AFT FY2018 Results Announcement
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
Market Release
May 23 2018
AFT FY2018 Results Announcement
Performance Highlights
• Total Income increases 16% to $81.9m*
*Total Income comprises Operating Revenues of $80.1m (PCP $69.2m) and License Income of $1.8m (PCP $1.6m)
• Gross Profit grew by 32% to $34.2m.
• Operating Loss of $10.1m (PCP $14.8) has reduced with the growth in Operating Revenues
and an improved Gross profit margin.
• Maxigesic licensed or under distribution agreements in 125 countries.
• Maxigesic sold and launched in ten countries. Registration work and launch preparations
well underway to increase launches over the next 3 years.
• Research and Development We have successfully concluded our largest clinical trial, the
Phase 3 study for the intravenous (IV) form of Maxigesic. The completion of this study along
with the Maxigesic Oral Liquid study represents a significant amount of our clinical trial
expenditure planned at IPO.
• NasoSurf first clinical studies are underway in Australia and New Zealand and a pre-IND
(Investigational New Drug Application) application made to FDA.
• Cash available at 31 March 2018 $6.8m.
AFT Pharmaceuticals Limited (NZX; AFT, ASX; AFP) today announced its full-year audited financial
results for the year ended 31 March 2018 (FY2018).
“The FY2018 results reflect the significant progress on development and commercialisation of our
key innovative products in addition to expanding our Australasian business,” said Hartley Atkinson,
CEO of AFT Pharmaceuticals.
“Our Operating Revenues grew 16% to $80.1m, with our largest market Australia growing at a
significant 33%. Importantly our overall company gross profit grew by 32% as our margins expanded
from 38% in the prior year to 43% this financial year. This has been driven by increases in sales of
over the counter (OTC) products consistent with our strategy.”
Further important advancements in product development and registrations were made during the
year. While these are not immediately apparent in FY2018 income, again they are important building
blocks for future sales growth and profitability.”
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
Financial Overview
Operating Revenues grew 16% to $80.1m. Australia, our largest market, grew by 33%. New Zealand
declined by 7%. Southeast Asia grew 28% and Rest of World grew 27%.
Gross Margin improved by 5% to 43%. The main driver was from the growth in OTC revenues in
Australia and New Zealand.
Licensing Income comprises the milestone payments received from out licensing arrangements we
have in our Rest of World markets and the fees we have received from the divestment of non-core
hospital products. It is classified in the Financial Statements as Other Income. This remained in the
same range as the prior year at $1.8m (PCP $1.6m), with a combination of new out licensing
agreements commencing and milestone payments on existing agreements, together with the
divestment fees.
Research and Development declined to 10% of Revenues as we completed the significant proportion
of our current development programme of our key products. Selling and Distribution declined to
36% of revenue supporting the OTC products in Australia, New Zealand and Southeast Asia. In total,
Operating Expenses represented 58% of Revenue (PCP 63%).
These factors culminated in the reduction in the Operating Loss for the year to $10.1m.
Summary Financial Results
Year Ended 31 March
2018 2017
$'000 $'000
Revenue 80,071 69,205
Cost of Sales 45,880 43,207
Gross Profit 34,191 25,998
Other Income 2,235 2,659
Selling and distribution expenses (28,533) (25,964)
General and administrative expenses (8,308) (5,851)
Research and development expenses (8,230) (11,227)
Equity Accounted Loss of joint venture entity (1,494) (414)
Operating Loss (10,139) (14,799)
Operating Revenue
Operating Revenue grew 16% to $80.1m for the year ended 31 March 2018 from $69.2m for the
year ended 31 March 2017 due primarily to the growth in our primary Australian market.
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
The following tables set out the revenues from our four markets:
Australia Revenue grew by 33% to $49.2m (PCP $37.1m) and this market now makes up 61% of
Group Operating Revenue. With strong growth in its main OTC channel, Maxigesic revenues grew by
65% with significant growth from 1 February 2018 following the regulatory shift of codeine based
painkillers from OTC to prescription only. Other core products such as the Ferro range, Eyecare
range and other pain range also grew well. The Hospital channel again had strong growth and these
two channels drove the growth.
New Zealand Revenue declined 7% down to $27.1m (PCP $29.2m) and now represents 34% of the
Group Operating Revenue. The decline was due to AFT ceasing the sole supply tender product
Metoprolol in FY2018. OTC sales recovered this year following the small decline in the Pharmacy
channel in the previous year, which is pleasing given the higher margins in OTC products. This
-
10.0
20.0
30.0
40.0
50.0
$ m
FY2017
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
$ m
FY2018
1.5%
2.8%
42.1%
53.6%
FY2017
1.6%
3.1%
33.8%
61.4%
FY2018
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
assisted an increase of 19% in gross profit compared with prior year. The Hospital channel had good
growth over a wide range of products.
Southeast Asia Revenue grew by 28% to $1.3m (PCP $1.0m) and this market stays steady at 1.6% of
Group Operating Revenue. Sales were predominantly in the Singapore market where product
registration is generally quicker to obtain. The Hospital channel still accounts for most of the
revenue from this market. That said, OTC grew at 48% and we expect more of the growth to come
from this channel going forward.
Rest of World Revenue grew by 27% to $2.5m (PCP $2.0m) and this market now makes up 3.1% of
the Group Operating Revenue. Most of the revenues are from sales and royalties of Maxigesic. For
example, sales to the United Arab Emirates have grown by 30%, while in Italy in market sales made
by the licensee have grown well. Maxigesic is being sold in eight countries outside of Australia and
New Zealand (Brunei, Israel, Italy, Malta, Serbia, Singapore, United Arab Emirates and United
Kingdom). Launches are also dictated by regulatory timelines which influence the new market
timelines. These were negatively impacted by slower than expected registrations in the EU. However
these registrations have now been achieved and launches are anticipated to get back on track this
current financial year.
Gross Margin
Gross Margin of 43% for FY2018 improved by 5% from 38% for FY2017. The main drivers for the
improvement were from the growth in OTC revenues primarily in Australia and to a lesser extent by
the OTC revenue recovery in New Zealand. The OTC channel has the highest gross margin. The
growth in gross margin is expected to continue as the Australian and Rest of World OTC revenues
grow.
Other Income
Licensing Income comprises the milestone payments received from out licensing arrangements we
have in our Rest of World markets and the fees we have received from the divestment of non-core
hospital products. It is classified in the Financial Statements as Other Income. This remained in the
same range at $1.8m (PCP $1.6m), with a combination of new out licensing agreements commencing
and milestone payments on existing agreements, together with the divestment fees.
Operating Overheads
Total Research and Development investment reduced to $9.7m (PCP $11.6m). This includes the
$1.5m spend on Pascomer which under IFRS accounting standards we are required to record as joint
venture equity accounted loss in the consolidated income statement. A large portion of total
research and development spend was on the Maxigesic IV clinical trial in the United States which has
now concluded with strongly positive results.
Selling and Distribution expenses increased to $28.5m (PCP $25.9m). However, these expenses
declined as a percentage of operating revenue to 36% (PCP 38%). They comprise primarily the
support of OTC products in the Australia, New Zealand and Southeast Asia markets.
General and Administration expenses increased to $8.3m (PCP $5.9m) primarily due to one off legal
costs incurred relating to competitor legal action challenging certain Maxigesic claims. AFT remains
confident of its legal position with the outcome of the claims due during FY19.
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
Balance Sheet
Total Assets of $55.6m (PCP $58.3m) have reduced primarily due to the investment made into
research and development. Working Capital requirements remained the same at $22.9m with close
management of inventory levels and debtor management.
The cash position of $6.8m at March 31 2018 (PCP $15.9m) reflects primarily the $12.7m loss due to
investment into research and development, the US$5m drawdown on the debt facility and the
$1.1m equity raise from the share placement in May 2017.
The Balance Sheet is primarily working capital driven. Intangible assets are growing and are now
$5.1m (PCP $2.5m). This year we have capitalised $2.5m of development costs which relate to the
new delivery forms of Maxigesic. The balance of Intangible assets comprise capitalised patents and
trademarks. The investment in the Pascomer joint venture entity has increased to $2.1m (PCP
$0.6m) with spend of $3.0m on product development.
The company is pleased to note that, given their satisfaction with the progress of the company, CRG
the holder of the long term loan to AFT has removed the requirement for any repayment of the loan
prior to its maturity in March 2020 and has made available a further US$5m draw down at the
company’s option prior to 30 September 2018.
OTC products already launched in FY2017 will continue to drive sales growth in Australia. The
codeine opportunity, whilst being difficult to accurately forecast, is significant given that 750 million
tablets of codeine based OTC products were sold in Australia every year. In New Zealand, Medsafe
have announced a similar codeine rescheduling which will occur in the 2020 year. This will again
offer a further opportunity to expand Maxigesic sales in our New Zealand market.
Outlook
We have maintained continuing tight overhead control on fixed costs such as staff numbers and
completed the year with a cash balance of around $7M and with many of our expensive Research
and Development (R&D) projects such as the Maxigesic IV study completed. Our R&D costs are now
able to be significantly reduced given that we have concluded much of the development work
outlined in our IPO documents.
We will look to moderate our R&D spend in order to achieve a clear path to profitability. We had
always targeted break-even in either the FY2018 or FY2019 time periods with the former target
dependent upon a significant licensing agreement.
The timing of licensing agreements is always difficult to forecast with certainty. Finalising with a
suitable partner is paramount rather than completing an agreement with an unsuitable partner in
order to make a pre-announced deadline. However with the increasing sales, increasing gross profit
and lower R&D spend, we are confident of break-even in the FY2019 year independent of licensing
income from additional agreements.
End of release
For more information:
Malcolm Tubby, Chief Financial Officer, AFT Pharmaceuticals Ltd
Phone: +64 9 488 0232
Email: malcolm@aftpharm.com
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
About AFT
AFT is a growing multinational pharmaceutical business with a broad range of products, both
developed itself and in-licensed from third parties. AFT’s products cover all major pharmaceutical
distribution channels: over-the-counter, prescription and hospital. Historically, AFT’s home markets
have been Australia, New Zealand and South-East Asia. However the company is out-licensing its
own products to licensees and distributors to sell in an increasing number of countries around the
world. The company’s intensive Research and Development programme forms the basis of its
international sales strategy. For more information about the company, visit our website
www.aftpharm.com
.
