
o
Grant date
29/01/2021
29/01/2021
01/04/2021
03/02/2022
09/02/2022
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Date share rights granted
01/04/2021
01/04/2021
01/04/2021
Grant date
29/01/2021
01/04/2021
26/10/2021
Date performance rights granted
29/01/2021
01/04/2021
01/04/2021
29/01/2021
Expiry date
01/04/2026
01/04/2026
01/04/2026
03/02/2027
09/02/2027
Number
under rights
14,000,000
1,750,000
230,587
15,653
15,653
16,011,893
Exercise
price
Number of
shares issued
$0.000
$0.000
$0.000
327,322
146,033
2,493,950
2,967,305
Expiry date
01/04/2026
01/04/2026
26/10/2026
Number
under rights
2,468,750
1,562,500
10,000,000
14,031,250
Exercise
price
Number of
shares issued
$0.000
$0.000
$0.000
$0.000
4,937,500
3,125,000
1,562,500
2,468,750
12,093,750
Shares under performance rights
Unissued ordinary shares of Pureprofile Ltd under performance rights at the date of this report are as follows:
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
The following ordinary shares of Pureprofile Ltd were issued during the year ended 30 June 2022 and up to the date of this
report on the exercise of performance rights granted:
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.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 30 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 30 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
●
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.
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ANNUAL REPORT 2022
78
Pureprofile Ltd
Directors' report
30 June 2022
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
30 August 2022
Sydney
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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 2022, 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, 30 August 2022
ACN-130 913 594
www.grantthornton.com.au
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ‘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 Limited 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. Liability limited by a scheme approved under Professional
Standards Legislation.
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80
Pureprofile Ltd
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2022
Pureprofile Ltd
Statement of financial position
As at 30 June 2022
Revenue
41,710,969
30,002,038
Assets
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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
Loss on disposal of intangible assets
Loss on disposal of property, plant and equipment
Technology, engineering and licence fees
Share-based payment expense
Professional fees and payroll tax on share-based payments
Restructuring, acquisition and capital raising costs
Occupancy costs
Other expenses
Finance costs
(Loss)/profit before income tax expense
Income tax expense
(Loss)/profit after income tax expense for the year attributable to the owners
of Pureprofile Ltd
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
Total comprehensive (loss)/profit for the year attributable to the owners of
Pureprofile Ltd
Consolidated
Note
2022
$
2021
$
5
6
7
37
7
8
617,209
-
-
843,454
815
8,416,780
(20,182,045)
(13,047,971)
-
(3,246,427)
-
(33,914)
(3,159,168)
(2,238,811)
(92,218)
-
(141,641)
(1,757,475)
(496,700)
(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)
(2,068,192)
2,854,253
(96,085)
(43,097)
(2,164,277)
2,811,156
(4,601)
(4,700)
(4,601)
(4,700)
(2,168,878)
2,806,456
Cents
Cents
36
36
(0.20)
(0.20)
0.43
0.42
Basic earnings per share
Diluted earnings per share
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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
Lease liabilities
Income tax
Provisions
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
2022
$
2021
$
9
10
11
12
13
14
15
17
18
19
20
21
22
23
5,298,389
6,972,902
685,778
1,121,648
14,078,717
3,621,675
5,700,828
689,083
1,056,642
11,068,228
77,503
1,107,139
5,766,959
6,951,601
147,611
1,945,484
6,237,541
8,330,636
21,030,318
19,398,864
8,869,380
954,838
150,079
68,434
2,488,205
12,530,936
7,172,052
733,321
362,007
66,584
2,453,258
10,787,222
3,000,000
990,006
148,237
4,138,243
3,000,000
1,750,327
112,859
4,863,186
16,669,179
15,650,408
4,361,139
3,748,456
24
25
60,426,781
3,725,266
(59,790,908)
59,892,781
1,482,306
(57,626,631)
4,361,139
3,748,456
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
The above statement of financial position should be read in conjunction with the accompanying notes
ANNUAL REPORT 2022
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ANNUAL REPORT 2022
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Pureprofile Ltd
Statement of changes in equity
For the year ended 30 June 2022
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 (loss)/profit for the year
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 24)
Share-based payments (note 37)
Balance at 30 June 2021
Consolidated
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Balance at 1 July 2021
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
18,431,279
-
-
1,249,347
-
-
18,431,279
1,249,347
59,892,781
1,482,306
(57,626,631)
3,748,456
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
59,892,781
1,482,306
(57,626,631)
3,748,456
Pureprofile Ltd
Statement of cash flows
For the year ended 30 June 2022
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Receipts from government grants
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
Repayment of borrowings
Repayment of lease liabilities
Loss after income tax expense for the year
Other comprehensive loss for the year, net of tax
-
(4,601)
(2,164,277)
-
(2,164,277)
(4,601)
-
-
-
Total comprehensive loss for the year
(4,601)
(2,164,277)
(2,168,878)
Net cash from financing activities
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 24)
Share-based payments (note 37)
Consultancy fee paid as share rights (note 37)
Balance at 30 June 2022
534,000
-
-
-
2,238,811
8,750
-
-
-
534,000
2,238,811
8,750
60,426,781
3,725,266
(59,790,908)
4,361,139
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
Cash and cash equivalents at the end of the financial year
9
5,298,389
3,621,675
Consolidated
Note
2022
$
2021
$
38
13
15
24
43,364,234
(39,113,843)
30,331,757
(28,246,741)
4,250,391
-
-
(263,887)
(94,742)
2,085,016
478,500
815
(175,681)
(37,683)
3,891,762
2,350,967
(52,492)
(2,217,326)
4,205
(43,736)
(2,012,257)
8,841
(2,265,613)
(2,047,152)
534,000
-
-
(453,429)
13,396,878
(1,080,749)
(9,896,878)
(863,588)
80,571
1,555,663
1,706,720
3,621,675
(30,006)
1,859,478
1,768,401
(6,204)
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The above statement of changes in equity should be read in conjunction with the accompanying notes
The above statement of cash flows should be read in conjunction with the accompanying notes
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Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 1. General information
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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 30 August 2022. 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.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the group.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
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.
