ANNUAL
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SECTION ONE
Who we are
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SECTION FOUR
Our growth strategy
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SECTION TWO
The opportunity
02
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SECTION FIVE
Our board of directors
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SECTION THREE
Our year in review
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SECTION SIX
Financial reports
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Table of
contents
For definitions of EBITDA and EBITDA margin, please refer to Section 6 - Financial reports
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SECTION ONE
Who we are
01
As a leading global data and insights
company, we help brands, businesses
and government answer crucial
questions. By securely connecting
these organisations with deeply
profiled audiences, we gather data
that is otherwise inaccessible.
Our proprietary technology platform
plays a key role in this process,
surveying and rewarding millions of
people worldwide for sharing their
opinions, ensuring that the data
collected is both high quality and
highly insightful.
We empower organisations with
the data they need to make more
informed decisions. By providing
deeper connections to their
audiences, we help organisations
understand and respond to their
needs more effectively.
Whether it’s a brand seeking to
understand consumer preferences or
a government body looking to gauge
public opinion, our insights enable
better decision-making and foster
stronger relationships with
target audiences.
Aspiration
Pureprofile insights are
used by every company
in their decision making.
Mission
To reward people for sharing
their thoughts, opinions and
behaviours and provide
valuable, actionable insights
to organisations for better
decision making.
Vision
To deliver more value from
the world’s information,
allowing deeper connections
between organisations and
their audiences.
Our values
Our purpose
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.
WHO WE ARE
About
Pureprofile
‘‘
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WHO WE ARE
Pureprofile at
a glance
We are a global data and insights
company, helping brands,
businesses & government answer
crucial questions
Through our proprietary
technology platform, we survey
and reward millions of people
worldwide for sharing
their opinions
Our goal is to empower
organisations with valuable
data and deeper audience
connections, enabling them to
make more informed decisions
We securely connect
organisations with highly profiled
audiences, gathering data that is
otherwise inaccessible
We are Pureprofile
How we do it
Why we do it
What we do
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WHO WE ARE
Preferences
Habits
Beliefs
Climate change is the biggest
issue that influences her vote
Interested in ethical
health insurance products
Prime candidate for
high-end hybrid cars
Drinks 4
almond lattes a day
Walks her dog
every day
Drives a Lexus Hybrid
Is a vegetarian
Volunteers at a wildlife
conservation centre
Donates 10% of her
salary to charity
Likes high-end
products, eco-products
Reads Frankie magazine
Gets her news from
The New Yorker
Ideal target for Christmas donor
acquisition activity
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Our
advantage
Humans aren’t one dimensional, they’re
complex. We hold the key to understanding the
depth of human behaviour, empowering brands
to truly know their audience
34 years old
Single, no dependants
CMO at a Tier 1
not-for-profit
Lives in Byron Bay
Earns $145k
Data and analytics lie at the core of our business strategy as we
deliver the critical insights businesses need to get ahead. Through
every segment of this strategy we will continue to leverage our core
assets through rigorous commercial applications
Our corporate strategy
Focus on building a stronger global
business, global panel and adding
complementary data sources
through strategic partnerships
01: Global business
03: Data & Insights
02: Technology & AI
Leverage Pureprofile’s
proprietary data
- Managed services
- Audience Builder
- Audience Intelligence
- Insights Builder
Accelerate our Technology & AI solutions
- Client facing solutions
- Internal efficiency
- Platform
G
l
o
b
a
l
B
u
s
i
n
e
s
s
Clear
corporate
growth
strategy
WHO WE ARE
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Data & Insights
Platform
Operations Hub
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UK
Mainland Europe
Australia
New Zealand
USA
India
Malaysia & Indonesia
Philippines
Mainland Europe
Singapore
Our vision is to deliver more value
from the world’s information
We are a truly global company completing
studies in 95 countries in FY24
WHO WE ARE
14 offices globally
798 clients globally
215 staff globally
$48.1m in FY24 full year revenue
$10.4m in annuity revenue
Pureprofile solutions
•
Managed services
•
Audience Builder
•
Audience Intelligence
•
Insights Builder
What we offer
Data is first-party and of the
highest quality
Data is used to deliver answers to
business problems
Clients are provided with
comprehensive market intelligence
Organisations are able to
make informed decisions
with confidence
Proprietary technology delivers
unique solutions
We recruit global
respondents
Providing actionable insights from real people
WHO WE ARE
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At Pureprofile, our unique culture is largely attributed
to our people-first mentality. Led by a CEO and COO
who genuinely put people at the heart of our business,
we’ve created a work environment where everyone
feels highly valued. Regardless of seniority, geographical
location, role, or tenure, everyone’s voice is heard, and
every achievement is celebrated. Our success here is
consistently validated via our biannual staff engagement
surveys. With an impressive 94% participation rate and
a remarkable 86% favourable engagement score - well
above the 73% benchmark for best companies - it’s clear
that our team feels valued and appreciated.
Board & leadership
Our executive team comprises remarkable leaders,
many of whom have vast experience in running
global data and insights businesses with competitors
significantly larger than Pureprofile. They all place a
strong emphasis on people-centric values that guide
their decisions and actions every day. Their shared
characteristics include integrity, respect, innovation,
and compassion, serving as the foundation for their
leadership and inspiring the entire organisation. They
share the belief that results come from providing trust
and empowerment.
With an average tenure of 4.5 years, our executive
leaders bring a wealth of experience and insight to the
table. Those with longer tenures have been instrumental
in reshaping our company culture, drawing from their
deep understanding of our history. The more recent
addition of new executives, brought in by Martin Filz,
our CEO, has further contributed to our business
transformation, injecting fresh perspectives and ideas.
Our new Chair, Micheal Anderson and Non-Executive
Director, Adrian Gonzalez were carefully selected by our
board nominations committee with the endorsement
of our primary shareholders, based on their depth of
experience on ASX boards and the market research
industry. Michael brings a wealth of knowledge as an
ASX Chair for rapidly growing businesses. It is evident
Pureprofile’s current board shares our values that put
people first and the results will follow.
Workforce expansion
In FY24, to support our growth plan, we enhanced our
workforce by:
•
Welcoming new sales professionals based in
Portugal and Germany, growing our team in the
flourishing EMEA region to support our global
expansion efforts.
•
Increasing our headcount to support our US
operations, leading to the addition of new team
members in both sales and operations.
•
Welcoming and transitioning 17 team members as
a result of the i-Link acquisition - across Australia,
India, Philippines, Malaysia and Indonesia.
Employee experience
Communication holds paramount importance for us
when it comes to cultivating a favourable employee
experience, especially as we extend our reach across
12 markets and operate predominantly with a remote/
hybrid workforce.
The findings from our recent engagement survey
underscore our strength in communication and
connection:
Our people
and culture
Michelle Mowle
Global Head of Talent and Culture
WHO WE ARE
•
95% would recommend Pureprofile as a great
place to work
•
93% know what they need to do to be successful
in their role
•
93% are proud to work for Pureprofile
•
91% say Pureprofile motivates them to go beyond
what they would do in a similar role elsewhere
Additionally, we have focussed on building strong
connections within our business. Some highlights include:
•
A remarkable 80% of our new hires come through
referrals, indicating a strong connection to our
workplace culture before joining.
•
Workplace Reputation: through dedicated efforts
in shaping our culture, Pureprofile is recognised
within the industry for creating a sought-after work
environment and attracts values aligned individuals
as we grow our team globally.
•
We prioritise personal and professional growth
through internal promotions, providing LinkedIn
Learning licences, mentoring, coaching, funding for
networking events, industry memberships, financial
study assistance, and bespoke training sessions as
needed.
Measurable outcomes
When it comes to evaluating our people metrics, three
key indicators take precedence:
•
Retention: In FY24, our retention rate stood at an
impressive 94%, excluding involuntary turnover.
Notably, our sales team boasts remarkable longevity,
with members who are highly coveted by industry
competitors but opt to remain with us due to their
strong affinity for our team culture.
•
Engagement: Our engagement metrics, vital for
understanding team sentiment, are consistently
measured using an independent provider, Culture
Amp. With overall scores ranging between 82%
to 86% since 2021, well above what Culture Amp
publishes as ‘high engagement being 73%’, we ensure
that our team’s participation is confidential and that
feedback is meticulously analysed to pinpoint areas
for improvement.
•
Referrals: A testament to our positive workplace
environment is the significant portion of new hires
sourced through referrals (48%), reflecting the
satisfaction and advocacy of our existing team
members.
•
Additionally, our Glassdoor page feedback and
ratings: a commendable 4.6* rating, 97% would refer
to a friend and 100% approve of the CEO.
•
We were delighted to be ranked in the top 50 for
Inspiring Workplaces UK and Ireland, top 5 for
Inspiring Workplaces Asia and top 10 for Inspiring
Workplaces Australasia.
Looking back on our journey, we’re filled with gratitude
for our exceptional team. Their dedication, creativity, and
steadfast commitment have propelled us to success. Each
member has made an invaluable contribution, deserving
of recognition and remain highly motivated to set us up
for success in FY25 and beyond.
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WHO WE ARE
Employee spotlights
Sugu
Supramaniam
Role:
Senior Product Manager
Length of time at company:
3 years, 5 months
What’s the Pureprofile difference?
So, what IS the Pureprofile difference? To me, it’s
the undeniable camaraderie, a ‘no problem is ever
too big to solve’ attitude, as well as a laser-focused
approach to achieving our goals. This combination
is what sets us apart and makes us special
as Pureprofilers!
Ciara
Toner
Role:
Senior Client Development Manager
Length of time at company:
4 years, 1 month
Divya
Palla
Role:
Team Leader, Member Experience &
Quality Assurance
Length of time at company:
7 years, 3 months
Maqsood
Lulaniya
Role:
Global Head of Research Technology
Length of time at company:
13 years, 7 months
Augustin
Ong
Role:
Team Leader, Data & Insights
Length of time at company:
3 years, 2 months
Peta
Kernan
Role:
Senior Account Director
Length of time at company:
7 years, 8 months
What’s the Pureprofile difference?
Pureprofile’s culture is what makes it special. The
focus on people is crucial to the company’s success.
Everyone is supportive and kind, creating a friendly
environment where employees thrive. This boosts
both happiness and productivity, as everyone feels
valued and motivated to give their best.
What’s the Pureprofile difference?
Our biggest difference is our Pureprofile dream
team, a diverse, global group! Our collaborative
spirit creates a positive, caring environment where
knowledge sharing thrives. We deliver exceptional
projects, exceeding client expectations. Despite
fast-paced growth, I’m proud we’ve retained the
Pureprofile spirit.
What’s the Pureprofile difference?
When you invest in your people, they invest back
a hundredfold - that to me is the Pureprofile
difference. Our pursuit of innovation and customer-
centric approach give us our unique identity. It’s
the people and their values that make us industry
leaders, I’m honoured to be a part of that.
What’s the Pureprofile difference?
I believe the Pureprofile difference is our ‘one
team’ mentality. Despite being a global company
separated by geography or function, our team
works as one cohesive unit. Trust and care
encompass everything we do - which is passed from
our exec team to staff, and in turn to our clients,
stakeholders, and our work.
What’s the Pureprofile difference?
To me, Pureprofile is defined by its people.
Different departments come together to keep
us ahead in a changing market. In an inclusive
environment that embraces diversity, we go above
& beyond to collaborate with clients so they get
the most out of their data. Our commitment to
excellence is evident in every project.
These team member interviews showcase how our
culture drives industry-leading retention rates
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People and
culture metrics
Group diversity
Employee engagement
Key workforce metrics
WHO WE ARE
51% Male
48% Female
1% Non-binary
40% Male
60% Female
21% under 30
59% aged 30 - 40
20% over 40
19 different nationalities
across the group
43 ethnic backgrounds across
the group
4.5 years average tenure
20 internal promotions
5.8% voluntary turnover
48% employee referrals
Gender
Age diversity
Executive team
gender diversity
Nationality & Ethnicity
95% would recommend Pureprofile as a great place to work
93% know what they need to do to be successful in their role
93% are proud to work for Pureprofile
91% say Pureprofile motivates them to go beyond what they
would do in a similar role elsewhere
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workplaces
The Inspiring Workplaces Awards celebrate
organisations that prioritise employee
experience and workplace culture.
These awards recognise companies that
foster positive environments, encourage
innovation, and support the growth and
well-being of their employees.
We are incredibly proud to have been
nominated across three regions and to
be placed in the Top 10 in Australasia,
Top 5 in Asia, and Top 50 in the UK &
Ireland. It’s a true testament to our
commitment to creating an exceptional
workplace for our people.
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WHO WE ARE
SECTION TWO
The opportunity
02
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THE OPPORTUNITY
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Total Addressable
Market (TAM)
Since 2019 there has been notable net
growth in the US
Source: ESOMAR Global Market Research 2023
Source: ESOMAR Global Market Research 2023
Growth trends in both Asia Pacific and Europe
provide exciting opportunities for Pureprofile
to grow its presence in these regions
Size of global insights industry
Top 10 fastest growing markets in Asia Pacific
Net growth rates in 2022 (%)
Top 10 fastest growing markets in Europe
Net growth rates in 2022 (%)
Only countries that participated in ESOMAR’s Global Survey and with a turnover above US$ 10 million
Global insight net growth rates 2022 ( adjusted for inflation )
US
Asia Pacific
Rest of Americas
Africa & Middle East
World
Europe
-6.0%
-2.8%
3.5%
2.0%
5.9%
0.9%
Norway
Ireland
Netherlands
Bulgaria
Slovenia
United Kingdom
Portugal
Austria
11.6%
6.1%
3.8%
2.9%
2.4%
2.2%
1.8%
-2.1%
-2.1%
Lithuania
Turnover and net growth United States
Turnover US$m
Net growth (%)
46,245
53,715
4.2%
Improved estimates
Expected
2.5%
11.4%
5.8%
2019
2020
2021
2022
62,637
71,572
77,849
2023
4.1%
Established
Reporting
Data Analytics (Tech-enabled)
5.4
9.8
15.3
23.3
4.7
7.2
31.2
40.7
41.7
46.7
47.1
13.9
35.2
44.0
50.1
13.2
24.9
27.6
30.8
1990
1995
2000
2005
2010
2015
2020
2021
2022
Kazakhstan
Thailand
India
Vietnam
New Zealand
Indonesia
Malaysia
Hong Kong
Bangladesh
28.6%
10.3%
10.2%
7.6%
7.4%
6.8%
4.9%
4.0%
3.3%
0.2%
Japan
Global insights industry turnover, 2022
5 largest markets - total insights industry
Rest (declared) $16,500
13%
Rest (undeclared) $22,055
17%
USA $71,572
Global insights industry
US$ 129,241 million
55%
China $2,771
India $2,853
United Kingdom $11,055
2%
2%
9%
Australia $2,435
2%
US$m
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As a market leader in ANZ, the next phase of our expansion is to
replicate the same success in the US and UK. These markets are
currently 30 times and 5 times larger than Australia, respectively
THE OPPORTUNITY
Insights in action -
Financial services sector
Our studies have made a tangible impact, helping institutions
deliver growth, innovation and knowledge
The IRCI is an annual cross-sectional survey of over 2,100 everyday Australians,
conducted by Pureprofile. The index is a single rating out of 100 designed to
reflect four key aspects of Australian attitudes towards cryptocurrency: awareness,
adoption, trust and confidence
The research was carried out on behalf of Oxford Risk by Pureprofile who
interviewed 210 wealth managers in France, Germany, Netherlands, Spain, Italy,
Switzerland and the Nordics responsible for €3.2 trillion ($3.4 trillion) assets under
management during July 2023
CSC, in partnership with Pureprofile, surveyed 400 (between Dec 2023-Jan 2024)
C-suite level executives and similarly senior professionals working in private equity,
private debt, real estate, and infrastructure. Respondents were equally split between
North America, APAC, and the UK and Europe
The research was conducted for Tresor Gold among 100 metals and mining investors
working for sovereign wealth funds, pension funds, private equity funds, venture capital
funds, and family offices responsible for $307.5 billion assets under management in
Canada, Australia, the US, UK, UAE, France, Germany, Switzerland, Qatar, and Saudi
Arabia. It was carried out by independent research agency Pureprofile
THE OPPORTUNITY
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Our NPS score for FY24
was 77 which places
Pureprofile in the top
quartile* of organisations
for client loyalty **
*
Top quartile NPS is defined as 72 and above.
**
Our NPS score reflects our loyal clients who continually work with Pureprofile.
Very responsive personal service from
all the team involved at Pureprofile.
We really appreciated your updates
and that you strived to complete the
project ahead of schedule.
- Enhance Research
‘‘
We’ve collaborated with the Pureprofile
team over several years now and continue
to return as they’ve proven to be the best.
Not only do they beat other suppliers
in terms of panel quality, but they also
provide a highly professional service with
invaluable advice, all while delivering
excellent value for money.
- Teeside University
‘‘
‘‘
I really appreciated the support, the
insight on the survey design, the sensible
recommendations and the amazing
turnaround time - everything exceeded
our expectations. I am incredibly
impressed, and would love to work with
Pureprofile many times again!
- RMIT University
‘‘
Thank you very much for the tremendous
effort and what an amazing team! Your
solution program is fantastic, especially
the handling of the scale items was
beautifully projected.
- Samsung Korea
Why clients
work with us
‘‘
Always a professional team, always
communicate progress and overall I
am very satisfied with the quality of the
work. The team managed to turn around
an urgent request in record time, which
was really appreciated.
- Ampol
We set Pureprofile a real challenge of
reaching a highly niche group of consumers
for a global research project. The speed of
response and data quality we received was
first-rate. Pureprofile was able to rise to the
challenge and achieve the difficult targets
set within our fieldwork timelines!
- 7th Sense Research
‘‘
THE OPPORTUNITY
Who uses our
products and services
The brands below all use market
research as part of their business
decision-making processes
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We were thrilled to win the inaugural
Research Partner of the Year award at The
Research Society of Australia’s end of
year ceremony.
This award recognises organisations
committed to excellence in research,
advancing the profession and in employee
relations. The accolade acknowledges those
businesses that provide products and
services to research agencies and clients to
help them deliver effective research.
THE OPPORTUNITY
of the year
Pureprofile was honoured with this
award for clearly demonstrating a history
of delivering quality research products
and services, innovation and fresh
thinking, employee focus, as well as
making a contribution to the profession &
community and our broader society.
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SECTION THREE
Our year in review
03
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OUR YEAR IN REVIEW
FY24 growth highlights
Financial
Panel
Technology
Business
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Maiden Net Profit
$0.1m after tax
Launched new proprietary panels in
Europe and Indonesia
91% of revenue from repeat clients
5 new AI tools released
Revenue
$48.1m up to 10% on pcp
Total surveys completed
19% up on FY23
Launched The Hub
Specialised applications for partners and
internal resources
Completed ISO 27001
Information Security Management accreditation
Multi country projects
18% up on FY23
Cash at Bank
$5.2m
Active group panel members
13% up on FY23
New offices in
Germany Portugal
and
Tim Potter
Managing Director - UK/EU/US
David Wotton
Senior Product Manager
In FY24, Pureprofile has achieved remarkable
growth across all our key regions, despite continued
global challenges affecting the market research
industry. This success stems from having a
fantastic team in place and continually adapting
our offerings to ensure we are delivering the best
quality respondents.
