Accordant Group Half Year Financial Performance

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


Results for announcement to the market
Name of issuer Accordant Group Limited
Reporting Period 6 months to 30 September 2021
Previous Reporting Period 6 months to 30 September 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$110,447 4.3%
Total Revenue $110,447 4.3%
Net profit/(loss) from
continuing operations
$1,663 -55.2%
Total net profit/(loss) $1,663 -55.2%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.09027778
Imputed amount per Quoted
Equity Security
$0.065
Record Date 19 November 2021
Dividend Payment Date 1 December 2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$-0.32642917 $-0.36765625
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to financial statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Patrick McCann
Contact person for this
announcement
Patrick McCann
Contact phone number 09 526 8775
Contact email address patrick.mccann@accordant.nz
Date of release through MAP

27 October 2021

Unaudited financial statements accompany this announcement.

---

Interim Report
for the six months ended
30 September 2021

It is an exciting time
to be leading the
next stage of our
Accordant journey.
Jason Cherrington, CEO
CEO’S REPORT – JASON CHERRINGTON 3
FINANCIAL STATEMENTS 8
DIRECTORY 21
Contents
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
2
ACCORDANT GROUP INTERIM REPORT FY22

Our capability is strong
and the ability to
deliver for our clients
is creating demand.
Jason Cherrington, CEO
3
ACCORDANT GROUP INTERIM REPORT FY22CEO’S REPORT

Strong market dynamics, great authentic
people, and a diverse client portfolio were all
apparent. As it transpired, the advent of the
Level 4 lockdown in mid-August reminded
me how we are all still affected by the fluid
consequences of COVID-19.
During the first couple of months, I
experienced a very orderly introduction to
the business, with strong demand for our
services being apparent. All our white-collar
businesses were not only seeing good client
demand, but they were also able to capitalise
on it. They were able to adapt to this demand
with an emphasis on permanent recruitment
and retained exclusive work. The growth in this
area is very evident in our segment reporting
at HY22.
At the time I joined, AWF was also benefiting
from strong demand, albeit challenged by
New Zealand’s borders being closed to
almost all travellers, and a lack of candidate
availability. Whilst permanent recruitment
increased in AWF, it was off a low base and
therefore unable to ‘shift the dial’ to the same
degree as realised in Madison, Absolute IT
and JacksonStone & Partners.
Accordant’s strong culture and the underlying
values of the organisation were very evident
to me. Equally apparent was the sophistication
and maturity of the business. Both factors
would prove to be crucial on 18th August 2021
when the country was once again sent into a
nationwide Level 4 lockdown.
Having been in my role now
for close to four months,
it is fair to say that the first
two months felt almost
too good to be true, both
internally within the Group,
and regarding our broader
position within the industry.
4
CEO’S REPORTACCORDANT GROUP INTERIM REPORT FY22

When I look back 12 months to the HY21
report to shareholders by Simon Bennett, he
talked about a great deal of uncertainty and
unknowns. Of course, much of this was driven
by macro themes and the consequential
impact as our business stalled, as did many,
when the first lockdown commenced at the
end of March 2020.
What we have witnessed in this lockdown is
quite different. We had a seamless move to
working from home for our internal employees
across all of our businesses, and strong
continued demand for our services. There was
little if any hesitation from our clients where
we had active workstreams. Our strength
across the white-collar market served us very
well, and within this segment we did not miss
a beat. Although there were some temporary
workers not required by clients, we were
able for the most part to offer alternate work
elsewhere or present permanent opportunities
to candidates.
Such was the strength of this market and
our capability to deliver within in it that
JacksonStone & Partners have posted a
record contribution at EBITDA level and thus
a significant indication that the business is
continuing to perform so strongly.
In contrast to the March 2020 lockdown,
where they experienced struggling market
conditions that eventuated into a significant
write down of goodwill, Madison are also
performing strongly. The business has made
positive changes to its resourcing model
and has established a national resourcing
team that enables greater flexibility and a
faster outcome for volume projects, further
leveraging our sourcing capability.
Absolute IT was not as quick to capitalise
on demand and has been challenged more
than our other white-collar brands. These
challenges include the skills shortages that are
being driven by offshore talent largely being
unable to enter the country. This channel is
almost fully closed and although exemptions
exist, these have been ‘few and far between’.
A Level 4 lockdown is especially hard on
the civil and construction sectors that AWF
services, and we were forced to stand down
a significant portion of our workforce. The
team turned to other opportunities in essential
services, such as placing many workers into
temporary roles with supermarkets. Whilst
we made a considered decision to apply
for the government’s Wage Subsidy in AWF
to support and retain the portion of our
temporary workforce who were unable to
work during a Level 4 lockdown, this was only
claimed for the initial two weeks. We certainly
paid out a great deal more than we claimed
and continued to assist many of our field
workers beyond this period.
We expect the landscape for AWF will be
more challenging than our white-collar
businesses for the remainder of the year.
The market remains short of candidates,
Accordant’s strong
culture and the underlying
values of the organisation
were very evident to me.
Equally apparent was
the sophistication and
maturity of the business.
5
CEO’S REPORTACCORDANT GROUP INTERIM REPORT FY22