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 2022 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.
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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.
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.
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ANNUAL REPORT 2022
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Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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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
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
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.
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.
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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.
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.
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Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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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.
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.
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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.
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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 are 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.
89
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ANNUAL REPORT 2022
90
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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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.
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.
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.
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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 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.
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.
91
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
92
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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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.
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.
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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 2022. The group has not yet
assessed the impact of these new or amended Accounting Standards and Interpretations.
Note 3. Critical accounting judgements, estimates and assumptions
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.
93
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
94
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 4. Operating segments (continued)
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 2022 and 30 June 2021, no single customer contributed more than 10% to the group's
external revenue.
Operating segment information (continuing and discontinued operations)
Consolidated - 2022
Revenue
Sales to external customers
Interest
Total revenue
Data &
Insights
$
Pure.amplify
Media AU
$
Pure.amplify
Media UK
$
Corporate
$
Total
$
35,544,435
-
35,544,435
4,901,233
-
4,901,233
1,265,301
-
1,265,301
-
-
-
41,710,969
-
41,710,969
EBITDA
Depreciation and amortisation
Share-based payment expense
Professional fees and payroll tax on share-
based payments
Interest expense on leases
Finance costs
(Loss)/profit before income tax expense
Income tax expense
Loss after income tax expense
10,821,810
(2,687,909)
-
-
-
-
8,133,901
492,736
-
-
-
-
-
492,736
(53,732)
-
-
(7,254,850)
(558,518)
(2,238,811)
4,005,964
(3,246,427)
(2,238,811)
-
-
-
(53,732)
(92,218)
(145,313)
(351,387)
(10,641,097)
(92,218)
(145,313)
(351,387)
(2,068,192)
(96,085)
(2,164,277)
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Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 3. Critical accounting judgements, estimates and assumptions (continued)
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.
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; and
● Pure.amplify Media UK.
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.
95
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
96
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 5. Revenue (continued)
During the financial years ended 30 June 2022 and 30 June 2021, all revenue was recognised based on services transferred
over time.
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
Gain on lease modification
Miscellaneous
Other income
Consolidated
2022
$
2021
$
10,825
-
-
291,082
281,788
33,514
-
8,841
364,500
468,997
-
1,116
617,209
843,454
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.
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 4. Operating segments (continued)
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
(Loss)/profit before income tax expense
Income tax expense
Profit after income tax expense
Data &
Insights
$
Pure.amplify
Media AU
$
Pure.amplify
Media UK
$
Corporate
$
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
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 (2021: 3) regions. The sales revenue based on each
client region is as follows:
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y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Sales to external customers
Australasia
Europe
United States
Note 5. Revenue
Data & Insights
Data & Insights - SaaS Platform
Pure.amplify Media AU
Pure.amplify Media UK
Revenue
Consolidated
2022
$
2021
$
28,332,293
8,958,077
4,420,599
21,318,089
6,359,052
2,324,897
41,710,969
30,002,038
Consolidated
2022
$
2021
$
32,091,966
3,452,469
4,901,233
1,265,301
24,560,948
1,090,098
3,253,125
1,097,867
41,710,969
30,002,038
Disaggregation of revenue
Refer to note 4 'Operating segments' for analysis of revenue by major product line and geographical region.
97
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
98
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 7. Expenses
(Loss)/profit before income tax 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
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
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Consolidated
2022
$
2021
$
476,674
81,845
711,103
86,382
558,519
797,485
2,309,732
378,176
2,572,181
378,176
2,687,908
2,950,357
3,246,427
3,747,842
351,387
145,313
2,504,246
204,227
496,700
2,708,473
22,495
-
2,630
-
(22,916)
3,970
25,125
(18,946)
887,261
680,932
Pureprofile Ltd
Notes to the financial statements
30 June 2022
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
(Loss)/profit before income tax expense
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
2022
$
2021
$
86,604
9,481
66,929
(23,832)
96,085
43,097
(2,068,192)
2,854,253
(620,458)
856,276
4,540
671,643
-
-
-
-
(1,508)
54,217
9,481
39,934
(64,162)
104,017
(47,402)
12,682
342,482
(3,959,962)
591,038
1,434,928
77,672
2,347
(642,537)
(23,832)
450,232
(12,211)
283,295
(11,850)
96,085
43,097
Consolidated
2022
$
2021
$
12,160,710
9,658,712
Tax losses not recognised
Potential unused tax benefit for which no deferred tax asset has been recognised
1,099,223
4,820,760
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.
Note 9. Current assets - cash and cash equivalents
Cash at bank
Cash on deposit*
Consolidated
2022
$
2021
$
5,289,175
9,214
3,612,716
8,959
5,298,389
3,621,675
*
Cash on deposit of $9,214 (2021: $8,959) is a restricted cash balance which is held and maintained as security over
the group's leased properties.
