Accordant Group reports strong profits, recovering demand
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 12 months to 31 March 2021
Previous Reporting Period 12 months to 31 March 2020
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$205,482 -22.0%
Total Revenue $205,482 -22.0%
Net profit/(loss) from
continuing operations
$6,197 131.5%
Total net profit/(loss) $6,197 131.5%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.11388889
Imputed amount per Quoted
Equity Security
$0.08200000
Record Date 18 June 2021
Dividend Payment Date 30 June 2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
-$0.27489733 -$0.71101572
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to attached Financial Statements
Authority for this announcement
Name of person
authorised
to make this announcement
Patrick McCann
Contact person for this
announcement
Patrick McCann
Contact phone number (09) 526 8775
Contact email address patrick.mccann@accordant.nz
Date of release through MAP
27/05/2021
Audited financial statements accompany this announcement.
---
Accordant Group Limited
Level 6, 51 Shortland Street, Auckland
PO Box 105 675, Auckland 1143
Tel 09 526 8770
accordant.nz
NZX Release
27 May 2021
Accordant Group reports $6.2m annual profit, strongly recovering demand
Accordant Group Limited [NZX:AGL] today announces an after-tax profit of $6.2 million for the year ended 31
March 2021, up from $2.7 million a year ago.
In a very difficult, COVID-19 affected year, Accordant was able to continue to deploy large numbers of people
around the economy, with some in areas designated as essential services.
In this, Accordant was assisted by the Government’s wage subsidies in the first half of the financial year, which
allowed the Group to make the commitment to retain greater numbers of external and internal staff than they
would otherwise have been able to, giving us a ready workforce to today where we have strong demand.
JacksonStone & Partners also contributed a full 12 months, compared to 10 months in the 2020 financial year,
post-acquisition.
The result provides a $7 million impairment write-down on the carrying value of goodwill on Madison Recruitment.
• Group revenue $205 million (down 23.7% after annualising JacksonStone & Partners in FY20)
• NPAT $6.2 million
• Final dividend 8.2 cents per share (no final dividend in FY2020 or interim dividend for FY2021
declared/paid)
Other steps taken by the Group to minimise the impact of the pandemic disruptions included: curtailed operating
and capital expenditure; salary sacrifices across senior and operational personnel; Directors fee sacrifices; a
freeze on replacement and additional personnel hires; and landlord rental support.
Among Accordant’s three white-collar operating businesses, Absolute IT was least affected by COVID-19 related
disruption as contracting held up well, albeit customers curtailed their permanent recruitment activity. Similarly,
JacksonStone & Partners saw a fall in permanent recruitment activity. The pandemic impact was felt most by
Madison Recruitment, where border restrictions affected the temporary candidate pool and contracted the size of
the temporary job market.
The AWF blue-collar business was impacted by the COVID-19 disruption with revenue down 20.2% on FY2020,
however is recovering faster than anticipated.
CEO Simon Bennett said it was pleasing Accordant had been able to continue to employ large numbers of
labour-hire and white-collar temporary workers.
“Maintaining this large workforce has allowed us to remain connected to workers and employers, and positions us
well to supply strongly recovering demand.”
More recently, the Group has seen a significant increase in hiring activity across both temporary and permanent
markets.
Together with a robust year-end balance sheet, this has given the Board confidence to resume dividend
payments (following a 12-month suspension) with an 8.2 cents per share final dividend, payable on 30 June 2021
to shareholders on the register at 20 June 2021.
Accordant Group Limited
Level 6, 51 Shortland Street, Auckland
PO Box 105 675, Auckland 1143
Tel 09 526 8770
accordant.nz
The dividend reinvestment plan will not apply for this distribution.
Ends
Simon Bennett For the Board:
Chief Executive Ross Keenan, Chairman 021 685 655
For further information contact Simon Bennett:
09 917 1010
---
Annual Report
2021
FINANCIAL HIGHLIGHTS 2
ACHIEVEMENTS 3
WELCOME / OUR LOCATIONS 4
CHAIRMAN’S REPORT 6
CEO’S INSIGHTS 8
WHAT DRIVES US 12
OUR BUSINESSES 14
BOARD OF DIRECTORS 16
FINANCIAL COMMENTARY 18
CORPORATE GOVERNANCE STATEMENT 20
INDEPENDENT AUDITOR’S REPORT 24
FINANCIAL STATEMENTS 26
NOTES TO THE FINANCIAL STATEMENTS 30
SHAREHOLDERS’ STATUTORY INFORMATION 67
DIRECTORY 72
kia ora
contents
Highlights
RevenueNet Bank Debt 31.03.21
Operating Cash Flow
Net Profit After Tax
FY2020, $263.5 millionFY2020, $29.8 million
FY2020, $9.9 million
FY2020, $2.7 million
$205.5m$13.2m
$21.9m
$6.2m
Achievements
9,3411,300+
Candidates placed
into a temporary, contract
or permanent role.Training outcomes delivered.
Shareholders' Funds
FY2020, $33.7 million
$40.0m
24,000+
Temporary and contract
assignments filled across
New Zealand.
1,877
Organisations partnered with
to deliver recruitment services.
41,000+
Safety engagements with
our temporary employees.
AWF's audited ACC Accredited
Employer status improved to
secondary, demonstrating a
consolidation of good safety and
injury management practice.
Upgraded CRM and marketplace
partners embedded across our
white collar businesses.
Significant reduction in AWF's
carbon footprint with the
ongoing introduction of hybrid
vehicles across their fleet.
The Work Collective
continues to gather
momentum and
deliver impact.
ACCORDANT GROUP ANNUAL REPORT 202132ACCORDANT GROUP ANNUAL REPORT 2021
Why Accordant? It means harmony.
It means bringing people together. And it
means growing together.
It reflects our belief in treating people
with respect, nurturing their development,
and ensuring that thousands of New
Zealanders and New Zealand businesses
can put their best foot forward every day.
From our beginnings over three decades
ago, Accordant has been at the forefront
of connecting the people that move us
forward and create growth for our country.
Today, we are New Zealand’s leading
recruitment and resourcing company.
Proudly home grown, Accordant’s
businesses – Absolute IT, AWF,
JacksonStone & Partners and Madison
Recruitment – span the length and breadth
of New Zealand. We operate across
nearly every industry sector, at every skill
level, spanning permanent and temporary
recruitment, and contractor assignments.
We connect and nurture the development
of a diverse group of New Zealanders –
every day.
We have also established The Work
Collective, which plays an important
role in providing meaningful work
opportunities for those who face barriers
to employment, and offers organisations
a way to deliver social impact through
their staffing supply chain.
This gives us a view of the New Zealand
employment market that is unmatched,
providing a unique understanding and
point of view on the Future of Work.
Change is a constant, and nowhere is
this more strongly felt than in the labour
market. A proactive approach is required,
where innovative thinking seeks to find
the balance between the protection of
employees and the evolving needs of
employers.
Creating a New Zealand where we
can all prosper starts with a motivated
and engaged workforce. People that
feel pride, dignity, the reward of being
needed, and the thrill of achievement
that meaningful employment provides.
Creating these connections is how
we can make a positive impact on the
growth and success of New Zealand
– our home.
ABSOLUTE IT LOCATION
AWF LOCATION
JACKSONSTONE LOCATION
MADISON LOCATION
SELECT LOCATION
KEY
Kaitaia
Kerikeri
Whangarei
Auckland
Waihi
Tauranga
Rotorua
Hawkes Bay
Palmerston North
Petone
Wellington
Christchurch
Invercargill
Dunedin
New Plymouth
Whanganui
Nelson
Blenheim
Hamilton
Our Locations
Welcome to our first Annual Report in
our new Accordant livery. On 19 October
2020 we moved from a name embedded
in our history, to a name grounded in
purpose. The name Accordant signifies a
collaborative way of working that draws
from our collective capability to deliver
more for our clients.
Welcome
ACCORDANT GROUP ANNUAL REPORT 202154ACCORDANT GROUP ANNUAL REPORT 2021
Fortunately, Accordant Group saw a very
competent management take action
swiftly and firmly; and very impressively,
took their senior teams with them through
tremendous instability, such that salary
and wage sacrifices were promoted and
accepted.
We were later able, with Government
support, to reinstate payrolls and in the
wider environment, retain some 3,000
individuals across our internal and
contingent workforces.
Whilst the first lockdown set the tone, the
into lockdown – out of lockdown and so
on, challenged any hope of continuity and
it is only now that we could say with some
confidence that we are seeing a sustainable
slow climb back to a sense of normality.
With the permanent recruitment market
most significantly impacted in 2020,
the first to see growth was our AWF blue
collar labour hire channel. Whilst there
is a good recovery from Absolute IT and
JacksonStone & Partners, the white
collar Madison business has been slower
to return to previous revenue across
much of its private sector, albeit in the
last few weeks the market has gained
significant uplift.
I would like to reflect on one positive
side of the successive lockdowns, and
again we credit management, that as
revenues fell sharply, the opportunity
was taken to attack overhead costs in a
very aggressive manner which led to
(by Year End) overhead expenses being
at around 15% lower than the previous
year equivalents. Some footprints
reduced, but operations are now leaner
and more efficient; and in position to
accommodate growth.
So as the 2021/2022 Financial Year has
got underway, whilst we expect revenues
to track below previous years across the
Group, margins are improving as care is
taken to ensure sustainable growth
before fixed costs are added.
Shareholders will recall that Accordant
Group suspended the payment of dividends
during the uncertainty and did not pay a
final dividend for the 2019/2020 Year, nor
pay an interim dividend for the 2020/2021
Year, so it was pleasing to be able to advise
a resumption of dividends by declaring a
final dividend for the 2020/2021 Year of
8.2 cents – a resumption that is our goal to
continue as we move ahead.
Finally, as I expect this to be my last
Annual Report as Chairman due to my
intention to retire during the Financial
Year, it is appropriate that I thank major
shareholder Simon Hull for his unwavering
support through the journey from AWF
to the Accordant group of companies,
representing, as the Group does, a very
well-diversified recruitment and labour
contracting specialist business.
And I must acknowledge the masterful
leadership of Simon Bennett. Simon’s
leadership builds competency, and that
we see in plenty within the Group.
We expect to hold the 2021 Annual
Shareholders’ meeting on Thursday
26 August, in the same manner as 2020,
noting that we achieved much wider
shareholder participation this way.
For the Board,
Ross B Keenan
Chairman
Chairman's Report
Dear Shareholder,
I am sure that many Boards like
Accordant Group are reflecting
on “a year like no other”, or similar
sentiments, as we try to describe
the turbulence that was the
Financial Year to March 2021.
It is not just about the end result
financials and how we got there,
but also about the toll the pandemic
took on people, on business
relationships, on brand values
and, in some cases, the challenges
to the very core of the business
base of Accordant Group’s well-
diversified recruitment and service
provider areas.
ACCORDANT GROUP ANNUAL REPORT 202176ACCORDANT GROUP ANNUAL REPORT 2021CHAIRMAN'S REPORTCHAIRMAN'S REPORT
CEO's Insights
The labour market in New Zealand
is impacted by global trends, the
economy and immigration settings.
It is also impacted by the employment
legislative framework, which shifts
as a result of developing case law
and the views of the government of
the day. Macroeconomic trends
shift demand, largely in proportion
to GDP growth.
Well, in fact what I have described is
true of the world that we understood
prior to COVID-19. The impact on the
labour market and on our business
began on 26 March 2020, when
we went into a Level 4 lockdown.
There has been significant impact
on the labour market, and if there is
one thing that I am certain of, it is
that more change is inevitable.
Accordant
continues to
strengthen our
solutions and
the way we
can offer
these services
to our clients.
Simon Bennett, CEO
ACCORDANT GROUP ANNUAL REPORT 202198ACCORDANT GROUP ANNUAL REPORT 2021CEO'S INSIGHTSCEO'S INSIGHTS
We also have the opportunity to benefit
from taking market share from the
illegitimate operators in this space, as
we see the government minimising the
opportunity for exploitative practices.
Last year we co-defended a status claim
in the Employment Court alongside our
government client. The eight plaintiffs,
all former Madison employees backed
by the PSA union, claimed they were not
our employees, but those of our client.
It was significant that a full bench of
the Employment Court confirmed the
legitimacy of our tripartite agreement,
which underscores our temporary
workforce business model. It is a strong
affirmation of our processes and a
benchmark for best practice. The decision
was significant, being 100 percent in
our favour.
The New Zealand labour market
currently has significant shortages in ICT,
construction and healthcare. We believe
that, even with open borders, we cannot
expect immigration settings to allow for the
same volume of migrants to supplement
our workforce, as they have done prior
to COVID-19. Maximising workforce
participation, and growing the available
workforce, is crucial for our country to
fill the demand for workers.
Fair Pay Agreements will have a
significant impact on the labour market
and will add complexity to all businesses.
Whilst it is too early to tell what the impact
will be, it is clear that the intent is to
move our landscape to more of a collective
bargaining framework from that of
individual, which the Employment
Contracts Act facilitated. Historically,
the more difficult the employment
landscape the higher the use of
alternative arrangements, reducing the
dependence on direct employment by
host organisations. Contractors, Managed
Services, use of temporary workers
through agency, and other sole traders
flourished in this environment. We expect
this complexity to challenge businesses;
and although it will also add complexity
to our business, our scale, capability
and expertise will see us as part of the
solution for our clients.
DELIVERING SOCIAL IMPACT
We developed our social employment
initiative, The Work Collective, as a
supplementary channel to help grow the
labour market through enabling broader
workforce participation. Our purpose is
making work more accessible to people
marginalised from the workplace, and
often from basic social needs as well. It
is encouraging that many organisations
recognise the need for an investment in
these social goals. We are seeing demand
for this service and look forward to growing
The Work Collective significantly this year.
The ability to see future career pathways
in new sectors and channels for our
candidates also becomes more important.
Transferable skills must be utilised, and a
more nuanced approach to recruitment for
hard-to-fill roles of all types across blue and
white collar. Better candidate engagement
will be rewarded as we move in to a ‘jobs
rich’ and ‘candidate short’ environment.
OUR EVOLVING SOLUTIONS
Over six months have passed since we
rebranded to Accordant. I have been
delighted to see how the change has been
welcomed and championed by our people,
and our collective capability remains a
defining point in our story. Accordant will
continue to support the needs of New
Zealanders, and enable productivity and
growth for the country.
Of course, our businesses have always
celebrated candidate centricity, but now
have a suite of monitoring tools across the
Group to measure candidate satisfaction
more acutely, enabling us to set the bar
even higher.
Equally important in managing high open-
job volumes is classifying activities and role
types where we have not been successful,
to ensure our strategies are fine-tuned and
client expectations can be managed. This
balances our candidates’ expectations with
operational efficiency and optimisation of
return on resources.
Accordant continues to strengthen our
solutions and the way we can offer these
services to our clients. As in larger markets,
a Managed Service approach will become
more attractive to larger clients who
manage up to 10% of their workforce with
workers other than permanent full-time.
The development of strong shared service
capability in our business, from recruitment
marketing to workforce management and
data insights, holds us in good stead.
The roll out of common operating
platforms across all our white-collar
businesses, along with the strength and
growth of our recruitment marketing and
sourcing teams, positions us well in this
challenging labour market.
At the commencement of the new
financial year we were operating on a
lower headcount, particularly in Madison
where volumes reduced significantly
during the year, with a fall-off in clients’
agency spending in the initial weeks
post-lockdown. We, like many others, had
predicted a recession by now and had
acted accordingly. It is positive that these
initial recessionary predictions have not
come to pass. We have some rebuilding
to do in terms of our capacity, which
is well underway.
The wage subsidy enabled us to
continue employing large numbers of
labour hire and white-collar temporary
workers. The alternative would have
meant significantly downscaling our
workforce through redundancies and
ending assignments. Maintaining this large
workforce ensured access to subsidy
funds for a larger group of workers, and
also allowed us to remain connected to
them, giving us a ready workforce when the
lockdown ended, through to today where
we have strong demand.
Substantive COVID-19 response
measures (including business changes,
cost-containment, wage subsidy, reduction
in working capital and the 12-month
suspension in dividend) have allowed us
to reduce our debt profile.
We have a solid base now to grow the
business. With capital on hand, we can
balance our desire to return a dividend
to our shareholders, whilst retaining our
ability to scale up our workforce and
invest in our current sectors. We are also
well-positioned to look for opportunity in
aligned sectors where we can leverage
our scale, systems and processes.
As a business from humble beginnings
at the core of working New Zealand,
we are now knitted into the fabric of the
New Zealand economy, across sectors and
through the full life cycle of careers. We are
proud of the impact we make, and I look
forward to contributing to the fulfilment of
our potential as I transition to the Board
and hand over to our new Chief Executive.
Simon Bennett
Chief Executive
ACCELERATED FLEXIBILITY
The backdrop of a number of factors
have accelerated global and national
trends. Firstly, workforce flexibility was
required to navigate varying operational
requirements as we moved in and
out of lockdown. Many sectors were
impacted including retail initially, along
with tourism and education, which
continue to struggle. The demand for a
large number of roles disappeared, and
many new roles were created. Secondly,
working from home became widespread
almost immediately, rather than the slow
creep that had been occurring.
