2018
ANNUAL REPORT
The GO2 People Ltd
ACN 616 199 896
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
30 JUNE 2018
For personal use only CONTENTS
CONTENTS
01. Company Chair’s Address
02. Managing Director’s Address
03. Corporate Overview
04. Operational Achievements & Financial Highlights
05. Directors Report
06. Independent Auditors Declaration
07. Consolidated Financial Statements
08. Notes to the Consolidated Financial Statements
09. Directors Declaration
10. Audit Report
11. Shareholder Information
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THE GO2 PEOPLE LTDFor personal use only THE GO2 PEOPLE LTD
DIRECTORS REPORT
COMPANY CHAIR’S ADDRESS
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COMPANY CHAIR’S
ADDRESS
It is with pleasure and a sense of achievement that we present the first Annual Report for The GO2 People
as a listed entity. Following listing, our focus has been the prudent growth of the business to achieve our
aim of tripling our revenue in 3 years. In order to do this, we have built out the management structure of the
business to enable a focus on business development. Whilst this has had a short-term impact to overheads,
we are pleased that we are now achieving positive EBITDA month-on-month, and we have a clear pathway to
profitability.
Importantly, shareholders would have noticed that your Directors have taken the opportunity to purchase shares
“on market” throughout the year, and even more recently. This should reinforce that your Directors believe in the
strategy of the business and have confidence in its prospects over the medium term.
I would also like to take this opportunity to thank our Managing Director Billy Ferreira and his management
team for the efforts over the past year. The IPO process was a distraction for many of the senior staff which
impacted their focus for some time leading up to the listing – however I am pleased to say that, since listing, the
team has remained focused and driven under Billy’s leadership and guidance, with a clear business strategy and
plans for execution.
Culture is a key foundation of any successful business, and The GO2 People is built on a strong set of values
and a clear and deliberate corporate culture. That culture has remained intact through the listing process, and
continues to drive us and define and shape our behaviours and our approach to the business.
Those values and that culture now extends to our relationship with our shareholders, and in closing I’d like to
extend a vote of thanks to our loyal shareholders who supported us in the IPO process and, like us, believe in
the medium – long term vision for the business. Our pathway to profitability and dividend flow over the next few
years is clear, and we intend to prosecute our strategies with all of the passion and energy that defines
The GO2 People.
Darren Cooper
Company Chair – The GO2 People Ltd
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DIRECTORS REPORT
MANAGING DIRECTOR’S ADDRESS
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MANAGING
DIRECTOR’S ADDRESS
To Our Shareholders,
The GO2 People Ltd has completed its first 8 months as a listed entity. Our focus has been on delivery after the
distractions of listing for the 12 months preceding the IPO. Delivery is what we pride ourselves on and it is what
this business has been built on. As Co-Founders and ASX novices, Paul Goldfinch and I have learnt a lot about
the world of listed life but one thing we brought to the table is an unwavering dedication to prove ourselves and
‘walk the walk’.
Pre-IPO vs Post-IPO
On our IPO Roadshow, we presented the pathway to achieving our goal of tripling the business in 3 years from
listing. Raising capital to ease working capital restraints was aimed at unlocking our ability to scale the business.
On listing, GO2 operated in only 2 States, Western Australia and Queensland. Since listing, we have commenced
operations in New South Wales, Australia’s largest market in the construction and temporary staffing industries.
Our Sydney office in Parramatta has been a strong contributor to the Groups’ growth despite only operating for
the second half of FY18. Through existing national supply contracts, GO2 is well positioned to take advantage of
the State and Federal investment in infrastructure throughout New South Wales.
In addition to New South Wales, GO2 established a strategic presence in regional Queensland via a satellite
operation in Toowoomba. Toowoomba is a gateway to the Surat Basin and there are a number of infrastructure
projects underway and earmarked for the region over the coming years. The area is currently subject to massive
growth in the renewable energy sector, a sector we have established a strong presence in with labour supply
contracts in place with Tier 1 contractors. As we head into FY19, we will begin operations in Victoria to announce
ourselves as a genuine national company.
When we hit the boards of the ASX, our Building Division was nothing more than a fledgling contributor to the
Group, having generated $700k revenue in FY17 and with a limited pipeline of work. Listing has allowed GO2
to execute contracts which has seen this division grown tenfold since listing, generating $7.2m in revenue and
contributing to an improved overall Group margin in FY18. This was largely due to the successfully completed
Non-Process Infrastructure works for Altura Mining at its Pilgangoora Lithium Mine. Non-Process Infrastructure
works a focus for the Building Division, particularly as the WA mining sector is taking off again. The foundation
of secured project work, which includes Meadowbrooke Lifestyle Estate and Dirk Hartog Island, has created
certainty as we continue to grow the division.
GO2 was a $34m turnover business in FY17 and grew over 30% to $45m in FY18. Importantly, we have seen
an improved gross margin from 10% to 12%. We haven’t been shy about our overhead structure. The overhead
expenditure is in line with our plan to prepare the business for the coming growth. Now that our executive team
and senior management structure is in place, we expect to see overheads stabilise as we progress through the
next stage of our growth and focus on improved profitability.
Board
One of the benefits of listing and scaling our business has been the ability to formalise our Board structure.
The Executive team is supported by a Corporate Board that is well balanced and reinforces our organisational
culture. The composition of the Board is a testament to our business and its associated growth profile. Led
by Company Chair, Darren Cooper, our Board has an abundance of strategic and operational experience in
large public companies, which was evident at our recent off-site strategic planning session. Coupled with their
commitment to best practice corporate governance, GO2 has been well directed by the Board since listing.
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We are often asked about the IPO process and the potential distraction of being listed. The IPO process was all
consuming and a distraction in 2017. Since listing, we have remained committed to embracing the requirements
of being listed while focusing our efforts on execution and delivery. Our Board continues to seamlessly lead
our corporate governance obligations. All Board members have purchased shares on market since listing which
shows their confidence in the path ahead.
Growth Opportunities
The East Coast of Australia is experiencing a well-documented Infrastructure Boom. GO2 is well positioned to
service these projects as well as the labour force vacuum that they create across blue collar sectors, particularly
in New South Wales and Victoria. The buoyant Mining industry in Western Australia is expected to drive
economic growth in the state and create a skills and labour shortage that, in turn, will drive GO2’s growth in the
West. In Queensland, GO2’s growth will center around Mining and Renewables, particularly Solar. GO2’s Building
Division will continue to focus on remote and regional construction in WA through Government contracts,
remote and Indigenous Housing and Mining-Related Non-Process Infrastructure.
Expectations
Our strategic plan sets out the pathway to achieving our short and long-term goals. At a point during this
financial year, we expect to represent a business that is twice the size that it was pre-listing. We anticipate
a continuation of the trend towards positive EBITDA in FY19 and NPAT in FY20. We expect our overheads
to remain relatively stable as we continue to grow over the coming years. Our Quarter 4 FY18 performance
points to continued growth in FY19, and momentum gained during this period is expected to contribute to the
Company achieving its targets.
Culture
As with all businesses, ours isn’t without risk. We have dedicated a large amount of time at Board level to
identifying our key risks and actioning mitigation plans. Our biggest operational risk is our ability to maintain
our organisational culture as we grow. Our culture is our single greatest asset and a large reason for our success
to date. From inception, we have been convinced that ‘The GO2 Way’ could be scaled and we remain focused
on personifying our values.
We thank our clients, candidates and shareholders for their continued support. Above all, we thank the
doubters. You motivate us and drive us to our goals.
We will remain committed to achieve the best possible return for our shareholders, staying true to our values.
Finally, I thank our people. I’m proud to lead our team. It is my life’s work.
Billy Ferreira
Managing Director - The GO2 People Ltd
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CORPORATE OVERVIEW
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THE GO2 PEOPLE LTDFor personal use only CORPORATE OVERVIEW
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CORPORATE DIRECTORY
Directors
Darren Cooper
Independent Non-Executive Chairman
Abilio “Billy” Ferreira
Managing Director
Peter McMorrow
Independent Non-Executive Director
Andries “Dickie” Dique
Independent Non-Executive Director
Company Secretaries
Peter Torre, Matthew Thomson
Registered Office
10 Belmont Avenue,
Belmont WA 6104
Phone 08 6151 9200
Auditor
William Buck (Vic) Pty Ltd
Level 20, 181 William Street,
MELBOURNE VIC 3000
Australian Securities Exchange
ASX Code Ordinary Shares: GO2
Webiste
www.thego2people.com.au
Share Regestry
Computershare Investor Services Pty Limited
Level 11, 172 St George’s Terrace,
PERTH WA 6000
Phone 1300 557 010
CORPORATE STRUCTURE
THE GO2 PEOPLE LIMITED
Present
100% owned
subsidiaries
GO2 Recruitment
Pty Ltd as
trustee for the
GO2 Recruitment
Trust
The GO2 People
Australia Pty Ltd
Terra Firma
Constructions
Pty Ltd
GO2 Building
Pty Ltd
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THE GO2 PEOPLE LTD
What We Do
The GO2 People is a leading provider of vertically
integrated Recruitment and Building services to
industry throughout Australia. Our day to day
operations are underpinned by strong core values
and an ethical approach to business principles which
drive innovation, collaboration and an ongoing
commitment to continuous improvement.
Recruitment
The company’s Recruitment Division provides
tailored staffing solutions to a range of industries
with a client base that includes national and
multinational blue-chip organisations across the
construction, resources and industrial sectors.
The Recruitment Division delivers two specialist
services, labour hire and professional recruitment.
Industries GO2 provides services to include:
• Major Infrastructure
• Construction
• Mining/Resources
• Electrical/Energy
• Warehousing/Logistics
• Waste Management
Building
The Building Division operates as a multidisciplinary
construction company offering a full range
of building, civil, construction and project
management services in remote and regional areas
of Australia.
Our highly qualified team provide specialist
delivery of:
• Non-Process Infrastructure (NPI)
• Accommodation Facilities
• Civil Works
• Cyclical Maintenance
• Remote / Regional Commercial
• Remote / Regional Residential
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COMPANY VALUES
• Safety
• Flexibility
• Opportunity
• Partnership
• Reliability
• Integrity
• Honesty
• Diversity
• Accountability
• Family
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OPERATIONAL ACHIEVEMENTS & FINANCIAL HIGHLIGHTS
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THE GO2 PEOPLE LTDFor personal use only OPERATIONAL ACHIEVEMENTS & FINANCIAL HIGHLIGHTS
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OPERATIONAL
ACHIEVEMENTS
SINCE LISTING
GO2 lists on ASX
31/10/17
Places first workers into
South Australia
15/11/17
Altura Mining contract expansion
27/11/17
06/11/17
Expands QLD presence with
new office in Toowoomba
22/11/17
Establishes NSW presence
with new office in Sydney
Establishes LEGO2 JV with
Lomwest Enterprises to develop
Indigenous Housing solution
16/01/18
Appoints Independent Non-Executive
Director, Peter McMorrow
08/02/18
Establishes Professional Recruitment
Division throughout each State
19/03/18
Receives ISO Accreditation
02/05/18
Achieve ZERO LTI’s since listing
30/06/18
19/12/17
Awarded Principal Contract for
Meadowbrooke Over 55’s Lifestyle Estate
27/02/18
Appoints Exclusive Builder for the Leisure
Development on Dirk Hartog Island
16/03/18
Further contract expansion with
Altura Mining
04/04/18
Appoints Independent Non-
Executive Director, Dickie Dique
19/06/18
Establishes presence in Victoria with
new office in Melbourne
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FINANCIAL
HIGHLIGHTS
Group achieves FY18 revenue target
of $45m, 30% increase on FY17
50,000,000
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
FY17
FY18
Revenue
Contribution FY17
Revenue
Contribution FY18
FY17 (figure 1)
Recruitment - WA & QLD
Building
FY18 (figure 2)
Recruitment - WA
Recruitment - QLD
Recruitment - NSW
Building
(figure 1)
(figure 2)
Gross profit margin increased from 10%
in FY17 to 12% in FY18
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DIRECTORS REPORT
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DIRECTORS’
REPORT
The Directors are pleased to present their report on the consolidated entity (referred to herein as the “Group”)
consisting of The GO2 People Ltd (the “Company”) and its controlled entities for the year ended 30 June 2018.