99
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
100
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 10. Current assets - trade and other receivables
Trade receivables
Less: Allowance for expected credit losses
Other receivables
Allowance for expected credit losses
The group has recognised a loss of $49,047 (2021: $31,576) in profit or loss in respect of impairment of receivables for the
year ended 30 June 2022.
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
2022
%
2021
%
Carrying amount
2021
$
2022
$
Allowance for expected
credit losses
2022
$
2021
$
-
-
30.0270%
58.3035%
-
0.0081%
35.3873%
53.7664%
5,896,384
952,412
157,234
33,779
4,774,602
847,180
68,994
74,698
-
-
47,213
19,694
-
69
24,415
40,162
7,039,809
5,765,474
66,907
64,646
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 2022 and rates have increased in the over 6 months overdue category.
Movements in the allowance for expected credit losses are as follows:
Consolidated
2022
$
2021
$
6,938,442
(66,907)
6,871,535
5,700,476
(64,646)
5,635,830
101,367
64,998
6,972,902
5,700,828
Consolidated
2022
$
2021
$
64,646
49,047
(46,786)
94,422
31,576
(61,352)
66,907
64,646
Consolidated
2022
$
2021
$
685,778
689,083
Opening balance
Additional provisions recognised
Receivables written off during the year as uncollectable
Closing balance
Note 11. Current assets - contract assets
Contract assets
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e
s
u
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a
n
o
s
r
e
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r
o
F
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 11. Current assets - contract assets (continued)
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
Closing balance
Consolidated
2022
$
2021
$
689,083
686,993
(12,707)
(677,591)
402,593
690,298
5,826
(409,634)
685,778
689,083
Allowance for expected credit losses
The allowance for expected credit losses on contract assets for the year ended 30 June 2022 is $nil (2021: $nil).
Note 12. Current assets - other
Prepayments
Note 13. Non-current assets - property, plant and equipment
Office and computer equipment - at cost
Less: Accumulated depreciation
Consolidated
2022
$
2021
$
1,121,648
1,056,642
Consolidated
2022
$
2021
$
378,041
(300,538)
784,294
(636,683)
77,503
147,611
101
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
102
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 13. Non-current assets - property, plant and equipment (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
l
Balance at 30 June 2022
Note 14. Non-current assets - right-of-use assets
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n
o
e
s
u
a
n
o
s
r
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p
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o
F
Consolidated
Balance at 1 July 2020
Additions
Disposals
Exchange differences
Depreciation expense
Balance at 30 June 2021
Additions
Disposals
Exchange differences
Depreciation expense
Buildings - right-of-use
Less: Accumulated depreciation
Consolidated
Balance at 1 July 2020
Additions
Exchange differences
Depreciation expense
Balance at 30 June 2021
Additions
Lease modification
Exchange differences
Depreciation expense
Balance at 30 June 2022
Office and
computer
equipment
$
187,540
43,736
(154)
2,871
(86,382)
147,611
52,492
(38,482)
(2,273)
(81,845)
77,503
Consolidated
2022
$
2021
$
2,449,802
(1,342,663)
2,848,098
(902,614)
1,107,139
1,945,484
Buildings -
right-of-use
$
2,374,240
233,413
48,934
(711,103)
1,945,484
1,175,231
(1,390,437)
(146,465)
(476,674)
1,107,139
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:
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 15. Non-current assets - intangibles
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
Consolidated
2022
$
2021
$
15,503,285
(15,503,285)
-
15,503,285
(15,503,285)
-
29,036,730
(19,183,688)
(4,598,724)
5,254,318
26,819,404
(16,873,956)
(4,598,724)
5,346,724
3,622,000
(1,168,990)
(2,453,010)
-
3,622,000
(1,168,990)
(2,453,010)
-
2,694,410
(2,181,769)
512,641
2,694,410
(1,803,593)
890,817
5,766,959
6,237,541
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 2020
Additions
Disposals
Amortisation expense
Balance at 30 June 2021
Additions
Amortisation expense
Balance at 30 June 2022
Software
$
Membership
base
$
Brand
names
$
6,071,554
2,012,257
(164,906)
(2,572,181)
5,346,724
2,217,326
(2,309,732)
1,268,993
-
-
(378,176)
890,817
-
(378,176)
5,254,318
512,641
94,000
-
(94,000)
-
-
-
-
-
Total
$
7,434,547
2,012,257
(258,906)
(2,950,357)
6,237,541
2,217,326
(2,687,908)
5,766,959
103
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
104
Deferred tax asset comprises temporary differences attributable to:
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 16. Non-current assets - deferred tax
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
Business related capital expenditure
Unrealised foreign exchange (gain)/loss
Deferred tax asset
Movements:
Opening balance
Credited to profit or loss (note 8)
Closing balance
l
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n
o
e
s
u
l
a
n
o
s
r
e
p
Trade payables
Accrued expenses
Other payables
Note 18. Current liabilities - contract liabilities
r
o
F
Contract liabilities
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 18. Current liabilities - contract liabilities (continued)
Consolidated
2022
$
2021
$
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and previous financial year are set out
below:
1,048
(2,501)
(177,420)
-
35,725
(136,196)
76,536
192,923
9,885
8,656
(1,687)
(347,054)
(28,200)
159,734
(95,835)
31,885
298,940
(26,439)
-
-
-
-
-
-
-
-
Consolidated
2022
$
2021
$
3,509,731
4,665,798
693,851
2,424,285
3,944,087
803,680
8,869,380
7,172,052
Consolidated
2022
$
2021
$
954,838
733,321
Opening balance
Payments received in advance
Transfer to revenue
Disposals
Foreign exchange differences
Closing balance
Consolidated
2022
$
2021
$
733,321
2,004,074
(1,775,220)
-
(7,337)
377,687
1,170,984
(816,747)
(1,339)
2,736
954,838
733,321
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 $954,838 as at 30 June 2022 ($733,321 as at 30 June 2021) and is expected to be recognised as
revenue in future periods as follows:
Within 6 months
6 to 12 months
Note 19. Current liabilities - lease liabilities
Lease liability
Refer to note 27 for further information on financial instruments.