with the migrant channel closed and a
general lack of candidate availability due to
New Zealand’s ongoing low unemployment
rate. Our clients continue to offer permanent
opportunities to our workers, and we are
currently seeing growth in the permanent
market. We expect to deliver a better
earnings contribution in the second six
months, subject to the impact of any further
lockdown restrictions.
There has been little said in the media of late
about the changing employment legislative
landscape, but we predict that fair pay
agreements will emerge in the not-too-distant
future. Collective bargaining will cause a
subtle change in the hiring appetites of our
clients and drive further demand for
temporary staffing solutions, which will be
prospective for the business. Through The
Work Collective we will continue to grow our
candidate market, alongside other training
and development initiatives.
The ongoing prospects for Madison,
Absolute IT and JacksonStone & Partners
look good for the second half of the year.
We remain confident New Zealand, and more
specifically the greater Auckland Region, will
return to lower lockdown restrictions over
the coming months, enabling organisations
to ramp up their activities. I also sense the
digital transformation initiatives started last
year across many sectors will accelerate
purposefully and so allowing us to grow
beyond the recruitment services we currently
offer at Absolute IT.
The direct financial comparatives between
HY21 and HY22 can appear quite confusing
on review, in what have been unprecedented
times. Wage subsidies were significant across
the Group in the HY21 results, and in particular
for Madison and AWF. These make for ‘out of
step’ like-for-like comparisons in the financial
statements.
However, despite our net profit in HY22,
and even accounting for the non-operating
nature of the fair value loss on contingent
consideration, I am encouraged to see the
net cash generated from operations much
higher in HY22 than the previous half year.
We had the confidence to reiterate our
dividend policy at the Annual Shareholder
Meeting, which was held on 29th September
2021, and gave guidance to a resultant
dividend range parameter of between
5.5 cents per share and 7.5 cents per share
for the Board to consider. Subsequently,
I am pleased to highlight that the Board
have announced a fully imputed dividend
of 6.5 cents per share to be paid on 1st
December 2021.
For the remainder of the year ahead
I continue to be optimistic. We expect
some form of border reopening towards the
end of our financial year, and we will be able
to contemplate migrant labour once again for
AWF. We will also realise some benefit from
Through The Work Collective
we will continue to grow
our candidate market,
alongside other training
and development initiatives.
6
CEO’S REPORTACCORDANT GROUP INTERIM REPORT FY22

greater numbers of skilled workers in the
IT sector being able, once again, to relocate
more easily to New Zealand. We also
have a steady pipeline of work heading into
the second half of this financial year, and
our permanent recruitment offering
remains strong.
We do expect a less flexible employment
landscape, with the introduction of collective
bargaining in the form of fair pay agreements.
We cannot emphasise enough the significance
of our victory in the Employment Court and
another in the Court of Appeal, reconfirming
the outcome and denying leave to the Court
of Appeal.
Strong market demand for candidates is
set to continue and the investments we have
made in our sourcing capability and digital
tools will continue to be an advantage.
The reducing efficacy of job boards in a
candidate-short market makes our clients’
recruitment teams even more inclined to
use our services. Our capability is strong
and the ability to deliver for our clients is
creating demand.
We are therefore positioned very well,
and despite the difficult operating
environment and ongoing lockdown
restrictions experienced in Auckland and
Waikato, we do expect to prosper in this
buoyant job market and build upon the
progress that has been made across our
business as a whole.
It is an exciting time to be leading the next
stage of our Accordant journey and so,
shoulder to shoulder with our diverse group
of talented people, I am very much looking
forward to the next six months as we continue
to drive forwards with a collective passion and
incredible heart for the significant role we play
in helping New Zealand’s organisations not
just grow, but thrive.
Strong market demand for
candidates is set to continue
and the investments we
have made in our sourcing
capability and digital
tools will continue to be
an advantage.
7
CEO’S REPORTACCORDANT GROUP INTERIM REPORT FY22

