Accordant Group Half Year Financial Performance

Level 6, 51 Shortland Street, Auckland
PO Box 105 675, Auckland 1143
Tel 09 526 8770
accordant.nz
MEDIA RELEASE
29 October 2020
Newly named Accordant well-positioned for the uncertain times ahead
• Revenue $33.3 million down to $105.9 million
• No interim dividend declared
• Wage subsidy contributing to the result and our ability to retain people
• Madison most affected, resulting in a $7.0 million goodwill impairment
• NPAT compares well at $3.7 million for HY21, against $1.3 million for the prior Half Year
• Full six months’ trading from JacksonStone & Partners, with good contribution
• Net Bank Debt at $9.1 million
AWF Madison Group changed its name to Accordant Group Limited on 19 October 2020. As the business
extends beyond its founding entity and brings together a more diverse group of businesses, it is time to reflect
this change in our Group name.
In the COVID-19 world, opportunities exist beyond our core recruitment businesses, and we are pleased to have
a name that reflects our desire to bring people together and work innovatively in response to the uncertain times
ahead of us.
AWF is coming back steadily after an initial drop in turnover of 60% in the April Level 4 lockdown. The wage
subsidy underpinned our business, allowing staff retention and payment to our permanent and casual staff. We
are now approaching 85% of prior year. AWF regained its Accredited Employer status with Immigration NZ, which
may be helpful in recruiting essential service workers in the future.
Madison has not been able to recover in the same way and the prospects for the remainder of the financial year
are challenging. We predict it will take at least 12-18 months for us to return to the profitability that we enjoyed
pre COVID-19. This has led us to reassess the carrying value of Madison, resulting in a goodwill impairment of $7
million.
Both JacksonStone and Absolute IT have proved much more resilient as a result of the specialist nature of their
work. JacksonStone has made a significant contribution to the Group and we expect to build on current
performance. While Absolute IT has not yet returned to last year’s levels, it is making a good contribution.
Our social impact initiative, The Work Collective, has been further resourced with the appointment of Donna
Lynch to the role of General Manager - Workforce. Its relevance is further heightened as we move towards a
period of higher unemployment, which New Zealand has not seen for almost three decades.
With the level of economic uncertainty, the Board did not pay a final dividend for March 2020 and do not have
sufficient confidence to declare an interim dividend at this time. This, along with extensive cost containment and
reduction in capex, has resulted in a significant reduction in debt, which has us positioned well for these uncertain
times.
Looking ahead, while the business itself is positioned well in order to deal with the uncertainty, we know that the
continued commitment, agility and resilience of our people will also play a significant role in our future
performance.

Level 6, 51 Shortland Street, Auckland
PO Box 105 675, Auckland 1143
Tel 09 526 8770
accordant.nz

Ends



Simon Bennett For the Board:
Chief Executive Ross Keenan, Chairman 021 685 655

For further information contact Simon Bennett:
09 917 1010

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Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Accordant Group Limited
Reporting Period 6 months to 30 September 2020
Previous Reporting Period 6 months to 30 September 2019
Currency NZ
Amount (000s) Percentage change
Revenue from continuing
operations
$105,938

-23.9%
Total Revenue $105,938 -23.9%
Net profit/(loss) from
continuing operations
$3,712 181.0%
Total net profit/(loss) $3,712 181.0%
Interim/Final Dividend
Amount per Quoted Equity
Security
Accordant Group Limited does not propose paying an Interim
Dividend
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
-$0.36765625 -$0.73027154
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to Financial Statements
Authority for this announcement
Name of person

authorised
to make this announcement
David Lazarus
Contact person for this
announcement
David Lazarus
Contact phone number 09 526-8775
Contact email address david.lazarus@accordant.nz
Date of release through MAP

29/10/2020

Unaudited financial statements accompany this announcement.

---

Interim Report
for the six months ended
30 September 2020

We have positioned
the business as
well as possible for
what lies ahead.
Simon Bennett, CEO
CEO’S REPORT – SIMON BENNETT 3
OUR NEW NAME 7
INTRODUCING DONNA LYNCH 9
FINANCIAL STATEMENTS 10
DIRECTORY 24
Contents
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
2
ACCORDANT GROUP INTERIM REPORT FY21

The health, safety and
wellbeing of our people
remains paramount.
Simon Bennett, CEO
3
ACCORDANT GROUP INTERIM REPORT FY21CEO’S REPORT