Note 20. Current liabilities - provisions
Employee benefits
Reward redemption
Consolidated
2022
$
2021
$
830,485
124,353
666,372
66,949
954,838
733,321
Consolidated
2022
$
2021
$
150,079
362,007
Consolidated
2022
$
2021
$
737,930
1,750,275
562,760
1,890,498
2,488,205
2,453,258
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 23 for further information.
The group has unused tax losses of $1,099,223 (2021: $4,820,760) 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
105
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
106
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 21. Non-current liabilities - borrowings
Loans
Refer to note 27 for further information on financial instruments.
The debt facility between the group and its existing lender, Lucerne, 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 facility does not contain business performance covenants. As at 30 June 2022, the facility
has been fully drawn.
On 1 October 2021, the respective rights and obligations under each of the facility agreement and the general security deeds
were novated to Altor Capital Management Pty Ltd.
Total secured liabilities
The total secured liabilities (current and non-current) are as follows:
Loans
Assets pledged as security
The loans are secured by the assets of the group.
Financing arrangements
Unrestricted access was available at the reporting date to the following lines of credit:
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 23. Non-current liabilities - provisions
Consolidated
2022
$
2021
$
3,000,000
3,000,000
Employee benefits
Lease make-good
Consolidated
2022
$
2021
$
77,303
70,934
39,195
73,664
148,237
112,859
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
2022
$
2021
$
3,000,000
3,000,000
Consolidated
2022
$
2021
$
Consolidated - 2022
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
Note 24. Equity - issued capital
Reward
redemption
$
Lease make-
good
$
1,890,498
6,222,522
(5,574,720)
(303,963)
(4,935)
(479,127)
73,664
-
-
-
(2,730)
-
1,750,275
70,934
Consolidated
2022
Shares
2021
Shares
2022
$
2021
$
3,000,000
3,000,000
Ordinary shares - fully paid
1,107,022,671
1,057,734,591
60,426,781
59,892,781
3,000,000
3,000,000
-
-
Consolidated
2022
$
2021
$
990,006
1,750,327
Total facilities
Loans
Used at the reporting date
Loans
Unused at the reporting date
Loans
Note 22. Non-current liabilities - lease liabilities
Lease liability
Refer to note 27 for maturity analysis of lease liabilities.
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a
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s
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F
107
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
108
l
y
n
o
e
s
u
l
*
**
a
n
o
s
r
e
p
r
o
F
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 24. Equity - issued capital (continued)
Movements in ordinary share capital
Details
Balance
Issue of shares
Issue of shares
Issue of shares*
Less: share issue costs net of taxation
Balance
Shares issued on exercise of share rights**
Shares issued on exercise of share rights**
Shares issued on exercise of share options
Shares issued on exercise of share options*/**
Shares issued on exercise of performance rights*/**
Shares issued on exercise of performance rights*/**
Shares issued on exercise of share options*/**
Shares issued on exercise of share options*/**
Shares issued on exercise of share options
Shares issued on exercise of share options*
Shares issued on exercise of share rights*
Shares issued on exercise of performance rights*
Shares issued on exercise of performance rights*
Balance
Date
Shares
Issue price
$
1 July 2020
24 November 2020
1 December 2020
8 December 2020
30 June 2021
5 July 2021
6 October 2021
6 October 2021
6 October 2021
6 October 2021
6 October 2021
29 October 2021
18 November 2021
18 November 2021
8 February 2022
1 April 2022
1 April 2022
7 April 2022
117,526,063
353,600,944
186,500,000
400,107,584
-
1,057,734,591
327,322
146,033
13,800,000
4,527,701
4,937,500
3,125,000
9,512,861
1,995,961
4,000,000
390,502
2,493,950
1,562,500
2,468,750
30 June 2022
1,107,022,671
$0.020
$0.020
$0.020
$0.000
41,461,502
7,072,019
3,730,000
8,002,152
(372,892)
$0.030
$0.030
59,892,781
-
-
414,000
-
-
-
-
-
120,000
-
-
-
-
60,426,781
In accordance with the initial award offering, disposal or trading of ordinary shares is restricted until the expiry of 12
months following the date the shares are issued.
The exercise price is a notional amount that is not paid in cash. Instead, when the options are exercised, the number of
shares issued are reduced by an equivalent number to cover the notional exercise price.
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.
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 24. Equity - issued capital (continued)
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.
Note 25. Equity - reserves
Foreign currency reserve
Share-based payments reserve
Consolidated
2022
$
2021
$
(220,882)
3,946,148
(216,282)
1,698,588
3,725,266
1,482,306
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:
Consolidated
Balance at 1 July 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 translation
Share-based payments
Consultancy fee paid as share rights
Foreign
currency
$
Share-based
payments
$
Total
$
(211,582)
(4,700)
-
-
-
-
(216,282)
(4,601)
-
-
449,241
-
1,141,608
61,248
37,741
8,750
1,698,588
-
2,238,811
8,750
237,659
(4,700)
1,141,608
61,248
37,741
8,750
1,482,306
(4,601)
2,238,811
8,750
Balance at 30 June 2022
(220,883)
3,946,149
3,725,266
*
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 26. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
109
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
110
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 27. Financial instruments
Price risk
The group is not exposed to any significant price risk.