US opportunity
Our commitment to innovation and quality is
particularly evident in the US market. While we have
experienced notable growth with key clients in the
region, this is just the beginning of our journey. In
FY25, we anticipate substantial expansion in the
US by continuing to invest in people and data and
through further enhancements of our offerings.
The competitive landscape presents unique
opportunities to differentiate ourselves and capture
greater market share.
AI efficiencies
The global market research landscape is evolving
rapidly, driven by shifting consumer behaviours and
technological disruptions. Pureprofile has navigated
these complexities by staying agile and continually
adapting to our clients’ evolving needs. Our use of AI
technology has been crucial in enabling us to deliver
faster outcomes for our clients and enhancing data
accuracy.
Audience Builder growth
Our Audience Builder panels demonstrate our
commitment to quality and innovation. By adopting
an invite-only approach, we ensure that the
respondents in our panels are highly relevant and
valuable to our clients. This approach allows us to
quickly build panels at scale, improves data quality
and enhances research effectiveness - providing
deeper insights for better decision-making. Our
clients benefit from more accurate and actionable
insights, ultimately driving better business outcomes.
The future
In FY25, a key focus will be to continue to expand our
reach and capabilities in the UK and US markets. We
will achieve growth in these regions by continuing to
be client-centric and delivering unparalleled value
and quality to our clients.
The strength of Pureprofile lies in our exceptional
team. Our employees bring a wealth of experience
and knowledge to the table, and their commitment
to delivering outstanding results for our clients is
unwavering. We have invested in our team’s growth
and development, ensuring they are equipped
with the latest tools and knowledge to excel. This
investment translates into superior service for our
clients and contributes to our overall growth and
success.
Overall, we anticipate continued growth and
success as we build on the solid foundation we have
established. Our strategic initiatives, combined with
our team’s dedication and expertise, position us well
to seize the opportunities ahead.
Finally, I would like to extend our heartfelt thanks to
our clients for their trust in making Pureprofile their
preferred partner. This support and confidence in
our services have been instrumental in our growth
and success, and we look forward to continuing to
deliver excellence.
Harnessing the exponential power of AI
At Pureprofile, we’re riding the wave of AI’s
exponential growth, witnessing firsthand how Large
Language Models (LLMs) are outpacing Moore’s Law.
GPU compute power is doubling approximately every
six months, a pace that’s reshaping our industry. The
emergence of models like GPT-4, Claude 3.5 Sonnet,
and the anticipated releases of OpenAI’s Sora which
has been presented in showing outrageous ability to
generate video from text, along with GPT-5 validate
our earlier predictions about AI’s transformative
potential. We’re not just observers in this AI
revolution; we’re active participants, leveraging these
advancements to enhance our capabilities and deliver
unprecedented value to our clients.
Embracing AI for competitive advantage
Contrary to fears of AI-induced job losses, we’ve
harnessed AI to augment our team’s capabilities,
opening doors to novel roles and enhancing job
stability. Our journey with AI integration is continuous
- emphasising value-driven implementation,
consistent monitoring, and data-informed
decision-making.
Key achievements:
1. Revolutionising open-ended coding:
We’ve successfully integrated LLMs, traditional
machine learning, and NLP sentiment analysis to
automate much of our open-ended coding process.
Our expert coders now have the tools to automate
existing codeframe studies rapidly while maintaining
our high-quality standards and customisation
capabilities. Our next phase, currently in beta testing,
involves automated clustering of text embeddings to
generate new codeframes. This innovation promises
to make all open-ended questions cost-effective,
accurate, and fast, dramatically expanding the scope
of what our clients can achieve within their budgets.
2. Breaking language barriers:
After a year of rigorously testing our tool against
human translations, we’ve achieved unparalleled
accuracy for multi-language studies. This
breakthrough significantly reduces costs and
empowers our clients to expand their research into
global markets previously out of reach. Our platform-
agnostic solution can translate into any script and
accurately back-translate open-ended responses for
English coding.
3. Enhancing survey quality and security:
We’ve developed an LLM-based system to check for
response accuracy and attentiveness in open-ended
questions. With prototype testing complete, we’re
poised for a staggered rollout in the coming months,
further solidifying our commitment to data integrity.
4. Going back to MR basics with OE probing:
We have integrated the ability to return to an MR
interviewing 101 which disappeared in online surveys.
The ability to probe OE responses without prompting
or biasing respondents, but in order to add depth
and greater understanding to OE responses without
fatiguing or annoying respondents.
The evolution of market research
The journey we embarked on last year has led us
to this critical juncture. The metaphorical lily pad
of AI in market research has grown exponentially,
covering vast areas of our industry pond. We’re at
the forefront of this growth, leveraging AI to redefine
our operations, fuel our efficiency, and bolster our
performance.
By nurturing an environment of active innovation and
agile development, we’re ensuring a smooth transition
to AI-centric operations that benefit both our team
and our clients.
Embracing AI at Pureprofile is about harnessing the
digital revolution. As we ready ourselves to leap into
the next phase of AI-driven market research, we’re
excited to unlock the boundless potential AI offers.
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AI & innovation
The next chapter
Growth
opportunities
Pureprofile in
the news
In FY24, we saw 880 individual feature articles
and press mentions published across multiple
countries in various media formats
This result showcases our reputation as leading
experts in the industry and demonstrates that the
world is truly taking notice of our impact
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SECTION FOUR
Our growth strategy
04
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Pureprofile’s growth journey
FY 2021
FY 2022 - FY 2024
FY 2025 - FY 2027
FY 2021
• Restructured group operations
• Unprofitable business units
divested
• Replicated successful Australian
business unit in markets outside
of Australia
• Increase revenues and margin by providing end
to end solutions directly to clients
• Continue to invest in global growth paticularly in
the UK & US
• Build on integrated suite of products, services
and tools
• Establish technology partnerships to accelerate
client innovation
• Utilise AI to deliver client solutions and
internal efficiency
• Innovate through technology development
• Identify/execute acquisition opportunities
that can help accelerate growth
• Grow Audience Builder partners
• Strengthened balance sheet
with a capital raise
• Focused on global team expansion
• Developed global processes
• Re-engineered core technology
• Drove efficiency and improved
product profitability
• Developed highly motivated
organisational culture with a clear
goal to enhance shareholder value
and employee experience
• Refreshed executive team
• Completed debt to equity swap
to provide the foundation to
deliver on growth ambitions
Company restructure
Invest in people, panels & tech
Accelerate global growth
Pureprofile’s above-market growth is driven by our extensive
panel reach, innovative technology, and client-focused
approach - all made possible by our highly engaged and
talented team
This is the formula that enables us to consistently outperform
our competition
OUR GROWTH STRATEGY
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Strategic
priorities
year targets
3
We are diligently tracking our progress while developing
comprehensive growth plans to ensure continued
success and expansion
•
3 year CAGR revenue up 23%
•
600 to 800 clients in 3 years
•
130 to 215 team members
•
i-Link acquisition
•
5 to 12 countries in 3 years
•
Rest of World revenue share up
to 43% over 3 years
•
Delivered insights in over 90
countries
•
FY24 NPAT positive
•
3 year EBITDA up from $2.7m
to $4.4m
•
3 year net operating cashflow
up 49%
•
Industry leading tools and tech
•
91% repeat clients
•
Highest data quality
•
Focus on UK and US business
•
Continue to invest for growth
outside ANZ
•
Maintain leading position in ANZ;
increase spend per client
•
Invest for revenue growth
•
Focus on UK and US business
•
Continue to invest for growth
outside ANZ
•
ANZ maintain leading position,
increase spend per client
•
Invest for revenue growth
•
Build on maiden NPAT profitability
•
Increase revenues
•
Increase operating leverage
•
Improve productivity
•
Innovation for our clients and teams
•
Customer led solutions
•
Deliver clear strategic vision
•
Employer of choice
Strategic
priorities
How we’re tracking
FY25 growth plans
Growth
company
Global
company
Profitable
company
Industry
trailblazer
Global
Profitable
Industry
trailblazer
Growth
OUR GROWTH STRATEGY
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OUR GROWTH STRATEGY
The data and insights industry is undergoing
a transformative phase characterized by rapid
technological evolution, shifting consumer
behaviors, and evolving regulatory landscapes.
As artificial intelligence (AI) becomes increasingly
central to insights methodologies, the opportunities
for Pureprofile (and others) as well as insights
professionals are profound. This article synthesizes
recent findings and discussions within the industry,
highlighting five major themes, takeaways, and their
potential impact on the future of Pureprofile.
1. Data quality and integrity
One of the most critical challenges facing the market
research industry is ensuring data quality. Recent
studies reveal that many sample sources commonly
used can produce misleading results, particularly
among young and various ethnically diverse
demographics. This situation demands heightened
scrutiny in research design and implementation to
ensure that collected data truly reflects consumer
sentiments and behaviors.
Opportunities for Pureprofile:
Online panel providers must prioritize rigorous
validation methods to ensure the reliability of
their panels, and Pureprofile is far ahead of their
competitors on that front. This includes implementing
more comprehensive pre-screening processes and
employing advanced technologies to mitigate issues
like fraudulent responses and sampling biases. By
adopting these strategies, Pureprofile enhances the
integrity of their datasets, fostering greater trust
among buyers and establishing a firm foundation for
being a leader in supplying access to validated data for
a variety of use cases, including AI training sets.
2. The role of AI in enhancing
market research
AI continues to reshape how insights work is
conducted, with advancements in data analysis,
predictive analytics, and insight generation. The
integration of AI-driven tools allows for faster,
more efficient analysis of large datasets, enabling
researchers to extract nuanced insights from a variety
of data types that inform strategic decision-making.
For instance, tools that utilize synthetic data promise
to enhance research methodologies while ensuring
compliance with privacy regulations.
Opportunities for Pureprofile:
Whilst clearly a disruptor for all industries, AI
technologies also presents an opportunity for
Pureprofile to automate data collection, streamline
processes, and improve response accuracy. By
leveraging AI for data analysis and reporting,
Pureprofile can offer clients more robust and
actionable insights while minimizing the time and
costs typically associated with traditional methods.
3. Shifts in consumer behaviour
Current consumer behaviors reflect growing
skepticism towards traditional data collection
methods and feedback systems. For example, young
populations, especially Gen Z, are increasingly
using platforms like Pinterest as search engines,
reshaping how brands reach and engage with their
audiences. Furthermore, studies show that many
teens are becoming more aware of the implications of
smartphone use, indicating a shift in attitudes toward
technology and media consumption.
Leonard F. Murphy
Thought Leader, Advisor, Global Commentator
To engage with consumers to get vital data to drive
the economy, the onus is on insights professionals to
engage with consumers when, where and how they
want to engage.
Opportunities for Pureprofile:
Pureprofile is adapting to these changing consumer
dynamics. This involves not only leveraging diverse
data sources but also exploring innovative methods
of engagement that resonate with changing
audiences. By adapting to their preferences and
behaviors, Pureprofile is enhancing participation
rates and gathering richer insights.
4. Ethical considerations in AI Adoption
The ethical implications of AI in insights generation
are rapidly coming to the forefront. With legislative
changes, such as the recent ban on noncompete
agreements and the push for consumer protection
laws regarding AI usage, insights firms need to
navigate these challenges carefully. The emergence of
regulations that promote transparency in generative
AI applications signifies an industry shift
towards accountability.
Opportunities for Pureprofile:
Pureprofile is working to ensure that their AI
applications are not only effective but also
transparent and ethical. This includes implementing
clear data usage policies, obtaining informed consent
from participants, and emphasizing responsible
practices in AI-driven methodologies.
5. Corporate partnerships: innovation
and capability building
Corporate partnerships are becoming crucial as firms
strive to enhance their data capabilities and expand
their service offerings. Noteworthy collaborations
are announced seemingly daily at breakneck speed
that demonstrate the industry’s movement towards
creating all-in-one data-driven insights solutions that
promise to deliver high-quality data efficiently.
Opportunities for Pureprofile:
Pureprofile’s strong history of participation in
strategic partnerships enhances their competitive
edge by integrating new technologies and expanding
their research offerings. Embracing collaboration
leads to the development of innovative products and
services that fulfill the diverse needs of the insights
and analytics landscape.
Conclusion
The data and insights industry stands at a critical
juncture. As Pureprofile navigates the complexities
of data quality, AI integration, evolving consumer
preferences, and ethical considerations, the
opportunities for growth and innovation are
abundant. By investing in robust methodologies,
embracing technology, and prioritizing ethical
practices, they are enhancing their value proposition
and contributing to a more informed, responsive
overall industry environment.
As we look ahead, it is clear that adaptation and
resilience will be essential for success in this rapidly
changing landscape, traits the Pureprofile team
possess in abundance. The time is now for the
company to align their strategies with these emerging
trends and forge a path toward a more insightful
future. Fortunately, in my view of the industry and
the various companies in it. Pureprofile is well along
that path.
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Emerging trends and challenges
in market research
05
SECTION FIVE
Our board of directors
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Dear fellow shareholders,
We are delighted to present Pureprofile’s Annual Report for the
financial year 2024, ending what has been another exciting year
of growth. Notably, while we continued our capital investments to
drive our long-term growth strategy, we maintained a disciplined
approach that resulted in a maiden net profit after tax of $0.1
million. It is pleasing to see that our products and service quality
continues to resonate for our nearly 800 clients, with 91% of
revenue coming from repeat client business.
We expanded our global presence by opening two new offices in
Portugal and Germany, bringing our total to 14 offices worldwide.
Moreover, we continued to develop and deploy new technologies
utilising AI tools where relevant to enhance operational efficiencies
and create new revenue streams.
Post year end, we announced two new Audience Builder
partnerships, including Sprive in the UK and Horizon Research in
New Zealand. In addition, we announced the acquisition of i-Link
Research solutions in Australia. These developments will support
growth by further expanding and diversifying our panels.
Board refresh continues
The company is committed to continuously reviewing and
enhancing the Board’s capabilities to ensure it remains at the
forefront of industry, especially in the face of technological
disruptions impacting industry dynamics. To this end, Michael
Anderson, an accomplished Chair and Non-Executive Director with
a notable track record in guiding growth organisations through
intense competition and disruption, was appointed as Non-
Executive Chair in May 2024.
Earlier in the year, Mark Heeley and, more recently, Adrian
Gonzalez joined the Board as Non-Executive Directors. Both bring
strong leadership skills and a deep understanding of our industry,
technology, and innovation.
It is encouraging to see the Board already collaborating effectively
with the leadership team to formulate a strategy for the company’s
future success.
Operating achievements
Our fourth consecutive year of double-digit revenue growth, since
recapitalising the business in 2020 is a testament to our team and
products, particularly given the challenging trading conditions
both domestically and internationally. Our world-class service and
the quality of our data were key factors in driving a 10% increase
in group revenue to $48.1 million. Strong performances in the
UK, US, and India contributed to a 28% growth in our Rest of
World business, which now represents 43% of our total revenues.
Additionally, the growing client adoption of our Platform products
resulted in an 88% boost in Platform revenue.
Chair &
CEO’s letter
Martin Filz
Managing Director and CEO
Our disciplined approach to targeting profits while
investing for growth delivered an EBITDA of $4.4 million
and a maiden net profit after tax of $0.1 million. Strong
net cash generation led to a year-end cash balance
increase of $0.5 million, bringing the total to $5.2 million.
We also began amortising our new debt facility with one
of Australia’s Big 4 banks, which now stands at
$2.9 million.
Over the past three years, our company has achieved
impressive internally funded growth, with a revenue
CAGR of 23% and an EBITDA CAGR of 18%.
New Audience Builder partnerships
During the year we focused our efforts on integrating and
maximising the opportunities from two partnership deals
that were launched in May and June 2023, with ShopBack
in Australia, and Prograd in the UK.
Since year-end we have announced two new
partnerships. The first with New Zealand-based research
company, Horizon Research Limited. Overlaying
Pureprofile’s cutting-edge Audience Builder technology
with Horizon Research Limited’s strong and long-standing
panel offering. The partnership will allow businesses
to survey two of Horizon’s consumer insights panels;
one representative of the broader New Zealand adult
population and a second comprised exclusively of Māori.
In late July, we partnered with UK-based mortgage
assistance app Sprive to offer survey respondents the
opportunity to earn cashback towards their mortgages.
The integration of the Audience Builder tool into the
Sprive app allows users to earn cash rewards in exchange
for participation in surveys that capture the behaviours,
sentiments and decisions of mortgage holders.
Acquisition of i-Link
In June, we announced the acquisition of i-Link Research
Solutions Pty Ltd (“i-Link”) for $1.25 million, which was
completed in early July 2024. Established in 2001, i-Link
is a leading independent online field and data collection
company based in Sydney. In FY24, i-Link generated
approximately $2.7 million in revenue and conducted
over 1 million surveys for its clients.
The acquisition included a talented and experienced
team of 17 professionals based in Sydney, the Philippines,
India, and Malaysia. Additionally, it encompasses
a portfolio of highly engaged panellists (LiveTribe),
advanced technology platforms, unique software, and
relationships with over 50 clients.
Technology development
Our focus has consistently been on developing and
adopting new technologies to enhance client solutions
and improve internal operational efficiencies. Over the
past year, we introduced a suite of new AI solutions
designed to increase scalability in certain areas, reduce
costs in others, and elevate the overall client experience.
Looking ahead, as we continue to explore AI and
technology solutions to harness rich data for model
development, we will leverage these advancements to
open up new revenue streams.
Awards
We view nominations and, especially, awards
as a testament to the passion, enthusiasm, and
professionalism of our efforts. In November last year we
were honored to receive the inaugural Research Partner
of the Year award from the Research Society. Additionally,
in May and June of this year, we were delighted to be
recognised as one of the Top 50 Inspiring Workplaces
in the UK and to achieve 4th place at the Inspiring
Workplaces Awards in Asia. More recently, we were
named in the Top 10 in Australasia.
Strategy and outlook
As we look ahead to the coming year, our key priorities
will be to drive profitable growth, building on our
foundational FY24 NPAT. We will continue to be a growth
company expanding top-line revenue through a strategic
investment approach. We will focus on successfully
integrating the i-Link business, and strengthening our UK
commercial team while supporting our newly established
Portuguese and German operations. Additionally, we
will explore and capitalise on growth opportunities
in Australia and continue to advance technological
innovations to foster scalable growth and generate new
revenue streams.