In the time since April, what has resonated
most has been the resilience and strength of
our team and their dedication to our people,
our clients and candidates. Whilst we have
been relatively safe from the virus, none of
us are immune to the strain and stress that
it is causing in our communities. The health,
safety and wellbeing of our people remains
paramount and I am proud of the efforts
made to keep our people safe.
Obviously, we are not yet through this
pandemic and the future is uncertain. We can
assure you though that we have positioned
the business as well as possible for what
lies ahead. Our people are up to the task
and the previous investment we have made
in tools and technology has served us well.
This uncertainty is as a result of the changes
in our clients’ businesses. Their uncertainty
is challenging hiring decisions and driving
tighter cost control. As we move through this
recession, these drivers can lead to a higher
mix of contingent worker utilisation, which is
favourable to us. We are not at this stage, yet.
Our strategy too, has us well-positioned to
be able to help the many displaced workers
affected by the pandemic, along with people
who already faced barriers to employment
and are now further marginalised from work
opportunities.
We are seeking to be more ambitious
about what good we can do for the people
of New Zealand and the role we can play
No one could have predicted
the six months that we have
seen. As I mentioned at our
recent AGM, our last financial
year ended with three days
of Level 4 lockdown; and this
was the context for the start
of our 2021 financial year.
4
ACCORDANT GROUP INTERIM REPORT FY21CEO’S REPORT

in economic recovery through enabling
employment opportunities. We have
appointed a dedicated General Manager
to drive our social enterprise, The Work
Collective, and also to build our training and
redeployment capability at greater pace.
Our growth in ambition beyond our
current businesses, and the expertise which
we have harnessed within the Group has
led us to our change of name. We thought it
worthwhile to explain this journey and recap
on our ambitions for Accordant within this
Half Year report.
We have delivered much lower revenue for
the half year, $33.3 million down on the prior
first half. The bulk of this decline was in our
temp businesses in both white and blue collar.
The decline was not linear, but our recovery
appears to be somewhat more so at this
point in time.
We have delivered a higher net profit than
prior year, albeit off a low base. Our profit
for the Half Year (HY21) of $3.7 million,
compares favourably to the prior first half
(HY20) of $1.3 million. Last year however
included some one-off costs and our result
is better-compared to the preceding year
(HY19) result of $2.1 million, with the addition
of JacksonStone & Partners. Our further
diversification has certainly been rewarded.
Our result has of course also been
affected by the Government Wage Subsidy,
which served its purpose to pay and retain
the majority of our internal and contingent
workforce, including our migrant workforce.
We were pleased to be able to fulfil the intent
of the scheme which was designed to enable
staff retention, inclusive of temporary and
labour hire agencies.
The large drop in permanent fee revenue in
Madison has reduced the size of the business
and we do not expect the business to recover
fully this financial year. We predict it may well
take a further 18 months. This recovery will
likely be through the temp channel, rather than
permanent recruitment. As a generalist and
low to mid-level recruiter, there is a tendency
for clients to attempt this recruitment
themselves in the early stages of a recession.
This has reduced the carrying value of
Madison with a resulting goodwill impairment.
AWF too has had a fall in permanent fee
revenue and its temporary business suffered
considerably during the Level 4 lockdown.
At our current recovery rate, we expect AWF
to return to normal trading in its temp business
by the end of this financial year.
Absolute IT has also been affected and
is approximately 10% down on prior year.
However, the tech sector is showing growth
and we are confident of our ability to once
again grow our business.
Likewise, JacksonStone & Partners saw a
drop, mainly in May, but is recovering well and
we are confident in demand. We expect to pay
the vendors of JacksonStone the maximum
We are seeking to be
more ambitious about what
good we can do for the
people of New Zealand.
5
ACCORDANT GROUP INTERIM REPORT FY21CEO’S REPORT

entitlement for the second tranche of the
earnout for the purchase.
Our balance sheet looks quite different to
that of a year ago. Goodwill write-off has
had an impact but the overall shrinking of the
business has reduced demand on working
capital, as has the reduction in capital spend.
We have benefited from a suspension of
the March 2020 final year dividend and
the various cost reduction measures have
had a significant impact. These included
rent reductions, employee salary sacrifice,
reduction in marketing spend and travel.
Your Board also sacrificed fees of 20% for a
3-month period.
This, along with our profit contribution,
has seen net Bank debt reduce significantly
to $9.1 million. We are very comfortable at this
level which also allows some headroom for
another strategic acquisition.
This time last year I reported that we were
about to resolve issues with the
Labour Inspectorate, which stalled AWF’s
Accredited Employer status with Immigration
New Zealand. Whilst I was wrong about the
timing, we did get the right outcome with
proceedings withdrawn last month and
subsequently AWF’s Accredited Employer
status returned. This is somewhat ironic given
our borders remain largely closed and the
prospect of migrant labour not looking likely
any time soon. We are however pleased to
have that episode behind us.
To use a sporting analogy, we are still only
at half time in a game where anything could
happen. There is much to unfold for the
remainder of this financial year, however
I feel we are positioned well for the
uncertainty. We are seeking business in
sectors less affected by the pandemic and
those where growth is possible, in either
a scenario of further lockdowns or one of
growth in unemployment on the back of
a deepening recession.
I hope you enjoy reading about Accordant
in the following pages, and the journey of
the business we are so proud of.
Simon Bennett,
CEO
What has resonated
most has been the
resilience and strength
of our team, and their
dedication to our
people, our clients
and candidates.
6
ACCORDANT GROUP INTERIM REPORT FY21CEO’S REPORT