---
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
AFT Pharmaceuticals Limited
Results for announcement to the market
Reporting Period: For the twelve month reporting period to March 31 2018
Previous Reporting Period: For the twelve month reporting period to March 31 2017
Amount
NZ$’000
Percentage
Change
Revenues from ordinary activities 80,071 Up 16%
Loss from ordinary activities after tax attributable to security holders (12,724) Down 31%
Net loss attributable to security holders (12,650) Down 30%
Interim / Final Dividend
Amount per
security NZ$
Imputed
Amount per
security NZ$
Interim – Unlisted Redeemable preference shares NZ 3.5c NZ 1.4c
Record date: 14 June 2017
Dividend payment date: 30 June 2017
Interim – Unlisted Redeemable preference shares NZ 3.2c NZ 1.3c
Record date: 14 December 2017
Dividend payment date: 30 December 2017
Interim – Unlisted Redeemable preference shares NZ 3.2c NZ 1.2c
Record date: 14 March 2018
Dividend payment date: 30 March 2018
Net Tangible Assets per Share
March
31 2018
NZ$
March
31 2017
NZ$
Net Tangible Assets per Share
0.02
0.17
Comments:
Accompanying this announcement are the Group’s audited consolidated financial statements for the twelve
months ended 31 March 2018. These financial statements and the full year results commentary dated May 23
2018 provide the balance of information requirements in accordance with NZX Listing Rule 10.3.2 and
Appendix 1.
Pursuant to ASX listing rule 1.15.3 AFT Pharmaceuticals Limited confirms that it continues to comply with the
rules of its home exchange (NZX Main Board).
The unlisted Redeemable preference shares issued on 24 March 2017 attract a dividend rate of 9.4% per
annum, or 25.8 cents per share per annum. For the 31 March 2017, 30 June 2017, 31 December 2017 and 31
March 2018 quarter ends, 50% of the dividend was paid in cash and included in the above table. For the 30
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
September 2017 quarter end no dividends were paid. The remaining 50% of dividends net of withholding taxes
for the 31 March 2017, 30 June 2017, 31 December 2017 and 31 March 2018 quarter ends together with all of
the dividends net of withholding taxes for the 30 September 2017 quarter end have been accumulated in the
Redeemable Preference Share Reserve.
No dividends have been paid on ordinary shares.
Additional Information
The following is additional information to accompany the Company’s annual report for the twelve months
ended 31 March 2018.
Summary of waiver granted
On 21 December 2015, NZX granted the Company a waiver (Original Waiver) from NZX Main Board Listing
Rule 5.2.3 in respect of its quoted shares (Shares) for a period of 12 months to the extent the Rule
required the Company to have at least 25% of Shares held by Members of the Public holding at least a
Minimum Holding (as that term is defined in the NZX Main Board Listing Rules). The Original Waiver has
expired. On 21 December 2016, a further waiver from NZX Main Board Listing Rule 5.2.3 was granted to
AFT for an additional 12 month period. This waiver was renewed by NZX Regulation for a further 12
month period on 20 December 2017.
The waiver was granted on the following conditions:
• NZX receives an undertaking from the Atkinson Family Trust (AF Trust) that it will not increase its
holding in AFT during the term of the waiver, otherwise than as a result of an allotment pursuant to
an offer or issue of shares that is made pro- rata to all AFT shareholders;
• At least 10% of shares are held by more than 500 Members of the Public, with each Member of the
Public holding at least a Minimum Holding;
• AFT clearly and prominently discloses this waiver, its conditions, and its implications in AFT’s half
year and annual reports, and in any Offer Documents relating to any offer of shares undertaken by
AFT, during the period of the waiver;
• AFT consistently monitors the total number of Members of the Public holding shares and the
percentage of shares held by Members of the Public holding at least a Minimum Holding;
• AFT notifies NZX as soon as practicable if there is any material reduction to the total number of
Members of the Public holding at least a Minimum Holding of shares, and/or the percentage of
shares held by Members of the Public holding at least a Minimum Holding; and
• AFT provides NZX with a written quarterly update of the total number of Members of the Public
holding shares holding at least a Minimum Holding and the percentage of shares held by Members of
the Public holding at least a Minimum Holding. The quarterly updates are from the date the waiver is
granted, for the period of the waiver. The updates are to be provided to NZX within ten business
days of the end of each quarter.
• AFT provides NZX, with the second quarterly update, an update on the proposed initiatives AFT
intends to undertake to materially increase the percentage of shares held by Members of the Public
before the expiry of the waiver.
The implication of the waiver is that the Shares may not be widely held and that there may be reduced
liquidity in the Shares following quotation. A copy of each waiver can be viewed at www.aftpharm.com.
[End of release]
For more information:
Malcolm Tubby
Chief Financial Officer, AFT Pharmaceuticals Ltd
Phone: +64 9 488 0232
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
Mobile: +64 21 36 88 69
Email: malcolm@aftpharm.com
---
Contents
02 Independent Auditor’s Report
05 Consolidated Income Statement
06 Consolidated Statement
of Comprehensive Income
07 Consolidated Statement
of Changes in Equity
08 Consolidated Balance Sheet
09 Consolidated Statement
of Cash Flows
10 Notes to the Financial Statements
32 Directory
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
01
Independ ent Au ditor’s Report
To the Shareholders of AFT Pharmaceuticals Limited
OpinionWe have audited the consolid ated financial statements of AFT Pharmaceuticals Limited and
its subsidiaries (the ‘Gr oup’), which comprise the consolid ated balance sh eet as at 31
March 2018, and the consolid ated income statement, statement of comprehensive income,
statement of changes in equit y and statement of cash flows for the year then ended, and
notes to the consolid ated financial statements, including a summary of signif icant
accounting polic ies.
In our opinion, the accompanying c onsolid ated financial statements, on pages 5 to 31,
present fairly, in all material respects, the consolid ated financial position of the Gr oup as
at 31 March 2018, and its consolid ated financial performance and cash flows for the year
then ended in accordance with New Zealand Equivalents to International Financial
Reporting Standards (‘N Z IFRS’) and International Financial Reporting Standards (‘IFRS’).
Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (‘I SAs’)
and International Standards on Auditing (New Zealand) (‘ISAs (NZ)’) . Our responsibilit ies
under those standards are further described in the Auditor’s Responsibilit ies for the Audit
of the Consolid ated Financial Statements section of our report.
We belie ve that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1
(Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing
and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ Code of Ethics for Professional Accountants, and we have fulf ille d our other
ethical responsibilit ies in accordance with these requir ements.
Other than in our capacity as auditor and the provision of taxation advice, we have no
relationship with or int erests in the Company or any of its subsidiaries. These service s
have not impaired our independence as auditor of the Company and Group.
Audit materialityWe consider materialit y primarily in terms of the magnit ude of misstatement in the
financial statements of the Group that in our ju dgement would make it probable that the
economic deci sions of a reasonably knowledgeable person would be changed or inf luenced
(the ‘q uantitative’ materialit y). In addition, we also assess whether other matte rs that
come to our atte ntion during the audit would in our ju dgement change or inf luence the
deci sions of such a person (the ‘q ualit ative’ materialit y). We use materialit y both in
planning the scope of our audit work and in evaluating the results of our work.
We determined materialit y for the Group financial statements as a whole to be $1 million.
Key audit mattersKey audit matte rs are those matte rs that, in our professional ju dgement, were of most
signif icance in our audit of the c onsolid ated financial statements of the current period.
These matte rs were addressed in the context of our audit of the consolid ated f inancial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matte rs.
02
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
03
Key audit matterHow our audit addressed the key audit matterand
the results of our work
Research and development costs
As disclosed in note 6 and note 12, the Group is involved in
the research and development of new products and variants of
existing products.
During the year ended31 March 2018, research and
development costs of $8,986million were incurred. Of this
total, $6,521million was expensed through profit or loss and
$2,465million has beencapitalised as intangible assets.
Judgement is required in assessing whether research and
development costs for each project should be capitalised or
expensed in accordance with the relevant financial reporting
framework.
A key consideration that impacts whether costs should be
capitalised is the technical feasibility of completing the
development of a new product, which generally includes
demonstrating approval of the product by the relevant market
regulatory authority.
In performing our procedures we:
a)understoodmanagement’s processes and controls
to assess the appropriate accounting treatment for
each project;
b)determined
whether the Group’s accounting policies
are consistent with requirements of the relevant
accounting standards;
c)obtainedan analysis from management as to the
status of each individual project and corroborated
with operational management;
d)testeda sample of costs expensed to supporting
documentation to verify the amounts being
expensed and the status of the project;
e)determined whetherthe coststested as part of our
samplein (d) should have been capitalised;
f)testeda sample of costs capitalised to supporting
documentation to verify the amounts being
capitalised and the status of the project;
g)determined whetherthe expenses tested as part of
our sample in (f) should have been expensed;
h)challenged whether management’s
treatment of the
costs is appropriate.
Other informationThe directors are responsibleon behalf of the Groupfor the other information. The other
information comprises the information in the Annual Report that accompanies the
consolidated financial statements and the audit report.
Our opinion on the consolidated financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and consider whether it is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If so, we are required to report that
fact. We have nothing to report in this regard.
Directors’ responsibilities for
the consolidated financial
statements
The directors are responsible on behalf of the Group for the preparation and fair
presentation of the consolidatedfinancial statements in accordance with NZ IFRSand
IFRS, and for such internal control as the directors determine is necessary to enable the
preparation of consolidatedfinancial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidatedfinancial statements, the directors are responsible on behalf
of the Group for assessing the Group’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations,
or have no realistic alternative but to do so.
Auditor’s responsibilities for
the audit of the consolidated
financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and
ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial
statements is located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for -assurance-practitioners/auditors-responsibilities/audit-
report-1
This description forms part of our auditor’s report.
Restriction on useThis report is made solely to the Company’s shareholders, as a body. Our audit has been
undertaken so that we might state to the Company’s shareholders those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the
Company’s shareholders as a body, for our audit work, for this report, or for the opinions we
have formed.
Jason Stachurski, Partner
forDeloitte Limited
Auckland, New Zealand
23 May 2018
This audit report relates to the consolidated financial statements of AFT Pharmaceuticals Limited(the ‘Company’) for the year
ended 31 March 2018included on the Company’s website. The Directors are responsible for the maintenance and integrity of the
Company’s website. We have not been engaged to report on the integrity of the Company’s website. We accept no responsibility
for any changes that may have occurred to the consolidated financial statements since they were initially presented on the
website. The audit report refers only to the consolidated financial statements named above. It does not provide an opinion onany
other information which may have been hyperlinked to/from these consolidated financial statements. If readers of this report are
concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the
audited consolidated financial statements and related audit report dated 23 May 2018to confirm the information included in the
audited consolidated financial statements presented on this website.
04
Auditor’s responsibilities for
the audit of the consolidated
financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and
ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial
statements is located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for -assurance-practitioners/auditors-responsibilities/audit-
report-1
This description forms part of our auditor’s report.
Restriction on useThis report is made solely to the Company’s shareholders, as a body. Our audit has been
undertaken so that we might state to the Company’s shareholders those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the
Company’s shareholders as a body, for our audit work, for this report, or for the opinions we
have formed.
