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 2022
Previous Reporting Period 6 months to 30 September 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$122,994 11.4%
Total Revenue $122,994 11.4%
Net profit/(loss) from
continuing operations
$2,094 37.2%
Total net profit/(loss) $2,094 37.2%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.09027778
Imputed amount per Quoted
Equity Security
$0.06500000
Record Date 18 November 2022
Dividend Payment Date 1 December 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
-0.32480235 -0.32758274
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

26 October 2022

Unaudited financial statements accompany this announcement.

---

Accordant Group Limited
Level 6, 51 Shortland Street, Auckland
PO Box 105 675, Auckland 1143

Tel 09 526 8770
accordant.nz
MEDIA RELEASE
26 October 2022
Accordant Group posts strong first half, looks forward to open borders in second half
• Revenue $123 million, up $12.5 million
• Net profit up 37% to $2.1 million
• Interim dividend 6.5cps (H1 FY22, 6.5cps)

Recruitment company Accordant Group lifted net profit after tax for the six months to 30 September by
37% to $2.1 million compared to H1 FY22.
Group revenue rose by $12.5 million (11.4%) to $123 million. Revenue and profitability lifted strongly at
the white-collar division comprising Madison, Absolute IT and JacksonStone & Partners, while blue-
collar business AWF recorded a small decline.
The group repaid $3 million of term debt, reducing net debt to $12.5 million.
A 6.5 cents per share interim dividend will be paid on 1 December 2022 to shareholders on the register
as of 18 November 2022.
CEO Jason Cherrington said the first skilled migrants were expected to arrive in New Zealand in early
November, boosting the group’s prospects, especially for AWF, which has been without inflow for
several years.
Amid skill shortages, unprecedented client demand and an anticipated increase in activity in
manufacturing and civil construction, Accordant has a bright outlook for the full year to March 2023,
Cherrington said.
Madison has a strong pipeline of growth for the remainder of the year and increased temporary staff
numbers by 40% compared to H1 FY22.
JacksonStone & Partners, core permanent staffing business was slightly ahead of its record year in
FY22, and its contracting arm continued to grow.
Absolute IT started building momentum again, with a shortage of IT skills the main factor holding back
organisations looking for a step change in their digital capability.
Cherrington said the Group’s enhanced ability to engage more deeply with clients’ plans gave cautious
optimism for Absolute IT for the second half of this year.
AWF – the business unit most challenged by lockdown border restrictions – would reach “a significant
milestone” with the resumption of inflows of skilled migrant labour.
Cherrington said Accordant had a continued appetite for growth by acquisition.

Accordant Group Limited
Level 6, 51 Shortland Street, Auckland
PO Box 105 675, Auckland 1143

Tel 09 526 8770
accordant.nz

While it had been “complex” identifying and progressing suitable opportunities in the last two years, the
Group was assessing “some interesting and attractive prospects.”
Cherrington also saw opportunity in the recent trend of workers “pushing the boundaries of traditional
employment” in terms of flexibility of time, place and types of work.
He noted the unemployment rate of 3.3% masked an under-utilisation rate of 9.2%, and that there is
still “a large body of people still finding it difficult to access the employment market”, which remains a
key focus for The Work Collective business.

Ends



Jason Cherrington For the Board:
Accordant Group Chief Executive Simon Bennett, Chairman

For further information, contact Jason Cherrington, Chief Executive:
021 781 389

---

Interim Report
for the six months ended
30 September 2022

CEO’S REPORT – JASON CHERRINGTON 3
FINANCIAL STATEMENTS 7
DIRECTORY 22
Contents
Accordant continues to
grow its market presence
and strengthen its
authoritative voice for
industry, which has never
been more important.
Jason Cherrington, Group CEO
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
2
ACCORDANT GROUP INTERIM REPORT FY23

In many ways the broad macroeconomic
forces at play create an ambiguity and
uncertainty that both organisations and
individuals are faced with.
Demand for our services and expertise
however remains at an all time high.
It therefore remains key to resourcefully
navigate all these challenges and deliver
impactful solutions for our clients, whilst
also supporting the aspirations of our
employees and candidates.
Whilst we are committed to ensuring all our
employees get the type of work they want,
work that is fulfilling and fairly paid, concerns
remain over proposed legislative changes
that create greater costs for employers with
little beneficial gain to the employee. By
way of example, the workers unemployment
insurance currently being proposed would
only benefit one type of worker, yet premiums
would have to be paid by all. We continue
to raise these concerns through various
industry and government engagement forums
to ensure they are fully understood and the
consequential impact well known.
As reported at our Annual General Meeting
in August this year, the labour market
continues to see unprecedented client
demand. Our respective business units are
drawing upon our Group’s resources and
initiatives to add to their unique strengths
in order to meet this demand with greater
efficiency. Accordant’s progress in data
Accordant continues to
grow its market presence and
strengthen its authoritative
voice for industry, which
has never been more
important. At a time when
labour shortages are at an
all-time high, wage pressure
continues to rise along with
the costs of employment,
our advocacy is imperative.
CEO’s Report
Jason Cherrington,
Group CEO
3
CEO’S REPORTACCORDANT GROUP INTERIM REPORT FY23

