Accordant Group Limited logo

Accordant Group reports strong profits, recovering demand

Earnings Results27 May 2021AGLUtilities

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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