Financial
Statements.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY2a
8
ACCORDANT GROUP INTERIM REPORT FY22

Accordant Group Limited
Condensed consolidated statement of comprehensive income
For the six month period 30 September 2021 (unaudited)
GROUP
6 months to
30 September
2021
(unaudited)
6 months to
30 September
2020
(unaudited)
$’000$’000
Revenue from contracts with customers110,447105,938
Direct costs(1,273)(1,244)
Employee benefits expense(58,171)(37,751)
Contractor costs(40,849)(43,789)
Depreciation and amortisation expense(2,573)(2,618)
Impairment–(7,000)
Other operating expenses(3,840)(4,942)
Finance costs(549)(777)
Fair value loss on contingent consideration(585)–
Profit before tax2,6077,817
Income tax expense(944)(4,105)
Profit for the period1,6633,712
Other comprehensive income for the period––
Total comprehensive income for the period1,6633,712
Earnings per share
Total basic earnings per share (cents/share)4.910.8
Total diluted earnings per share (cents/share)4.910.8
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
9

Accordant Group Limited
Condensed consolidated statement of financial position
As at 30 September 2021 (unaudited)
GROUP
30 September
2021
(unaudited)
30 September
2020
(unaudited)
31 March
2021
(audited)
$’000$’000$’000
Assets
Non-current assets
Property, plant and equipment3,3312,8413,492
Right of use assets8,1509,7398,570
Intangible assets – goodwill38,06838,06838,068
Intangible assets – other13,91915,26014,481
Total non-current assets63,46865,90864,611
Current assets
Cash and cash equivalents4,9895,8701,795
Trade and other receivables23,13524,60823,271
Contract assets170301180
Total current assets28,29430,77925,246
Total assets91,76296,68789,857
Equity and liabilities
Non-current liabilities
Deferred tax liabilities2,1952,7892,419
Borrowings18,00015,00015,000
Lease liabilities6,6057,9616,991
Contingent consideration–1,875–
Total non-current liabilities26,80027,62524,410
Current liabilities
Trade and other payables22,38124,42220,180
Contract liabilities247348230
Taxation payable4992,8541,829
Provisions400250400
Lease liabilities2,2772,3752,264
Contingent consideration1,1341,491535
Total current liabilities26,93831,74025,438
Total liabilities53,73859,36549,848
Net assets38,02437,32240,009
Capital and reserves
Share capital30,86830,86830,868
Treasury shares(804)––
Group share scheme reserve225206204
Retained earnings7,7356,2488,937
Total equity38,02437,32240,009
For and on behalf of the Board who authorise the issue of the financial statements on 27 October 2021:
ROSS KEENAN, Chair LAURISSA COONEY, Chair, Audit, Finance & Risk Committee
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
10

Accordant Group Limited
Condensed consolidated statement of changes in equity
For the six month period 30 September 2021 (unaudited)
GROUP
Share
capital
Treasury
shares
Group share
scheme
reserve
Retained
earnings
Total
equity
$’000$’000$’000$’000$’000
Period ended 30 September 2020
Balance at 1 April 202030,868–3302,53633,734
Comprehensive income
Profit for the period–––3,7123,712
Other comprehensive income –––––
Total comprehensive income –––3,7123,712
Transactions with shareholders
Share based payments––(124)–(124)
Total transactions with shareholders––(124)–(124)
Balance at 30 September 202030,868–2066,24837,322
Period ended 30 September 2021
Balance at 1 April 202130,868–2048,93740,009
Comprehensive income
Profit for the period–––1,6631,663
Other comprehensive income –––––
Total comprehensive income–––1,6631,663
Transactions with shareholders
Dividends paid–––(2,865)(2,865)
Treasury shares acquired–(804)––(804)
Share based payments––21–21
Total transactions with shareholders–(804)21(2,865)(3,648)
Balance at 30 September 202130,868(804)2257,73538,024
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
11