Acknowledgements
We extend our deepest appreciation to our clients,
suppliers, team members, and shareholders for their
unwavering support and trust. The foundations we have
laid will empower Pureprofile to build on its achievements
and drive sustainable global growth in the years to come.
We are confident in the long-term prospects for our
great company and look forward to continued success.
OUR BOARD OF DIRECTORS
OUR BOARD OF DIRECTORS
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Michael Anderson
Non-Executive Chair
OUR BOARD OF DIRECTORS
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Michael is an accomplished Chair and Non-Executive
Director with a distinguished career in leading media
organisations through periods of intense competition and
disruption.
As CEO of MediaWorks Group from 2016 to 2020, Michael
spearheaded the integration of QMS Outdoor, establishing
New Zealand’s sole Radio/Outdoor business. He also
facilitated the sale of MediaWorks’ TV division to Discovery.
Michael’s board experience is extensive. As the Non-
Executive Chairman of oOh! Media, he prepared the
company for a successful IPO, transforming it into a leading
out-of-home media business in Australia and New Zealand.
During his tenure at Fairfax Media (Non-Executive Director,
2010-2016), he helped develop strategies that transformed
the newsroom to a digital-first approach, reduced debt,
and expanded new ventures like Domain and Stan.
Earlier in his career, Michael was with the Austereo Group
for a total of 18 years, including 7 years as CEO.
Michael has also previously held roles as Non-Executive
Chairman at Oztam Pty Ltd (2010-2017), Non-Executive
Director at Lux Group (2016-2017) and Villa Maria Estate
(2019-2021). He is currently a Non-Executive Director at
Flooring xtra and the Black Dog Institute Foundation.
Michael holds a Bachelor of Political Science from
La Trobe University.
Michael Anderson
Non-Executive Chair
Elizabeth (Liz) Smith is an experienced Non-Executive
Director and Chair of Audit and Risk. Her executive career
includes Corporate Finance Partner roles at William Buck
and Grant Thornton, as well as audit experience at
Ernst & Young.
Liz has strong skills in finance and accounting, strategy,
M&A, risk and governance and extensive experience
advising businesses with strong growth aspirations. She
has worked across a range of industries and for businesses
ranging from small privately owned companies to large ASX
listed entities.
Liz is on the Board of the Australian Red Cross and on
Nuchev (ASX: NUC). Liz holds a Bachelor of Commerce from
the University of Melbourne and a Masters of Business
Administration from La Trobe University.
She is a Fellow of Chartered Accountants Australia and
New Zealand, a Fellow of the Financial Services Institute of
Australasia, a Fellow of the Governance Institute and is a
graduate of the Australian Institute of Company Directors.
Elizabeth Smith
Non-Executive Director
Mark Heeley is a highly accomplished executive with a
wealth of experience in building and fostering businesses in
the media, marketing, software, consumer intelligence and
social media management spaces. Between 1990 and 2002,
Mark founded and was joint CEO of Claydon Heeley,
a London based, direct marketing agency.
In the early 2000’s, he became an advisor and early-stage
investor in media and technology businesses, taking an
active role on the boards of investee companies. He was
appointed Chairman of Improveline, a UK based start-up
providing property related services to the insurance
industry and a Non-Executive Director of Hometrack, a
digital business providing automated valuations, risk and
insights to the property industry.
More recently, Mark was an early investor and Board
member of Brandwatch, serving as Chairman for 12 years.
Brandwatch grew rapidly from a five-person start-up to an
international market leader in consumer research, with
1000+ people & offices in seven countries. The Company
was acquired by private equity firm Platinum in 2021 for
$450m USD.
Mark Heeley holds a Bachelor degree from Durham
University, United Kingdom and resides in Sydney, Australia.
Mark Heeley
Non-Executive Director
Adrian is a seasoned growth leader known for transforming
businesses and driving sales growth, profitability,
and innovation.
As CEO of Kantar Insights APAC (2016-2021), Adrian led
the world’s foremost brand consultancy and data analytics
company, overseeing 2,000 people across 12 countries. He
executed large-scale structural, digital and cultural change
programs, appointed new country leaders and enhanced the
client service model.
Adrian co-founded Millward Brown in Australia in 1994,
expanding the business regionally to become a major player in
brand, media and communication optimisation across APAC.
Upon the Company becoming part of the WPP Group, he led
significant acquisitions in China, Korea, and New Zealand and
formed strategic joint ventures in India, Japan, and Vietnam.
Adrian’s previous management board roles have included
Kantar Insights, Newspoll, various WPP subsidiaries across Asia
and Africa and the China-Australia Chamber of Commerce. His
community involvement spans Women Leading Change in Asia
Awards, Habitat for Humanity Asia, You Can in China and the
Special Olympics.
Currently, Adrian is the Head of Corporate Development &
Strategy at Geoscape, a member of the Advisory Board at Quilt.
AI, and a Non-Executive Director at Adgile Media Holdings.
He holds a Masters in Business Innovation, Change
Management, Organisation Design and Culture from York St.
John University.
Adrian Gonzalez
Non-Executive Director
Martin Filz is one of the most highly respected and
influential leaders in global research and was appointed
as CEO of Pureprofile in 2020. A pioneer of online
measurement and research, Martin has more than two
decades of experience as a leader across the technology,
media and research sectors.
At Pureprofile, Martin leads a global team across North
America, Europe and APAC. He has been responsible for
restructuring and reorienting the business towards growth
and building the company’s market-leading data and
insights capabilities.
Martin has deep knowledge and expertise across
business processes, technology and sales and marketing
methodologies. Prior to joining Pureprofile, he was
Managing Director of Eureka AI, where he also acted as
Global Chief Revenue Officer. He previously held senior
positions at Kantar-owned Lightspeed Research – including
stints as CEO EMEA and CEO APAC. Previous to that he
was Managing Director (EMEA and APAC) at Research Now
(now Dynata) and has also worked in leadership roles at
Capgemini, Nielsen and Citect.
Martin is active in many digital and research bodies
including The Australian Data and Insights Association
(ADIA) - where he currently holds the position of Non-
Executive Director, The Research Society (TRS), ESOMAR,
the Market Research Society (MRS), and the Interactive
Advertising Bureau (IAB).
Martin Filz
Managing Director and CEO
Meet our
Directors
SECTION SIX
Financial reports
06
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FINANCIAL REPORTS
Pureprofile Ltd
Directors' report
30 June 2024
58
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 2024.
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:
Michael Anderson - Non-Executive Director and Chair (appointed 1 June 2024)
Linda Jenkinson - Non-Executive Director (resigned 25 June 2024) and Chair (resigned 1 June 2024)
Martin Filz - Chief Executive Officer and Managing Director
Albert Hitchcock - Non-Executive Director (resigned 1 June 2024)
Elizabeth Smith - Non-Executive Director
Mark Heeley - Non-Executive Director (appointed 17 October 2023)
Adrian Gonzalez - Non-Executive Director (appointed 1 June 2024)
Principal activities
During the financial year, the principal continuing activities of the group consisted of the provision of profile marketing and
insights technology services.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The profit for the group after providing for income tax amounted to $94,352 (30 June 2023: loss of $2,159,208).
Earnings before interest, tax, depreciation, amortisation and significant items (‘EBITDA excluding significant items’) for the
financial year amounted to a profit of $4,406,976 (30 June 2023: profit of $4,299,188).
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-cash and significant items. The directors consider EBITDA excluding
significant items and operating profit before tax to be the two core earnings measures of the group.
Pureprofile Ltd
Directors' report
30 June 2024
59
The following table summarises key reconciling items between statutory loss after income tax and EBITDA excluding
significant items:
Consolidated
2024
2023
$
$
Profit/(loss) after income tax from continued business
107,047
(1,512,904)
Add: Loss after income tax expense from discontinued operations
(12,695)
(646,304)
Profit/(loss) after income tax
94,352
(2,159,208)
Less:
94,352
(2,159,208)
Interest
(518)
(157)
Add back:
Finance costs
439,408
526,086
Income tax expense
24,131
89,862
Depreciation and amortisation expense
2,694,344
2,960,991
Interest expense on leases
-
-
Loss on disposal of intangible assets
39,070
105,949
Restructuring and acquisition costs
112,388
468,017
Share-based payments expense
949,871
2,201,739
Professional fees and payroll tax on share-based payments
53,930
105,909
EBITDA (excluding significant items)
4,406,976
4,299,188
Less:
EBITDA Loss (excluding significant items) from discontinued operations
12,695
284,971
EBITDA (excluding significant items) from continued operations
4,419,671
4,584,159
During financial year ended 30 June 2024 ('FY24'), the group completed 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.
●
Data and insights - Leverage Pureprofile proprietary data; Managed Services, Audience Builder, Audience Intelligence,
Insights Builder.
●
Technology and AI - Accelerate our technology and AI solutions focusing on client facing solutions, internal efficiency
and platform.
At the end of the financial year, the group delivered a number of initiatives consistent with its corporate strategy. Continuing
business key highlights included:
●
Delivered maiden full year Net Profit after Tax for FY24 of $0.1m (FY23 recorded a NPAT loss of $1.5m)
●
Successfully met FY24 Financial guidance as communicated to the market
●
Revenue for FY24 of $48.1m, up 10% on pcp, significantly enhanced by record quarterly revenue in Q4 FY24 of $13.1m,
representing 18% growth on pcp
●
ANZ revenue up 2% on pcp on softer trading environment during the year. Notably, Q4 FY24 delivered revenue growth
of 6% in ANZ, a material uplift in performance from 1% growth experienced in Q3 FY24 on pcp
●
Rest of World revenue up 23% on pcp, significantly bolstered by strong growth in the UK and India during the year
●
FY24 EBITDA declined 4% to $4.4m. However, adjusting for the impact of the change in the Executive Remuneration
policy implemented from November 2023, EBITDA is up 8% on pcp to $5.0m
●
Reported cash balance of $5.2m up from $4.2m at 31 December 2023. During FY24 $0.1m was repaid off the principal
of debt facility
●
Established offices in Spain and Germany during FY24
●
Robust platform revenue growth continues, increasing 88% on pcp, due to increased use of the platform by clients and
growth of Audience Builder. Growth in our audience network has generated new revenue streams and improved gross
margins by extending our own higher margin panels
FINANCIAL REPORTS
Pureprofile Ltd
Directors' report
30 June 2024
60
●
Annuity revenue is currently $10.4m on a rolling 12-month basis
●
Project volumes increased 28% on pcp
●
Repeat business climbed to 91% on a rolling 12-month basis
●
Operating expenses for FY24 were higher than pcp predominantly due to higher staff expenses (related to investments
for growth outside of ANZ), higher marketing expenses (related to supporting revenue generation in markets outside of
ANZ) and higher technology expenses (related to software investments for ISO 27001 accreditation).
●
Share-based payments were $950k for FY24 down from $2.2m in FY23 (excluded from EBITDA and classified as a
significant item)
●
New Audience Builder partnerships launched including:
о Horizon NZ - a New Zealand-based research company. The partnership will use cutting-edge technology to allow
businesses to survey two of Horizon’s consumer insight panels, one representative of the broader New Zealand adult
population and a second comprised exclusively of Māori.
о Sprive - a UK-based mortgage assistance app which will offer survey respondents the opportunity to earn cashback
towards their mortgages.
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 and has a diversified growing customer base from a wide range of industry sectors, thereby significantly mitigating
concentration risk from being heavily exposed to one market or a single industry. The demand for market research services
during challenging economic times can vary based on several factors including the industry, the economic climate, and the
specific needs of businesses. Some customers may increase their investment in market research during economic downturns
to better understand new market conditions, re-assess their strategies, and gain a competitive edge. These companies view
market research as a critical tool for navigating uncertainty and making data-driven decisions. Conversely, some customers
may cut back on "non-essential" expenditures like market research during challenging times as part of broader cost-saving
measures. While traditional market research may decline, there may be a rise in demand for specialised research focused on
understanding consumer behaviour during recessions, shifts in the competitive landscape, or identifying emerging
opportunities as a result of the economic downturn. Some customers might focus on more targeted research efforts that
promise a high ROI rather than comprehensive studies that are more cost-intensive. There may be a shift towards more cost-
effective, digital methods of gathering market research, such as online surveys, social media analytics, and other web-based
tools providing an opportunity for the group to leverage their technology to satisfy this demand. Government and Academic
Research public sector organisations often increase research conducted during economic downturns to better inform policy.
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. To manage this risk, the group maintains highly experienced product development
and technology teams that stay abreast of the latest advances and their industry implications. Strategic partnerships and
alliances are pursued to co-develop innovative solutions, while our global growth strategy may reduce dependency on any
single market. Additionally, we support continuous learning for our workforce, ensuring they remain equipped with cutting-
edge skills.
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 and associated subject matter experts. The group fosters a
compliance-conscious environment, underpinned by mandatory training, in-house audits of information management systems,
and external assurance of internal controls under ISO 27001 certification. 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.
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61
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 including investments
in training and development opportunities, a succession planning process is in place for all key roles, alongside long-term
incentive plans to retain key talent. Employee engagement is prioritised through bi-annual surveys and performance reviews,
with executive team objectives centered around engagement and retention. Frequent company updates and quarterly all-
hands meetings enhance communication and alignment. The group also offers benefits like a flexible and hybrid work
environment, social team budgets, wellbeing initiatives, and both short-term and long-term incentive plans for executives and
key staff.
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. To mitigate these
platform and technology risks, the group conducts regular assessments of our technology infrastructure to ensure it remains
robust and up to date. We invest in continuous platform and system upgrades to prevent obsolescence and reduce the
likelihood of failures. We also have contingency plans in place, including disaster recovery protocols and redundant systems,
to minimise the impact of any technological disruptions. Furthermore, our commitment to data security and compliance with
industry standards, such as ISO 27001, ensures that our technology platforms are secure and resilient against potential
threats.
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 promote 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
On 27 June 2024, the company announced the signing of a binding transaction agreement with i-Link Research Solutions Pty
Ltd ('i-Link'). Under the terms of the transaction agreement, the company acquired i-Link for a total consideration of $1.25
million, to be paid in two tranches. The initial tranche of $625,000 was payable upon completion (1 July 2024), with the
remaining $625,000 deferred and payable on 1 April 2025. The acquisition will be financed through cash reserves, expected
to complete post-year end, with no outstanding conditions precedent.
There were no other significant changes in the state of affairs of the group during the financial year.
Matters subsequent to the end of the financial year
On 1 July 2024, the company, through its subsidiary Pureprofile Australia Pty Ltd, completed the Transaction agreement with
i-Link Research Solutions Pty Ltd ('i-Link').
No other matter or circumstance has arisen since 30 June 2024 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
During FY25, the group will commence stage 3 of its corporate growth strategy focused on accelerating global growth. Our
FY25 corporate growth strategy focuses on driving revenue and margin growth by delivering end-to-end solutions directly to
clients, investing in global expansion, and enhancing our integrated suite of products and services. We will accelerate
innovation through technology partnerships, AI-driven solutions, and/or strategic acquisitions to accelerate our growth
FINANCIAL REPORTS
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62
The group’s strategic priorities for FY25 include:
●
Growth Company
о Focus on UK and US business
о Continue to invest for growth outside of ANZ
о Maintain leading position in ANZ; increase spend per client
о Invest for revenue growth
●
Global Company
о Focus on UK and US business
о Continue to invest for growth outside of ANZ
о Maintain leading position in ANZ; increase spend per client
о Invest for revenue growth
●
Profitable Company
о Build on maiden NPAT profitability
о Increase revenue
о Reduce costs
о Improve productivity
●
Industry Trailblazer
о Innovation for our clients and teams
о Customer-led solutions
о Deliver clear strategic vision
Environmental regulation
The group is not subject to any significant environmental regulation under Australian Commonwealth or State law.
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63
Information on directors
Name:
Michael Anderson
Title:
Non-Executive Director and Chair (appointed 1 June 2024)
Qualifications:
Bachelor of Political Science from La Trobe University
Experience and expertise:
Michael is an accomplished Chairman and Non-Executive Director with a distinguished
career in leading media organisations through periods of intense competition and
disruption. His expertise lies in strategic thinking, marketing, and innovation, making him
adept at navigating fluid markets.
As CEO of MediaWorks Group from 2016 to 2020, Michael spearheaded the integration
of QMS Outdoor, establishing New Zealand's sole Radio/Outdoor business. He also
facilitated the sale of MediaWorks' TV division to Discovery, a landmark transaction that
positioned the company for future growth and sustainability.
Michael's board experience is extensive. As the Non- Executive Chairman of oOh!
Media, he prepared the company for a successful IPO, transforming it into a leading out-
of-home media business in Australia and New Zealand through digital integration and
consumer insights driven by data.
During his tenure at Fairfax Media (Non-Executive Director, 2010-2016), he helped
develop strategies that transformed the newsroom to a digital-first approach, reduced
debt, and expanded new ventures like Domain and Stan.
Earlier in his career, Michael was with the Austereo Group for a total of 18 years,
including 7 years as CEO.
Michael has also previously held roles as Non-Executive Chairman at Oztam Pty Ltd
(2010-2017), Non-Executive Director at Lux Group (2016-2017) and Villa Maria Estate
(2019-2021). He is currently a Non-Executive Director at Flooring xtra and the Black
Dog Institute Foundation.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
None
Interests in shares:
None
Interests in options:
None
Interests in rights:
None
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64
Name:
Linda Jenkinson
Title:
Non-Executive Director (resigned 25 June 2024) and Chair (resigned 1 June 2024)
Qualifications:
Linda holds an MBA from The Wharton School, University of Pennsylvania, a Bachelor
of Business Studies from Massey University, and is a non-practicing qualified Chartered
Accountant.
Experience and expertise:
Linda Jenkinson is an experienced public and private company board director and a
successful CEO. Linda is the first woman ever to list a company on NASDAQ. She is
currently the Chair of ASX publicly listed Medadvisor (ASX: MDR) and Jaxsta (ASX:
JXT) and Non-Executive Director of FleetPartners Group (ASX: FPR), and a former Non-
Executive Director of Air New Zealand (ASX: AIZ). She is also the Chair of Guild Trustee
Services and Non-Executive Director of Harbour Asset Management.
Linda has founded multiple companies over the last 20 years and is a pioneer as a
founder and CEO. Her companies have listed on the NASDAQ, offered services in more
than 80 countries and employed 8,500 employees in technology, on-demand courier,
online wine, customer and employee experience and sustainability. She is featured in
case studies by both Harvard and Stanford Business Schools. Based in the US for over
30 years, Linda divides her time between the US and Australia/New Zealand. Earlier in
her career, Linda spent 11 years as a strategy consultant and advisor to Fortune 500
CEOs, boards, and executive teams. As a Partner at A.T. Kearney, she helped build the
global Financial Services Practice with clients including Bank of America.
