AWF 2017 Interim Report Announcement

Interim
Report
2017

2

We are optimistic
our results for the
full year to March
2018, will reflect the
new resilience that
we have built.
Simon Bennett, CEO
CEO’S REPORT – SIMON BENNETT 4
FINANCIAL STATEMENTS 7
NOTES TO THE FINANCIAL STATEMENTS 12
DIRECTORY 20
Contents
3
AWF MADISON GROUP INTERIM REPORT 2017

A better
business.
Simon Bennett, CEO
We are, simply, doing better business
than we have in the past, and the signs
are becoming apparent. At the end of a
good business chain is cash, and our cash
generation during the first half of this year
was strong.
As noted when we reported our preliminary
results, tighter working capital controls have
resulted in a reduction in receivables from
trade debtors. We ended the period with a
cash balance of $10.3 million, up from
$1.1 million at 31 March 2017.
The lower first half profit number was
due almost entirely to a difficult operating
environment for AWF, where revenue fell
by around 17% compared with the first
half of FY 2017.
This was due in part to a deliberate
re-evaluation of our customer base which
resulted in our relinquishing some lower-
margin work.
And while nobody wants to “blame the
weather”, the very wet 2017 winter had a
substantial effect on the timing of below-
ground work in civil construction, and on
the maintenance activities performed for
councils around the country.
In Auckland, construction activity took a
breather, with many projects reaching
Stage 1 completion but delaying the start of
finishing work such as glass installation and
interior fit-out.
While building activity fell in the June
quarter (1), the longer term picture improved
Despite the disappointment
of reporting a lower net profit
for the first half of FY2018,
we are optimistic our results
for the full year to March
2018, will reflect the new
resilience that we have built
into your company over the
past few years.
AWF MADISON GROUP INTERIM REPORT 2017
4
CEO’S REPORT

substantially. The Ministry of Business,
Innovation & Employment in August
upgraded its forecast peak for construction
in this cycle to $42 billion in 2020, from a
$37 billion peak this year. (2) We continue
to build a larger pool of skilled and capable
candidates.
Another short-term factor that weighed on
AWF’s performance was the implementation
of our new CRM system.
This gives us far greater visibility over
day-to-day operational performance and
management, reducing workloads. For
example, payroll has been transitioned out of
the branches altogether, leaving staff free to
concentrate on sourcing candidates, serving
customers and winning new business.
However, in the short term, implementation
has meant extra hours as our people adjust.
Our new management structure for AWF,
with two strong operational General
Managers; one for the upper North Island,
and one for the lower North Island and the
South Island, has proved very successful with
Fleur Board and Donna Lynch ‘setting the
bar’ very high. It is pleasing to see our Health
& Safety culture continuing to evolve on the
back of strong leadership, driving stronger
performance against key indicators.
Madison’s revenue contribution eased back
slightly on the first half, when compared with
the same period a year ago. However, we are
confident full-year performance will at least
equal that of FY 2017.
At this stage of the economic cycle,
employers remain committed to large
internal teams and permanent positions.
During the second half Madison will start
work on its Census contract. This will
straddle Census Day, 6 March, 2018. The
scope of the work will depend on online
uptake – in short, more forms completed
electronically will mean less door-knocking.
In a demonstration of confidence, Madison
and Absolute IT were both reappointed to
the All-of-Government recruitment services
panel.
In the first half, our purchase of Absolute IT
fully justified our investment, contributing
strongly to both revenue and earnings as a
consequence of an excellent performance.
We expect to make a final earn-out payment
in line with guidance given in the 2017
Annual Report.
Structurally, AWF Madison Group is now
well-organised to drive profitable business,
and we have a clear understanding of our
operating model.
Our priority for the second half of this year is
to add to AWF’s top line business that we can
convert into profit. We’ve made a good start.
(1) Statistics NZ, June quarter 2017 Value
of Building Work Put in Place
(2) MBIE, National Construction Pipeline Report 2017
2CEO’2S RPTO–IPMNO TB4I ’OI4NPIBOFAL7
5
CEO’S REPORT