Jason Stachurski, Partner
forDeloitte Limited
Auckland, New Zealand
23 May 2018
This audit report relates to the consolidated financial statements of AFT Pharmaceuticals Limited(the ‘Company’) for the year
ended 31 March 2018included on the Company’s website. The Directors are responsible for the maintenance and integrity of the
Company’s website. We have not been engaged to report on the integrity of the Company’s website. We accept no responsibility
for any changes that may have occurred to the consolidated financial statements since they were initially presented on the
website. The audit report refers only to the consolidated financial statements named above. It does not provide an opinion onany
other information which may have been hyperlinked to/from these consolidated financial statements. If readers of this report are
concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the
audited consolidated financial statements and related audit report dated 23 May 2018to confirm the information included in the
audited consolidated financial statements presented on this website.
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
05
Consolidated Income Statement
For the year ended 31 March 2018
$NZ000’s Note 20182017
Revenue480,07169,205
Cost of sales(4 5,8 8 0)(4 3, 2 07 )
Gross Profit
34,19125,998
Other income
52,2352,659
Selling and distribution expenses
6(a)(28,533)(25,964)
General and administrative expenses
6(a)(8,308)(5,851)
Research and development expenses
6(a)(8,230)(11,227)
Equity accounted loss of joint venture entity
13(b)(1,494) (414)
Operating Loss
(10,139)(14,799)
Finance income125347
Finance costs
6(a)(2,652)(3,878)
Loss before tax
6(12,666)(18,330)
Tax expense
7(58)(58)
Loss after tax attributable to owners of the parent(12,724)(18,388)
Basic and diluted loss per share ($)
25(0.13)(0.19)
06
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2018
$NZ000’s 20182017
Loss after tax(12,724)(18,388)
Other comprehensive income
May be subsequently reclassified to profit and loss:
Foreign currency translation reserve74356
Other comprehensive income/(loss) for the year, net of tax74356
Total comprehensive loss for the year
attributable to owners of the parent(12,650)(18,032)
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
07
Consolidated Statement of Changes in Equity
For the year ended 31 March 2018
$NZ000’s Note
Share
capital
Redeemable
preference
shares
reserve
Share
options
reserve
Foreign
currency
translation
reserve
Retained
earnings
Total
equity
Balance 31 March 201653,902 - 65(100)(25,637) 28,230
Loss after tax - - - -(18,388)(18,388)
Other comprehensive income -- -356 -356
Total comprehensive income---356(18,388)(18,032)
Issue of redeemable preference shares
179,124 - - - -9,124
Movement in share options reserve - -230 - -230
Capital raising expenses
17(82) - - - -(82)
Balance 31 March 201762,944 - 295256 (4 4,025)19,470
Loss after tax - - - -(12,724)(12,724)
Other comprehensive income - - -74 -74
Total comprehensive income---74(12,724)(12,650)
Preference dividends accumulated
17-483---483
Issue of share capital1,065----1,065
Capital raising expenses
17(266)----(266)
Movement in share options reserve - -135 - -135
Preference dividends paid or
accumulated
17----(895)(895)
Balance 31 March 201863,743483430330( 57, 6 4 4)7, 3 4 2
08
Consolidated Balance Sheet
As at 31 March 2018
$NZ000’s Note 20182017
Assets
Current assets
Inventories
824,41222,198
Trade and other receivables
916,95416,051
Cash and cash equivalents
106,77015,905
Derivative assets
20176-
Total current assets
48,31254,154
Non-current assets
Property, plant and equipment
11330386
Intangible assets
125,1182,548
Deferred income tax assets
7708610
Investment in joint venture entity
13(b)2,135 627
Total non-current assets8,2914,171
Total assets
56,60358,325
Liabilities
Current liabilities
Trade and other payables
141 7, 3 9 114,549
Provisions
151,098564
Current income tax liability118112
Derivative liabilities
20-204
Total current liabilities18,60715,429
Non-current liabilities
Interest bearing liabilities
1630,65423,426
Total liabilities49,26138,855
Equity
Share capital1763,74362,944
Retained earnings( 5 7, 6 4 4 )(44,025)
Share options reserve
19(b)430 295
Redeemable preference shares reserve483-
Foreign currency translation reserve330256
Total equity
7, 3 4 219,470
Total liabilities and equity
56,60358,325
Net tangible assets per ordinary share $0.02 $0.17
For and on behalf of the Board who authorised these financial statements for issue on 23 May 2018.
Hartley Atkinson
Managing Director and
Chief Executive Officer
David Flacks
Chairman
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
09
Consolidated Statement of Cash Flows
For the year ended 31 March 2018
$NZ000’s Note 20182017
Cash flows from Operating Activities
Receipts from customers79,27866,491
Interest received125347
Payments to suppliers and employees(88,296)(83,043)
Tax (paid) / received(149)16
Interest and finance cost paid(1,862)(2,873)
Net cash used in operating activities
18(10,904)(19,062)
Cash flows from Investing Activities
Purchases of property, plant and equipment(70)(122)
Purchases of intangible assets(2,783)(620)
Investment in joint venture(3,002)(856)
Net cash used in investing activities
(5,855)(1,598)
Cash flows from Financing Activities
Proceeds from issue of share capital1,0659,124
Share issue costs(188)(82)
Dividends paid(41 2)-
New borrowings
167, 1 3 5-
Net cash generated from financing activities
7, 6 0 09,042
Net decrease in cash(9,159)(11,618)
Impact of foreign exchange on cash and cash equivalents24(4 57 )
Opening cash and cash equivalents15,9052 7, 9 8 0
Closing cash and cash equivalents6,77015,905
10
Notes to the Financial Statements
For the year ended 31 March 2018
1. General information
AFT Pharmaceuticals Limited (the “Company”) is a company that is incorporated and domiciled in New Zealand. It is
registered under the Companies Act 1993. These financial statements comprise AFT Pharmaceuticals Limited and its
subsidiaries (together referred to as the “Group”). The Group is a pharmaceutical distributor and developer of
pharmaceutical intellectual property.
The financial statements of the Group have been prepared in accordance with the requirements of the Companies Act 1993,
Financial Reporting Act 2013 and the Financial Markets Conduct Act 2013. As Group financial statements are prepared and
presented for AFT Pharmaceuticals Limited and its subsidiaries, separate financial statements for AFT Pharmaceuticals
Limited are not required to be prepared under the Companies Act 1993.
These financial statements are authorised for issue on 23 May 2018 by the directors.
2. Statement of accounting policies
The financial statements have been prepared under the historical cost convention with the exception of derivative
instruments revalued to fair value.
(a) Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with Generally Accepted Accounting
Practice in New Zealand (NZ GAAP). The Group is a for-profit entity for the purposes of complying with NZ GAAP.
The consolidated financial statements comply with New Zealand equivalents to International Financial Reporting Standards
(NZ IFRS), other New Zealand accounting standards and authoritative notices that are applicable to entities that apply
NZ IFRS. The consolidated financial statements also comply with International Financial Reporting Standards (IFRS), and
interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS.
The accounting policies presented below have been applied consistently to all periods presented in these consolidated
financial statements.
The reporting currency used in the preparation of these consolidated financial statements is New Zealand dollars,
rounded where necessary to the nearest thousand dollars.
(b) Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities and the results of the parent and its subsidiaries
controlled at year end.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for the subsidiaries of the Group. The cost of an acquisition is
measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date
of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date. The excess of the cost of acquisition over the fair value of
the Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the
Group’s share of the fair value of the identifiable net assets of the subsidiary acquired, the difference is recognised
in profit or loss.
Inter-company transactions, balances and unrealised gains on transactions between subsidiary companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Joint venture
Where the Company has joint control in a joint venture, the principles of equity accounting are adopted. In these cases, the
Company’s investment is recognised in the balance sheet and its share of after tax profits less losses of the joint venture are
recognised in the profit and loss, with the value of the Company’s investment carrying value adjusted accordingly.
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
11
2. Statement of accounting policies (continued)
(c) Critical accounting estimates and judgements
In preparing these financial statements the Group made estimates and assumptions concerning the future. These estimates
and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are
based on historical experience and other factors, including expectations or future events that are believed to be reasonable
under the circumstances. The recognition of deferred tax (detailed within note 7) and treatment of research and development
costs (detailed within note 12) are considered critical estimates and judgements. It is not expected that these estimates and
judgements will have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year.
(d) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of the subsidiaries’ operations are measured using the currency of the primary
economic environment in which they operate (the ‘functional currency’). The consolidated financial statements are presented
in New Zealand dollars (NZ$), which is the Company’s functional currency and the Group’s presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies, are recognised
in the income statement.
(iii) Foreign operations
The results and balance sheets of all foreign operations (none of which has the currency of a hyperinflationary economy)
that have a functional currency different from New Zealand dollars are translated into the presentation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
• income and expenses for each income statement and statement of comprehensive income are translated at average
exchange rates, unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the
transaction dates, in which case income and expenses are translated at the dates of the transactions.
• exchange differences arising are recognised in other comprehensive income and accumulated in equity.
(e) Revenue recognition
Revenue comprises the fair value for the sale of goods, excluding Goods and Services Tax (GST), rebates and discounts.
• The sales of goods are recognised when the product is delivered to the customer.
• Royalties are recognised when licencees have made sales of product which attract royalties to the Company.
(f) Other income recognition
Other income comprises research and development grant and licensing income:
• Research and development grant
Research and development grant income is recognised when eligible research and development expenses are incurred and
conditions relating to the grant are satisfied.
• Licencing income
Licencing income comprises milestone payments due under licencing agreements. Milestone payments represent a minor
portion of the economic benefits of the licencing agreements (the primary benefits being the sale of product and royalties
earned on licensee sales). The milestones are recognised as income according to the terms of each licencing agreement.
(g) Finance income recognition
Finance income comprises interest income that is recognised on a time-proportion basis using the effective interest method.
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
12
(h) Property, plant and equipment
All plant and equipment is stated at historical cost less depreciation and any impairment losses. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. 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 Company and Group and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation of property, plant and equipment is calculated using the diminishing value method which apportions the cost of
the assets over their useful lives. The Group has the following classes of property, plant and equipment and depreciation rates:
Category Depreciation rate (%)
Plant and machinery 21% to 80%
Furniture and fixtures 9% to 60%
Vehicles 26% to 36%
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 disposal are determined by comparing proceeds to carrying amounts and are included in the
income statement.
(i) Intangible assets
Finite useful life
Acquired patents, capitalised development costs and software have a finite life and are carried at cost less accumulated
amortisation. Patents are amortised over a useful economic life of 20 years, capitalised development costs over the life of
the relevant patent or period of expected benefit, and software over 3 – 4 years.
Indefinite useful life
Acquired trademarks are considered to have indefinite useful lives whilst they continue to protect revenue streams.
Trademarks are carried at cost less accumulated impairment. Indefinite useful life assets are tested for impairment annually
or when impairment indicators exist. The asset’s carrying amount is written down immediately to its recoverable amount if
its carrying amount is greater than its estimated recoverable amount.