Other current directorships:
Medadvisor (ASX: MDR), Jaxsta (ASX: JXT) and Straker Translations (ASX: STG)
Former directorships (last 3 years):
Air New Zealand (ASX: AIZ)
Special responsibilities:
None
Interests in shares*:
None
Interests in options*:
5,000,000
Interests in rights*:
None
Name:
Martin Filz
Title:
Chief Executive Officer and Managing Director
Qualifications:
Institutional Management - Northampton College
Experience and expertise:
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
Special responsibilities:
None
Interests in shares:
33,716,412 ordinary shares
Interests in options:
10,955,903
Interests in rights:
8,993,939
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65
Name:
Albert Hitchcock
Title:
Non-Executive Director (resigned 1 June 2024)
Qualifications:
Albert holds a Dip.MBA (Distinction) from Exeter University, a Post Graduate Certificate
in Management Studies from Exeter Business School, and 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).
Experience and expertise:
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.
Other current directorships:
Nationwide Building Society (LON: NBS)
Former directorships (last 3 years):
None
Special responsibilities:
None
Interests in shares*:
473,355 ordinary shares
Interests in options*:
None
Interests in rights*:
None
Name:
Elizabeth Smith
Title:
Non-Executive Director
Qualifications:
Liz holds a Bachelor of Commerce from the University of Melbourne and a Masters of
Business Administration from La Trobe University. She is a Fellow of Chartered
Accountants Australia and New Zealand, a Fellow of the Financial Services Institute of
Australasia, a Fellow of the Governance Institute and is a graduate of the Australian
Institute of Company Directors.
Experience and expertise:
Elizabeth (Liz) Smith is an experienced Non-Executive Director and Chair of Audit and
Risk. Her executive career includes Corporate Finance Partner roles at William Buck
and Grant Thornton, as well as audit experience at Ernst & Young. Liz has strong skills
in finance and accounting, strategy, M&A, risk and governance and extensive
experience advising businesses with strong growth aspirations. She has worked across
a range of industries (including retail, advertising and technology) and for businesses
ranging from small privately owned companies to large ASX listed entities. Liz is also on
the Board of the Australian Red Cross and on Nuchev (ASX: NUC).
Other current directorships:
Nuchev (ASX: NUC)
Former directorships (last 3 years):
BikeExchange (ASX: BEX)
Special responsibilities:
None
Interests in shares:
None
Interests in options:
None
Interests in rights:
None
FINANCIAL REPORTS
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Directors' report
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66
Name:
Mark Heeley
Title:
Non-Executive Director (appointed 17 October 2023)
Qualifications:
Mark Heeley holds a Bachelor degree from Durham University, United Kingdom and
resides in Sydney, Australia.
Experience and expertise:
Mark Heeley is a highly accomplished executive with a wealth of experience in building
and fostering businesses in the media, marketing, software, consumer intelligence and
social media management spaces.
Between 1990 and 2002, Mark founded and was joint CEO of Claydon Heeley, a London
based, direct marketing agency. The business had offices in London and Beijing with
100+ employees when it was acquired in 1998 by Omnicon.
In the early 2000’s, he became an advisor and early-stage investor in media and
technology businesses, taking an active role on the boards of investee companies. He
was appointed Chairman of Improveline, a UK based start-up providing property related
services to the insurance industry and a Non-Executive Director of Hometrack, a digital
business providing automated valuations, risk and insights to the property industry.
More recently, Mark was an early investor and Board member of Brandwatch, serving
as Chairman for 12 years. Brandwatch grew rapidly from a five-person start-up to an
international market leader in consumer research, employing 1000+ people, with offices
in seven countries. Brandwatch’s technology provides real time consumer insights to
clients using a SaaS based platform. The Company was acquired by private equity firm
Platinum in 2021 for $450m USD.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
None
Interests in shares:
16,232,231
Interests in options:
None
Interests in rights:
None
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67
Name:
Adrian Gonzalez
Title:
Non-Executive Director (appointed 1 June 2024)
Qualifications:
Masters in Business Innovation, Change Management, Organisation Design and
Culture from York St. John University
Experience and expertise:
Adrian is a seasoned growth leader known for transforming businesses and driving sales
growth, profitability, and innovation.
As CEO of Kantar Insights APAC (2016-2021), Adrian led the world’s foremost brand
consultancy and data analytics company, overseeing 2,000 people across 12 countries.
He executed large-scale structural, digital, and cultural change programs, appointed
new country leaders, and enhanced the client service model.
Adrian co-founded Millward Brown in Australia in 1994, expanding the business
regionally to become a major player in brand, media, and communication optimisation
across APAC. Upon the Company becoming part of the WPP Group, he led significant
acquisitions in China, Korea, and New Zealand, and formed strategic joint ventures in
India, Japan, and Vietnam. His leadership in China resulted in the merger of Millward
Brown and ACSR, creating the country's largest data-led brand builder.
Adrian's previous board roles have included Kantar Insights, Newspoll, various WPP
subsidiaries across Asia and Africa and the China-Australia Chamber of Commerce. His
community involvement spans Women Leading Change in Asia Awards, Habitat for
Humanity Asia, You Can in China and the Special Olympics.
Currently, Adrian is the Head of Corporate Development & Strategy at Geoscape, a
member of the Advisory Board at Quilt.AI, and a Non-Executive Director at Adgile Media
Holdings.
Other current directorships:
A member of the Advisory Board at Quilt.AI, and a Non-Executive Director at Adgile
Media Holdings
Former directorships (last 3 years):
None
Special responsibilities:
None
Interests in shares:
None
Interests in options:
None
Interests in rights:
None
* Interests in shares, options and rights are correct as at the date that the individual ceased to be a director of the Company.
'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
Mr 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. Lee resigned as
Company Secretary on 22 September 2023.
Ms Robyn Slaughter was appointed Company Secretary on 22 September 2023. Robyn is a Company Secretary who works
closely with a number of boards of both listed and unlisted public companies across a range of industries including financial
services, biotechnology and healthcare, technology, cyber security and manufacturing. Robyn is a qualified Governance
Professional (CGI) and Associate of the Governance Institute of Australia (GIA), and holds a Master’s degree in Corporate
Governance and a Bachelor's degree in Accounting and Finance. Robyn resigned as Company Secretary on 1 August 2024.
FINANCIAL REPORTS
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Directors' report
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68
Ms Patrica Vanni was appointed Company Secretary on 1 August 2024. Ms Vanni is a qualified lawyer with more than 20
years’ professional experience spanning corporate governance, mergers & acquisitions, project finance, contracts and
compliance, as well as company secretarial services for ASX listed, private, and not-for-profit companies across several
industries. Ms Vanni holds a Bachelor of Laws and is admitted to practice in Brazil and Victoria, Australia. She is also an
Affiliate of the Governance Institute of Australia.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2024, and the
number of meetings attended by each director were:
Full Board
Attended
Held
Michael Anderson
2
2
Linda Jenkinson
14
17
Martin Filz
17
17
Albert Hitchcock
11
15
Elizabeth Smith
17
17
Mark Heeley
13
14
Adrian Gonzalez
2
2
Held: represents the number of meetings held during the time the director held office.
The responsibilities ordinarily reserved for the Audit and Risk Committee and the Nomination and Remuneration Committee
were undertaken by the full Board during the year ended 30 June 2024.
Remuneration report (audited)
The directors of Pureprofile present the Remuneration Report for the group for the year ended 30 June 2024. The
Remuneration Report forms part of the Directors Report and has been audited in accordance with the requirements of the
Corporations Act 2001 and its Regulations.
The Remuneration Report details the remuneration arrangements for the group’s Key Management Personnel ('KMP'). 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.
Name
Title
Term
Non-Executive Directors
Michael Anderson
Chair
Appointed 1 June 2024
Linda Jenkinson
Chair
Resigned 25 June 2024
Albert Hitchcock
Director
Resigned 1 June 2024
Elizabeth Smith
Director
Full Financial Year
Mark Heeley
Director
Appointed 17 October 2023
Adrian Gonzalez
Director
Appointed 1 June 2024
Executive Director
Martin Filz
Chief Executive Officer and Managing Director
Full Financial Year
Other Key Executives
Melinda Sheppard
Chief Operating Officer and Chief Financial Officer
Full Financial Year
The remuneration report is set out under the following main headings:
●
Remuneration structure and framework review
●
Remuneration principles
●
Details of remuneration
●
Service agreements
●
Share-based compensation
●
Additional disclosures relating to key management personnel
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69
Remuneration structure and framework review
During FY24, the directors of Pureprofile completed a review of the group’s remuneration structure and framework to ensure
that it was fit-for purpose to motivate, engage and reward its executives and employees ensuring alignment with shareholder
interests. The directors are committed to ensure that the group's remuneration structure and framework plan is suitably
designed to support the group’s corporate growth strategy and delivery of strategic priorities.
After consultation with shareholders and key executive management, the directors have implemented a new short-term
incentive plan from financial year 2024 ('FY24') onwards. In prior years the short-term incentive plan was paid in equity,
however from FY24, the short-term incentive plan will be cash based reward, with the directors maintaining discretion to pay
in equity if the business conditions so dictate. Additionally, the directors agreed that there will be no new long-term incentive
plans implemented for FY24 and FY25. In considering how the incentive plan should operate, the directors recognised the
need for a remuneration structure and framework that will strike the appropriate balance between the need to attract and retain
high calibre executives within a highly competitive market while still meeting the market and governance expectations of an
ASX-listed company.
Remuneration principles
The objective of the group's executive reward framework is to ensure reward for performance is competitive and appropriate
for the results delivered. The Board of Directors ('the Board') seeks to ensure that executive reward satisfies the following key
criteria for good reward governance practices:
●
competitiveness and reasonableness;
●
acceptability to shareholders;
●
performance linkage / alignment of executive compensation; and
●
transparency.
The Board is responsible for reviewing and approving 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 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 Board. The Board 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 Chair's fees are determined independently to the fees of other non-executive directors based on comparative roles in the
external market. The Chair is not present at any discussions relating to the determination of their 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.
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70
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 2025 are summarised as follows:
Name
FY 2025 Fees
Michael Anderson
$140,000
Elizabeth Smith
$70,000
Mark Heeley
$70,000
Adrian Gonzalez
$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;
●
long-term incentives; and
●
other remuneration such as superannuation and long service leave.
The combination of these comprises the executive's total remuneration. The remuneration packages for executives are
considered and approved by the Board. At the absolute discretion of the Board, the company may seek external advice on
the appropriate level and structure of remuneration packages from time to time.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, is reviewed annually by the Board
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.
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From FY24, the directors agreed that the short-term incentive plan will be cash-based reward versus an equity grant, with the
directors maintaining discretion to pay in equity if the business conditions so dictate.
Percentage of STI awarded and forfeited for Executive KMP during the financial year
Details of the STI outcomes received by Executive KMP during the financial year are outlined in the table below:
Executive KMP
Year
Percentage of STI award
granted
Percentage of STI award
forfeited
Martin Filz
2024
53.6%
46.4%
2023
72.0%
28.0%
2022
98.4%
1.6%
2021
0.0%
0.0%
Melinda Sheppard
2024
53.6%
46.4%
2023
72.0%
28.0%
2022
99.4%
0.6%
2021
0.0%
0.0%
The long-term incentives are share-based payments. The company has previously adopted a long term incentive plan ('LTI')
in order to assist in the motivation and retention of key staff. The directors have agreed that there will be no new long-term
incentive plans implemented for FY24 and FY25.
Under the prior 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.
Percentage of LTI awarded and forfeited for Executive KMP during the financial year
Details of the LTI outcomes received by Executive KMP during the financial year are outlined in the table below:
Executive KMP
Year
Percentage of LTI award
granted
Percentage of LTI award
forfeited
Martin Filz
2024
0.0%
0.0%
2023
100%*
0.0%
2022
84.5%
15.5%
2021
100%
0.0%
Melinda Sheppard
2024
0.0%
0.0%
2023
100%*
0.0%
2022
83.3%
16.7%
2021
100%
0.0%
*
100% provided for and will be measured at the end of 3 years performance period.
FINANCIAL REPORTS
Pureprofile Ltd
Directors' report
30 June 2024
72
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.
Consequences of performance on shareholder wealth
In considering the group's performance and benefits to shareholder wealth, the board has had regard to the share price,
EBITDA excluding significant items and profit after tax in respect of the current financial year and the previous four financial
years.
2024
2023
2022
2021
2020
Share price
$0.021
$0.025
$0.044
$0.027
$0.006
EBITDA (excluding significant items) at financial
year end ($)
4,406,976
4,299,188
4,005,964
3,141,689
1,401,152
(Loss)/profit after tax ($)
94,352
(2,159,208)
(2,164,277)
2,811,156
(9,829,481)
Use of remuneration consultants
During the financial year ended 30 June 2024, the group did not engage any remuneration consultants to review or provide
recommendations regarding the group's remuneration practices, including share-based incentive programs. All decisions
regarding remuneration were made internally by the board, free from any undue influence by Executive KMPs.
Voting and comments made at the company's 2023 Annual General Meeting ('AGM')
At the 2023 AGM, 93.65% of the votes received supported the adoption of the remuneration report for the year ended 30 June
2023.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the group are set out in the following tables.
The key management personnel of the group consisted of the following directors of Pureprofile Ltd:
●
Michael Anderson - Non-Executive Director and Chair (appointed 1 June 2024)
●
Linda Jenkinson - Non-Executive Director (resigned 25 June 2024) and Chair (resigned 1 June 2024)
●
Martin Filz - Chief Executive Officer and Managing Director
●
Albert Hitchcock - Non-Executive Director (resigned 1 June 2024)
●
Elizabeth Smith - Non-Executive Director
●
Mark Heeley - Non-Executive Director (appointed 17 October 2023)
●
Adrian Gonzalez - Non-Executive Director (appointed 1 June 2024)
And the following person:
●
Melinda Sheppard - Chief Operating Officer/Chief Financial Officer
Pureprofile Ltd
Directors' report
30 June 2024
73
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
Cash
Super-
Employee
Equity-
and fees
bonus
Other
annuation
leave
settled**
Total
2024
$
$
$
$
$
$
$
Non-Executive Directors:
M. Anderson*
11,667
-
-
-
-
-
11,667
L. Jenkinson*
165,375
-
-
-
-
63,432
228,807
A. Hitchcock*
70,320
-
-
-
-
-
70,320
E. Smith
70,000
-
-
-
-
-
70,000
M. Heeley*
44,710
-
-
4,918
-
-
49,628
A. Gonzalez*
5,255
-
-
578
-
-
5,833
Executive Directors:
M. Filz
416,500
150,115
-
27,500
-
274,196
868,311
Other Key Management
Personnel:
M. Sheppard
309,590
111,780
-
35,124
-
159,512
616,006
1,093,417
261,895
-
68,120
-
497,140
1,920,572
*
Represents remuneration from the date of appointment and/or to the date of resignation
**
Share-based payments for M. Filz consists of options of $11,131 and performance rights of $263,065. Share-based
payments for M. Sheppard consists of options of $69,572 and performance rights of $89,939.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
Cash
Super-
Employee
Equity-
and fees
bonus
Other
annuation
leave
settled**
Total
2023
$
$
$
$
$
$
$
Non-Executive Directors:
L. Jenkinson*
21,875
-
-
-
-
-
21,875
A. Hitchcock*
67,454
-
-
-
-
-
67,454
E. Smith*
23,333
-
-
-
-
-
23,333
A. Edwards*
104,615
-
-
10,985
-
-
115,600
S. Klose*
63,927
-
-
6,712
-
-
70,639
T. Hannon*
26,515
-
-
-
-
-
26,515
Executive Directors:
M. Filz
411,869
-
-
71,292
-
586,002
1,069,163
Other Key Management
Personnel:
M. Sheppard
287,541
-
-
30,530
-
535,079
853,150
1,007,129
-
-
119,519
-
1,121,081
2,247,729
*
Represents remuneration from the date of appointment and/or to the date of resignation
**
Share-based payments for M. Filz consists of options of $82,612 and performance rights of $503,390. Share-based
payments for M. Sheppard consists of options of $322,702 and performance rights of $212,377.
FINANCIAL REPORTS
Pureprofile Ltd
Directors' report
30 June 2024
74
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk - STI
At risk - LTI
Name
2024
2023
2024
2023
2024
2023
Non-Executive Directors:
M. Anderson
100%
-
-
-
-
-
L. Jenkinson
72%
100%
-
-
28%
-
A. Hitchcock
100%
100%
-
-
-
-
E. Smith
100%
100%
-
-
-
-
A. Gonzalez
100%
-
-
-
-
-
M. Heeley
100%
-
-
-
-
-
Executive Directors:
M. Filz
51%
45%
17%
-
32%
55%
Other Key Management
Personnel:
M. Sheppard
56%
37%
18%
-
26%
63%
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Michael Anderson
Title:
Non-Executive Director and Chair
Agreement commenced:
1 June 2024
Term of agreement:
Appointment until next Annual General Meeting, at which Mr Anderson will be eligible
for re-election. Following successful re-election at the AGM, Mr Anderson’s continued
appointment will be subject to rotation in accordance with the requirements of the
Company’s Constitution and the ASX Listing Rules.
Details:
Base salary for the year ended 30 June 2024 of $140,000 excluding any GST, to be
reviewed from time to time by the Full Board 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.
Name:
Elizabeth Smith
Title:
Non-Executive Director
Agreement commenced:
1 March 2023
Term of agreement:
Ms Smith’s continued appointment is subject to rotation in accordance with the
requirements of the Company’s Constitution and the ASX Listing Rules.
Details:
Base salary for the year ended 30 June 2024 of $70,000 excluding any GST, to be
reviewed from time to time by the Full Board 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.
Name:
Mark Heeley
Title:
Non-Executive Director
Agreement commenced:
17 October 2023
Term of agreement:
Mr Heeley’s continued appointment is subject to rotation in accordance with the
requirements of the Company’s Constitution and the ASX Listing Rules.
Details:
Base salary for the year ended 30 June 2024 of $70,000 inclusive of superannuation, to
be reviewed from time to time by the Full Board 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.
Pureprofile Ltd
Directors' report
30 June 2024
75
Name:
Martin Filz
Title:
Chief Executive Officer and Managing Director
Agreement commenced:
3 August 2020
Term of agreement:
No fixed end date
Details:
Base salary of $400,000 plus superannuation, to be reviewed from time to time by the
Full Board 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.
Name:
Melinda Sheppard
Title:
Chief Operating Officer/Chief Financial Officer
Agreement commenced:
25 June 2018
Term of agreement:
No fixed end date
Details:
Base salary for the year ended 30 June 2024 of $340,766 plus superannuation, to be
reviewed from time to time by the Full Board 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, KPIs and targets to which the incentives relate.
Name:
Adrian Gonzalez
Title:
Non-Executive Director
Agreement commenced:
1 June 2024
Term of agreement:
Appointment until next Annual General Meeting, at which he will be eligible for re-
election. Following successful re-election at the AGM, Mr Gonzalez’s continued
appointment will be subject to rotation in accordance with the requirements of the
Company’s Constitution and the ASX Listing Rules.