Why Accordant? For us, it means harmony.
It symbolises bringing together, and growing
together. It strongly reflects our belief in
treating people with respect, nurturing their
development and ensuring thousands of
New Zealanders and New Zealand companies
are ready to put their best foot forward –
every day.
In renaming our organisation to Accordant,
we have seen a significant milestone in
our company’s history – one that has been
three decades in the making. Over this time,
we have substantially grown both the breadth
and depth of the services we offer, and we
are now a diverse group of companies that
includes AWF, Madison, Absolute IT and
JacksonStone & Partners.
We are proud of our stable of brands, and
the significant role they play in workplaces
throughout New Zealand. In each of these
operating businesses lies a rich history,
and ultimately it was the culmination of this
expertise and the breadth of service offerings
that meant our previous Group identity as AWF
Madison was no longer fit to best showcase
our makeup, nor our future aspirations.
A New Name
for Our Group’s
Future.
The 19
th
of October marked
a significant day for our
business, when we moved
from a name embedded in our
history, to a name grounded
in purpose; Accordant.
7
OUR NEW NAMEACCORDANT GROUP INTERIM REPORT FY21

The name Accordant signifies how our various
businesses will continue to work together.
It is not just about a collection of standalone
operations, but a collaborative way of working
that draws from our collective capability to
deliver more additively for our clients and
candidates than is possible when operating
apart. Members of the Accordant Group are
working together in an agile way to see people
gainfully employed, and meet the needs of
New Zealand’s diverse workplaces.
It is clear that the world of work is evolving
at an incredible rate of knots, a reality brought
home by the events of 2020. We hear
from our clients and candidates often that
organisations, and indeed whole sectors,
are operating in unprecedented volatility
and complexity. More and more often, we
are asking for the opportunity to work with
our clients in our capacity as a Group. This
broader perspective enables us to gain clarity
and deliver solutions that likely go beyond
traditional recruitment services.
Our vision moving forward is that Accordant
will be more prominent in support of our
day-to-day operations. We will work to ensure
that anything we put our name behind has
meaning – be it for our clients, our candidates,
our workforce, our service delivery people, or
across the wider landscape.
Our breadth and scale provide a unique
standpoint to contribute to the broader
conversation about labour market forces,
business productivity and organisational
change, and Accordant provides a platform
from which to contribute to these discussions
in a meaningful way.
Over the coming months Accordant will
become more visible in support of our various
brands’ identities and activity, resulting in
subtle changes to existing collateral. And in
due course, we look forward to embarking
on new developments and initiatives with
Accordant as the launchpad.
Liz Meleisea,
Group Marketing Manager
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
8
OUR NEW NAMEACCORDANT GROUP INTERIM REPORT FY21

9
ACCORDANT GROUP INTERIM REPORT FY21
Many New Zealand businesses are showing
increased interest in the way that their
procurement dollar can deliver greater social
impact. Through The Work Collective, we have
the opportunity to help improve outcomes
for people with real barriers to work, while
supporting our clients to achieve their own
social goals.
Whilst it is clear that we are facing an
uncertain future, we also know that our
ambitions will direct us to take a greater
focus on the variety of ways that we can
support more New Zealanders, and the
contribution we can make to our country’s
economic recovery.
To enable this shift in focus, we have
created a new position of General Manager –
Workforce, and we are delighted to announce
that Donna Lynch is transitioning into this
role. An experienced leader with an extensive
background in HR, Donna has held the role
of joint General Manager at AWF for
four years. Donna’s experience, coupled
with her passion for driving positive
outcomes for both people and business,
positions her perfectly to lead this channel.
This new role sits as part of our Group
function, spanning each of our individual
businesses and focusing on three key areas:
• Working alongside senior leaders to
deliver a company-wide focus on our
people strategy, ensuring that each of our
Group’s businesses has the tools, guidance
and support to drive the continued
development and retention of our people.
• Oversight of the Group’s Health & Safety
management systems.
• Leading the continued growth of The Work
Collective and the development of future
channels in training and redeployment.
INTRODUCING DONNA LYNCH
Introducing
Donna Lynch.
GM Workforce