(j) Goods and services tax (GST)
The income statement and the statement of comprehensive income have been prepared so that all components are stated
exclusive of New Zealand, Australian and Malaysian GST. All items in the balance sheet are stated net of GST, with the
exception of accounts receivable and payable, which include GST invoiced. All components of the statement of cash flows
are stated exclusive of GST.
(k) Income tax
The income tax expense recognised for the period is based on the accounting profit or loss, adjusted for non-taxable and
non-deductible differences.
Current tax is calculated by reference to the amount of income tax payable, calculated using tax laws that are enacted or
substantively enacted at balance date.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax
asset or liability is settled. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised.
(l) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average cost basis.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
(m) Leased assets
Operating leases are those in which all the risks and rewards are substantially retained by the lessor. Lease payments are
charged in the income statement on a straight line basis over the term of the lease.
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
13
2. Statement of accounting policies (continued)
(n) Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for
doubtful debts and provision for customer rebates. Bad debts are written off in the year in which they are identified.
Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off.
A provision for doubtful receivables is established when there is objective evidence that the Group will not be able to collect
all amounts due according to the original terms of receivables. The amount of the provision is the difference between the
asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.
The amount of the provision is recognised in the income statement.
(o) Trade payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial period
which are unpaid. These amounts are incurred and are usually paid within 30 days of recognition.
(p) Borrowings
Borrowings are initially recognised at fair value plus transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (plus transaction costs) and the redemption amount is recognised
in the income statement over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability
for at least 12 months after the balance sheet date. Borrowing costs are expensed as incurred.
(q) Share capital
Ordinary shares, and the now-converted preferred shares, are classified as equity. Both carried equal voting rights.
Preferred shares attracted a dividend yield. Redeemable preference shares also form part of share capital.
(r) Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term investments
with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities
on the balance sheet.
(s) Employee entitlements
Liabilities for wages and salaries, including non monetary benefits, annual leave, and accumulating sick leave expected to be
settled within 12 months of the reporting date are recognised in trade payables or provisions in respect of employees’ services
up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for
non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable. The liability
for employee entitlements that are not expected to be settled within 12 months is carried at the present value of estimated
future cash flows. Staff share options are valued at fair value as calculated independently using the Black Scholes model.
(t) Impairment of non-financial assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
flows (cash generating units). Indefinite useful life assets are tested for impairment annually and whenever there are indicators
of impairment while finite useful life assets are tested only when there are indicators of impairment.
(u) Derivative financial instruments
The Group benefits from the use of derivative financial instruments to manage foreign currency exposures. The fair value
of forward exchange contracts is calculated using discounted cashflows by reference to contractual exchange rates for
contracts in place and the forward exchange rate at year-end, considered level 2 of the fair value hierarchy.
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
14
(v) Research and development
Research is the original and planned investigation undertaken with the prospect of gaining new knowledge and understanding.
This includes: direct and overhead expenses for research, pre-clinical trials and costs associated with clinical trial activities.
All research costs are expensed when incurred.
Development is the application of research findings to a plan or design for the production of new or substantially improved
processes or products prior to the commencement of commercial production. When a project reaches the stage where it is
reasonably certain that future expenditure can be recovered through the process or products produced, expenditure that is
directly attributable or reasonably allocated to that project is recognised as a development asset. The asset will be amortised
from the date of commencement of commercial production of the product to which it relates on a straight line basis over
the life of the relevant patent or period of expected benefit. Development assets are reviewed annually for any impairment
in their carrying value.
(w) Earnings per share
Basic earnings per share is computed by dividing net earnings by the weighted average number of ordinary shares
outstanding during each period. Preferred shares are considered to be anti-dilutive for the earnings per share calculation.
(x) Change in classification
During 2018, the Group modified the classification of provisions for customer rebates from “Provisions” to “Trade and
Other Receivables” to reflect more appropriately the receipts expected from customers.
Comparative amounts in the Balance Sheet were restated for consistency. As a result, for FY2017, $3,386k was reclassified
from “Provisions” to “Trade and Other Receivables”. Additionally, $75k which is held on term deposit for an NZX bond has
been reclassified from “Cash” to “Prepayments”.
(y) Correction of error
During 2018, the Group determined that goods in transit should be accounted for according to Incoterms, other than for
specific ownership terms in the contracts. Previously, the Group recognised inventory once it had inspected and accepted
the goods as per its rights under the contracts. As a result of this change, as at 31 March 2017 there was $3,480k of goods
in transit which had not been recorded. As a consequence, inventories and trade and other payables were understated.
The change has been recorded in these financial statements by restating each of the affected financial statement line items
for prior periods.
The following table summarises the impact on the Group’s consolidated financial statements, of items (x) and (y).
Consolidated Balance Sheet
For the year ended 31 March 2017
Impact of correction of error
$NZ000’sAs previously reportedAdjustmentsAs restated
Inventories18,7183,48022,198
Trade and other receivables19,362(3,311)16,051
Cash15,980(75)15,905
Total current assets54,0609454,154
Total assets58,2319458,325
Trade and other payables11,0693,48014,549
Provisions3,950(3,386)564
Total current liabilities15,3359415,429
Total liabilities38,7619438,855
There is no impact on the Group’s total equity, basic or diluted earnings per share, net tangible assets per ordinary share,
total comprehensive loss or cash flows for the year ended 31 March 2017.
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
15
3. Standards or interpretations not yet effective
No new standards that have been issued and are effective for the periods beginning 1 April 2017 are considered to materially
impact the recognition, measurement or disclosure of these financial statements. Below are new standards and amendments
that have been issued that are not yet effective:
NZ IFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets and financial
liabilities. The complete version of NZ IFRS 9 was issued in September 2014. It replaces the guidance in NZ IAS 39 that relates
to the classification and measurement of financial instruments. NZ 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 and fair value through profit or 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 classify equity instruments that
are not held for trading at fair value through comprehensive income. There is now a new expected credit losses 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. NZ IFRS 9 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
uses for risk management purposes. Contemporaneous documentation is still required but is different to that currently
prepared under NZ IAS 39. The standard is effective for accounting periods beginning on or after 1 January 2018. Early
adoption is permitted. The Group intends to adopt NZ IFRS 9 in the period beginning 1 April 2018, however, no material
impact is expected as no derivatives used by the Company currently qualify for hedge accounting.
NZ IFRS 15 ‘Revenues from Contracts with Customer’
The Group will implement the new standard effective 1 April 2018. The new standard will replace NZ IAS 18 ‘Revenue’ and NZ
IAS 11 ‘Construction Contracts’. NZ IFRS 15 establishes a comprehensive framework for determining whether, how much and
when revenue is recognised and also contains new requirements related to presentation. The core principle in that framework
is that revenue should be recognised dependent on the transfer of promised goods or services to the customer for an
amount that reflects the consideration which should be received in exchange for those goods or services. The objective of
the standard is to provide a five-step approach to revenue recognition that includes identifying contracts with customers,
identifying performance obligations, determining transaction prices, allocating transaction prices to performance obligations,
and recognising revenue when or as performance obligations are satisfied. Judgement will need to be applied, including
making estimates and assumptions for multiple-element contracts in identifying performance obligations, in constraining
estimates of variable consideration and in allocating the transaction price to each performance obligation and to lease
components (if any). The new standard will result in an increased volume of disclosure information in the Consolidated
Financial Statements.
Changes introduced by the standard relevant to AFT
The new standard provides new requirements and additional guidance that are relevant to the AFT Group, notably in the
following areas:
• the Group’s “Sale of goods” are derived from the sale of pharmaceuticals where control transfers to our customer and
our performance obligations are satisfied at the time of shipment to or receipt of the products by the customer. We do
not expect NZ IFRS 15 to significantly change the timing or amount of revenue recognised under these agreements.
• the Group’s “Royalty income” consists of royalty income from the out-licensing of intellectual property (IP), which is
recognised as earned. We do not expect NZ IFRS 15 to significantly change the timing or amount of revenue recognised
on these royalty arrangements as the standard’s royalty exception will apply to these revenues.
• out-licensing contracts may be entered into with no further obligations or may include commitments to late-stage
development, regulatory approval or manufacturing. These may be settled by a combination of up-front payments,
milestone payments, and reimbursement for services provided. Whether to consider these commitments as a single
performance obligation or separate ones, or even being in scope of NZ IFRS 15, is not straight forward and requires some
judgement. Depending on the conclusion, this may result in all revenue from the contract being estimated at inception
and either recognised at a point in time or spread over the time. The outcome under the new standard may differ to the
Group’s current treatment. The new standard provides an exemption for sales-based royalties for licences of intellectual
property which will continue to be recognised as revenue as underlying sales are incurred. Based on the Group’s current
out-licencing contracts, the impact of the new standard is however not considered to be material.
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
16
Transition approach and use of practical expedients
The Group will apply the full retrospective method for the transition. Certain practical expedients permitted by the standard
during the transition will also be used, notably the relief to not restate contracts that began and were completed in FY2018 or
were completed before 1 April 2017 and to not provide in FY2019 the disclosure requirement as per NZ IFRS 15 paragraph 120
for the comparative FY2018 period (‘amount of the transaction price allocated to the remaining performance obligations’).
Since the new standard, including the use of practical expedients, is not expected to materially modify the timing or amounts
of revenue recognised for FY2018, no restatement is expected to be necessary.
Presentational changes
As a result of implementing NZ IFRS 15, the Group will make a presentational change to the consolidated income statement
in FY2019 and will create new notes for Revenue and Other Income to include the increased volume of required disclosure
information.
NZ IFRS 16 Leases
Under adoption of the new NZ IFRS 16, a portion of the annual operating lease costs, which are currently fully recognised as a
functional expense, will be recorded as interest expense. The capitalised value of the leases will be amortised as depreciation,
while the lease liability will be amortised as ongoing lease payments are made.
In addition, a portion of the annual lease payments recognised in the cash flow statement as a reduction of the lease liability,
will be recognised as an outflow from financing activities. These are currently fully recognised as an outflow from operating
activities.
The Group does not expect the changes to significantly affect overall cashflow nor expenses and net profit, however the
costs will be recognised in different classifications (interest, depreciation and liability reduction).
There are no other NZ IFRS or NZ IFRIC interpretations that are not yet effective that would be expected to have a material
impact on the Group.
4. Revenue from operations
$NZ000’s 20182017
Sale of goods79,88269,047
Royalty income189158
Total revenue80,07169,205
5. Other income
$NZ000’s 20182017
Research and development grant409512
Licensing income1,8261,597
Other income -550
Total other income2,2352,659
In FY2017, the Company purchased emergency supplies of Metoprolol at a cost of $823,000, which was damaged in transit
and written off as part of Cost of Sales during the year. An insurance recovery of $550,000 was made against this cost,
which was reported as other income.