Accordant Group Limited
Condensed consolidated statement of cashflows
For the six month period ended 30 September 2021 (unaudited)
GROUP
6 months to
30 September
2021
(unaudited)
6 months to
30 September
2020
(unaudited)
$’000$’000
Cashflows from operating activities
Receipts from customers110,693134,644
Payments to suppliers and employees(103,734)(141,768)
Net cash generated from operations6,959(7,124)
Net receipts from government grants1,72932,323
Interest paid on bank overdrafts and loans(318)(446)
Interest paid on lease liabilities(218)(269)
Income taxes paid(2,498)(2,534)
Net cash from operating activities5,65421,950
Cashflows from investing activities
Proceeds from disposal of property, plant and equipment–34
Purchase of property, plant and equipment(512)(19)
Purchase of intangible assets(108)(10)
Net cash (used in)/from investing activities(620)5
Cashflows from financing activities
Repurchase of issued share capital(804)–
Dividends paid to shareholders(2,865)–
Proceeds from borrowings3,000–
Repayment of borrowings–(21,000)
Payment of principal on lease liabilities(1,171)(1,263)
Net cash from/(used in) financing activities(1,840)(22,263)
Net increase/(decrease) in cash held3,194(308)
Cash and cash equivalents at start of the period1,7956,178
Net cash and cash equivalents at end of the period4,9895,870
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
12

Accordant Group Limited
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2021 (unaudited)
REPORTING ENTITY
Accordant Group Limited is a Company limited by
shares, incorporated and domiciled in New Zealand
and registered under the Companies Act 1993 and
listed on the NZX. The address of its registered office
and principal place of business is disclosed in the
directory to the interim report. The principal services
of the Group are the supply of temporary staff,
contractor resource and recruitment of permanent
staff.
BASIS OF PREPARATION
The interim condensed consolidated financial
statements are for Accordant Group Limited
(‘the Company’) and its subsidiaries (collectively
referred to as ‘the Group’) and have been prepared:
• in accordance with IAS 34 Interim Financial
Reporting
and NZ IAS 34 Interim Financial Reporting;
• in accordance with the requirements of the
Financial Market Conduct Act 2013, the Companies
Act 1993, and the NZX listing rules;
• on the basis of historical cost, as modified by
revaluations to fair value for certain classes of
assets and liabilities as described in the
accounting policies; and
• on a going concern basis, which contemplates
continuity of normal business activities, the
realisation of assets, and the settlement of
liabilities in the ordinary course of business; and
• in New Zealand dollars (which is the Group’s
functional and presentation currency), with
values rounded to thousands ($000) unless
otherwise stated.
The interim condensed financial statements
were authorised for issue by the directors on
27 October 2021.
The interim condensed consolidated financial
statements do not include all the information and
disclosures required in the annual financial
statements, and should be read in conjunction with
the Group’s annual financial statements for the
year ended 31 March 2021.
All mandatory new standards and amendments and
interpretations to existing standards that came into
effect during the current accounting period have
been adopted in the current year, with the exception
of the ‘IFRIC agenda decision on configuration and
customisation costs for Software as a Service (SaaS)
arrangements’ described further below. None of
these have had a material impact on the Group. The
Group has not early adopted any new standards,
amendments and interpretations that have been
issued but are not yet effective.
There are a number of new standards and
amendments to standards and interpretations
that are not yet effective for the year beginning
1 April 2021.
None of these new and amendments to standards
and interpretations have been early adopted by the
Group in preparing these financial statements or been
identified as having a material effect on the Group’s
financial statements in future.
Deferral of compliance with IFRIC agenda decision
on configuration and customisation costs for
Software as a Service (SaaS) arrangements.
In April 2021, the IFRS Interpretations Committee
(IFRIC), which is responsible for interpreting the
application of IFRS, published another agenda
decision clarifying how arrangements in respect of
a specific part of cloud technology, Software as a
Service (SaaS), should be accounted for. This agenda
decision deals with specific circumstances in relation
to configuration and customisation costs incurred in
implementing SaaS.
The agenda decision sets out that only in limited
circumstances, certain configuration and
customisation activities undertaken in implementing
SaaS arrangements may give rise to a separate
asset where the customer controls the intellectual
property of the underlying software code. In all other
instances, configuration and customisation costs
will be an operating expense. They are generally
recognised in profit or loss as the customisation and
configuration services are performed or, in certain
circumstances, over the SaaS contract term when
access to the cloud application software is provided.
Where a change in accounting policy is required,
comparative financial information is required to be
retrospectively restated to derecognise previously
capitalised costs, where material, in accordance with
NZ IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors.
The clarification requires careful consideration of
the nature of costs that are incurred in implementing
SaaS arrangements. Over several years, the Group has
made certain judgements about most costs related to
SaaS arrangements.
Accordingly, the Group will review these accounting
judgements and make any required adjustments
retrospectively as a change in accounting policy.
As at 30 September 2021, the carrying value of
the Group’s capitalised computer software was
$748,000 (31 March 2021: $627,000; 31 March 2020:
$973,000) of costs associated with numerous
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
13