Financial
Statements.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY2a
10
ACCORDANT GROUP INTERIM REPORT FY21

Accordant Group Limited (formerly AWF Madison Group Limited)
Condensed consolidated statement of comprehensive income
For the six month period 30 September 2020 (unaudited)
GROUP
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2019
(unaudited)
$’000$’000
Revenue from contracts with customers105,938139,226
Direct costs(1,244)(1,038)
Employee benefits expense(81,540)(127,273)
Depreciation and amortisation expense(2,618)(3,285)
Impairment(7,000)–
Other operating expenses(4,942)(4,583)
Finance costs(777)(1,013)
Acquisition related expenses–(101)
Profit before tax7,8171,933
Income tax expense(4,105)(612)
Profit for the period3,7121,321
Other comprehensive income for the period––
Total comprehensive income for the period3,7121,321
Profit for the period income is attributable to equity holders of the Group3,7121,321
Total comprehensive income is attributable to equity holders of the Group3,7121,321
Earnings per share
Total basic earnings per share (cents/share)10.94.0
Total diluted earnings per share (cents/share)10.94.0
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
11

Accordant Group Limited (formerly AWF Madison Group Limited)
Condensed consolidated statement of financial position
As at 30 September 2020 (unaudited)
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
GROUP
30 September
2020
(unaudited)
30 September
2019
(unaudited)
31 March
2020
(audited)
$’000$’000$’000
Assets
Non-current assets
Property, plant and equipment2,8413,1523,193
Right of use assets9,73914,64211,107
Intangible assets goodwill38,06845,47545,068
Intangible assets other15,26016,88616,194
Total non-current assets65,90880,15575,562
Current assets
Cash and cash equivalents5,8707,6236,178
Trade and other receivables24,60830,37753,071
Contract assets301381458
Total current assets30,77938,38159,707
Total assets96,687118,536135,269
Equity and liabilities
Non-current liabilities
Deferred tax liabilities2,7893,1903,122
Borrowings15,00036,00036,000
Lease liabilities7,96112,3429,098
Contingent consideration1,8753,4581,841
Total non-current liabilities27,62554,99050,061
Current liabilities
Trade and other payables24,42225,32146,169
Contract liabilities348242202
Deferred consideration–616–
Taxation payable2,854488950
Provisions250156189
Lease liabilities2,3752,4752,501
Contingent consideration1,491–1,463
Total current liabilities31,74029,29851,474
Total liabilities59,36584,288101,535
Net assets37,32234,24833,734
Capital and reserves
Share capital30,86830,01230,868
Group share scheme reserve206281330
Retained earnings6,2483,9552,536
Total equity37,32234,24833,734
For and on behalf of the Board who authorise the issue of the financial statements on 28 October 2020:
ROSS KEENAN, Chair LAURISSA COONEY, Chair, Audit, Finance & Risk Committee
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
12

Accordant Group Limited (formerly AWF Madison Group Limited)
Condensed consolidated statement of changes in equity
For the six month period 30 September 2020 (unaudited)
GROUP
Share
capital
Group share
scheme
reserve
Retained
earnings
Total
equity
$’000$’000$’000$’000
Period ended 30 September 2019
Balance at 1 April 201929,1655445,11134,820
Comprehensive income
Profit for the period––1,3211,321
Other comprehensive income––––
Total comprehensive income––1,3211,321
Transactions with shareholders
Issue of share capital847––847
Dividends paid––(2,806)(2,806)
Stock appreciation rights cancelled–(329)329–
Share based payments–66–66
Total transactions with shareholders847(263)(2,477)(1,893)
Balance at 30 September 201930,0122813,95534,248
Period ended 30 September 2020
Balance at 1 April 202030,8683302,53633,734
Comprehensive income
Profit for the period––3,7123,712
Other comprehensive income––––
Total comprehensive income––3,7123,712
Transactions with shareholders
Share based payments–(124)–(124)
Total transactions with shareholders–(124)–(124)
Balance at 30 September 202030,8682066,24837,322
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
13

