30 June 2021 Annual Report

Enprise Group Limited
Annual Report and Financial Statements
for the year ended 30 June 2021

Enprise Group Limited
Annual Report and Financial Statements
for the year ended 30 June 2021
Contents
Directors Report
2
Consolidated Statement of Comprehensive Income
7
Consolidated Statement of Financial Position
8
Consolidated Statement of Changes in Equity
9
Consolidated Statement of Cash Flows
10
Notes to the Consolidated Financial Statements
Basis of preparation
11
Segment information
14
Revenue
15
Other income
16
Operating expenses
17
Taxation
19
Earnings per share
21
Trade and other receivables
21
Contract assets
22
Other assets
22
Trade and other payables
22
Provisions
23
Contract liabilities
23
Investments in joint ventures and associates
24
Investments in other entities
26
Property plant and equipment
27
Intangible assets
28
Right-of-use assets
30
Borrowings
31
Lease liabilities
32
Equity
33
Related party transactions
33
Subsidiaries with non controlling interests
35
Cash flow reconciliation
36
Contingent liabilities
36
Subsequent events after balance date
36
Financial risk management, objectives and policies
37
Corporate Information
39
Auditor's Report
40
1

Enprise Group Limited
Directors' Report
The Directors are pleased to submit to shareholders their report and financial statements for the 12 month period ended 30 June 2021.
Principal activities
Significant changes in the state of affairs
Directors
Mr Lindsay Phillips (appointed 1 December 2013) - Chairman
Mr George Cooper (appointed 10 April 2012) - CEO
Mr Ronald Baskind (appointed 31 January 2018) – CEO Enterprise Division
Mr Nicholas Paul (appointed 1 December 2015) – Independent Non-Executive Director
Ms Marisa Fong (appointed 1 February 2019) – Independent Non-Executive Director
Ms Marisa Fong, Mr Nicholas Paul and Mr Lindsay Phillips comprise the members of the Audit, Finance and Risk Committee.
30 June 202130 June 2020
Male Directors4
4
Female Directors1
1
Male Officers2
2
Female Officers1
1
Corporate governance
The directors have complied with the corporate governance code which can be found on the following link.
https://enprise.com/media/1824/201125-eg-corporate-governance-statement.pdf
Ms Fong is considered to be an independent director as she has a small holding in Enprise and has no other remuneration or influence which would affect her decision
making in a material way. Mr Paul is considered to be an independent director as he has a small holding in Enprise and although he has gained remuneration for his role
as acting CEO of iSell, this is a temporary role to enable the founder of iSell, Richard Beresford to complete the product development.
Enprise Group Limited (Enprise) has two operating divisions;
Enprise is invested in Datagate Innovation Limited (Datagate) that provides online reporting and billing portals under a Software-as-a-Service (SaaS) model for resellers of
Telco/Utility services and hosted service providers in New Zealand, Australia, Canada, USA and Europe. Enprise holds 32.02% of Datagate.
Enprise invested further into iSell. Enprise subscribed for 2,162,851 shares at AUD $0.40 per share on 11 March 2021 which took Enprise to 71.1%. During the period,
Enprise acquired iSell shares from other iSell shareholders for cash.
Enprise subscribed for $335,038 in an oversubscribed rights issue undertaken by Datagate to capitalise on the progress made in international markets, particularly the
USA. Enprise's stake was diluted by the raise, causing Enprise to recognise a gain on dilution.
• iSell Pty Limited (iSell), sell a cloud-based quoting systems (IT Quoter) on a Software-as-a-Service (SaaS) model used by the IT reseller market in Australia, New
Zealand, UK, USA and South Africa.
• Enterprise Division, a solution provider for MYOB Enterprise software in Australia and New Zealand will from now on be trading as Kilimanjaro Consulting under the
“One Company – One Team – One Brand” philosophy.
Enprise is invested in Vadacom Holdings Limited (Vadacom), a leading voice over IP (VoIP) telephony solutions provider. Enprise holds 6.23% of Vadacom.
2

Enprise Group Limited
Directors' Report
Remuneration of directors
The remuneration of the Directors for the period ended 30 June 2021 is set out below:
30 June 202130 June 2020
12 mths $'00015 mths $'000
Salaries, bonuses and commissions438 377
Superannuation defined contribution 22 10
Consultancy fees180 135
Directors' fees90 112
Total compensation730 634
George Cooper
209 276
Lindsay Phillips
40 50
Nicholas Paul
205 166
Ronald Baskind
229 295
Marisa Fong
25 31
708 818
$'000$'000
Base per annumIncentive
George Cooper
230 20
Ronald Baskind
269 22
Incentives are discretionary and assessed by the Board based on the profitability of the company.
Employee remuneration over $100,000
30 June 202130 June 2020
100,001 – 110,0008 10
110,001 – 120,0006 8
120,001 – 130,0009 11
130,001 – 140,0007 3
140,001 – 150,0005 4
150,001 – 160,0003 2
170,001 – 180,0002 2
190,001 – 200,0002 1
200,001 – 210,000- 2
210,001 – 220,000- 1
230,001 – 240,0001 -
240,001 – 250,0001 -
250,001 – 260,0001 -
320,001 - 330,0001 -
Rounding of amounts
Amounts in the directors’ report and financial statements have been rounded off to the nearest thousand dollars.
Number of employees
The number of employees or former employees, not being directors of the Group, that received remuneration and other benefits that exceeded $100,000 per annum is as
follows:
3

Enprise Group Limited
Directors' Report
Review of operations and outlook
Enterprise Division
MYOB Changes
Recurring
Revenue
Contracted
Revenue
Total Recurring
and Contracted
Revenue
3.321m2.645m5.966m
The Enterprise Division was formed by the complete merger of the operations of Kilimanjaro Consulting in Australia and Enprise Solutions in New Zealand in January 2020.
Strong improvements in productivity and economies of scale have followed and is reflected in the profitability of the Enterprise Division. We continue to leverage our
position as MYOB’s largest partner in the Enterprise space, with an overall goal to maintain our position as the “Partner of Choice for MYOB Enterprise Solutions in the
Australian and New Zealand markets”
To further leverage off our strengths and control our costs, the Enterprise Division is rapidly moving towards operating as “One Company – One Team – One Brand”. The
Enprise brand will be reserved for the listed entity Enprise Group Limited (ENS). This will facilitate clearer positioning of the Group as a high-tech software and services
investment company. The “Enprise Solutions” brand has already been phased out in Australia and will be replaced by the Kilimanjaro brand in New Zealand over the
coming months.
The skills built up in our teams over the last 21 years are critical to our success. Government subsidies received with thanks during the COVID-19 pandemic enabled us to
retain these skills, which may otherwise have been lost. Our quick pivot to embrace remote working, acceleration of our on-line learning initiatives, and encouraging and
assisting our existing clients to use technology to survive, will ensure not only our own survival but enable us to fulfil our obligation to support economic growth.
Despite the prevailing uncertainty caused by COVID-19, the adoption of technology is seen by most companies as essential to survival and growth. This positions us well
for the next year. Our recurring and contracted revenue provide a stabilising factor.
The accelerating trend for organisations to use technology to improve their efficiency, and a rapidly growing base of SaaS users in different market verticals, gives us the
opportunity to maximise the lifetime value of our large and loyal client base, and to attract new clients. Our offering is particularly attractive to organisations that aspire to a
unified cloud-based business and people management solution.
The Enterprise Division specialises in the implementation, training, support, integration, and further development of MYOB ERP solutions for larger, more complex
companies. Our portfolio has expanded from MYOB Exo to include MYOB Advanced and MYOB Advanced People and now includes a suite of integrated third-party
products.
In a SaaS world, success is measured by recurring revenue. A large proportion of the Enterprise
Division revenue is recurring or contracted. Of the $15.239m revenue, $3.321m was recurring and
$2.645m was contracted, total recurring and contracted revenue was $5.966m.
Our “Connected Services” approach enables existing clients to leverage off the power of “Best of Breed” SaaS solutions. This also creates an easy path to the cloud for
our Exo clients, if and when they want it. Our ExoHosted solution facilitates this, moving on-premise servers to the cloud. The development of new integrations is always
on our radar. Our newest self-developed tool, Synkit, facilitates integration between MYOB Exo and several 3rd Party SaaS services, including HubSpot, SalesForce,
Smart Freight, Magento, and more. The MYOB / Acumatica (foundation of MYOB Advanced) connection is strong, with MYOB represented on the Acumatica Board. The
robust and flexible General Ledger capabilities of MYOB Advanced, together with configurable workflows, make this the most powerful mid-market ERP system in its class.
MYOB is now the only SaaS vendor in Australia and New Zealand with a fully integrated ERP / Payroll / Workforce Management solution.
MYOB, under KKR ownership, has undergone major changes in both company structure and product focus. The Enterprise Division is a strategic partner of MYOB and
continues to work together with them to support existing products, new product development, and marketing. MYOB have changed their strategy in the Enterprise space
from a purely channel partner model, to a combination of direct and channel. This is causing some disruption, as MYOB announced the acquisition of two of their Channel
partners. The direct strategy is primarily aimed at defined segments, and some specialised verticals. An engagement desk has been put in place by MYOB to ensure fair
competition and non-solicitation of our clients or employees. MYOB has reiterated the importance of partners in helping to achieve their mid-market growth ambitions and
will continue to invest in building their capability. The partner channel remains a core pillar of their Go-to-Market strategy. Our Enterprise Division services the top end of
the MYOB target market, which is currently a segment that MYOB does not service via their direct channel. Our investment in developing capabilities to service this market
positions us very well to remain a valuable channel partner for MYOB.
The current Strategic Plan of the Enterprise Division is designed to achieve a Compound Annual Growth rate of 15%. The Enterprise Division showed a revenue increase
of 24% above the previous 15-month period. EBITDA was effectively on budget, despite the COVID-19 impacts. This meant the division made a significant contribution
(Revenue $15.239m (2020 $12.251m))
Our #ClientFirst initiatives are aimed at customer satisfaction, which will preserve and expand on the contracted and recurring revenue.
The Enterprise Division employs over 100 highly skilled people across Australia and New Zealand. We have the largest team in the MYOB channel and are continuing to
grow and incrementally improve. We recognise that our people are our greatest asset, and we are committed to being in the top quartile of employers, based not only on
remuneration but also on a strong culture and employee engagement.
4