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s
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a
n
o
s
r
e
p
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F
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.
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.
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 2022 and 30 June 2021, 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 2022 and rates have increased in the category of over 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 2022
Note 27. 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 - 2022
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Reward redemption provision
Interest-bearing - fixed rate
Loans
Lease liability
Total non-derivatives
Consolidated - 2021
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
$
-
-
-
3,509,731
693,851
1,750,275
-
-
-
-
-
-
-
-
-
3,509,731
693,851
1,750,275
8.50%
8.44%
255,000
234,525
6,443,382
3,302,151
185,231
3,487,382
-
570,768
570,768
-
542,351
542,351
3,557,151
1,532,875
11,043,883
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%
255,000
654,368
6,027,831
255,000
238,219
493,219
3,302,151
1,457,942
4,760,093
-
525,367
525,367
3,812,151
2,875,896
11,806,510
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 28. 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.
111
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
112
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 32. 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
2022
$
2021
$
12,330
7,934
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 33. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 29. 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:
During the financial year the following fees were paid or payable for services provided by Grant Thornton Australia, the
auditor of the company, its network firms and unrelated firms:
Short-term employee benefits
Post-employment benefits
Share-based payments
Note 30. Remuneration of auditors
Audit services - Grant Thornton Australia
Audit or review of the financial statements
Other services - Grant Thornton Australia
Taxation services
Audit services - network firms
Audit or review of the financial statements
Other services - other firms
Taxation services
Assistance in financial due diligence
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Note 31. Contingent liabilities
The group had no contingent liabilities as at 30 June 2022 (2021: none).
Note 32. Related party transactions
Parent entity
Pureprofile Ltd is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 34.
Key management personnel
Disclosures relating to key management personnel are set out in note 29.
Consolidated
2022
$
2021
$
1,309,863
65,529
1,233,030
757,294
58,636
922,017
2,608,422
1,737,947
Consolidated
2022
$
2021
$
174,800
158,750
30,400
91,150
205,200
249,900
Loss after income tax
Total comprehensive loss
27,512
31,500
Statement of financial position
86,253
37,550
46,414
36,300
123,803
82,714
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Foreign currency reserve
Share-based payments reserve
Accumulated losses
Total equity
Parent
2022
$
2021
$
(7,827,883)
(3,632,643)
(7,827,883)
(3,632,643)
Parent
2022
$
2021
$
6,560
609,839
11,058,133
11,175,375
2,841
1,084,445
9,013,968
4,084,445
60,427,739
(2,877)
3,946,148
(62,326,845)
59,931,480
(2,435)
1,660,847
(54,498,962)
2,044,165
7,090,930
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 35), under which it guarantees the debts of certain of its
subsidiaries as at 30 June 2022 and 30 June 2021.
113
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
114
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 33. Parent entity information (continued)
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2022 and 30 June 2021.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022 and 30 June 2021.
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 34. 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:
Principal place of business /
Country of incorporation
USA
Australia
Australia
United Kingdom
USA
Australia
India
Poland
New Zealand
United Kingdom
Singapore
Ownership interest
2021
2022
%
%
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%
-
Name
Pureprofile.com, Inc.
Pureprofile Australia Pty Limited
Pureprofile Global Pty Ltd
Pureprofile UK Ltd
Pureprofile US Inc.
ACN 605 146 567 PTY LTD*
Funbox India Private Limited**
Sparc Media sp. Z o.o.
Pureprofile NZ Ltd
Pureprofile Performance Ltd***
Pureprofile Singapore Pte. Ltd****
Formerly known as Sparc Media Pty Ltd.
*
** Deregistered on 23 December 2021.
*** Formerly known as Cohort Global Ltd.
**** Incorporated on 11 April 2022.
Note 35. Deed of cross guarantee
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
ACN 605 146 567 PTY LTD (formerly known as Sparc Media Pty Ltd)
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'.
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Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 35. Deed of cross guarantee (continued)
Set out below is a consolidated statement of profit or loss and other comprehensive income and statement of financial
position of the '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
Foreign exchange loss
Depreciation and amortisation expense
Loss on disposal of property, plant and equipment
Professional fees and payroll tax on share-based payments
Technology, engineering and licence fees
Share-based payment expense
Restructuring, acquisition and capital raising costs
Occupancy costs
Other expenses
Finance costs
(Loss)/profit before income tax expense
Income tax expense
(Loss)/profit after income tax expense
Other comprehensive income for the year, net of tax
Total comprehensive (loss)/profit for the year
Equity - accumulated losses
Accumulated losses at the beginning of the financial year
(Loss)/profit after income tax expense
Accumulated losses at the end of the financial year
2022
$
2021
$
38,943,301
23,999
-
-
-
(18,908,973)
(10,101,724)
(168,133)
(3,002,089)
-
(61,719)
(3,075,383)
(2,242,723)
-
(36,200)
(3,356,687)
(403,593)
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)
(2,389,924)
-
7,963,209
-
(2,389,924)
7,963,209
-
-
(2,389,924)
7,963,209
2022
$
2021
$
(54,654,269)
(2,389,924)
(62,617,478)
7,963,209
(57,044,193)
(54,654,269)
115
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
116
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 35. Deed of cross guarantee (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
Investment in subsidiary
Related party receivable
Total assets
Current liabilities
Trade and other payables
Contract liabilities
Lease liabilities
Provisions
Related party payables
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
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2022
$
2021
$
2,930,990
6,719,427
681,192
985,481
11,317,090
39,128
1,107,138
5,766,958
765,465
7,036,109
14,714,798
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
26,031,888
22,750,767
8,073,574
954,719
150,081
2,202,194
3,386,926
14,767,494
3,000,000
990,006
88,303
4,078,309
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
18,845,803
15,753,838
7,186,085
6,996,929
60,427,740
3,802,538
(57,044,193)
59,931,481
1,719,717
(54,654,269)
7,186,085
6,996,929
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 36. Earnings per share
Consolidated
2022
$
2021
$
(Loss)/profit after income tax attributable to the owners of Pureprofile Ltd
(2,164,277)
2,811,156
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
1,089,228,154
660,151,961
-
-
1,672,283
12,990,935
Weighted average number of ordinary shares used in calculating diluted earnings per share
1,089,228,154
674,815,179
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.20)
(0.20)
0.43
0.42
In the current financial year, options and rights have been excluded from the calculation of diluted earnings per share as they
were considered anti-dilutive.