Accordant Group Limited (formerly AWF Madison Group Limited)
Condensed consolidated statement of cashflows
For the six month period ended 30 September 2020 (unaudited)
GROUP
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2019
(unaudited)
$’000$’000
Cashflows from operating activities
Receipts from customers134,644144,449
Payments to suppliers and employees(109,445)(135,464)
Net cash generated from operations25,1998,985
Interest paid on bank overdrafts and loans(446)(737)
Interest paid on lease liabilities(269)(276)
Income taxes paid(2,534)(1,097)
Net cash from operating activities21,9506,875
Cashflows from investing activities
Proceeds from disposal of property, plant and equipment3441
Purchase of property, plant and equipment(19)(330)
Purchase of intangible assets(10)(14)
Net cash paid on acquisition of JacksonStone & Partners–(6,700)
Net cash (used in)/from investing activities5(7,003)
Cashflows from financing activities
Proceeds from the issue of share capital–847
Dividends paid to shareholders of the parent–(2,806)
Proceeds from borrowings–3,000
Repayment of borrowings(21,000)–
Payment of principal lease liabilities(1,263)(1,194)
Net cash from/(used in) financing activities(22,263)(153)
Net increase/(decrease) in cash held(308)(281)
Cash and cash equivalents at start of the period6,1786,357
Cash acquired through business combinations–1,547
Net cash and cash equivalents at end of the period5,8707,623
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
14

Accordant Group Limited (formerly AWF Madison Group Limited)
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2020 (unaudited)
REPORTING ENTITY
Accordant Group Limited (formerly AWF Madison
Group Limited) is a Company limited by shares,
incorporated and domiciled in New Zealand and
registered under the Companies Act 1993 and
listed on the NZX. The address of its registered
office and principal place of business is disclosed
in the directory to the interim report. The principal
services of the Group are the supply of temporary
staff, contractor resource and recruitment of
permanent staff.
BASIS OF PREPARATION
The interim condensed consolidated financial
statements are for Accordant Group Limited (formerly
AWF Madison Group Limited) (‘the Company’) and its
subsidiaries (collectively referred to as ‘the Group’)
and have been prepared:
• in accordance with IAS 34 Interim Financial
Reporting and NZ IAS 34 Interim Financial
Reporting;
• in accordance with the requirements of
the Financial Market Conduct Act 2013, the
Companies Act 1993, and the NZX listing rules;
• on the basis of historical cost, as modified by
revaluations to fair value for certain classes
of assets and liabilities as described in the
accounting policies; and
• on a going concern basis, which contemplates
continuity of normal business activities, the
realisation of assets, and the settlement of
liabilities in the ordinary course of business; and
• in New Zealand dollars (which is the Group’s
functional and presentation currency), with
values rounded to thousands ($000) unless
otherwise stated.
The interim condensed consolidated financial
statements do not include all the information
and disclosures required in the annual financial
statements, and should be read in conjunction
with the Group’s annual financial statements for
the period ended 31 March 2020.
The accounting policies used in preparation of these
interim condensed consolidated financial statements
are consistent with those used in the Group’s annual
financial statements for the year ended 31 March
2020, except for the adoption of any new standards
effective as of 1 April 2020, and the early adoption of
any other standard, interpretation or amendment that
has been issued but is not yet effective.
The new standards and amendments and
interpretations to existing standards that came
into effect and were adopted during the current
accounting period were:
• Definition of a Business – Amendments to
NZ IFRS 3 Business Combinations
• Definition of Material – Amendments to NZ IAS 1
Presentation of Financial Statements and NZ IAS
8 Accounting Policies, Changes in Accounting
Estimates and Errors
The adoption of these standard amendments had no
material impact on the Group.
The Group has not early adopted any new standards,
amendments and interpretations that have been
issued but are not yet effective. There are a number
of new standards and amendments to standards
and interpretations that are not yet effective for the
year beginning 1 April 2020. None of these new and
amendments to standards and interpretations have
been early adopted by the Group in preparing these
financial statements, or have been identified as having
a material effect on the Group’s financial statements
in the future.
BUSINESS COMBINATION DURING THE
PRIOR PERIOD
During the period ended 30 September 2019,
effective 1 June 2019, the Group acquired
JacksonStone & Partners Limited (‘JacksonStone
& Partners’). Consequently, the period ended 30
September 2019 comparative financial information
includes four months of trading from the
JacksonStone & Partners business.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
15