Accordant Group Limited
Notes to the condensed consolidated interim financial statements
For the six month period ended 30 September 2021 (unaudited)
SaaS arrangements. Due to the quantum of the costs
involved and across several SaaS solutions, the
Group expects a significant amount of work will be
required to review those costs. Management has
been unable to complete its assessment prior to
the finalisation of these interim condensed financial
statements.
Management will complete its assessment and
recognise any adjustments for its year ended
31 March 2022 annual financial statements.
GLOBAL PANDEMIC OF CORONAVIRUS
DISEASE 2019
Following on from the disclosures in the Group’s
annual financial statements for the year ended
31 March 2021 regarding the ongoing COVID-19
pandemic, the COVID-19 pandemic continues to
inhibit general activity and confidence levels within
the community, the economy, and the operations of
the Group’s business. The Group continues to monitor
developments and initiate plans to mitigate adverse
impacts and maximise opportunities.
During the financial period Group eligible entities
(AWF Limited only) received government Wage
Subsidy #1 only totalling $1.744m (for 1,528
employees) and repaid $0.035m (for 34 employees).
A net receipt of $1.709m. In addition AWF Limited
received the Inland Revenue Resurgence Support
Payment and Government leave support payments.
Refer to the statement of cashflows.
These grants supported the Group’s ability to retain
personnel and pay remuneration throughout
New Zealand’s COVID19 Alert Levels 4 and 3.
The government grants have been offset against
employee benefits expense in the statement of
comprehensive income.
These interim condensed consolidated financial
statements have been prepared based upon
conditions existing at the end of the reporting period,
30 September 2021, and considering those events
occurring subsequent to that date, up to the date of
the signing of these interim financial statements, that
provide evidence of conditions that existed at the
end of the reporting period. All reasonably known and
available information with respect to the COVID-19
pandemic, has been taken into consideration and all
reasonably determinable adjustments have been
made in preparing these interim condensed
consolidated financial statements.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
14