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
17
6(a). Net operating profit
$NZ000’s Note 20182017
Loss before tax (12,666)(18,330)
After charging the following specific expenses:
Finished goods material component of cost of goods sold45,40441,671
Inventory write off4761,536
Audit fees and review of financial statements
6(b)193149
Rental expense – premises528502
Operating leases – motor vehicles and equipment450422
Share options expense135 230
Short-term employee emoluments:
Selling and distribution expenses6,6836,233
General and administrative expenses1,8991,594
Research and development expenses1,2821,362
9,8649,189
Research and development expenses:
Product development6,5219,222
New market development1,7092,005
8,23011,227
Depreciation:
Plant and machinery8899
Furniture and fixtures2729
Vehicles1115
126143
Amortisation (included in General and Administration expenses):
Patents11599
Software9984
214183
Finance costs:
Interest3,4963,186
Foreign exchange losses/(gains)(818)710
Other financing costs(26)(18)
2,6523,878
Research is the original and planned investigation undertaken with the prospect of gaining new knowledge and understanding.
This includes: direct and overhead expenses for research, pre-clinical trials and costs associated with clinical trial activities.
All research costs are expensed when incurred.
Development is the application of research findings to a plan or design for the production of new or substantially improved
processes or products prior to the commencement of commercial production. When a project reaches the stage where it is
reasonably certain that future expenditure can be recovered through the process or products produced, expenditure that is
directly attributable or reasonably allocated to that project is recognised as a development asset. The asset will be amortised
from the date of commencement of commercial production of the product to which it relates on a straight-line basis over the
period of expected benefit. Development assets are reviewed annually for any impairment in their carrying value.
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
18
6(b). Fees paid to auditors
$NZ000’s 20182017
Audit of financial statements
Audit of annual financial statements – Deloitte (2017: PwC)129126
Review of half year financial statements - PwC6423
Total fees for audit and review services193149
Other services
Tax due diligence services – Deloitte19-
Total fees paid to auditors212149
Deloitte 148-
PwC64149
7. Income tax
The income tax expense recognised for the period is based on the accounting profit or loss, adjusted for non-taxable and
non-deductible differences.
Current tax is calculated by reference to the amount of income tax payable, calculated using tax laws that are enacted or
substantively enacted at balance date.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax
asset or liability is settled. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised.
$NZ000’s 20182017
(a) Tax expense
Loss before tax(12,666)(18,330)
Tax calculated at domestic tax rates applicable*(1,862)(5,049)
Expenses not deductible4384
Current year losses not recognised2,3235,094
Previous year losses now utilised(603)(197)
Non resident withholding tax160121
Prior year adjustment(3)5
Tax expense/(benefit)5858
Comprising:
Current tax(4 0)117
Deferred tax
98(59)
5858
* Calculated using the pre tax profit / loss and tax rate in New Zealand (28%) and Australia (30%)
$NZ000’s 20182017
(b) Deferred tax balance
Provisions708610
708610
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
19
7. Income tax (continued)
Deferred tax assets relating to unused tax loss carry-forwards and to deductible temporary differences are recognised if it is
probable that they can be offset against future taxable profits or existing temporary differences. As at 31 March 2018, the
Group recognised deferred tax assets on temporary differences totalling $708,000 (2017: $610,000) since it was foreseeable
that temporary differences could be offset against future taxable profits. On the basis of the approved business plans of
subsidiaries, AFT Pharmaceuticals Limited considers it probable that temporary differences can be offset against future
taxable profits. There is no expected change in capital structure in the near future which is expected to affect the
recoverability of the recognised deferred tax assets.
The amount of tax losses carried forward that is available for future utilisation is $45,964,000 (FY2017: $39,815,000).
No deferred tax asset has been recognised in relation to these losses.
$NZ000’s 20182017
(c) Imputation and franking credits available for use
NZD252600
AUD319319
8. Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average cost basis.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
$NZ000’s 2018
Restated
2017
Finished goods25,66422,526
Provision for obsolescence(1,252)(328)
24,41222,198
Inventory on hand comprises pharmaceutical goods ready for resale.
The value of inventory is transferred to cost of sales in the income statement when sold.
9. Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for
doubtful debts and provision for customer rebates. Bad debts are written off in the year in which they are identified.
Collectibility of trade receivables is reviewed on an on-going basis. Debts which are known to be uncollectible are written
off. A provision for doubtful receivables is established when there is objective evidence that the Group will not be able to
collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between
the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.
The amount of the provision is recognised in the income statement. Customer rebates are based on the customer’s ability to
achieve certain sales targets and are computed using the expected rebate percentage for sales made during the period.
$NZ000’s 2018
Restated
2017
Trade receivables 19,8231 7, 4 0 3
Less provision for customer rebates(5,044)(3,386)
Prepayments2,1752,034
16,95416,051
Ageing of overdue trade debtors but not considered impaired
$NZ000’s 1-30 Days31-60 Days61-90 Days90+ DaysTotal
31 March 20182,79743324143,268
31 March 2017323 1673- 493
All balances are expected to be settled within the next 12 months.
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
20
10. Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term
investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities on the balance sheet.
$NZ000’s 2018
Restated
2017
Cash at bank6,74515,876
Cash on hand2529
Total cash6,77015,905
Cash at bank earns, on average, less than 1% of interest.
11. Property, plant and equipment
All plant and equipment is stated at historical cost less depreciation and any impairment losses. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. 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 Company and Group and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation of property, plant and equipment is calculated using the diminishing value method that apportions the cost of
the assets over their useful lives. The Group has the following classes of property, plant and equipment and depreciation rates:
Category Depreciation Rate (%)
Plant and machinery 21% to 60%
Furniture and fixtures 9% to 60%
Vehicles 26% to 36%
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 disposal are determined by comparing proceeds to carrying
amounts and are included in the income statement.
$NZ000’s
Plant and
machinery
Furniture
and fixturesVehiclesTotal
(a) Cost
Balance 31 March 2016694 396 218 1,308
Additions104 18 - 122
Disposals ----
Balance 31 March 2017798 414 218 1,430
Additions43121570
Disposals--(32)(32)
Balance 31 March 20188414262011,468
(b) Depreciation
Balance 31 March 2016(537)(192)(172)(901)
Depreciation(99)(29)(15)(143)
Disposals -- - -
Balance 31 March 2017(636)(221)(187)(1,044)
Depreciation(88)(27)(11)(126)
Disposals--3232
Balance 31 March 2018(724)(248)(166)(1,138)
(c) Carrying amounts
Balance 31 March 2017162 193 31 386
Balance 31 March 201811717835330
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
21
12. Intangible assets
Capitalised development costs
Development projects are regularly reviewed throughout the year by a staff committee comprising the CEO, CFO, GM
Development and Financial Controller. The status of each project is measured against the requirements of NZ IAS 38
and where projects are probable to generate economic benefits, the relevant costs incurred during the financial year are
capitalised. The Group considers technical feasibility, resources required and intention of completing the project in making
this assessment.
Finite useful life
Acquired patents, capitalised development costs and software have a finite life and are carried at cost less accumulated
amortisation. Patents are amortised over a useful economic life of 20 years, capitalised development costs over the life of
the relevant patent or period of expected benefit, and software over 3 – 4 years.
Indefinite useful life
Acquired trademarks are considered to have indefinite useful lives while they continue to protect revenue streams.
Trademarks are carried at cost less accumulated impairment. Indefinite useful life assets are tested for impairment annually
or when impairment indicators exist. The 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.
$NZ000’s Trademarks
Capitalised
development
costsPatentsSoftwareTotal
(a) Cost
Balance 31 March 2016439 -1,978 260 2,677
Additions171 -204 254 629
Disposals -- (9) - (9)
Balance 31 March 2017610 -2,173 514 3,297
Additions842,46523412,784
Disposals-----
Balance 31 March 20186942,4652,4075156,081
(b) Amortisation
Balance 31 March 2016 --(338)(228)(566)
Amortisation--(99)(84)(183)
Disposals -- - - -
Balance 31 March 2017 --(437)(312)(749)
Amortisation --(115)(99)(214)
Disposals -----
Balance 31 March 2018 --(552)(411)(963)
(c) Carrying amounts
Balance 31 March 2017610 -1,736 202 2,548
Balance 31 March 20186942,4651,8551045,118
Trademarks are acquired to protect the current and future revenue streams of the Group.
They are considered to have an indefinite useful life while they continue to protect revenue streams.
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
22
13(a). Investment in subsidiaries
Interest held
2018
%
2017
%
Country of
incorporationPrincipal activities
AFT Pharmaceuticals (AU) Pty Ltd100%100%AustraliaDistribution of pharmaceuticals
in Australia
AFT Pharmaceuticals Singapore Pte Ltd100%100%SingaporeRegistration of pharmaceuticals
in Singapore
AFT Pharmaceuticals (S.E. Asia) Sdn Bhd100%100%MalaysiaDistribution of pharmaceuticals
in Malaysia
AFT Orphan Pharmaceuticals Limited65%65%New ZealandNo activity
AFT Limited Partner Limited100%100%New ZealandPartner in Dermatology
Specialties LP
AFT Dermatology Limited100%100%New ZealandDistribution of pharmaceuticals
All subsidiaries have a balance date of 31 March.
13(b). Investment in joint partnership
$NZ000’s 20182017
Interest in joint venture company at cost4,345 1,343
Equity accounted earnings of joint venture partnership(2,210) (716)
Net equity investment in joint venture partnership2,135 627
The joint venture partnership of the Group and its activities are as follows:
2018
% Interest
held
2017
% Interest
held
Dermatology Specialties LP (incorporated in New Zealand)50% 50%
Principal activities: Development and distribution of pharmaceuticals
$NZ000’s 20182017
Balance at start of year 627 185
Investment during the year3,002 856
Share of current year loss(1,494) (414)
Dividend received- -
Balance at end of year2,135 627
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
23
13(b). Investment in joint partnership (continued)
The following table summarises the financial information relating to the Group’s joint venture partnership and represents
100% of the joint venture partnership net assets, revenues and net profits.
$NZ000’s 20182017
Extracts from joint venture partnership balance sheet (unaudited)
Current assets- -
Non-current assets2,189 2,175
Current liabilities(96) (95)
Non-current liabilities- -
Net assets2,093 2,080
Extracts from joint venture partnership income statement (unaudited)
Revenue- -
Net profit after taxation(2,989) (828)
The joint venture did not have any contingent liabilities or capital commitments at balance date (2017: nil).
14. Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial period
which are unpaid. These amounts are incurred and are usually paid within 30 days of recognition.
$NZ000’s 2018
Restated
2017
Trade payables7, 3 3 510,828
GST payable1,1891,161
Employee entitlements932615
Other payables7, 9 3 51,945
1 7, 3 9114,549
15. Provisions
$NZ000’s 2018
Additional
provisionsUtilised2017
Additional
provisionsUtilised2016
Supplier rebates1,0981,098(564)564 564 (661)661
1,0981,098(564)564564 (661)661
Supplier rebates are based on profit sharing arrangements with suppliers which are estimated on achieving expected set
margin targets and are expected to be utilised within the next 12 months.