Director and Company Secretary Details
The following persons are current directors of The GO2 People Ltd as at the date of this report:
Director
Shares Held (direct and
Options Held
Other directorships of Australian
through related entities)
Publicly Listed entities
Abilio “Billy” Ferreira
27,887,976
3,100,00
Darren Cooper
Peter McMorrow
Andries “Dickie” Dique
400,000
1,193,500
450,000
nil
nil
nil
nil
nil
SRG Limited
Decmil Limited
The following persons were directors of The GO2 People Ltd during the reporting period, but are no
longer directors:
Doug Grewar
Appointed 28 July 2017 Resigned 08 March 2018
Paul Goldfinch
Resigned 10 July 2017
Kathleen Ferreira
Resigned 10 July 2017
The following persons held the position of Company Secretary of The GO2 People Ltd at the end of the
reporting period:
Matthew Thomson
Peter Torre
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Information on Directors and Secretaries
Darren Cooper
Independent Non-Executive Chairman
Member of the Audit and Risk Committee
Member of the Remuneration and Nomination Committee
Darren Cooper spent in excess of 20 years with various companies in management and senior executive roles,
and has a Bachelor of Business from Curtin University, a Masters of Applied Finance from Macquarie University,
and is a graduate of the Australian Institute of Company Directors.
Darren now holds a number of Board and Strategic Advisory roles across a range of industries including
property, professional services and telecommunications. He is also an investor in and director of a range of
technology & media-based startup businesses. In addition, Darren undertakes a number of volunteer roles,
including with Foundation Housing (Community Housing), Bethanie (Aged Care) and Nature Play WA Inc
(Childhood Wellbeing).
The Board considers Mr. Cooper to be an independent Director, as he is not an executive member of
management and is free of any interest, position, association or relationship that might influence, or reasonably
be perceived to influence, in a material respect his capacity to bring an independent judgement to bear on
issues before the Board.
Abilio “Billy” Ferreira
Managing Director
Billy is a proven senior manager and entrepreneur with a strategic, disciplined and practical approach. After
completing 5 years in the Australian Military in 2000 and undertaking a leadership role in the UK with London’s
exclusive health club, Next Generation, Billy gained valuable experience in construction as the General Manager
of a residential building business in 2005-6 in Adelaide, South Australia. From here, Billy became a part of
the senior management group of the then privately owned, Australian Portable Buildings (APB), in Sydney,
New South Wales.
After a venture capital acquisition in 2007, Billy relocated to Perth, Western Australia and become an integral
part of growing the business into a new territory. It was here that Billy was exposed, as a client, to the Labour
Hire industry. Billy co-founded GO2 Recruitment in 2011 with Paul Goldfinch. Billy is a graduate of the Company
directors’ course at the Australian Institute of Company Directors.
Mr Ferreira is not considered to be independent due to his executive role as Managing Director of the Company
and his interest in securities in the Company.
Peter McMorrow
Independent Non-Executive Director
Chairman of the Audit and Risk Committee
Member of the Remuneration and Nomination Committee
Mr. McMorrow has over 30 years’ project and executive experience and is a respected leader in the infrastructure
and resources industries. His experience covers all disciplines of engineering and he has worked on a wide
variety of large and complex infrastructure projects both in Australia and abroad. His extensive knowledge
extends to all facets of engineering, project identification, winning and delivery as well as management of
dynamic, profitable and long-lasting business operations.
Mr. McMorrow was appointed Managing Director of Leighton Contractors Pty Limited (LCPL) in 2004, and under
his leadership the Company experienced an unprecedented period of growth and success, increasing revenue
to over $5 billion and diversifying into areas including mining, industrial, telecommunications, investment, and
services activities. Prior to this he held top level executive roles at Leighton in Asia, Australia and New Zealand,
and served as General Manager at Baulderstone Hornibrook. He is currently the Chairman of SRG Limited, a
provider of specialised services to the infrastructure and mining sectors.
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Mr Andries “Dickie” Dique
Independent Non-Executive Director
Chairman of the Remuneration and Nomination Committee
Member of the Audit and Risk Committee
Andries “Dickie” Dique has 25 years’ experience in senior executive and management roles in construction
businesses and is a respected leader in the Western Australian construction industry. A registered builder in
a number of states in Australia, Mr Dique’s experience covers the commercial, civil, residential, mining and
modular sectors.
Mr Dique’s most recent operational role was as a Director at Pindan Contracting (“Pindan”). Prior to that, Mr
Dique was General Manager and then Chief Operating Officer at Decmil Group Limited (ASX:DCG). Mr Dique
was a key driver to significant periods of growth during his tenure at both Decmil and Pindan. He is currently a
Non-Executive Director of Decmil Limited a provider of building and construction services.
Peter Torre
Joint Company Secretary
Peter Torre is the principal of the corporate advisory firm Torre Corporate which provides corporate secretari-
al services to a range of listed companies including The GO2 People. Prior to establishing Torre Corporate, Mr
Torre was a partner and Chairman of the National Corporate Services Committee of an internationally affiliated
firm of Chartered Accountants working within its corporate services division for over nine years. Mr. Torre is
the Company secretary of several ASX-listed companies, and previously companies listed on the London and
Toronto Stock Exchange. He is a director of ASX listed Mineral Commodities Limited, VEEM Limited and Volt
Power Group Limited. Mr Torre was also formerly a Director of ASX listed Weststar Industrial Limited. Mr Torre
holds a Bachelor of Business is a Chartered Accountant, a Chartered Secretary and is a member of the Institute
of Company Directors.
Matthew Thomson
Joint Company Secretary / CFO
Matthew joined the Company as Chief Financial Officer and Company Secretary in May 2017. Matthew has a
Bachelor of Commerce, Accounting and Finance from the University of New South Wales and is a Chartered
Accountant. Having begun his career at Coopers & Lybrand (now PricewaterhouseCoopers) he has over 15
years’ experience in senior financial and management accounting roles
Paul Goldfinch
Non-Independent Executive Director
Director – resigned 10 July 2018
Paul Goldfinch is a trade qualified carpenter who utilised his practical background to transition into a business
development role with Gallowglass, the United Kingdom and Europe’s largest supplier of personnel to the live
events industry. Following considerable success in this role, Paul was head hunted by a recruitment business in
Western Australia to assist in the growth of a start-up office. As the best performing consultant over a 2-year
period, he was eventually offered the role of National Business Manager, responsible for the smooth operation
of offices in 3 States. Paul’s entrepreneurial spirit and desire for greater success led him to pursue his vision of
starting GO2 Recruitment as a co-founder.
Through his professional relationship with Billy, they developed a synergy and understanding of how they
could build a business which could not only meet, but exceed, market expectations in the recruitment/labour
hire industry.
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Doug Grewar
Independent Non-Executive Director - Resigned 08 March 2018
Doug holds a Bachelor of Business Degree and a Master’s Degree in Mineral Economics with distinctions. He is
a Fellow of the Australian Institute of Mining and Metals and a graduate of the Australian Institute of Company
Directors. Doug has over 30 years’ experience the resources and civil construction sectors over holding
board and senior management positions in private and ASX listed mining services companies and resource
businesses. In recent years he has consulted to industry as a turnaround, restructuring expert. His primary role
has been to provide strategic pathways for businesses to recapitalise and restructure to obtain best outcomes
for stakeholders.
Since 2012, Doug has held the ASX positions of Managing Director of MACA Limited (Oct 2012 – May 2014),
Managing Director of Viento Group (March 2015 – April 2015), Director of Hughes Drilling Limited
(July 2016 – Sept 2016).
Kathleen Ferreira
Non-Independent Executive Director - Resigned 10 July 2018
Along with her partner Billy, Kathleen was a founder of GO2 Recruitment. Kathleen helped drive the marketing
efforts to establish the business and provided support services to the business as it grew from a start up
enterprise to an established entity.
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Principal Activities
The GO2 People is a leading provider of vertically integrated recruitment and building services to industry
throughout Australia. The Company’s recruitment division provides tailored staffing solutions to a range
of industries with a client base that includes national and multinational blue-chip organisations across the
construction, resources and industrial sectors. The Recruitment Division delivers two specialist services, labour
hire and professional recruitment. Industries GO2 provides services to include:
• Major Infrastructure
• Electrical/Energy
• Construction
• Warehousing/Logistics
• Mining/Resources
• Waste Management
The Building Division operates as a multidisciplinary construction company offering a full range of building,
civil, construction and project management services in remote and regional areas of Australia. This highly
qualified team provide specialist delivery of:
• Non-Process Infrastructure (NPI)
• Cyclical Maintenance
• Accommodation Facilities
• Remote / Regional Commercial
• Civil Works
• Remote / Regional Residential
Review of Operations
The Group continued to pursue its principal activities of Recruitment and Building during the full year. The
Recruitment Division expanded in FY18 with the opening of a new NSW office in late November to take
advantage of the largest recruitment market in Australia. This office experienced solid growth in its first
year of operation and is expected to be a large contributor to the Group’s revenue targets in the future. The
Recruitment Division continued to grow in WA and QLD, securing multiple new service provider agreements
in its core focus sectors of construction, mining/resources and industrial. This has resulted in a 11% increase in
recruitment revenue to $37,780,058, as compared to the full year ended June 30th, 2017. A secured pipeline
of current works and tendered future works is expected to provide for continued growth in the Recruitment
Division in FY19.
Significant growth in the Building Division has increased its revenues to $7,294,595, an increase of 847% as
compared to the full year ended June 30th, 2017. This was underpinned by the delivery of the Altura Mining
works contracts, the Meadowbrooke Lifestyle Estate contract which is underway, and multiple residential
dwellings delivered throughout FY18.
The Group’s gross margin has increased on the same time last year, to 12%. An increase in revenue contribution
from the Building Division is predominately responsible for this and indicates the opportunity for further growth
in gross margin as building revenues increase. Total gross profit totalled $5.4m, up 47.3% from $3.7m as at
30 June 2017.
The Group reported positive EBITDA in H2 FY18 and performed particularly well in Quarter 4 FY18, delivering
$14.4m in revenue and 1.3% EBITDA. This is largely due to increased revenue and a stable overhead structure.
The Company carries momentum gained in Quarter 4 into FY19. It is a clear indicator of the Group’s Strategic
Plan being executed at an operational level.
GO2 continues to seek a more cost effective and flexible alternative to its current debtor finance facility.
Discussions have been held with a number of major financial institutions and a new arrangement is expected to
be in place by the end of Quarter 1 in FY19. An alternative finance facility should reduce the interest costs and
narrow the gap between EBITDA and NPAT.
Whilst group revenue and gross margins have increased, operating expenses have increased as the Company
implements its strategic plans. These costs however have stabilised as the Company now has the infrastructure
and resources in place to deliver continued growth over the next 2 years. One off costs associated with the IPO
process have been included in corporate and administration expenses. Given these expenses are a one off in
FY18, they will not impact the profitability of the Group in FY19 and beyond.
The Net Asset position has improved from a deficit of $2.8m as at 30 June 2017, to $4.9m for the financial year
ended 30 June 2018.
On the back of responsible and measured capital management, significant financial improvements have been
made in the short period since the Company listed in October 2017. The GO2 People Ltd carries momentum
gained during this time into FY19.
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2018 ($)
2017 ($)
REVENUE
from labour hire services
37,780,058
34,058,971
from building services
7,294,595
770,548
45,074,653
34,829,519
Significant Changes in State of Affairs
The following significant changes in the state of affairs the Group during or since the end of the reporting
period, and up to the date of this report are as follows:
(i) Completion of the Purchase agreements for Terra Firma Constructions and GO2 Building Pty Ltd
(ii)
Issuance of 5,500,000 new shares to complete the above acquisitions
(iii) Completion of the Company’s IPO raising of $10,026,250
(iv) Issuance of 50,131,250 new shares on the completion of the IPO
(v) Appointment of three new directors during the year
(vi) Expansion of the Labour Hire Business into New South Wales and Victoria
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Dividends
No dividends were paid or declared during the year
Matters Arising since the end of the reporting period
Other than as reported elsewhere in this report, there has been no other significant events after
reporting period.