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2021 (unaudited)
SEGMENT INFORMATION
The Chief Operating decision maker is the Group
Chief Executive.
The Group has two defined Reporting Segments:
• AWF – Contingent Blue Collar Labour Hire
associated with infrastructure, logistics,
manufacturing, technical and construction.
• Madison Recruitment, Absolute IT and
JacksonStone & Partners – White Collar
Contingent temporary employees and contractors
together with Permanent Recruitment associated
with professional and managerial positions
including technology and digital business sectors.
Within the White-Collar Reporting Segment are three
(3) operating segments:
• Madison Recruitment
• Absolute IT
• JacksonStone & Partners
These operating segments have been aggregated
on the basis that they have similar economic
characteristics; the nature of services offered, the
processes and customers are substantially the same,
and strategic decisions are made in conformity over
all three brands.
The Group’s reportable segments have been identified
as follows:
• AWF
• Madison, Absolute IT and JacksonStone & Partners
The Corporate office function reported as ‘Central
administration costs and director fees’ provides
governance, compliance, audit, public accountability,
Group Funding, accounting, information technology,
human resources, and marketing expertise. Revenue
derived is incidental to the Group activities. The
Corporate office function is not an operating segment
and is not part of one of the reportable segments.
These segments have been determined on the
basis, of the trading brands that operate under each;
that discrete financial information is available for
these segments; and that their operating results are
regularly reviewed by the Group’s chief operating
decision maker.
AWF
The ‘AWF’ segment operates branches under the
brand names AWF (throughout New Zealand) and
Select (Dunedin). These brands primarily derive their
revenues from temporary staffing services to industry.
Madison, Absolute IT and JacksonStone & Partners
The ‘Madison, Absolute IT and JacksonStone &
Partners’ segment operates branches under the brand
names Madison Recruitment, Madison Force, Absolute
IT and JacksonStone & Partners (from June 2019) in
major cities throughout New Zealand. These brands
derive their revenues from temporary, contract and
permanent staff services to commerce.
All revenues from external customers, and non-current
assets other than financial instruments, deferred tax
assets, post-employment benefit assets, and rights
arising under insurance contracts are attributed to the
Group’s country of domicile.
Segment revenueSegment profit
6 months to
30 September
2021
(unaudited)
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2021
(unaudited)
6 months to
30 September
2020
(unaudited)
SEGMENT REVENUE AND RESULTS$’000$’000$’000$’000
Continuing operations
AWF39,68834,1524459,881
Madison, Absolute IT and JacksonStone
& Partners70,75971,7863,826197
Total for continuing operations110,447105,9384,27110,078
Central administration costs and directors fees(1,115)(1,484)
Finance costs(549)(777)
Profit/(loss) before tax2,6077,817
Income tax expense(944)(4,105)
Profit for the year1,6633,712
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
15

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2021 (unaudited)
Revenue reported above represents revenue generated from external customers. Inter-segment sales for the
six month period ended 30 September 2021 were $146,000 (2020: $92,000) and have been eliminated from
the above table.
The accounting policies of the reportable segments are the same as the Group’s accounting policies
described in this report. Segment profit represents the profit earned by each segment without allocation of
central administration costs and directors’ fees, investment revenue, finance costs, and income tax expense.
This is the same measure reported to the chief operating decision maker for the purpose of resource
allocation and assessment of segment performance.
30 September
2021
(unaudited)
30 September
2020
(unaudited)
31 March
2021
(audited)
SEGMENT ASSETS$’000$’000$’000
AWF25,77829,92327,411
Madison, Absolute IT and JacksonStone & Partners63,06265,05661,764
Total segment assets88,84094,97989,175
Unallocated assets2,9221,708682
Total assets91,76296,68789,857
For the purposes of monitoring segment performance and allocating resources between segments, the chief
operating decision maker monitors the tangible, intangible and financial assets attributable to each segment.
All assets are allocated to reportable segments other than cash, cash equivalents and tax assets
of the parent.
30 September
2021
(unaudited)
30 September
2020
(unaudited)
31 March
2021
(audited)
SEGMENT LIABILITIES$’000$’000$’000
AWF9,23816,10010,509
Madison, Absolute IT and JacksonStone & Partners20,72421,81819,214
Total segment liabilities29,96237,91829,723
Unallocated liabilities23,77621,44720,125
Total liabilities53,73859,36549,848
For the purposes of monitoring segment performance and allocating resources between segments, the chief
operating decision maker monitors the liabilities attributable to each segment. All liabilities are allocated to
reportable segments other than bank loans and tax liabilities of the parent.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
16

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2021 (unaudited)
6 months to
30 September
2021
(unaudited)
6 months to
30 September
2020
(unaudited)
6 months to
30 September
2021
(unaudited)
6 months to
30 September
2020
(unaudited)
OTHER SEGMENT INFORMATION$’000$’000$’000$’000
Depreciation
and amortisationImpairment
AWF955952––
Madison, Absolute IT and JacksonStone
& Partners1,6181,666––
Madison impairment–7,000–7,000
Unallocated––––
Total 2,5739,618–7,000
Non-current
assets
Net additions to
non-current assets
AWF16,73616,2591,16770
Madison, Absolute IT and JacksonStone
& Partners46,73249,64925085
Unallocated––––
Total 63,46865,9081,417155
Employee
benefits
Contractor
costs
AWF35,49621,2781415
Madison, Absolute IT and JacksonStone
& Partners21,26315,78340,83543,774
Unallocated1,412690––
Total 58,17137,75140,84943,789
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
17