Enprise Group Limited
Directors' Report
Enterprise Division continued
The year ahead will see us continue with our current strategic directions, with a focus on:
1. Adapting to MYOB’s entry into the market with a direct channel.
2. Implementing the recommendations of our large-scale internal review of processes and systems.
3. Productivity improvements.
4. Cost control.
5. Better utilisation of resources across the Enterprise Division.
6. Continued recruiting of high-level skilled resources.
iSell
Datagate
Vadacom
Donations
Directors interests at 30 June 2021
Number of Shares
3,090,939
George Cooper 243,242
Nicholas Paul 50,273
Ronald Baskind 2,671,276
Marisa Fong 42,833
Enprise Group’s associate, Datagate Innovation Ltd (Datagate) grew its annual recurring revenue (ARR) to over $1.6 million, an increase of 47%. Datagate has more than
doubled its ARR in the USA over the last year to 30 June 2021. Datagate is in high-growth mode and is keeping its focus on growing revenue and market share as
aggressively as possible. Market demand for Datagate is strong, its core clients are suppliers of advanced unified communications systems and remote working solutions.
Vadacom Holdings Ltd (Vadacom) continued to grow ARR to $2.56 million (up 2.2%) year-on-year. Contracted revenue was $0.52 million at 31 March 2021. Vadacom has
recently released its new cloud PBX phone system ‘Next Voice’. As a result of an independent valuation of Vadacom, Enprise Group realised a $0.02 million increase in
the carrying value of this investment in the period. Vadacom had a share buy-back during the period, this together with the change in valuation saw a reduction in carrying
value to $0.69 million.
Focus for the next year
Focus for the next year
We will do this by focusing on ensuring our cloud product continues to develop, with the addition of new e-Commerce and Document Builder products later this calendar
year. This will complete the core modules and enable us to focus heavily on ensuring the robustness of our software delivers an outstanding experience to our customers.
ITQuoter is looking to continue to focus on driving ARR by acquiring new customers in its key markets, in particular Australia, UK and the new USA market. Our plan
includes doubling our customer base as we take advantage of the new product releases due at the end of this year.
The UK and USA markets are important for us to achieve the desired growth; lifting our monthly acquisition numbers. Capitalising on the beach-head we have secured in
the UK via strengthening our sales and marketing is critical. Establishing a beach-head in the USA is also critical to help deliver the volumes required. A focus on creating
strong reseller relationships in the USA is underway to augment our direct sales capability.
Annual recurring revenue (ARR) has increased to $0.8 million. Enprise currently owns 71% of iSell. Focus over the last 18 months has moved from transitioning legacy
customers, to acquiring new customers. Australia and New Zealand remain an active market however the last year saw ITQuoter establish a presence in the UK market,
South Africa, Ireland, Netherlands, Denmark and more recently, the USA.
A UK presence was established in March 2021, which has seen the number of UK and Europe sites grow to over 53 customers, with reseller partners established. With
over 20,000 MSP’s, this market offers a strong opportunity for ITQuoter to build on this beach-head and deliver continued growth.
A decision was made to undertake a controlled and careful market entrance into the USA in May 2021. A low-key presence has been established including a local sales
agent, an office and we are now beginning to acquire customers in this market. With over 100,000 potential customers it offers considerable opportunity for growth
however will be undertaken with caution.
Enprise made donations during the period of $0 (last year: $1,000).
Lindsay Phillips
5

Enprise Group Limited
Directors' Report
Interests’ register
The following entries are recorded in the period ending 30 June 2021:
• Nick Paul was appointed director of Connector Communities Limited and became a shareholder in Boatsmart Marine Services Limited
• Marisa Fong became a shareholder in Weirdly Limited and Living Clean NZ Limited
Top 20 shareholdings as at 31 August 2021
HoldingHolding %
New Zealand Central Securities Depository Ltd 3,226,395 19.97
Nightingale Partners Pty Limited* 3,090,939 19.13
Red Cow Investments Pty Limited~ 2,671,276 16.53
Reitham Finanz Gmbh & Co Kg 861,471 5.33
New Zealand Depository Nominee 459,219 2.84
Custodial Services Limited 454,500 2.81
Amely Zaininger 363,286 2.25
Bernard Israel Fridman 318,145 1.97
Jens Neiser 310,159 1.92
Carjon Investments Pty Limited 291,071 1.80
Savgas Pty Limited 291,071 1.80
Deansand Pty Limited 290,692 1.80
Net Power Solutions Limited 249,893 1.55
George Elliot Cooper 243,242 1.51
Donwood Pty Limited 230,000 1.42
Fridman Super Fund 181,767 1.12
Jason Patrick Fegan 146,063 0.90
David Mitchell Odlin 143,006 0.89
Sarah May Loveys 141,052 0.87
Leah Catherine Cooper 130,000 0.80
*Related parties to Lindsay Phillips
~Related party to Ronald Baskind
Geographic distribution of shareholders as at 31 August 2021
CountryHoldersHolder %Issued capitalIssued capital %
New Zealand 274
67.00%
6,488,009
40.15%
Australia 105
25.67%
8,465,638
52.40%
Germany 18
4.40%
1,180,922
7.31%
USA 8
1.96%
16,263
0.10%
Great Britain 3
0.73%
6,667
0.04%
Switzerland 1
0.24%
200
0.00%
Total 409 100.00% 16,157,699 100.00%
Distribution of shareholders as at 31 August 2021
RangeHoldersHolding quantityHolding %
1-1000 148 67,525
0.42%
1001-5000 148 375,483
2.32%
5001-10000 44 341,308
2.11%
10001-50000 46 1,041,294
6.44%
50001-100000 2 114,156
0.71%
Greater than 100000 21 14,217,933
88.00%
Total 409 16,157,699 100.00%
The directors’ report is signed for and on behalf of the Board, and was authorised for issue on the date below.
George Cooper (Director, CEO)Ronald Baskind (Director, CEO Enterprise Division)
28 September 2021
28 September 2021
• Lindsay Phillips was appointed director of Larki Pty Limited and Old Bull and Box Holdings Pty Limited. He ceased to be director of Chess Industries Limited,
Academic Assessment Services Pty Limited and Amcos Pty Limited
6

Enprise Group Limited
Consolidated Statement of Comprehensive Income
for the year ended 30 June 2021
30 June 202130 June 2020
Note
12 mths $'00015 mths $'000
Revenue from contracts with customers
3
16,11312,420
Government assistance
4(a)
753935
Employee expense
5(d)
(11,806)(8,335)
Other operating costs
5(c)
(4,431)(3,499)
Other gains/(losses) - net
5(a)
- 60
Operating profit
6291,581
Equity earnings/(losses) from associates and joint ventures
14
(474)(618)
Other gains/(losses) related to associates and joint ventures
14
344257
Net gain on previously held interest in associates and joint ventures- 85
Finance cost - net
5(b)
(129)(39)
Profit before income tax
3701,266
Income tax benefit
6(a)
40293
Profit for the period7721,359
Other Comprehensive Income
Items that may be reclassified to profit or loss
Foreign currency translation differences3893
Items that will not be reclassified to profit or loss
Changes in the fair value of investments through other comprehensive income
15
23220
Total other comprehensive income for the period, net of tax61313
Total comprehensive income for the period
8331,672
Profit for the period is attributable to:
Non-Controlling Interest(326)23
Owners of Enprise Group Limited
1,0981,336
7721,359
Total comprehensive income for the period is attributable to
Non-Controlling Interest(326)23
Owners of Enprise Group Limited
1,1591,649
8331,672
Earnings per share from profit for the period attributable to ordinary shareholders of the Enprise Group Limited
Basic and diluted earnings per share (see note 7) cents per share6.85 11.67
These financial statements should be read in conjunction with the notes to the financial statements and the Auditor's report.
7

Enprise Group Limited
Consolidated Statement of Financial Position
as at 30 June 2021
30 June 202130 June 2020
Note
$'000$'000
Current assets
Cash and cash equivalents
19
2,8063,169
Trade and other receivables
8
2,8212,953
Contract assets
9
713646
Current tax assets
6(c)
1-
Staff receivables
- 13
Total current assets
6,3416,781
Non-current assets
Investments in associates, joint ventures
14833628
Investments in other entities
15687813
Staff receivables - non current
10690
Property plant and equipment
16384284
Intangible assets
1710,81010,960
Right-of-use assets - non-current
181,5681,851
Deferred tax asset
6(d)1,9601,746
Loans to related parties - non current
22(e)87-
Other non-current assets
1054154
Total non-current assets
16,48916,526
Total assets
22,83023,307
Current liabilities
Trade and other payables
11
2,5552,787
Provisions
12
1,5251,232
Contract liabilities
13
2,3621,989
Borrowings
19
50347
Lease liabilities
20
572704
Total current liabilities
7,0647,059
Non-current liabilities
Provisions - non-current
12
181269
Borrowings - non current
19
- 138
Lease liabilities - non-current
20
1,0871,179
Deferred tax liability
6(d)
705893
Total non-current liabilities
1,9732,479
Total liabilities
9,0379,538
Net assets
13,79313,769
Equity
Share capital
21(a)
11,01010,749
Foreign exchange translation reserve
196158
Financial assets at FVOCI reserve
588565
Retained earnings
1,444912
Equity attributable to the owners of Enprise Group Limited13,23812,384
Non-controlling interests
235551,385
Total equity
13,79313,769
- -
These financial statements have been authorised for issue by the Directors.
For and on behalf of the Board:
George Cooper (Director, CEO)Ronald Baskind (Director, CEO Enterprise Division)
28 September 2021
28 September 2021
These financial statements should be read in conjunction with the notes to the financial statements and the Auditor's report.
8

Enprise Group Limited
Consolidated Statement of Changes in Equity
for the year ended 30 June 2021
Share capital
Foreign
exchange
translation
reserve
Financial
assets at
FVOCI
reserve
Retained
earnings
Non-
controlling
interests
Total equity
$'000$'000$'000$'000$'000$'000
Balance at 1 April 20196,566 65 345 (424) - 6,552
Transactions with shareholders in their capacity as owners
New shares issued4,183 - - - - 4,183
Non-controlling interest on acquisition- - - - 870 870
New share issue in iSell Pty Limited- - - - 492 492
Total transactions with shareholders
4,183 - - - 1,362 5,545
Comprehensive income
Profit for the period- - - 1,336 23 1,359
Other comprehensive income
- 93 220 - - 313
Total comprehensive income net of tax- 93 220 1,336 23 1,672
Balance at 30 June 2020
10,749 158 565 912 1,385 13,769
Balance at 1 July 202010,749 158 565 912 1,385 13,769
Transactions with shareholders in their capacity as owners
Dividends paid
- - - (639) - (639)
New shares issued (note 21)261 - - - - 261
Transactions with non-controlling interests (note 23)- - - 73 (504) (431)
Total transactions with shareholders
261 - - (566) (504) (809)
Comprehensive income
Profit/(loss) for the period- - - 1,098 (326) 772
Other comprehensive income
- 38 23 - - 61
Total comprehensive income net of tax
- 38 23 1,098 (326) 833
Balance at 30 June 2021
11,010 196 588 1,444 555 13,793
These financial statements should be read in conjunction with the notes to the financial statements and the Auditor's report.
9

Enprise Group Limited
Consolidated Statement of Cash Flows
for the year ended 30 June 2021
Note
30 June 202130 June 2020
12 mths $'00015 mths $'000
Operating activities
Cash was provided from:
Receipts from customers
23,855
19,962
Government assistance
935
753
Interest received
2
19
Income tax refund received
-
1
24,79220,735
Cash was applied to:
Payments to suppliers & employees
22,445 17,962
Interest paid
132 112
22,57718,074
Net cash inflow from operating activities242,215 2,661
Investing activities
Cash was provided from:
Loans repaid by staff
13
74
Repayments from associates and joint ventures
-
104
Term deposits
100
-
Share buy back from other entities
62
-
Business acquisitions
-
23
175 201
Cash was applied to:
Purchase of property, plant and equipment
190
95
Software development costs
272
-
Investment in equity accounted joint venture
335
176
Investment in equity accounted associate
-
42
Purchase of business
18
20
Lending to third parties
5
30
Advances to associates and joint ventures
-
876
8201,239
Net cash inflow (outflow) from investing activities(645) (1,038)
Financing activities
Cash was provided from:
Proceeds from issue of shares
-
1,136
Proceeds from issue of shares in iSell Pty Limited to non-controlling interests
146
466
146 1,602
Cash was applied to:
Dividends paid
378
-
Purchase of shares in iSell Pty Limited from non-controlling interests
576
-
Repayment of lease liabilities
656
415
Repayment of bank borrowings
441
350
Repayment of other borrowings
2
65
2,053 830
Net cash inflow (outflow) from financing activities(1,907) 772
Net increase / (decrease) in cash and cash equivalents held(337) 2,395
Net foreign exchange differences
(26)
3
Cash and cash equivalents at beginning of the period3,169 771
Cash and cash equivalents at end of the period
19
2,806 3,169
- -
These financial statements should be read in conjunction with the notes to the financial statements and the Auditor's report.
10