Environmental Legislation
The Group’s operations are not subject to significant environmental regulation under the laws of the
Commonwealth and State. Despite this the Group has established procedures to assess and monitor compliance
with any applicable environmental legislation.
Likely Developments and Outlook
The Company expects operations to continue as normal across both its Recruitment and Building Divisions. It is
well positioned in buoyant market sectors including mining and resources, infrastructure and renewable energy
to achieve its financial targets in FY19. Its recent strategic growth into New South Wales and Victoria further
enhances the Company’s ability to service clients on a national scale.
Remuneration Report (Audited)
The Directors present the Remuneration Report (the Report) for the Group for the period ended 30 June 2018.
This Report forms part of the Director’s Report and outlines the remuneration arrangements of the Group’s key
management personnel (KMP) in accordance with the requirements of the Corporations Act 2001 (the Act) and
its regulations. This information has been audited as required by section 308 (3C) of the Act.
Introduction
For the purposes of this report, KMP of the Group are defined as those persons having authority and
responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly,
including any director (whether executive or otherwise) of the Parent Company and include Executive and Non-
Executive Directors. Unless otherwise indicated, the following individuals were KMP for the entire financial period:
Current Directors
Abilio L Ferreira – remunerated through employment contract and director fees
Darren Cooper – remunerated through director agreement only
Peter McMorrow – remunerated through director agreement only
Andries Dique – remunerated through director agreement only
Previous Directors
Doug Grewar - remunerated through director agreement only up until resignation on 8 March 2018.
Paul Goldfinch – no remuneration for his role as a director resigned 10 July 2018
Kathleen Ferreira – no remuneration for her role as a director resigned 10 July 2018
Management
Matthew Thomson CFO and Joint Company Secretary – remunerated through employment contract
Peter Torre Joint Company Secretary – remunerated through services contract
Paul Goldfinch Head of Growth and Investor Relations – remunerated through employment contract
Ross Lovell EGM Recruitment – remunerated through employment contract
Christopher Streat Head of Building – remunerated through employment contract
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Remuneration Governance
The Group established a Remuneration and Nomination Committee, consisting of Mr Dique (Chairman), Mr
McMorrow and Mr Cooper, subsequent to the end of the period. Up to that point, the Board was therefore
responsible for reviewing the overall remuneration philosophy, strategy, plans, policies and practices (including
performance management methodology) to implement the remuneration objective. In making decisions the
Remuneration and Nomination Committee, ensures a clear link between performance and remuneration. This is
achieved by a combination of fixed remuneration, short (STI) and long-term incentives (LTI) with appropriate
performance-based hurdles which reflect short and long- term performance of the executives and the Group.
For the executive management, the Board approves the remuneration arrangements as recommended by the
Managing Director.
In making remuneration decisions the Board assess the appropriateness of the nature and amount of
remuneration on a periodic basis by reference to the status of the Group and the growth of its Revenue and
EBITDA, the skill sets required, trends in comparative ASX listed companies and the need for a balance between
fixed remuneration and short and long- term cash and non-cash incentives. The process includes a review of
Group and individual performances, broad market remuneration data and relevant comparative remuneration
externally and internally. For the current period the Board has not utilised any services of remuneration
consultants but acknowledges that in the future this resource may be beneficial to provide additional support to
the remuneration decisions.
Remuneration Policy
It is the policy of the Board to set remuneration levels competitively, to attract and retain appropriately qualified
and experienced Directors and senior executives.
Remuneration packages for executives will include fixed remuneration with bonuses or equity-based
remuneration entirely at the discretion of the Board based on the performance of the Company and Shareholder
approval where required.
Non-Executive Directors receive fees agreed on an annual basis by the Board. Payments of Directors’ fees are
in addition to any payments to Directors in any employment capacity. A Director may also be paid fees or other
amounts as the Directors determine, if a Director performs special duties or otherwise performs duties outside
the scope of the normal duties of a Director. A Director may also be reimbursed for out of pocket expenses
incurred as a result of their directorship or any special duties.
Remuneration Policy vs Financial Performance
As the Company was recently incorporated and listed on the ASX (31 October 2017) there is no current
link between the Company’s remuneration policy and its financial performance. The Company’s policy is to
remunerate based on industry practice and benchmark industry salaries rather than performance as this
takes into account the risk assumed by the directors and executives as a result of their involvement in a newly
listed entity.
For personal use only DIRECTORS REPORT
24
Director Fee Arrangements
Remuneration Structure
The structural component of Non-Executive Director (NED) fees is separate and distinct from executive
remuneration. It is designed to attract and retain Directors of the highest calibre who can discharge the
roles and responsibilities required in terms of good governance, whilst incurring a cost that is acceptable
to shareholders.
Fee Policy
The remuneration of NEDs consists of Directors’ fees and is adjusted for the chair role.
The ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be determined
from time to time by a general meeting. The Company’s Constitution provides for the initial aggregate
remunerations to be set at $500,000.
The table below summarises the annual fees payable to NEDs for the 2018 financial year (exclusive
of superannuation):
BOARD FEES
BOARD ($)
TOTAL ($)
Chair
NED
20,000
55,000
75,000
55,000
NEDs may be reimbursed for expenses reasonably incurred in attending to the Group’s affairs.
Employment Details of Current Members of Key Management Personnel
The following table provides employment details of persons who as at 30 June 2018 are members of KMP of the
consolidated group.
DIRECTOR
POSITION HELD
CONTRACT DETAILS
Darren Cooper
Chairman
Subject to the Company’s constitutional rules on
retirement and re-election of Directors.
Peter McMorrow
Non-Executive Director
Subject to the Company’s constitutional rules on
retirement and re-election of Directors.
Andries Dique
Non-Executive Director
Subject to the Company’s constitutional rules on
retirement and re-election of Directors.
Abilio Ferreira
Managing Director
Contracted from 1 June 2017, subject to normal
commercial conditions, no fixed term, three months’
notice required to terminate. Total Remuneration
$328,500 (inclusive of superannuation) plus provision
of a Company owned vehicle.
THE GO2 PEOPLE LTDFor personal use only DIRECTORS REPORT
25
MAMAGEMENT
POSITION HELD
CONTRACT DETAILS
Matthew Thomson
CFO and Joint Company
Secretary
Peter Torre
Joint Company Secretary
Paul Goldfinch
Head of Investor Relations
and Growth
Ross Lovell
EGM Recruitment
Christopher Streat
Head of Building
Contracted from 4 May 2017, no fixed term, subject
to normal commercial conditions, 1-month notice
required to terminate. Total Remuneration $202,575
(inclusive of superannuation) plus provision of a
Company owned vehicle.
Services agreement entered into on 30 June 2017,
subject to normal commercial conditions, 1-month
notice required to terminate.
Contracted from 1 June 2017, no fixed term subject
to normal commercial conditions, 1-month notice
required to terminate. Total Remuneration $219,000
(inclusive of superannuation) plus provision of a
Company owned vehicle.
Contracted from 17 July 2017, subject to normal
commercial conditions, no fixed term, 1-month notice
required to terminate. Total Remuneration $251,850
(inclusive of superannuation) plus provision of a
Company owned vehicle.
Contracted from 1 June 2017, subject to normal
commercial conditions, 1-month notice required to
terminate. Total Remuneration $219,000 (inclusive of
superannuation) plus provision of a Company owned
vehicle.
THE GO2 PEOPLE LTDFor personal use only DIRECTORS REPORT
26
Details of Remuneration for Period Ended 30 June 2018
The following table of benefits and payments details, in respect to the financial period, the components of
remuneration for each member of the key management personnel of the consolidated group:
SHORT TERM BENEFITS
POST-
SHARE BASED
TOTAL
EMPLOYMENT
REMUNERA-
TION
Salary &
Fees
STI Cash
Bonues
Non- Monetary
Benefits
Superannuation
Contribution
Options(1)
Total
Darren
Cooper
Peter
McMorrow
Andries
Dique
Abilio
Ferreira
Doug
Grewar(1)
Subtotal –
Directors
Matthew
Thomson
Peter Torre
Paul
Goldfinch
Ross Lovell
Christopher
Streat
Subtotal –
Management
Total
2018
2017
2018
2017
2018
2017
55,550
-
18,975
-
13,687
-
2018
294,583
2017
2018
2017
21,154
33,229
-
2018
416,024
2017
21,154
2018
185,000
2017
2018
2017
26,327
32,500
-
2018
200,000
2017
2018
2017
2018
2017
15,385
211,480
-
182,275
124,996
2018
811,255
2017
166,708
2018
1,227,279
2017
187,862
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,200(2)
6,531
-
-
-
-
-
-
-
-
-
-
22,781(3)
28,990
-
-
-
2,010
3,156
-
35,981
38,677
-
-
-
-
-
-
-
75,281
-
18,975
-
13,687
-
346,354
311,730
334,894
-
-
-
36,385
-
490,682
-
2,010
311,730
334,894
6,650(3)
18,250
-
209,900
-
-
-
2,501
34,714
-
-
63,542
32,500
-
220,144
-
-
-
414(3)
19,730
-
1,458
311,730
328,573
6,883(2(3)
20,589
-
238,952
-
3,491(3)
-
-
34,714
34,714
17,316
11,874
-
203,082
311,730
448,600
17,438
75,885
-
904,578
-
15,833
692,888
875,429
53,419
114,562
-
1,395,260
-
17,843
1,004,618
1,210,323
(1) Payments were made to Doug Grewar prior to his resignation on 8 March 2018.
(2) Payments under salary sacrifice arrangement.
(3) Provision for short term Annual Leave benefit, no person has qualified for any Long Service Leave benefits.
THE GO2 PEOPLE LTDFor personal use only DIRECTORS REPORT
27
Long Term Incentives (LTI)
The Company has two LTI plans in operation for the period ended 30 June 2018, both of which were established
in prior periods. The LTIs are a combination of Incentive Options and Performance Rights as part of total
remuneration. The grant of the Incentive Options and Performance Rights is designed to:
(a) reward management and executives for the significant efforts they have put into the growth of the
Company; and
(b) encourage the participating management and executives to have a greater involvement in the achievement
of the Company’s objectives and to provide an incentive to strive to that end by participating in the future
growth and prosperity of the Company through Share ownership.
No awards were made under the plans during the period ended 30 June 2018.
2017 Annual General Meeting
This is the first financial year that the Company is required to present its Remuneration Report to its
shareholders for approval. A such, the Remuneration Report was not considered at the 2017 Annual General
Meeting. The remuneration for the 2018 Financial Year is at a level that was disclosed in the Company’s
Prospectus as lodged with the ASIC and used for the capital raising completed during the year.
Other transactions with Key Management Personnel
The Group used the services of GO2 Skills & Training Pty Ltd a firm over which Mr. Billy Ferreira and Mr. Paul
Goldfinch exercise control. The amounts billed related to this service amounted to $88,360 (2017: $24,090),
based on normal market rates and was fully billed as of the reporting date.
GO2 Skills & Training Pty Ltd currently owes a group entity $525,811. GO2 Skills and Training Pty Ltd has repaid a
total of $248,157 during the year (2017: $nil). The loan is supported by a loan agreement with interest charged at
7% and minimum loan repayments of $45,000 per quarter.
Please refer to Note 15 of the Financial Statements for additional information on Related Party transactions.
During the year Common Control transactions occurred when the Company acquired its subsidiaries GO2
Recruitment Pty Ltd and Terra Firma Constructions Pty Ltd. Loan accounts or receivable balances owing by
entities associated with Mr. Billy Ferreira, Mr. Paul Goldfinch and Mr. Chris Streat were forgiven for a total of
$112,570 (2017 $2,107,341).
Please refer to Note 15 of the Financial Statements for additional information on Related Party transactions.