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2021 (unaudited)
GROUP
6 months to
30 September
2021
(unaudited)
6 months to
30 September
2020
(unaudited)
REVENUE FROM CONTRACTS WITH CUSTOMERS$’000$’000
Revenue earned on temporary placements
– AWF38,82433,669
– Madison, Absolute IT and JacksonStone & Partners52,15855,801
Total revenue earned on temporary placements90,98289,470
Revenue earned on permanent placements
– AWF677386
– Madison, Absolute IT and JacksonStone & Partners5,9532,454
Total revenue earned on permanent placements6,6302,840
Revenue earned on a retained basis
– Madison, Absolute IT and JacksonStone & Partners2,7062,082
Total revenue earned on a retained basis2,7062,082
Other service revenue
– AWF10596
– Madison, Absolute IT and JacksonStone & Partners10,02411,450
Total other service revenue 10,12911,546
Total revenue110,447105,938
GEOGRAPHICAL INFORMATION
The Group operates in one geographical area,
New Zealand (country of domicile). All revenues from
external customers, and non-current assets other
than financial instruments, deferred tax assets and
post-employment benefit assets are attributable to
the Group’s country of domicile.
INFORMATION ABOUT CUSTOMERS
No one customer accounts for more than 10.0%
of the Group’s revenue and therefore does not have
a reliance on its major customers (for the six month
period ended 30 September 2020, no one customer
accounts for more than 10.0% of the Group’s
revenue and therefore does not have a reliance
on its major customers).
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
18

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2021 (unaudited)
GROUP
RECONCILIATION OF NET PROFIT AFTER TAX TO CASH FLOWS
FROM OPERATING ACTIVITIES
6 months to
30 September
2021
(unaudited)
6 months to
30 September
2020
(unaudited)
$’000$’000
Net profit after income tax1,6633,712
Adjustments for operating activities non-cash items:
Depreciation and amortisation2,5732,618
Impairment–7,000
Loss/(Gain) on disposal of property, plant and equipment243
Movement in doubtful debts provision plus bad debt write off in current year45187
Movement in deferred tax(224)(333)
Equity-settled share-based payments21(124)
Interest on contingent consideration to the vendor of JacksonStone
& Partners 1362
Fair value loss on contingent consideration585–
Total non-cash items3,0159,453
Movements in working capital
(Increase)/decrease in trade and other receivables, and contract assets10128,586
Increase/(decrease) in trade and other payables, contract liabilities
and provisions2,205(21,705)
Increase/(decrease) in taxation payable(1,330)1,904
Total movement in working capital9768,785
Cash flow from operating activities5,65421,950
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
19

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2021 (unaudited)
DIVIDENDS PAID
On 28 October 2020 the directors resolved not
to declare an interim dividend for the year ended
31 March 2021 due to the on-going economic
uncertainty caused by the COVID-19 pandemic.
On 27 May 2021 the directors resolved to resume
distributions of dividends and approved the payment
of a fully imputed final dividend of 8.2 cents per
share (total dividend $2,865,016) paid on 30 June
2021 to all shareholders registered on 20 June 2021
(six months ended 30 September 2020: On 8 June
2020 the directors resolved not to declare a final
dividend for the year ended 31 March 2020 due to
the economic uncertainty caused by the COVID-19
pandemic, the group did not pay any dividend).
FINANCIAL INSTRUMENTS
The carrying amounts of financial instruments at
balance date approximate the fair value at that date.
BUSINESS COMBINATIONS JACKSONSTONE
& PARTNERS CONTINGENT CONSIDERATION
Following on from the disclosures in the Group’s
annual financial statements for the year ended
31 March 2021, as at 30 September 2021, there
has been a further material change in the Group’s
estimate of the Net Disposable Revenue to the
previous owners of JacksonStone & Partners under
the contingent consideration arrangement for
Earnout tranche 2. The future value of the contingent
consideration arrangement is now assessed at
$1.134m. An increase of $0.585m from the 31 March
2021 assessment of $0.549m, from improved
trading performance.
CONTINGENT LIABILITIES
The Bank has issued five guarantees on behalf
of the Group totalling $534,000 in support of
property leases (4) and a surety bond to the NZX.
There were no other contingent liabilities as at
30 September 2021 or 30 September 2020.
EVENTS SUBSEQUENT TO REPORTING DATE
Interim dividend
On 27 October 2021 the directors approved the
payment of a fully imputed interim dividend of
$2.312 million (6.5 cents per share) to be paid
on 1 December 2021.
Other
There were no other material events subsequent
to reporting date.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
20