Accordant Group Limited (formerly AWF Madison Group Limited)
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2020 (unaudited)
GLOBAL PANDEMIC OF CORONAVIRUS
DISEASE 2019
Following on from the disclosures in the Group’s
annual financial statements for the year ended
31 March 2020 regarding the ongoing COVID-19
pandemic, the pandemic and the public health
and social measures, and economic responses by
the New Zealand Government, continue to inhibit
general activity and confidence levels within the
community, the economy and the operations of the
Group’s business. The Group continues to monitor
developments and initiate plans to mitigate adverse
impacts and maximise opportunities.
The impact of COVID-19 on the country, the labour
markets and our businesses has been significant and
unpredictable, driving both cost saving initiatives but
also some additional margin for the Group. In the early
stages of the pandemic, the Group took significant
cost containment measures. This included directors
and senior management voluntarily taking pay cuts,
as did a high percentage of operational teams.
The businesses have worked hard through the
lockdown to provide essential services to many
key clients. A number of the business units received
the wage subsidy for eligible employees, which
enabled the Group to continue to employ large
numbers of our people.
Whilst Permanent recruitment is subdued at this time,
and likely to remain so, there has been continued
demand for Contingent workers. The Group’s ability,
in many cases, to supply to market requirements;
and in other cases, to provide innovative solutions
to problems faced by clients, has driven strong
profitability, ahead of the prior year.
During the six month period ended 30 September
2020, Group eligible entities claimed $13.2m and
repaid $2.2m under the New Zealand Government’s
COVID-19 Wage Subsidy Schemes. This was in
addition to the amount claimed under the initial 12
week COVID-19 Wage Subsidy Scheme referred to
in the Group’s annual financial statements for the
year ended 31 March 2020. Under the initial 12 week
COVID-19 Wage Subsidy Scheme, the Group applied
for $22.9m (for 3,451 employees) subsequently
refunding $1.4m (for 231 employees). Under the initial
8 week extension of the COVID-19 Wage Subsidy
Scheme, the Group applied for $13.2m (for 2,992
employees) subsequently refunding $0.8m (for 198
employees).
These grants supported the Group’s ability to
retain personnel and pay remuneration throughout
New Zealand’s COVID-19 Alert Levels 4 and 3.
The grants have been offset against employee
benefits expense in the statement of comprehensive
income. Other steps taken by the Group to minimise
the impact of COVID-19 pandemic disruptions also
positively impacted profit. These included: curtailed
operating and capital expenditure, salary sacrifices
across senior and operational personnel, Director
fee sacrifices, freeze on replacement and additional
personnel hires and landlord rental support.
These financial statements have been prepared
based upon conditions existing at the end of
the reporting period, 30 September 2020, and
considering those events occurring subsequent
to that date, up to the date of the signing of these
interim financial statements, that provide evidence
of conditions that existed at the end of the
reporting period. All reasonably known and available
information with respect to the COVID-19 pandemic,
has been taken into consideration and all reasonably
determinable adjustments have been made in
preparing these interim financial statements.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
16

Accordant Group Limited (formerly AWF Madison Group Limited)
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2020 (unaudited)
GOODWILL AND OTHER INDEFINITE LIFE
INTANGIBLE ASSET IMPAIRMENT TESTING
Note B4 ‘Goodwill’ of the Group’s annual financial
statements for the year ended 31 March 2020 under
‘Annual test for impairment’ noted the following:
• COVID-19 has had an impact on the operations of
the Group;
• That Management had used its judgement to
determine a point within the range of models
that reflects its best estimate of the future
which takes into account the Group’s financial
performance achieved in previous years and that
cash flows used in the value-in-use calculations
(used to determine the recoverable amount of
each of the Group’s cash generating units (CGUs)
as at 31 March 2020 as part of its annual test
for impairment) were sensitive to the economic
environment and the ability of these CGUs to
return to pre-COVID-19 financial performance by
the end of FY2021.
• The Madison Recruitment CGU is sensitive to
changes in financial performance assumptions.
The Group’s annual financial statements for the year
ended 31 March 2020 were signed 8 June 2020
following which the economic climate both domestically
and internationally has changed, markedly.
The prevailing market conditions have changed
significantly for a number of key Madison Recruitment
clients. Madison Recruitment has been affected more
than initially anticipated.
The COVID-19 pandemic and public health and social
measures and economic responses have lowered
overall economic activity and confidence, due to
a reduced ability for many businesses to operate,
reduced demand for many goods and services, and
resulted in significant volatility and instability in the
financial markets and the economy.
All indications suggest that the International
Governments and regulators worldwide (including
in New Zealand) will maintain varying forms of public
health and social measures at least until a vaccine
for COVID-19 is available and maintain varying
economic responses. As the scale and duration of
these developments remain uncertain and as a result
the Group has concluded there has been an overall
increase in the level of inherent uncertainty in the
significant accounting estimates and judgements
applied by Management in the preparation of its
financial statements.
As at 30 September 2020 the Group undertook an
impairment test of its CGUs which has resulted in a
$7.0m impairment of the carrying value of Madison
Recruitment’s goodwill asset.
Cash flow forecasts for FY21 and FY22 were
remodelled taking into account the change in
current market conditions with estimates of future
cash flows based on an estimated growth rate of 1.5%
(consistent with 31 March 2020) and an estimated
terminal rate of 1.5% (consistent with 31 March
2020. A revised discount rate of 7.62% was applied,
assessed by a third-party, down from a rate of 9.14% at
31 March 2020. The reduction in the discount rate is
a combination of lower risk-free rate of return and an
improvement in the Group’s gearing ratio.
In assessing and determining the impairment for the
Madison Recruitment CGU a sensitivity analysis was
performed including:
• A range of revised forecast cashflows.
• Reducing the estimated growth rate by 0.5%.
• Reducing the terminal growth rate by 1.0%.
• Increasing the discount rate by 1.0%.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
17