For personal use only DIRECTORS REPORT
28
KMP Shareholdings
Number of shares held (either directly or through beneficial ownership) by each KMP of the Group during the
period is as follows:
BALANCE 1 JULY
2017
ISSUED / GRANTED
DURING THE PERIOD
PURCHASE OF
SHARES ON MARKET
BALANCE 30 JUNE
2018
Darren Cooper
Peter McMorrow
Andries Dique
-
-
-
Abilio Ferreira
27,500,000
Doug Grewar(1)
-
Matthew
Thomson
Peter Torre
200,000
-
Ross Lovell
200,000
Paul Goldfinch
27,500,000
-
-
-
-
-
-
-
-
400,000
400,000
1,193,500
450,000
1,193,500
450,000
387,976
27,887,976
75,000
75,000
20,000
220,000
-
-
41,200
241,200
137,301
27,637,301
Christopher
Streat
-
2,500,000
35,166
2,535,166
(1) Doug Grewar resigned on 8 March 2018
KMP Option Holdings
Number of options held (either directly or through beneficial ownership) by each KMP of the Group during the
period is as follows:
BALANCE 1 JULY
2017
ISSUED / GRANTED
DURING THE PERIOD
NET CHANGE DURING
THE YEAR
BALANCE 30 JUNE
2018
Abilio Ferreira
3,100,000
Matthew
Thomson
350,000
Ross Lovell
350,000
Paul Goldfinch
3,100,000
Christopher
Streat
3,100,000
-
-
-
-
-
-
-
-
-
-
3,100,000
350,000
350,000
3,100,000
3,100,000
All Options fully vested in the prior year and there are no remaining service or performance conditions to
exercise. Any shares resulting from the exercise of the options will be escrowed until 31 October 2020.
End of Remuneration Report
THE GO2 PEOPLE LTDFor personal use only DIRECTORS REPORT
29
Directors Meetings
During the financial year, eleven meetings of directors were held. Attendances by each director during the year
based on their eligibility were as follows:
DIRECTOR
ELIGIBLE TO ATTEND
ATTENDED
Billy Ferreira
Darren Cooper
Peter McMorrow
Doug Grewar
Dickie Dique
Paul Goldfinch
Kathleen Ferreira
11
11
4
7
3
-
-
10
11
3
7
3
-
-
Options
At the date of this report, the unissued ordinary shares of The GO2 People Ltd under option are as follows:
GRANT DATE
DATE OF EXPIRY
EXERCISE PRICE
NUMBER OF OPTIONS
21 June 2017
21 June 2021
$0.225
2,500,000
21 June 2017
21 June 2021
21 June 2017
21 June 2021
$0.30
$0.40
5,000,000
7,500,000
15,000,000
Option holders do not have any rights to participate in any issues of shares or other interests in the Group or the
Company or any other entity. There have been no options granted since the end of the reporting period. There
has also been no exercise of options during the financial year or up to the date of this report.
Indemnities and Insurance Premiums Paid
Effective 1 July 2018, the Group paid for a policy to insure all past, present and future directors against liabilities
for costs and expenses incurred by them in defending legal proceedings arising from their conduct while acting
in the capacity of directors of the Group, other than conduct involving a willful breach of a duty in relation to
the Group. The provision of details in respect of the terms and conditions of the policy are prohibited from
disclosure under the terms of the policy.
The Group has executed Indemnity, Insurance Access Deeds with Messer’s Ferreira, Cooper, McMorrow and
Dique. These agreements indemnify the Directors of the Group for costs incurred, in their capacity as a director,
for which they may be held personally liable, expect where there is a lack of good faith.
For the reporting period ended 30 June 2018, the Group has not paid any premiums or agreed an indemnity
with the Auditors covering this period.
THE GO2 PEOPLE LTDFor personal use only DIRECTORS REPORT
30
Proceedings on behalf of the Group
No person is bringing proceedings on behalf of the Group.
Non-audit services
During the year, the Company had engaged the corporate advisory division of its auditor to assist with the
preparation of the Investigating Accountants Report that was included in the Prospectus in relation to the
Company’s’ IPO, in addition to their statutory audit duties. Total fees charged for non-audit services were
$25,000. (2017: $46,700). The directors are satisfied that the provision of these non-audit services is compatible
with the general standard of independence for auditors imposed by the Corporations Act 2001. The nature and
scope of the non-audit service provided means that auditor independence was not compromised.
Auditors Independence
The auditor’s (William Buck (Vic) Pty Ltd) independence declaration for the year ended 30 June 2018 has been
received and is attached to this Directors’ Report.
This Directors’ Report is signed in accordance with a resolution of the Board of Directors.
Darren Cooper
Chairman
30th August 2018
THE GO2 PEOPLE LTDFor personal use only THE GO2 PEOPLE LTD
DIRECTORS REPORT
INDEPENDENT AUDITORS DECLARATION
31
31
06
THE GO2 PEOPLE LTDFor personal use only INDEPENDENT AUDITORS DECLARATION
32
THE GO2 PEOPLE LTDFor personal use only THE GO2 PEOPLE LTD
CONSOLIDATED FINANCIAL STATEMENTS
33
33
07
THE GO2 PEOPLE LTDFor personal use only CONSOLIDATED FINANCIAL STATEMENTS
34
CONSOLIDATED
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2018
Revenue
Cost of sales/services
GROSS PROFIT
NOTE
2018 ($)
2017 ($)
4
45,074,653
34,829,519
(39,659,682)
(31,153,698)
5,414,971
3,675,821
Sales and marketing expenses
(251,222)
(359,754)
Employee benefits expense
(4,323,357)
(2,133,588)
Corporate and administration expenses
(1,816,746)
(1,790,885)
Share based payments expense
-
(1,580,701)
LOSS BEFORE FINANCE COSTS, DEPRECIATION
AND INCOME TAX
(976,354)
(2,189,107)
Finance costs
Depreciation expenses
(620,070)
(607,138)
(280,657)
(181,446)
PROFIT / (LOSS) BEFORE INCOME TAX
(1,877,081)
(2,977,691)
Income tax benefit / (expense)
533,154
13,874
NET PROFIT / (LOSS) FOR THE YEAR
(1,343,927)
(2,963,817)
Other comprehensive loss, net of tax
-
-
TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR
(1,343,927)
(2,963,817)
LOSS PER SHARE
From operations:
Basic / diluted loss per share
11(c)
(0.014)
(0.143)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
THE GO2 PEOPLE LTDFor personal use only CONSOLIDATED FINANCIAL STATEMENTS
35
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Other financial assets
TOTAL CURRENT ASSETS
Non-Current Assets
Plant and equipment
Intangible assets
Deferred tax assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Australian tax office payable
Provisions
Current tax liabilities
Borrowings
NOTE
2018 ($)
2017 ($)
5
6
7
8
9
9
2,611,479
464,033
12,488,450
8,390,924
486,687
196,634
83,431
93,159
15,783,250
9,031,547
1,127,154
637,777
45,455
22,727
492,229
-
1,664,838
660,504
17,448,088
9,692,051
5,302,159
3,638,469
-
3,973,473
183,892
-
93,296
95,922
10
6,638,392
4,336,564
TOTAL CURRENT LIABILITIES
12,124,443
12,137,724
Non-Current Liabilities
Borrowings
Deferred tax liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
10
408,718
328,970
-
44,957
408,718
373,927
12,533,161
12,511,651
4,914,927
(2,819,600)
11
12
15,858,288
5,417,264
1,580,701
(5,634,138)
Retained earnings / (accumulated losses)
(12,524,062)
(2,602,726)
TOTAL EQUITY
4,914,927
(2,819,600)
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
THE GO2 PEOPLE LTDFor personal use only CONSOLIDATED FINANCIAL STATEMENTS
36
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE
YEAR ENDED 30 JUNE 2018
ISSUED
CAPITAL ($)
RETAINED
EARNINGS ($)
SHARE BASED
PAYMENTS
RESERVE ($)
COMMON
CONTROL
RESERVE ($)
TOTAL
EQUITY ($)
AT 1 JULY 2017
5,417,264
(2,602,726)
1,580,701
(7,214,839)
(2,819,600)
Loss for the year
TOTAL COMPREHENSIVE
INCOME
TRANSACTION WITH
OWNERS IN THEIR
CAPACITY AS OWNERS
-
-
(1,343,927)
(1,343,927)
Issue of shares
11,126,250
Issue of options
-
Share issue costs
(685,226)
Common control transactions
(Note 14)
Transfer to/(from) retained
earnings
-
-
-
-
-
-
(8,577,409)
-
-
-
-
-
-
-
-
-
-
-
-
(1,343,927)
(1,343,927)
11,126,250
-
(685,226)
(1,362,570)
(1,362,570)
8,577,409
-
AT 30 JUNE 2018
15,858,288
(12,524,062)
1,580,701
-
4,914,927
ISSUED
CAPITAL ($)
RETAINED
EARNINGS ($)
SHARE BASED
PAYMENTS
RESERVE ($)
COMMON
CONTROL
RESERVE ($)
TOTAL
EQUITY ($)
AT 1 JULY 2016
102
361,091
Loss for the year
TOTAL COMPREHENSIVE
INCOME
TRANSACTION WITH
OWNERS IN THEIR
CAPACITY AS OWNERS
-
-
(2,963,817)
(2,963,817)
-
-
-
Issue of shares
5,625,000
Issue of options
-
Share issue costs
(207,736)
Common control transactions
(Note 14)
(102)
-
-
-
-
1,580,701
-
-
-
-
-
-
-
-
361,193
(2,963,817)
(2,963,817)
5,625,000
1,580,701
(207,736)
(7,214,839)
(7,214,941)
AT 30 JUNE 2017
5,417,264
(2,602,726)
1,580,701
(7,214,839)
(2,819,600)
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
THE GO2 PEOPLE LTDFor personal use only CONSOLIDATED FINANCIAL STATEMENTS
37
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR
ENDED 30 JUNE 2018
OPERATING ACTIVITIES
Receipts from customers
NOTES
2018 ($)
2017 ($)
45,097,048
36,523,058
Payments to suppliers, employees and GST
(48,435,807)
(38,816,235)
Finance costs paid
Taxes Paid
(620,070)
(607,139)
(99,952)
-
Net cash used in operating activities
5
(4,058,781)
(2,900,316)
INVESTING ACTIVITIES
Purchase of plant and equipment
Investment in term deposit
Purchase of intangible assets
Payments for investments acquired
(169,334)
(57,958)
(23,475)
(83,159)
(22,728)
(22,727)
(150,000)
-
Proceeds from sale of plant and equipment
-
5,910
Net cash used in investing activities
(365,537)
(157,934)
FINANCING ACTIVITIES
Utilisation of working capital facilities
2,076,670
3,047,111
Repayment of borrowings
(4,269,270)
(408,779)
Proceeds received from the issue of share capital
10,026,250
500,000
Payment of share issue costs
(1,261,886)
-
Net cash generated by financing activities
6,571,764
3,138,332
Net increase in cash held
2,147,446
80,082
Cash and cash equivalents at the beginning of the period
464,033
383,951
Cash and cash equivalents at the end of financial period
2,611,479
464,033
RECONCILIATION OF CASH
Cash at the end of the period consists of:
Cash at bank and on hand
2,611,479
464,033
Cash at bank and on hand
5
2,611,479
464,033
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying note.
THE GO2 PEOPLE LTDFor personal use only THE GO2 PEOPLE LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
38
38
08
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
39
NOTES TO THE
CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2018
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The GO2 People Ltd was incorporated on 30 November 2016 and on that date under a Group
reorganisiation obtained control of Terra Firma Constructions Pty Ltd, GO2 Building Pty Ltd, the GO2
Recruitment Unit Trust and GO2 People Australia Pty Ltd.
The GO2 People Ltd is a for-profit listed public Company incorporated and domiciled in Australia.
The consolidated financial statements were authorised for issue on the date of signing the attached
Directors’ declaration.