21
Directory
Directors
Ross Keenan (Chairman & Independent Director)
Simon Hull (Non-independent Director)
Wynnis Armour (Independent Director)
Nicholas Simcock (Independent Director)
Laurissa Cooney (Independent Director)
Simon Bennett (Executive Director)
– appointed 21 June 2021
Auditor
Deloitte Limited
Deloitte Centre
80 Queen Street
PO Box 33
Auckland
Phone: +64 9 309 4944
Fax: +64 9 309 4947
Solicitors
Minter Ellison Rudd Watts
PwC Tower
15 Customs Street West
PO Box 105 249, Auckland 1143
New Zealand
DX CP24061
Phone: +64 9 353 9700
Fax: +64 9 353 9701
Share Registry
Link Market Services
Level 30, PwC Tower
15 Customs Street West
Auckland
New Zealand
PO Box 91976
Phone: +64 9 375 5998
or: 0800 377 388
Registered Office
Level 6, 51 Shortland Street
PO Box 105 675
Auckland City
Phone: +64 9 526 8770
ACCORDANT GROUP INTERIM REPORT FY22

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

---

Accordant Group Limited
Level 6, 51 Shortland Street, Auckland
PO Box 105 675, Auckland 1143
Tel 09 526 8770
accordant.nz
MEDIA RELEASE

27 October 2021

Steady demand underpins Accordant’s half year performance
• Revenue $110.4 million, up $4.5 million
• Net cash generated from operating activities rose to almost $7 million
• Dividend 6.5cps
Accordant Group reported strong demand and activity for the six months to 30 September 2021.
The Board has determined to pay a dividend of 6.5 cents per share, which is the middle of the range provided at
the Annual Shareholders’ Meeting and considered a sensible declaration in the light of unknown Covid impact.
Executive Director Simon Bennett said the impacts of the current lockdowns beginning on August 18 differed
materially from those affecting the financial first half a year ago.
“This year the business has moved seamlessly to working from home, demand has remained strong into the
lockdowns, and we have been able to move some temporary workers to alternative work, or to present
permanent employment opportunities.”
AWF was most impacted by the nationwide Level 4 lockdowns, and also remains challenged by border closures
and a shortage of candidates. Business has been steadily increasing as we have moved to Level 3 and 2.
Demand for permanent placements has also increased, albeit off a low base.
JacksonStone & Partners posted a record contribution at the EBITDA level, resulting in a lift in the estimated final
earnout payment to the vendors.
Madison, which struggled following the 2020 lockdowns, is also performing strongly after making positive
changes to its resourcing model to deal with such strong client demand.
Absolute IT was unable to fully capitalise on strong demand as quickly as Accordant’s other divisions as it has
been highly restricted in its ability to draw on overseas workers with scarce skill sets.
Bennett said the prospects for Madison, Absolute IT and JacksonStone & Partners were good for the second half
of the current year.
“We remain confident that the greater Auckland region, and New Zealand as a whole, will return to lower
lockdown restrictions over the coming months.
For AWF, we expect some form of border reopening towards the end of our financial year will allow us to
contemplate sourcing migrant labour once again, and will also allow us to source highly skilled IT workers
offshore.
The job market remains buoyant and Accordant has a good pipeline of work going into the second half of the
financial year.”

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



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

For further information contact Simon Bennett, Executive Director:
021 036 8387