Note 37. Share-based payments
The following share options were granted during the year ended 30 June 2022 and 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.
117
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
118
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 37. Share-based payments (continued)
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On 16 September 2021, 25,437,719 unlisted options were granted to M. Sheppard, a member of the key management
personnel of the company. The award was issued as two tranches. Tranche 1 - Short Term Incentives ('STI') options for
16,958,480 will vest in two tranches: 8,479,240 options will vest on the 12 months anniversary of the grant date (16
September 2022) and 8,479,240 options will vest on the 24 months anniversary of the grant date (16 September 2023).
Tranche 2 - Long Term Incentives ('LTI') options for 8,479,240 will vest in three tranches: 2,826,413 options will vest on the
date following the announcement of the company’s annual audited consolidated results for the year ended 30 June 2022 (1
September 2022), 2,826,413 options will vest on the date following the announcement of the company’s annual audited
consolidated results for the year ended 30 June 2023 (1 September 2023) and 2,826,413 options will vest on the date
following the announcement of the company’s annual audited consolidated results for the year ended 30 June 2024 (1
September 2024). The contractual life of each option is five years.
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On 17 September 2021, 41,433,030 unlisted options were granted to executive team members. The award was issued as
two tranches. Tranche 1 - STI options for 20,716,515 will vest in two tranches: 10,358,258 options will vest on the 12 months
anniversary of the grant date (17 September 2022) and 10,358,258 options will vest on the 24 months anniversary of the
grant date (17 September 2023). Tranche 2 - LTI options for 20,716,515 will vest in three tranches: 6,905,505 options will
vest on the date following the announcement of the company’s annual audited consolidated results for the year ended 30
June 2022 (1 September 2022), 6,905,505 options will vest on the date following the announcement of the company’s annual
audited consolidated results for the year ended 30 June 2023 (1 September 2023) and 6,905,505 options will vest on the
date following the announcement of the company’s annual audited consolidated results for the year ended 30 June 2024 (1
September 2024). The contractual life of each option is five years.
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The following share rights were granted during the year ended 30 June 2022 and 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.
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.
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.
On 3 February 2022, 15,653 share rights were granted to employees. The share rights are exercisable at nil value. The share
rights will vest on 3 February 2023. The contractual life of each share right is five years.
On 9 February 2022, 15,653 share rights were granted to employees. The share rights are exercisable at nil value. The share
rights will vest on 9 February 2023. The contractual life of each share right is five years.
On 21 March 2022, 40,225 share rights were granted to employees. The share rights are exercisable at nil value. The share
rights were vest on 1 April 2022. The contractual life of each share right is five years.
The following performance rights were granted during the year ended 30 June 2022 and 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.
On 1 April 2021, 6,250,000 performance rights were granted to M. Sheppard, a member of the 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.
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 37. Share-based payments (continued)
On 26 October 2021, 10,000,000 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: 3,333,333 rights will vest on
the date following the announcement of the company’s annual audited consolidated results for the year ended 30 June 2022
(1 September 2022), 3,333,333 rights will vest on the date following the announcement of the company’s annual audited
consolidated results for the year ended 30 June 2023 (1 September 2023) and 3,333,334 rights will vest on the date following
the announcement of the company’s annual audited consolidated results for the year ended 30 June 2024 (1 September
2024). The contractual life of each performance right is 5 years.
Share-based payments expense for the financial year was $2,238,811 (2021: $1,141,608).
Share options
Set out below are summaries of options granted by the company:
2022
Grant date
Expiry date
Exercise
price
19/10/2020
29/01/2021
29/01/2021
29/01/2021
01/04/2021
01/04/2021
24/05/2021
16/09/2021
17/09/2021
08/12/2022
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/04/2026
08/12/2022
16/09/2026
17/09/2026
$0.030
$0.020
$0.020
$0.020
$0.020
$0.020
$0.030
$0.027
$0.027
Balance at
the start of
the year
15,000,000
4,930,156
2,000,000
32,867,707
12,626,719
34,023,703
4,000,000
-
-
105,448,285
Granted
Exercised
Forfeited
Balance at
the end of
the year
-
-
-
-
-
-
-
25,437,720
41,433,030
66,870,750
(13,800,000)
-
-
(10,955,902)
(4,208,906)
(9,392,667)
(4,000,000)
-
-
(42,357,475)
1,200,000
-
4,930,156
-
2,000,000
-
21,911,805
-
8,417,813
-
22,501,869
(2,129,167)
-
-
23,922,481
(1,515,239)
(3,956,106)
37,476,924
(7,600,512) 122,361,048
Weighted average exercise price
$0.020
$0.027
$0.024
$0.025
$0.024
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
Set out below are the options that have vested and are exercisable at the end of the financial year:
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
2022
Number
2021
Number
1,200,000
4,930,156
2,000,000
-
15,000,000
4,930,156
2,000,000
4,000,000
8,130,156
25,930,156
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SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
120
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 37. Share-based payments (continued)
The weighted average share price during the financial year was $0.05 (2021: $0.02).