(a) Basis of preparation
These consolidated financial statements are general purpose financial statements, which have been
prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting
Standards and Interpretations and other authoritative pronouncements of the Australian Accounting
Standards Board.
The financial report has been prepared on a historical cost basis and are presented in Australian dollars.
Statement of Compliance
The consolidated financial statements also comply with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board.
Principles of Consolidation
The consolidated financial statements cover GO2 People Ltd (Company) and the entities it controlled
(Group) at the end of or at any time during the period ended 30 June 2018. A list of controlled entities is
included in Note 15.
Control is achieved when the Group is exposed, or has the rights, to variable returns from its involvement
with the entity and has the ability to affect those returns through its power over the entity. The Group re-
assesses whether it controls and entity if facts and circumstances indicate that there are changes to one or
more of the three elements of control. Specifically, the Group controls an entity if an only if the Group has
all the following:
• Power over the entity (i.e. existing rights that give it the current ability to direct the relevant activities of
the entity);
• Exposure, or rights, to variable returns from it involvement with the entity; and
• The ability to use its power over the entity to affect its returns
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
40
Accounting standards and interpretations issued but not yet effective
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet effective and have not been adopted by the Group for the annual reporting period ended 30 June
2018 are outlined below.
AASB 9 FINANCIAL INSTRUMENTS AND RELATED STANDARDS
Mandatory date for annual reporting periods beginning on or after
1 January 2018
Reporting period standard adopted by the Group
1 July 2018
Key Requirements
AASB 9 addresses the classification, measurement and derecognition of financial assets and financial
liabilities and introduces new standard for hedge accounting.
Impact
There will be no significant impact on the Group on the adoption of this standard.
AASB 15 REVENUE FROM CONTRACTS WITH CUSTOMERS AND AASB 2014-5 AMENDMENTS TO AUSTRALIAN.
ACCOUNTING STANDARDS ARISING FROM AASB 15
Mandatory date for annual reporting periods beginning on or after
1 January 2018
Reporting period standard adopted by the Group
1 July 2018
Key Requirements
The AASB has issued a new standard for the recognition of revenue. This will replace AASB 118 which
covers contracts for goods and services and AASB111 which covers construction contracts.
The new standard is based on the principle that revenue is recognised when control of a good or service
transfers to a customer, so the notion of control replaces the existing notion of risks and rewards.
The standard permits a modified retrospective approach for the adoption. Under this approach entities will
recognise any applicable transitional adjustments in retained earnings on the date of the initial application
without restating the comparative period.
Entities will only need to apply the new rules to contracts that are not completed as of the date of
initial application.
Impact
There will be no significant impact on the Group’s current results with respect to revenue from the Labour
Hire segment on the adoption of this standard, as the segment’s revenue is predominately derived from
the provision of services on a weekly basis and as such control passes almost instantaneously.
With respect to the Group’s Building segment, the assessment noted an immaterial impact but as this
business segment grows the Group will need to apply this standard, which will impact the revenue
recognition on residential building projects where the control of the project is only passed on completion,
and thus will need to be considered when drafting contracts.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
41
AASB 16 – LEASES
Mandatory date for annual reporting periods beginning on or after
1 January 2019
Reporting period standard adopted by the Group
1 July 2019
Key Requirements
• Lessees are required to recognise assets and liabilities for all leases with a term of more than 12 months,
unless the underlying asset is of a low value.
• AASB 16 contains disclosure requirements for leases.
Impact
The Group is currently in the process of performing an analysis of identifying leases signed between the
Group and various third parties. However, it is expected that the discounted value of the operating lease
payments as identified in Note 13 to the financial report will be required to be included in the Consolidated
Statement of Financial Position when the standard becomes effective. Following the implementation of
the standard the rental expense currently recognised in administration related expenses will be replaced
by an amortisation charge in the statement of profit or loss and other comprehensive income.
(b) Income Tax
The income tax expense (benefit) for the period comprises current income tax expense (income) and
deferred tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income measured at
the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the period as well as unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of
profit or loss when the tax relates to items that are recognised outside profit or loss.
Except for business combinations, no deferred income tax is recognised from the initial recognition of an
asset or liability where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled and their measurement also reflects the manner in
which management expects to recover or settle the carrying amount of the related asset or liability.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates and
joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal
of the temporary difference can be controlled and it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are offset where: (a) a legally enforceable right of
set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities where it is intended that
net settlement or simultaneous realisation and settlement of the respective asset and liability will occur
in future periods in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
(c) Plant and equipment
Plant and equipment
Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated
depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
42
is greater than the estimated recoverable amount, the carrying amount is written down immediately to
the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment
indicators are present.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the entity and the cost of the item can be measured reliably. Repairs and maintenance are charged to
profit or loss during the financial period in which they are incurred.
Depreciation
The depreciable amount of all plant and equipment are depreciated on a diminishing value basis over
the asset’s useful life to the Group commencing from the time the asset is held ready for use. Leasehold
improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated
useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
CLASS OF PLANT AND EQUIPMENT
DEPRECIATION RATE
Plant and Equipment
Motor Vehicle
Office Equipment
Computer Equipment
Minor Equipment
20% - 50%
25%
20% - 66.66%
33.33%
33% - 50%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains or losses are recognised in profit or loss when the item is derecognised. When revalued assets are
sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.
(d) Intangibles Other than Goodwill
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured
at their fair value at the date of acquisition. Intangible assets acquired separately are initially recognised
at cost. Indefinite life intangible assets are not amortised and are subsequently measured at the cost less
any impairment. Finite life intangible asset are subsequently measured at cost less amortisation and any
impairment. The gains or losses recognized in the profit and or loss arising from the derecognition of the
intangible asset are measured as the difference between the disposal proceeds and the carrying amount of
the intangible asset. The method and useful of finite life intangible assets are reviewed annually. Changes
in the expected pattern of consumption of useful life are accounted for prospectively by changing the
amortisation method or period.
Patents and Intellectual Property
Patents and Intellectual Property are initially recognised at cost of acquisition, they have a indefinite
useful life.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
43
(e) Leases
Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset
(but not the legal ownership) are transferred to the Group, are classified as finance leases.
Finance leases are capitalised by recognising an asset and a liability at the lower of the amounts equal to
the fair value of the leased property or the present value of the minimum lease payments, including any
guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and
the lease interest expense for the period.
Leased assets are depreciated on a diminishing value basis over their estimated useful lives where it is
likely that the Group will obtain ownership of the asset, or over the term of the lease.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor,
are recognised as expenses in the periods in which they are incurred.
(f) Short-Term Employee Benefits
Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee
benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12
months after the end of the annual reporting period in which the employees render the related service,
including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted)
amounts expected to be paid when the obligation is settled.
The Group’s obligations for short-term employee benefits such as wages and salaries are recognised as a
part of current trade and other payables in the statement of financial position.
(g) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.
(h) Revenue and Other Income
Revenue is measured at the fair value of the consideration received or receivable after taking into account
discounts.
Revenue recognition relating to the provision of services is determined with reference to the stage of
completion of the transaction at the end of the reporting period and where outcome of the contract can
be estimated reliably. Stage of completion is determined with reference to the services performed to date
as a percentage of total anticipated services to be performed. Where the outcome cannot be estimated
reliably, revenue is recognised only to the extent that related expenditure is recoverable.
Interest revenue is recognised using the effective interest method, which, for floating rate financial assets is
the rate inherent in the instrument.
All revenue is stated net of the amount of goods and services tax.
(i) Construction Contracts
When the outcome of a construction contract can be estimated reliably, revenue and costs are recognised
by reference to the stage of completion of the contract activity at the end of the reporting period,
measured based on the proportion of contract costs incurred for work performed to date relative to the
estimated total contract costs, except where this would not be representative of the stage of completion.
Variation in contract work, claims and incentive payments are included to the extent that the amount can
be measured reliably and its receipt is considered probable. However, most of the construction contracts
in place between the Group and its customers are short term in nature.
When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised
to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are
recognised as expenses in the period in which they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is
recognised as an expense immediately.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
44
When contract costs incurred to date plus recognised profits less recognised losses exceed progress
billings, the surplus is shown as amounts due from customers for contract work. For contracts where
progress billings exceed contract costs incurred to date plus recognised profits less recognised losses,
the surplus is shown as the amounts due to customers for contract work. Amounts received before the
related work is performed are included in the consolidated statement of financial position, as a liability, as
advances received. Amounts billed for work performed but not yet paid by the customer are included in
the consolidated statement of financial position under trade and other receivables.
(j) Finance Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing
costs are recognised in profit or loss in the period in which they are incurred.
(k) Trade and Other Receivables
Trade and other receivables include amounts due from customers for services performed in the ordinary
course of business. Receivables expected to be collected within 12 months of the end of the reporting
period are classified as current assets. All other receivables are classified as non-current assets.
Collectability of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be
uncollectable are written off when identified.
(l) Trade and Other Payables
Trade and other payables represent the liabilities for goods and services received by the entity that remain
unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts
normally paid within 30 days of recognition of the liability.
(m) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office (ATO).
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 ATO is included with other receivables or 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 ATO are presented as operating cash
flows included in receipts from customers or payments to suppliers.
(n) 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.
(o) Critical accounting estimates and judgments
The preparation of the consolidated financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts in the consolidated financial statements.
Management continually evaluates its judgments and estimates in relation to assets, liabilities, contingent
liabilities, revenue and expenses. Management bases its judgments and estimates on historical experience
and on other various factors it believes to be reasonable under the circumstances, the result of which form
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
45
the basis of the carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different assumptions and conditions.
Management has identified the following critical accounting policies for which significant judgments,
estimates and assumptions are made. Actual results may differ from these estimates under different
assumptions and conditions and may materially affect financial results or the financial position reported in
future periods.
Further details of the nature of these assumptions and conditions may be found in the relevant notes to
the consolidated financial statements.
Control over subsidiaries prior to the date of legal acquisition
As part of the Group reorganisation, the Group determined that for the prior year, Terra Firma
Constructions, GO2 Building, the GO2 Recruitment Unit Trust and GO2 People Australia Pty Ltd were
subject to common control from the date of incorporation of GO2 People Ltd notwithstanding that
the legal acquisition of Terra Firma Pty Ltd and GO2 Building Pty Ltd occurred on 31 October 2017. In
determining this, the Group considered the key shareholdings of both Abilio Ferreira and Paul Goldfinch
combined, allow the two Directors (at the time) to control the Combined Group both before and after the
acquisitions and prior to the injection of new capital into the Combined Group.
As a consequence of common control, notwithstanding that as at 30 June 2017 that legal ownership was
held outside the Group, there is deemed to be no non-controlling interest as the shareholders of GO2
People Ltd are the same as the beneficial owners of the respective equity interests of each subsidiary.
As a consequence of having control over the entities, the comparatives for the consolidated financial
statements include the results from operations and financial position of each subsidiary. Information on
subsidiaries is outlined in Note 15. Refer to Note 14 and Note 15 for additional information.
Recoverability of receivables
The Group continues to provide against the likelihood of ultimate collectability of trade receivables and
other related party receivables where appropriate. The consolidated financial statements do not include
any adjustments relating to the recoverability and classification of recorded asset amounts that might be
necessary should the Group’s judgments differ from future circumstances.
Tax losses recognised
Deferred tax assets relating to unused tax losses are recognised only to the extent that it is probable that
future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
As at 30 June 2018 it has been determined that losses of $1,376,690 (2017 $nil) at 30% have been brought
to account as it is now probable that they will recovered.
Share Issue Cost Allocation
The Company incurred a total cost of $1,261,885 in preparation for and raising of capital through its Initial
Public Offer during the year. An assessment of the allocation of these costs has been undertaken, allowing
for the costs directly related to the capital raise and the increased share capital vs existing holding prior to
the raise. As a result, an amount of $383,250 has been expensed through the Statement of Profit and Loss
and Other Comprehensive Income during the financial year.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
46
NOTE 2
FINANCIAL RISK MANAGEMENT OBJECTIVES
AND POLICIES
The Group’s principal financial instruments comprise receivables, payables, borrowings and cash and
cash equivalents.