Net Profit
After Tax
DividendNet Bank Debt
Net
Operating
Cash Flow
Group
Earnings
Per Share
$23.2
Million8.0cps
10.5cps
$3.4
Million
$11.9
Million
Down 12.8% on
the same period
last year
Up from $11.4m
last year
Down from
12.1cps
last year
Interim dividend
last year 8.0cps
Compared with
$14.0m last year
(up following
acquisition of
Absolute IT)
Revenue
$143.1
Million
Up 19.9%, from
$119.3m inthe same
period last year
AWF MADISON GROUP INTERIM REPORT 2017
6
CEO’S REPORT

Financial
Statements.
7
AWF MADISON GROUP INTERIM REPORT 2017

AWF Madison Group Limited
Condensed statement of comprehensive income
For the six month period 30 September 2017 (unaudited)
GROUP
6 months to
30 September
2017
(unaudited)
6 months to
30 September
2016
(unaudited)
$’000$’000
Revenue143,078119,284
Investment revenue– 7
Direct costs(986)(1,531)
Employee benefits expense(129,001)(104,933)
Depreciation and amortisation expense(1,864)(1,162)
Impairment–(222)
Other operating expenses(5,998)(5,044)
Finance costs(741)(585)
Profit before tax4,4885,814
Income tax expense(1,070)(1,884)
Profit for the period3,4183,930
Other comprehensive income for the period––
Total comprehensive income for the period3,4183,930
Profit for the period income is attributable to equity holders of the Group3,4183,930
Total comprehensive income is attributable to equity holders of the Group3,4183,930
Earnings per share
Total basic earnings per share (cents/share)10.512.1
Total diluted earnings per share (cents/share)10.512.1
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
8

AWF Madison Group Limited
Condensed statement of financial position
As at 30 September 2017 (unaudited)
GROUP
30 September
2017
(unaudited)
30 September
2016
(unaudited)
(restated)
31 March
2017
(audited)
$’000$’000$’000
Assets
Non-current assets
Property, plant and equipment3,0762,5433,348
Intangible assets – goodwill38,62030,78438,620
Intangible assets – other16,94813,13418,314
Total non-current assets58,64446,46160,282
Current assets
Cash and cash equivalents10,3176,9671,225
Trade and other receivables33,59327,85345,533
Total current assets43,91034,82046,758
Total assets102,55481,281107,040
Equity and liabilities
Non-current liabilities
Deferred tax liabilities2,5962,2563,117
Borrowings33,50021,00033,500
Total non-current liabilities36,09623,25636,617
Current liabilities
Trade and other payables24,78119,07228,107
Bank overdraft––108
Taxation payable2019711,636
Provisions200333217
Absolute IT Limited earn-out payment3,420–3,420
Total current liabilities28,60220,37633,488
Total liabilities64,69843,63270,105
Net assets37,85637,64936,935
Capital and reserves
Share capital27,53427,62427,624
Treasury account–(319)(319)
Group share scheme reserve429451450
Retained earnings9,8939,8939,180
Total equity37,85637,64936,935
For and on behalf of the Board who authorise the issue of the financial statements on 25 October 2017:
ROSS KEENAN, Chair JULIA HOARE, Chair, Audit and Risk Committee
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
9