In New Zealand, our government
has directly contributed to mass
redeployments and encouraged working
from home where possible. There has
been anecdotal evidence that people
moved to where the work was, with
newspaper articles of airline pilots
stacking shelves in supermarkets and the
like, but there is hard evidence that there
were insufficient numbers of the local
workforce mobilised in the horticulture
sector, for instance.
The need for workforce flexibility has
never been more acute. Even within
government, workforce mobility is an
issue, and a working group has been
established within Te Kawa Mataaho
Public Service Commission to explore
better ways of mobilising people across
different government agencies, beyond
the current secondment process.
Maximising workforce
participation, and
growing the available
workforce, is crucial for
our country to fill the
demand for workers.
Even with open borders
we cannot expect
immigration settings to
allow for the same volume
of migrants to supplement
our workforce.
THE CHANGING WORKFORCE
We are very much at a crossroads in
New Zealand. There is the desire for
flexibility, but with a global and national
desire to increase worker protections
at the same time. The flexibility and
‘uberisation’ of work, where people are
paid for the outcome not the input, has
created opportunity for exploitation.
In New Zealand the term ‘non-standard
work’, which is used to describe anything
other than full time employment, is
growing at pace. To classify workers as
either standard or non-standard is overly
simplistic, and 'non-standard' work hardly
sounds endearing to those workers.
NEW ZEALAND’S
LEGISLATIVE FRAMEWORK
Employment legislation must cater for
this growing workforce. The Employment
Relations (Triangular Employment)
Act 2019 is the first legislation that
talks to this space, whereby an agency
employer, like we are, employs workers
who carry out assignments at client
sites. This type of work must ensure
that the responsibilities of each of the
three parties are clear, and that minimum
entitlements for the employee are
met. Sham contracting arrangements
(whereby an employer engages low-pay
workers through a contractor model –
circumnavigating the provision of basic
employee entitlements), or inappropriate
casualisation by businesses, must be
eliminated. All forms of employment
should meet certain standards, so that
work performed by those who are
not permanent full-time workers, is
considered standard work too,
by definition.
As a business that engages workers
across all sectors carrying out tasks
for clients in this ‘non-standard’ space,
we have access to a growing market.
ACCORDANT GROUP ANNUAL REPORT 20211110ACCORDANT GROUP ANNUAL REPORT 2021CEO'S INSIGHTSCEO'S INSIGHTS
What Drives Us
Our DifferenceOur VisionOur Belief
Our People
We believe
it is people
that drive
our country
forward.
At the heart of our business
is a group of curious, resilient,
capable and engaged people
who are driving us forward.
Their determination to do better
empowers us to contribute
more additively to the lives
of New Zealanders and the
success of New Zealand.
To grow our impact
as New Zealand’s
leading recruitment and
resourcing company,
for the benefit of our
people, customers,
finances and country.
Our Customers
We will choose and partner with our
clients wisely, adding value through quality,
expertise, efficiency, relationships and
customised solutions.
Our Finances
We will drive strong dividend and NPBT
growth through continued performance
and improvement initiatives to create
sustainable shareholder value.
Our Country
Our unique position enables us to provide
proactive solutions to address structural
challenges in the employment market,
making an impact by growing and shaping
our workforce for the current and future
needs of New Zealand.
ENABLING
GROWTH
Strong metro
and regional
representation to
enable productivity
and growth
CONNECTING
PEOPLE
Building networks
and relationships
across New Zealand
DIVERSITY &
INCLUSION
Growing capability
and nurturing a
diverse and inclusive
workforce
INNOVATIVE
SOLUTIONS
Delivering innovation
and insights that
help shape the
employment market
13ACCORDANT GROUP ANNUAL REPORT 2021ACCORDANT GROUP ANNUAL REPORT 202112
Our Businesses
Since 1988, AWF has had a proud
history of supplying entry-level,
semi-skilled and skilled workers
to a range of sectors, spanning
infrastructure, construction,
transport, logistics, manufacturing,
primary industries and many
more. From Kaitaia in the north
to Invercargill in the south,
AWF’s network of 21 branches
provide hundreds of enterprises
throughout New Zealand with
the human capital necessary to
complete major projects, meet
increased demand in goods and
services, and fill the skills gap in
permanent workforces.
Madison was established in 1998
and has become the recruitment
partner to a wide variety of
organisations within the private,
public and not-for-profit sectors.
Madison’s service spans entry
level and support roles through
to professional and managerial
positions. Each year, hundreds
of permanent positions are filled
by candidates who have been
sourced and matched to meet
specific business requirements,
and every day hundreds more
employees work on temporary
and contract assignments across
New Zealand’s major cities.
Founded in 2000, Absolute IT
caters to the specific recruitment
needs of the technology and digital
sectors. Absolute IT’s specialist
recruiters provide permanent and
contractor staffing services New
Zealand-wide from their offices
in Wellington, Auckland, Hamilton
and Christchurch. From resourcing
large transformation programmes
in the public sector, to sourcing the
right fit for large corporates and
attracting world class talent for
New Zealand start-ups, Absolute IT
is relied upon for its expertise and
extensive networks.
JacksonStone & Partners is
one of the most experienced
executive search and recruitment
consultancies in New Zealand.
Established in 2011, JacksonStone
works across all disciplines up
to Chief Executive level and
including board appointments,
for organisations in the public,
private and not-for-profit sectors.
JacksonStone offers global search
reach through their membership
of the CFR Global Executive
Search alliance. Their experienced
consultants have the capability
to identify and place talent both
nationally and internationally.
The Work Collective is an
employment initiative that
delivers social impact by
connecting Employers,
Employment Support
organisations and Accordant,
New Zealand’s leading
recruitment and resourcing
Group. The purpose of The
Work Collective is to provide
meaningful work opportunities
for those who face barriers
to employment. Launched in
mid-2019, The Work Collective
offers organisations a way to
achieve social impact through
their staffing supply chain.
Accordant's
businesses
span the length
and breadth of
New Zealand.
ACCORDANT GROUP ANNUAL REPORT 20211514ACCORDANT GROUP ANNUAL REPORT 2021OUR BUSINESSESOUR BUSINESSES
Wynnis ArmourLaurissa CooneyRoss KeenanNick SimcockSimon Hull
Wynnis joined the Board in January
2015 and is now an independent Director.
After holding senior management
positions in both the public and private
sectors, (including Adecco – one of the
largest global recruitment firms) Wynnis
co-founded the Madison Group which
was sold to AWF in 2013. She contributes
a wealth of business experience and
commercial acumen and a particular
understanding of the Group’s businesses.
Wynnis is a member of Global Women
and the Institute of Directors and is a
Director of angel investor ArcAngels and
of Armour Consulting.
Ross joined the Board in 2004 in the
build-up to AWF’s listing and is the
Group’s Chairman and an independent
Director. He brings to the Board a
wealth of corporate experience gained
as Managing Director of Ansett New
Zealand and later Newmans Group. Ross
held executive management positions
with Air New Zealand, Air Pacific and
Qantas from 1968 to 2000 in Fiji,
Australia, Los Angeles and London. He is
also a Director of Touchdown Ltd.
Nick joined the Board as an independent
Director in January 2018 after 15 years
in Managing Director roles in New
Zealand, Australia, and Asia/Pacific
with Korn Ferry/Futurestep. Nick brings
deep industry expertise in recruiting,
outsourcing, and talent management.
Nick was the CEO and Director of a start-
up SaaS payments business Wrap It Up,
which was sold in 2017. He is a Trustee
on the Wellington Creative Capital Arts
Trust, and was formerly on the Otago
University Business School Board of
Advisors. Nick is a Chartered Member of
the Institute of Directors.
Simon founded the Allied Work Force
business in 1988. He was AWF Managing
Director for 27 years and is its largest
shareholder. He has been instrumental
in growing what is now the Accordant
business from a single office in Penrose to
its current market leading position. Before
founding Allied Work Force, Simon was
involved in farming, horticulture and small
business management. He continues to be
involved in marine-focussed businesses as
well as pursuing his onshore and offshore
yacht racing passion. Simon is a non-
executive (“non-independent”) Director.
Board of Directors
Laurissa, who is of Te Ati Hau Nui a Papa
Rangi (Whanganui) descent, joined the
Board as an independent Director in
August 2020. Laurissa has previously
held senior management, auditing and
consulting roles with Deloitte in New
Zealand and Deloitte Touche in London,
and was the CFO for Te Whare Wananga
o Awanuiarangi. She currently serves
as the Chair of Tourism Bay of Plenty,
and she is an independent Director for
Air New Zealand and Goodman (NZ).
She is also a Trustee for the commercial
investment trust of Ngai Tai Ki Tamaki
and a guardian of Aotearoa Circle.
17ACCORDANT GROUP ANNUAL REPORT 2021BOARD OF DIRECTORSBOARD OF DIRECTORSACCORDANT GROUP ANNUAL REPORT 202116
REVENUE
Group Revenue of $206m was down on
the prior year Revenue of $264m.
This COVID-19 affected year and its resulting
lockdowns saw Group Revenue down $58.0m
(22.0%) or $63.9m (23.7%) after annualising
for JacksonStone & Partners in FY20, acquired
1 June 2019.
AWF Revenue was down $19.7m (20.2%)
on the prior year. Revenue sourced from
provision of services to Commerce (Madison
Recruitment, Absolute IT & JacksonStone
& Partners) was down $38.3m (23.1%)
or $44.2m (25.7%) after annualising for
JacksonStone & Partners in FY20,
acquired 1 June 2019.
NET PROFIT AFTER TAX
After-tax profit of $6.2m was up on the
prior year result of $2.7m.
This year’s result includes a fair value
adjustment gain of $1.285m on the deferred
contingent consideration payable to the
vendors of JacksonStone & Partners.
The current years result provides a $7.0m
impairment write down on the carrying
value of Goodwill on Madison Recruitment.
DIVIDEND
COVID-19 saw the suspension of Dividend
payments for both the final dividend for the
year ended 31 March 2020 and the interim
dividend for year ended 31 March 2021.
The Directors have resolved to resume
distributions of dividends and approved the
payment of a fully imputed final dividend of
8.2 cents per share to be paid on 30 June
2021 to all shareholders registered on
20 June 2021. The dividend reinvestment
will not participate in this distribution.
CASH FLOW
Net cash flow from Operations was
unfavourable. The Group paid out to suppliers,
contractors and employees more than was
recovered from customers which illustrates
the impact of COVID-19.
During the 20-week Government Wage
Subsidy period, qualifying Group entities
(excludes Absolute IT) incurred Gross
Payroll costs of $54.8m funded in part by
Government wage subsidies of $33.8m of
which $33.3m was received during
financial year 2021.
BORROWINGS
The ASB revolving credit facility has been
reduced to $30.0m (FY20 $36.0m) and
extended out to 31 October 2022. At 31 March
2021 the facility was drawn to $15.0m.
Financial Commentary
ACCORDANT GROUP ANNUAL REPORT 20211918ACCORDANT GROUP ANNUAL REPORT 2021
The Board of Directors of Accordant
Group Limited (NZX:AGL) is responsible
for the corporate governance of the
Company. The Board has established
a culture that ensures commitment to
and compliance with good corporate
governance principles, and ethical
conduct is at the heart of the Company’s
business practices. The Company
will continue to monitor developments
in corporate governance practices and
update its policies to ensure Accordant
maintains appropriate standards
of governance.
This statement sets out the corporate governance policies,
practices and processes followed by the Board throughout
the year. Accordant complies with the NZX Listing Rules and
the corporate governance principles set out in the NZX Code
of Corporate Governance. The Company also complies with
the principles in the Financial Markets Authority’s Corporate
Governance Principles and Guidelines.
THE BOARD
The Board is responsible for the affairs and activities
of the Company. It establishes the Group’s objectives,
strategies for achieving these objectives, the overall policy
framework within which the business of the Group is
conducted, and monitors Management’s performance with
respect to these matters. The Board has delegated the
day-to-day management of the Group to the Chief Executive
Officer. Other delegations are covered in a Delegations Policy.
The Company’s Constitution and the Board Charter set out
the policies and guidelines for the operation of the Board.
BOARD COMPOSITION AND OPERATIONS
As at 31 March 2021, the Board comprised five Directors.
Ross Keenan (Chairman), Laurissa Cooney, Wynnis Armour
and Nick Simcock have been determined as independent
Directors as defined by the NZX Listing Rules. Simon Hull
is a non-independent Director.
The Board is elected by the shareholders of the Company.
In accordance with the Company’s constitution and the NZX
Listing Rules, a director must not hold office (without
re-election) past the third annual meeting following the
director’s appointment or three years, whichever is longer.
The Board holds regularly scheduled meetings and
other meetings on an as required basis. Board papers are
circulated ahead of each meeting. The Board has access
to senior executives and external advisers to provide
further information.
BOARD REMUNERATION
Directors’ fees for the year ended 31 March 2021 totalled
$332,000. A fee of $109,000 per annum was paid to the
Chairman, $57,000 per annum to Nick Simcock, Simon Hull
and Wynnis Armour, $40,000 to Laurissa Cooney (appointed
1.08.20) and $12,000 to Julia Hoare (retired 30.06.20).
The fees paid in FY2021 included a fee sacrifice related to
COVID-19 cost containment measures. Further information
is provided in the Statutory Information section of the
annual report.
The terms of any Directors’ retirement payments are as
prescribed in the Constitution and require prior approval
of shareholders in general meeting. No retirement
payments have been made to any Director.
BOARD COMMITTEES
The Board has five formally constituted committees of
Directors. Each Committee has a Charter or terms of reference
that establishes its purpose, structure and responsibilities.
The Committees make recommendations to the Board
and may only make decisions on matters for which they
have been given specific authority.
1. Audit, Finance and Risk Committee
The Audit, Finance and Risk Committee provides
independent assurance and assistance to the Board
and Chief Executive on the Company’s risk, control and
compliance framework, and its external financial reporting
and accountability responsibilities.
The Committee is comprised of a majority of
independent Directors. The members of the Committee
are Laurissa Cooney (Chairperson), Ross Keenan,
Wynnis Armour, Simon Hull and Nick Simcock.
The Committee meets at least twice per year, with the
external auditors of the Company and the Accordant
executives responsible for internal audit management
from within the Company in attendance. The Committee
also meets with the external auditors with Accordant
executives absent.
Corporate
Governance Statement
ACCORDANT GROUP ANNUAL REPORT 20212120ACCORDANT GROUP ANNUAL REPORT 2021CORPORATE GOVERNANCE STATEMENTCORPORATE GOVERNANCE STATEMENT
DIVERSITY
The Company has a diversity policy in place (refer to the
website), consistent with the Directors’ belief that a diverse
workforce contributes to improved business performance,
enables innovation and enhances the Company’s
relationship with its customers.
In accordance with NZX’s Listing Rule requirements,
the gender breakdown of Accordant Group Limited’s Board
of Directors and Officers as at 31 March 2021 is:
DIRECTORS’ AND OFFICERS’ INDEMNITY
AND INSURANCE
The Company has insured all its Directors and Officers and
the Directors of its subsidiaries against liabilities to other parties
(except the Company or a related party of the Company) that
may arise from their position as Directors. The insurance does
not cover liabilities arising from criminal actions.
The Company and Officers have executed Deeds of Indemnity
with Directors, indemnifying them to the extent permitted
by section 162 of the Companies Act 1993.
RISK MANAGEMENT
The Board is responsible for ensuring that key business
and financial risks are identified and appropriate controls and
procedures are in place to effectively manage those risks. In
managing the Company’s business risks, the Board approves
and monitors policy and process in such areas as internal
audit, treasury management, financial performance and capital
expenditure. The Board also monitors expenditure against
approved projects and approves the capital plan.
A Risk Framework is in place (refer to the website).
Principles:
• creates and protects value;
• is an integral part of all Accordant’s processes;
• is part of the decision-making process;
• explicitly addresses uncertainty;
• is systematic, structured and timely;
• is based on the best available information; and encourages
open communication;
• is tailored to Accordant;
• takes human, cultural factors and diversity into account;
• is transparent and inclusive;
• is dynamic, iterative and responsive to change; and
• facilitates continual improvement.
The Company has insurance policies in place covering most
areas of risk to its assets and business. Policies are reviewed
and renewed annually with reputable insurers.
Directors may seek their own independent professional
advice to assist with their responsibilities. During the 2021
financial year no Director sought their own independent
professional advice.
INTERESTS REGISTER
The Board maintains an Interests Register. In considering
matters affecting the Company, Directors are required to
disclose any actual or potential conflicts. Where a conflict
or potential conflict has been disclosed, the Director takes
no further part in receipt of information or participation in
discussions on that matter.
DISCLOSURE/SHAREHOLDER RELATIONS
The Company has a Continuous Disclosure Policy and
procedures in place to ensure key financial and material
information is communicated to the market in a clear and
timely manner.
Consistent with best practice and a policy of continuous
disclosure, external communications that may contain
market sensitive data are released through NZX in the first
instance. Further communication is encouraged with press
releases through mainstream media.