16. Interest bearing liabilities
Borrowings are initially recognised at fair value plus transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (plus transaction costs) and the redemption amount is recognised in
the income statement over the period of the borrowings, using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability
for at least 12 months after the balance sheet date. Borrowing costs are expensed as incurred.
$NZ000’s 20182017
CRG (Capital Royalty Partners) loans30,65423,426
30,65423,426
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
24
$NZ000’s
Opening balance of CRG loan 1 April 201723,426
Capitalised interest1,139
Additional loans drawn down7, 1 3 5
Gain on FX translation(1,046)
Closing balance 31 March 201830,654
The term loan agreement with CRG commenced in May 2014 and had a facility draw down of up to USD$30 million by
October 2016. USD$15 million was drawn down. Initially this facility was for a six year term with the first four years being
interest only, and the principal to be repaid in equal quarterly instalments in years five and six.
In September 2017, a new loan facility of USD$10 million was entered into, which includes a minimum mandatory drawdown
of USD$5 million on or before 31 March 2018. This was drawn down in December 2017. A second drawdown for the balance is
available at the Company’s option on or before 30 September 2018.
The repayment terms for all facilities were amended in September 2017 to interest only until maturity, and the principal to be
repaid in full on 31 March 2020.
The loans have a general security over the assets of the Group together with a group guarantee. Interest is fixed at 13.5%
p.a. The loans are denominated in United States dollars (USD) and during the period NZD$1,046,000 (FY2017 $260k) was
recognised as unrealised foreign exchange gains. The carrying amount of the CRG loans are substantially in line with the fair
market value as at balance sheet date.
All covenants relating to the loan and BNZ facility have been complied with during the year (refer note 24).
17. Share capital
Ordinary shares are classified as equity. Preferred shares are classified as equity, they attract a dividend yield and do not
have ordinary share voting rights.
SharesShares
2018
Number
2017
Number
2018
$’000
2017
$’000
Ordinary share capital97,308,01996,834,838 5 7, 0 5 855,994
Less capital-raising costs--(2,439)(2,174)
Redeemable preference shares3,330,0003,330,0009,1249,124
100,638,019100,164,838 63,74362,944
$NZ000’s 20182017
Share capital at beginning of the year62,94453,902
Issue of Redeemable preference shares-9,124
Issue of Ordinary shares1,065-
Less capital raising costs(266)(82)
63,74362,944
FY2017
On 24 March 2017, the Company issued 3,330,000 redeemable preference shares at $2.74 each. These shares attract a
dividend of 9.4% accruing quarterly, which may be satisfied in cash either in full or in part or deferred indefinitely at the
Company’s absolute discretion.
They do not carry any right to vote except at meetings of an ‘interest group’ of holders of redeemable shares.
They may be redeemed at the option of the Company at any time two years or more after issue. On redemption, the Company
would pay the issue price plus unpaid dividends accrued to the date of redemption. The redemption can only be settled in cash.
After three years from issue, they may be converted to ordinary shares at the option of the holder in multiples of 100,000.
The holder would receive one ordinary share for every redeemable share held and a number of ordinary shares calculated by
dividing the amount of any accumulated dividends by the issue price. Conversion of the redeemable preference shares may
only be settled through the issuance of shares. Once the holder has elected to convert, neither the issuer not the holder can
be obligated to settle in any other manner.
Optional conversion events arise if one of a number of conditions occur. These conditions were notified to NZX and ASX at
the time of issue of the redeemable preferences shares and are available on the Company website (www.aftpharm.com).
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
25
17. Share capital (continued)
FY2018
In May 2017, a share purchase plan was issued to existing shareholders, who could elect to purchase shares @NZ$2.25 per
share (AUD$2.11) which was a 3% discount to the volume weighted average price of an AFT share on the NZX main board for
the 5 day period ending on 23 May 2017. Shareholders could subscribe for a minimum of $1,000 and maximum of $15,000
worth of shares at that price. Shareholders subscribed for 473,181 ordinary shares, raising $1,064,657.
18. Reconciliation of loss after tax with net cash flow from operating activities
$NZ000’s 2018
Restated
2017
Loss after tax(12,724)(18,388)
Non-cash items:
Depreciation126143
Amortisation214183
Impact of foreign exchange on cash and cash equivalents24456
Share options expense135230
Interest expense capitalized to loan principle1,139525
Unrealised gain on USD denominated loan(1046)(260)
Share in loss of JV entity1,494414
Movement in working capital:
(Increase)/decrease in inventories(2,214)1,261
(Increase)/decrease in trade and other receivables(1,080)(5,273)
Increase/(decrease) in trade and other payables3,1711,509
Increase/(decrease) in income tax(143)138
Net cash used in operating activities(10,904)(19,062)
19(a). Related parties
The Group had related party relationships with the following entities:
Related party Nature of relationship
CRG (Capital Royalty Partners) Shareholder of both ordinary shares and redeemable preference
The following transactions were carried out with these related parties:
(i) Loans
$NZ000’s 20182017
Capital Royalty Partners (refer note 16)30,65423,426
Total loan balances30,65423,426
(ii) Key management compensation
$NZ000’s 20182017
Directors fees286289
Executive salaries1,0841,092
Short term benefits127238
Options expense2981
Key management compensation1,5261,700
Key management includes external directors, the Chief Executive Officer, the Chief of Staff, the Chief Financial Officer and
the Director of International Business Development. These positions are mainly responsible for the planning, controlling and
directing the activities of the business. The Chief of Staff is the spouse of the Chief Executive Officer.
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
26
19(b). Staff share options
Staff share options are valued at fair value as calculated independently using the Black Scholes model. The options vest over
up to four years from date of issue.
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
2018 2017
Average
exercise price
$ per share
Options
‘000’s
Average
exercise price
$ per share
Options
‘000’s
Balance at beginning of year2.80850 2.80861
Issued-- - -
Forfeited-(157) - (11)
Exercised-- - -
Lapsed- - - -
Balance at end of year2.80693 2.80 850
Weighted average share price for options exercised during the period $nil (2017: $nil).
Of the 693,000 outstanding options, 135,969 are currently exercisable (2017: nil).
Share options outstanding at the end of the year have the following expiry dates, exercise dates and exercise prices:
Expiry month
Exercise
month
Exercise
price20182017
April 2020December 20172.80135,969 151,629
April 2020December 20182.805 5 7, 0 3 1 698,371
Total share options outstanding693,000850,000
The weighted average remaining contractual life of options outstanding at the end of the period was 2 years (2017: 3 years).
Share options reserve
$NZ000’s20182017
Balance at beginning of year(295)(65)
Current year amortisation(135) (230)
Balance at end of year(430) (295)
20. Financial risk management
(a) Managing financial risk
The Group’s activities expose it to various financial risks as detailed below.
• Market risk
Management is of the opinion that the Group’s exposure to market risk at balance date is defined as:
Risk factor Description Sensitivity
(i) Currency risk Exposure to changes in foreign exchange rates on
assets and liabilities of the subsidiary, and USD
denominated borrowings As below
(ii) Interest rate risk Exposure to changes in interest rates on borrowings As below
(iii) Other price risk No commodity securities are bought, sold or traded Nil
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
27
20. Financial risk management (continued)
• Foreign exchange risk
The Group benefits from the use of derivative financial instruments to manage foreign currency exposures.
The fair value of forward exchange contracts is calculated by reference to current forward exchange rates at year end and
the contract exchange rates, considered level 2 of the fair value hierarchy.
The Group purchases goods and services from overseas suppliers in a number of currencies, primarily AUD, USD, EUR and
GBP and has borrowings that are denominated in US dollar amounts. This exposes the Group to foreign currency risk. The
Group manages foreign currency risk through use of derivative arrangements, in particular forward exchange contracts.
The exposure is monitored on a regular basis based on Group foreign exchange policies. Future revenues from markets
outside Australasia will be denominated primarily in USD and EUR which will provide a natural hedge against these costs.
In the current year (FY2018) Foreign Exchange gains totalled $817,992 (2017: $710,000 gain) of which $1,046,000
(2017: $260,000 gain) were unrealised gains on the USD denominated CRG loan. Future revenues from markets outside
Australasia will be derived in USD which will be used towards repaying this debt as it falls due. The balance of the losses are
derived from the restatement of the cash balances at the spot rate on the year end balance date of 31 March 2018 and the
change in spot rates during the time between when expenses are recorded in the general ledger and when they are paid.
In total, the Group had assets and liabilities denominated in the following currencies:
Assets
NZ$000’s
CurrencyLiabilities
NZ$000’s
12,960AUD4,366
134USD33,596
202MYR62
251SGD24
30EUR2,897
-GBP64
A 1% increase or decrease in foreign exchange rates on assets and liabilities will reduce/increase equity by $111,000
(2017: $53,000) and reduce/increase the profit or loss by $354,000 (2017: $341,000).
The following forward foreign exchange contracts were held at the end of the 2018 financial year:
Forward Foreign Exchange Contracts
Buy currency
Buy currency
amount (‘000)
Sell amount
$NZ000’s
Buy amount
31-Mar-18
$NZ000’s
Fair value
$NZ000’s
EUR2,5504,2904,394104
GBP19736538722
USD6,0008,2688,31850
Total benefit as at 31 March 2018176
All contracts mature within one year from 31 March 2018.
The following forward foreign exchange contracts were held at the end of the 2017 financial year:
Forward Foreign Exchange Contracts
Buy currency
Buy (sell) currency
amount (‘000)
Sell (buy) amount
$NZ000’s
Buy (sell) amount
31-Mar-17
$NZ000’s
Fair value
$NZ000’s
EUR3,0124,8064,656(150)
GBP5441,027979(4 8)
USD2,7303,9023,9097
AUD(750)(807)(820)(13)
Total exposure as at 31 March 2017(204)
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
28
• Interest rate risk
Borrowings are at a fixed interest rate, which exposes the Group to fair value interest rate risk. There are no specific
derivative arrangements to manage this risk.
• Credit risk
Financial instruments, which potentially subject the Group to credit risk, principally consist of accounts receivable.
Regular monitoring is undertaken to ensure that the credit exposure remains within the Group’s normal terms of trade.
The Group has one significant concentration of credit risk at 31 March 2018 with the largest debtor being $3,510,000 (2017:
$7,640,667). There has been no past experience of default and no indications of default in relation to this debtor. There are
no impaired receivables at 31 March 2018 (2017: nil).
The Group’s cash and short-term deposits are placed with high credit quality financial institutions. Accordingly, the Group
has no significant concentration of credit risk other than bank deposits, with 8.3% of total assets at the Bank of New
Zealand (2017: 23.9%), 3.8% at NAB Bank (2017: 3.3%) and 0% with ANZ (2017: 0%). The carrying value of financial assets
represents the maximum exposure to credit risk.