AWF Madison Group Limited
Condensed statement of changes in equity
For the six month period 30 September 2017 (unaudited)
GROUP
Share
capital
Treasury
shares
Group share
scheme
reserve
Retained
earnings
Total
equity
$’000$’000$’000$’000$’000
Period ended 30 September 2016
Balance at 1 April 201627,946(641)3708,59936,274
Comprehensive income
Profit for the period–––3,9303,930
Other comprehensive income–––––
Total comprehensive income–––3,9303,930
Transactions with shareholders
Dividends paid–––(2,636)(2,636)
Restricted shares redeemed(322)322–––
Share based payments––81–81
Total transactions with shareholders(322)32281(2,636)(2,555)
Balance at 30 September 201627,624(319)4519,89337,649
Period ended 30 September 2017
Balance at 1 April 201727,624(319)4519,18036,936
Comprehensive income
Profit for the period–––3,4183,418
Other comprehensive income–––––
Total comprehensive income–––3,4183,418
Transactions with shareholders
Dividends paid–––(2,705)(2,705)
Restricted shares redeemed(90)90–––
Restricted shares exercised–229––229
Share based payments––(22)–(22)
Total transactions with shareholders(90)319(22)(2,705)(2,498)
Balance at 30 September 201727,534–4299,89337,856
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
10

AWF Madison Group Limited
Condensed statement of cashflows
For the six month period ended 30 September 2017 (unaudited)
GROUP
6 months to
30 September
2017
(unaudited)
6 months to
30 September
2016
(unaudited)
$’000$’000
Cashflows from operating activities
Receipts from customers154,350124,776
Payments to suppliers and employees(138,915)(111,465)
Net cash generated from operations15,43513,311
Interest received–7
Interest paid(741)(585)
Income taxes paid(2,815)(1,334)
Net cash from operating activities11,87911,399
Cashflows from investing activities
Proceeds from disposal of property, plant and equipment7271
Purchase of property, plant and equipment(248)(997)
Purchase of intangible assets(27)–
Net cash (used in)/from investing activities(203)(926)
Cashflows from financing activities
Proceeds from the issue of share capital229–
Dividends paid to share holders of the parent(2,705)(2,636)
Net cash from/(used in) financing activities(2,476)(2,636)
Net increase/(decrease) in cash held9,2007,837
Cash and cash equivalents at start of the period1,117(870)
Net cash and cash equivalents at end of the period10,3176,967
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
11

AWF Madison Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2017 (unaudited)
About this report.
REPORTING ENTITY
AWF Madison Group Limited is a listed company
incorporated and domiciled in New Zealand.
The address of its registered office and principal
place of business is disclosed in the directory to
the interim report.
The interim condensed consolidated financial
statements of AWF Madison Group Limited (‘the
Company’) and its subsidiaries (collectively
referred to as ‘the Group’) and have been have
been prepared:
• in accordance with IAS 34 Interim
Financial Reporting and NZ IAS 34 Interim
Financial Reporting;
• in accordance with the requirements of the
Financial Market Conduct Act 2013, the
Companies Act 1993, and the NZX listing rules;
• on the basis of historical cost, modified by
revaluation of certain assets and liabilities; and
• in New Zealand dollars, with values rounded
to thousands ($000) unless otherwise stated.
The principal services of the Group are the
supply of temporary staff and recruitment of
permanent staff.
The interim condensed financial statements
were authorised for issue by the directors on
25 October 2017.
BASIS OF PREPARATION
The interim condensed consolidated financial
statements do not include all the information
and disclosures required in the annual financial
statements, and should be read in conjunction with
the Group’s annual financial statements for the year
ended and as at 31 March 2017.
The accounting policies used in preparation of
these interim condensed consolidated financial
statements are consistent with those used in the
Group’s annual financial statements for the year
ended and as at 31 March 2017, except for the
adoption of any new standards effective as of 1 April
2017, and the early adoption of any other standard,
interpretation or amendment that has been issued
but is not yet effective.
Adoption of new and revised Standards
and Interpretations
New standards and amendments and interpretations
to existing standards that came into effect during the
current accounting period beginning on 1 April 2017.
There have been no new or revised standards,
amendments and interpretations that became
effective for the year beginning 1 April 2017.
New standards and amendments and interpretations
to existing standards that are not yet effective for
the current accounting periods beginning on
1 April 2017.
The Group have not early adopted any new
standards, amendments and interpretations that
have been issued but are not yet effective.
The new standards, amendments and
interpretations that will have an impact on the
Group are discussed below and the Group intends
to adopt these new standards, amendments and
interpretations when they become mandatory.
• NZ IFRS 9 Financial Instruments
NZ IFRS 9, ‘Financial instruments’, addresses the
classification, measurement and recognition of
financial assets and financial liabilities. It replaces
the guidance in NZ IAS 39, ‘Financial Instruments:
Recognition and Measurement’, that relates to
the classification and measurement of financial
instruments. IFRS 9 retains but simplifies the
mixed measurement model and establishes three
primary measurement categories for financial
assets: amortised cost, fair value through other
comprehensive income (‘OCI’) and fair value through
profit and loss. The basis of classification depends
on the entity’s business model and the contractual
cash flow characteristics of the financial asset.
Investments in equity instruments are required
to be measured at fair value through profit or loss
with the irrevocable option at inception to present
changes in fair value in OCI not recycling.
There is now a new expected credit losses
impairment model that replaces the incurred loss
impairment model used in NZ IAS 39. For financial
liabilities, there were no changes to classification
and measurement, except for the recognition of
changes in own credit risk in other comprehensive
income, for liabilities designated at fair value
through profit or loss.
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
12