The Company’s website is actively used as a portal for
shareholder reports, news releases and other communications
released to shareholders and media.
The Board formally reviews its proceedings at the
conclusion of each meeting to determine whether there
may be a requirement for a disclosure announcement.
2. Remuneration Committee
The Remuneration Committee’s purpose is to establish
sound remuneration policies and practices that attract and
retain high performing Directors and senior executives.
The Committee ensures that executives and Directors
are rewarded having regard to the Company’s long-term
performance. The policies adopted are intended to
align shareholder interests and employee interests by
demonstrating a clear relationship between shareholder
value and executive performance.
The members of the Committee are Wynnis Armour
(Chairperson), Simon Hull, Laurissa Cooney, Ross Keenan
and Nick Simcock. The Committee meets at least annually
to review senior executive remuneration and incentives.
3. Nominations Committee
The Nominations Committee assists the Chairman
with an annual evaluation of the Board and Director
performance; to determine Director Independence and
to identify and recommend to the Board individuals for
nomination as members of the Board and its Committees.
All of the Board are members of this Committee.
The Committee meets at least annually.
4. Health & Safety Committee
The role of this Committee is to assist the Board to
fulfil its responsibilities and to ensure compliance with
all legislative and regulatory requirements in relation
to the health and safety practices of the Company as those
activities affect employees and contractors. It ensures that
the Board members themselves are aware of their own
responsibilities and duties under legislation, and are fully
informed on all Health and Safety issues and targets.
The members of this Committee are Simon Hull (Chairman),
Wynnis Armour, Laurissa Cooney, Ross Keenan and
Nick Simcock.
The Committee members participate in monthly meetings,
and participate in and review reports presented by the
Group Operations Health and Safety Committee.
5. Organisation Committee
The Organisation Committee acts as a reference point
for the Chief Executive in matters around organisational
change as required from time to time. The Committee is
also responsible for assisting the Board in the application of
remuneration policies and best practice for the Board, Chief
Executive and Senior Management.
The members of the Committee are Wynnis Armour
(Chairperson), Ross Keenan, Simon Hull, Laurissa Cooney
and Nick Simcock.
REMUNERATION OF AUDITORS
Details of remuneration paid to Auditors are set out in
A4 of the Financial Statements.
NON-AUDIT SERVICES
The External Financial Auditors Independence Policy sets
out the Company’s position in regard to non-audit services.
Deloitte Limited are the auditors of Accordant Group
Limited and whilst its main role is to provide audit services
to the Company, the Company does employ their specialist
advice where appropriate. In each instance, the Board has
considered the nature of the advice sought in context of the
audit relationship. In accordance with the advice received
from the Audit, Finance and Risk Committee, the Board does
not consider these services have compromised the auditor
independence for the following reasons:
All non-audit services have been reviewed by the Audit, Finance
and Risk Committee to ensure they do not impact
the impartiality and objectivity of the auditor;
None of the services undermined the general principles relating
to auditor independence, including not reviewing
or auditing the auditor’s own work, not acting in a management
or decision-making capacity for the Company, not acting as
advocate for the Company or not jointly
sharing economic risk or rewards.
SHARE TRADING
The Company has adopted a Share Trading policy that sets
out the formal procedures Directors and employees are
required to follow to ensure compliance with the Financial
Markets Conduct Act 2013 (refer to the website).
2021 2020
MALE FEMALE MALE FEMALE
NUMBER OF DIRECTORS 3 2 - 3 2 -
PERCENTAGE OF DIRECTORS 60% 40% - 60% 40% -
NUMBER OF OFFICERS 4 5 - 5 4 -
PERCENTAGE OF OFFICERS 44% 56% - 56% 44% -
GENDER
DIVERSE
GENDER
DIVERSE
ACCORDANT GROUP ANNUAL REPORT 20212322ACCORDANT GROUP ANNUAL REPORT 2021CORPORATE GOVERNANCE STATEMENTCORPORATE GOVERNANCE STATEMENT
ACCORDANT GROUP ANNUAL REPORT 20212524ACCORDANT GROUP ANNUAL REPORT 2021
Other information
The directors are responsible on behalf of the Group for
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 consolidated
financial statements in accordance with NZ IFRS and IFRS,
and for such internal control as the directors determine is
necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether
due to fraud or error.
In preparing the consolidated financial 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 use
This 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.
Bryce Henderson, Partner
for Deloitte Limited
Auckland, New Zealand
27 May 2021
Opinion
We have audited the consolidated financial statements of
Accordant Group Limited and its subsidiaries (the ‘Group’),
which comprise the statement of financial position as at 31
March 2021, and the statement of comprehensive income,
statement of changes in equity, and statement of cashflows for
the year then ended, and notes to the consolidated financial
statements, including a summary of other accounting policies.
In our opinion, the accompanying consolidated financial
statements, on pages 26 to 66, present fairly, in all material
respects, the consolidated financial position of the Group as
at 31 March 2021, and its consolidated financial performance
and cash flows for the year then ended in accordance with
New Zealand Equivalents to International Financial Reporting
Standards (‘NZ IFRS’) and International Financial Reporting
Standards (‘IFRS’).
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (‘ISAs’) and International Standards
on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities
under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial
Statements section of our report.
We believe 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 International Code of
Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and
the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants
(including International Independence Standards), and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
Other than in our capacity as auditor, we have no relationship
with or interests in the Company or any of its subsidiaries.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
consolidated financial statements of the current period.
These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Key audit matterHow our audit addressed the key audit matter
Impairment testing of goodwill and other indefinite life
intangible assets
Goodwill of $38.1 million (2020: $45.1 million) and other indefinite life
intangible assets (brand names) of $10.5 million (2020: $10.5 million)
are recognised in the consolidated financial statements at 31 March
2021, as detailed in notes B4 and B3 respectively.
Goodwill and other indefinite life intangible assets are tested for
impairment annually or whenever there are indicators that these assets
may be impaired.
For the purpose of impairment testing, the goodwill and other indefinite
life intangible assets are allocated to cash generating units (CGU).
The recoverable amount of each CGU is determined through a value in
use calculation, which reflects significant unobservable inputs, including
forecasted financial performance, discount rates and growth rates
(including terminal growth rate).
As disclosed in note B4, the impact of the Covid-19 pandemic has been
more pronounced on Madison Recruitment with slower rate of recovery
to pre-Covid-19 financial performance. As a result, an impairment of
$7 million is recognised against goodwill during the period.
We have included the impairment considerations of goodwill and
other indefinite life intangibles as a key audit matter because of their
significance to the Group’s consolidated financial statements, the
judgement involved in determining the recoverable amount of each
CGU in particular the forecasted financial performance and the
additional consideration for Madison Recruitment CGU due to the
impairment loss recognised.
We have audited the Group’s value in use calculations for each
cash-generating unit (CGU). Our procedures included, amongst others:
• Testing the value in use calculations for arithmetic accuracy;
• Comparing the forecast performance with the approved 2022
financial year budget;
• Assessing the historical accuracy of the Group’s previous forecasts
by comparing prior period budgets to actual performance;
• Challenging Management’s assumptions used in the forecasted
financial performance, by utilising our knowledge of the Group, the
past performance of the CGUs, and their customers;
• Performing sensitivity analysis on the forecasted financial
performance, growth rates and discount rates and terminal growth
rates to determine the extent to which any changes in these inputs
would result in impairment to AWF, Absolute IT and JackSon &
Partners or an additional impairment to Madison;
• Involving our internal valuation specialists in assessing the discount
rates for reasonableness in comparison to market data; and
• Evaluating the sufficiency of related disclosures with regards to
the requirements of NZ IAS 36 Impairment of Assets.
Password = AR21r3port!
INDEPENDENT AUDITOR’S REPORTINDEPENDENT AUDITOR’S REPORT
To the Shareholders of Accordant Group Limited (formerly AWF Madison Group Limited)
Independent Auditor’s Report
FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20212726ACCORDANT GROUP ANNUAL REPORT 2021FINANCIAL STATEMENTS
Accordant Group Limited (formerly AWF Madison Group Limited)
Statement of comprehensive income
For the year ended 31 March 2021
GROUP
20212020
NOTE$’000$’000
Revenue from contracts with customersA2205,482263,527
Investment revenueA3–9
Fair value gain on contingent considerationF71,285–
Direct costs(2,569)(2,462)
Employee benefits expenseA1, F1(92,170)(148,975)
Contractor costsA1(78,632)(90,233)
Depreciation and amortisation expenseA4, B1, B2, B3(5,286)(6,194)
Impairment of goodwillA4, B4(7,000)–
Other operating expenses(8,953)(9,691)
Finance costsA4(1,228)(2,084)
Profit before tax10,9293,897
Income tax expenseA5(4,732)(1,220)
Profit for the year6,1972,677
Other comprehensive income for the year––
Total comprehensive income for the year6,1972,677
Earnings per share
Total basic earnings per share (cents/share)C318.17. 9
Total diluted earnings per share (cents/share)C318.17. 9
The notes to the Group financial statements form an integral part of these financial statements
GROUP
20212020
NOTE$’000$’000
Assets
Non-current assets
Property, plant and equipmentB13,4923,193
Right of use assetsB28,57011,107
Intangible assets – goodwillB438,06845,068
Intangible assets – otherB314,48116,194
Total non-current assets64,61175,562
Current assets
Cash and cash equivalentsC51,7956,178
Trade and other receivablesC623,27153,442
Contract assetsA218087
Total current assets25,24659,707
Total assets89,857135,269
Equity and liabilities
Non-current liabilities
Deferred tax liabilitiesA52,4193,122
BorrowingsC715,00036,000
Lease liabilitiesB26,9919,098
Contingent considerationF7–1,841
Total non-current liabilities24,41050,061
Current liabilities
Trade and other payablesC820,18046,169
Contract liabilitiesA2230202
Taxation payableA51,829950
ProvisionsF2400189
Lease liabilitiesB22,2642,501
Contingent considerationF75351,463
Total current liabilities25,43851,474
Total liabilities49,848101,535
Net assets40,00933,734
Capital and reserves
Share capitalC230,86830,868
Group share scheme reserve204330
Retained earningsC18,9372,536
Total equity40,00933,734
For and on behalf of the Board who authorise the issue of the financial statements on 27 May 2021:
ROSS KEENAN, ChairLAURISSA COONEY, Chair, Audit, Finance & Risk Committee
The notes to the Group financial statements form an integral part of these financial statements
Accordant Group Limited (formerly AWF Madison Group Limited)
Statement of financial position
As at 31 March 2021
FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20212928ACCORDANT GROUP ANNUAL REPORT 2021FINANCIAL STATEMENTS
GROUP
Share
capital
Group share
scheme reserve
Retained
earnings
Total
equity
NOTE$’000$’000$’000$’000
2020
Balance at 31 March 201929,1655445,11134,820
Comprehensive income
Profit for the year––2,6772,677
Other comprehensive income––––
Total comprehensive income––2,6772,677
Transactions with shareholders
Issue of share capitalC21,703––1,703
Dividends paidC1, C4––(5,581)(5,581)
Stock appreciation rights modifiedC1, F1–(329)329–
Share based paymentsF1–115–115
Total transactions with shareholders1,703(214)(5,252)(3,763)
Balance at 31 March 202030,8683302,53633,734
2021
Balance at 31 March 202030,8683302,53633,734
Comprehensive income
Profit for the year––6,1976,197
Other comprehensive income––––
Total comprehensive income––6,1976,197
Transactions with shareholders
Restricted shares expiredC1, F1–(162)162–
Restricted shares lapsedC1, F1–(42)42–
Share based paymentsF1–78–78
Total transactions with shareholders–(126)20478
Balance at 31 March 202130,8682048,93740,009
The notes to the Group financial statements form an integral part of these financial statements
GROUP
20212020
NOTE$’000$’000
Cashflows from operating activities
Receipts from customers212,846267,767
Payments to suppliers, contractors and employees(218,504)(255,072)
Net cash from operations (used in)/generated(5,658)12,695
Interest received–9
Net Receipts from Government Grants33,323538
Interest paid on bank overdraft and loans(707)(1,401)
Interest paid on lease liabilitiesB2(505)(582)
Income taxes paid(4,556)(1,370)
Net cash from operating activitiesC521,8979,889
Cashflows from investing activities
Proceeds from disposal of property, plant and equipment13560
Purchase of property, plant and equipmentB1(1,424)(899)
Purchase of intangible assetsB3(10)(143)
Net cash paid on acquisition of JacksonStone & Partners–(5,153)
Repayment of deferred consideration to the vendor of JacksonStone & Partners(1,500)(616)
Net cash (used in)/from investing activities(2,799)(6,751)
Cashflows from financing activities
Proceeds from the issue of share capitalC2, C4–1,703
Dividends paid to share holders of the parentC4–(5,581)
Proceeds from borrowingsC7–3,000
Repayment of borrowingsC7(21,000)–
Payment of principal on lease liabilitiesB2(2,481)(2,439)
Net cash from/(used in) financing activities(23,481)(3,317)
Net increase/(decrease) in cash held(4,383)(179)
Cash and cash equivalents at start of the year6,1786,357
Net cash and cash equivalents at end of the yearC51,7956,178
The notes to the Group financial statements form an integral part of these financial statements
Accordant Group Limited (formerly AWF Madison Group Limited)
Statement of cashflows
For the year ended 31 March 2021
Accordant Group Limited (formerly AWF Madison Group Limited)
Statement of changes in equity
For the year ended 31 March 2021
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20213130ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
IN THIS SECTION
The notes to the financial statements include information
that is considered relevant and material to assist the reader
in understanding changes in Accordant Group Limited
(formerly AWF Madison Group Limited) and its controlled
entities (“the Group”) financial position or performance.
Information is considered relevant and material if:
• the amount is significant because of its size and nature;
• it is important for understanding the results of the Group;
• it helps explain changes in the Group’s business; or
• it relates to an aspect of the Group’s operations that is
important to future performance.
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 annual report. The principal services of the
Group are the supply of temporary staff, contractor resource
and recruitment of permanent staff.
On 19 October 2020 AWF Madison Group Limited changed
its name to Accordant Group Limited.
BASIS OF PREPARATION
These 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 New Zealand Generally Accepted
Accounting Practices in New Zealand (‘GAAP’). For the
purposes of complying with NZ GAAP the Group is a for
profit entity. They comply with New Zealand equivalents
to International Financial Reporting Standards (‘NZ IFRS’),
International Financial Reporting Standards (‘IFRS’) and
other applicable Financial Reporting Standards as
appropriate for profit-orientated entities;
• 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;
• on a going concern basis, which contemplates continuity of
normal business activities and 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 financial statements were authorised for issue by the
directors on 27 May 2021.
Adoption of new and revised Standards and Interpretations
New standards and amendments and interpretations to
existing standards that came into effect during the current
accounting period
All mandatory new standards and amendments and
interpretations to existing standards that came into effect
during the current accounting period have been adopted in
the current year. None of these have had a material impact
on the Group.
New standards and amendments and interpretations to
existing standards that are not yet effective for the current
accounting period
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 2021.
None of these new and amendments to standards and
interpretations have been early adopted by the Group in
preparing these financial statements or been identified
as having a material effect on the Group’s financial
statements in future.
OTHER ACCOUNTING POLICIES
Accounting policies that are relevant to an understanding of
the financial statements (other than those provided throughout
the notes to the financial statements) are set out below:
Fair value measurement
For financial reporting purposes, ‘fair value’ is the price that
would be received to sell an asset, or paid to transfer a liability,
in an orderly transaction between market participants (under
current market conditions) at the measurement date, regardless
of whether that price is directly observable or estimated using
another valuation technique.
When estimating the fair value of an asset or liability, the
entity uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
Inputs to valuation techniques used to measure fair value are
categorised into three levels according to the extent to which
the inputs are observable:
• Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity can
access at the measurement date.
• Level 2 inputs are inputs other than quoted prices included
within Level 1 that are observable for the asset or liability,
either directly or indirectly.
• Level 3 inputs are unobservable inputs for the asset
or liability.
Goods and services tax (GST)
All revenue and expense transactions and cashflows are
recorded exclusive of GST and other value added taxes.
Assets and liabilities are similarly stated exclusive of GST,
with the exception of receivables and payables, which are
stated with GST included.
Impairment of tangible and intangible assets
excluding goodwill
At the end of each reporting period, the Group reviews the
carrying amounts of its tangible (notes B1 and B2) and intangible
assets (note B3) to determine whether there is any indication
that those assets have suffered an impairment loss. If any
such indication exists (and at least annually for indefinite
life intangible assets) the recoverable amount of the asset
is estimated in order to determine the extent of the impairment
loss (if any).
The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. In assessing value in use,
the estimated cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific
to the asset for which the estimates of future cash flows have
not been adjusted.
If the recoverable amount of an asset is estimated to be less
than its carrying amount, the carrying amount of the asset
is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the
carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but the increased carrying
amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised
for the asset in prior periods. A reversal of an impairment loss
is recognised immediately in profit or loss.
Financial instruments
Financial assets and financial liabilities are recognised on
the Group’s Statement of Financial Position when the Group
becomes a party to the contractual provisions of the instrument.