Details:
Base salary for the year ended 30 June 2024 of $70,000 inclusive of superannuation, to
be reviewed from time to time by the Full Board 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.
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 2024 (2023: nil).
FINANCIAL REPORTS
Pureprofile Ltd
Directors' report
30 June 2024
76
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:
Number of
Fair value
options
Vesting date and
per option
Name
granted
Grant date
exercisable date
Expiry date
Exercise price at grant date
L. Jenkinson
5,000,000
27/11/2023
01/12/2023
15/01/2029
$0.028
$0.013
5,000,000*
27/11/2023
01/12/2024
15/01/2029
$0.028
$0.013
5,000,000*
27/11/2023
01/12/2025
15/01/2029
$0.028
$0.013
M. Filz
10,955,902
29/01/2021
01/09/2023
01/04/2026
$0.020
$0.015
M. Sheppard
4,208,906
01/04/2021
01/09/2023
01/04/2026
$0.020
$0.016
8,479,240
16/09/2021
16/09/2023
16/09/2026
$0.027
$0.034
2,826,413
16/09/2021
01/09/2023
16/09/2026
$0.027
$0.034
2,826,413
16/09/2021
01/09/2024
16/09/2026
$0.027
$0.034
* On 25 June 2024, 10,000,000 options held by Ms Jenkinson have lapsed in accordance with the ESOP rules.
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 2024 are set out below:
Value of
Value of
Value of
options
options
options
granted
exercised
forfeited
during the
during the
during the
year
year
year
Name
$
$
$
L. Jenkinson*
190,297
-
126,864
M. Filz
-
-
-
M. Sheppard
-
-
-
*
Options of 15,000,000 were granted on 27 November 2023. 10,000,000 options were forfeited on 25 June 2024.
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.
Pureprofile Ltd
Directors' report
30 June 2024
77
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:
Number of
Fair value
rights
Vesting date and
per right
Name
granted
Grant date
exercisable date
Expiry date
at grant date
M. Filz
3,333,333 26/10/2021
01/09/2023
26/10/2026
$0.060
3,333,333 26/10/2021
01/09/2024
26/10/2026
$0.060
9,265,909 13/12/2022
31/08/2023
13/12/2027
$0.042
3,088,636 13/12/2022
01/09/2023
13/12/2027
$0.033
3,088,636 13/12/2022
01/09/2024
13/12/2027
$0.033
3,088,637 13/12/2022
01/09/2025
13/12/2027
$0.033
M. Sheppard
6,571,128 13/12/2022
31/08/2023
13/08/2027
$0.042
1,095,188 13/12/2022
01/09/2023
13/12/2027
$0.033
1,095,188 13/12/2022
01/09/2024
13/12/2027
$0.033
1,095,188 13/12/2022
01/09/2025
13/12/2027
$0.033
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, exercised and lapsed for directors and other key management
personnel as part of compensation during the year ended 30 June 2024 are set out below:
Value of
Value of
Value of
rights
rights
rights
granted
exercised
lapsed
during the
during the
during the
year
year
year
Name
$
$
$
M. Filz
-
551,795
-
M. Sheppard
-
234,521
-
FINANCIAL REPORTS
Pureprofile Ltd
Directors' report
30 June 2024
78
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:
Balance at
Received
Balance at
the start of
as part of
Disposals/
the end of
the year
remuneration
Additions*
other**
the year
Ordinary shares
A. Hitchcock
473,355
-
-
(473,355)
-
M. Filz
26,488,593
-
12,565,639
(5,337,820)
33,716,412
M. Sheppard
9,224,638
-
5,818,515
(9,185,378)
5,857,775
M. Heeley
-
-
16,232,231
-
16,232,231
36,186,586
-
34,616,385
(14,996,553)
55,806,418
*
Additions for M. Filz consist of the exercise of options to 5,611,560 shares and exercise of performance rights to
5,285,417 shares. Additions for M. Sheppard consist of the exercise of options to 6,099,638 shares and the exercise of
performance rights to 1,562,500 shares. Additions for M. Heeley represent his shareholding prior to joining the board.
**
Disposals/other for A. Hitchcock represent the holding at the time of resignation.
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:
Balance at
Balance at
the start of
Disposals/
the end of
the year
Granted
Exercised
other*
the year
Options over ordinary shares
L. Jenkinson
-
15,000,000
-
(15,000,000)
-
M. Filz
10,955,903
-
-
-
10,955,903
M. Sheppard
17,347,772
-
-
-
17,347,772
28,303,675
15,000,000
-
(15,000,000)
28,303,675
*
Disposals/other represent the options lapsed and/or options holding at the time of resignation. L. Jenkinson's 10,000,000
options lapsed at the time of resignation and she holds 5,000,000 options at the time of resignation.
Employees have the option to use a cashless exercise as a method for exercising options without the need for the employees
to make a cash payment to cover the exercise price. If this method is used, the resulting number of fully paid shares issued
differs to the number of options exercised.
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:
Balance at
Expired/
Balance at
the start of
forfeited/
the end of
the year
Granted
Exercised
other
the year
Performance rights over ordinary shares
M. Filz
21,559,589
-
(12,565,639)
-
8,993,950
M. Sheppard
8,008,899
-
(5,818,515)
-
2,190,384
29,568,488
-
(18,384,154)
-
11,184,334
Other transactions with key management personnel and their related parties
During the financial year, expenses totalling $8,857 (2023: $6,169) 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.
Pureprofile Ltd
Directors' report
30 June 2024
79
Shares under option
Unissued ordinary shares of Pureprofile Ltd under option at the date of this report are as follows:
Exercise
Number
Grant date
Expiry date
price
under option
29/01/2021
01/04/2026
$0.020
4,930,156
29/01/2021
01/04/2026
$0.020
10,955,903
01/04/2021
01/04/2026
$0.020
4,208,907
01/04/2021
01/04/2026
$0.020
15,578,276
16/09/2021
06/10/2026
$0.027
13,138,866
17/09/2021
06/10/2026
$0.027
26,371,978
15/08/2022
30/06/2025
$0.060
3,000,000
16/02/2023
16/02/2026
$0.053
2,000,000
27/11/2023
15/01/2029
$0.028
5,000,000
85,184,086
Shares issued on the exercise of options
The following ordinary shares of Pureprofile Ltd were issued during the year ended 30 June 2024 and up to the date of this
report on the exercise of options granted:
Exercise
Number of
Grant date
price
shares issued
29/01/2021
$0.020
709,677
Shares under share rights
Unissued ordinary shares of Pureprofile Ltd under share rights at the date of this report are as follows:
Number
Grant date
Expiry date
under rights
29/01/2021
01/04/2026
14,000,000
17/02/2023
17/02/2028
18,388,087
32,388,087
No person entitled to exercise the share rights had or has any right by virtue of the 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 2024 and up to the date of this
report on the exercise of share rights granted:
Exercise
Number of
Grant date
price
shares issued
20/01/2021
$0.000
1,750,000
07/12/2022
$0.000
414,630
2,164,630
FINANCIAL REPORTS
Pureprofile Ltd
Directors' report
30 June 2024
80
Shares under performance rights
Unissued ordinary shares of Pureprofile Ltd under performance rights at the date of this report are as follows:
Number
Grant date
Expiry date
under rights
26/10/2021
26/10/2026
2,816,666
13/12/2022
13/12/2027
9,217,025
20/12/2022
20/12/2027
2,727,540
20/12/2022
20/12/2027
5,982,745
20,743,976
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 2024 and up to the date of this
report on the exercise of performance rights granted:
Exercise
Number of
Grant date
price
shares issued
26/10/2021
$0.000
2,816,667
13/12/2022
$0.000
12,299,458
13/12/2022
$0.000
4,608,511
20/12/2022
$0.000
2,359,286
20/12/2022
$0.000
1,094,084
23,178,006
Indemnity and insurance of officers
The company has indemnified the directors, officers 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, officers 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.
Audit and non-audit services
Details of the amounts paid or payable to the auditor for audit and non-audit services provided during the financial year by the
auditor are outlined in note 29 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.
Pureprofile Ltd
Directors' report
30 June 2024
81
The directors are of the opinion that the services as disclosed in note 29 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 (including Independence Standards) 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
Elizabeth Smith was appointed as a Non-Executive Director on 1 March 2023. She was a partner of Grant Thornton Australia,
the current auditor, between 2009 and 2013.
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.
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
___________________________
Michael Anderson
Non-Executive Chair
29 August 2024
Sydney
FINANCIAL REPORTS
Grant Thornton Audit Pty Ltd
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383 Kent Street
Sydney NSW 2000
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Queen Victoria Building NSW
1230
T +61 2 8297 2400
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www.grantthornton.com.au
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Legislation.
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 2024, I declare that, to the best of my knowledge and belief,
there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
A L Spowart
Partner – Audit & Assurance
Sydney, 29 August 2024
Pureprofile Ltd
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Consolidated
Note
2024
2023
$
$
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
83
Revenue from continuing operations
5
48,068,926
43,649,702
Other income
6
91,704
97,923
Interest revenue calculated using the effective interest method
518
157
Expenses
Direct costs of sales
(21,399,014)
(19,855,763)
Panel expenses
(642,103)
(819,442)
Employee benefits expense
(17,291,996)
(14,957,536)
Foreign exchange loss
(82,682)
(22,810)
Depreciation and amortisation expense
8
(2,694,344)
(2,952,705)
Loss on disposal of intangible assets
(39,070)
(105,949)
Technology, engineering and licence fees
(1,976,645)
(1,504,099)
Share-based payment expense
37
(949,871)
(2,201,739)
Professional fees and payroll tax on share-based payments
(53,930)
(105,909)
Restructuring and acquisition costs
(112,388)
(114,972)
Occupancy costs
(401,756)
(325,425)
Other expenses
(1,946,763)
(1,678,391)
Finance costs
8
(439,408)
(526,084)
Profit/(loss) before income tax expense from continuing operations
131,178
(1,423,042)
Income tax expense
9
(24,131)
(89,862)
Profit/(loss) after income tax expense from continuing operations
107,047
(1,512,904)
Loss after income tax expense from discontinued operations
7
(12,695)
(646,304)
Profit/(loss) after income tax expense for the year attributable to the owners of
Pureprofile Ltd
94,352
(2,159,208)
Other comprehensive profit/(loss)
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
84,734
(7,940)
Other comprehensive profit/(loss) for the year, net of tax
84,734
(7,940)
Total comprehensive profit/(loss) for the year attributable to the owners of
Pureprofile Ltd
179,086
(2,167,148)
Total comprehensive profit/(loss) for the year is attributable to:
Continuing operations
191,781
(1,520,844)
Discontinued operations
(12,695)
(646,304)
179,086
(2,167,148)
FINANCIAL REPORTS
Pureprofile Ltd
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
84
Cents
Cents
Profit/(loss) per share for profit/(loss) from continuing operations attributable
to the owners of Pureprofile Ltd
Basic earnings per share
36
0.01
(0.14)
Diluted earnings per share
36
0.01
(0.14)
Loss per share for loss from discontinued operations attributable to the owners
of Pureprofile Ltd
Basic earnings per share
36
-
(0.06)
Diluted earnings per share
36
-
(0.06)
Profit/(loss) per share for profit/(loss) attributable to the owners of Pureprofile
Ltd
Basic earnings per share
36
0.01
(0.19)
Diluted earnings per share
36
0.01
(0.19)
Pureprofile Ltd
Statement of financial position
As at 30 June 2024
Consolidated
Note
2024
2023
$
$
The above statement of financial position should be read in conjunction with the accompanying notes
85
Assets
Current assets
Cash and cash equivalents
10
5,237,973
4,726,460
Trade and other receivables
11
10,346,570
7,518,690
Contract assets
12
1,127,333
1,259,996
Financial assets
269,167
265,531
Prepayments
13
1,097,295
1,035,976
Total current assets
18,078,338
14,806,653
Non-current assets
Property, plant and equipment
14
136,075
132,143
Right-of-use assets
15
1,590,442
2,004,885
Intangibles
16
5,608,587
5,582,914
Total non-current assets
7,335,104
7,719,942
Total assets
25,413,442
22,526,595
Liabilities
Current liabilities
Trade and other payables
18
10,788,337
8,672,121
Contract liabilities
19
1,882,710
1,502,499
Borrowings
20
220,594
3,000,000
Lease liabilities
21
402,219
352,704
Income tax
9,502
69,475
Provisions
22
2,258,679
2,619,364
Total current liabilities
15,562,041
16,216,163
Non-current liabilities
Borrowings
20
2,700,000
-
Lease liabilities
21
1,299,668
1,682,877
Provisions
22
312,046
216,825
Total non-current liabilities
4,311,714
1,899,702
Total liabilities
19,873,755
18,115,865
Net assets
5,539,687
4,410,730
Equity
Issued capital
23
62,846,929
61,788,147
Reserves
24
3,243,499
3,267,676
Accumulated losses
(60,550,741)
(60,645,093)
Total equity
5,539,687
4,410,730
FINANCIAL REPORTS
Pureprofile Ltd
Statement of changes in equity
For the year ended 30 June 2024
The above statement of changes in equity should be read in conjunction with the accompanying notes
86
Issued
capital
Reserves
Accumulated
losses
Total equity
Consolidated
$
$
$
$
Balance at 1 July 2022
60,426,781
3,725,266
(59,790,908)
4,361,139
Loss after income tax expense for the year
-
-
(2,159,208)
(2,159,208)
Other comprehensive loss for the year, net of tax
-
(7,940)
-
(7,940)
Total comprehensive loss for the year
-
(7,940)
(2,159,208)
(2,167,148)
Transactions with owners in their capacity as owners:
Share-based payments (note 37)
-
2,201,739
-
2,201,739
Transfer from share-based payments reserve to accumulated
losses
-
(1,305,023)
1,305,023
-
Share options and rights exercised
1,361,366
(1,346,366)
-
15,000
Balance at 30 June 2023
61,788,147
3,267,676
(60,645,093)
4,410,730
Issued
capital
Reserves
Accumulated
losses
Total equity
Consolidated
$
$
$
$
Balance at 1 July 2023
61,788,147
3,267,676
(60,645,093)
4,410,730
Profit after income tax expense for the year
-
-
94,352
94,352
Other comprehensive income for the year, net of tax
-
84,734
-
84,734
Total comprehensive income for the year
-
84,734
94,352
179,086
Transactions with owners in their capacity as owners:
Share-based payments (note 37)
-
949,871
-
949,871
Share options and rights exercised
1,058,782
(1,058,782)
-
-
Balance at 30 June 2024
62,846,929
3,243,499
(60,550,741)
5,539,687
Pureprofile Ltd
Statement of cash flows
For the year ended 30 June 2024
Consolidated
Note
2024
2023
$
$
The above statement of cash flows should be read in conjunction with the accompanying notes
87
Cash flows from operating activities
Receipts from customers (inclusive of GST)
48,186,918
48,690,536
Payments to suppliers and employees (inclusive of GST)
(44,169,929)
(45,760,364)
4,016,989
2,930,172
Interest received
518
157
Interest and other finance costs paid
(438,298)
(270,610)
Income taxes paid
(85,966)
(91,027)
Net cash from operating activities
38
3,493,243
2,568,692
Cash flows from investing activities
Payments for property, plant and equipment
14
(66,579)
(142,791)
Payments for intangibles
16
(2,236,921)
(2,392,708)
Proceeds from disposal of property, plant and equipment
741
-
Payment for expenses relating to acquisitions
(39,793)
(114,972)
Net cash used in investing activities
(2,342,552)
(2,650,471)
Cash flows from financing activities
Proceeds from issue of shares
-
15,000
Repayment of borrowings
(100,000)
-
Repayment of lease liabilities
(532,941)
(536,937)
Net cash used in financing activities
(632,941)
(521,937)
Net increase/(decrease) in cash and cash equivalents
517,750
(603,716)
Cash and cash equivalents at the beginning of the financial year
4,726,460
5,298,389
Effects of exchange rate changes on cash and cash equivalents
(6,237)
31,787
Cash and cash equivalents at the end of the financial year
10
5,237,973
4,726,460
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
88
Note 1. General information
The financial statements cover Pureprofile Ltd as a group consisting of Pureprofile Ltd and the entities it controlled at the end
of, or during, the year. The financial statements are presented in Australian dollars, which is Pureprofile Ltd's functional and
presentation currency.
Pureprofile Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business are:
Registered office
Principal place of business
Level 5
263 Riley Street
126 Phillip Street
Surry Hills NSW 2010
Sydney NSW 2000
Australia
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 29 August 2024. The
directors have the power to amend and reissue the financial statements.
Note 2. Material accounting policy information
The accounting policies that are material to the group are set out below. The accounting policies adopted are consistent with
those of the previous financial year, 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 2024 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 2024
Note 2. Material accounting policy information (continued)
89
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.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
90
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 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.
Unlike standard services that predominantly rely on survey responses from the in-house built panel, the Data and Insights –
Platform subcategory adopts a revenue strategy centred around the utilisation of internally developed IT products. A key
product within the group's portfolio facilitates the rapid expansion of panel access through strategic partnerships. This strategic
approach allows the group to generate revenue by offering survey responses obtained from partner panels. Additionally, the
group generates revenue by licensing the group's profiling technology platform to publishers and various organisations. These
licensees can harness the platform, along with the profiles it generates, to effectively optimise yields from their websites and
applications. In summary, the group's revenue policy within this subcategory is characterised by a multifaceted approach that
encompasses internally developed products, strategic partnerships, and technology licensing, all aimed at driving revenue
growth.
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.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
●
when the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
●
when the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
91
Pureprofile Ltd. (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax consolidated group
with tax funding agreements, under the tax consolidation regime, effective 7 November 2014. The head entity and each
subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax
consolidated group has applied the 'separate taxpayer within group' approach in determining the appropriate amount of taxes
to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax
consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the
intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a
contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
Discontinued operations
A discontinued operation is a component of the group that has been disposed of or is classified as held for sale and that
represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to dispose
of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of
discontinued operations are presented separately on the face of the statement of profit or loss and other comprehensive
income.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the group's
normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the group's normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional
right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as
non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 74
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.
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 recognised net of any expected credit losses. 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.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
92
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.
Intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at
the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets
are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently
measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the
derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of
the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected
pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.
Goodwill
Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for impairment,
or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less
accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.
Software
Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute to
future period financial benefits through revenue generation and/or cost reductions are capitalised. Costs capitalised include
external direct costs of materials and service and employee costs. Software development costs include only those costs
directly attributable to the development phase and are only recognised following completion of technical feasibility and where
the group has an intention and ability to use the asset. Software costs are amortised on a straight-line basis over the period
of their expected benefit, being their finite life of between four and five years.