AWF Madison Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2017 (unaudited)
NZ IFRS 9 also relaxes the requirements for
hedge effectiveness by replacing the bright line
hedge effectiveness tests. It requires an economic
relationship between the hedged item and hedging
instrument and for the ‘hedged ratio’ to be the
same as the one management actually use for
risk management purposes. Contemporaneous
documentation is still required but is different to
that currently prepared under NZ IAS 39.
The effective date is annual reporting periods
beginning on or after 1 January 2018.
The Group is currently in the process of undertaking
an assessment of the possible impact NZ IFRS 9
will have on the Group’s financial statements.
The indicative impacts of implementing NZ IFRS 9
are as follows:
Classification and measurement of financial
instruments:
The Group’s financial assets currently include only
those measured at amortised cost. The Group
anticipates that the classification and measurement
of its financial assets will remain unchanged under
NZ IFRS 9.
Impairment model change from incurred losses to
expected credit losses:
The introduction of the expected credit losses
impairment model is expected to involve a change
in the timing of when impairment losses are
recognised.
With regards to the Group’s trade receivables, the
Group’s incurred credit losses from these financial
assets have historically not been material (with the
exception of one significant debtor over the past two
years which is considered to be an isolated case).
Consequently the introduction of the expected credit
losses impairment model is not expected to have a
material impact on the Group’s financial statements,
given the Group’s low exposure to counterparty
default risk as a result of the Group’s credit risk
management processes that are in place.
Hedge accounting
The Group does not have any material hedging
arrangements.
The Group intends to adopt NZ IFRS 9 no later than
the accounting period beginning on 1 April 2018.
• NZ IFRS 15 Revenue from Contracts
with Customers
NZ IFRS 15 ‘Revenue from Contracts with
Customers’ will replace NZ IAS 18 ‘Revenue’.
NZ IFRS 15 provides a five-step model to be applied
to the recognition of revenue arising from contracts
with customers:
• identify the contract with the customer;
• identify the performance obligations in the
contract;
• determine the transaction price;
• allocate the transaction price to the performance
obligations in the contract; and
• recognise revenue when (or as) the entity
satisfies a performance obligation.
NZ IFRS 15 also introduces new disclosures
for revenue.
The effective date is annual reporting periods
beginning on or after 1 January 2018.
The Group is currently in the process of completing
an assessment of the possible impact NZ IFRS 15
will have on the Group’s financial statements.
Under NZ IFRS 15 the Group would recognise
revenue when (or as) it satisfies a performance
obligation by transferring a promised good
or service to a customer (which is when the
customer obtains control of that good or service).
A performance obligation may be satisfied at a point
in time (typically for promises to transfer goods to
a customer) or over time (typically for promises to
transfer services to a customer). For a performance
obligation satisfied over time, a company would
select an appropriate measure of progress to
determine how much revenue should be recognised
as the performance obligation is satisfied.
The adoption of NZ IFRS 15 is expected to result
in a change in the timing of when revenue is
recognised by the Group along with refinements
to the Group’s business systems and processes.
The Group will recognise revenue to depict the
transfer of promised services to customers in an
amount that reflects the consideration to which the
entity expects to be entitled in exchange for those
services. This means that revenue will be recognised
when control of services is transferred, rather
than when the rendered services can be estimated
reliably and recognised by reference to the stage
of completion of the transaction at the end of the
reporting period.
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
13