All of the financial assets of the Group, which include trade
and other receivables (note C6), are classified as financial
assets at amortised cost.
The Group’s trade and other payables (note C8) and deferred
consideration (note F7) arising from business combinations are
classified as financial liabilities at amortised cost.
The Group’s contingent consideration amounts arising from
business combinations (note F7) are classified as a financial
liability at fair value through profit or loss. Contingent
consideration is categorised within Level 3 of the fair
value hierarchy.
Financial liabilities and equity instruments issued by the Group
are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial
liability and an equity instrument. An equity instrument is any
contract that evidences a residual interest in the assets of the
Group after deducting all of its liabilities.
Equity instruments
Ordinary share capital (note C2) is classified as equity
when there is no obligation to transfer cash or other assets.
Incremental costs directly attributable to the issue of new
shares are shown in equity as a deduction, net of tax, from
the proceeds.
Costs which are not directly attributable to the issue
of new shares are shown as an expense and included
in other operating expenses expenses in the Statement
of Comprehensive Income.
Government grants
Government grants are not recognised until there is reasonable
assurance that the Group will comply with the conditions
attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on
a systematic basis over the periods in which the Group
recognises as expenses the related costs for which the grants
are intended to compensate.
Government grants that are receivable as compensation for
expenses or losses already incurred or for the purpose of
giving immediate financial support to the Group with no future
related costs are recognised in profit or loss in the period in
which they become receivable.
Comparatives
Certain comparative amounts have been reclassified to
conform to the current year’s presentation to enhance the
disclosures for the users of the financial statements. Contractor
costs of $90.2m have been reclassified from employee
benefits expense and shown separately in the statement of
comprehensive income.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20213332ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
KEY JUDGEMENTS AND SOURCES OF
ESTIMATION UNCERTAINTY
In the process of applying the Group’s accounting policies
and the application of accounting standards, Management
are required to make a number of judgements, estimates
and assumptions about the carrying amounts of assets and
liabilities that are not readily available from other sources.
These estimates and associated assumptions are based
on historical experience and various other matters that are
considered to be appropriate under the circumstances.
Actual results may differ from these estimates.
Judgements and sources of estimation uncertainty that are
considered material to understand the performance of the
Group are found in the following notes:
Note – A2
Expectation of refund liabilities and rebates to customers.
Note – C6
Expected credit losses from trade and other receivables
Note – B3
Estimating the remaining useful lives of identifiable customer
relationships and restraint of trade assets and testing the
carrying value of brand assets.
Note – B4
Impairment testing of the carrying value of goodwill and
indefinite life intangible assets.
Note – F2
Rehabilitation under the ACC Partnership programme.
Note – F7
Estimation of the earn-out contingent consideration in
a business combination.
GLOBAL PANDEMIC OF CORONAVIRUS DISEASE 2019
The COVID-19 pandemic continues 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.
During the financial year Group eligible entities received
Government Grants totalling $35.6m (for 6,367 employees)
and repaid $2.3m (for 429 employees) under the initial
COVID-19 Wage Subsidy Scheme and the subsequent
Government Wage Subsidy Extension scheme. A net receipt
from Government grants of $33.3m. Refer Statement of
cashflows.
These grants supported the Group’s ability to retain personnel
and pay remuneration throughout New Zealand’s COVID19
Alert Levels 4 and 3. The government grants have been offset
against employee benefits expense in the statement of
comprehensive income. Refer note F1.
These financial statements have been prepared based upon
conditions existing at the end of the reporting period together
with subsequent events up to the date of the signing of these
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 financial statements.
This section explains the financial performance of the Group,
providing additional information about individual items in the
Statement of Comprehensive Income, including:
(a) accounting policies, judgements and estimates that are
relevant for understanding items recognised in revenue.
(b) analysis of the Group’s performance for the year by
reference to key areas including: performance by segment,
revenue, expenses and taxation.
A1 SEGMENT PERFORMANCE
The Chief Operating decision maker is the Group Chief Executive.
The Group has two defined Reporting Segments:
• AWF – Contingent Blue Collar Labour Hire associated
with infrastructure, logistics, manufacturing, technical
and construction.
• Madison Recruitment, Absolute IT and JacksonStone &
Partners – White Collar Contingent temporary employees
and contractors together with Permanent Recruitment
associated with professional and managerial positions
including technology and digital business sectors.
Within the White-Collar Reporting Segment are three (3)
operating segments:
• Madison Recruitment
• Absolute IT
• JacksonStone & Partners
These operating segments have been aggregated on the basis
that they have similar economic characteristics; the nature of
services offered, the processes and customers are substantially
the same, and strategic decisions are made in conformity over
all three brands.
The Group’s reportable segments have been identified
as follows:
• AWF
• Madison, Absolute IT and JacksonStone & Partners
The Corporate office function reported as ‘Central
administration costs and director fees’ provides governance,
compliance, audit, public accountability, Group Funding,
accounting, information technology, human resources, and
marketing expertise. Revenue derived is incidental to the Group
activities. The Corporate office function is not an operating
segment and is not part of one of the reportable segments.
These segments have been determined on the basis, of the
trading brands that operate under each; that discrete financial
information is available for these segments; and that their
operating results are regularly reviewed by the Group’s chief
operating decision maker.
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 June 2019) in major cities throughout
New Zealand. These brands derive their revenues from
temporary, contract and permanent staff services to commerce.
All revenues from external customers, and non-current
assets other than financial instruments, deferred tax assets,
post-employment benefit assets, and rights arising under
insurance contracts are attributed to the Group’s country
of domicile.
A. Financial Performance
IN THIS SECTION
Segment revenueSegment profit
2021202020212020
SEGMENT REVENUE AND RESULTS
$’000$’000$’000$’000
Continuing operations
AWF77,76297,44810,7821,692
Madison, Absolute IT and JacksonStone & Partners127,720166,0794,2357,156
Total for continuing operations205,482263,52715,0178,848
Other income–9
Central administration costs and directors fees(2,860)(2,876)
Finance costs(1,228)(2,084)
Profit/(loss) before tax10,9293,897
Income tax expense(4,732)(1,220)
Profit for the year6,1972,677
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20213534ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
Revenue reported above represents revenue generated from external customers. Inter-segment sales in the year were $175,485
(2020: $82,372) and have been eliminated from the above table. Inter-segment sales were eliminated from the originating segment.
No one customer accounts for more than 10% of the Group’s revenue (2020: No one customer accounts for more than 10% of the
Group’s revenue).
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.
20212020
SEGMENT ASSETS
$’000$’000
AWF27,41147,924
Madison, Absolute IT and JacksonStone & Partners61,76484,702
Total segment assets89,175132,626
Unallocated assets6822,643
Total assets89,857135,269
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.
20212020
SEGMENT LIABILITIES
$’000$’000
AWF10,50926,544
Madison, Absolute IT and JacksonStone & Partners19,21429,108
Total segment liabilities29,72355,652
Unallocated liabilities20,12545,883
Total liabilities49,848101,535
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.
OTHER SEGMENT INFORMATION
Depreciation and amortisationImpairment
2021202020212020
$’000$’000$’000$’000
AWF1,9642,041––
Madison, Absolute IT and JacksonStone & Partners3,3224,153––
Madison impairment––7,000–
Unallocated––––
Total5,2866,1947,000–
Non-current assetsNet additions to non-current assets
2021202020212020
$’000$’000$’000$’000
AWF16,51817,2101,4315,452
Madison, Absolute IT and JacksonStone & Partners48,09358,22419520,117
Unallocated–128–128
Total64,61175,5621,62625,697
Employee benefitsContractor costs
2021202020212020
$’000$’000$’000$’000
AWF60,32988,31652181
Madison, Absolute IT and JacksonStone & Partners30,31159,09478,58090,052
Unallocated1,5301,565––
Total92,170148,97578,63290,233
Employee benefits and contractor costs were aggregated in the prior year.
OTHER SEGMENT INFORMATION continued
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20213736ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
A2 REVENUE FROM CONTRACTS WITH CUSTOMERS
Accounting Policy
Revenue recognition from contracts with customers
Revenue is measured at the fair value of the consideration
received or receivable. Revenue is recognised once value
has been received by the customer, when the performance
obligations have been satisfied and control has transferred.
This is typically on successful placement of a candidate.
The transaction price is allocated to performance obligations
based on their relative standalone selling prices.
Revenue earned on temporary placement – over time
Revenue from temporary placements, represents amounts billed
from the supply of semi-skilled and skilled temporary staff,
including the wage cost of these staff is recognised when the
service has been provided. Revenue is recognised over time as
services are provided. Performance completed to date is based
on the number of hours worked.
The factors considered by Management on a contract by
contract basis when concluding the Group is acting as principal
rather than agent are as follows:
• Whether the customer has a direct relationship with
the Group;
• Whether the Group has the primary responsibility for
providing the services to the client, and engages and
contracts directly with the temporary worker or other
recruitment companies; and
• Whether the Group has latitude in establishing the rates
directly or indirectly with all parties.
Revenue earned on permanent placement – point in time
Revenue from permanent placements, represents amounts
billed from the placement of permanent candidates. Revenue
is typically based on a percentage of the candidate’s
remuneration package, this income being recognised at the
date an offer is accepted by a candidate and where a start date
has been determined.
In general, where a candidate fails to remain in the position for
greater than twelve weeks a guarantee is provided to replace
the candidate.
Revenue earned on a retained basis – point in time
Where the Group is engaged on a retainer basis, revenue
recognised is typically based on a percentage of candidate’s
remuneration package, this income being recognised on the
completion of defined stages of work. The defined stages
are: on confirmation of vacancy and after job briefing; on
presentation of shortlist; and candidate placement.
Revenue is recognised when the underlying performance
obligation is satisfied – the successful placement of
the candidate.
Revenue earned as other services are provided – point in time
Where the Group is engaged to provide payroll related services
to manage the administration of contractors sourced by its
customers directly, revenue is recognised when the underlying
performance obligation is satisfied – upon the provision of
services, charged at hourly or daily rates.
Where the Group is engaged to provide contractors, they are
covered by the Group’s indemnity insurance cover. A fee for this
indemnity insurance cover is recognised when the underlying
performance obligation is satisfied – upon the provision of
cover, charged at hourly rates.
Where the Group is engaged to provide other employee related
services, such as psychometric assessments, advertising and
candidate background checks, revenue is recognised when
the underlying performance obligation is satisfied – upon the
provision of services, charge at agreed rates.
Variable consideration
The Group pays customer rebates (for revenue from temporary
and permanent placement), provides credit notes and
warranties over the contract period for certain recruitment
services (for revenue on a retained basis). Revenue is
constrained to the extent that recognition would result in
a significant reversal of revenue. When the uncertainty is
resolved, the consideration is recognised.
Significant financing component
Payment is typically due within 30–60 days from the invoicing
of a contract. There is no significant financing component in any
of the Group’s contracts with customers.
GROUP
20212020
REVENUE FROM CONTRACTS WITH CUSTOMERS
$’000$’000
Revenue earned on temporary placements
– AWF76,79395,723
– Madison, Absolute IT and JacksonStone & Partners95,563125,907
Total revenue earned on temporary placements172,356221,630
Revenue earned on permanent placements
– AWF7371,642
– Madison, Absolute IT and JacksonStone & Partners5,3699,906
Total revenue earned on permanent placements6,10611,548
Revenue earned on a retained basis
– Madison, Absolute IT and JacksonStone & Partners4,3464,132
Total revenue earned on a retained basis4,3464,132
Other service revenue
– AWF23283
– Madison, Absolute IT and JacksonStone & Partners22,44226,134
Total other service revenue22,67426,217
Total revenue205,482263,527
KEY JUDGEMENTS AND ESTIMATES – DETERMINING THE TRANSACTION PRICE FOR REVENUE
FROM CONTRACTS WITH CUSTOMERS
Refund guarantees
For revenue on a retained basis, Management estimates the
expected refund guarantees to customers based on historical
experience of candidates leaving within the guarantee period.
The estimate is updated for key reporting periods. Refund
guarantees relate to the placement of individual candidates.
Rebates
Management estimates the expected rebates to customers
on inception of the contract based on past precedent and
future expected sales. The estimate is updated for key
reporting periods. Rebates relate to the placement of a
portfolio of candidates and the discount is applied to all
qualifying placements.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20213938ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
GROUP
20212020
CONTRACT ASSETS$’000$’000
Customers yet to be invoiced for services rendered18087
Less provision for impairment––
Total contract assets18087
Classified as:
Current18087
Non-current––
Total contract assets18087
EXPECTED LOSS FOR CONTRACT ASSETS
Management has reviewed and assessed contracts and the provision for impairment $Nil (2020: $Nil) represents the best estimate
of the expected credit losses based on historical credit loss experience adjusted to reflect current conditions and estimates of
future economic conditions.
CONTRACT ASSETS
Services rendered, invoice yet to send
Payment for services rendered (i.e revenue earned on temporary
placement – over time) are not due from the customer until
the Group has invoiced the customer. Contract assets are
balances due to be recovered from customers for work
performed, subject to acceptance conditions, that have yet
to be invoiced. When the customer is invoiced, any amounts
previously recognised as a contract asset are reclassified to
trade receivables. Contract assets amounts are invoiced within
30 days, with payment typically due within 30 to 37 days from
the invoice being issued. There is no significant financing
component in any of the Group’s contracts with customers.
Appropriate allowances for expected irrecoverable amounts
are recognised in profit and loss which are measured using
the simplified approach permitted by NZ IFRS 9
Financial
Instruments, which requires lifetime expected losses for
contract assets to be recognised from initial recognition of
the assets. The Group determines the expected credit losses
from contact assets in a manner consistent with the approach
described for trade and other receivables in note C6.
GROUP
20212020
REVENUE FROM CONTRACTS WITH CUSTOMERS BY CLIENT INDUSTRY CATEGORY$’000$’000
AWF revenue from contracts with customers
– Construction & civil37,65449,052
– Engineering & technical9,07510,123
– Manufacturing & logistics31,03338,273
Total AWF revenue from contracts with customers77,76297,448
Madison, Absolute IT, JacksonStone & Partners revenue from contracts with customers
– Administration & other services786879
– Arts & recreation services25384
– Construction and trades7571,138
– Education and training7771,750
– Financial and insurance services22,17318,346
– Government, defence and public safety82,228110,628
– Healthcare and social assistance4,2625,802
– Information technology2,8334,140
– Logistics (transport, postal & warehousing)3771,589
– Manufacturing1,3822,084
– Media & telecommunications6462,437
– Primary (agriculture, forestry, fishing, mining)2,5393,049
– Professional, scientific and technical services2,5233,281
– Property/rental and hiring services154307
– Retail trade & hospitality1,9313,427
– Utilities (electricity, gas, water, waste)3,0335,077
– Wholesale trade1,2941,761
Total Madison, Absolute IT, JacksonStone & Partners revenue from contracts with customers127,720166,079
Total revenue from contracts with customers205,482263,527
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20214140ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
GROUP
20212020
CONTRACT LIABILITIES$’000$’000
Guarantee refund liabilities11662
Rebate liabilities114140
Total contract liabilities230202
Classified as:
Current230202
Non-current––
Total contract liabilities230202
KEY JUDGEMENTS AND ESTIMATES – GUARANTEE AND REBATE LIABILITIES
Guarantee refund liabilities
Management has reviewed and assessed the historical
experience rate and the contract liabilities for refund guarantees
represents on a portfolio basis, the best estimate of expected
candidates leaving within the guarantee period.
Rebate liabilities
Management has reviewed and assessed the past precedent
and future expected sales for individual customers and the
contract liabilities for rebates that represent the best estimate
of expected rebates to customers. The estimate is updated for
key reporting periods.
A3 INVESTMENT REVENUE
Accounting Policy
Dividend and interest revenue is presented as investment
revenue in the statement of comprehensive income.
Dividend revenue
Dividend revenue from investments is recognised when the
shareholder’s right to receive payment has been established.
Interest revenue
Interest revenue is accrued on a time basis using the effective
interest method.
GROUP
20212020
INVESTMENT REVENUE$’000$’000
Investment revenue–9
Total investment revenue–9
A4 EXPENSES
GROUP
20212020
EXPECTED CREDIT LOSSNOTE$’000$’000
Impairment losses recognisedC6206123
Changes in the expected credit loss provision132132
Total expected credit losses338255
GROUP
20212020
DEPRECIATION AND AMORTISATION EXPENSENOTE$’000$’000
Depreciation of property, plant and equipmentB1990898
Depreciation of right of use assetsB22,7022,798
Amortisation of intangible assetsB31,5942,498
Total depreciation and amortisation expense5,2866,194
GROUP
20212020
IMPAIRMENT EXPENSENOTE$’000$’000
Intangible assets - GoodwillB47,000–
Total impairment expense7,000–
GROUP
20212020
FINANCE COSTS$’000$’000
Financial liabilities measured at amortised cost
Interest on bank overdrafts and loans7071,401
7071,401
Financial liabilities measured at fair value through profit or loss
Interest on contingent consideration16101
16101
Lease liabilities
Interest on lease liabilities505582
505582
Total finance costs1,2282,084
GROUP
20212020
AUDITOR’S REMUNERATION TO DELOITTE FOR:$’000$’000
Audit of the financial statements
Audit of the financial statements219224
Total auditor’s remuneration to Deloitte219224
CONTRACT LIABILITIES
Contract guarantees
For revenue on a retained basis, the Group’s standard contract
terms for under permanent placement revenue contracts,
includes a guarantee that the candidate placed will remain in
the role for more than 12 weeks. If the candidate does not
remain in the role for more than 12 weeks, the Group will
endeavour to replace the candidate with another individual at
no further cost to the customer. If the Group is unable to replace
the candidate then the customer is entitled to a credit against
the customer’s account.