Risk Exposures and Responses
The Group manages its exposure to key financial risks in accordance with the Group’s financial risk
management policy. The objective of the policy is to support the delivery of the Group’s financial targets
whilst protecting future financial security.
(i) Interest rate risk
The Group’s exposure to interest rate risk, which is the risk that the borrowings will fluctuate as a result of
changes in the market interest rates. Where possible borrowings used for fixed asset purchases will be at
a fixed interest rate providing certainty on future interest payments. The Group’s Trade Debtor financing
facility has an interest rate payable referenced to the Bank Bill Rate. The Group manages its interest
exposure with respect to weekly drawdowns vs prevailing interest rates and the Groups’ working capital
position. The represents a significant cash-flow risk.
SENSITIVITY OF INTEREST RATE RISK
50 BPS DECREASE
50 BPS INCREASE
Effect on profit
(292,815)
292,815
(ii) Credit risk
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents and,
trade and other receivables. The Group’s exposure to credit risk arises from potential default of the
counter party, with a maximum exposure equal to the carrying amount of these instruments. Exposure at
reporting date is addressed in each applicable note.
The Group manages credit risk by trading only with recognised, credit-worthy third parties where possible,
along with a credit insurance policy to cover for potential insolvency of Clients. Collateral is not requested
nor is it the Group’s policy to secure its trade and other receivables.
It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit
verification procedures. Risk limits are set for each customer and are regularly monitored. In addition,
receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad
debts is spread. There are no significant concentrations of credit risk within the Group.
(iii) Liquidity risk
Liquidity risk requires the Group to maintain sufficient liquid assets to be able to pay debts as and
when they fall due. The Group manages the liquidity risk by having a facility to finance its trade debtors
effectively accelerating payment terms. A significant amount of costs is variable linked directly to revenue
sources, if revenue falls then the operating costs also fall. The Group has strong internal systems around
approval of clients, cost incurrence and cashflow management.
The Group is exposed to liquidity risk via trade, other receivables and financing lease liabilities.
Maturity analysis of financial assets and liabilities based on management’s expectation
To monitor existing financial assets and liabilities as well as to facilitate the effective control of future risks,
the Group has established comprehensive risk reporting that reflects management’s expectations of the
settlement of financial assets and liabilities.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
47
Year ended 30 June 2018
<6 MONTHS ($)
6-12 MONTHS ($)
1-5 YEARS ($)
TOTAL ($)
FINANCIAL ASSETS
Cash and cash equivalents
2,611,479
Trade and other receivables
12,488,450
15,099,929
FINANCIAL LIABILITIES
Trade and other payables
(5,302,159)
Australian tax office payable
-
-
-
-
-
-
-
2,611,479
12,488,450
15,099,929
(5,302,159)
-
Borrowings
(6,518,870)
(119,522)
(408,718)
(7,047,110)
NET MATURITY
3,278,900
(119,522)
(408,718)
2,750,660
(11,821,029)
(119,522)
(408,718)
(12,349,269)
Year ended 30 June 2017
<6 MONTHS ($) 6-12 MONTHS ($)
1-5 YEARS ($)
TOTAL ($)
FINANCIAL ASSETS
Cash and cash equivalents
464,033
Trade and other receivables
8,390,024
8,854,057
FINANCIAL LIABILITIES
Trade and other payables
(3,638,469)
-
-
-
-
Australian tax office payable
(1,339,974)
(2,633,499)
-
-
-
-
-
464,033
8,390,924
8,854,057
(3,638,469)
(3,973,473)
Borrowings
(4,256,038)
(80,526)
(328,970)
(4,665,534)
(9,234,481)
(2,714,025)
(328,970)
(12,277,476)
NET MATURITY
(380,424)
(2,714,025)
(328,970)
(3,423,419)
The fair value of financial assets and liabilities are equivalent to their historical cost.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
48
NOTE 3
SEGMENT INFORMATION
(a) Identification of reportable segments
The activities of the group are predominately operated though a number of 100% owned and controlled
subsidiaries, focusing on the Labour Hire Industry and Building Services, with a Corporate Cost Centre to
support the operations of the business units.
The Business Units are separated into distinct operating entities, as such management has determined
the operating segments based on reports reviewed by the chief operating decision maker. Reports
reviewed consider the business primarily by the services provided. The following reportable segments have
been identified:
• Labour Hire and Recruitment Services
• Residential and Remote Building Services
• Corporate cost centre
(b) Segment results
Segment results represent earnings before depreciation, interest, tax and other significant items and prior
to any corporate costs.
Segment revenues and expenses are those that are directly attributable to a segment and the relevant
portion that can be allocated to the segment on a reasonable basis. There is no significant concentration
of revenue per customer
Segment revenues, expenses and results exclude transfers between segments. The revenue from external
parties is reported to the chief operating decision maker and is measured in a manner consistent with that
in the statement of profit or loss and other comprehensive income.
(c) Segment location
The Group only operates in one Geographic segment being Australia
THE GO2 PEOPLE LTDFor personal use only 9
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1
0
2
7
1
,
5
1
,
2
9
9
8
9
9
,
3
4
0
5
3
1
,
4
,
4
5
7
4
4
5
8
,
1
5
5
,
1
7
2
2
1
,
s
t
e
s
s
A
1
5
6
,
1
1
5
2
1
,
1
6
1
,
3
3
5
2
1
,
)
3
3
4
4
5
1
(
,
,
)
0
2
5
5
6
7
7
(
,
5
7
4
8
6
1
,
8
8
6
9
8
,
5
0
2
4
6
7
,
,
6
1
6
9
5
5
3
,
,
4
0
4
3
3
7
,
1
1
,
7
7
3
9
4
6
6
1
,
0
4
6
8
0
3
,
4
3
0
0
7
7
,
-
-
-
-
-
6
6
4
,
1
8
2
0
4
6
8
0
3
,
,
8
6
5
8
8
4
f
o
n
o
i
t
i
s
i
u
q
c
A
E
&
P
P
s
e
i
t
i
l
i
b
a
i
L
For personal use only
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
50
NOTE 4
REVENUE
REVENUE
Labour hire fees
Construction
Other income
TOTAL REVENUE
2018 ($)
2017 ($)
37,371,506
34,054,410
7,294,595
770,548
408,552
4,561
45,074,653
34,829,519
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
51
NOTE 5
CASH AND CASH EQUIVALENTS
For the purposes of the Statement of Cash Flows, cash and cash equivalents comprise the following:
2018 ($)
2017 ($)
Cash at bank and on hand
2,611,479
464,033
2,611,479
464,033
RECONCILIATION OF NET PROFIT AFTER TAX TO NET CASH FLOWS
FROM OPERATIONS
Profit / (Loss) for the period
(1,343,927)
(2,963,817)
Share option costs
-
1,580,701
Share issue costs expensed
383,250
-
Depreciation expense (net of profit on sale)
280,658
181,822
Impairment of receivables
342,116
467,904
Impairment / (Reversal of Impairment) of related party loans
(248,157)
338,031
CHANGE IN OPERATING ASSETS AND LIABILITIES
Increase in trade and other receivables
(4,557,789)
(1,567,343)
Increase in other assets
Increase in provisions
(401,785)
(40,875)
90,596
47,209
Increase / (decrease) in trade and other payables
1,496,209
(930,101)
(Decrease) / Increase in current tax liabilities
(99,952)
(13,847)
NET CASH USED IN OPERATING ACTIVITIES
(4,058,781)
(2,900,316)
RECONCILIATION
OF LIABILITIES
ARISING FROM
FINANCING
ACTIVITIES
ATO Payment plan
liabilities
Insurance Premium
funding facility
Finance lease
liabilities
Bank debt factoring
NOTE
BALANCE AT 1
JULY 2017
FINANCING
CASHFLOWS
9
3,973,473
(3,973,473)
-
55,218
BALANCE AS
AT 30 JUNE
2018
NON-CASH
CHARGES
NEW
FINANCE
LEASES
-
-
-
55,218
10
10
10
542,939
(351,015)
600,703
792,627
4,122,595
2,076,670
-
6,199,265
8,639,007
(2,192,600)
600,703
7,047,110
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
52
NOTE 6
TRADE AND OTHER RECEIVABLES
Trade receivables
2018 ($)
2017 ($)
12,673,054
8,625,444
Work in Progress and accrued revenue
165,420
135,693
Less provision for doubtful debts
(893,918)
(433,655)
Other receivables
TOTAL RECEIVABLES
11,944,556
8,327,482
543,894
63,442
12,488,450
8,390,924
Trade receivables are non-interest-bearing trading terms vary from 7 days from invoice to 45 days from
the end of month of invoice date. A majority of the clients are on 30 – 45 days end of month terms.
As at 30 June 2018 the ageing analysis of trade receivables is as follows:
TOTAL 0-30 DAYS
31-60 DAYS
61-90 DAYS
PDNI*
+ 91 DAYS
PDNI*
+ 91 DAYS
CI*
30 June 2018
12,673,054
5,665,541
4,045,302
1,001,627
1,066,666
893,918
30 June 2017
8,625,444
3,148,550
3,462,674
971,641
608,924
433,655
*PDNI – Past due not impaired
*CI – Considered impaired
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
53
NOTE 7
OTHER ASSETS
CURRENT
Prepayments
Inventory
2018 ($)
2017 ($)
194,384
76,086
292,303
7,345
486,687
83,431
THE GO2 PEOPLE LTDFor personal use only
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
54
NOTE 8
PLANT AND EQUIPMENT
Year ended 30 June 2018
Plant &
Equipment
($)
Motor
Vehicles
($)
Office
Equipment
($)
Computers
& Software
($)
Minor
Equipment
($)
Total
($)
AT 30 JUNE 2018
Cost
285,976
1,287,140
205,995
115,795
18,916
1,913,822
Accumulated
depreciation
NET CARRYING
AMOUNT
(71,558)
(478,784)
(118,072)
(108,114)
(10,140)
(786,668)
214,418
808,356
87,923
7,681
8,776
1,127,154
Movements in carrying amount of Plant and Equipment
Plant &
Equipment
($)
Motor
Vehicles
($)
Office
Equipment
($)
Computers
& Software
($)
Minor
Equipment
($)
Total
($)
AT 1 JULY
2017 NET OF
ACCUMULATED
DEPRECIATION
45,105
507,245
57,131
22,049
6,247
637,777
Additions
206,323
475,143
82,794
1,273
4,501
770,034
Disposals
-
-
-
-
-
Depreciation
(37,010)
(174,032)
(52,002)
(15,641)
(1,972)
(280,657)
AT 30 JUNE
2018 NET OF
ACCUMULATED
DEPRECIATION
214,418
808,356
87,923
7,681
8,776
1,127,154
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
55
NOTE 8 PLANT AND EQUIPMENT CONTINUED
Year ended 30 June 2017
Plant &
Equipment
($)
Motor
Vehicles
($)
Office
Equipment
($)
Computers
& Software
($)
Minor
Equipment
($)
Total
($)
AT 30 JUNE 2017
Cost
79,653
811,998
123,690
114,522
13,925
1,143,788
Accumulated
depreciation
NET CARRYING
AMOUNT
(34,548)
(304,753)
(66,559)
(92,473)
(7,678)
(506,011)
45,105
507,245
57,131
22,049
6,247
637,777
Movements in carrying amount of Plant and Equipment
Plant &
Equipment
($)
Motor
Vehicles
($)
Office
Equipment
($)
Computers
& Software
($)
Minor
Equipment
($)
Total
($)
AT 1 JULY 2016 NET
OF ACCUMULATED
DEPRECIATION
Additions
Disposals
59,362
358,076
41,483
48,241
8,955
516,117
1,339
250,680
46,432
9,480
709
308,640
-
(5,534)
-
-
-
(5,534)
Depreciation
(15,596)
(95,977)
(30,784)
(35,672)
(3,417)
(181,446)
AT 30 JUNE 2017 NET
OF ACCUMULATED
DEPRECIATION
45,105
507,245
57,131
22,049
6,247
637,777
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
56
NOTE 9
TRADE AND OTHER PAYABLES
Trade payables and accruals
1,899,908
520,097
2018 ($)
2017 ($)
Payroll Liabilities
Other payables
1,466,251
1,072,885
1,936,000
2,045,487
5,302,159
3,638,469
ATO Payment plan liabilities
-
3,973,473
5,302,159
7,611,942
Trade payables are non-interest bearing and are normally settled on 30-day terms.