AWF Madison Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2017 (unaudited)
Currently the Group’s revenue is earned from
the following:
• supply of temporary staff (to industry,
commerce and IT);
• recruitment of contract and permanent staff
(to commerce and IT); and
• organisational development related
consulting services.
No consideration of the quantum revenue to be
deferred has been performed at this stage as
Management is currently in the process of
completing an assessment of the possible
impact NZ IFRS 15 will have on the Group’s
financial statements.
The Group intends to adopt NZ IFRS 15 no later than
the accounting period beginning on 1 April 2018.
• NZ IFRS 16 Leases
NZ IFRS 16 ‘Leases’ will replace NZ IAS 17 ‘Leases’.
NZ IFRS 16 eliminates the distinction between
operating and finance leases for lessees and will
result in lessees bringing most leases onto their
Statements of Financial Position.
The main changes affect lessee accounting only –
lessor accounting is mostly unchanged from
NZ IAS 17.
NZ IFRS 16 introduces the following:
• Use of a control model for the identification
of leases. This model distinguishes between
leases and service contracts on the basis of
whether there is an identified asset controlled by
the customer.
• Distinction between operating and finance leases
is removed. Assets (a right-of-use asset) and
liabilities (a lease liability reflecting future lease
payments) will now be recognised in respect
of all leases, with the exception of certain
short-term leases and leases of low value assets.
NZ IFRS 16 supersedes NZ IAS 17 and associated
interpretative guidance.
The effective date is annual reporting periods
beginning on or after 1 January 2019. Earlier
application is permitted, if NZ IFRS 15 Revenue from
Contracts with Customers has also been adopted.
The indicative impacts of implementing NZ IFRS
16 are as follows for all leases that the Group is a
party to:
Initial recognition and measurement:
• Recognition of a right of use (‘ROU’) asset.
Initial measurement of the ROU asset would
also include the lessee’s initial direct costs,
prepayments made to the lessor, less any
lease incentives received from the lessor and
restoration, removal and dismantling costs; and
• Recognition of a lease liability, which would
reflect the initial measurement of the present
value of lease payments.
Subsequent measurement:
• ROU asset: Depreciate the ROU asset based on
NZ IAS 16 Property, plant and equipment.
• Lease liability: Accrete liability based on
the interest method, using a discount rate
determined at lease commencement (as long
as a reassessment and a change in the discount
rate have not occurred) and reduce the liability
by payments made.
An indication of the Group’s operating lease
liabilities is set out in note F4 of the Group’s annual
financial statements for the year ended and as at
31 March 2017.
The Group intends to adopt NZ IFRS 16 no later than
the accounting period beginning 1 April 2019. The
impact of NZ IFRS 16 has not yet been quantified
and will be dependent on the leases that the Group
is a party to as at the beginning of the comparative
accounting period presented in the Group’s financial
statements for the year ended 31 March 2020.
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
14