Customer contracts and partner network arrangements
Acquired customer contracts and partner network arrangements are 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.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
93
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 69 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.
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.
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.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
94
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, rights (share rights and performance rights) or options over shares, that are provided to employees in exchange for
the rendering of services.
The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined using
the Black-Scholes or Monte Carlo 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.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
95
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date; and assumes that the transaction will take place either: in the principal market;
or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming
they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best
use.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers
between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value
measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not
available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and
reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is
undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable,
with external sources of data.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments
or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued,
or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the
acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the
proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.
On the acquisition of a business, the group assesses the financial assets acquired and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic conditions, the group's operating or
accounting policies and other pertinent conditions in existence at the acquisition-date.
Where the business combination is achieved in stages, the group remeasures its previously held equity interest in the acquiree
at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in
profit or loss.
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.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
96
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.
i-Link Research Solutions Pty Ltd ('i-Link')
The business combination was made after year end and before the financial statements are authorised for issue. AASB 3
'Business Combination' requires disclosure of details of the business combination unless the initial accounting is incomplete.
The details of the business combination are disclosed in note 33.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Pureprofile Ltd, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial
position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Rounding of amounts
The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191,
issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this Report have been
rounded to the nearest dollar.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the group for the annual reporting period ended 30 June 2024. The group's assessment of
the impact of these new or amended Accounting Standards and Interpretations, most relevant to the group, are set out below.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 2. Material accounting policy information (continued)
97
IFRS 18 Presentation and Disclosure in Financial Statements
This standard is applicable to annual reporting periods beginning on or after 1 January 2027. The standard replaces IAS 1
'Presentation of Financial Statements', with many of the original disclosure requirements retained and there will be no impact
on the recognition and measurement of items in the financial statements. But the standard will affect presentation and
disclosure in the financial statements, including introducing five categories in the statement of profit or loss and other
comprehensive income: operating, investing, financing, income taxes and discontinued operations. The standard introduces
two mandatory sub-totals in the statement: 'Operating profit' and 'Profit before financing and income taxes'. There are also
new disclosure requirements for 'management-defined performance measures', such as earnings before interest, taxes,
depreciation and amortisation ('EBITDA') or 'adjusted profit'. The standard provides enhanced guidance on grouping of
information (aggregation and disaggregation), including whether to present this information in the primary financial statements
or in the notes. The group will adopt this standard from 1 July 2027 and it is expected that there will be a significant change
to the layout of the statement of profit or loss and other comprehensive income.
AASB 2020-1 Amendments to Australian Accounting Standards - Classification of Liabilities as Current or Non-Current and
AASB 2022-6 Amendments to Australian Accounting Standards - Non-current Liabilities with Covenants
AASB 2020-1 was issued in March 2020 and is applicable to annual periods beginning on or after 1 January 2024, as extended
by AASB 2020-6. Early adoption is permitted. AASB 2022-6 was issued in December 2022 and is applicable to annual periods
beginning on or after 1 January 2024. Early adoption is permitted where AASB 2020-1 is also early adopted.
These standards amend AASB 101 ‘Presentation of Financial Statements’ to clarify requirements for the presentation of
liabilities in the statement of financial position as current or non-current. The amendments clarify that a liability is classified as
non-current if an entity has the right at the end of the reporting period to defer settlement of the liability for at least 12 months
after the reporting period. If the deferral right is subject to the entity complying with covenants in the loan arrangement based
on information up to and including reporting date, the deferral right will exist where the entity is able to comply with the covenant
on or before the end of the reporting date even if compliance is assessed after the reporting date. The deferral right will be
deemed to exist at reporting date if the entity is required to comply with the covenant only after the reporting date based on
post-reporting date information. Additional disclosure is required about loan arrangements classified as non-current liabilities
in such circumstances which enables users of financial statements to understand the risk that the liabilities could become
repayable within twelve months after the reporting period. Classification of a liability as non-current is unaffected by the
likelihood that the entity will exercise its right to defer settlement of the liability for at least 12 months after the reporting date
or even if the entity settles the liability prior to issue of the financial statements. The meaning of settlement of a liability is also
clarified.
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.
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 the Black-Scholes or Monte Carlo
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 and forward-looking
information that is available. The allowance for expected credit losses, as disclosed in note 11, is calculated based on the
information available at the time of preparation. The actual credit losses in future years may be higher or lower.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 3. Critical accounting judgements, estimates and assumptions (continued)
98
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 requirements 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.
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.
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.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 4. Operating segments (continued)
99
These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are
identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of
resources. There is no aggregation of operating segments.
Other segments represent the corporate headquarters of the group.
The CODM reviews adjusted EBITDA (earnings before interest, tax, depreciation and amortisation, adjusted for non-cash and
significant items). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in
the financial statements.
Types of products and services
The principal products and services are as follows:
Data & Insights
Conducting market research and accessing insights and campaigns through our proprietary
self-service platform
Pure.amplify Media AU
Buying and selling online advertising inventory on behalf of advertisers and publishers
Pure.amplify Media UK
Generates leads for clients through its consumer database and proprietary and partner
digital assets
Major customers
During the years ended 30 June 2024 and 30 June 2023, no single customer contributed more than 10% to the group's
external revenue.
Discontinued operations
During the prior year, the Pure.amplify Media AU and Pure.amplify Media UK segments ceased operations. Refer note 7.
Operating segment information (continuing and discontinued operations)
Data &
Insights
Pure.amplify
Media AU
Pure.amplify
Media UK
Other
segments
Total
Consolidated - 2024
$
$
$
$
$
Revenue
Sales to external customers
48,068,926
327
-
-
48,069,253
Interest
-
-
-
518
518
Total revenue
48,068,926
327
-
518
48,069,771
EBITDA excluding significant items
14,065,843
(41,000)
28,305
(9,646,172)
4,406,976
Depreciation and amortisation
(2,172,178)
-
-
(522,166)
(2,694,344)
Share-based payment expense
-
-
-
(949,871)
(949,871)
Restructuring and acquisition costs
-
-
-
(112,388)
(112,388)
Loss on disposal of intangible assets
(39,070)
-
-
-
(39,070)
Interest
-
-
-
518
518
Finance costs
-
-
-
(439,408)
(439,408)
Professional fees and payroll tax on share-
based payments
-
-
-
(53,930)
(53,930)
Profit/(loss) before income tax expense
11,854,595
(41,000)
28,305
(11,723,417)
118,483
Income tax expense
(24,131)
Profit after income tax expense
94,352
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 4. Operating segments (continued)
100
Data &
Insights
Pure.amplify
Media AU
Pure.amplify
Media UK
Other
segments
Total
Consolidated - 2023
$
$
$
$
$
Revenue
Sales to external customers
43,649,702
3,167,257
143,653
-
46,960,612
Interest
-
-
-
157
157
Total revenue
43,649,702
3,167,257
143,653
157
46,960,769
EBITDA excluding significant items
12,409,787
(211,470)
(73,501)
(7,825,628)
4,299,188
Depreciation and amortisation
(2,470,804)
-
(8,286)
(481,901)
(2,960,991)
Share-based payment expense
-
-
-
(2,201,739)
(2,201,739)
Restructuring and acquisition costs
-
(353,045)
-
(114,972)
(468,017)
Loss on disposal of intangible assets
(105,949)
-
-
-
(105,949)
Interest
-
-
-
157
157
Finance costs
-
-
(2)
(526,084)
(526,086)
Professional fees and payroll tax on share-
based payments
-
-
-
(105,909)
(105,909)
Profit/(loss) before income tax expense
9,833,034
(564,515)
(81,789)
(11,256,076)
(2,069,346)
Income tax expense
(89,862)
Loss after income tax expense
(2,159,208)
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 (2023: 3) regions. The sales revenue based on each
client region is as follows:
Consolidated
2024
2023
$
$
Sales to external customers
Australasia
29,982,085
32,918,554
Europe
9,700,246
8,246,140
United States
8,386,922
5,795,918
48,069,253
46,960,612
Note 5. Revenue
Consolidated
2024
2023
$
$
From continuing operations
Data & Insights
39,103,668
38,888,661
Data & Insights - Platform
8,965,258
4,761,041
Revenue from continuing operations
48,068,926
43,649,702
Disaggregation of revenue
Refer to note 4 'Operating segments' for analysis of revenue by major product line and geographical region.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 5. Revenue (continued)
101
During the financial years ended 30 June 2024 and 30 June 2023, all revenue was recognised based on services transferred
over time.
Note 6. Other income
Consolidated
2024
2023
$
$
Net gain on disposal of property, plant and equipment
741
1,558
Miscellaneous
90,963
96,365
Other income
91,704
97,923
Note 7. Discontinued operations
Description
The discontinued operations represented Pureprofile Performance Ltd (UK) (Pure.amplify Media UK business) that ceased
activity in the first half of financial year 2023 and Pure.amplify Media AU (Pure.amplify Media Australia business) that ceased
activity in the second half of financial year 2023.
Financial performance information
Consolidated
2024
2023
$
$
Revenue from contracts with customers
327
3,310,910
Other income
-
15,723
Direct cost of sales
(14,333)
(2,069,108)
Employee benefits expense
(2,038)
(1,414,043)
Foreign exchange loss
(87,970)
(2,370)
Depreciation and amortisation expense
-
(8,286)
Loss on disposal of property, plant and equipment
-
(9,630)
Technology, engineering and licence fees
(4,854)
(77,354)
Restructuring and acquisition costs
-
(353,045)
Occupancy income
106,476
-
Other expenses
(10,303)
(39,099)
Finance costs
-
(2)
Total expenses
(13,022)
(3,972,937)
Loss before income tax expense
(12,695)
(646,304)
Income tax expense
-
-
Loss after income tax expense from discontinued operations
(12,695)
(646,304)
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
102
Note 8. Expenses
Consolidated
2024
2023
$
$
Profit/(loss) before income tax from continuing operations includes the following specific
expenses:
Depreciation
Right-of-use assets
459,589
439,326
Office and computer equipment
62,577
42,575
Total depreciation
522,166
481,901
Amortisation
Software
2,037,713
2,092,628
Membership base
134,465
378,176
Total amortisation
2,172,178
2,470,804
Total depreciation and amortisation
2,694,344
2,952,705
Finance costs
Interest and finance charges paid/payable on borrowings
283,892
358,110
Interest and finance charges paid/payable on lease liabilities
155,516
167,974
Finance costs expensed
439,408
526,084
Leases
Short-term lease payments
37,841
55,612
Low-value assets lease payments
-
3,300
37,841
58,912
Superannuation expense
Defined contribution superannuation expense
1,016,918
1,016,171
Employee benefits expense excluding superannuation
Employee benefits expense excluding superannuation
16,275,078
13,941,365
Pureprofile Ltd
Notes to the financial statements
30 June 2024
103
Note 9. Income tax expense
Consolidated
2024
2023
$
$
Income tax expense
Current tax
23,781
91,118
Adjustment recognised for prior periods
350
(1,256)
Aggregate income tax expense
24,131
89,862
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit/(loss) before income tax expense from continuing operations
131,178
(1,423,042)
Loss before income tax expense from discontinued operations
(12,695)
(646,304)
118,483
(2,069,346)
Tax at the statutory tax rate of 30%
35,545
(620,804)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Entertainment expenses
22,771
19,827
Share-based payments
274,961
660,522
Merger and acquisition expenditure
17,458
-
Disposal of intangible assets
11,721
31,785
Sundry items
44,747
2,990
407,203
94,320
Adjustment recognised for prior periods
350
(1,256)
Current year tax losses not recognised
200,990
80,399
Prior year tax losses not recognised now recouped
(514,439)
(49,258)
Difference in overseas tax rates
(69,973)
(34,343)
Income tax expense
24,131
89,862
Consolidated
2024
2023
$
$
Tax losses not recognised
Potential unused tax benefit for which no deferred tax asset has been recognised
898,741
1,355,500
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 10. Cash and cash equivalents
Consolidated
2024
2023
$
$
Current assets
Cash at bank
5,237,973
4,726,460
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
104
Note 11. Trade and other receivables
Consolidated
2024
2023
$
$
Current assets
Trade receivables
10,543,892
7,687,681
Less: Allowance for expected credit losses
(197,322)
(168,991)
10,346,570
7,518,690
Allowance for expected credit losses
The group has recognised a loss of $28,331 (2023: $132,813) in profit or loss in respect of impairment of receivables for the
year ended 30 June 2024.
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rate
Carrying amount
Allowance for expected
credit losses
2024
2023
2024
2023
2024
2023
Consolidated
%
%
$
$
$
$
Not overdue
-
-
7,834,845
5,903,194
-
-
0 to 3 months overdue
-
-
2,120,898
1,273,795
-
-
3 to 6 months overdue
8.2977%
17.6465%
176,950
120,732
14,683
21,305
Over 6 months overdue
44.4161%
37.8721%
411,199
389,960
182,639
147,686
10,543,892
7,687,681
197,322
168,991
Movements in the allowance for expected credit losses are as follows:
Consolidated
2024
2023
$
$
Opening balance
168,991
66,907
Additional provisions recognised
28,331
132,813
Receivables written off during the year as uncollectible
-
(30,729)
Closing balance
197,322
168,991
Note 12. Contract assets
Consolidated
2024
2023
$
$
Current assets
Contract assets
1,127,333
1,259,996
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 12. Contract assets (continued)
105
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and previous financial year are set out below:
Consolidated
2024
2023
$
$
Opening balance
1,259,996
685,778
Additions
1,127,251
1,261,212
Cumulative catch-up adjustments
(6,378)
33,826
Transfer to trade receivables
(1,253,536)
(720,820)
Closing balance
1,127,333
1,259,996
Allowance for expected credit losses
The allowance for expected credit losses on contract assets for the year ended 30 June 2024 is $nil (2023: $nil).
Note 13. Prepayments
Consolidated
2024
2023
$
$
Current assets
Prepayments
1,097,295
1,035,976
Note 14. Property, plant and equipment
Consolidated
2024
2023
$
$
Non-current assets
Office and computer equipment - at cost
242,847
466,795
Less: Accumulated depreciation
(106,772)
(334,652)
136,075
132,143
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 14. Property, plant and equipment (continued)
106
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Office and
computer
equipment
Consolidated
$
Balance at 1 July 2022
77,503
Additions
142,791
Disposals
(38,652)
Exchange differences
1,362
Depreciation expense
(50,861)
Balance at 30 June 2023
132,143
Additions
66,579
Disposals
-
Exchange differences
(70)
Depreciation expense
(62,577)
Balance at 30 June 2024
136,075
Note 15. Right-of-use assets
Consolidated
2024
2023
$
$
Non-current assets
Buildings - right-of-use
2,663,058
2,637,308
Less: Accumulated depreciation
(1,072,616)
(632,423)
1,590,442
2,004,885
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.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 15. Right-of-use assets (continued)
107
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Buildings -
right-of-use
Consolidated
$
Balance at 1 July 2022
1,107,139
Additions
1,347,580
Exchange differences
(10,508)
Depreciation expense
(439,326)
Balance at 30 June 2023
2,004,885
Additions
104,978
Lease modification
(72,352)
Exchange differences
12,520
Depreciation expense
(459,589)
Balance at 30 June 2024
1,590,442
For other AASB 16 lease disclosures refer to:
●
note 8 for depreciation on right-of-use assets, interest on lease liabilities and other lease expenses;
●
note 21 for lease liabilities at the reporting date;
●
note 26 for undiscounted future lease commitments; and
●
consolidated statement of cash flows for repayment of lease liabilities.
Note 16. Intangibles
Consolidated
2024
2023
$
$
Non-current assets
Goodwill - at cost
15,503,285
15,503,285
Less: Impairment
(15,503,285)
(15,503,285)
-
-
Software - at cost
33,217,601
31,033,378
Less: Accumulated amortisation
(23,010,290)
(20,986,205)
Less: Impairment
(4,598,724)
(4,598,724)
5,608,587
5,448,449
Customer contracts and partner network arrangement - at cost
3,622,000
3,622,000
Less: Accumulated amortisation
(1,168,990)
(1,168,990)
Less: Impairment
(2,453,010)
(2,453,010)
-
-
Membership base - at cost
2,694,410
2,694,410
Less: Accumulated amortisation
(2,694,410)
(2,559,945)
-
134,465
5,608,587
5,582,914
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 16. Intangibles (continued)
108
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Membership
Software
base
Total
Consolidated
$
$
$
Balance at 1 July 2022
5,254,318
512,641
5,766,959
Additions
2,392,708
-
2,392,708
Disposals
(105,949)
-
(105,949)
Amortisation expense
(2,092,628)
(378,176)
(2,470,804)
Balance at 30 June 2023
5,448,449
134,465
5,582,914
Additions
2,236,921
-
2,236,921
Disposals
(39,070)
-
(39,070)
Amortisation expense
(2,037,713)
(134,465)
(2,172,178)
Balance at 30 June 2024
5,608,587
-
5,608,587
Note 17. Deferred tax
Consolidated
2024
2023
$
$
Non-current assets
Deferred tax asset comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Allowance for expected credit losses
13,594
3,924
Prepayments
(3,167)
(2,862)
Capitalised expenditure
(266,199)
(232,774)
Employee benefits
67,859
71,418
Accrued expenses and other payables
(140,027)
(71,857)
Provision for reward redemptions
90,437
135,675
Business related capital expenditure
234,046
136,814
Unrealised foreign exchange (gain)/loss
3,457
(40,338)
Deferred tax asset
-
-
Movements:
Opening balance
-
-
Credited to profit or loss (note 9)
-
-
Closing balance
-
-
The group has unused tax losses of $898,741 (2023: $1,355,500) 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.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
109
Note 18. Trade and other payables
Consolidated
2024
2023
$
$
Current liabilities
Trade payables
4,331,341
4,061,356
Accrued expenses
5,819,546
3,858,843
Other payables
637,450
751,922
10,788,337
8,672,121
Note 19. Contract liabilities
Consolidated
2024
2023
$
$
Current liabilities
Contract liabilities
1,882,710
1,502,499
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and previous financial year are set out below:
Consolidated
2024
2023
$
$
Opening balance
1,502,499
954,838
Payments received in advance
1,912,665
1,431,443
Transfer to revenue
(1,450,369)
(895,069)
Disposals
(79,945)
-
Foreign exchange differences
(2,140)
11,287
Closing balance
1,882,710
1,502,499
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 $1,882,710 as at 30 June 2024 ($1,502,499 as at 30 June 2023) and is expected to be recognised as
revenue in future periods as follows:
Consolidated
2024
2023
$
$
Within 6 months
1,612,618
1,385,898
6 to 12 months
270,092
116,601
1,882,710
1,502,499
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
110
Note 20. Borrowings
Consolidated
2024
2023
$
$
Current liabilities
Loans
200,000
3,000,000
Interest accrued on loans
20,594
-
220,594
3,000,000
Non-current liabilities
Loans
2,700,000
-
Effective 30 November 2023, the existing facility of $3,000,000 was refinanced with the Commonwealth Bank of Australia.