Other payables predominantly relate to obligations with the Australian Tax Office for GST, which is not
considered overdue.
Australian tax office payable
On 11 June 2017, the Group entered into a payment plan with the Australian Tax Office to settle its balance
owing for goods and service tax payable as well as PAYG, including the balance existing as at 30 June 2017.
The amount outstanding was paid in full during the year.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
57
NOTE 10
BORROWINGS
SECURED – AT AMORTISED COST
2018 ($)
2017 ($)
Insurance Premium funding(i)
55,218
-
Finance lease liabilities (ii)
792,627
542,939
Bank debt factoring (iii)
6,199,265
4,122,595
Current
Non-current
7,047,110
4,665,534
7,047,110
4,665,534
6,638,392
4,336,564
408,718
328,970
7,047,110
4,665,534
Summary of borrowing arrangements
(i) Secured over the groups insurance policies, interest of 3.72% is charged on the amounts funded,
repayable over 10 months.
(ii) Secured by a charge on the Group’s motor vehicles. Interest rates varying between 5.75% and 10.99%
per annum is charged on the outstanding loan balance. Repayable over 5 years.
(iii) Collateral over the Group’s trade receivables. Effective interest of 7.5% per annum. Repayable as
receivables are collected. The facility limit amounted to $10,000,000 and unused facility as at
reporting date was $3,800,735.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
58
NOTE 11
ISSUED CAPITAL
117,964,583 fully paid ordinary shares – The GO2 People Ltd
15,858,288
5,417,264
15,858,288
5,417,264
2018 ($)
2017 ($)
a) Ordinary Shares in GO2 People Ltd
BALANCE AT 1 JULY 2016
Cancellation of share capital and units
NOTE
NUMBER OF
SHARES
102
(102)
$
102
(102)
Initial share issue
10,000,000
10,000
Acquisition of Go 2 Recruitment Unit Trust
– April 2018
Acquisition of Go 2 People Australia Pty
Ltd – June 2018
14(B)
15,000,000
15,000
14(C)
34,000,000
5,100,000
Share Issue June 2018
Share issue costs
3,333,333
500,000
-
(207,736)
BALANCE AT 30 JUNE 2017
62,333,333
5,417,264
BALANCE AT 1 JULY 2017
62,333,333
5,417,264
Acquisition of GO2 Building Pty Ltd
2,500,000
500,000
Acquisition of Terra Firma Constructions Pty Ltd
3,000,000
600,000
Initial Public Offer Share issue
50,131,250
10,026,250
Share issue costs
-
(685,226)
BALANCE AT 30 JUNE 2018
117,964,583
15,858,288
Issued capital reflects the issued capital of GO2 People Ltd.
Each respective ordinary share entitles the holder to participate in dividends, and to share in the proceeds
of winding up the respective legal entity in proportion to the number of and amounts paid on the shares
held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is
entitled to one vote, and upon a poll each share is entitled to one vote.
b) Options
During the prior period a total of 15,000,000 Options were issued to Contractors and Key Employees of
the Group for performance of services.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
59
NOTE 11 ISSUED CAPITAL CONTINUED
This issue comprised 2,500,000 Options exercisable at $0.225 each, on or before 21 June 2021 (Class A
Options), 5,000,000 Options exercisable at $0.30 each, on or before 21 June 2021 (Class B Options) and
7,500,000 Options exercisable at $0.40 each on or before 21 June 2021 (Class C Options). There are no
conditions to vesting or exercise. Any shares resulting from the exercise of the options will be escrowed
until 31 October 2020. The share price at date of the issue of the Options was $0.15 with reference to the
capital raise completed at 30 June 2018.
Movement in Options
OPENING
BALANCE AT 1
JULY 2017
GRANTED
DURING
PERIOD
FORFEITED
DURING
PERIOD
EXERCISED
DURING
PERIOD
OUTSTANDING
AT 30 JUNE
2018
EXERCISABLE
AT 30 JUNE
2018
WEIGHTED
EXERCISE
PRICE
Class A
2,500,000
Class B
5,000,000
Class C
7,500,000
TOTAL
15,000,000
-
-
-
-
-
-
-
-
-
-
-
-
2,500,000
2,500,000
$0.225
5,000,000
5,000,000
$0.30
7,500,000
7,500,000
$0.40
15,000,000
15,000,000
$0.34
c) Loss per share
Loss (excluding share based payments) used to calculate basic and
diluted EPS
(1,343,927)
(1,383,116)
2018 ($)
2017 ($)
Weighted average number of ordinary shares outstanding during the
year used in calculating basic and diluted EPS
99,370,028
9,701,371
99,370,028
9,701,371
No.
No.
The 15,000,000 (2017: 15,000,000) options issued could potentially dilute basic earnings per share in the
future, but were not included in the calculation of diluted earnings per share because they are anti-dilutive
for the periods presented.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
60
NOTE 12
RESERVES
a) Share Based Payments Reserve
This reserve records items recognised as expenses on the issue and valuation of Shares, Options or other
Rights as issued. There was no movement for the period.
b) Common Control Reserve
The Group has accounted for the acquisitions of the GO2 Recruitment Unit Trust, Terra Firma Pty Ltd
and GO2 Building Pty Ltd as common control transactions. Common control transactions are accounted
for prospectively from the date the Group obtains control and all assets and liabilities are recognised
on consolidation at their respective carrying value. Any excess of the purchase consideration over the
carrying value of assets and liabilities has been recognized in a “common control reserve”. The reserve was
recognised for the first time during the 2017 year. Movements for the reporting period ended 30 June 2018
are as follows:
Balance at 30 June 2017
TRANSACTIONS TO 30 JUNE 2018
Forgiveness of beneficiary loan accounts
Forgiveness of loan accounts
Note
($)
7,214,839
14(B)
14(D)
97,713
14,857
Acquisition of Terra Firma Constructions Pty Ltd
14(D)
650,000
Acquisition of GO2 Building
14(E)
600,000
Total of transactions
Transfer to retained earnings
BALANCE AT 30 JUNE 2018
8,577,409
(8,577,409)
-
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
61
NOTE 13
CAPITAL AND LEASING COMMITMENTS
FINANCE LEASE COMMITMENTS
2018 ($)
2017 ($)
Payable – minimum lease payments
not later than 12 months
383,909
216,423
between 12 months and five years
459,606
375,201
later than five years
-
-
Minimum Lease Payments
843,515
591,624
Less future finance charges
(50,888)
(48,684)
PRESENT VALUE OF MINIMUM LEASE PAYMENTS
792,627
542,940
OPERATING LEASE COMMITMENTS
NON-CANCELLABLE OPERATING LEASES CONTRACTED FOR BUT
NOT RECOGNISED IN THE FINANCIAL STATEMENTS
not later than 12 months
310,117
257,770
between 12 months and five years
305,247
474,030
later than five years
-
-
615,364
731,800
Finance lease commitments relate to the hire purchase liabilities for a number of motor vehicles and an
item of plant and equipment. The commitments are secured by the assets financed. The leases are for 1-5-
year terms and are repayable monthly.
Operating lease commitments relate to the non-cancellable property leases with 1-3-year terms, with rent
payable monthly in advance. Rental reviews are held at regular intervals in accordance with lease terms.
Leases for the Group’s offices in Belmont WA and Parramatta NSW have options to extend the lease
period for a further 3 years from expiry of initial term.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
62
NOTE 14
COMMON CONTROL TRANSACTIONS
(a) Background
On 30 November 2016 The GO2 People Ltd was incorporated and for accounting purposes is deemed to
have obtained control over Terra Firma Construction Pty Ltd, GO2 Building Pty Ltd and GO2 Recruitment
Trust from that date as part of a Group reorganisation. The GO2 People Ltd was established to facilitate
a capital raising and subsequent initial public offering and as a result the following transactions also
occurred to restructure the Group. As there was no change in control, any difference between the
consideration transferred and the carrying amounts of acquired assets and liabilities was recognised in a
common control reserve.
(b) Acquisition of The GO2 Recruitment Unit Trust by
The GO2 People Limited
On 28 April 2017, The GO2 People Ltd acquired all the units on issue in the GO2 Recruitment Unit Trust.
Consideration
In consideration for 100% of the units issue in the GO 2 Recruitment Unit Trust , The GO2 People Ltd has
paid the following in consideration to the then unit holders:
• 15,000,000 Shares in The GO2 People Ltd; and
• loan balances owing to beneficiaries amounting to $1,994,298 as at 31 October 2017 were forgiven.
As a consequence of this transaction an amount of $2,009,198 was recognised in the common control reserve.
(c) Acquisition of The GO2 People Australia Pty Ltd by
The GO2 People Ltd
On 16 June 2017, The GO2 People Ltd completed the acquisition of all the shares on issue in The GO 2
People Australia Pty Ltd.
Consideration
In consideration for 100% of the fully paid ordinary shares in The GO 2 People Australia Pty Ltd, The GO2
People Ltd has paid the following in consideration to the then Share Holders:
• 34,000,000 Shares in The GO2 People Ltd; and
As a consequence of this transaction an amount of $5,093,200 was recognised in the common control reserve.
(d) Acquisition of Terra Firma Construction Pty Ltd by
The GO2 People Ltd
On 16 June 2017, The GO2 People Ltd entered into a binding terms sheet with Terra Firma Construction Pty
Ltd and its sole shareholder, Mr Christopher Streat, pursuant to which the Company agreed to buy, and Mr
Streat agreed to sell 100% of the fully paid ordinary shares in Terra Firma (Terra Firma Agreement). The
transaction settled on 31 October 2017. The material terms of the Terra Firma Agreement are as follows:
Consideration
In consideration for 100% of the fully paid ordinary shares in Terra Firma, The GO2 People Ltd provided the
following consideration to Mr Streat:
• 2,500,000 Shares in The GO2 People Ltd; and
• a cash payment of $150,000 (plus GST, if applicable).
• loans, trade debtor and creditor balances owing to related entities of Mr. Streat amount to $225,613 was forgiven.
As a consequence of this transaction an amount of $875,611 was recognised in the common control reserve.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
63
NOTE 14 COMMON CONTROL TRANSACTIONS CONTINUED
(e) Acquisition of GO2 Building Pty Ltd by The GO2 People Ltd
On 16 June 2017, The GO2 People Ltd entered into a binding terms sheet with GO2 Building Pty Ltd and
its Shareholders pursuant to which the Company agreed to buy, and the Shareholders agreed to sell 100%
of the fully paid ordinary shares in GO2 Building (GO2 Building Agreement). The transaction settled on 31
October 2017. The material terms of the GO2 Building Agreement are as follows:
Consideration
In consideration for 100% of the fully paid ordinary shares in GO2 Building, The GO2 People Ltd has
provided the following consideration:
• 3,000,000 Shares in The GO2 People Ltd
As a consequence of this transaction an amount of $599,400 was recognised in the common control reserve.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
64
NOTE 15
RELATED PARTY DISCLOSURES
All transactions which occurred between companies within The GO2 People Ltd have been eliminated
in the preparation of the consolidated financial statements. Details of transactions of related party
transactions are disclosed below:
As part of various sale agreements as disclosed in Note 14 the following loan balances were forgiven:
Loans due from entities related to Paul Goldfinch and Abilio Ferreira
97,713
1,896,585
Loans and receivables due from entities associated with Chris Streat
14,857
210,756
2018 ($)
2017 ($)
112,570
2,107,341
Loans to Director related entities, GO2 Skills & Training Pty Ltd & GO2 Building Solutions Pty Ltd were
impaired in full during the prior financial period. Paul Goldfinch and Abilio Ferreira are directors of both
GO2 Skills & Training Pty Ltd & GO2 Building Solutions Pty Ltd. During the current financial year GO2 Skills
& Training Pty Ltd has repaid $248,157 (FY 2107 $nil) and committed to a Loan Agreement including an
agreed repayment profile of $45,000 per quarter. This repayment has resulted in a partial reversal of the
Loan impairment booked in previous periods.