The weighted average remaining contractual life of options outstanding at the end of the financial year was 3.96 years (2021:
4.2 years).
Share rights
Set out below are summaries of share rights granted by the company:
Expiry date
01/04/2026
01/04/2026
01/04/2026
01/04/2026
01/10/2026
03/02/2027
09/02/2027
21/03/2027
Expiry date
01/04/2026
01/04/2026
01/04/2026
01/04/2026
Exercise
price
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
Balance at
the start of
the year
14,000,000
1,750,000
2,453,740
703,942
-
-
-
-
18,907,682
Granted
Exercised
Forfeited
-
-
-
-
285,442
15,653
15,653
40,225
356,973
-
-
(2,453,740)
(473,355)
-
-
-
(40,225)
(2,967,320)
-
-
-
(230,587)
(285,442)
-
-
-
(516,029)
Balance at
the end of
the year
14,000,000
1,750,000
-
-
-
15,653
15,653
-
15,781,306
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:
Expiry date
01/04/2026
01/04/2026
01/04/2026
2022
Number
2021
Number
14,000,000
1,750,000
-
14,000,000
1,750,000
351,971
15,750,000
16,101,971
The weighted average remaining contractual life of share rights outstanding at the end of the financial year was 3.8 years
(2021: 4.8 years).
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Grant date
29/01/2021
29/01/2021
01/04/2021
01/04/2021
01/10/2021
03/02/2022
09/02/2022
21/03/2022
2021
Grant date
29/01/2021
29/01/2021
01/04/2021
01/04/2021
Grant date
29/01/2021
29/01/2021
01/04/2021
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 37. Share-based payments (continued)
Performance rights
Set out below are summaries of performance rights granted under the plan:
-
-
-
-
-
-
-
2,468,750
1,562,500
10,000,000
14,031,250
Balance at
the end of
the year
9,875,000
6,250,000
16,125,000
2022
Grant date
Expiry date
29/01/2021
01/04/2021
26/10/2021
01/04/2026
01/04/2026
26/10/2026
2021
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
9,875,000
6,250,000
-
16,125,000
-
-
10,000,000
10,000,000
(7,406,250)
(4,687,500)
-
(12,093,750)
Grant date
Expiry date
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
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
-
-
-
No performance rights are exercisable at the end of the financial year (2021: nil)
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was 4.2
years (2021: 4.8 years).
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
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value
at grant date
16/09/2021
17/09/2021
16/09/2026
17/09/2026
$0.048
$0.051
$0.027
$0.027
74.00%
75.00%
-
-
0.66%
0.66%
$0.0340
$0.0368
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
Expiry date
01/10/2021
21/03/2022
03/02/2022
09/02/2022
01/10/2026
21/03/2027
03/02/2027
09/02/2027
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value
at grant date
$0.064
$0.057
$0.064
$0.066
$0.000
$0.000
$0.000
$0.000
-
-
-
-
-
-
-
-
-
-
-
-
$0.0613
$0.0570
$0.0639
$0.0639
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
Expiry date
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value
at grant date
26/10/2021
26/10/2026
$0.057
$0.000
-
-
-
$0.0604
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SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
122
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 38. Cash flow information (continued)
Changes in liabilities arising from financing activities
Consolidated
Balance at 1 July 2020
Net cash from/(used in) financing activities
Loans received
Acquisition of leases
Loan forgiveness
Other changes
Balance at 30 June 2021
Net cash used in financing activities
Acquisition of leases
Lease modification
Balance at 30 June 2022
Loans
$
20,000,000
(9,896,878)
3,000,000
-
(8,416,780)
(1,686,342)
Lease
liabilities
$
Total
$
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)
3,000,000
-
-
-
2,112,334
(453,429)
1,175,231
(1,694,051)
5,112,334
(453,429)
1,175,231
(1,694,051)
3,000,000
1,140,085
4,140,085
Note 39. Events after the reporting period
Mr Albert Hitchcock was appointed to the Board of Directors on the 26th July 2022.
No other matter or circumstance has arisen since 30 June 2022 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.
Pureprofile Ltd
Notes to the financial statements
30 June 2022
Note 38. Cash flow information
Reconciliation of (loss)/profit after income tax to net cash from operating activities
(Loss)/profit after income tax expense for the year
(2,164,277)
2,811,156
Consolidated
2022
$
2021
$
Adjustments for:
Depreciation and amortisation
Share-based payments
Consultancy fee paid in share option
Net loss on disposal of non-current assets
Gain from loan forgiveness
Restructuring, acquisition and capital raising costs
Capitalised finance cost
Interest on lease liabilities
Change in operating assets and liabilities:
Increase in trade and other receivables
Increase in contract assets
Increase in prepayments
Increase in trade and other payables
Increase in contract liabilities
Increase in provision for income tax
Increase/(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
3,246,427
2,238,811
-
(247,874)
-
-
-
145,313
3,747,842
1,141,608
8,750
250,065
(8,416,780)
794,142
2,328,565
204,227
(1,350,940)
(9,403)
(65,909)
1,783,294
228,854
3,490
38,108
45,868
(1,983,133)
(286,490)
(259,389)
1,215,604
355,634
26,309
(24,820)
437,677
3,891,762
2,350,967
Consolidated
2022
$
2021
$
1,175,231
-
233,413
5,407,292
1,175,231
5,640,705
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SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
124
Pureprofile Ltd
Directors' declaration
30 June 2022
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 2022
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 35 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.