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1BASIS OF PREPARATION
(a)Reporting entity
(b)Compliance statement
(c)Basis of preparation
(d)Principles of consolidation
The consolidated financial statements comprise the financial statement of the company and its subsidiaries.
Percentage ownership
30 June 202130 June 2020
Enprise Solutions LimitedNew ZealandSoftware sales and solutions100.00 100.00
Enprise Australia Pty LimitedAustraliaSoftware sales and solutions100.00 100.00
Kilimanjaro Consulting Pty LimitedAustraliaSoftware sales and solutions100.00 100.00
Enprise LimitedNew ZealandSoftware sales and solutions100.00 100.00
Global Bizpro LimitedNew ZealandSoftware sales and solutions100.00 100.00
Kilimanjaro Consulting LimitedNew ZealandSoftware sales and solutions100.00 100.00
iSell Pty LimitedAustraliaSoftware sales and solutions71.14 50.82
iSell Philippines IncPhilippinesSoftware sales and solutions71.14 50.82
(e)Business Combinations
Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which
control is transferred to the Company. They are deconsolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains or losses on transactions between Group companies are eliminated. Accounting policies of subsidiaries
are changed when necessary to ensure consistency with the policies adopted by the Company.
Name of EntityPrincipal activity
Enprise Group Limited (the company) and its subsidiaries (together the Group) is a high-tech software and services investment company. The company is a limited
liability company incorporated and domiciled in New Zealand and is listed on the New Zealand Stock Exchange (NZX). The Group is registered under the Companies
Act 1993 and is a FMC Reporting Entity under Part 7 of the Financial Markets Conduct Act (FMCA) 2013. The address of its registered office is 16 Hugo Johnston
Drive, Penrose, Auckland.
These consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP), the Companies
Act 1993, the FMCA 2013 and NZX listing rules. They comply with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS), other New
Zealand accounting standards and authoritative notices that are applicable to entities that apply NZ IFRS. The consolidated financial statements also comply with
International Financial Reporting Standards (IFRS). The Group is a for-profit entity for the purposes of complying with NZ GAAP.
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets and liabilities at fair value.
The consolidated financial statements are presented in New Zealand dollars which is the Company's functional currency and the Group's presentation currency. All
financial information has been prepared in thousands, unless otherwise stated.
The principal accounting policies adopted in the preparation of the financial report are set out in the accompanying notes and indicated by the shaded text. These
policies have been consistently applied to all the periods presented, unless otherwise stated.
Country of incorporation
The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to
former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For the iSell Pty Limited business combination, the non-controlling
interest in the acquiree is measured at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.
On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for appropriate classification and designation
in accordance with the contractual terms, economic conditions, the consolidated entity's operating or accounting policies and other pertinent conditions in existence at
the acquisition-date.
Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest in the acquiree at the acquisition-date
fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss.
These financial statements should be read in conjunction with the Auditor's report.
11

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1BASIS OF PREPARATION (CONTINUED)
(e)Business Combinations (continued)
(f)Foreign currency translation
(g)Financial instruments
Financial assets
Classification of financial assets
Financial assets that meet the following conditions are measured subsequently at amortised cost:
- the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
Financial assets that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVOCI):
- the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and
By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).
Effective interest method
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
The consolidated financial statements are presented in New Zealand dollars, which is the Group’s presentation currency. Items included in the financial statements of
each of the subsidiaries are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”).
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquiree and the fair value of the
consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-
existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain
directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of the net assets acquired, the
non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity interest in the acquirer.
The results and financial position of entities that have a different functional currency are translated to NZD as follows: assets and liabilities are translated at the
exchange rate at balance date and income statement items are translated at the average exchange rates for the year. Exchange differences are recognised in other
comprehensive income as a currency translation reserve movement.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the profit and loss.
Financial assets and financial liabilities are recognised in the Group’s statement of financial position when the Group becomes a party to the contractual provisions of
the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets
and financial liabilities are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets are recognised immediately in profit or loss.
Financial assets are classified into the following specified categories: 'fair value through other comprehensive income' and 'amortised cost'. The classification
depends on the business model and contractual terms of the financial assets and is determined at the time of initial recognition. All regular way purchases or sales
of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require
delivery of assets within the time frame established by regulation or convention in the marketplace.
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The
effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the
effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or (where appropriate) a shorter period,
to the net carrying amount on initial recognition.
Income is recognised on an effective interest basis for debt instruments.
These financial statements should be read in conjunction with the Auditor's report.
12

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1BASIS OF PREPARATION (CONTINUED)
(g)Financial instruments (continued)
Impairment of financial assets
Measurement and recognition of expected credit losses
Derecognition of financial assets
Financial liabilities
Derecognition of financial liabilities
(h)Critical accounting judgements and estimates
Judgements and estimates which are material to the financial statements are found in the following notes:
(a) Revenue recognition (note 3).
(b) Taxation (note 6(d)).
(c) Intangible assets (note 17).
(d) Investments in other entities (note 15).
(e) Lease liabilities (note 20).
(f) Impairment (note 17).
In the process of applying the Group's accounting policies and the application of accounting standards, a number of estimates and judgements have been made. The
estimates and underlying assumptions are based on historical experience and adjusted for current market conditions and other factors, including expectations of
future events that are considered to be reasonable under the circumstances. If outcomes within the next financial period are significantly different from assumptions,
this could result in adjustments to carrying amounts of the asset or liability affected.
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or have expired. The difference between the
carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.
On derecognition of a financial asset, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the
cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity, is recognised in profit or loss.
Financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The
effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of
the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter
period, to the net carrying amount on initial recognition.
The Group recognises a loss allowance for expected credit losses on financial assets that are measured at amortised cost and contract assets. The amount of
expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the
exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward‑looking information as
described above.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have
to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset
and also recognises a collateralised borrowing for the proceeds received.
These financial statements should be read in conjunction with the Auditor's report.
13

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
2SEGMENT INFORMATION
(a)Operational performance
Revenue
Operating profit
Business segments
30 June 202130 June 202030 June 202130 June 2020
12 mths $'00015 mths $'00012 mths $'00015 mths $'000
Enterprise Division 15,239 12,251 2,404 2,607
iSell865 169 (1,003) 49
Corporate9 - (772) (1,075)
- -
16,113 12,420 629 1,581
Equity earnings of associates and joint ventures(130) (276)
Net interest expense(129) (39)
- -
Profit/(loss) before taxation370 1,266
- -
Income Tax402 93
- -
Net profit/(loss) attributable to shareholders772 1,359
Revenue
Operating profit
Geographic segments
30 June 202130 June 202030 June 202130 June 2020
12 mths $'00015 mths $'00012 mths $'00015 mths $'000
New Zealand4,517 6,324 438 826
Australia11,387 6,093 356 752
EMEA**107 2 (156) 2
North America4 1 (9) 1
Asia98 - - -
- -
16,113 12,420 629 1,581
-
** Europe, Middle East and Africa
- -
(b)Interest, deprecation and amortisation
Interest revenue
Interest expense
30 June 202130 June 202030 June 202130 June 202030 June 202130 June 2020
12 mths $'00015 mths $'00012 mths $'00015 mths $'00012 mths $'00015 mths $'000
New Zealand4 72 72 63 194 267
Australia1 1 62 49 1,152 438
5 73 134 112 1,346 705
- - - - -
(c)Balance sheet informationNon Current Asset
Total assets
Total liabilities
30 June 202130 June 202030 June 202130 June 202030 June 202130 June 2020
$'000$'000$'000$'000$'000$'000
Enterprise Division 8,926 9,207 15,730 16,521 7,547 10,372
iSell3,835 3,888 4,699 4,579 1,134 1,086
Corporate833 628 2,226 4,632 181 505
13,594 13,723 22,655 25,732 8,862 11,963
Inter-segment elimination- - 175 (2,425) 175 (2,425)
13,594 13,723 22,830 23,307 9,037 9,538
New Zealand3,117 2,982 6,643 8,336 2,667 2,969
Australia10,477 10,741 16,260 17,027 6,443 8,625
13,594 13,723 22,903 25,363 9,110 11,594
Inter-segment elimination- - (73) (2,056) (73) (2,056)
- -
13,594 13,723 22,830 23,307 9,037 9,538
- -
The Group is organised into two reportable operating segments based on the business segments. These segments form the basis of internal reporting used by
management and the Board of Directors to monitor and assess performance and assist with strategic decisions. The Board of Directors is the Group's chief operating
decision maker (CODM). Management has determined the operating segments based on the information reviewed by the Board of Directors and the Chief Executive
Officer for the purposes of allocating resources and assessing performance.
Non-current assets other than
financing and deferred tax
Depreciation and
amortisation expense
These financial statements should be read in conjunction with the Auditor's report.
14