• Liquidity risk
Liquidity risk is the risk that the Group may encounter difficulty in raising funds at short notice to meet its commitments
and arises from the need to borrow funds for working capital. The directors monitor the risk on a regular basis and actively
manage the cash available to ensure the net exposure to liquidity risk is minimised. Since May 2014, there has been a $1m
BNZ overdraft immediately available.
The liquidity/maturity profile of the liabilities is as follows:
Liquidity Profile
$NZ000’s
31 March 2018 < 1 Year1-2 Years2-5 Years> 5 YearsTotal
Trade and other payables(16,122)---(16,122)
Borrowings(2,806)(36,458)--(39,264)
Derivative liabilities (outbound)(1 2,747)---(1 2,747)
Derivative liabilities (inbound)12,923---12,923
Totals(18,752)(36,458)--(55,210)
31 March 2017
Trade and other payables(14,549) - - -(14,549)
Borrowings (2,144) (14,454) (13,283)-(29,881)
Derivative liabilities (outbound)(9,132) - - -(9,132)
Derivative liabilities (inbound)8,928 - - -8,928
Totals(16,897) (14,454) (13,283)-(4 4,634)
(b) Fair values
The carrying value of financial assets and liabilities (trade receivables and trade payables) approximates their fair value.
Trade receivables are valued net of provision and trade payables are valued at their original amounts by contract.
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
29
21. Segment reporting
Operating Segments
$NZ000’s
31 March 2018 AustraliaNew ZealandSoutheast AsiaRest of worldTotal
Revenue49,1932 7,0 9 61,2862,49680,071
Other income-721-1,5142,235
Depreciation and amortisation253087-340
Equity accounted loss of joint venture entity---(1,494)(1,494)
Gain / (Loss) before tax538(4,598)(698)(7,907)(12,666)
Finance income / (loss)4121-125
Finance costs(719)(2,027)94-(2,652)
Total assets25,70628,6221402,13556,603
Property, plant and equipment3927417-330
Intangible assets---5,1185,118
Investment in joint venture entity---2,1342,134
Total liabilities5,25442,65186-47, 9 91
Capital expenditure11509-70
31 March 2017
Revenue3 7,0 6 4 29,168 1,005 1,968 69,205
Other income - 550 -2,109 2,659
Depreciation and amortisation25 294 7 -326
Equity accounted loss of joint venture entity---(414)(414)
Loss before tax(3,633)(5,782)(689)(8,226)(18,330)
Finance income -347 - -347
Finance costs(26)(3,728)(124) -(3,878)
Total assets (restated)19,451 37,254 993 62758,325
Property, plant and equipment54 317 15 -386
Intangible assets -- -2,5482,548
Capital expenditure19 722 10 -751
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker (CODM). For the purposes of NZ IFRS 8 the CODM is a group comprising the Board of Directors, together
with the Chief Executive Officer, the Chief of Staff, the Chief Financial Officer and the Director of International Business
Development. This has been determined on the basis that it is this group that determines the allocation of the resources
to segments and assesses their performance.
The Group has four operating segments based on geographical location reportable under NZ IFRS 8, as described below,
which are the Group’s strategic groupings of business units. The following summary describes the operations in each of the
Group’s reporting segments:
New Zealand – Includes the Head Office function for the Group, supplier relationships and procurement of all stock for the
Group, all regulatory activity, all marketing activity and all finance activity. The sales and distribution activity principally
relates to the New Zealand market.
Australia – Includes the sales and distribution activity relating to the Australian market.
Southeast Asia – Includes the sales and distribution activity relating to the Southeast Asian market (Brunei, Hong Kong,
Malaysia, Philippines, Singapore and Vietnam).
Rest of World – Includes the out-licensing of IP developments to markets in which AFT does not have a presence and
the export of products to export markets (Balkans, Iraq, Pacific Islands, Saudi Arabia, United Arab Emirates). The costs
of research and development and new market development activity not specific to the other segments are expensed
to this segment.
Major Customers – Revenues from one customer of the Australian segment (being a licensed wholesaler) represents
approximately NZ$38.5m (2017: NZ$15.5m) and from one customer of the New Zealand segment (also being a licensed
wholesaler) represents approximately $14.6m (2017: $13.9m) of the Group’s total revenues.
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
30
22. Contingent liabilities
In May 2015, AFT Pharmaceuticals Limited signed as guarantor of AFT Pharmaceuticals (AU) Pty Limited for its five-year
lease contract with Investec Limited for the premises occupied in Sydney, Australia. A deposit of AUD$75,000 has been
placed with NAB as security for this lease. The Company has also placed NZD$75,000 on term deposit with the BNZ as
security for a guarantee issued by the BNZ in favour of the NZX, should the Company ever default on any of its payment
obligations to NZX.
23. Commitments
(a) Capital commitments
The Group has no capital commitments at 31 March 2018 (2017: nil).
(b) Lease commitments
Operating leases are those in which all the risks and rewards are substantially retained by the lessor. Lease payments are
charged in the income statement on a straight-line basis over the term of the lease.
$NZ000’s 20182017
Due within one year843890
Due later than one year but within five years1,9532,261
Due later than 5 years1,065 1,750
3,8614,901
The above includes leases for property (with lease terms of 2 to 8 years) and vehicles and equipment (with lease terms
of up to 4 years.
(c) Other commitments
The Company has entered into contracts to complete clinical trials overseas. These contracts call for stage or milestone
payments to be made progressively when those stages or milestones are achieved. Certain conditions allow for the termination
of the trials, with future obligations extinguished. The aggregate expected amounts to be paid under these contracts is
$4.0m (2017: $4.0m).
24. Management of capital
The Group’s objectives when managing capital are to:
• Safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns to its
shareholders, and
• Maintain a strong capital base to support the development of its business.
The Group meets these objectives through a mix of equity capital and borrowings. The level and mix of capital is
determined by the Group’s internal Corporate Governance Policies.
The long-term debt in the form of the CRG Loan was used to replace the trade facility from the BNZ in May 2014.
Under the CRG Loan Agreement, there is a covenant requiring a minimum bank balance of NZ$4m at each month end.
Under the BNZ facility, there is a covenant requirement that the facility, comprising an overdraft and letter of credit facility,
must not exceed the total of 70% of acceptable debtors plus 40% of acceptable stock.
The Group has complied with both the CRG and BNZ covenants during the 2018 and 2017 financial years.
In March 2017 the Group issued 3,330,000 Redeemable Preference Shares raising $9.1m, and in May 2017 an issue of
ordinary shares was offered to existing shareholders, resulting in the issue of 473,181 ordinary shares and raising an
additional $1,064,657. Details are covered in note 17.
AFT PHARMACEUTICALS LIMITED
AFT Financial Statements FY2018
31
24. Management of capital (continued)
Going concern assumption
At 31 March 2018, the outstanding balance on interest bearing loans with CRG amounted to $30.5m (2017: $23.4m). At the
same time, the Group held a cash balance of $6.8m (2017: $16.0m). The Group incurred a net loss in the period of $12.7m
(2017: net loss of $18.4m) and had a net operating cash outflow for the period of $11.0m (2017: $19.1m).
During the period ended 31 March 2018, a new loan facility of US$10m was entered into with CRG of which US$5m has been
drawn and US$5m is available for drawdown (refer note 16). A further $1m of additional share capital was also raised from
existing shareholders (refer note 17).
The CRG loan is due for repayment in full on 31 March 2020 (refer to note 16).
The Directors have approved internal forecasts through to 31 March 2020, considered achievability of the assumptions under
these forecasts, reviewed the existing working capital against Group requirements and considered forecast compliance with
applicable debt covenants. The key revenue assumptions, which like all assumptions, are subject to a degree of uncertainty are:
• the ability to execute further licensing agreements for the key innovative products, Maxigesic, Pascomer and NasoSurf;
• the ability to generate future international revenues from the existing and potential licensing agreements for the key
innovative products, Maxigesic, Pascomer and NasoSurf; and
• the continued Australian sales growth for Maxigesic as the market adjusts for the re-scheduled codeine-based painkillers
from over-the-counter to prescription only, which took effect on 1 February 2018 (Maxigesic is codeine-free and is therefore
exempt and remains available over-the-counter).
The directors actively monitor and manage these key revenue growth plans, together with their associated uncertainties, and
have also taken into account the ability of the Group to significantly reduce and or defer forecast development and marketing
spend should this be required, in order to preserve funds.
After considering the uncertainties and mitigations described above, the Directors have a reasonable expectation that the
Group will be in a position to repay this loan on or before 31 March 2020 from a combination of positive cash flows, issuance
of new equity or by establishing a replacement facility if required.
25. Earnings per share
Basic earnings per share is computed by dividing net earnings by the weighted average number of ordinary shares
outstanding during each period.
The calculation of diluted earnings per share assumes the conversion of all dilutive potential ordinary shares in determining
the denominator.
$NZ000’s 20182017
Earnings used in the calculation of basic and diluted earnings per share
Loss after tax(12,724)(18,388)
Weighted average ordinary shares for the purposes of basic and diluted earnings per share 97,248,87196,837,838
Basic and diluted loss per share ($)(0.13)(0.19)
26. Dividends per share
No dividends have been declared to the ordinary shareholders of the parent company during the current year, nor in FY2017.
Gross dividends of $894,506 were declared on the Redeemable Preference Shares, with $411,701 paid in cash and withholding
taxes, and $482,805 accumulated in a reserve for future settlement per the terms described at note 17.
27. Subsequent events
On 30 April 2018, the Group announced that it had concluded its divestment of non-core hospital products by divesting
to Baxter Healthcare a range of non-core hospital products currently sold in Australia. The expected completion date is
1 June 2018. For FY2018 sales of these products in Australia were NZ$5.2m and stock on hand was NZ$1.0m.
Notes to the Financial Statements (continued)
For the year ended 31 March 2018
32
AFT is a company incorporated with limited liability under the New Zealand Companies Act 1993
(Companies Office registration number 873005).
Registered OfficeLevel 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
+64 9 488 0232
www.aftpharm.com
Mertons, Level 7, 330 Collins Street, Melbourne, Victoria 3000, Australia
+61 3 8689 9997
Principal
Administration
Office
Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
+64 9 488 0232
www.aftpharm.com
113 Wicks Road, North Ryde NSW 2113, Australia
+61 2 9420 0420
ARBN: 609 017 969
Directors
(as at date of this
annual report)
Dr Hartley Atkinson
Marree Atkinson
Dr James (Jim) Burns
David Flacks
Nathan (Nate) Hukill
Jon Lamb
Dr Douglas (Doug) Wilson
Share RegistrarComputershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
+64 9 488 8777
enquiry@computershare.co.nz
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street, Abbotsford VIC 3001, Australia
+61 3 9415 4083
enquiry@computershare.co.nz
AuditorDeloitte
80 Queen Street, Auckland 1140, New Zealand
+64 9 307 0700
Annual Meeting3 August 2018
Half-Year End30 September 2018
Interim Results
Announcement
November 2018
Financial Year End31 March 2019
Financial calendar
Directory
AFT PHARMACEUTICALS LIMITED
Annual Report 2017
33
---
AFTPHARMACEUTICALS
Investor Presentation
May2018
Investor Presentation
May 2018
IMPORTANT NOTICE
This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of AFT. It is not
prepared for any other purpose and must not be provided to any person other than the intended recipient.