The new facility's pricing structure encompasses a line fee of 4.20% per annum, calculated on the facility limit and payable in
arrears on the first day of each calendar quarter. Additionally, interest on the loan balance is computed on the last calendar
day of each month, based on a variable rate tied to the BBSY rate and payable the next day, utilising a 365-day year. The
facility is scheduled to terminate on 30 November 2026. As part of the facility terms, a principal repayment of $50,000 is
required on the last day of each calendar quarter. As of 30 June 2024, $100,000 in principal has been repaid.
Total secured liabilities
The total secured liabilities (current and non-current) are as follows:
Consolidated
2024
2023
$
$
Loans
2,920,594
3,000,000
Assets pledged as security
The loans are secured by the assets of the group.
Financing arrangements
At the reporting date to the following lines of credit were available:
Consolidated
2024
2023
$
$
Total facilities
Loans
3,000,000
3,000,000
Used at the reporting date
Loans
2,900,000
3,000,000
Unused at the reporting date
Loans
100,000
-
Pureprofile Ltd
Notes to the financial statements
30 June 2024
111
Note 21. Lease liabilities
Consolidated
2024
2023
$
$
Current liabilities
Lease liability
402,219
352,704
Non-current liabilities
Lease liability
1,299,668
1,682,877
Refer to note 26 for further information on financial instruments.
Note 22. Provisions
Consolidated
2024
2023
$
$
Current liabilities
Employee benefits
797,538
795,161
Reward redemption
1,461,141
1,824,203
2,258,679
2,619,364
Non-current liabilities
Employee benefits
219,973
125,561
Lease make-good
92,073
91,264
312,046
216,825
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.
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.
Movements in provisions
Movements in each class of provision during the current financial year, other than employee benefits, are set out below:
Reward
redemption
Lease make-
good
Consolidated - 2024
$
$
Carrying amount at the start of the year
1,824,203
91,264
Additional provisions recognised
7,133,541
-
Amounts used
(6,705,859)
-
Payments
(253,465)
-
Exchange differences
(1,535)
809
Unused amounts reversed
(535,744)
-
Carrying amount at the end of the year
1,461,141
92,073
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
112
Note 23. Issued capital
Consolidated
2024
2023
2024
2023
Shares
Shares
$
$
Ordinary shares - fully paid
1,159,374,658
1,133,322,342
62,846,929
61,788,147
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
1 July 2022
1,107,022,671
60,426,781
Shares issued on exercise of performance rights*
17 November 2022
2,816,667
$0.060
170,136
Shares issued on exercise of share options
20 December 2022
500,000
$0.034
17,042
Shares issued on exercise of share options*
23 December 2022
3,102,862
$0.031
95,300
Shares issued on exercise of share options*
23 December 2022
3,894,973
$0.094
366,844
Shares issued on exercise of share options*
23 December 2022
1,386,422
$0.102
141,350
Shares issued on exercise of share options*
20 January 2023
5,611,560
$0.030
167,140
Shares issued on exercise of share options*
20 January 2023
739,293
$0.029
21,408
Shares issued on exercise of share options*
20 January 2023
1,999,604
$0.031
62,392
Shares issued on exercise of share options*
20 January 2023
876,086
$0.091
79,899
Shares issued on exercise of share options*
20 January 2023
1,309,648
$0.107
139,542
Shares issued on exercise of share rights
14 February 2023
15,653
$0.064
1,000
Shares issued on exercise of share rights
14 February 2023
15,653
$0.064
1,000
Shares issued on exercise of performance rights
3 April 2023
2,468,750
$0.024
59,250
Shares issued on exercise of performance rights
3 April 2023
1,562,500
$0.025
39,063
Balance
30 June 2023
1,133,322,342
61,788,147
Shares issued on exercise of share rights
14 September 2023
1,750,000
$0.024
42,000
Shares issued on exercise of share options
14 September 2023
709,678
$0.043
30,512
Shares issued on exercise of performance rights
22 November 2023
2,816,669
$0.060
170,136
Shares issued on exercise of performance rights
22 November 2023
12,299,458
$0.042
516,577
Shares issued on exercise of performance rights
22 November 2023
4,608,511
$0.033
152,081
Shares issued on exercise of performance rights
22 November 2023
2,359,286
$0.040
94,371
Shares issued on exercise of performance rights
22 November 2023
1,094,084
$0.033
36,105
Shares issued on exercise of share rights
8 March 2024
414,630
$0.041
17,000
Balance
30 June 2024
1,159,374,658
62,846,929
*
The exercise price is a notional amount that is not paid in cash.
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.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 23. Issued capital (continued)
113
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt.
The group would look to raise capital when an opportunity to invest in a business or company was seen as value adding
relative to the current company's share price at the time of the investment.
The capital risk management policy remains unchanged from the previous period.
Note 24. Reserves
Consolidated
2024
2023
$
$
Foreign currency reserve
(144,089)
(228,822)
Share-based payments reserve
3,387,588
3,496,498
3,243,499
3,267,676
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:
Foreign
Share-based
currency
payments
Total
Consolidated
$
$
$
Balance at 1 July 2022
(220,883)
3,946,149
3,725,266
Foreign currency translation
(7,940)
-
(7,940)
Share-based payments
-
2,201,739
2,201,739
Transfer from share-based payments reserve to accumulated losses
-
(1,305,023)
(1,305,023)
Share options and rights exercised
-
(1,346,366)
(1,346,366)
Balance at 30 June 2023
(228,823)
3,496,499
3,267,676
Foreign currency translation
84,734
-
84,734
Share-based payments
-
949,871
949,871
Share options and rights exercised
-
(1,058,782)
(1,058,782)
Balance at 30 June 2024
(144,089)
3,387,588
3,243,499
Note 25. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
114
Note 26. Financial instruments
Financial risk management objectives
The group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest
rate risk), credit risk and liquidity risk. The group's overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the group. These methods include
sensitivity analysis in the case of interest rate, foreign exchange and other price risks and ageing analysis for credit risk.
Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors
('the Board'). These policies include identification and analysis of the risk exposure of the group and appropriate procedures,
controls and risk limits. Finance identifies, evaluates and hedges financial risks within the group's operating units. Finance
reports to the Board on a monthly basis.
Market risk
Foreign currency risk
The group operates internationally and is exposed to foreign currency risk from various currency exposures, primarily with
respect to the US dollar and GB Pound.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash
flow forecasting.
The carrying amount of the group's foreign currency denominated financial assets and financial liabilities at the reporting date
were not significant.
Price risk
The group is not exposed to any significant price risk.
Interest rate risk
The group's main interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the group to
interest rate risk. Borrowings issued at fixed rates expose the group to fair value risk.
An analysis by remaining contractual maturities is shown in the liquidity section below.
As at the 30 June 2024 and 30 June 2023, 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.
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.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 26. Financial instruments (continued)
115
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.
Financing arrangements
Unused borrowing facilities at the reporting date:
Consolidated
2024
2023
$
$
Loans
100,000
-
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.
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
Consolidated - 2024
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade payables
-
4,331,341
-
-
-
4,331,341
Other payables
-
637,450
-
-
-
637,450
Reward redemption provision
-
1,461,141
-
-
-
1,461,141
Interest-bearing - fixed rate
Loans
8.64%
463,260
3,014,851
-
-
3,478,111
Lease liability
8.42%
525,029
430,691
961,242
126,505
2,043,467
Total non-derivatives
7,418,221
3,445,542
961,242
126,505
11,951,510
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
Consolidated - 2023
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade payables
-
4,061,356
-
-
-
4,061,356
Other payables
-
751,922
-
-
-
751,922
Reward redemption provision
-
1,824,203
-
-
-
1,824,203
Interest-bearing - fixed rate
Loans
8.50%
3,302,151
-
-
-
3,302,151
Lease liability
8.37%
507,177
503,075
1,182,505
338,505
2,531,262
Total non-derivatives
10,446,809
503,075
1,182,505
338,505
12,470,894
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Note 27. Fair value measurement
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade
receivables and trade 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 instruments.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
116
Note 28. 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:
Consolidated
2024
2023
$
$
Short-term employee benefits
1,346,278
1,007,129
Post-employment benefits
68,120
119,519
Share-based payments
497,140
1,121,081
1,911,538
2,247,729
Note 29. Remuneration of auditors
During the financial year, the following fees were paid or payable for services provided by Grant Thornton Australia, the auditor
of the company, and unrelated firms:
Consolidated
2024
2023
$
$
Audit services - Grant Thornton Australia
Audit or review of the financial statements
201,700
202,476
Other services - Grant Thornton Australia
Taxation services
31,100
106,695
232,800
309,171
Audit services - other firms
Audit or review of the financial statements
56,536
48,400
Other services - other firms
Taxation services
29,501
38,173
Assistance in financial due diligence
7,442
-
36,943
38,173
93,479
86,573
Note 30. Contingent liabilities
The group had no contingent liabilities as at 30 June 2024 (2023: none).
Note 31. 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 28.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 31. Related party transactions (continued)
117
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
2024
2023
$
$
Payment for goods and services:
Payment for expenses reimbursed to key management personnel
8,672
6,169
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 32. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2024
2023
$
$
Loss after income tax
(1,019,768)
(3,038,135)
Total comprehensive loss
(1,019,768)
(3,038,135)
Statement of financial position
Parent
2024
2023
$
$
Total current assets
3,342
21,742
Total assets
10,434,934
10,453,410
Total current liabilities
-
3,002,841
Total liabilities
9,281,567
9,230,074
Equity
Issued capital
62,847,887
61,789,105
Foreign currency reserve
(2,382)
(2,311)
Share-based payments reserve
3,387,587
3,496,499
Accumulated losses
(65,079,725)
(64,059,957)
Total equity
1,153,367
1,223,336
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 2024 and 30 June 2023.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 32. Parent entity information (continued)
118
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2024 and 30 June 2023.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 and 30 June 2023.
Material accounting policy information
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 33. Business combination
Acquisition of i-Link Research Solutions Pty Ltd
On 1 July 2024, the group completed the acquisition from i-Link Research Solutions Pty Ltd ('i-Link') for a total consideration
of $1.25 million. Established in 2001, i-Link is an Australian-owned independent online field and data collection company
based in Sydney. The assets acquired were selected to expand Pureprofile's market share in Australia. The goodwill of
$1,117,971 represents the anticipated synergistic benefits of integrating these assets into Pureprofile's operations. This
includes the value derived from i-Link's seasoned team and robust client relationships. Additionally, the LiveTribe panel, part
of the acquired assets, complements Pureprofile's offerings, enhancing its market stance. Goodwill also embodies expected
operational efficiencies and cost savings from consolidating office locations and reducing third-party costs, as well as the
potential for expanded services and market reach. These elements highlight the strategic value added by the acquisition,
surpassing the worth of the tangible assets involved.
Details of the acquisition are as follows:
Fair value
$
Brand names
61,899
Customer relationships
416,588
Research panel
225,511
Deferred tax liability
(211,199)
Employee benefits
(143,796)
Reward redemption
(216,974)
Net assets acquired
132,029
Goodwill
1,117,971
Acquisition-date fair value of the total consideration transferred
1,250,000
Representing:
Cash paid or payable to vendor
1,250,000
Total acquisition costs in relation to the acquisition of i-Link of $19,389 will be expensed to the profit or loss during the year
ended 30 June 2025.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
119
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:
Ownership interest
Principal place of business /
2024
2023
Name
Country of incorporation
%
%
Pureprofile.com, Inc.
USA
100%
100%
Pureprofile Australia Pty Limited
Australia
100%
100%
Pureprofile Global Pty Ltd
Australia
100%
100%
Pureprofile UK Ltd
United Kingdom
100%
100%
Pureprofile US Inc.
USA
100%
100%
ACN 605 146 567 PTY LTD
Australia
100%
100%
Sparc Media sp. Z o.o.
Poland
100%
100%
Pureprofile NZ Ltd
New Zealand
100%
100%
Pureprofile Performance Ltd*
United Kingdom
-
100%
Pureprofile Singapore Pte. Ltd
Singapore
100%
100%
*
Deregistered on 12 September 2023
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
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'.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 35. Deed of cross guarantee (continued)
120
Set out below is a consolidated statement of profit or loss and other comprehensive income and statement of financial position
of the 'Closed Group'.
2024
2023
Statement of profit or loss and other comprehensive income
$
$
Revenue
44,962,781
44,356,392
Other income
85,115
41,494
Interest revenue calculated using the effective interest method
518
157
Foreign exchange gain
27,156
-
Direct costs of sales
(20,476,628)
(21,133,973)
Panel expenses
(620,186)
(815,622)
Employee benefits expense
(13,585,929)
(12,885,762)
Foreign exchange loss
-
(52,763)
Depreciation and amortisation expense
(2,449,144)
(2,777,662)
Loss on disposal of intangible assets
(39,070)
(105,949)
Technology, engineering and licence fees
(1,973,894)
(1,522,307)
Share-based payment expense
(949,871)
(2,201,739)
Professional fees and payroll tax on share-based payments
(53,930)
(86,710)
Restructuring and acquisition costs
(112,388)
(435,976)
Occupancy costs
(260,866)
(218,538)
Other expenses
(4,004,862)
(4,268,538)
Finance costs
(388,048)
(474,233)
Loss on disposal of investment in subsidiaries
(4)
-
Profit/(loss) before income tax expense
160,750
(2,581,729)
Income tax expense
-
-
Profit/(loss) after income tax expense
160,750
(2,581,729)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive profit/(loss) for the year
160,750
(2,581,729)
2024
2023
Equity - accumulated losses
$
$
Accumulated losses at the beginning of the financial year
(58,320,899)
(57,044,193)
Profit/(loss) after income tax expense
160,750
(2,581,729)
Transfer from share-based payments reserve
-
1,305,023
Accumulated losses at the end of the financial year
(58,160,149)
(58,320,899)
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 35. Deed of cross guarantee (continued)
121
2024
2023
Statement of financial position
$
$
Current assets
Cash and cash equivalents
4,468,470
3,533,362
Trade and other receivables
9,807,188
7,153,262
Contract assets
1,063,427
1,192,856
Financial assets
162,535
162,535
Prepayments
874,244
882,175
16,375,864
12,924,190
Non-current assets
Property, plant and equipment
107,583
86,074
Right-of-use assets
1,042,690
1,270,512
Intangibles
5,608,587
5,582,912
Financial assets
765,461
765,465
Related party receivables
6,030,974
6,416,203
13,555,295
14,121,166
Total assets
29,931,159
27,045,356
Current liabilities
Trade and other payables
9,933,835
7,837,904
Contract liabilities
1,767,116
1,384,122
Borrowings
220,594
3,000,000
Lease liabilities
192,741
171,140
Provisions
1,960,658
2,263,924
Related party payables
3,934,112
4,166,025
18,009,056
18,823,115
Non-current liabilities
Borrowings
2,700,000
-
Lease liabilities
981,897
1,174,620
Provisions
260,973
166,561
3,942,870
1,341,181
Total liabilities
21,951,926
20,164,296
Net assets
7,979,233
6,881,060
Equity
Issued capital
62,847,888
61,789,106
Reserves
3,291,494
3,412,853
Accumulated losses
(58,160,149)
(58,320,899)
Total equity
7,979,233
6,881,060
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
122
Note 36. Earnings per share
Consolidated
2024
2023
$
$
Profit/(loss) per share for profit/(loss) from continuing operations
Profit/(loss) after income tax attributable to the owners of Pureprofile Ltd
107,047
(1,512,904)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
1,149,395,879
1,118,994,477
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
(745,187)
-
Performance rights over ordinary shares
63,364,654
-
Weighted average number of ordinary shares used in calculating diluted earnings per share
1,212,015,346
1,118,994,477
Cents
Cents
Basic earnings per share
0.01
(0.14)
Diluted earnings per share
0.01
(0.14)
Consolidated
2024
2023
$
$
Loss per share for loss from discontinued operations
Loss after income tax attributable to the owners of Pureprofile Ltd
(12,695)
(646,304)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
1,212,015,346
1,118,994,477
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
-
-
Performance rights over ordinary shares
-
-
Weighted average number of ordinary shares used in calculating diluted earnings per share
1,212,015,346
1,118,994,477
Cents
Cents
Basic earnings per share
-
(0.06)
Diluted earnings per share
-
(0.06)
Consolidated
2024
2023
$
$
Profit/(loss) per share for profit/(loss)
Profit/(loss) after income tax attributable to the owners of Pureprofile Ltd
94,352
(2,159,208)
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 36. Earnings per share (continued)
123
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
1,149,395,879
1,118,994,477
Adjustments for calculation of diluted earnings per share:
Options over ordinary shares
(745,187)
-
Performance rights over ordinary shares
63,364,654
-
Weighted average number of ordinary shares used in calculating diluted earnings per share
1,212,015,346
1,118,994,477
Cents
Cents
Basic earnings per share
0.01
(0.19)
Diluted earnings per share
0.01
(0.19)
Note 37. Share-based payments
A long term incentive plan ('LTI') and short term incentive plan ('STI') have been established by the group, whereby the group
may, at the discretion of the Board, grant options or performance rights or share rights over ordinary shares in the company
to certain key management personnel and employees of the group. The existing options are issued for consideration and are
granted in accordance with guidelines established by the Board. The existing rights are issued for nil consideration and are
granted in accordance with performance guidelines established by the Board. The general terms under which the options and
rights are granted are summarised in the Remuneration report section of the Directors' report.
The share-based payments expense for the financial year was $949,871 (2023: $2,201,739).
Performance rights
On 13 December 2022 and 20 December 2022, the company issued a total of 47,227,344 performance rights to its key
management personnel and other executives, which consists of 25,256,404 STI performance rights and 21,970,940 LTI
performance rights.
The number of STI performance rights that will be eligible to vest is based on performance against set objectives in five
strategic priorities: revenue growth, profitability, key clients and partnerships, growth initiatives, and technology and innovation.
The performance will be measured during the period from 1 July 2022 to 30 June 2023 (STI performance period). Once the
performance against these strategic priorities has been evaluated, the number of eligible awards will be determined, and the
STI unlisted performance rights will vest following the release of the FY23 audited results.
Subject to the performance hurdle outlined below, participants' LTI performance rights will vest (Eligible Awards) equally over
three years following the release of the FY23, FY24 and FY25 audited results. The number of eligible LTI awards which vest
will be determined by the company’s total shareholder return ('TSR') in comparison to the ASX Small Ordinaries Index ('Index')
at the end of the third year i.e. 30 June 2025.