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
3REVENUE
Revenue from contracts with customers
- Enterprise software licence revenue
- Support services revenue
- Implementation and consulting revenue
- Other fees such as hosting fees and hardware sales
- iSell revenue
The Group's primary activity is providing software solutions within Australia and New Zealand. From these activities the Group generates the following streams of
revenue:
Each of the above streams delivered to customers are considered separate performance obligations, even though for practical reasons they may be governed by
a single legal contract with the customer. Revenue recognition for each of the above revenue streams is as follows:
Right to access the
software
Right to use the
software
Revenue stream
Performance
obligation
Timing of recognition
Revenue is recognised throughout the licence period and in the period in which the service occurs
Customers are typically invoiced in arrears for usage rendered. The revenue is shown as a contract asset
on the balance sheet as the performance obligation has been met and released to the statement of
comprehensive income but the client has not yet been invoiced. Clients invoiced annually are held on the
balance sheet and the revenue released monthly as the performance obligation occurs
Services and support revenue -
Support contracts
Support contract revenue is recognised at a point in time as the services are delivered. The contract is
between the customer and Enprise, as principal.
Revenue from providing support services is recognised in the accounting period in which the services are
rendered. Revenue is calculated based on time and cost incurred, a fixed monthly charge or a combination
of both.
Recognition is determined based on the contract with the customer. This can be:
- actual labour hours spent to resolve the query,
- an agreed monthly charge plus actual labour hours spent to resolve the query not covered by the monthly
agreed charge, and
- an agreed monthly charge.
Customers are typically invoiced monthly when the job has been closed. Consideration is payable when
invoiced and corresponds directly to the performance completed to date in respect to this revenue stream.
Revenue is recognised at a point and time when the solution has been delivered .
Revenue provided from services is recognised in the accounting period in which the solution has been
provided.
Recognition is determined based on the contract, either a fixed price or actual labour hours spent. Revenue
is recognised in full at the end of the project when go-live has occurred.
Customers are typically invoiced throughout the project and consideration is payable when invoiced. The
revenue is shown as a contract liability on the balance sheet until such time as the performance obligation
has been met and released to the statement of comprehensive income.
Revenue is recognised at a point and time, and in the period in which the software has been invoiced.
Customers are typically invoiced for a period of time for expected upcoming usage as they are typically not
yet able to use or be migrated to the new cloud system. Annual charges for legacy system customers
invoiced after 1 January 2021 comes with the promise of a credit if the customer transitions to the new cloud
system during the invoiced period. Revenue with this promise is deferred and recognised monthly
Revenue is recognised during the period in which the services have been rendered or the goods supplied.
iSell Revenue - Software licence
revenue legacy system
Enterprise software licence
revenue
Services and support revenue -
Implementation and consulting
revenue
At completion of data
conversions, user
acceptance testing
(UAT) or specific
solution provided.
Closure of support
query or standing
ready to provide
support
Initial access or
continued access to
the software
- Training
- Hardware
Revenue is recognised during the period in which the services have been rendered or the goods supplied. - Hosting services
Other fees
iSell Revenue - Software licence
revenue cloud system
iSell Revenue - Other - Onboarding fees
- Data services
Revenue is recognised during the period in which the services have been rendered or the goods supplied.
Software licence revenue under NZ IFRS 15 is recognised through an agency arrangement and therefore
the agency revenue margin is recognised in the statement of comprehensive income.
The revenue is calculated based on commission margin percentages agreed between the Group and the
third-party licenser.
The agency commission is recognised at a point in time when the customer gains access to the system or is
provided with continued use of the software, generally through providing a code to enable continued access.
Customers are typically invoiced annually (but sometimes monthly) for recurring software licences and
commissions are recognised once the performance obligation has been satisfied.
ExoHosted Revenue
These financial statements should be read in conjunction with the Auditor's report.
15

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
3REVENUE (CONTINUED)
30 June 202130 June 2020
12 mths $'00015 mths $'000
- -
Revenue from Enterprise software and licences
4,280 3,507
- -
Revenue from services and support
9,934 7,836
- -
Revenue from iSell
865 169
Revenue from hosting services
1,032 903
- -
Revenue from other fees
2 5
- - 16,113 12,420
Software and licencesServices and supportITQuoter RevenueExoHostedother fees
30 June 2021
12 months
$'000$'000$'000$'000$'000$'000
-
New Zealand
1,401 2,562 96 456 2 4,517
-
Australia
2,879 7,372 560 576 - 11,387
EMEA*
- - 107 - - 107
North America
- - 4 - - 4
Asia
- - 98 - - 98
- - 4,280 9,934 865 1,032 2 16,113
* Europe, Middle East and Africa
30 June 2020
15 months
$'000$'000$'000$'000$'000$'000
-
New Zealand
1,788 4,074 11 449 2 6,324
-
Australia
1,719 3,762 155 454 3 6,093
-
EMEA*
- - 2 - - 2
-
North America
- - 1 - - 1
- - 3,507 7,836 169 903 5 12,420
30 June 202130 June 2020
12 mths $'00015 mths $'000

Recurring revenue from Enterprise software licences
3,321 2,809

Contracted revenue from hosting and support agreements
2,645 1,641

Revenue from other services
9,273 7,801
15,239 12,251
- -
30 June 202130 June 2020
12 mths $'0001 mth $'000

Recurring revenue from iSell software licences
684 141

Revenue from other services
181 28
865 169
- -
Critical accounting judgements and estimates
The group does not expect to recognise any revenue on existing contracts outside the 12 months post year end.
4OTHER INCOME
(a)Government assistance
30 June 202130 June 2020
12 mths $'00015 mths $'000
COVID-19 government assistance
753 935
- - 753 935
Revenue from
hosting services
Revenue from
software and
licences
Enterprise division revenue
Revenue by geographical
location
Revenue from
iSell
Revenue from
other fees
Total
Revenue by geographical
location
Revenue from
services and
support
Revenue from
other fees
Revenue from
hosting services
Some contracts include multiple deliverables, such as software licences and implementation services. However, because the implementation does not include
material customisation to the software and could be provided by another party, the implementation services are accounted for as a separate performance
obligation from software licences. In this case, the transaction price will be allocated to each performance obligation based on the standalone selling prices.
COVID-19 payments are recognised in the profit and loss when the right to receive the government assistance has occurred. COVID-19 payments have been
received from the New Zealand Government (wage subsidy) during the prior year and the Australian Government (JobKeeper and cash flow boost) in both the
current and prior year.
Revenue from
services and
support
Revenue from
iSell
(1 month)
Total
Revenue from
software and
licences
iSell revenue
These financial statements should be read in conjunction with the Auditor's report.
16

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
5OPERATING EXPENSES
(a)Other gains and losses
30 June 202130 June 2020
12 mths $'00015 mths $'000
Net foreign exchange gains/(losses)
- 60
- - - 60
(b)Finance income and costs
Interest income
Interest expense
30 June 202130 June 2020
12 mths $'00015 mths $'000
Finance income
Interest from financial assets held for cash management purposes
2 2
Interest from loans to related parties
- 68
Interest from other loans and receivables
3 3
5 73
Finance costs
Interest on bank overdrafts and loans
(28) (68)
Interest on lease liabilities
(106) (44)
(134) (112)
- - Net finance income and costs(129) (39)
(c)Other operating expenses
Low-value and short-term lease costs:
30 June 202130 June 2020
12 mths $'00015 mths $'000
Advertising and marketing
233 163
Amortisation
476 184
Auditors' remuneration
137 174
Bad and doubtful debts expense
63 91
Communications
177 156
Depreciation
873 521
Hosting costs
687 458
Insurance
101 60
Legal fees
41 16
Low-value and short-term lease costs
87 69
Professional services
127 209
Subcontractors
657 556
Travel expenses
83 269
Other operational expenses
689 573
- - 4,431 3,499
(i) Amortisation
30 June 202130 June 2020
$'000$'000
Amortisation of software (note 17)273 22
Amortisation of customer relationships (note 17)203 162
476 184
- -
Interest income is recognised in the statement of comprehensive income using the effective interest method. The effective interest method calculates the
amortised cost of a financial asset or liability and allocates the interest income over the relevant period.
Interest costs are expensed in the period in which they are incurred.
Other operating expenses include:
Leases that are not classified as a right-to-use asset have been classified as low-value and short-term leases. Payments associated with short-term leases and
leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or
less. Low-value assets comprise IT-equipment and small items of office furniture.
These financial statements should be read in conjunction with the Auditor's report.
17

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
5OPERATING EXPENSES (CONTINUED)
(ii) Auditors' remuneration
30 June 202130 June 2020
$'000$'000
For auditing the Group financial statements
RSM Hayes Audit136 125
Baker Tilly Staples Rodway Auckland- 48
Other Services
Audit of iSell Philippines (R.P. Mora Accounting and Law Office)1 1
137 174
- -
(iii) Bad and Doubtful Debts
30 June 202130 June 2020
$'000$'000
Bad debts recognised119 33
Changes in provision for bad and doubtful debts(56) 58
63 91
- -
(iv) Depreciation
30 June 202130 June 2020
$'000$'000
Property plant and equipment (note 16)146 104
Right-of-use assets (note 18)727 417
873 521
- -
(d)Employee benefit expense
30 June 202130 June 2020
$'000$'000
Wages and salaries
11,087 7,822
Superannuation
629 401
Directors fees
90 112
11,806 8,335
These financial statements should be read in conjunction with the Auditor's report.
18

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
6TAXATION
(a)Income tax recognised in profit or loss
Temporary differences that can reasonably be foreseen in the next accounting period have been recognised as a deferred tax asset.
30 June 202130 June 2020
$'000$'000
Current tax
Current tax on profits for the year
- -
Total current tax expense
- -
Total deferred tax expense/(benefit)
(402) (93)
- - Total income tax expense/(benefit)(402) (93)
(b)Reconciliation of income tax expense to prima facie tax payable
30 June 202130 June 2020
$'000$'000
Profit before income tax
370 1,266
Tax at the New Zealand domestic tax rate of 28%
104 354
Adjusted for the tax effect of:
Non deductible expenses
267 201
Non assessable income
(96) (72)
Difference in overseas tax rates
11 (15)
Previously unrecognised tax losses
(688) (561)
Total deferred tax expense/(benefit)
(402) (93)
- -
- - Total income tax expense/(benefit)(402) (93)
(c) Current tax assets and liabilities
30 June 202130 June 2020
$'000$'000
Current tax assets
Income tax refundable
1 -
- - 1 -
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities
based on the current period’s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the
reporting date.
Deferred tax assets are reviewed at each reporting 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 asset to be recovered.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the
corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets
are recognised for all deductible temporary differences and unutilised tax losses to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences and unutilised tax losses can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary
difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit.
These financial statements should be read in conjunction with the Auditor's report.
19

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
6TAXATION (CONTINUED)
(d)Deferred tax balances
30 June 202130 June 2020
$'000$'000
The balance comprises temporary differences attributable to:
Future benefit of losses incurred
680 370
Future benefit of provisions and accruals
167 117
Employee benefits
350 444
Contract liabilities
338 312
Lease liabilities
425 503
- -
Total deferred tax asset
1,960 1,746
30 June 202130 June 2020
$'000$'000
The balance comprises temporary differences attributable to:
Customer relationships
(137) (216)
Contract asset
(169) (185)
Right-of-use asset
(399) (492)
- -
Total deferred tax liability
(705) (893)
Movements
$'000$'000$'000$'000$'000
At 1 April 2019
11 (19) 153 139 284
(Charged)/credited
to profit or loss
- 35 (78) 154 111
arising from business combinations
- (232) 295 395 458
-
At 30 June 2020
11 (216) 370 688 853
- - - -
Movements
$'000$'000$'000$'000$'000
At 1 July 2020
11 (216) 370 688 853
(Charged)/credited
-
to profit or loss
15 79 310 (2) 402
-
At 30 June 2021
26 (137) 680 686 1,255
- - - -
Critical accounting judgements and estimates
(e) Imputation credits available for use
30 June 202130 June 2020
$'000$'000
New Zealand imputation credits available
- -
Total
Provisions
& accruals
(inc employee benefits)
Customer
relationships
Tax losses
Right-of use
assets & lease
liabilities
Right-of use
assets & lease
liabilities
Customer
relationships
Tax lossesTotal
Provisions
& accruals
(inc employee benefits)
Deferred tax liability
The Group has recognised a deferred tax asset on its statement of financial position as at the reporting date. Significant judgement is required in determining if the
utilisation of deferred tax assets is probable. The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable
taxable profits will be available in the future against which the reversal of temporary differences can be deducted. To determine the future taxable profits, reference
is made to the latest forecasts of future earnings of the Group. Where the temporary differences are related to losses, relevant tax law is considered to determine
the availability of the losses to offset against the future taxable profits.
Judgement is required to assess the deferred tax asset in relation to losses available. The balance represents the reasonable benefit that the Group is expected to
utilise in the next two financial years (last year: one financial year). The Directors have not recognised the benefit of unutilised tax losses beyond two years due to
uncertainty with regards to future shareholder continuity.
Subject to the provisions of the Income Tax Act 2007, the benefit of these credits may be passed to the shareholders as imputed tax paid on future dividends.
Subject to the various income tax legislations being met the losses carried forward at 30 June 2021 are estimated to be $4,420,842 (last year: $6,352,724) of which
$2,427,142 have been recognised as a deferred tax asset (last year: $1,321,867). Deferred tax losses are not recognised in relation to iSell Pty Limited, which has a
further AUD2,773,000 of losses to carry forward.
Deferred tax asset
These financial statements should be read in conjunction with the Auditor's report.
20