Upon placement, a refund liability is recognised with a
corresponding adjustment to revenue. This refund liability is
measured using a rate derived utilising the Group’s historical
experience of candidates who have left before 12 weeks.
This historical experience rate is measured using the portfolio
approach permitted by NZ IFRS 15 Revenue from Contract
with Customers. This estimate is updated regularly at each
reporting period.
Contract rebates
For revenue from temporary and permanent placements,
under the Group’s contract terms with certain customers,
a rebate is payable/applied to customers based on agreed
percentages of amounts billed over a specified period.
These agreed percentages can either be a single fixed rate or
incremental based on thresholds.
At the beginning of the specified period, a rebate liability is
recognised with a corresponding adjustment to revenue.
This rebate liability is measured using a rate derived utilising
the Group’s expectation of the amounts to be billed to the
customer over the specified period. This expectation is based
on historical experience with the customer adjusted to reflect
forecast estimates of the placements required by the customer
over the specified period.
This estimate is updated regularly at each reporting period.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20214342ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
A5 TAXATION
Accounting Policy – current tax
1 Income tax expense represents the sum of the tax currently
payable and deferred tax.
2 Taxable profit differs from profit before tax reported in
the income statement as it excludes items of income and
expense that are taxable or deductible in other years and
also excludes items that will never be taxable or deductible.
3 Current and deferred tax are recognised as an expense or
income in profit or loss, except when they relate to items
recognised in other comprehensive income or directly in
equity, in which case the tax is also recognised in other
comprehensive income or directly in equity, or where they
arise from the initial accounting for a business combination.
In the case of a business combination, the tax effect is
taken into account in calculating goodwill or in determining
the excess of the acquirer’s interest in the net fair value of
the acquiree’s identifiable assets, liabilities and contingent
liabilities over the cost of the business combination.
4 Income tax expense is the income assessed on taxable profit
for the year.
5 Current tax liabilities are calculated using tax rates that
have been enacted at balance date, being 28% (2020: 28%)
for New Zealand.
GROUP
20212020
INCOME TAX EXPENSE
$’000$’000
Current tax
In respect of current year5,5671,747
In respect of prior year(132)107
5,4351,854
Deferred tax
In respect of current year(857)(498)
In respect of prior year154(136)
(703)(634)
Total tax expense4,7321,220
Reconciliation to profit before tax
Profit before income tax10,9293,897
Income tax at 28%3,0601,091
Tax effect of expenses that are not deductible in determining taxable profit1,672129
Income tax expense4,7321,220
Effective tax rate for the year43.3%31.3%
GROUP
20212020
CURRENT TAX ASSETS AND LIABILITIES
$’000$’000
Current tax liabilities
Income tax payable1,829950
Total current tax liabilities1,829950
Accounting Policy – deferred tax
1 Deferred tax is recognised on differences between the
carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the
computation of taxable profit, and is accounted for using
the balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised. Such
assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition
(other than in a business combination) of other assets and
liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
2 Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries, except
where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
3 The carrying amount of deferred tax assets is reviewed at
each balance sheet date and reduced to the extent that it
is no longer probable that sufficient taxable profits will be
available to allow all or part of the assets to be recovered.
4 Deferred tax is calculated at the tax rates that are expected
to apply in the period when the liability is settled or the
asset realised based on tax rates that have been enacted or
substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the
manner in which the Group expects, at the reporting date,
to recover or settle the carrying amounts of its assets
and liabilities.
5 Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes
levied by the same taxation authority and the Group intends
to settle its current tax assets and liabilities on a net basis.
DEFERRED TAX BALANCES
The following are the major deferred tax assets/(liabilities) recognised by the Group, and the movements thereon, during the
current reporting period:
GROUP
Right of use
assets
Lease
liabilities
Employee
benefits
Other
provisions
Identifiable
intangible
assetsTotal
$’000$’000$’000$’000$’000$’000
At 1 April 2019––1,116174(3,752)(2,462)
Prior period adjustment––165(33)4136
Business combination––––(1,294)(1,294)
Charge (credit to profit or loss for the year)3,147(3,046)(304)(79)780498
As at 31 March 20203,147(3,046)97762(4,262)(3,122)
Prior period adjustment––150(304)–(154)
Charge (credit to profit or loss for the year)(582)643(56)469383857
As at 31 March 20212,565(2,403)1,071227(3,879)(2,419)
GROUP
20212020
IMPUTATION BALANCES
$’000$’000
Imputation credits available for subsequent reporting periods at 28%13,60010,108
The above amounts represent the balance of the imputation account as at the end of the reporting period at 28%, adjusted for:
• Imputation credits that will arise from the payment of the amount of the provision for income tax; and
• Imputation debits that have arisen from the payment of dividends recognised as a liability at the reporting date.
The consolidated amounts include imputation credits that would be available to the parent entity if subsidiaries paid dividends.
The imputed portions of the final dividends recommended after reporting date will be imputed out of existing imputation credits
or out of imputation credits arising from the payment of income tax in the next reporting period.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20214544ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
The following diminishing value rates are used for the depreciation of property, plant and equipment
• Motor vehicles 25 to 36%
• Fixtures and equipment 10 to 60%
• Leasehold improvements 4 to 14%
GROUP
Motor
Vehicles
Fixtures and
equipment
Leasehold
ImprovementsTotal
NOTE$’000$’000$’000$’000
Cost5284,9451,8307,303
Less accumulated depreciation(377)(3,269)(619)(4,265)
Net book value at 1 April 20191511,6761,2113,038
Additions100592207899
Business combinations–151183334
Disposals – cost(121)(420)(183)(724)
Depreciation expenseA4(63)(702)(133)(898)
Eliminations on disposal – depreciation9934798544
Net book value at 31 March 20201661,6441,3833,193
Additions1,275133161,424
Disposals – cost(243)(1,068)(170)(1,481)
Depreciation expenseA4(155)(496)(339)(990)
Eliminations on disposal – depreciation2181,0241041,346
Net book value at 31 March 20211,2611,2379943,492
Cost1,5384,6291,9508,117
Less accumulated depreciation(277)(3,392)(956)(4,625)
Net book value at 31 March 20211,2611,2379943,492
B. Assets used to generate income
This section shows the assets the Group uses to generate
operating income. In this section of the notes there is
information about:
In this section there is information about:
(a) property, plant and equipment
(b) intangible assets
(c) goodwill
B1 PROPERTY, PLANT AND EQUIPMENT
Accounting policy
1 Fixtures and equipment, motor vehicles and leasehold
improvements are stated at cost less accumulated
depreciation and any accumulated impairment losses.
2 Depreciation is charged so as to write off the cost of assets,
over their estimated useful lives using the diminishing
value method.
3 The gain or loss arising on the disposal or retirement of an
item of property, plant and equipment is determined as the
difference between the sales proceeds and the carrying
amount of the asset and is recognised in the Statement of
Comprehensive Income.
IN THIS SECTION
B2 LEASES
RIGHT OF USE ASSETS AND LEASES LIABILITIES
Accounting policy
1 The Group leases various properties (including offices),
motor vehicles and computer equipment. Property lease
contracts are typically made for fixed periods of 3 to 9 years
but may have extension options as described below. Motor
vehicle and computer equipment leases are typically made
for fixed periods of 1 to 5 years without extension options.
Lease terms are negotiated on an individual basis and contain
a wide range of different terms and conditions. The lease
agreements do not impose any covenants, but leased assets
may not be used as security for borrowing purposes.
2 Leases are recognised as a right-of-use (‘ROU’) asset and a
lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, and
subsequently at cost less any accumulated depreciation and
impairment losses, and adjusted for certain re-measurements
of the lease liability.
Costs included in the measurement of the right-of-use asset
comprise the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the
commencement date; less any lease incentives received;
and
• any initial direct costs incurred by the lessee.
Depreciation is charged so as to write off the cost of assets,
over the lease term using the straight-line method where
shorter than the useful life of the right of use asset.
3 The lease liability is initially measured at the present value
of the future lease payments over the lease term that are
not paid at the commencement date, discounted using the
interest rate implicit in the lease or, if that rate cannot be
readily determined, the lessee’s incremental borrowing
rate, being the rate that the lessee would have to pay to
borrow over a similar term, and with a similar security, the
funds necessary to obtain an asset of a similar value to the
right-of-use asset in a similar economic environment with
similar terms and conditions.
Generally, the Group uses the lessee’s incremental
borrowing rate as the discount rate.
Lease payments included in the measurement of the lease
liability comprise the following:
• the exercise price under a purchase option that the
Group is reasonably certain to exercise that option; and
• lease payments in an optional renewal period if the Group
is reasonably certain to exercise an extension option.
There are no leases with variable lease payments which
depend on an index or rate as at the commencement date.
The lease liability is measured at amortised cost using the
effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an
index or rate, if there is a change in the Group’s estimate of
the amount expected to be payable under a residual value
guarantee, if the Group changes its assessment of whether
it will exercise a purchase, extension or termination option
or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount
of the right-of-use asset, or is recorded in profit or loss if the
carrying amount of the right-of-use asset has been reduced
to zero.
None of the Group’s leases include variable lease payments
that depend on an index or a rate.
4 The Group has elected not to recognise right-of-use assets
and lease liabilities for short-term leases that have lease
terms of 12 months or less and leases of low value assets.
The Group recognises the lease payments associated with
these leases within operating expenses on a straight line
basis over their lease terms.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20214746ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
KEY JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY
Extension and termination options
Extension and termination options are included in a
number of leases across the Group. These terms are used to
maximise operational flexibility in terms of managing contracts.
The majority of extension and termination options held are
exercisable only by the Group and not by the respective lessor.
Critical judgements in determining the lease term
In determining the lease term, management considers
all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a
termination option.
Extension options (or periods after termination options) are
only included in the lease term if the lease is reasonably certain
to be extended (or not terminated).
The assessment is reviewed if a significant event or a significant
change in circumstances occurs which affects this assessment
and that is within the control of the lessee.
The following factors are normally the most relevant:
• If there are significant penalties to terminate (or not extend),
the Group is typically reasonably certain to extend (or
not terminate).
• If any leasehold improvements are expected to have a
significant remaining value, the Group is typically reasonably
certain to extend (or not terminate).
• Otherwise, the Group considers other factors including
historical lease durations and the costs and business
disruption required to replace the leased asset.
Incremental borrowing rates
The lease payments are discounted using the interest rate
implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases in the Group, the lessee’s
incremental borrowing rate is used, being the rate that the
individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use
asset in a similar economic environment with similar terms,
security and conditions.
Critical judgements in determining the incremental
borrowing rate
To determine the incremental borrowing rate, the Group:
• where possible, uses recent third-party financing (currently,
the Group’s sole term facility provider, ASB Bank Limited)
received by the individual lessee as a starting point, adjusted
to reflect changes in financing conditions since third party
financing was received;
• uses a build-up approach that starts with a risk-free
interest rate adjusted for credit risk for leases held by
Group subsidiaries, which does not have recent third party
financing; and
• makes adjustments specific to the lease, e.g. term, location,
and security.
GROUP
PropertyMotor vehicles
Computer
EquipmentTotal
RIGHT OF USE ASSETS
NOTE$’000$’000$’000$’000
Cost10,248810–11,058
Less accumulated depreciation––––
Net book value at 1 April 201910,248810–11,058
Additions1,919–231,942
Business combinations905––905
Depreciation expenseA4(2,324)(468)(6)(2,798)
Net book value at 31 March 202010,7483421711,107
Additions/lease liability re-
measurements
192––192
Disposals – cost(338)(350)–(688)
Depreciation expenseA4(2,437)(257)(8)(2,702)
Eliminations on disposal – depreciation311350–661
Net book value at 31 March 20218,4768598,570
Cost12,9264602313,409
Less accumulated depreciation(4,450)(375)(14)(4,839)
Net book value at 31 March 20218,4768598,570
GROUP
20212020
LEASE LIABILITIES$’000$’000
Property9,16111,241
Motor vehicle85342
Computer equipment916
Total lease liabilities9,25511,599
Classified as:
Current2,2642,501
Non-current6,9919,098
Total lease liabilities9,25511,599
Maturity analysis – contractual undiscounted cashflows:
Less than 1 year2,6612,818
Later than 1 year and not later than 5 years inclusive7,1628,818
More than 5 years4761,377
Total undiscounted lease liabilities 31 March10,29913,013
Amounts recognised in Statement of Comprehensive Income:
Interest on lease liabilities(505)(582)
Expenses relating to short term leases(362)(122)
Total amounts recognised in Statement of Comprehensive Income(867)(704)
Cash outflows recognised in the Statement of Cashflows:
Recognised within cash flows from operating activities
Interest elements of lease payments(505)(582)
Total recognised within cash flows from operating activities(505)(582)
Recognised within cash flows from financing activities
Principal elements of lease payments(2,481)(2,439)
Total recognised within cash flows from financing activities(2,481)(2,439)
Total cash outflows recognised in the Statement of Cashflows(2,986)(3,021)
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20214948ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
B3 INTANGIBLE ASSETS
Accounting policy
1 Intangible assets acquired in a business combination are
identified and recognised separately from goodwill where
they satisfy the definition of an intangible asset and their fair
values can be measured reliably. The cost of such intangible
assets is their fair value at the acquisition date.
2 Intangible assets acquired separately with finite useful
lives are carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation is recognised
on a straight-line basis over their estimated useful lives
(72 months). The estimated useful life and amortisation
method are reviewed at the end of each reporting period,
with the effect of any changes in estimate being accounted
for on a prospective basis.
3 Intangible assets acquired separately with indefinite useful
lives are not amortised and are reviewed for impairment
on an annual basis and whenever there is an indication that
the asset may be impaired as per NZ IAS 36 Impairment of
Assets (refer also B4).
Other intangible assets (excluding goodwill) represent the value of client relationships, brand names and restraints of trade acquired
through business combinations (where the economic value can reliably be assessed) and computer software.
GROUP
Computer
Software
Customer
Relationships
Brand
Name
Restraint
of TradeTotal
NOTE$’000$’000$’000$’000$’000
Cost2,57613,5669,4461,30426,892
Less accumulated amortisation(1,390)(10,827)–(746)(12,963)
Net book value at 1 April 20191,1862,7399,44655813,929
Additions143–––143
Business combinations–2,1851,0291,4064,620
Disposals – cost(1)–––(1)
Amortisation expenseA4(356)(1,665)–(477)(2,498)
Eliminations on disposal – amortisation1–––1
Net book value at 31 March 20209733,25910,4751,48716,194
Additions10–––10
Disposals – cost(246)(1)––(247)
Amortisation expenseA4(228)(874)–(492)(1,594)
Eliminations on disposal – amortisation118–––118
Net book value at 31 March 20216272,38410,47599514,481
Cost2,48215,75010,4752,71031,417
Less accumulated amortisation(1,855)(13,366)–(1,715)(16,936)
Net book value at 31 March 20216272,38410,47599514,481
The amortisation expense has been included in the line item
“depreciation and amortisation expense” in the Statement of
Comprehensive Income.
Brand names of:
• $7.465 million identified and recognised from the Madison
acquisition are allocated to the Madison Group cash
generating unit; and
• $1.980 million identified and recognised from the Absolute
IT acquisition are allocated to the Absolute IT cash
generating unit.
• $1.030 million identified and recognised from the
JacksonStone & Partners acquisition are allocated to the
JacksonStone & Partners cash generating unit.
KEY JUDGEMENTS AND SOURCES OF
ESTIMATION UNCERTAINTY
Brand assets are indefinite life non-financial assets. Determining
whether brand assets are impaired requires an estimation of the
value in use of the cash generating unit to which brand relates
to. The impairment testing of brand is undertaken in conjunction
with the impairment testing of goodwill related to the cash
generating unit (refer to note B4 for further information).
The impairment assessment of customer relationships and
restraint of trade assets requires a judgement and estimation
of the expected remaining useful life of these assets.
B4 GOODWILL
Accounting policy
Goodwill arising on the acquisition of a subsidiary is recognised
as an asset at the date that control is acquired (the acquisition
date). Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non-controlling
interest in the acquiree and the fair value of the acquirer’s
previously held equity interest (if any) in the acquiree over the
fair value of the identified net assets recognised.
Goodwill is not amortised, but is reviewed for impairment at
least annually. For the purpose of impairment testing, goodwill is
allocated to each of the Group’s cash generating units (‘CGUs’)
expected to benefit from the synergies of the combination.