All amounts are disclosed in New Zealand dollars (NZ$) unless otherwise indicated. All references to FY20XX appearing in this
presentation are to the financial year ending 31 March, unless otherwise indicated.
This presentation is not a recommendation or other form of financial advice. While reasonable care has been taken in compiling this
presentation, none of AFT nor its subsidiaries, directors, employees, agents or advisers (to the maximum extent permitted by law)
gives any warranty or representation (express or implied) of the accuracy, completeness or reliability of the information contai ned in
it nor takes any responsibility for it. The information in this presentation has not been and will not be independently verifiedor
audited.
This presentation may contain certain forward-looking statements and comments about future events, including with respect to the
financial condition, results, operations and business of AFT. These statements are based on management’s current expectations
and the actual events or results may differ materially and adversely from these expectations. Recipients are cautioned not toplace
undue reliance on forward-looking statements.
Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon(and is
not) an indication of future performance.
Investor Presentation
May 2018
1
CURRENT HIGHLIGHTS
125
countries that Maxigesicis licensed in – up from 110 at the end of FY2017
10
countries that Maxigesicis launched and sold in
7
number of clinical studies AFT will have running in FY2019
$81.9m
total income for FY2018*
$6.8m
available cash as at 31 March 2018
* Total income comprises Operating Revenue of $80.1m and Licensing Income of $1.8m
Investor Presentation
May 2018
2
-
10
20
30
40
50
60
70
80
90
FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18
Operating revenue (NZ$m)
FINANCIAL PERFORMANCE – REVENUE GROWTH
10 year CAGR: 14%
Operating revenue, FY2005 – FY2018
FY2017 Operating revenue by region
FY2018 Operating revenue by region
Investor Presentation
May 2018
3
Australia
53.6%
New
Zealand
42.1%
Rest of World
2.8%
Southeast Asia
1.5%
Australia
61.4%
New
Zealand
33.8%
Rest of World
3.1%
Southeast Asia
1.6%
FINANCIAL PERFORMANCE – REVENUE BY REGION AND
CHANNEL
4
Operatingrevenue by region, FY2016 – FY2018
Operating revenueby channel by region, FY2018
Australia
New Zealand
Southeast Asia
Rest of World
May 2018
Investor Presentation
Over-the-counterHospitalP re s c rip t io n
10.5%
32.3%
57.2%
34.2%
21.6%
44.2%
-
4.4%
95.6%
1.0%
69.2%
29.8%
NZ$000'sFY2016% of total
FY2017% of totalFY2018% of total
Australia31,224 48.8%37,063 53.6%49,193 61.4%
YoY growth18.7%32.7%
New Zealand31,135 48.6%29,167 42.1%27,095 33.8%
YoY growth-6.3%-7.1%
Rest of World1,007 1.6%1,968 2.8%2,496 3.1%
YoY growth95.5%26.8%
Southeast Asia648 1.0%1,005 1.5%1,286 1.6%
YoY growth55.1%28.0%
Total Operating Revenue64,014 100%69,205 100%80,071 100.0%
YoY growth13.8%8.1%15.7%
FINANCIAL PERFORMANCE – SUMMARY P&L
5
Investor Presentation
May 2018
NZ$'000's year ended 31 March2018 % of2017 % of
revenuerevenue
Revenue80,071 69,205
Cost of Sales(45,880) 57.3%(43,207)62.4%
Gross Profit34,191 42.7%25,998 37.6%
Other Income2,235 2.8%2,659 3.8%
Selling and distribution expenses(28,533) 35.6%(25,964)37.5%
General and administrative expenses(8,308) 10.4%(5,851)8.5%
Research and development expenses(8,230) 10.3%(11,227)16.2%
Equity accounted loss of joint venture entity(1,494) 1.9%(414)0.6%
Operating Loss(10,139) (14,799)
Finance Income125 347
Finance Costs(2,652) (3,878)
Loss before tax(12,666) (18,330)
Tax benefit/(expense)(58) (58)
Loss after tax(12,724) (18,388)
FINANCIAL PERFORMANCE – SUMMARY Balance Sheet
6
Investor Presentation
May 2018
NZ$'000's year ended 31 March2018 2017
ASSETS
Current Assets
Inventories24,412 22,198
Trade and other receivables16,954 16,051
Cash and cash equivalents6,770 15,905
Derivative assets176 -
Total current assets48,312 54,154
Non-current Assets
Property, plant and equipment330 386
Intangible assets5,118 2,548
Deferred income tax assets708 610
Investment in joint venture entity2,134 627
Total assets56,603 58,325
LIABILITIES
Current liabilities
Trade and other payables17,391 14,549
Provisions1,098 564
Current income tax liability118 112
Derivative liabilities - 204
Total current liabilities18,607 15,429
Non-current liabilities
Interest bearing liabilities30,654 23,426
Total liabilities49,261 38,855
Equity
Share Capital63,743 62,944
Retained earnings(57,644) (44,025)
Share options reserve430 295
Redeemable preference share reserve483 -
Foreign currency translation reserve330 256
Total equity7,342 19,470
Total liabilities and equity56,603 58,325
FINANCIAL PERFORMANCE – SUMMARY Cashflow
7
Investor Presentation
May 2018
NZ$'000's year ended 31 March2018 2017
Net cash used in operating activities(10,904) (19,062)
Net cash used in investing activities(5,855) (1,598)
Net cash generated from financing activities7,600 9,042
Net increase in cash(9,159) (11,618)
Impact of foreign exchange on cash and cash equivalents24 (457)
Opening cash and cash equivalents15,905 27,980
Closing cash and cash equivalents6,770 15,905
ADVANCED CLINICAL STUDY PROGRAM
•7 studies across the AFT portfolio and 900+ patients
•7 countries - Australia, Jordan, Mexico, New Zealand, Russia, United Kingdom, United States
•Significant Clinical Trials for Maxigesicoral and IV dose forms are mainly completed
•Completed Maxigesic IV pivotal study in USA [275 patients]
•CompletedMaxigesic Oral Liquid study in AU, NZ & MX [200 patients]
•NasoSURFDevice Clinical Studies well underway
•Human Factor Study in USA completed
•3 Distribution studies underway in AU & NZ [over 50 patients]
•PK-PD study in NZ [30 patients]
•To start large clinical study for first indication in NZ & USA [300 patients]
•MaxiclearPE pivotal study completed in NZ during 2017 [275 patients]
Investor Presentation
May 2018
8
MAXIGESICGLOBAL UPDATE
Australia – sales growing strongly
post codeine rescheduling.
No #1 Para-IbuCombo
New Zealand –increasing
sales and codeine
rescheduling confirmed.
Maxigesic PE launch
underway
Singapore/Brunei – launched and
additional OTC launch in Jun18
Malaysia – launch pending May18
UAE – sales growth still
strong
Iraq launch pending
May18
Italy – successful launch and
sales growing still
Eastern Europe and Balkans –
launches pending 2018
Nordics – launch pending 4Q
2018
BE/LX & FR– launches pending
3-4Q18
UK – launched
IE – launch pending
May/June18
ES/PT – launch
pending 4Q 18
CACM – launch pending
Apr/May 18
MX – launch pending
4Q 18
Licensing negotiations
underway Brazil and LATAM
Licensing discussions starting
for USA & Canada
Licensing discussions starting
for Russia
Licensing discussions starting
for China, Korea and Taiwan
HK launch 3-4Q 18
EXAMPLE OF MAXIGESIC LICENCEE PROGRESS TO DATE –
tablet sales per month
Investor Presentation
May 2018
10
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Maxigesic countries launched and launch plan
Investor Presentation
May 2018
11
MAXIGESIC: GOING FORWARDS
Additional out-licensing and distribution agreements for Maxigesicoral dose forms have been secured to
increase the number of countries to 125from 110.
Some additional countries still to be added –Up to about 12
Numerous Maxigesic registrations underway which are required before many launches can occur
Launches have been delayed due to regulatory procedures in EU
Maxigesic IV filings underway around the globe
Maxigesic OL filings to commence around the globe
Maxigesic PE first launch made in NZ and further filings to be made in selected territories
Maxigesic Dry Stick and Hot Drink Sachets targeting completion of registration files by end FY19
Maxigesic Rapid Formulation work almost completed
SUMMARY: Drive sales by
[1] Increasing sales in existing territories
[2] Launch in new territories
[3] Launch additional dose forms
Investor Presentation
May 2018
12
Sales will be generated from
1)device sales,
2)a per use charge
administered through
RFID (radio frequency
identifier) cards, and
3)consumables
Product
description
A handheld ultrasonic nasal mesh nebuliser for the
intranasal delivery of medication and treatment of
chronic sinusitis
Rationale for
investment in
product
•To primarily expand our existing hospital product
ranges locally
•Significant global potential
Current status
•Registered as Class I Device with FDA as planned
•Refined design parameters post Human Factor Study
•Target Class II Device FDA Filing end 2018 Calendar
Year
Ourmedium
term plans
•Engineering Pilot batches with enhanced design
underway
•Distribution studies underway in ANZ
•Specific formulation and dose delivery system work
underway
•First Drug PK studies to start in FY2019
•First Drug Clinical Studies to start in FY2019
•Open IND in FY2019
•First drug delivery indication a significant potential
market – US$1.2B in USA alone [Based upon market
research studies in USA and UK]
•Licensing negotiations during FY2019
NASOSURFNEBULISER: Going Forwards
The NasoSURFNebuliser has desirable features
over currently marketed nebulisers, which are not
approved for delivery of specific drugs
intranasally and do not possess a number of the
advantages of the NasoSURFNebuliser
13
SUMMARY OF MEDIUM TERM PLANS
Phased launches of Maxigesicin over 110 countries including North America
and Europe
Add additional Maxigesicdose forms to the initial launches to extend sales
Further licensing agreements for Maxigesicand Maxigesic IV in larger
markets including North America, selected additional markets
NasoSURFand Pascomer
Advancing developments
Licensing in major target markets of North America and EU
Investor Presentation
May 2018
14
Further build upon market leading Maxigesicmarket shares post codeine
changes and register and launch line extensions
Further build revenues of OTC product sales in Australia
Key aim is to trade profitably during FY19
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.