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
7EARNINGS PER SHARE
There are no instruments that could potentially dilute earnings per share.
30 June 202130 June 2020
$'000$'000
Earnings for the purpose of basic and diluted earnings per share:
Net profit attributable to shareholders
1,098 1,336
Weighted average number of ordinary shares for basic earnings per share
16,035 11,450
Basic and diluted earnings per share (cents)
6.85 11.67
8TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognised at cost less any provision for impairment. All trade and other receivables have been classified as current assets.
30 June 202130 June 2020
$'000$'000
Trade receivables
2,628 2,379
Related party receivable (note 22(d)).
3 -
Other receivables
102 454
Provision for impairment
(102) (158)
2,631 2,675
Prepayments
190 278
- -
2,8212,953
Allowance for impairment loss
The average credit period on sales of licences and services is 40 days. No interest is charged on outstanding trade receivables.
Bad debts are written-off when they are considered to have become uncollectable.
The aging of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rateCarrying amountAllowance for impairment
30 June 202130 June 202030 June 202130 June 202030 June 202130 June 2020
$'000$'000$'000$'000
0-30 days
1.0%1.0%
1,958 1,720
2017
31-60 days
5.0%5.0%
424 309
2115
61-90 days
10.0%10.0%
111 70
127
+91 days
35.0%42.5%
138 280
49119
2,6312,379102158
- - - -
30 June 202130 June 2020
$'000$'000
At period start
(158) (100)
Provisions acquired on business combination- (80)
Additional provisions recognised(63)(94)
Receivables written off during the year119116
- - At period end
(102)(158)
Movements in the provision for impairment loss were as follows:
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Company by the weighted average number of shares on issue during
the year. Diluted earnings per share assumes conversion of all dilutive potential ordinary shares in determining the denominator.
The Group has used specific identification on all overdue debtors. The Group measures the loss allowance on the balance of trade receivables at an amount equal
to lifetime expected credit losses (ECL). The ECL on trade receivables are estimated using a provision matrix referring to past default experience of the debtors and
an analysis of the debtors' current financial position, adjusted for factors that are specific to the debtors, general economic conditions in which the debtors operate
and an assessment of both the current and forecast direction of conditions at the reporting date.
These financial statements should be read in conjunction with the Auditor's report.
21

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
9CONTRACT ASSETS
30 June 202130 June 2020
$'000$'000
- -
Contract assets713646
The reconciliation of the values at the beginning and end of the current and previous financial year are set out below:
30 June 202130 June 2020
$'000$'000
Balance at the beginning of the period
646296
Acquired from business combinations
- 39
Transfer from contract assets to expenses
(646)(335)
Costs incurred for work performed but not yet recognised
713646
Balance at the end of the period
713646
10OTHER ASSETS
30 June 202130 June 2020
$'000$'000
- - Security deposits
54154
Classified as
Current - -
Non-current54 154
54 154
11TRADE AND OTHER PAYABLES
30 June 202130 June 2020
$'000$'000
Trade payables
1,016 1,307
Related party payables (note 22(d)).
20 52
Payroll taxes and other statutory liabilities
693 481
Other payables and accruals
826 947
- -
2,5552,787
A contract asset is recognised for amounts relating to services rendered but not yet recognised. The costs recognised as contract assets are released to the
statement of comprehensive income when the related revenue for the contract is released.
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and
are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the
reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
These financial statements should be read in conjunction with the Auditor's report.
22

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
12PROVISIONS
Wages, salaries, annual leave, long service leave
30 June 202130 June 2020
$'000$'000
- - Employee benefits
1,7061,501
Classified as
- - Current 1,525 1,232
- - Non-current181 269
- - 1,706 1,501
13CONTRACT LIABILITIES
30 June 202130 June 2020
$'000$'000
- - Contract liabilities2,362 1,989
The reconciliation of the values at the beginning and end of the current and previous financial period are set out below:
30 June 202130 June 2020
$'000$'000
Balance at the beginning of the period
1,989705
Acquired from business combinations
- 35
Decrease due to revenue recognised from performance obligations satisfied
(1,989)(703)
Invoices raised for work performed but not yet recognised
2,3621,952
Balance at the end of the period
2,3621,989
Liabilities for wages and salaries, including non-monetary benefits, and annual leave are recognised in respect of employees’ services up to the reporting date.
They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities recognised in respect of other long-term employee benefits are
measured at the present value of the estimated future cash outflows expected to be made by the Group in respect of services provided by employees up to the
reporting date.
A contract liability is recognised for amounts received or due relating to services performed or expected to be performed. The Group's revenue recognition policy is
stated at Note 3 which details when each class of revenue is released to the profit and loss.
These financial statements should be read in conjunction with the Auditor's report.
23

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
14INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
30 June 202130 June 2020
$'000$'000
Carrying amount at the beginning of the period628 3,440
Impact of changes in carrying amount as a result of NZ IFRS 16- (49)
628 3,391
New investment in joint ventures and associates335 1,118
Reduction in investments due to business combinations- (3,517)
-
Equity earnings/(losses) from associates and joint ventures
(474) (618)
- -
Other gains/(losses) related to associates and joint ventures
344 257
Currency translation- (3)
- -
833628
30 June 202130 June 2020
$'000$'000
Datagate Innovation Limited833 628
- -
833628
(a)Joint ventures and associates
Percentage ownership
30 June 202130 June 2020
Datagate Innovation LimitedNew ZealandSoftware sales32.02 33.50
If the carrying amount of the equity accounted investment exceeds its recoverable amount, it is written down to the latter. When the Group's share of accumulated
losses in an associate or joint venture equals or exceeds its carrying value, the Group does not recognise further losses, unless it has incurred obligations or made
payments on behalf of the associate or joint venture
The requirements of NZ IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group’s investment in an
associate or a joint venture. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with NZ IAS 36
as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss
recognised is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment. Any reversal of that impairment loss is
recognised in accordance with NZ IAS 36 to the extent that the recoverable amount of the investment subsequently increases.
Investments in joint ventures and associates are accounted for using the equity method and are measured in the statement of financial position at cost adjusted for
the Group's share of the profit or loss and other comprehensive income of the associate or joint venture. Goodwill relating to associates and joint ventures is included
in the carrying amount of the investment.
On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of the net fair value of the
identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment.
Carrying amount of joint ventures and associates
Investment by joint venture or associate
The Group's joint venture and associates at 30 June 2021 are set out below. The country of incorporation or registration is New Zealand, their principal places of
business are New Zealand and North America.
Name of EntityPrincipal Activity
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint
control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of
the parties sharing control.
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the
power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.
Country of incorporation
These financial statements should be read in conjunction with the Auditor's report.
24

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
14INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (CONTINUED)
(b)Summary financial information
30 June 202130 June 2020
$'000$'000
Net assets 606557
Proportion of the Group's ownership interest in the equity accounted investment194187
Goodwill639441
Carrying amount of the Group's interest in the equity accounted investment
833628
30 June 202130 June 2020
$'000$'002
Assets and liabilities of joint ventures are as follows:
Current assets
1,132 747
Non-current assets
117 377
Current liabilities
(283) (282)
Non-current liabilities
(360) (285)
606557
Results of equity accounted investment
12 mths $'00015 mths $'000
Revenue
1,481 1,160
Losses after taxation
(1,434) (1,740)
Total comprehensive income
(1,434) (1,740)
Group share of loss
(474)(603)
The Enprise group recorded the following within its statement of comprehensive income for the period related to Datagate
Gain on dilution344 257
Share of operating loss(474) (603)
Total recognised within the group's profit
(130)(346)
30 June 202130 June 2020
$'000$'002
Balance sheet
Cash and cash equivalents
879 533
Trade and other receivables
238 193
Trade and other creditors
(118) (209)
Property, plant and equipment
27 19
Intangible assets
90 358
Profit and loss
Depreciation and amortisation
245 476
Interest income
- -
Datagate Innovation Limited
Summary of joint venture's financial statements
Other key financial information
Datagate Innovation Limited (Datagate) is a software company which provides online billing solutions for telecommunication services and other usage based services.
Datagate has been involved in a number of capital raising events including in December 2020 where the Group acquired an additional 152,290 shares but was
diluted. As a direct result of the capital raising the Group has recognised a gain on dilution of $224,495 (last year: $256,605). Additional shares issued on 31 March
2021 further diluted Enprise's shareholding resulting in an additional gain on dilution of $119,226.
Datagate is a limited liability company whose legal form confers separation between the shareholders and the company itself. Datagate is governed by a Shareholder
Agreement. The Shareholders Agreement states that at least 75% of the board of directors are required to approve all relevant activities. Up to March 2021, Enprise
had the ability to appoint one out of three directors and therefore previously had joint control. Furthermore, the parties to the joint arrangement have rights to the net
assets of the arrangement on wind up. As a result of an additional director being appointed to the Board in March 2021, Enprise is no longer considered to have joint
control, but retains significant influence over this investment. The investment remains accounted for under the equity method however.
The Board is comfortable that there is no impairment to the carrying value of Datagate due to external investment continuing to be received. The last capital raise in
March 2021 was at $2.20 per share valuing Datagate at $13,811,386. Enprise's shareholding at $2.20 per share would have an implied value of $4,422,873 which
would be substantially higher than the carrying value. If the Board decided to liquidate this asset the recovery is expected to be significantly higher than the carrying
value.
These financial statements should be read in conjunction with the Auditor's report.
25

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
15INVESTMENTS IN OTHER ENTITIES
30 June 202130 June 2020
$'000$'000
Carrying amount at the beginning of the year813 593
- - Changes in fair value of other investments23 220
Share buy back(149) -
- -
687813
30 June 202130 June 2020
$'000$'000
- - Vadacom Holdings Limited
687813
Vadacom Holdings Limited
The table below summarises the quantitative information about the significant unobservable inputs used in this level 3 fair value measurement.
Range of inputs
20212020
Recurring revenue ($'000)2,555 2,500
Non recurring revenue ($'000)1,011 1,353
Recurring revenue multiple4.32x4.20x
Non recurring revenue multiple1.0x1.0x
In November 2017 the Group acquired a 6.49% shareholding in Vadacom Holdings Limited, a cloud based VOIP phone and virtual PABX provider. Subsequent
dilution of shares since acquisition has resulted in a reduction of Enprise's shareholding to 6.23% at balance date.
During the year Vadacom Limited purchased back shares through a share buy back. Enprise considers this repayment a recovery of part of the cost of the
investment. A portion of the buyback has been deferred and is shown as a related party loan (refer note 22(e)).
The Group has made a decision to adopt NZ IFRS 9 to measure the equity investment in Vadacom Holdings Limited at fair value through other comprehensive
income (FVOCI).
Carrying amount of investments in other entities
Management continues to hold the assets for the medium to long term and the assets are therefore recognised as non-current. The Group revalued the investments
at fair market value at the end of the financial year.
At 30 June 2021 the shares in Vadacom Holdings Limited have been independently valued at $14.75 (last year: $14.25) resulting in a gain of $23,273 (last year:
$219,631). This gain has been recognised as other comprehensive income.
Relationship of unobservable inputs to fair value
Increasing recurring revenue, non recurring revenue, the recurring revenue
multiple, and the non recurring revenue multiple each by 5% would increase fair
value by $76,930 (last year: 4%; $62,380). Lowering each of the above inputs by
5% would decrease fair value by $73,170 (last year: 4%;$59,940).
Unobservable inputs
These financial statements should be read in conjunction with the Auditor's report.
26