AWF Madison Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2017 (unaudited)
Segment revenueSegment profit
6 months to
30 September
2017
(unaudited)
6 months to
30 September
2016
(unaudited)
6 months to
30 September
2017
(unaudited)
6 months to
30 September
2016
(unaudited)
SEGMENT REVENUE AND RESULTS$’000$’000$’000$’000
Continuing operations
Temporary staffing to industry66,64580,5853,1855,413
Temporary, contract and permanent
staff services to commerce76,43338,6993,3682,213
Total for continuing operations143,078119,2846,5537,626
Other income–7
Central administration costs
and directors fees(1,324)(1,234)
Finance costs(741)(585)
Profit/(loss) before tax4,4885,814
Income tax expense(1,070)(1,884)
Profit for the year3,4183,930
Revenue reported above represents revenue generated from external customers. Inter-segment sales
in the year were $333,000 (2016: $366,000) and have been eliminated from the above table.
The accounting policies of the reportable segments are the same as the Group’s accounting policies
described in this report. Segment profit represents the profit earned by each segment without allocation
of central administration costs and directors’ salaries, investment revenue, finance costs, and income
tax expense. This is the same measure reported to the chief operating decision maker for the purpose
of resource allocation and assessment of segment performance.
SEGMENT INFORMATION
The directors have identified the following reportable segments:
Temporary staffing to industry
The Group operates branches under the brand
names AWF Labour, AWF Manufacturing and
Logistics, AWF Trades and Tradeforce Recruitment
in major towns and cities throughout New Zealand.
These brands derive their revenues from temporary
staffing services to industry and are considered to be
one operating segment and one reportable segment
for which discrete financial information is available
and whose operating results are regularly reviewed
by the Group’s chief operating decision maker.
Temporary, contract and permanent staff services
to commerce
The Group operates branches under the brand
names Madison Recruitment, Madison Force,
Interim Taskforce and Absolute IT (from November
2016) in major cities throughout New Zealand.
These brands derive their revenues from temporary,
contract and permanent staff services to commerce
and are considered to be one operating segment and
one reportable segment for which discrete financial
information is available and whose operating results
are regularly reviewed by the Group’s chief operating
decision maker.
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
15

AWF Madison Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2017 (unaudited)
30 September
2017
(unaudited)
30 September
2016
(unaudited)
(restated)
SEGMENT ASSETS$’000$’000
Temporary staffing to industry29,09230,584
Temporary, contract and permanent staff services to commerce72,22649,551
Total segment assets101,31880,135
Unallocated assets1,2361,146
Total assets102,55481,281
For the purposes of monitoring segment performance and allocating resources between segments,
the chief operating decision maker monitors the tangible, intangible and financial assets attributable
to each segment. All assets are allocated to reportable segments other than cash, cash equivalents
and tax assets of the parent.
30 September
2017
(unaudited)
30 September
2016
(unaudited)
(restated)
SEGMENT LIABILITIES$’000$’000
Temporary staffing to industry14,29813,899
Temporary, contract and permanent staff services to commerce16,0239,865
Total segment liabilities30,32123,764
Unallocated liabilities34,37719,868
Total liabilities64,69843,632
For the purposes of monitoring segment performance and allocating resources between segments,
the chief operating decision maker monitors the liabilities attributable to each segment. All liabilities
are allocated to reportable segments other than bank loans and tax liabilities of the parent.
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
16

AWF Madison Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2017 (unaudited)
6 months to
30 September
2017
(unaudited)
6 months to
30 September
2016
(unaudited)
6 months to
30 September
2017
(unaudited)
6 months to
30 September
2016
(unaudited)
OTHER SEGMENT INFORMATION$’000$’000$’000$’000
Depreciation
and amortisation
Impairment
Temporary staffing to industry546323–222
Temporary, contract and permanent staff
services to commerce1,318839––
Unallocated––––
Total1,8641,162–222
Employee
benefits
Net additions to
non-current assets
Temporary staffing to industry60,17670,399(345)(177)
Temporary, contract and permanent staff
services to commerce68,13933,964(1,293)(259)
Unallocated686570––
Total129,001104,933(1,638)(436)
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
17