Cash generating units to which goodwill and indefinite life
intangible assets have been allocated are tested for impairment
annually, or more frequently when there is an indication that the
unit may be impaired. The recoverable amount is the higher of
fair value less cost to sell and the value in use. If the recoverable
amount of the cash generating unit is less than the carrying
amount of the unit, the impairment loss is allocated first to
reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rata on the basis of
the carrying amount of each asset in the unit. Any impairment
loss on goodwill is recognised immediately in profit or loss and
is not subsequently reversed.
GROUP
20212020
$’000$’000
Balance at 1 April45,06839,271
Impairment – Madison Recruitment(7,000)–
Business combinations – JacksonStone & Partners–5,797
Balance as at 31 March38,06845,068
Allocation to cash generating units
• AWF11,21211,212
• Madison Recruitment13,22320,223
• Absolute IT7,8367,836
• JacksonStone & Partners5,7975,797
Total goodwill38,06845,068
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20215150ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
Annual test for impairment
The Group tests goodwill and other indefinite life intangible
assets annually for impairment or more frequently if there
are indications that goodwill might be impaired.
The recoverable amount of each cash generating unit is
determined from value in use calculations which use a
discounted cash flow analysis. The key assumptions for the
value in use calculations are those regarding the discount rates,
growth rates and forecast financial performance. Management
estimates discount rates using rates that reflect current market
assumptions of the time value of money and risk specific
to the cash generating units. The growth rates are based on
management’s best estimate. Forecast revenues, direct and
indirect costs, are based on historical experience /
past practices and expectation of future changes in the
markets the Group operates and services.
Impairment testing of goodwill and other intangible assets is
an area where estimates and judgments have a significant risk
of causing a material adjustment to the carrying amount of
the Group’s goodwill and other indefinite life intangible asset
balances.
When there is an impairment, i.e., the recoverable amount of
the cash generating unit is less than the carrying amount of the
unit, the impairment loss is allocated first to reduce the carrying
value amount of any goodwill allocated to the cash generating
unit and thereafter, pro rata against the carrying value of other
assets (including intangible assets and net assets).
The value in use calculations use post-tax cash flow projections
over a 5- year period based on FY22 financial budgets prepared
by management and approved by the Board.
AWF, Absolute IT and JacksonStone & Partners
Key assumptions used for the value in use calculations included:
• Sales growth – 1.5% (2020: 1.5%) Average annual growth over
financial years 2023 – 2026 based on past performance,
management’s expectations of market development, current
industry trends and including long-term inflation forecasts.
• Terminal year sales growth – Starting Financial Year 2027
the impairment models assume a constant growth rate of
1.5%. (2020: 1.5%)
• The discount rate used to discount the forecast cash flows
is 8.78% (2020: 9.14%).
Madison Recruitment
The Madison Recruitment CGU is sensitive to changes in
financial performance assumptions. The impact of the COVID-19
pandemic has been more pronounced on Madison Recruitment
with a slower rate of recovery to pre-COVID-19 financial
performance. New Zealand’s border restrictions have impinged
on Madison’s temporary candidate pool and contracted the size
of the temporary job market.
As a result, at 30 September 2020 the group undertook
an impairment test to the CGU and a $7.0m impairment
was recorded.
Management and the Board are confident that the temporary
job market will return to pre-Covid profitability. Madison
Recruitment specialises in entry level to mid-level white collar
roles. COVID-19 initially caused clients to consider and curtail
their requirements for permanent administrative staff, which
significantly impacted Madison’s job flow.
Madison Recruitment has applied an accelerated rate of Sales
growth over FY23 & 24 off a low FY22 Budget, returning to
pre-covid profitability in 2025 with sales growth of 1.5% (2020:
1.5%) thereafter.
The terminal year sales growth starting Financial Year 2027
assumes a constant growth rate of 1.5% (2020: 1.5%).
The discount rate used to discount the forecast cash flows is
8.78% (2020: 9.14).
Sensitivity Analysis
At year end, in testing goodwill for further impairment,
a sensitivity analysis for reasonably possible changes in key
assumptions was performed.
The sensitivity assumptions across all four CGU’s included
reducing the estimated growth rate by 0.5%, reducing the
terminal rate of growth by 1.0% and increasing the discount
rate by 1.0%.
These reasonably possible changes do not result in any
impairment for AWF, Absolute IT and JacksonStone &
Partners; or any additional impairment above the $7.0m
write down for Madison Recruitment.
KEY JUDGEMENTS AND SOURCES OF
ESTIMATION UNCERTAINTY
Determining whether goodwill is impaired requires an
estimation of the value-in-use of the group of cash generating
units to which goodwill has been allocated. The value-in-use
calculation requires Management to estimate the future cash
flows expected to arise from those cash-generating units and
a suitable discount rate in order to calculate present value.
The discount rate applied to future cashflows has been
obtained through an independent assessment of Group’s
weighted average cost of capital which takes in to consideration
a risk-free rate based on New Zealand Government Bonds,
a market risk premium and an equity beta based a selection
of comparable recruitment companies.
This section explains the Group’s reserves and working capital.
In this section there is information about:
(a) equity and dividends
(b) net debt; and
(c) receivables and payables
C. Managing funding
IN THIS SECTION
C1 RETAINED EARNINGS
GROUP
20212020
RETAINED EARNINGS AND DIVIDENDS
NOTE$’000$’000
Opening balance at 1 April2,5365,111
Total comprehensive income for the year6,1972,677
Dividends paidC4–(5,581)
Stock appreciation rights modifiedF1–329
Restricted share scheme options expiredF1162–
CEO incentive plan share options lapsedF142–
Closing balance at 31 March8,9372,536
C2 SHARE CAPITAL
GROUP
2021202020212020
ORDINARY SHARE CAPITAL
No of SharesNo of Shares$’000$’000
Issued and fully paid:
Opening balance at 1 April34,325,54233,423,39930,86829,165
Issue of shares–902,143–1,703
Closing balance at 31 March34,325,54234,325,54230,86830,868
The share capital reflected in the following note represents the ordinary share capital of Accordant Group Limited
(formerly AWF Madison Group Limited).
All ordinary shares carry rights to dividends and distribution on wind-up.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20215352ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
C3 EARNINGS PER SHARE
GROUP
20212020
EARNINGS PER SHARE
NOTE$’000$’000
Comprehensive income for the year net of tax6,1972,677
Number of ordinary shares as at 31 MarchC234,325,54234,325,542
Weighted average number of shares for basic earnings per share34,325,54233,910,542
Total basic earnings per share (cents per share)18.17. 9
Weighted average number of shares for diluted earnings per share34,325,54233,910,542
Total diluted earnings per share (cents per share)18.17. 9
The restricted shares detailed in Note F1 could also potentially dilute earnings per share in the future, but currently are anti-dilutive
(2020 were anti-dilutive).
C4 DIVIDENDS
Accounting policy
Dividend distributions to the Group’s shareholders are recognised as a liability in the Group’s financial statements in the period in
which the dividends are approved.
GROUP
20212020
Cents per shareTotal $’000Cents per shareTotal $’000
Recognised amounts:
Prior year final dividend––8.202,806
Interim dividend––8.002,775
–5,581
Final dividend declared8.202,886––
Dividends
Prior year final dividend
On 8 June 2020 the directors resolved not to declare a
final dividend for the year ended 31 March 2020 due to the
economic uncertainty caused by the COVID-19 pandemic.
Current year interim dividend
On 28 October 2020 the directors resolved not to declare
an interim dividend for the year ended 31 March 2021
due to the on-going economic uncertainty caused by the
COVID-19 pandemic.
Subsequent event
On 27 May 2021 the directors resolved to resume distributions
of dividends and approved the payment of a fully imputed
final dividend of 8.2 cents per share (total dividend $2,886,116)
to be paid on 30 June 2021 to all shareholders registered
on 20 June 2021. The dividend reinvestment plan will not
participate in this distribution.
C5 CASH AND CASH EQUIVALENTS
Accounting policy
Cash and cash equivalents
Cash and cash equivalents comprise of cash held by the
Group and short-term bank deposits with an original maturity
of less than three months. The carrying amount of these
assets approximates their fair value.
For the purpose of the statement of cash flows, cash and cash
equivalents include cash on hand and in banks and investments
in money market instruments, net of outstanding bank
overdrafts.
Statement of cash flows
The following terms are used in the Group’s statement of
cash flows:
• Operating activities are the principal revenue producing
activities of the Group and other activities that are not
investing or financing activities;
• Investing activities are the acquisition and disposal of
long term assets and other investments not included in
cash equivalents; and
• Financing activities are activities that result in changes in
the size and composition of the contributed equity and
borrowings of the entity.
Interest paid and interest received may be classified as
operating cash flows because they enter into the determination
of profit or loss.
Cash payments for the interest portion of a financial liability
or lease liability, have been classified as part of operating
activities and cash payments for the principal portion for
financial liability or lease liability, have been classified as part
of financing activities.
Interest received on cash at bank have been classified as
part of operating activities.
GROUP
20212020
CASH AND CASH EQUIVALENTS
$’000$’000
Cash at bank1,7956,178
Total cash and cash equivalents1,7956,178
GROUP
RECONCILIATION OF NET PROFIT AFTER TAX
TO CASH FLOWS FROM OPERATING ACTIVITIES
20212020
$’000$’000
Net profit after income tax6,1972,677
Adjustments for operating activities non-cash items:
Depreciation and amortisation5,2866,194
Impairment7,000–
(Gain)/Loss on disposal of property, plant and equipment and intangible assets38120
Movement in expected credit loss provision338255
Movement in deferred tax(702)(633)
Equity-settled share-based payments78114
Interest on contingent consideration to the vendor of JacksonStone & Partners16101
Fair value movement on contingent consideration to the vendor of JacksonStone & Partners(1,285)–
Total non-cash items10,7696,151
Movements in working capital excluding movements relating to purchase of subsidiaries:
(Increase)/decrease in trade and other receivables, and contract assets29,794(17,997)
Increase/(decrease) in trade and other payables, and contract liabilities(25,953)18,626
Increase/(decrease) in provisions211(52)
Increase/(decrease) in taxation payable879484
Total movement in working capital4,9311,061
Cash flow from operating activities21,8979,889
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20215554ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
C6 TRADE AND OTHER RECEIVABLES
Accounting policy
Trade and other receivables are measured on initial recognition
at fair value and subsequently at amortised cost using the
effective interest method.
Appropriate allowances for expected irrecoverable amounts
are recognised in profit and loss which are measured using
the simplified approach permitted by NZ IFRS 9
Financial
Instruments
, which requires lifetime expected losses for trade
and other receivables to be recognised from initial recognition
of the receivable.
There are no trade and other receivables with a significant
financing component.
The Group determines the expected credit losses
by calculating:
• a probability weighted amount that is determined by
evaluating a range of possible outcomes;
• time value of money;
• reasonable and supportable information that is available
at the reporting date about past events, current conditions
and forecasts of future economic conditions.
When reassessing expected credit losses the Group also
considers any change in the credit risk and quality of the
receivable from the date credit was initially granted up to the
end of the reporting period, referring to past default experience
of the counterparty and an analysis of the counterparty’s
current financial position.
The Group determines the expected credit losses for all trade receivables and other receivables (including those that are past
due and neither past due) by using a provision matrix, estimated based on historical credit loss experience based on shared credit
risk characteristics and the days past due status of the debtors. The expected loss rates are based on the payment profiles of sales
over a period of 60 months. The historical loss rates are adjusted to reflect current conditions and estimates of future economic
conditions affecting the ability of the debtors to repay the receivables.
An allowance of $493,000 (2020: $361,000) has been made for expected credit losses arising from trade and other receivables.
Before accepting a new customer, the Group conducts reference checks using external sources. Customer checks and approval
of credit limits are performed independently of the sales function, and are reviewed on an ongoing basis.
The credit period on sale of services is between 7 and 30 days, unless otherwise agreed. No interest is charged on trade
receivables for the first 30 days from the date of invoice. Thereafter, interest can be charged at 1.5 per cent per month on the
outstanding balance.
Included in trade receivables are debtors with a carrying value of $2.9 million (2020: $5.6 million) which are overdue at the reporting
date. Included in other receivables are debtors with a carrying value of $Nil (2020: $Nil) which are overdue at the reporting date.
The Group does not hold any collateral over these balances.
The Group writes off a receivable when there is information indicating that the debt is in severe financial difficulty and there is
no realistic prospect of recovery, e.g. when the debtors has been placed under receivership or liquidation, or has entered into
bankruptcy proceedings. NZ IFRS 9 includes a rebuttal presumption that a loss event has occurred if debtors are aged greater than
90 days. Impairment losses on trade and other receivables are presented as ‘direct expenses’ in the Statement of Comprehensive
Income. Any revisions to this amount are credited to the same line item.
GROUP
20212020
TRADE AND OTHER RECEIVABLES
$’000$’000
Trade receivables22,96129,984
Provision for expected credit loss(493)(361)
Total trade receivables22,46829,623
Other receivables8031,533
Grant income receivable–22,286
Total other receivables80323,819
Total trade and other receivables23,27153,442
GROUP
20212020
PROVISION FOR IMPAIRMENT
NOTE$’000$’000
PROVISION FOR EXPECTED CREDIT LOSS FOR TRADE RECEIVABLES
Balance at 1 April361229
Impairment losses recognised342301
Write-offs to bad debts during the yearA4(205)(123)
Impairment losses reversed(5)(46)
Balance at 31 March493361
GROUP
EXPECTED LOSS RATES FOR TRADE RECEIVABLESCurrent
1 – 30
days
30 – 60
days
60 – 90
days
90+
daysTotal
31 March 2021
Expected loss rate (%)0.9%1.0%22.2%41.1%35.4%2.5%
Gross trade receivables ($’000)20,0441,82927519362022,961
Provision for impairment of trade receivables ($’000)(164)(16)(53)(69)(191)(493)
Net trade receivables19,8801,81322212442922,468
31 March 2020
Expected loss rate (%)0.0%0.1%6.4%15.4%64.9%1.2%
Gross trade receivables ($’000)24,3594,29659231841929,984
Provision for impairment of trade receivables ($’000)–(2)(38)(49)(272)(361)
Net trade receivables24,3594,29455426914729,623
EXPECTED LOSS FOR OTHER RECEIVABLES
Management has reviewed and assessed other receivables and the provision for impairment $Nil (2020: $Nil) represents
the best estimate of the expected credit losses based on historical credit loss experience adjusted to reflect current conditions
and estimates of future economic conditions. The expected loss rate (%) is calculated on a GST inclusive basis.
Other information about customers
The Group has no customers making up more than 10% of
the 2021 Group revenue (2020: none).
The concentration of credit risk is limited due to the size
of the customer base.
KEY JUDGEMENTS AND ESTIMATES –
EXPECTED CREDIT LOSSES FROM RECEIVABLES
Management has reviewed and assessed debtors on
a branch-by-branch basis and the provision for impairment
represents the best estimate of the expected credit losses
based on historical credit loss experience adjusted to
reflect current conditions and estimates of future
economic conditions.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20215756ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
C7 BORROWINGS
GROUP
20212020
BORROWINGS
$’000$’000
Bank loans15,00036,000
Total borrowings15,00036,000
Classified as:
Current––
Non-current15,00036,000
Total bank loans15,00036,000
Summary of borrowing arrangements
The Group has a term loan facility of $30.0 million (2020: $36 million) with ASB Bank Limited of which $15.0 million was drawn as
at 31 March 2021 (2020: $36 million). The loan facilities are secured by first ranking General Security Deed with cross guarantees
and indemnities executed by all Group entities (refer note E1). The banking facilities require the Group to operate within defined
financial undertakings. The Group has complied with all covenant requirements during the year. Interest is calculated on a floating
rate and the annual weighted average rate is 2.21% (2020: 3.13%). The rate is reset every three months. The loan is an interest only
loan and is repayable on 1 October 2022 (2020: 1 October 2021). As at 31 March 2021, the Group has an available overdraft facility
of $8.0 million (2020: $12.0 million) with ASB Bank Limited, at an interest rate of 4.04% (2020: 4.33%). The balance of the overdraft
was $Nil as at 31 March 2021 (2020: $Nil) and cash at bank was $1.795 million at 31 March 2021 (2020: $6.178 million).
Reconciliation of liabilities arising from financing activities
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash
changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in
the Group’s statement of cash flows as cash flows from financing activities::
GROUP
Opening balance
1 April
Financing
cash flows
Non-cash
changes
Closing balance
31 March
NOTE$’000$’000$’000$’000
For the year ended 31 March 2021
Borrowings
Bank loans – ASB Bank Limited
(i)
C736,000(21,000)–15,000
Other financial liabilities from financing activities
Lease liabilities
(ii)
11,599(2,481)1379,255
Total47,599(23,481)13724,255
For the year ended 31 March 2020
Borrowings
Bank loans – ASB Bank Limited
(i)
C733,0003,000–36,000
Lease liabilities
(ii)
–(2,439)14,03811,599
Total33,00056114,03847,599
(i) The cash flows make up the net amount of proceeds/(payment) from borrowings, repayments of borrowings and repayment of other financial
liabilities in the statement of cash flows.