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
16PROPERTY PLANT AND EQUIPMENT
Computer equipment20-50%
Furniture and fittings10-50%
Office equipment10-50%
$'000$'000$'000$'000
At 1 April 2019
Cost214 182 88 484
Accumulated depreciation(179) (145) (77) (401)
Net book value35 37 11 83
Period ended 30 June 2020
Opening net book value amount35 37 11 83
Additions through business combinations137 103 11 251
Additions43 - 4 47
Reclassifications4 - (4) -
Depreciation charge(67) (32) (5) (104)
Foreign exchange gain/(loss)4 3 - 7
Closing net book value156 111 17 284
As at 30 June 2020
Cost396 289 100 785
Accumulated depreciation(240) (178) (83) (501)
- Net book value156 111 17 284
Year ended 30 June 2021
Opening net book value amount156 111 17 284
Additions215 4 28 247
Disposals(1) - - (1)
Depreciation charge(113) (22) (11) (146)
Foreign exchange gain/(loss)- - - -
Closing net book value257 93 34 384
As at 30 June 2021
Cost610 293 128 1,031
Accumulated depreciation(353) (200) (94) (647)
- Net book value257 93 34 384
- - - -
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year end.
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use.
Furniture
and fittings
Office
equipment
Total
Computer
equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Such costs include the cost of
replacing parts that are eligible for capitalisation when the cost of replacing the parts is incurred. The cost is recognised in the carrying amount of the plant and
equipment as a replacement only if it is eligible for capitalisation. All other repairs and maintenance are recognised in the statement of comprehensive income as
incurred.
Depreciation on fixed assets is calculated using the diminishing value method to allocate their costs, net of their residual values over their estimated useful lives as
follows:
These financial statements should be read in conjunction with the Auditor's report.
27

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
17INTANGIBLE ASSETS
Goodwill
Customer relationships
Software
$'000$'000$'000$'000
At 1 April 2019
Cost- 329 1,626 1,955
Accumulated amortisation and impairment- (260) - (260)
Net book value- 69 1,626 1,695
Period ended 30 June 2020
Opening net book value amount- 69 1,626 1,695
Additions through business combinations2,643 893 5,747 9,283
Additions- 19 19 38
Exchange differences(12) 19 121 128
Amortisation charge(22) (162) - (184)
Closing net book value2,609 838 7,513 10,960
At 30 June 2020
Cost2,631 1,260 7,513 11,404
Accumulated amortisation and impairment(22) (422) - (444)
- Net book value2,609 838 7,513 10,960
Year ended 30 June 2021
Opening net book value amount2,609 838 7,513 10,960
Additions273 - - 273
Exchange differences24 4 25 53
Amortisation charge(273) (203) - (476)
Closing net book value2,633 639 7,538 10,810
- - -
At 30 June 2021
Cost2,928 1,264 7,538 11,730
Accumulated amortisation and impairment(295) (625) - (920)
- Net book value2,633 639 7,538 10,810
Goodwill is assessed as having an indefinite useful life and is not amortised but is subject to impairment testing annually or whenever there are indications of
impairment.
Total
Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration paid above the fair value of the net identifiable assets, liabilities
and contingent consideration acquired.
Software
Customer
relationships
Goodwill
"In-house" developed software costs are capitalised on completion and amortised on a straight-line basis over the period of their expected benefit, being their finite
life of 10 years. Employment costs associated with developing the software are capitalised when the costs are incurred. The amount of the charges capitalised is
based on the proportionate time each employee spends on developing the software.
For the purpose of impairment testing, goodwill has been allocated to the cash-generating units (CGU). The impairment test is based on an estimated discounted
cash flow analysis (value in use). Estimated future cash flow projections are based on the Group's five-year business plan for the business units.
Customer relationship costs are carried at cost (being assessed from value on acquisition) less accumulated amortisation and accumulated impairment losses.
This intangible asset has been assessed as having a finite life and is amortised using the straight line method over a period of 5 years. The amortisation has been
recognised in the statement of comprehensive income within depreciation and amortisation expense. If an impairment indication arises, the recoverable amount is
estimated and an impairment loss is recognised to the extent that the recoverable amount is lower than the carrying amount. No impairment has been assessed
for the current financial year (last year: nil).
These financial statements should be read in conjunction with the Auditor's report.
28

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
17INTANGIBLE ASSETS (CONTINUED)
Significant intangible assets held are as follows:
Carrying amount
$'000
Customer relationships - Kilimanjaro Consulting Pty Limited525 42 months
Customer relationships - iSell Pty Limited93 47 months
ITQuoter software2,633 107 months
30 June 202130 June 2020
$'000$'000
Enterprise Division - New Zealand
1,227 1,227
Enterprise Division - Australia
5,304 5,283
iSell
1,007 1,003
- -
7,5387,513
New Zealand
Australia
%%
Revenue growth rate (next 5 years)
2.50%2.50%
Discount rate (next 5 years)
18.80%18.80%
iSell Pty Limited
The table below summarises the quantitative information about the significant unobservable inputs used in this level 3 fair value measurement.
Range of inputs
20212020
Recurring revenue (AU$'000)821 740
Non recurring revenue (AU$'000)76 81
Recurring revenue multiple5.635x5.375x
Non recurring revenue multiple1x1x
The carrying amounts of goodwill allocated to the cash generating units are outlined below:
Enterprise Division
It is assumed that cost increases consistent with growth rates except for increases in staff numbers required to support the growth in customer numbers.
Management has performed sensitivity analysis on the Enterprise Division key assumptions and believes that no reasonably foreseen possible changes in any of the
above key assumptions would cause the carrying value of goodwill to be materially lower than its recoverable amount.
Unobservable inputs
Relationship of unobservable inputs to fair value
Increasing recurring revenue, non recurring revenue, the recurring revenue
multiple, and the non recurring revenue multiple each by 5% would increase fair
value by $366,300 (last year: $226,090). Lowering each of the above inputs by
5% would decrease fair value by $350,330 (last year: $215,060).
An independent assessment of the fair value of iSell was conducted at 30 June 2021, for the purpose of considering the fair value less cost of disposal of the cash
generating unit. The Level 3 fair value estimate was higher than the carrying value of the iSell cash generating unit, and indicated a fair value of $5.302m (Enprise's
71.1% share is $3.770m). A fair value of less than $4.733m would indicate impairment, including allowance for costs of disposal and non-controlling interests share
of goodwill.
Remaining
amortisation period
The Enterprise Division was tested for impairment on a value in use basis, based off the 2022 financial year budget and applying the following key assumptions used
in determining the future cash flows from each CGU over the next 5 years are as follows.
These financial statements should be read in conjunction with the Auditor's report.
29

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
18RIGHT-OF-USE ASSETS
PropertyTotal
$'000$'000
At 1 April 2019
Cost767 767
Accumulated depreciation(649) (649)
Net book value recognised on 1 April 2019118 118
Period ended 30 June 2020
Opening net book value amount118 118
Additions1,075 1,075
Acquisitions from business combinations1,058 1,058
Exchange differences17 17
Depreciation charge(417) (417)
Closing net book value1,851 1,851
At 30 June 2020
Cost2,167 2,167
Accumulated amortisation and impairment(316) (316)
Net book value1,851 1,851
Year ended 30 June 2021
Opening net book value amount1,851 1,851
Additions448 448
Exchange differences(4) (4)
Depreciation charge(727) (727)
- Closing net book value1,568 1,568
At 30 June 2021
Cost2,147 2,147
Accumulated amortisation and impairment(579) (579)
- Net book value1,568 1,568
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-
value assets. Lease payments on these assets are expensed to profit or loss as incurred.
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease
liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, and any initial direct costs
incurred by the lease.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
From 1 April 2019, leases are recognised as a right-of-use asset and a lease liability at the lease commencement date.
The sale of the Walker Street, Sydney office building to a new landlord presented an opportunity to renegotiate and relinquish a portion of the occupancy. The new
lease commenced on 1 February 2021 and is for 24 months.
The Group's right-of use assets consist only of property leases which up until 31 March 2019 were classified as operating leases. Payments made under operating
leases (net of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the lease.
These financial statements should be read in conjunction with the Auditor's report.
30

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
19BORROWINGS
Cash on hand and at bank
- - For the purposes of the statement of cash flows, cash and cash equivalents consist of cash on hand and at bank.
Borrowings
30 June 202130 June 2020
$'000$'000
Current cash on hand / (borrowings)
- -
Cash on hand and at bank
2,806 3,169
-
Bank borrowings
- (347)
-
Other borrowings
(50) -
2,756 2,822
Non-current borrowings
Bank borrowings - non current
- (94)
Other borrowings - non current
- (44)
- -
Non-current borrowings
- (138)
Net cash on hand
2,7562,684
(a)Summary of borrowing arrangements
- An overdraft facility of $1,000,000
- A commercial loan of $2,000,000 of which $1,815,590 is available to redraw at 30 June 2021
Neither the loan or overdraft facility has been drawn on at balance date.
(b)Reconciliation of liabilities arising from financing activities
Bank borrowingsOther borrowingsLease Liabilities
$'000$'000$'000
Balance as at 1 April 2019
635 - -
Adoption of IFRS16- - 157
Acquisitions from business combinations152 135 -
Non-cash changes(27) 2,140
Financing cash flows(350) (65) (415)
Exchange differences4 1 1
-
Balance as at 30 June 2020
441 44 1,883
Non-cash changes- 8 437
- - Financing cash flows(441) (2) (656)
Exchange differences- - (5)
- Balance as at 30 June 2021- 50 1,659
- - -
Cash and cash equivalents in the statement of financial position are comprised of cash at bank and in hand and short term deposits with an original maturity of
three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
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:
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference
between the net proceeds and the redemption amount is recognised in the profit and loss over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance
date.
The Bank of New Zealand (BNZ) has provided the following facilities to Enprise Group Limited:
The Group acquired historical unsecured borrowings and amounts owing to third parties on the acquisition of iSell Pty Limited. Those outstanding at balance date are
as follows:
- An interest only loan of AU$11,000 due to a shareholder of iSell (Bullitt Super Fund). The interest rate at 30 June 2021 is 10.9% (last year 10.9%). The loan as
been repaid subsequent to year end.
- At balance date AU$35,517 remains owing to an ex employee for an original settlement on 30 June 2015 of AU$120,000. The interest rate at balance date is 5%.
The bank loans owing to ASB and CBA were repaid in full during the year. Previous overdraft facilities with CBA and ASB have also been relinquished during the
year.
These financial statements should be read in conjunction with the Auditor's report.
31