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 37. Share-based payments (continued)
124
Share options
Set out below are summaries of options granted by the company:
2024
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
29/01/2021
01/04/2026
$0.020
4,930,156
-
-
-
4,930,156
29/01/2021
01/04/2026
$0.020
2,000,000
-
(2,000,000)
-
-
29/01/2021
01/04/2026
$0.020
10,955,903
-
-
-
10,955,903
01/04/2021
01/04/2026
$0.020
4,208,907
-
-
-
4,208,907
01/04/2021
01/04/2026
$0.020
15,578,276
-
-
-
15,578,276
16/09/2021
16/09/2026
$0.026
13,138,866
-
-
-
13,138,866
17/09/2021
17/09/2026
$0.026
26,371,978
-
-
-
26,371,978
15/08/2022
30/06/2025
$0.060
3,000,000
-
-
-
3,000,000
16/02/2023
16/02/2026
$0.053
2,000,000
-
-
-
2,000,000
03/01/2023
30/06/2026
$0.055
2,500,000
-
-
(2,500,000)
-
27/11/2023
15/01/2029
$0.028
-
5,000,000
-
-
5,000,000
27/11/2023
15/01/2029
$0.028
-
5,000,000
-
(5,000,000)
-
27/11/2023
15/01/2029
$0.028
-
5,000,000
-
(5,000,000)
-
84,684,086
15,000,000
(2,000,000)
(12,500,000)
85,184,086
Weighted average exercise price
$0.026
$0.028
$0.020
$0.033
$0.026
Employees have the option to use a cashless exercise as a method for exercising options without the need for the employees
to make a cash payment to cover the exercise price. If this method is used, the resulting number of fully paid shares issued
differs to the number of options exercised.
2023
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
19/10/2020
08/12/2022
$0.030
1,200,000
-
(500,000)
(700,000)
-
29/01/2021
01/04/2026
$0.020
4,930,156
-
-
-
4,930,156
29/01/2021
01/04/2026
$0.020
2,000,000
-
-
-
2,000,000
29/01/2021
01/04/2026
$0.020
21,911,805
-
(10,955,902)
-
10,955,903
01/04/2021
01/04/2026
$0.020
8,417,813
-
(4,208,906)
-
4,208,907
01/04/2021
01/04/2026
$0.020
22,501,869
-
(6,923,593)
-
15,578,276
16/09/2021
16/09/2026
$0.027
23,922,481
-
(10,783,615)
-
13,138,866
17/09/2021
17/09/2026
$0.027
37,476,924
-
(9,797,588)
(1,307,358)
26,371,978
15/08/2022
30/06/2025
$0.060
-
3,000,000
-
-
3,000,000
16/02/2023
16/02/2026
$0.053
-
2,000,000
-
-
2,000,000
03/01/2023
30/06/2026
$0.055
-
2,500,000
-
-
2,500,000
122,361,048
7,500,000
(43,169,604)
(2,007,358)
84,684,086
Weighted average exercise price
$0.024
$0.057
$0.023
$0.028
$0.026
*
Employees have the option to use a cashless exercise as a method for exercising options without the need for the
employees to make a cash payment to cover the exercise price. If this method is used, the resulting number of fully paid
shares issued differs to the number of options exercised.
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 37. Share-based payments (continued)
125
Set out below are the options that have vested and are exercisable at the end of the financial year:
2024
2023
Grant date
Expiry date
Number
Number
29/01/2021
01/04/2026
4,930,156
4,930,156
29/01/2021
01/04/2026
10,955,902
2,000,000
01/04/2021
01/04/2026
4,208,907
5,301,625
01/04/2021
01/04/2026
15,578,277
-
16/09/2021
16/09/2026
10,312,453
3,261,807
17/09/2021
17/09/2026
19,466,473
2,284,178
27/06/2022
30/06/2025
-
3,000,000
27/06/2022
16/02/2026
-
2,000,000
15/08/2022
30/06/2025
3,000,000
-
16/02/2023
16/02/2026
2,000,000
-
27/11/2023
26/11/2028
5,000,000
-
75,452,168
22,777,766
The weighted average share price during the financial year was $0.02 (2023: $0.04).
The weighted average remaining contractual life of options outstanding at the end of the financial year was 2.09 years (2023:
2.73 years).
Share rights
There were no share rights granted during the current year. Set out below are summaries of share rights by the company:
2024
Balance at
Balance at
Exercise
the start of
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
Forfeited
the year
29/01/2021
01/04/2026
$0.000
14,000,000
-
-
-
14,000,000
29/01/2021
01/04/2026
$0.000
1,750,000
-
(1,750,000)
-
-
07/12/2022
07/12/2027
$0.000
414,630
-
(414,630)
-
-
17/02/2023
17/02/2028
$0.000
19,186,080
-
-
(797,993)
18,388,087
35,350,710
-
(2,164,630)
(797,993)
32,388,087
2023
Balance at
Balance at
Exercise
the start of
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
Forfeited
the year
29/01/2021
01/04/2026
$0.000
14,000,000
-
-
-
14,000,000
29/01/2021
01/04/2026
$0.000
1,750,000
-
-
-
1,750,000
21/03/2022
21/03/2027
$0.000
15,653
-
(15,653)
-
-
03/02/2022
03/02/2027
$0.000
15,653
-
(15,653)
-
-
07/12/2022
07/12/2027
$0.000
-
414,630
-
-
414,630
17/02/2023
17/02/2028
$0.000
-
19,690,322
-
(504,242)
19,186,080
15,781,306
20,104,952
(31,306)
(504,242)
35,350,710
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 37. Share-based payments (continued)
126
Set out below are the share rights exercisable at the end of the financial year:
2024
2023
Grant date
Expiry date
Number
Number
29/01/2021
01/04/2026
14,000,000
14,000,000
29/01/2021
01/04/2026
-
1,750,000
14,000,000
15,750,000
The weighted average remaining contractual life of share rights outstanding at the end of the financial year was 2.82 years
(2023: 3.8 years).
Performance rights
There were no performance rights granted during the current year. Set out below are summaries of performance rights under
the plan:
2024
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
26/10/2021
26/10/2026
$0.000
5,633,333
-
(2,816,667)
-
2,816,666
13/12/2022
13/12/2027
$0.000
12,299,458
-
(12,299,458)
-
-
13/12/2022
13/12/2027
$0.000
13,825,536
-
(4,608,511)
-
9,217,025
20/12/2022
20/12/2027
$0.000
5,086,826
-
(2,359,286)
-
2,727,540
20/12/2022
20/12/2027
$0.000
7,076,829
-
(1,094,084)
-
5,982,745
43,921,982
-
(23,178,006)
-
20,743,976
2023
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
29/01/2021
01/04/2026
$0.000
2,468,750
-
(2,468,750)
-
-
01/04/2021
01/04/2026
$0.000
1,562,500
-
(1,562,500)
-
-
26/10/2021
26/10/2026
$0.000
10,000,000
-
(2,816,667)
(1,550,000)
5,633,333
13/12/2022
13/12/2027
$0.000
-
17,111,100
-
(4,811,642)
12,299,458
13/12/2022
13/12/2027
$0.000
-
13,825,536
-
-
13,825,536
20/12/2022
20/12/2027
$0.000
-
8,145,304
-
(3,058,478)
5,086,826
20/12/2022
20/12/2027
$0.000
-
8,145,305
-
(1,068,476)
7,076,829
14,031,250
47,227,245
(6,847,917)
(10,488,596)
43,921,982
Set out below are the performance rights exercisable at the end of the financial year:
2024
2023
Grant date
Expiry date
Number
Number
20/12/2022
20/12/2027
2,727,540
-
20/12/2022
20/12/2027
1,264,859
-
3,992,399
-
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was 3.31
years (2023: 4.3 years).
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 37. Share-based payments (continued)
127
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:
Share price
Exercise
Expected
Dividend
Risk-free
Fair value
Grant date
Expiry date
at grant date
price
volatility
yield
interest rate
at grant date
27/11/2023
27/11/2028
$0.027
$0.028
49.00%
-
4.25%
$0.013
27/11/2023
27/11/2028
$0.027
$0.028
49.00%
-
4.25%
$0.013
27/11/2023
27/11/2028
$0.027
$0.028
49.00%
-
4.25%
$0.013
Note 38. Cash flow information
Reconciliation of profit/(loss) after income tax to net cash from operating activities
Consolidated
2024
2023
$
$
Profit/(loss) after income tax expense for the year
94,352
(2,159,208)
Adjustments for:
Depreciation and amortisation
2,694,344
2,960,991
Share-based payments
949,871
2,201,739
Net loss on disposal of non-current assets
38,328
114,021
Foreign currency differences
87,970
-
Interest on lease liabilities
155,515
167,976
Restructuring and acquisition costs
39,791
114,972
Change in operating assets and liabilities:
Increase in trade and other receivables
(2,827,880)
(647,154)
Decrease/(increase) in contract assets
132,663
(574,218)
Decrease/(increase) in prepayments
(61,319)
85,672
Increase in financial assets
(3,636)
(164,164)
Increase/(decrease) in trade and other payables
2,136,816
(197,262)
Increase in contract liabilities
380,211
547,661
Increase/(decrease) in provision for income tax
(59,972)
1,041
Increase/(decrease) in employee benefits
96,875
(14,534)
Increase/(decrease) in other provisions
(360,686)
131,159
Net cash from operating activities
3,493,243
2,568,692
Non-cash investing and financing activities
Consolidated
2024
2023
$
$
Additions to the right-of-use assets
104,978
1,249,132
FINANCIAL REPORTS
Pureprofile Ltd
Notes to the financial statements
30 June 2024
Note 38. Cash flow information (continued)
128
Changes in liabilities arising from financing activities
Loans
Lease
liabilities
Total
Consolidated
$
$
$
Balance at 1 July 2022
3,000,000
1,140,085
4,140,085
Net cash used in financing activities
-
(536,937)
(536,937)
Acquisition of leases
-
1,432,433
1,432,433
Balance at 30 June 2023
3,000,000
2,035,581
5,035,581
Net cash used in financing activities
(100,000)
(532,941)
(632,941)
Interest accumulated
20,594
-
20,594
Acquisition of leases
-
199,248
199,248
Balance at 30 June 2024
2,920,594
1,701,888
4,622,482
Note 39. Events after the reporting period
On 1 July 2024, the company, through its subsidiary Pureprofile Australia Pty Ltd, completed the Transaction agreement with
i-Link Research Solutions Pty Ltd ('i-Link').
No other matter or circumstance has arisen since 30 June 2024 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
Consolidated entity disclosure statement
As at 30 June 2024
129
Place formed /
Ownership
interest
Entity name
Entity type
Country of incorporation
%
Tax residency
Pureprofile.com, Inc.
Body corporate
USA
100% USA
Pureprofile Australia Pty
Limited
Body corporate
Australia
100% Australia*
Pureprofile Global Pty Ltd Body corporate
Australia
100% Australia*
Pureprofile UK Ltd
Body corporate
United Kingdom
100% United Kingdom
Pureprofile US Inc.
Body corporate
USA
100% USA
ACN 605 146 567 PTY
LTD
Body corporate
Australia
100% Australia*
Sparc Media sp. Z o.o.
Body corporate
Poland
100% Poland
Pureprofile NZ Ltd
Body corporate
New Zealand
100% New Zealand
Pureprofile Singapore Pte.
Ltd
Body corporate
Singapore
100% Singapore
*
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.
FINANCIAL REPORTS
Pureprofile Ltd
Directors' declaration
30 June 2024
130
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 2024
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;
●
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; and
●
the information disclosed in the attached consolidated entity disclosure statement is true and correct as at 30 June 2024.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Michael Anderson
Non-Executive Chair
29 August 2024
Sydney
Grant Thornton Audit Pty Ltd
Level 17
383 Kent Street
Sydney NSW 2000
Locked Bag Q800
Queen Victoria Building NSW
1230
T +61 2 8297 2400
131w
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www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
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 (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2024, 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 material accounting policy information, the consolidated entity disclosure statement
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 2024 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.
FINANCIAL REPORTS
132
Grant Thornton Audit Pty Ltd
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 16)
During the year ended 30 June 2024, the Group
capitalised $2,336,922 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 consider 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 management’s assumptions and
estimates made in capitalising development costs
against the eligibility criteria in AASB 138;
•
Testing a sample of additions during the year and
vouching these to underlying support such as
timesheets and employment contracts;
•
On a sample of projects and related costs, obtaining
an understanding from the Chief technology Officer
and IT development team to understand the nature
of the projects to assess if they meet the recognition
criteria of AASB 138;
•
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,
including those made with respect to judgements
and estimates.
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 2024, 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:
a the financial report that gives a true and fair view in accordance with Australian Accounting Standards and
the Corporations Act 2001 (other than the consolidated entity disclosure statement); and
b the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
133
Grant Thornton Audit Pty Ltd
a the financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error; and
b the consolidated entity disclosure statement that is true and correct and is free of 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: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
description forms part of our auditor’s report.
Report on the remuneration report
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
A L Spowart
Partner – Audit & Assurance
Sydney, 29 August 2024
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 68 to 78 of the Directors’ report for the year
ended 30 June 2024.
In our opinion, the Remuneration Report of Pureprofile Limited, for the year ended 30 June 2024 complies
with section 300A of the Corporations Act 2001.
FINANCIAL REPORTS
Pureprofile Ltd
Corporate directory
30 June 2024
134
Directors
Michael Anderson
Martin Filz
Elizabeth Smith
Mark Heeley
Adrian Gonzalez
Company secretary
Patricia Vanni
Notice of annual general meeting
The details of the annual general meeting of Pureprofile Ltd are:
30 October 2024 at 2:30pm at:
Automic
Level 5, 126 Phillip Street
Sydney NSW 2000
Further to Listing Rule 3.13.1, Listing Rule 14.3 and clause 11.7 of the Company's
Constitution, nominations for election of directors at the AGM must be received not
less than 35 business days before the meeting, being no later than Monday,
9 October 2023.
Registered office
Level 5, 126 Phillip Street
Sydney NSW 2000
Principal place of business
263 Riley Street
Surry Hills NSW 2010
Tel: +61 2 9333 9700
Share register
Automic
Level 5, 126 Phillip Street
Sydney
NSW 2000
Tel: +61 2 9698 5414
Auditor
Grant Thornton
Level 17, 383 Kent Street
Sydney
NSW 2000
Tel: +61 2 8297 2400
Stock exchange listing
Pureprofile Ltd. shares are listed on the Australian Securities Exchange (ASX code:
PPL)
Website
pureprofile.investorportal.com.au
Corporate Governance Statement
The directors and management are committed to conducting the business of
Pureprofile Limited in an ethical manner and in accordance with the highest standards
of corporate governance. Pureprofile Limited has adopted and has substantially
complied with the ASX Corporate Governance Principles and Recommendations
(Fourth Edition) ('Recommendations') to the extent appropriate to the size and nature
of its operations. The group’s Corporate Governance Statement, which sets out the
corporate governance practices that were in operation during the financial year and
identifies and explains any Recommendations that have not been followed, and ASX
Appendix 4G are released to the ASX on the same day the Annual Report is released.
The Corporate Governance Statement can be found on the company’s website at
pureprofile.investorportal.com.au
Pureprofile Ltd
Shareholder information
30 June 2024
135
The shareholder information set out below was applicable as at 1 August 2024.
Distribution of equitable securities
Ordinary shares
Unlisted options over
ordinary shares
Rights over ordinary
shares
Performance rights
over ordinary shares
Number
% of total
shares
Number
% of total
shares
Number
% of total
shares
Number
% of total
shares
of holders
issued
of holders
issued
of holders
issued
of holders
issued
1 to 1,000
49
-
-
-
-
-
-
-
1,001 to 5,000
105
0.03
-
-
-
-
-
-
5,001 to 10,000
91
0.07
-
-
-
-
-
-
10,001 to 100,000
627
2.35
-
-
-
-
-
-
100,001 and over
523
97.55
23
100.00
26
100.00
9
100.00
1,395
100.00
23
100.00
26
100.00
9
100.00
Holding less than
a marketable
416
-
-
-
-
-
-
-
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
Number held
issued
Principis Master Fund SPC
153,470,713
13.24
J P Morgan Nominees Australia Pty Limited
94,781,644
8.18
Bond Street Custodians Limited (Salter - D79836 A/C)
88,000,000
7.59
APPWAM Pty Ltd
51,300,000
4.42
GEMH Pty Ltd
33,161,412
2.86
HSBC Custody Nominees (Australia) Limited
31,611,223
2.73
Mr Christopher Wayne Lonergan
30,700,000
2.65
DMX Capital Partners Limited
28,701,104
2.48
BNP Paribas Nominees Pty Ltd (IB AU NOMS RETAILCLIENT)
22,723,595
1.96
Onmell Pty Ltd (ONM BPSF A/C)
16,600,000
1.43
Depofo Pty Ltd (Ordinary A/C)
16,500,000
1.42
Mr Mark Heeley
16,232,231
1.40
Vanward Investments Limited
16,066,395
1.39
Mr Christian James Hausted
16,000,000
1.38
BNP Paribas Noms Pty Ltd
15,071,879
1.30
Vadina Pty Limited (Jordan Super Fund A/C)
15,000,000
1.29
National Nominees Limited
14,741,745
1.27
J & A Reeve Pty Ltd (Reeve Family A/C)
13,108,906
1.13
Mr Graeme Leslie Waldron
10,000,000
0.86
Mr Dezhi Dong
9,625,521
0.83
693,396,368
59.81
FINANCIAL REPORTS
Pureprofile Ltd
Shareholder information
30 June 2024
136
Substantial holders
Substantial holders in the company are set out below:
Ordinary shares
% of total
shares
Number held
issued
Principis Master Fund SPC for the account and on behalf of Lucerne Composite Master Fund
SP
153,470,713
13.24
Jencay Capital Pty Ltd
94,781,644
8.18
Salter Brothers Emerging Companies Ltd
88,000,000
7.59
DMX Asset Management Limited
64,206,179
5.54
Classes of unquoted equity securities
Number of
Number of
Holders
Securities
Unlisted Options
18
80,184,365
Share Rights
26
32,388,087
Performance Rights
9
20,743,975
The holders in the above unquoted security classes holding more than 20% of the unquoted class were issued the securities
under the company’s Equity Plan.
Unquoted Equity Securities – Unlisted Options
Holders of 20% or more of Unlisted Options on issue:
Unlisted options
Number
% of issued
of units
share capital
Edward Delaney
2,500,000
50.00%
Philip Beard
2,500,000
50.00%
5,000,000
Securities subject to voluntary escrow
Number
Class
Release date
of shares
Ordinary shares
08/03/2026
292,680
Ordinary shares
14/02/2025
31,306
323,986
There are no other classes of equity securities.
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, Share Rights and Performance Rights
These classes do not have voting rights.
Pureprofile Ltd
Shareholder information
30 June 2024
137
On-market buy-back
The company is not currently conducting an on-market buy-back.
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 2024. The directors have the power to amend and reissue the financial statements.
Copyright © 2024 Pureprofile