Transactions with Director related entities
GO2 SKILLS & TRAINING
2018 ($)
2017 ($)
Payment for skills and leadership training
(88,360)
(24,090)
Recovery of insurance premiums, office and facility costs
108,439
-
20,079
(24,090)
The consolidated financial statements include:
COUNTRY OF
INCORPORATION*
OWNERSHIP INTEREST
GO2 People Ltd
GO2 Building Pty Ltd
Australia
Australia
Terra Firma Constructions Pty Ltd
Australia
The GO2 Recruitment Unit Trust*
Australia
GO2 Recruitment Pty Ltd
Australia
The GO2 People Australia Pty Ltd
Australia
2018
100%
100%
100%
100%
100%
100%
2017
100%
-
-
100%
100%
100%
* GO2 Recruitment Unit Trust was settled in Australia, it is not an incorporated entity
THE GO2 PEOPLE LTDFor personal use only
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
65
NOTE 15 RELATED PARTY DISCLOSURES CONTINUED
Key Management Personnel
The Directors and other key management personnel of the Group during or since the end of the financial
period were:
Current Directors
Abilio L Ferreira – remunerated through employment contract and director fees
Darren Cooper – remunerated through director agreement only,
Peter McMorrow – remunerated through director agreement only,
Andries Dique – remunerated through director agreement only,
Previous Directors
Paul P Goldfinch – remunerated through employment contract only, no payments for role as a Director
Kathleen Ferreira - (no remuneration)
Doug Grewar - remunerated through director agreement only up until resignation on 8 March 2018.
Key Management
Matthew Thomson CFO and Joint Company Secretary – remunerated through employment contract
Peter Torre Joint Company Secretary – remunerated through employment contract
Paul Goldfinch Head of Growth and Investor Relations – remunerated through employment contract
Ross Lovell EGM Recruitment – remunerated through employment contract
Christopher Streat Head of Building – remunerated through employment contract
Short term employee benefits
1,245,732
187,861
2018 ($)
2017 ($)
Superannuation benefits
Share based payments
114,566
17,843
-
1,004,620
1,360,298
1,210,324
THE GO2 PEOPLE LTDFor personal use only
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
66
NOTE 16
AUDITOR’S REMUNERATION
AMOUNT RECEIVED OR DUE AND RECEIVABLE BY FOR:
An audit of the financial statements of the Group
30,100
18,000
30 JUNE 2018 ($) 30 JUNE 2017 ($)
Other services
Investigating Accountants Report and other IPO audited
related services
25,000
46,700
55,100
64,700
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
67
NOTE 17
PARENT ENTITY FINANCIAL INFORMATION
The individual financial statements for the parent entity being the GO2 People Ltd, which was incorporated
on 30 November 2016, show the following aggregate amounts:
ASSETS
Cash and cash equivalents
2,051,792
302,739
30 JUNE 2018 ($)
30 JUNE 2017 ($)
Other assets
Investments
Loans Receivable
TOTAL ASSETS
LIABILITIES
258,186
-
5,986,989
5,115,000
6,497,033
150,000
14,794,000
5,567,739
Trade and other payables
48,427
168,475
TOTAL LIABILITIES
48,427
168,475
NET ASSETS
EQUITY
Issued capital
Reserves
Retained earnings
TOTAL EQUITY
14,745,573
5,399,264
15,858,288
5,417,264
1,580,701
1,580,701
(2,693,416)
(1,598,701)
14,745,573
5,399,264
LOSS OF THE PARENT ENTITY
1,094,715
1,598,701
TOTAL COMPREHENSIVE LOSS OF THE PARENT ENTITY
1,094,715
1,598,701
Refer to Note 15 for disclosure of transactions between the parent entity and related parties.
THE GO2 PEOPLE LTDFor personal use only NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
68
NOTE 18
CONTINGENT LIABILITIES AND CAPITAL
COMMITMENTS
Contingent liabilities
Term Deposits included in Other financial assets to the value of $106,634 (2017: $83,159) secure Bank
Guarantees provided to support Lease agreements for the Group’s operations in Western Australia and
New South Wales.
The GO2 People Ltd does not have any other contingent liabilities at 30 June 2018.
Contractual Capital Commitments
With the exception of matters disclosed in Note 13, The GO2 People Ltd does not have any contracted
capital commitments at 30 June 2018.
NOTE 21
SUBSEQUENT EVENTS
Other than as disclosed below, no other matter or circumstance has arisen that has significantly affected
or may significantly affect the Group’s operations, results or state of affairs in future years.
THE GO2 PEOPLE LTDFor personal use only THE GO2 PEOPLE LTD
DIRECTORS’ DECLARATION
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69
09
THE GO2 PEOPLE LTDFor personal use only DIRECTORS’ DECLARATION
70
DIRECTORS’
DECLARATION
In accordance with a resolution of the Directors, I state that:
1. In the opinion of the directors:
(a) The financial statements and notes of The GO2 People Ltd for the financial period ended 30 June
2018 are in accordance with the Corporations Act 2001, including:
(i) complying with Australian Accounting Standards and the Corporations Regulations 2001;
(ii) giving a true and fair view of the Group’s financial position as at 30 June 2018 and its
performance for the period then ended;
(b) The financial statements and notes also comply with International Financial Reporting Standards as
disclosed in Note 1; and
(c) There are reasonable grounds to believe that the Group will be able to pay its debts as and when
they fall due.
2. This declaration has been made after receiving the declarations required to be made to the directors by
the Group Managing Director and the Group Chief Financial Officer in accordance with section 295A of the
Corporations Act 2001 (Cth) for the financial year ended 30 June 2018.
Darren Cooper
Chairman
30th August 2018
THE GO2 PEOPLE LTDFor personal use only
THE GO2 PEOPLE LTD
AUDITOR REPORT
71
71
10
THE GO2 PEOPLE LTDFor personal use only AUDITOR REPORT
72
THE GO2 PEOPLE LTDFor personal use only AUDITOR REPORT
73
THE GO2 PEOPLE LTDFor personal use only AUDITOR REPORT
74
THE GO2 PEOPLE LTDFor personal use only AUDITOR REPORT
75
THE GO2 PEOPLE LTDFor personal use only AUDITOR REPORT
76
THE GO2 PEOPLE LTDFor personal use only THE GO2 PEOPLE LTD
SHAREHOLDER INFORMATION
77
77
11
THE GO2 PEOPLE LTDFor personal use only SHAREHOLDER INFORMATION
78
SHAREHOLDER
INFORMATION
Additional information required by the Australian Securities Exchange Ltd Listing Rules and not disclosed
elsewhere in this report. This information is current as of September 19th 2018.
Top Holders
THE GO2 PEOPLE LIMITED
ORDINARY FULLY PAID (TOTAL)
TOP HOLDERS (UNGROUPED) AS OF 19/09/18
RANK NAME
UNITS % UNITS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
EVERGLADES INVESTMENT PTY LTD
GOLDFINCH DISCRETIONARY PTY LTD
J P MORGAN NOMINEES AUSTRALIA LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CHRISTOPHER STREAT
PAGONDAS PTY LTD
ALIITAEAO ASIATA
LUIK HOLDINGS PTY LTD
MR PETER JOHN MCMORROW + MRS BERNADINE ANN MCMORROW
DANIEL FORD + MARLENA FORD
GUNNIBLE RIDGE INVESTMENTS PTY LTD
PAGONDAS PTY LTD
R & M O THOMAS PTY LTD
MR GRAHAM JOHN BAILEY + MRS ANNETTE MAREE BAILEY
BNP PARIBAS NOMINEES PTY LTD
MAJI MAZURI PTY LTD + MAWINGO PTY LTD
CENCOLL PTY LTD
COLLETT SUPERANNUATION PTY LTD
ADDERSTONE HOLDINGS PTY LTD
20.
FRANK CARL ASHE
27,500,000
27,500,000
8,650,000
5,100,000
2,500,000
2,000,000
1,250,000
1,200,000
1,193,500
1,000,000
1,000,000
1,000,000
1,000,000
900,000
900,000
850,000
800,000
786,667
500,000
500,000
23.31
23.31
7.33
4.32
2.12
1.70
1.06
1.02
1.01
0.85
0.85
0.85
0.85
0.76
0.76
0.72
0.68
0.67
0.42
0.42
Top 20 holders of ORDINARY FULLY PAID (TOTAL)
Total Remaining Holders Balance
86,130,167 73.01%
31,834,416 26.99%
THE GO2 PEOPLE LTDFor personal use only SHAREHOLDER INFORMATION
79
Distribution of Equity Security Holders
RANGE
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
TOTAL HOLDERS
UNITS % UNITS
5
16
67
152
108
348
284
0.00
59,692
659,323
8,966,634
0.05
0.56
7.60
108,278,650
91.79
117,964,583
100.00
Marketable Parcels
Number of shareholders holding less than a marketable parcel of ordinary shares is 22.
Unlisted Options
NUMBER OF OPTIONS
NUMBER OF
HOLDERS
OPTION TERMS
2,500,000
5,000,000
7,500,000
Voting Rights
1
6
5
Options exercisable at $0.225 expiring 21/06/2021
Options exercisable at $0.225 expiring 21/06/2021
Options exercisable at $0.225 expiring 21/06/2021
Every ordinary shareholder present in person or by proxy at meetings of shareholders shall have one vote for
every share held. Option holders have the right to attend meetings but have no voting rights until the options
are exercised.
Substantial Shareholders
The following shareholders are considered substantial shareholders.
1
1
EVERGLADES INVESTMENT PTY LTD
GOLDFINCH DISCRETIONARY PTY LTD
27,500,000
27,500,000
23.31
23.31
Share Buy Backs
There is no current on market share buy back.
THE GO2 PEOPLE LTDFor personal use only SHAREHOLDER INFORMATION
80
Use of Funds
In accordance with ASX listing rule 4.10.9, the Company confirms that it has used its cash and assets in a form
readily convertible to cash that it had at the time of admission in a way that is consistent with its business objec-
tives.
Corporate Governance Statement
In accordance with ASX Listing Rule 4.10.3, The Company’s Corporate Governance Statement can be found on
its website, www.thego2people.com.au
Restricted Securities
SHARES
EVERGLADES INVESTMENT PTY LTD
GOLDFINCH DISCRETIONARY PTY LTD
ALIITAEAO ASIATA
DANIEL FORD & MARLENA FORD
ADDERSTONE HOLDINGS PTY LTD
FRANK CARL ASHE
AUSNOM PTY LTD
GREGORY GOLDFINCH & SHERYL GOLDFINCH
JB ADVISORY PTY LTD
NALKARI INVESTMENTS PTY LTD
SHAZMAR SUPER PTY LTD
DAMIEN CHALK
ROSS LOVELL
FELILA ASIATA
SINEAD ELIZABETH MONAGHAN
JOEL MARTIN
THOMKID PTY LTD
MATTHEW THOMSON
SIMON ROBINSON
OPTIONS
ABILIO FERREIRA
PAUL GOLDFINCH
CHRISTOPHER STREAT
189 ADVISORY PTY LTD
ESCROW
Expiring
31/10/2020
Options
expiring
21/06/2021
@ $0.225
Options
expiring
21/06/2021
@ $0.30
Options
expiring
21/06/2021
@ $0.40
27,500,000
27,500,000
1,250,000
1,000,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
400,000
200,000
150,000
150,000
100,000
100,000
100,000
50,000
0
0
2,500,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
50,000
300,000
0
0
0
0
0
0
0
0
50,000
300,000
0
0
800,000
2,300,000
800,000
2,300,000
800,000
2,300,000
0
2,500,000
2,500,000
0
THE GO2 PEOPLE LTDFor personal use only For personal use only