(ii) Non-cash changes comprise new leases entered into during the year of $125,000 and remeasurement of existing leases during the year of $12,000
(2020: the restated opening balance for lease liabilities of $11.058m, plus new leases entered into during the year of $1.942m, plus lease liabilities
arising on the acquisition of JacksonStone & Partners of $0.905m).
C8 TRADE AND OTHER PAYABLES
Accounting policy
Trade and other payables are initially measured at fair value,
and subsequently measured at amortised cost, using the
effective interest rate method.
Income, expenses, assets and liabilities are recognised net of
goods and services tax (“GST”), except:
• where the amount of GST incurred is not recoverable from
the taxation authority, it is recognised as part of the cost of
acquisition of an asset or as part of an item of expense; or
• for receivables and payables which are recognised inclusive
of GST where invoiced.
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
GROUP
20212020
TRADE AND OTHER PAYABLES
$’000$’000
Trade payables7,0548,260
Goods and services tax (GST) payable1,7243,404
PAY E3,6203,025
Other payables and accruals7,7829,702
Deferred grant income–21,778
Total trade and other payables20,18046,169
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20215958ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
This section explains the financial risks the Group faces,
how these risks affect the Group’s financial position and
performance and how the Group manages these risks.
D1 FINANCIAL RISK MANAGEMENT
The Group is exposed to a variety of financial risks comprising:
– credit risk;
– liquidity risk;
– market risk – interest rate risk; and
– capital risk.
Credit risk
Credit risk is the risk that one party to a financial instrument
will cause a financial loss to the other party by failing to
discharge an obligation.
The Group’s principal financial assets are cash and cash
equivalents, and trade and other receivables.
The credit risk on cash and cash equivalents is limited because
the counterparty is a bank with a high credit-rating assigned
by international credit-rating agencies. The maximum credit
risk on other balances is limited to their carrying values without
taking into account any collateral held.
The Group’s credit risk is primarily attributable to its trade and
other receivables. The amounts presented in the Statement
of Financial Position are net of allowances for doubtful
receivables.
The Group has no significant concentration of credit risk as
its exposure is spread over a large number of customers other
than outlined in note C6.
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty
in meeting obligations associated with financial liabilities.
The Group manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities
by continuously monitoring forecast and actual cash flows
and matching the maturity profiles of financial assets and
financial liabilities.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash
flows of a financial instrument will fluctuate as a result of
changes in market interest rates.
The Group’s exposure to interest rate risk arises mainly from
its interest earning cash deposits and its interest bank
borrowings. The Group is exposed to interest rate risk to the
extent that it invests for a fixed term at fixed rates or borrows
for a fixed term at fixed rates. The Group’s policy is to obtain
the most favourable term and interest rate available.
The Group’s exposure to interest rate risk is to the extent that
it invests for a fixed term at fixed rates. The Group’s interest rate
risk policy is to obtain the most favourable term and interest
rate available.
Capital risk management
The Group manages its capital to ensure that the entities in
the Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation
of the debt and equity balance. The Group’s overall strategy
remains unchanged from the prior year.
The capital structure of the Group consists of debt, which
includes the borrowings disclosed in note C7, cash and cash
equivalents (note C5) and equity attributable to equity holders
of the Group, comprising retained earnings and issued share
capital as disclosed in notes C1 and C2 respectively.
The Directors and Management review the capital structure
on a periodic basis. As part of this review the Directors
and Management consider the cost of capital and the risks
associated with each class of capital. The Directors and
Management will balance the overall capital structure through
payment of dividends, new share issues, and share buy backs as
well as the issue of new debt or the redemption of existing debt.
Fair value of financial instruments
The carrying amounts of financial instruments at balance date
approximate the fair value at that date.
D. Financial instruments used to manage risk
IN THIS SECTION
Liquidity and interest rate risk management
The following table details the Group’s remaining contractual maturity for its financial assets and liabilities. The table has been
drawn up based on the undiscounted cash flows of financial assets and liabilities based on the earliest date on which the Group
can be required to receive or pay. The table includes both interest and principal cash flows. To the extent that interest cash flows
are at floating rates, the undiscounted cash flows are derived from interest rates at 31 March.
Weighted
average
effective
interest rate
Less than 1
month
1 – 3
months
3 – 12
months
1 – 5
years
5+
yearsTOTAL
%$’000$’000$’000$’000$’000$’000
2021
Financial assets
Non-interest bearing-%23,451––––23,451
Floating interest-%1,795––––1,795
Financial liabilities
Non-interest bearing-%(7,925)(645)(2,647)(7,162)(476)(18,855)
Floating interest2.21%(28)(55)(249)(15,166)–(15,498)
17,293(700)(2,896)(22,328)(476)(9,107)
2020
Financial assets
Non-interest bearing-%53,529––––53,529
Floating interest-%6,178––––6,178
Financial liabilities
Non-interest bearing-%(16,746)(15,992)(3,639)(10,659)(1,377)(48,413)
Floating interest3.13%(138)(188)(845)(36,563)–(37,734)
42,823(16,180)(4,484)(47,222)(1,377)(26,440)
The current year analysis includes all financial assets and liabilities. In relation to the financial liabilities this excludes tax-related
balances and employee benefits as these are not financial instruments. The prior year disclosure has been updated to reflect the
current year presentation.
Sensitivity analysis
The sensitivity analysis has been based on the exposure to interest rates for borrowings and cash and cash equivalents at 31 March.
The weighted average interest of cash and cash equivalents at balance date was 0% (2020: 0%).
A 50 point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents
management’s assessment of the reasonably possible change in interest rates.
INTEREST RATE
+/– 50 bps
20212020
$’000$’000
Impact on profit and equity75180
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20216160ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
This section provides information to help readers understand
the Group’s structure and how it affects the financial position
and performance of the Group.
E1 SUBSIDIARIES
Accounting policies
Basis of consolidation
The Group financial statements comprise the financial
statements of the company and entities (including structured
entities) controlled by the company and its subsidiaries.
Control is achieved when the Group:
• has powers over the investee;
• is exposed, or has rights, to variable returns from its
involvement with the investee; and
• has the ability to use its powers to affect its returns
The Company reassesses whether or not it controls an investee
if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above.
The results of subsidiaries acquired or disposed of during
the year are included in profit or loss from the effective date
of acquisition or up to the effective date of disposal, as
appropriate. Where necessary, adjustments are made to the
financial statements of subsidiaries to bring the accounting
policies used into line with those used by other members of
the Group.
All intra-group transactions, balances, income and expenses
are eliminated in full on consolidation.
E. Group structure
IN THIS SECTION
The consolidated financial statements include the financial statements of Accordant Group Limited (formerly AWF Madison Group
Limited) and the subsidiaries listed below. Subsidiaries are entities controlled, directly or indirectly, by Accordant Group Limited
(formerly AWF Madison Group Limited).
NAME OF SUBSIDIARY
Place of incorporation
and operation
Proportion of
ownership interest
Proportion of
voting power held
Principal
activity
AWF LimitedNew Zealand100% (2020: 100%)100% (2020: 100%)Labour hire
Madison Recruitment LimitedNew Zealand100% (2020: 100%)100% (2020: 100%)Recruitment
Madison Force LimitedNew Zealand100% (2020: 100%)100% (2020: 100%)Recruitment
Absolute IT LimitedNew Zealand100% (2020: 100%)100% (2020: 100%)Recruitment and
Payroll Services
Probity NZ LimitedNew Zealand100% (2020: 100%)100% (2020: 100%)Probity checks
Accordant Group Services Limited
(formerly NZ Employed Limited)
New Zealand100% (2020: 100%)100% (2020: 100%)Group Services
JacksonStone & Partners LimitedNew Zealand100% (2020: 100%)100% (2020: 100%)Recruitment
JacksonStone Consulting LimitedNew Zealand100% (2020: 100%)100% (2020: 100%)Dormant
The Work Collective LimitedNew Zealand100% (2020: N/A)100% (2020: N/A)Social Enterprise
F. Other
IN THIS SECTION
This section includes the remaining information relating to the
Group’s financial statements that is required to comply with
financial reporting standards.
F1 EMPLOYEE BENEFITS AND SHARE BASED PAYMENTS
Accounting policies
1 Provision is made for benefits accruing to employees in
respect of wages and salaries, annual leave, long service
leave, and sick leave when it is probable that settlement will
be required and they are capable of being measured reliably.
2 Provisions made in respect of employee benefits expected
to be settled within 12 months are measured at their nominal
values using the remuneration rate expected to apply at the
time of settlement.
3 Provisions made in respect of employee benefits which are
not expected to be settled within 12 months are measured
as the present value of the estimated future cash outflows
to be made by the Group in respect of services provided by
employees up to reporting date.
4 The Group pays contributions to superannuation plans,
such as Kiwisaver. The Group has no further payment
obligations once the contributions have been paid.
The contributions are recognised as an employee benefit
expense when they are due. Prepaid contributions are
recognised as an asset to the extent that a cash refund
or a reduction in the future payments is available.
5 The Group operates an equity-settled share based
incentive scheme for senior staff and directors that is settled
in ordinary shares. The fair value of these share-based
payments is calculated on the grant date using an
appropriate valuation model. The fair value is included in
employee benefits expense on a straight line basis over the
vesting period, based on the Group’s estimate of the number
of equity instruments that will eventually vest.
The same amount is credited to shareholders equity.
At each balance date, the Group re-assesses its estimates
of the number of equity instruments expected to vest.
The impact of the revision of original estimates, if any, is
recognised in employee benefits expense immediately,
with a corresponding adjustment to shareholders equity.
GROUP
2021
restated
2020
EMPLOYEE BENEFITS
$’000$’000
Employee benefits89,360146,709
Employer contribution to Kiwisaver2,7322,152
Equity-settled share-based payments78114
Total employee benefits expense92,170148,975
Government grants have been offset against employee benefits. Refer Global Pandemic of Coronavirus disease 2019.
GROUP
20212020
COMPENSATION OF KEY MANAGEMENT PERSONNEL (Excludes Directors)
$’000$’000
The remuneration of key management during the year was as follows:
Salaries and short-term benefits3,2193,009
Employer contribution to Kiwisaver8676
Equity-settled share-based payments–92
Total key management personnel compensation3,3053,177
The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance
of individuals and market trends.
Director fees expensed during the year were $332,000 (2020: $355,000).
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20216362ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
Employee share schemes
The Group has an ownership-based compensation scheme
for senior employees of the Group. In accordance with the
provisions of the restricted share scheme, as approved
by shareholders, senior employees and directors may,
at the discretion of the Board, be granted the opportunity
of purchasing restricted shares at a price determined by the
Board under the rules of the scheme.
Invited participants purchase the shares by way of an interest
free loan from the Group. Participants may convert their shares
from the vesting date and only when they have repaid the loan
from the Group. The shares issued to participants are held as
security for the loan until such time the loan has been repaid.
Restricted shares are entitled to all the rights as ordinary shares,
including dividends and full voting rights, but are not tradable
until they are converted to ordinary shares based on the terms
of the scheme.
A total of 400,000 restricted shares were issued to senior
staff during the year under the terms of the Group share scheme
(2020: 52,000 restricted shares were issued to senior staff
during the year under the terms of the Group share scheme).
At the same time an interest free loan was provided to staff to
purchase these shares pursuant to the terms of the scheme.
No restricted shares were exercised during the year (2020:
No restricted shares were exercised during the year).
223,000 restricted shares were expired during the year (2020:
none) and 36,000 restricted shares were forfeited during the
year (2020: 15,000 shares). The corresponding interest free
loan provided to staff was also cancelled.
At 31 March 2021, there were 937,000 (2020: 796,000)
shares held by staff members and corresponding loans to
the value of $1,664,020 (2020: $1,704,920).
The following share-based payment arrangements were in existence at 31 March 2021:
Number
Grant
date
Vesting
date
Expiry
date
Issue
price
Fair value at
grant date of
the option
RESTRICTED SHARE SERIES
$$
F Shares 2017 Grant21,00023/11/20161/01/20221/01/20232.570.79
F Shares 2018 Grant42,0002/08/20171/01/20221/01/20232.640.82
F Shares 2019 Grant39,0006/06/20181/01/20221/01/20231.930.51
G Shares 2019 Grant145,2001/11/20181/07/20211/07/20221.900.38
H Shares 2019 Grant237,8001/11/20181/01/20241/01/20251.900.55
G Shares 2020 Grant20,80018/06/20191/07/20211/07/20221.850.33
H Shares 2020 Grant31,20018/06/20191/01/20241/01/20251.850.46
I Shares 2021 Grant150,00018/09/20201/07/20231/07/20241.500.37
J Shares 2021 Grant250,00018/09/20201/07/20251/07/20261.500.41
Total937,000
The rules of the restricted share scheme (which for accounting purposes are treated as share options) allow participants to
hand back to the Group restricted shares issued to them at the grant date (or during the exercise period) should the market price
of the shares be below the exercise price. If the restricted shares are handed back to the Group, the loan from the Group is
cancelled. Due to the nature of the restricted share scheme, the scheme has been treated as a share option scheme under NZ IFRS
2 Share-based Payment and a value placed on each restricted share in accordance with the standard.
Restricted shares are valued using Black-Scholes pricing model. Where relevant, the expected life used in the model has been
adjusted based on management’s best estimate for the effects of non-transferability, exercise, and behavioural considerations.
Expected volatility is based on the historical share price volatility over the expected term of the option. The valuation assumes
that senior employees and directors will exercise the options at the end of the allowed one-year loan repayment period.
RESTRICTED
SHARE SERIES
Grant date
Vesting
date
Share
price at
grant
date
Exercise
Price
Term to
vesting
Expected
life
Risk
Free
Rate
Annualised
Volatility
Option
Value
$$(Days)(Years) %%$
F Shares 2017 Grant23/11/20161/01/2022$2.55$2.571,8655.102.40%26.50%$0.79
F Shares 2018 Grant2/08/20171/01/2022$2.70$2.641,6134.402.50%26.20%$0.82
F Shares 2019 Grant6/06/20181/01/2022$1.94$1.931,3053.602.30%25.70%$0.51
G Shares 2019 Grant1/11/20181/07/2021$1.84$1.909732.702.00%25.10%$0.38
H Shares 2019 Grant1/11/20181/01/2024$1.84$1.901,8875.202.20%26.70%$0.55
G Shares 2020 Grant18/06/20191/07/2021$1.83$1.857442.001.20%24.90%$0.33
H Shares 2020 Grant18/06/20191/01/2024$1.83$1.851,6584.501.30%24.70%$0.46
I Shares 2021 Grant18/09/20201/07/2023$1.47$1.501,0162.800.27%33.60%$0.37
J Shares 2021 Grant18/09/20201/07/2025$1.47$1.501,5664.300.37%31.20%$0.41
The weighted average fair value of the restricted shares granted under the restricted share scheme during the year was $0.47
(2020: $0.58)
The following reconciles the outstanding restricted shares granted under the restricted share scheme at the beginning and end
of the year:
GROUP
20212020
Option
Weighted average
exercise priceOption
Weighted average
exercise price
Number$Number$
Balance at 1 April796,000$2.14759,000$2.17
Granted during the year400,000$1.5052,000$1.85
Exercised during the year––––
Expired during the year(223,000)$2.50––
Forfeited during the year(36,000)$2.29(15,000)$2.57
Balance at 31 March937,000$1.78796,000$2.14
The number of restricted share options exercisable at 31 March 2021 is Nil (2020: Nil).
The restricted shares outstanding at 31 March 2021 had a weighted average remaining contractual life of 1,498 days
(2020: 1,476 days).
During the year ended 31 March 2021 the share based payments expense recognised by the Group was a charge of $78,914
(2020: charge of $114,225).
There were no restricted share options exercised during the year (2020: none).
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 20216564ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
F2 PROVISIONS
Accounting policy
Provisions are recognised when the Group has a present
obligation as a result of a past event, and it is probable that the
Group will be required to settle that obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation
at the end of the reporting period taking into account the risks
and uncertainties surrounding the obligation. Where a provision
is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those
cash flows.
GROUP
20212020
PROVISION FOR MEDICAL COSTS
$’000$’000
Balance at 1 April189241
Revaluation of provision211(52)
Balance at 31 March400189
Current400189
Non-current––
Balance at 31 March400189
AWF Limited participates in the ACC accredited employers
full self-cover plan. Under the plan AWF Limited, as employer
undertakes injury management (via its appointed agent) and
accepts financial responsibility for employees who suffer
work-related injuries for a nominated period. AWF Limited
has capped it’s exposure to total claims and unexpected high
individual claims via stop loss cover.
KEY JUDGEMENTS AND ESTIMATES – REHABILITATION
UNDER THE ACC PARTNERSHIP PROGRAMME
Provisions represent management’s best estimate of the
Group’s liability for ongoing medical and rehabilitation
costs for open claims in terms of the partnership agreement
with Accident Compensation Corporation, based on past
experiences and the nature of the open claims.
F3 RELATED PARTIES
Controlling entity
The SA Hull Family Trust No.2, which holds 18,194,598 (2020:
18,194,598) shares is the ultimate controlling entity of the
Group, having a 53.01% (2020: 53.01%) holding.