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
20LEASE LIABILITIES
30 June 202130 June 2020
$'000$'000
- - Lease liabilities1,659 1,883
Classified as
- - Current 572 704
- - Non-current1,087 1,179
- - 1,659 1,883
(a)Remaining contractual cash flows
Maturity analysis of the contractual undiscounted cash flows are as follows:
30 June 202130 June 2020
$'000$'000
Not later than one year 642 815
Later than one year but not later than 5 years938 891
Later than 5 years 326 498
1,906 2,204
(b)Amounts recognised in statement of comprehensive income
30 June 202130 June 2020
12 mths $'00015 mths $'000
Interest on lease liabilities106 50
Expenses relating to short term leases63 58
169 108
(c)Amounts recognised in statement of cash flows
30 June 202130 June 2020
12 mths $'00015 mths $'000
Interest element of lease payments106 50
Principal elements of lease payments656 415
- -
(d)Critical accounting judgements and estimates
Lease Term
Incremental borrowing rate
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made
over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate.
Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to
be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Cash outflows recognised within cash flows from operating activities
Cash outflows recognised within cash flows from financing activities
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is exercised in determining whether
there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will not be
exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical
incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may
include the importance of the asset to the Group's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties;
existence of significant leasehold improvements; and the costs and disruption to replace the asset. The Group reassesses whether it is reasonably certain to
exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future
lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a
lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully
written down.
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure
the present value of the lease liability at the lease commencement date. Such a rate is based on what the Group estimates it would have to pay a third party to
borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment.
These financial statements should be read in conjunction with the Auditor's report.
32

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
21EQUITY
(a)Share capital
Number of authorised sharesShare capital
Contributed equity - ordinary shares
30 June 202130 June 202030 June 202130 June 2020
sharesshares$'000$'000
Opening ordinary shares15,900,895 9,577,570 10,749 6,566
Issue of ordinary shares - Kilimanjaro acquisition- 2,854,649 - 2,147
Issue of ordinary shares - iSell share swap- 1,197,234 - 900
Issue of ordinary shares - Rights issue - 2,271,442 - 1,136
Issue of ordinary shares - Dividend reinvestment plan256,804 - 261 -
- - 16,157,699 15,900,895 11,010 10,749
(b)Dividends
30 June 202130 June 202030 June 202130 June 2020
cents per sharecents per share$'000$'000
Final dividend for the period ended 30 June 20202.00 - 318 -
Interim dividend for the period ended 30 June 20212.00 - 321 -
- - 4.00 - 639 -
22RELATED PARTY TRANSACTIONS
(a)Interest in other Entities
(b)Ultimate Parent
The ultimate parent entity and controlling party is Enprise Group Limited. The Parent is domiciled in New Zealand.
(c)Transactions with Related Parties
During the period, the Group entered into the following trading transactions with related parties.
Sale of services Purchase of services
Name of Entity
30 June 202130 June 202030 June 202130 June 2020
$'000$'000$'000$'000
Kilimanjaro Consulting Pty Limited**n/a321 n/a46
Vadacom Limited*12 7 - -
Next Telecom*- - 25 102
iSell Pty Limited***n/a107 n/a-
Nicholas Paul (Director) - consultancy fees (see note 22(f))- - 180 135
12 435 205 283
* Vadacom Limited and Next Telecom Limited are subsidiaries of Vadacom Holdings Limited
** The related party transactions for the previous period are up to the date of acquisition (1 January 2020)
*** The related party transactions for the previous period are up to the date of acquisition (27 May 2020)
The Group's principal subsidiaries are set out in note 1(d). Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly
by the Group. The country of incorporation or registration is also their principal place of business.
On 24 August 2021 the Directors resolved to provide for a final dividend to be paid in respect of the period ended 30 June 2021. The dividend has been paid at a
rate of 2.5 cents per share for all shares on issue at 7 September 2021. No shares have been issued under the dividend reinvestment plan. No imputation credits
are available to be attached.
All shares on issue are fully paid. All ordinary shares rank equally with one vote attached to each fully paid ordinary share and have equal dividend rights and no par
value.
Share capital comprises of ordinary shares only. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net
of tax, from the proceeds.
On 23 October 2020, 150,693 shares were issued under the dividend reinvestment plan at $1.0378 per share. On 16 March 2021, 106,111 shares were issued
under the dividend reinvestment plan at $0.9883 per share.
These financial statements should be read in conjunction with the Auditor's report.
33

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
22RELATED PARTY TRANSACTIONS (CONTINUED)
(d)Outstanding balances arising from sales/purchases of goods and services
The following balances are outstanding at the end of the reporting period in relation to transactions with related parties.
Amounts owed by related partiesAmounts owed to related parties
Name of Entity
30 June 202130 June 202030 June 202130 June 2020
$'000$'000$'000$'000
Next Telecom Limited- - 3 52
Vadacom Limited3 - - -
The Sales Factory (Nicholas Paul)- - 17 -
3 - 20 52
(e)Loans to/from related parties
Amounts owed by related partiesAmounts owed to related parties
Name of Entity
30 June 202130 June 202030 June 202130 June 2020
$'000$'000$'000$'000
Vadacom Limited87 - - -
- -
87 - - -
- - Current- - - -
- - Non-Current87 - - -
87 - - -
(f)Key management personnel
Key management compensation to directors of the group was as follows:
30 June 202130 June 2020
12 mths $'00015 mths $'000
Salaries, bonuses and commissions438 377
Superannuation22 10
Consultancy fees180 135
Directors' fees90 112
730 634
Key management did not receive any termination benefits during the period (last year: nil).
Key management did not receive and are not entitled to receive any post-employment or long term benefits (last year: nil).
Shares issued to directors/related party interests in relation to the business combination in the prior period are as follows:
$'000Shares
Kilimanjaro put option (1 January 2020)
Red Cow Investments Pty Limited*
1,151
1,530,522
iSell Share swap (1 January 2020)
Nightingale Partners Pty Limited**
450
598,617
*Related party to Ronald Baskind
**Related parties to Lindsay Phillips
(g)Directors' fees
Directors received director's fees as detailed below:
30 June 202130 June 2020
12 mths $'00015 mths $'000
L Phillips40 50
G Cooper- -
N Paul25 31
R Baskind- -
M Fong25 31
- -
90 112
The following balances are outstanding at the end of the reporting period.
These financial statements should be read in conjunction with the Auditor's report.
34

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
23SUBSIDIARIES WITH NON CONTROLLING INTERESTS
iSell Pty Limited
Transactions with non-controlling interests recognised in equity
$'000 $'000 $'000
Purchase from non-controlling interests(155) (421) (576)
Rights issue228 (83) 145
Total transactions with non-controlling interests
73(504)(431)
(a)Summary of financial position
30 June 202130 June 2020
12 mths $'0001 mth $'000
Assets
Cash and cash equivalents
620 472
Trade and other receivables
107 118
Contract assets
36 14
Staff receivables - non current
74 60
Property plant and equipment
21 19
Intangible assets
3,732 3,728
Right-of-use assets - non-current
82 142
Other non-current assets
28 -
Total assets4,700 4,553
Liabilities
Trade and other payables
(288) (276)
Contract liabilities
(143) (72)
Provisions - non-current
(299) (302)
Borrowings - non current
(50) (44)
Lease liabilities - non-current
(79) (134)
Related party payable
(274) (259)
Total liabilities(1,133) (1,087)
Net assets
3,5673,466
- -
(b)Summary of financial performance
30 June 202130 June 2020
12 mths $'0001 mth $'000
Revenue from contracts with customers
865 169
Net profit/(loss)
(1,027) 23
Other comprehensive income
- -
Total comprehensive income/(loss)
(1,027)23
30 June 202130 June 2020
49.18% - 28.86%49.18%
12 mths $'0001 mth $'000
- Total comprehensive income/(loss) attributable to NCI
(326)23
(c)Summary of statement of cash flows
During the year iSell Pty Limited incurred total operating cash outflows of $605,000, total investing outflows of $277,000 and total financing inflows of $1,030,000.
Non-controlling
interests
Attributable to
the parent
Total
Enprise Group Limited acquired a controlling stake in iSell on 27 May 2020. Equity was also introduced by other non-controlling interests amounting to NZ$492,000
which resulted in a non-controlling interest percentage of 49.18% at 30 June 2020. Purchase of shares from non controlling interests on 30 November 2020 and the
rights issue on 1 March 2021 both increased Enprise's shareholding in iSell, ultimately resulting in a non-controlling interest percentage of 28.86% at 30 June 2021.
Enprise Group Limited consolidates 100% of iSell's results and presents the portion of profit/(loss) and other comprehensive income attributable to a non-controlling
interest (NCI).
These financial statements should be read in conjunction with the Auditor's report.
35

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
24CASH FLOW RECONCILIATION
30 June 202130 June 2020
$'000$'000
Profit for the period
772 1,359
Adjustments for:
Depreciation on property plant and equipment
146 104
Depreciation on right-of-use assets
727 417
Amortisation on intangible assets
476 184
Net loss/(gain) on foreign exchange10 (60)
Release of fit out loan- (19)
Impairment loss on trade receivables- 24
Share of loss from equity accounted investments130 276
Movement in deferred tax(402) (580)
Loan issued in exchange for services- (285)
Movements in working capital
(Increase)/decrease in trade and other receivable
78 (1,629)
(Increase)/decrease in contract assets
(67) (350)
(Increase)/decrease in income taxes receivable(1) 1
Increase/(decrease) in trade and other payables(232) 1,777
Increase/(decrease) in provisions205 1,268
Increase/(decrease) in contract liabilities373 1,284
New working capital assumed on acquisition- (1,110)
- -
Net cash inflow from operating activities2,2152,661
-
25CONTINGENT LIABILITIES
There were no material contingent liabilities or assets at balance date (last year: nil).
26SUBSEQUENT EVENTS AFTER BALANCE DATE
Reconciliation of net profit to net cash flows from operations:
The Covid lockdowns have caused some disruption to the business, however the staff are now well versed in remote working which has avoided any significant loss
in productivity subsequent to balance date.
Details of the dividend declared are disclosed in note 21(b).
iSell Pty Limited received an immaterial claim in relation to the outstanding debt due to a former iSell employee as disclosed in note 19(a). iSell Pty Limited is
vigioursly defending anything above the amount already recorded as a liability.
Cash flows are included in the statement of cash flows on a gross basis and includes the GST component of cash flows arising from investing and financing activities,
which is recoverable from, or payable to, the taxation authority is classified as part of operating cash flows.
Enprise Group, on behalf of the Enterprise Division has purchased the intellectual property of Very Impressive Software (VIS) which provides software products
including add-on's for both MYOB Exo and MYOB Advanced. The acquisition of VIS is expected to add over $200,000 in recurring and contracted revenue. It will
enhance our Enterprise Divisions product offerings to both new and existing customers.
These financial statements should be read in conjunction with the Auditor's report.
36