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On behalf of the directors
___________________________
Andrew Edwards
Non-Executive Chairman
30 August 2022
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
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 2022, 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 2022 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 Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
ACN-130 913 594
www.grantthornton.com.au
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ‘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 Limited 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. Liability limited by a scheme approved under Professional
Standards Legislation.
125
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
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126
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Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Capitalisation of development costs, Note 15
During the year ended 30 June 2022, the Group capitalised
$2,217,326 of costs related to developing its software assets.
These intangible assets are being amortised over their finite
life of between four and five years.
AASB 138 Intangible Assets sets out the specific requirements
to be met to capitalise development costs.
We considered this a key audit matter given the magnitude of
capitalised amounts, the significant judgements involved in
determining which costs may be capitalised, and 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;
• Evaluating management’s assessment of each
project for compliance with the recognition criteria set
out in AASB138, including discussing project plans
with management and project leaders to develop an
understanding of the nature and feasibility of key
projects;
•
Testing a sample of costs capitalised by vouching to
underlying support, including timesheets,
employment contracts and payroll reports, and
assessing whether the expenditure was attributable
to the development of the assets;
• 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
Group’s annual report for the year ended 30 June 2022 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.
Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the 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.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 65 to 74 of the Directors’ report for the year ended 30 June
2022.
In our opinion, the Remuneration Report of Pureprofile Limited, for the year ended 30 June 2022 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, 30 August 2022
127
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
128
Andrew Edwards
Martin Filz
Sue Klose
Tim Hannon
Albert Hitchcock
Lee Tamplin
To be announced
Level 5, 126 Phillip Street
Sydney NSW 2000
263 Riley Street
Surry Hills NSW 2010
Tel: +61 2 9333 9700
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
Pureprofile Ltd
Corporate directory
30 June 2022
Directors
Company secretary
Notice of annual general meeting
Registered office
Principal place of business
Share register
Auditor
Stock exchange listing
Website
Business objectives
Corporate Governance Statement
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Pureprofile Ltd
Shareholder information
30 June 2022
The shareholder information set out below was applicable as at 29 July 2022.
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
47
115
113
826
627
-
0.03
0.09
3.35
96.53
1,728
100.00
Holding less than a marketable
parcel
285
0.13
Equity security holders
-
-
-
-
15
15
-
-
-
-
-
100.00
100.00
-
-
-
-
2
4
6
-
-
-
-
0.11
99.89
100.00
-
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Pureprofile Ltd. shares are listed on the Australian Securities Exchange (ASX code:
PPL)
pureprofile.investorportal.com.au
Pureprofile Ltd. has used cash and cash equivalents held at the time of listing, in a
way consistent with its stated business objectives.
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
Principis Master Fund SPC
J P Morgan Nominees Australia Pty Limited
Appwam Pty Ltd
Mr Christopher Wayne Lonergan
HSBC Custody Nominees (Australia) Limited
Sandhurst Trustees Ltd (Cyan C3G Fund A/C)
DMX Capital Partners Limited
Onmell Pty Ltd (ONM BPSF A/C)
Depofo Pty Ltd (Ordinary A/C)
Mr Mark Heeley
GEMH Pty Ltd
Vadina Pty Limited (Jordan Super Fund A/C)
Saint Chapelle Pty Ltd (Hannon Family A/C)
J & A Reeve Pty Ltd (Reeve Family A/C)
Camden Equity Pty Ltd (Byrne Hybrid Investment A/C)
National Nominees Limited
BNP Paribas Noms Pty Ltd (DRP)
Andrew Edwards
Snowball Asset Management Pty Ltd (Snowball Asset Mgmt A/C)
Mr Paul Augustine Chan (The Chan Family A/C)
Ordinary shares
Number held
% of total
shares
issued
172,148,230
127,230,534
50,000,000
33,000,000
32,471,803
23,970,000
19,951,104
16,600,000
16,500,000
16,232,231
15,036,616
15,000,000
13,478,821
13,108,906
13,090,000
9,981,624
9,311,109
8,862,219
8,276,789
7,500,000
621,749,986
15.55
11.49
4.52
2.98
2.93
2.17
1.80
1.50
1.49
1.47
1.36
1.35
1.22
1.18
1.18
0.90
0.84
0.80
0.75
0.68
56.16
129
SECTION NINE DIRECTOR’S REPORT, FINANCIAL REPORT AND AUDITOR’S REPORT
ANNUAL REPORT 2022
130
Pureprofile Ltd
Shareholder information
30 June 2022
Substantial holders
Substantial holders in the company are set out below:
Principis Master Fund Spc
Jencay Capital Pty Ltd
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.
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Classes of unquoted equity securities
Unlisted Options
Rights
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.
Ordinary shares
Number held
% of total
shares
issued
172,148,230
92,740,765
15.55
8.38
Number of
Holders
Number of
Securities
15
6
127,832,394
29,812,556
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Copyright © 2022 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 29 August 2022. The directors have the power to amend and reissue the financial statements.