Accordant Group Limited (formerly AWF Madison Group Limited)
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2020 (unaudited)
Segment revenueSegment profit
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2019
(unaudited)
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2019
(unaudited)
SEGMENT REVENUE AND RESULTS$’000$’000$’000$’000
Continuing operations
AWF34,15250,5169,881556
Madison, Absolute IT and JacksonStone
& Partners71,78688,7101973,805
Total for continuing operations105,938139,22610,0784,361
Central administration costs and directors’ fees(1,484)(1,415)
Finance costs(777)(1,013)
Profit/(loss) before tax7,8171,933
Income tax expense(4,105)(612)
Profit for the year3,7121,321
Revenue reported above represents revenue generated from external customers. Inter-segment sales in the
year were $92,000 (2019: $43,000) and have been eliminated from the above table.
The accounting policies of the reportable segments are the same as the Group’s accounting policies described
in this report. Segment profit represents the profit earned by each segment without allocation of central
administration costs and directors’ fees, investment revenue, finance costs, and income tax expense. This is
the same measure reported to the chief operating decision maker for the purpose of resource allocation and
assessment of segment performance.
SEGMENT INFORMATION
Management have identified the following
reportable segments:
AWF
The ‘AWF’ segment operates branches under the
brand names AWF (throughout New Zealand) and
Select (Dunedin). These brands primarily derive their
revenues from temporary staffing services to industry.
Madison, Absolute IT and JacksonStone & Partners
The ‘Madison, Absolute IT and JacksonStone &
Partners’ segment operates branches under the
brand names Madison Recruitment, Madison Force,
Absolute IT and JacksonStone & Partners (from
1 June 2019) throughout New Zealand. These brands
derive their revenues from temporary, contract and
permanent staff services to commerce.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
18

Accordant Group Limited (formerly AWF Madison Group Limited)
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2020 (unaudited)
30 September
2020
(unaudited)
30 September
2019
(unaudited)
31 March
2020
(audited)
SEGMENT ASSETS$’000$’000$’000
AWF29,92333,04447,924
Madison, Absolute IT and JacksonStone & Partners65,05683,45284,702
Total segment assets94,979116,496132,626
Unallocated assets1,7082,0402,643
Total assets96,687118,536135,269
For the purposes of monitoring segment performance and allocating resources between
segments, the chief operating decision maker monitors the tangible, intangible and financial
assets attributable to each segment. All assets are allocated to reportable segments other
than cash, cash equivalents and tax assets of the parent.
30 September
2020
(unaudited)
30 September
2019
(unaudited)
31 March
2020
(audited)
SEGMENT LIABILITIES$’000$’000$’000
AWF16,10013,56726,544
Madison, Absolute IT and JacksonStone & Partners21,81826,33229,108
Total segment liabilities37,91839,89955,652
Unallocated liabilities21,44744,38945,883
Total liabilities59,36584,288101,535
For the purposes of monitoring segment performance and allocating resources between
segments, the chief operating decision maker monitors the liabilities attributable to each
segment. All liabilities are allocated to reportable segments other than bank loans and tax
liabilities of the parent.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
19

Accordant Group Limited (formerly AWF Madison Group Limited)
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2020 (unaudited)
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2019
(unaudited)
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2019
(unaudited)
OTHER SEGMENT INFORMATION$’000$’000$’000$’000
Depreciation, amortisation
& impairment
Employee benefits
& contractor costs
AWF9521,01421,29346,507
Madison, Absolute IT and JacksonStone
& Partners1,6662,27159,55779,742
Madison impairment7,000–––
Unallocated––6901,024
Total9,6183,28581,540127,273
Non-current
assets
Net additions to
non-current assets
AWF16,25917,210–5,035
Madison, Absolute IT and JacksonStone
& Partners49,64958,224(36)22,140
Unallocated–128(128)–
Total65,90875,562(164)27,175
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
20