AWF Madison Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2017 (unaudited)
GEOGRAPHICAL INFORMATION
The Group operates in one geographical area,
New Zealand (country of domicile). All revenues
from external customers, and non-current assets
other than financial instruments, deferred tax
assets, post-employment benefit assets, and rights
arising under insurance contracts are attributed
to the Group’s country of domicile.
INFORMATION ABOUT CUSTOMERS
The Group has no customers individually making
up 10% of Group revenue and therefore does not
have a reliance on its major customers (for the
six month period ended 30 September 2016, one
customer represented 10.0% of Group revenue).
FINANCIAL INSTRUMENTS
The carrying amounts of financial instruments at
balance date approximate the fair value at that date.
CONTINGENT LIABILITIES
There were no contingent liabilities as at
30 September 2017 or 30 September 2016.
GROUP
6 months to
30 September
2017
(unaudited)
6 months to
30 September
2016
(unaudited)
RECONCILIATION OF NET PROFIT AFTER TAX
TO CASH FLOWS FROM OPERATING ACTIVITIES$’000$’000
Net profit after income tax3,4183,930
Adjustments for operating activities non-cash items:
Depreciation and amortisation1,8641,384
Loss on disposal of property, plant and equipment(25)(21)
Movement in doubtful debts provision plus bad debt write off in current year10228
Movement in deferred tax(521)(25)
Equity-settled share-based payments(22)81
Total non‑cash items1,3061,647
Movements in working capital excluding movements relating
to purchase of subsidiaries:
(Increase)/ decrease in trade and other receivables, net of bad debt expense11,6335,036
Increase/(decrease) in trade and other payables(3,026)254
Increase/(decrease) in provisions(17)(113)
Increase/(decrease) in taxation payable(1,435)645
Total movement in working capital7,1555,822
Cash flow from operating activities11,87911,399
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
18

AWF Madison Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2017 (unaudited)
DIVIDENDS PAID
During the six months ended 30 September 2017,
the group paid dividends of $2.705 million (six
months ended 30 September 2016: $2.636 million).
PRIOR PERIOD RESTATEMENT
A prior period restatement was made to recognise
deferred tax on the Madison brand of $2.09 million
as a result of the IASB Interpretations Committee
clarification released from its December 2016
meeting that indefinite life intangibles such
as brands where there is no intention to sell,
then a deferred tax liability must be recognised.
Accordingly the ‘intangible assets – goodwill’ and
‘deferred tax liabilities’ amounts presented in the
statement of financial position as at 30 September
2016 have been restated.
EVENTS SUBSEQUENT TO REPORTING DATE
Interim dividend
On 25 October 2017 the directors approved the
payment of a fully imputed interim dividend of
$2.645 million (8.0 cents per share) to be paid
on 27 November 2017.
Other
There were no other material events subsequent
to reporting date.
FINANCIAL STATEMENTSAWF MADISON GROUP INTERIM REPORT 2017
19

Directory
Directors
Ross Keenan (Chairman)
Eduard van Arkel (Independent Director)
Julia Hoare (Independent Director)
Simon Hull (Non-Executive Director)
Wynnis Armour (Non-Executive Director)
Auditor
Deloitte Limited
Deloitte Centre
80 Queen Street
PO Box 33
Auckland
Phone: +64 9 309 4944
Fax: +64 9 309 4947
Solicitors
Russell McVeagh
Vero Centre
48 Shortland Street, PO Box 8
Auckland 1140
New Zealand
DX CX10085
Phone: +64 9 367 8000
Fax: +64 9 367 8163
Share Registry
Link Market Services
L11, Deloitte Centre
80 Queen St
Auckland
New Zealand
PO Box 91976
Ph: +64 9 375 5998
or: 0800 377 388
Registered Office of
AWF Madison Group Limited
Level 6
51 Shortland Street
PO Box 12832
Penrose
Auckland
Phone: 09 526 8770
Fax: 09 579 0224
www.awfmadison.co.nz