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
27FINANCIAL RISK MANAGEMENT, OBJECTIVES AND POLICIES
(a)Interest rate risk
The local operational bank accounts do not earn interest.
ProfitEquity
30 June 202130 June 202030 June 202130 June 2020
$'000$'000$'000$'000
+1% (100 basis points)1 (4) 1 (4)
- 1% (100 basis points)(1) 4 (1) 4
(b)Credit risk
The Group does not hold any credit derivatives to offset its credit exposure.
(c)Liquidity risk
Contractual maturity analysisless than 6 mths6 - 12 months1 - 3 years> 3 yearsTotal
30 June 2021$'000$'000$'000$'000$'000
-
Trade and other payables2,555 -
- - 2,555
Other borrowings12 38 - - 50
Total
2,567 38 - - 2,605
At 30 June 2021, if interest rates had moved, as illustrated in the table below, with all other variables held constant, post-tax profit and equity would have been
affected as follows:
Funds with financial institutions are held on call or short term deposits. The majority of funds are held across three major Australasian trading banks all with a
Standard and Poor's credit rating of AA-.
Management have reviewed the customer base for industry segments based on SIC codes and have evaluated the credit risk for each segment. There are no
significant concentrations of trade receivable counterparties.
It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures including an assessment of their independent
credit rating, financial position, past experience and industry reputation. Risk limits are set for each individual customer in accordance with parameters set by the
board. These risk limits are regularly monitored.
Liquidity risk is the risk of an unforeseen event or miscalculation in the required liquidity level that will result in the Group foregoing investment opportunities or not
being able to meet its obligations in a timely manner, and therefore gives rise to lower investment income or to higher borrowing costs than otherwise. Prudent
liquidity risk management includes maintaining sufficient cash, and ensuring the availability of adequate amounts of funding from credit facilities.
The table below analyses the Group's financial liabilities collated/grouped into relevant maturity bands, based on the remaining period from balance date to the
contractual maturity date.
The Group’s exposure to market interest rates relates primarily to the Group’s cash deposited in interest-bearing call accounts and term loans. Interest rates are
monitored although there is generally no significant variation in interest rates offered by the different major banks.
The Group’s exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of these instruments.
Exposure at balance date is addressed in each applicable note. The carrying amount of financial assets represents the maximum credit exposure.
The Group trades only with recognised, creditworthy third parties and as such collateral is not requested nor is it the Group’s policy to securitize its trade and other
receivables.
The Group manages its exposure to key financial risks, including interest rate, liquidity risk and currency risk in accordance with the Group’s financial risk
management policy. The objective of the policy is to support the delivery of the Group’s financial targets whilst protecting future financial security.
The Board reviews and agrees policies for managing each of the risks identified below, foreign currency and interest rate risk, credit allowances, and future cash flow
forecast projections.
These financial statements should be read in conjunction with the Auditor's report.
37

Enprise Group Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
27FINANCIAL RISK MANAGEMENT, OBJECTIVES AND POLICIES (CONTINUED)
(c)Liquidity risk (continued)
Contractual maturity analysisless than 6 mths6 - 12 months1 - 3 years> 3 yearsTotal
30 June 2020$'000$'000$'000$'000$'000
-
Trade and other payables2,787 -
- - 2,787
Term loan279 212 102 - 593
Other borrowings3 1 42 1 47
Total
3,069 213 144 1 3,427
(d)Financial instrument classification
30 June 202130 June 2020
$'000$'000
Financial asset at fair value through other comprehensive income687 813
Amortised Cost
Cash and cash equivalents2,806 3,169
Trade receivables (excluding prepayments)2,631 2,675
Staff and related party receivables193 103
6,317 6,760
30 June 202130 June 2020
$'000$'000
Trade and other payables2,555 2,787
Borrowings50 44
2,605 2,831
(e)Foreign currency risk
Each entity in the Group conducts the majority of its transactions in its functional currency.
Financial assets
Financial liabilities at amortised cost
The currency exposure of the Group arises from the effect of any substantial movements in currency rates on the transfer of funds (predominantly in Australian
dollars) to the local currency of the subsidiary to fund operations.
The net exposure is not significant due to the size of the foreign operations and is mitigated by the regular transfer of small advances to spread the currency risk over
time. Although each subsidiary or geographic segment is subject to variations in foreign currency rates, each segment is not material.
These financial statements should be read in conjunction with the Auditor's report.
38

Enprise Group Limited
Corporate Information
for the year ended 30 June 2021
Company Information
New Zealand company number1562383
ARBN (Australian Registered Body Number)125 825 792
ABN (Australian Business Number)41 125 825 792
Contact DetailsNew ZealandPrincipal place of business
Level 2, 16 Hugo Johnston DriveLevel 2, 16 Hugo Johnston Drive
Penrose, Auckland 1061Penrose, Auckland 1061
PO Box 62262Phone: +64 9 829 5500
Sylvia Park
Auckland 1644Registered office
Phone: +64 9 829 5500Level 2, 16 Hugo Johnston Drive
Fax: +64 9 829 5501Penrose, Auckland 1061
Australia Principal place of business – Australia
Level 4, 122 Walker StreetLevel 4, 122 Walker Street
North SydneyNorth Sydney, NSW 2060
NSW 2060
Phone: +61 2 8355 7055
Fax: +61 2 8355 7045
Internet addresswww.enprisegroup.com
Emailinfo@enprisegroup.com
DirectorsGeorge Cooper
Chief Executive Officer
Lindsay Phillips
Chairman
Nicholas Paul
Non-executive Director
Ronald Baskind
Executive Director
Marisa FongNon-executive Director
Share RegisterLink Market Services Limited
Level 7, Zurich House
21 Queen Street
Auckland, New Zealand
Phone: +64 9 375 5990
Enprise Group Limited shares are listed on the NZX Market
AuditorRSM Hayes Audit
LawyerHudson Gavin Martin, Auckland, New Zealand
Chapman Tripp, Auckland, New Zealand
Principal BankersBNZ Bank Limited, Auckland, New Zealand
39

Independent Auditor’s Report
To the shareholdersof
Enprise Group Limited
Opinion
We have audited the consolidated financial statements of Enprise GroupLimitedand its subsidiaries(the
group), which comprise:
- the consolidated statement of financial position as at 30 June2021;
- the consolidated statement of comprehensive income for the year then ended;
- the consolidated statement of changes in equityfor the year then ended;
- the consolidated statement of cash flows for the year then ended; and
- the notes to the consolidated financial statements, which include significant accounting policies.
In our opinion, the consolidated financial statements on pages 7 to 38 present fairly, in all material respects, the
financial position of the groupas at 30 June 2021, and of its financial performance and its cash flows for the
year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards
and International Financial Reporting Standards.
Basis for opinion
We conducted our audit in accordance with 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 statementssection of our report.
We are independent of the groupin accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International IndependenceStandards) (New Zealand) issued by
the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, the group.
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. The two key audit matters identified on the
subsequent pages were addressed in the context of our audit of the consolidated financial statements as a
whole,and in forming our opinion thereon, and wedo not provide a separate opinion on these matters.

Revenue recognition
Why we considered this to be a key audit matter
As described in note 3 to the financial statements,
the group’s revenue arises from a variety of licencing,
implementation, and support services arrangements.
The specifics of these arrangements differ across the
group, with different recognition requirements
applying the distribution of MYOB and other third-
party licences, the provision of support and
implementation services, sale of licences by I-Sell.
International Standards on Auditing presume there is
an inherent risk of fraud in revenue recognition.
Revenue may also be misstated due to errors in
calculations or manual processes used to recognise
revenue, particularly when the timing of recognition
differs from when the group’s customers are
invoiced.
Because of the complexity of the accounting
requirements and variety of revenue types across the
group we consider this to be a key audit matter.
Howour audit addressed this key audit matter
We understood and evaluated the controls and
processes over the recording of revenue, including
the raising of invoices through to the collection of
debtors, and the timing of recognition of revenue.
We obtained and considered a sample of contracts to
ensure that the group’s policy for the point of
recognition was in compliance with the requirements
of NZ IFRS 15 Revenue from contracts with
customers.
We tested a sample of revenue transactions
throughout the period,and particularly around year
end, to ensure that these have been appropriately
recognised. The extent of our work was greatest in
relation to software licence revenue and services and
supportrevenue, being the two largest revenue
streams of the group.
For services and supportrevenue, we tested the
recognition relative to the current status of the related
project at period end and related invoicing completed
to date.
For MYOB software licences arranged we ensured
that the licence had been issued prior to the related
revenue being recognised.
We also evaluated the disclosures provided in
relation to revenue within note 3 to the financial
statements.

Testing of non-current assets for potential impairment
Why we considered this to be a key audit matter
The group has recognised $10,810,000 of goodwill
and other intangible assets as at 30 June 2021 as
detailed in Note 17.
An annual impairment test is required under NZ IAS
36 Impairment of Assets. The testing of the carrying
value of the group's assets for impairment involves
subjective assumptions and the application judgment
in calculating the estimated recoverable amount of
each cash generating unit(CGU), in order to
determine whether impairment is required.
A value in use calculation was used to test the
Enterprise division's cash generating units for
impairment. Key considerations in respect of the
Enterprise divisioninclude:
Determining the allocation of both assets and
cashflows (including corporate costs) across the
group's CGUs;
Accuracy of cashflow forecast information given
the current operating environment;
Determining appropriate discount rates to apply
in determining the recoverable amount of each
CGU.
A fair value less cost of disposal approach is used to
test the Isell CGUfor impairment. Key
considerations in determining the recoverable
amount of the Isell CGU include the selection ofan
appropriate valuation method. Enprise Group
Limited used a valuation estimate based primarily on
a revenue multiple approach, under which the
selection of an appropriate revenue multiple is a key
judgment.
The impairment testing is considered to have a high
degree of inherent estimation uncertainty, as small
changes in assumptions can have a very significant
impact on the assessed recoverable amount.
How our audit addressed this key audit matter
Our procedures in relation to the impairment testing
of the group's cash generating units(CGU)
included:
Evaluating the basis of the allocation of assets
and cashflows to CGUs within the group;
Understanding and evaluating the process used
to develop the cashflow forecasts and valuation
models usedfor the purposes of impairment
testing;
Assessing the group's past performance in
achieving forecast results;
Comparing and critiquing the assumptions and
cash flow models utilised in the Enterprise
Division value in use testing, including
expectation of future revenue growth and
margin levels;
Evaluating how allowance for the current
uncertain economic conditions have been
incorporated into the forecasting and
impairment testing;
Considering the discount rate and revenue
multiple utilised to our own expectations;
Reperformed the calculations based on
assumptions made; and
Performing sensitivity analysis for reasonable
possible changes in key assumptions.
We evaluated the related disclosures within the
financial statements in relation to the requirements
of NZ IAS 36.
Other information
The directorsare responsible for the other informationincluded in the annual report. The other information
comprises the director’sreport on pages 2 to 6 and the corporate information on page39 (but does not include
the consolidated financial statements and our auditor’s report thereon), which weobtained prior to the date of
this auditor’s report. Our opinion on the consolidated financial statements does not cover the other information
and we do not express any formof audit opinion or assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities ofthe directorsfor the consolidated financial statements
The directorsare responsible, on behalf of the group, for the preparation and fair presentation of the
consolidated financial statements in accordance with New Zealand equivalents to International Financial
Reporting Standards and International Financial Reporting Standards, 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 theconsolidatedfinancial statements,
the directorsare responsible on behalf of the groupfor 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 those charged with governance 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 (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 decisions of users taken on the basis of these financial
statements. A further description of the auditor’s responsibilities for the audit of the consolidated financial
statements is located at the XRB’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
Who we report to
This report is made solely to Enprise GroupLimited’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which 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 Enprise GroupLimited and it’s shareholders, as a body, for our audit work, for this report or
for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Jason Stinchcombe.
RSM Hayes Audit28 September2021
Auckland