Accordant Group Limited (formerly AWF Madison Group Limited)
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2020 (unaudited)
GEOGRAPHICAL INFORMATION
The Group operates in one geographical area,
New Zealand (country of domicile). All revenues
from external customers, and non-current assets
other than financial instruments, deferred tax assets
and post-employment benefit assets are attributable
to the Group’s country of domicile.
INFORMATION ABOUT CUSTOMERS
No one customer accounts for more than 10.0%
of the Group’s revenue and therefore the Group
does not have a reliance on any one or more major
customers (for the six month period ended 30
September 2019, the Group had one customer that
individually accounted for 11.6% of Group revenue).
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2019
(unaudited)
REVENUE FROM CONTRACTS WITH CUSTOMERS$’000$’000
Revenue earned on temporary placements
– AWF33,66949,505
– Madison, Absolute IT and JacksonStone & Partners55,80167,558
Total revenue earned on temporary placements89,470117,063
Revenue earned on permanent placements
– AWF386965
– Madison, Absolute IT and JacksonStone & Partners2,4545,574
Total revenue earned on permanent placements2,8406,539
Revenue earned on a retained basis
– Madison, Absolute IT and JacksonStone & Partners2,0821,444
Total revenue earned on a retained basis2,0821,444
Other service revenue
– AWF9646
– Madison, Absolute IT and JacksonStone & Partners11,45014,134
Total other service revenue11,54614,180
Total revenue105,938139,226
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
21

Accordant Group Limited (formerly AWF Madison Group Limited)
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2020 (unaudited)
FINANCIAL INSTRUMENTS
The carrying amounts of financial instruments at
balance date approximate the fair value at that date.
CONTINGENT LIABILITIES
The Bank has issued five guarantees on behalf of
the Group totalling $534,000 in support of property
leases (4) and a surety bond to the NZX.
There were no other contingent liabilities as at
30 September 2020 or 30 September 2019.
GROUP
RECONCILIATION OF NET PROFIT AFTER TAX
TO CASH FLOWS FROM OPERATING ACTIVITIES
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2019
(unaudited)
$’000$’000
Net profit after income tax3,7121,321
Adjustments for operating activities non-cash items:
Depreciation and amortisation2,6183,285
Impairment7,000–
Loss/(Gain) on disposal of property, plant and equipment4360
Movement in doubtful debts provision plus bad debt write off
in current year18799
Movement in deferred tax(333)(506)
Equity-settled share-based payments(124)66
Interest on contingent consideration to the vendor of JacksonStone
& Partners62–
Total non-cash items9,4533,004
Movements in working capital excluding movements relating
to purchase of subsidiaries:
(Increase)/decrease in trade and other receivables, and contract assets28,5875,185
Increase/(decrease) in trade and other payables, contract liabilities
and provisions(21,706)(2,657)
Increase/(decrease) in taxation payable1,90422
Total movement in working capital8,7852,550
Cash flow from operating activities21,9506,875
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
22

Accordant Group Limited (formerly AWF Madison Group Limited)
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2020 (unaudited)
DIVIDENDS PAID
On 8 June 2020 the directors’ resolved not to
declare a final dividend due to the economic
uncertainty caused by the COVID-19 pandemic.
During the six months ended 30 September 2020,
the group did not pay any dividends (six months
ended 30 September 2019: $2.806 million).
EVENTS SUBSEQUENT TO REPORTING DATE
Interim dividend
On 28 October 2020 the directors resolved not
to declare an interim dividend due to the economic
uncertainty caused by the COVID-19 pandemic
(as described under ‘Global pandemic of coronavirus
disease 2019’ in the notes to these interim financial
statements).
Group name change
Effective 19 October 2020 the Group changed
its name from AWF Madison Group Limited to
Accordant Group Limited.
Other
There were no other material events subsequent
to reporting date.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY21
23

24
Directory
Directors
Ross Keenan (Chairman & Independent Director)
Simon Hull (Non-independent Director)
Julia Hoare (Independent Director)
– resigned 30 June 2020
Wynnis Armour (Independent Director)
Nicholas Simcock (Independent Director)
Laurissa Cooney (Independent Director)
– appointed 1 August 2020
Auditor
Deloitte Limited
Deloitte Centre
80 Queen Street
PO Box 33
Auckland
Phone: +64 9 309 4944
Fax: +64 9 309 4947
Solicitors
Minter Ellison Rudd Watts
PwC Tower
15 Customs Street West
PO Box 105 249, Auckland 1143
New Zealand
DX CP24061
Phone: +64 9 353 9700
Fax: +64 9 353 9701
Share Registry
Link Market Services
L11, Deloitte Centre
80 Queen St
Auckland
New Zealand
PO Box 91976
Phone: +64 9 375 5998
or: 0800 377 388
Registered Office
Level 6, 51 Shortland Street
PO Box 105 675
Auckland City
Phone: +64 9 526 8770
ACCORDANT GROUP INTERIM REPORT FY21

Registered Office of
Accordant Group Limited
Level 6, 51 Shortland St
PO Box 105 675
Auckland City
Ph: 09 526 8770
accordant.nz