Transactions
During the year, Group entities entered into the following trading
transactions with a related party that is not a member
of the Group:
F4 COMMITMENTS
GROUP
20212020
CAPITAL EXPENDITURE COMMITMENTS
$’000$’000
Property, plant and equipment300–
Intangible assets – computer software–551
Total capital expenditure commitments300551
F5 CONTINGENT ASSETS AND LIABILITIES
ASB Bank Limited 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.
The Group has no other contingent assets or liabilities at 31 March 2021 (2020: $Nil).
F6 EVENTS AFTER THE REPORTING DATE
GROUP
20212020
RELATED PARTY TRANSACTIONS
$’000$’000
Multihull Ventures Limited – Recruitment services9–
Simon Hull (Director) is a shareholder of Multihull Ventures Limited.
At 31 March 2021, Group entities do not have any amounts owed or owing to a related party that is not a member of the
Group (2020: $ Nil).
Share repurchase
On 6 April 2021, the market was notified on the Board’s
intention to acquire up to 1,000,000 Ordinary Share Capital
of Accordant Group Limited, to be held as Treasury Shares.
Other
No other subsequent events have occurred since reporting
date that would materially impact the Group’s financial
statements as at 31 March 2021.
Leadership Transition
On 20 May 2021 the market was notified of:
i) the appointment of Mr J Cherrington as CEO of Accordant
Group , effective 21 June 2021 and;
ii) the appointment of Mr S Bennett to the Board of Accordant
Group, effective 21 June 2021 as Executive Director.
SHAREHOLDERS STATUTORY INFORMATIONACCORDANT GROUP ANNUAL REPORT 20216766ACCORDANT GROUP ANNUAL REPORT 2021NOTES TO THE GROUP FINANCIAL STATEMENTS
F7 BUSINESS COMBINATIONS JACKSONSTONE & PARTNERS CONTINGENT CONSIDERATION
Accounting policy
Business combinations are accounted for using the
acquisition method.
The consideration transferred in a business combination is
measured at fair value, which is calculated as the sum of the
acquisition-date fair values of assets transferred by the
Group, liabilities incurred by the Group to the former owners
of the acquiree and the equity interest issued by the Group
(if any) in exchange for control of the acquiree.
Acquisition-related costs are recognised in profit or loss
as incurred.
When the Group acquires a business, it assesses the financial
assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms,
economic circumstances and pertinent conditions as at the
acquisition date.
At the acquisition date, the identifiable assets acquired and
the liabilities (including contingent liabilities) assumed are
recognised at their fair value at the acquisition date, except
that deferred tax assets or liabilities or assets related to
employee benefit arrangements are recognised and measured
in accordance with NZ IAS 12 Income Taxes and NZ IAS 19
Employee Benefits respectively.
When the consideration transferred by the Group in a business
combination includes a contingent consideration arrangement,
the contingent consideration is measured at its acquisition-date
fair value and included as part of the consideration transferred
in a business combination. Changes in fair value of the
contingent consideration that qualify as measurement period
adjustments are adjusted retrospectively, with corresponding
adjustments against goodwill. Measurement period adjustments
are adjustments that arise from additional information obtained
during the ‘measurement period’ (which cannot exceed one
year from the acquisition date) about facts and circumstances
that existed at the acquisition date.
The subsequent accounting for changes in the fair value of
the contingent consideration that do not qualify as
measurement period adjustments depends on how the
contingent consideration is classified. Contingent consideration
that is classified as equity is not remeasured at subsequent
reporting dates and its subsequent settlement is accounted for
within equity. Other contingent consideration is remeasured
to fair value at subsequent reporting dates with changes in fair
value recognised in profit or loss.
Effective 1 June 2019, Accordant Group Limited (formerly AWF Madison Group Limited) acquired the shares of JacksonStone &
Partners Limited (‘JacksonStone & Partners’).
As at acquisition date
As part of the purchase agreement, a contingent consideration arrangement was agreed.
Under the contingent consideration arrangement, there were additional cash payments to the previous owners of JacksonStone &
Partners, where the Group is required to pay:
• an initial capped earn out (‘Earnout tranche 1’) of $1.5m subject to achievement of a specified value of Net Disposable Revenue,
agreed by both parties This earn-out was achieved and paid on 30 November 2020; and
• a second uncapped earn out (‘Earnout tranche 2’) which is also subject to achievement of a specified value of Net Disposable
Revenue, agreed by both parties, for the amended 12month period to 31 October 2021 (previously 30 September 2021), payable
in November 2021.
At acquisition date, the potential undiscounted amount of all future payments that the Group could be required to make under the
contingent consideration arrangement was assessed at $1.5m (Paid 30 November 2020) for Earnout tranche 1 and $1.958m for
Earnout tranche 2. The fair value of Earnout tranche 2 of $1.785m, was estimated by applying a discount factor of 3.715% to the
uncapped earn out amount of $1.958m.
As at 31 March 2021
There has been a material change in the Group’s estimate of the Net Disposable Revenue to the previous owners of JacksonStone
& Partners under the contingent consideration arrangement for Earn-out tranche 2.
The potential undiscounted future amount that the Group could be required to make under the contingent consideration
arrangement has been revised down to $0.549m (2020: $1.958m). The liability has decreased by a total of $1.409m with a fair value
gain of $1.285m and reduced discount interest of $49,000 applying a consistent discount factor of 3.715% to the uncapped revised
earn out amount of $0.549m.
The future value range has been assessed at +/- $0.050m.
Fair value measurement
Contingent consideration is the Group’s only item measured at fair value. Contingent consideration is categorised within Level 3 of
the fair value hierarchy. The following is information about how the fair value of contingent consideration is determined (in particular,
the valuation technique(s) and inputs used).
• Valuation technique and key inputs: Discounted cash flow method was used to capture the present value of the Group arising
from the contingent consideration.
•Significant unobservable inputs: Discount rate
•Relationship and sensitivity of
unobservable inputs to fair value:
The higher the discount rate, the lower the fair value. If the discount rate was 1% higher/
lower while all other variables were held constant, the carrying amount would decrease/
increase by $50,000 (2020: decrease/increase by $28,000).
The Directors of Accordant Group Limited (formerly AWF Madison Group Limited) submit herewith the annual financial report
of the company for the financial year ended 31 March 2021. In order to comply with the Companies Act 1993, the Directors
report as follows:
The names and particulars of the Directors of the company during or since the end of the financial year are:
Directors NameParticulars
Audit, Finance
and Risk
Committee
Remuneration
Committee
Nomination
Committee
Health
& Safety
Committee
Organisation
Committee
Ross KeenanChairman and Independent Director.
Joined the board in 2005.
Simon HullNon-independent Director.
Founding shareholder.
Chairperson
Wynnis ArmourIndependent Director.
Joined the board in 2015.
Founding shareholder of Madison
Recruitment Limited.
Chairperson
Chairperson
Nicholas SimcockIndependent Director.
Joined the board in 2018.
Laurissa CooneyIndependent Director.
Joined the board on 1 August 2020.
Chairperson
Julia HoareRetired from the board 30 June 2020.
Entries recorded in the Interests Register
Entries in the Interest Register made during the year and disclosed pursuant to sections 211(1)(e) and 140(1) of the Companies Act
1993 are as follows:
(a) Directors Interests in transactions
The Directors had no interests in transactions in the current year.
(b) Share dealings by Directors
The following table sets out each Directors personal interest in shares of the company as at the date of this report.
DirectorOrdinary shares
Ross B Keenan250,000
Wynnis Armour354,703
Nicholas Simcock10,000
Companies Act 1993 disclosures
SHAREHOLDERS STATUTORY INFORMATIONACCORDANT GROUP ANNUAL REPORT 20216968ACCORDANT GROUP ANNUAL REPORT 2021SHAREHOLDERS STATUTORY INFORMATION
Disclosure of interests by Directors
Where applicable, the disclosures also include directorships of subsidiaries of the relevant companies.
ROSS B. KEENAN
Accordant Group LimitedChairperson
Touchdown LimitedDirector
Indemnity from the Company under the D&O Insurance policy
SIMON HULL
Accordant Group LimitedDirector
AWF LimitedDirector
Hull Properties LimitedDirector
Nano Imports LimitedDirector
Multihull Ventures LimitedDirector
Marlborough Developments Limited (2007)Director
Zhik Pty LimitedDirector
Indemnity from the Company under the D&O Insurance policy
WYNNIS ARMOUR
Accordant Group LimitedDirector
Armour Consulting LimitedDirector
ArcAngels Nominee LimitedDirector
Maby LimitedDirector
Common Grounds Café LimitedDirector
University of Canterbury FoundationTrustee
Indemnity from the Company under the D&O Insurance policy
NICHOLAS SIMCOCK
Accordant Group LimitedDirector
Simcorp LimitedDirector
Just Property Management LimitedDirector
Wellington Creative Capital Arts TrustTrustee
Indemnity from the Company under the D&O Insurance policy
LAURISSA COONEY (appointed 1/07/2020)
Accordant Group LimitedDirector
Tourism Bay of PlentyChairperson
Air New Zealand LimitedDirector
Audit & Risk Committee of Nga Tangata TiakiCommittee Member
Goodman (NZ) LimitedDirector
Goodman Property Aggregated LimitedDirector
GMT Bond Issuer LimitedDirector
GMT Wholesale Bond Issuer LimitedDirector
Le Rissa LimitedDirector
Ngai Tai ki Tamaki Commercial Investment TrustTrustee
The Aotearoa CircleGuardian
Indemnity from the Company under the D&O Insurance policy
JULIA HOARE (retired 30/06/2020)
Directors interests at 30 June 2020
Auckland International Airport LimitedDirector
AWF Madison Group LimitedDirector (the name changed to Accordant Group Limited
on 19 October 2020)
Meridian Energy LimitedDirector
The a2 Milk Company LimitedDeputy Chairperson
Watercare Services LimitedDeputy Chairperson
Port of Tauranga LimitedDirector
External Reporting Advisory PanelMember
The Institute of Directors in New Zealand – National CouncilVice President
Indemnity from the Company under the D&O Insurance policy
Changes in state of affairs
During the year there was no significant change in the state of affairs of the consolidated entity other than that referred
to in the financial statements or notes thereto.
Director Remuneration
The following table discloses the remuneration of the Directors of the company:
Annual
Fees paid
in year
Salary and
Bonus
Share-based
paymentsTotal
Director$’000$’000$’000$’000$’000
Ross B Keenan115109––109
Simon Hull6057––57
Julia Hoare (retired 30/06/2020)–12––12
Wynnis Armour6057––57
Nicholas Simcock6057––57
Laurissa Cooney (appointed 1/08/2020)6040––40
355332––332
CEO Remuneration
The following discloses the remuneration arrangements
in place for CEO of the Company:
Fixed Remuneration
Over the course of the 2021 Financial year, the CEO,
Simon Bennett, earned fixed remuneration of $545,000
(2020 financial year $572,000).
Annual Performance Incentive
The annual value of the CEO’s Short Term Incentive Scheme
(STI) is set at 25% of fixed remuneration if all performance
targets are achieved. The measures used in determining the
quantum of the STI are set annually. Targets relate to both
Company financial performance (60%) and individual leadership
targets (40%).
The STI for the 2021 financial year has yet to be determined.
For the 2020 financial year, the CEO earned an STI payment of
$54,538 paid in the 2021 financial year. For the 2019 financial
year, the CEO earned an STI payment of $46,000 paid in the
2020 financial year.
Short-Term Incentive
The CEO short-term incentive plan (established 9 May 2019)
lapsed as of 31 December 2020. The CEO was awarded a
discretionary incentive of $80,000 during the year.
Long-Term Incentive
The Group operated equity-settled share based incentive
scheme, refer note F1 of the financial statements.
The CEO was granted options to acquire Restricted Shares
funded by interest free loans with future vesting dates:
• 30 July 2014, 90,000 Restricted D Shares at a price of
$2.57 per share with a vesting date of 1 July 2019.
The participant has 12 months from vesting date to exercise
the option. The Restricted D Share options expired during
the year.
• 1 November 2018, 40,000 Restricted G Shares at a price
of $1.90 per share with a vesting date of 1 July 2021.
• 1 November 2018, 60,000 Restricted H Shares at a price
of $1.90 per share with a vesting date of 1 July 2024.
• 18 September 2020, 150,000 Restricted I Shares at a price
of $1.50 per share with a vesting date of 1 July 2023.
• 18 September 2020, 250,000 Restricted J Shares at a price
of $1.50 per share with a vesting date of 1 July 2025.
Superannuation
The CEO is eligible to contribute and receive a matching
Company contribution up to 3.0% of gross taxable earnings
(including STI).
Summary of CEO remuneration20212020
Remuneration event
Base salary$545,385$545,385
Short-term incentive$80,000$54,538
Superannuation$20,384$16,632
At risk – long-term incentives:
Restricted D Shares–90,000 at $2.57
Restricted G Shares40,000 at $1.9040,000 at $1.90
Restricted H Shares60,000 at $1.9060,000 at $1.90
Restricted I Shares150,000 at $1.50–
Restricted J Shares250,000 at $1.50–
SHAREHOLDERS STATUTORY INFORMATIONACCORDANT GROUP ANNUAL REPORT 20217170ACCORDANT GROUP ANNUAL REPORT 2021SHAREHOLDERS STATUTORY INFORMATION
Employee Remuneration
Grouped below, in accordance with section 211(1)(g) of the Companies Act 1993, are the number of employees or former employees
of the company, excluding Directors of the company, who received remuneration and other benefits in their capacity as employees,
totalling $100,000 or more, during the year:
Number of Employees
Remuneration
20212020
$100,000 – 109,9991216
$110,000 – 119,9991013
$120,000 – 129,999107
$130,000 – 139,99938
$140,000 – 149,999610
$150,000 – 159,99945
$160,000 – 169,99961
$170,000 – 179,99913
$180,000 – 189,99912
$190,000 – 199,999–1
$200,000 – 209,99924
$210,000 – 219,99934
$220,000 – 229,9991–
$230,000 – 239,999–2
$240,000 – 249,99921
$250,000 – 259,99931
$260,000 – 269,99932
$270,000 – 279,999–1
$280,000 – 289,999–2
$290,000 – 299,999–1
$300,000 – 309,99912
$330,000 – 339,999–1
$360,000 – 369,999–1
$380,000 – 389,9991–
$490,000 – 499,999–1
$660,000 – 669,999–1
$690,000 – 699,9991–
7090
Distribution of holders of quoted shares
Size of holding
Number of fully
paid ordinary
shareholdersPercentage
Number of fully
paid sharesPercentage
1 – 100010314.15%55,3090.16%
1001 – 500027637.91%818,2862.38%
5001 – 1000014219.51%1,114,1553.25%
10001 – 5000017323.76%3,846,01511.20%
50001 – 100000162.20%1,162,1383.39%
100001 and over182.47%27,329,63979.62%
728100.00%34,325,542100.00%
Substantial security holders
Pursuant to the Financial Markets Conduct Act 2013, the following persons have given notice that they were substantial security
holders in the company and held a “relevant interest” in the number of fully paid ordinary shares shown below:
Fully paid shares in which relevant interest is held
Substantial product holderNumberPercentageDate of notice
Simon Alexander Hull & David John Graeme Cox18,194,59853.01%5/02/2018
Masfen Securities Limited2,085,5016.08%5/12/2018
Twenty largest holders of quoted equity securities
InvestorTotal UnitsPercentage
Simon Alexander Hull & David John Graeme Cox18,194,59853.01%
Masfen Securities Limited2,085,5016.08%
New Zealand Central Securities Depository Limited1,432,3344.17%
Russell John Field & Anthony James Palmer1,125,0003.28%
Ma Janssen Limited1,117,0183.25%
Susanne Rhoda Webster426,7501.24%
Peter Abe Hull & Antoinette Ngaire Edmonds372,6961.09%
Wynnis Ann Armour & Jocelyn Patricia Dutton354,7031.03%
Ian Harold Holland302,5740.88%
Philip John Talacek & Brenda Ann Talacek300,0000.87%
New Zealand Depository Nominee293,3130.85%
Simon James Bennett280,0070.82%
Ross Barry Keenan250,0000.73%
Hickman Family Trustees Limited245,1700.71%
Kevin James Hickman & Joanna Hickman200,0000.58%
Lay Dodd Trustee Services Limited & Patricia Anne Neal129,3800.38%
Forsyth Barr Custodians Limited115,3330.34%
Blair Richard Watson Tallott105,2620.31%
Elizabeth Mary Keenan100,0000.29%
Rex Charles Mincher100,0000.29%
DIRECTORY
Directory
Registered Office
Level 6, 51 Shortland Street
PO Box 105 675
Auckland 1143
Ph: +64 9 526 8770
Directors
Ross Keenan (Chairman and Independent Director)
Simon Hull (Non-independent Director)
Julia Hoare (Independent Director) – retired 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
MinterEllisonRuddWatts
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
Ph: +64 9 375 5998
or: 0800 377 388
72ACCORDANT GROUP ANNUAL REPORT 2021
Registered Office of
Accordant Group Limited
Level 6, 51 Shortland St
PO Box 105 675
Auckland 1143
Ph: 09 526 8770
accordant.nz
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.
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