literacy, digitisation and automation is
positive, as is the strength of our recruitment
marketing and sourcing nous. The ability to
support our delivery teams and managers with
learning and development opportunities to
operate with innovation and agility has also
progressed.
Capitalising on this market demand has been
realised mostly in our white-collar businesses.
Madison has focused on resourcing and
delivery innovation, resulting in continued
volume project work across the private and
public sectors, underpinning its performance.
Despite the worker shortage we have
increased our temporary employee numbers
by 40% on the same period last year. Madison
looks to the remainder of the year with a
strong pipeline for growth.
JacksonStone & Partners continues to
perform well and is beginning to be rewarded
for recent investment in our growing Maori
Practice. Our contracting arm also continues
to grow with overall performance slightly
ahead of what was a record year last year.
After a stalling in growth, Absolute IT is
building momentum again. The focus on
talent management and emphasis on building
contractors is showing promising signs.
Our management team has been bolstered,
and our newer Consultants are well
embedded and delivering wins across their
portfolio. We continue to make progress on
our ability to gain deeper engagement with
our clients’ digital transformation plans,
and the opportunities that affords. With IT
talent skills recognised as being the main
stalling factor for many organisations looking
for a step change in their digital plans,
we are cautiously optimistic about the
coming six months.
The market for AWF has continued to be
challenging. AWF has the most reliance on
a temporary workforce, which has been
affected by prolonged worker shortages.
Across a number of our talent pools we
rely on both travellers on working holiday
visas as well as skilled migrants.
So, whilst our worker retention has been
high and in fact is improving year upon year,
the inflow is not at the levels we need.
As has been widely reported, the flow of
travellers into New Zealand has been slow
to build and our sense is that there is still a
net decline in this area. We prepared well
by gaining the new Immigration Accredited
Employer status earlier in the year, however
the practical delivery of the new framework
has resulted in a delay of our skilled migrants
landing in the country. We expect the first
of them will arrive early November. This will
be a significant milestone for the AWF
business after many years without any flow
of skilled migrants.
As a group, Accordant has been focused
on understanding the drivers of our internal
employee engagement, to both optimise
Accordant’s progress in
data literacy, digitisation
and automation is positive,
as is the strength of our
recruitment marketing
and sourcing nous.
4
CEO’S REPORTACCORDANT GROUP INTERIM REPORT FY23

our capacity and capability for growth. Whilst
increased movement across the labour market
has gained a lot of attention in the media,
our overall staff retention has been good
especially when considering the demand for
experienced recruiters. Additionally, we are
pleased with both the number and quality of
our new hires. Our people have incredible
levels of pride in what they do and as we head
into the second half (H2) of this financial year
we have workstreams to deliver more impact
for our people’s continued engagement.
We have an appetite for acquisition as
previously indicated. Whilst it has been
complex identifying and progressing with
suitable targets in the past couple of years,
we have been assessing some interesting
and attractive prospects. The opportunity
for sustainable growth via acquisition
therefore continues to appeal.
Whilst our first half (H1) growth is slower
than we were expecting, it is ahead of the
prior year like for like, and a good result from
which to continue our commitment to pay
dividends to our shareholders. The surprise
cost of a September public holiday took
the gloss off this result, however a one-off
impact. With AWF ramping up for the busy
civil and construction period and increased
manufacturing demands, their contribution
we believe will have a greater impact to
performance over the coming months.
In terms of our earnings, revenue for H1 was
up over 11.4% to $123 million compared
with $110 million for H1 in the prior year.
We paid down $3 million of our term loan to
$15 million (from $18 million) and our net debt
was reduced to $12.5 million. Our rolling
12 months leverage ratio (Net Bank Debt
over EBITDA), which we consider important
to our borrowing capacity for acquisition,
was at 1.5, comparing well to historical levels
nearer to 3.0 times.
I recall my commentary this time last year
and prospects from the suggested border
reopening timelines. With hindsight this
seemed overly ambitious, but perhaps
frames the thinking of the times. A period
of unknowns and uncertainty. Albeit a year
later it feels good to be able to ‘pull some
levers’ and make the call on our appetite
for skilled migrant labour and to once again
recruit offshore.
As you would expect, we are being
cautious and ensuring we share the risk
appropriately with our clients with respect
to ongoing client need, with generally
a three-year commitment to our migrant
workers.
It is fair to assume the increasing number
of professional contractors has been led
by the candidates themselves, rather than
by employers wanting lower FTE headcount
(although this is a factor in government
organisations).
As a group, Accordant
has been focused on
understanding the drivers
of our internal employee
engagement, to both
optimise our capacity and
capability for growth.
5
CEO’S REPORTACCORDANT GROUP INTERIM REPORT FY23

Workers continue to push the boundaries
of traditional employment, seeking flexibility
of time and place of work, along with type
of work. Our recently published Future of
Work research, which was delivered with
support from the Westpac NZ Government
Innovation Fund, found that the desire for
non-permanent work exceeded availability.
There is a great opportunity to work more
closely with employers to design work in new,
innovative and flexible ways. The increase
in non-permanent work will provide more
opportunities that culminates in income
security and is a way for organisations to
access more workers in an incredibly tight
talent market.
The unemployment rate is low at 3.3% for
the June 2022 quarter, yet there remains
a large body of people who are finding it
difficult to access the employment market.
The underutilisation rate currently stands
at 9.2% for the same period.
Whilst numerically small, our achievements
in The Work Collective to help those facing
barriers to employment are significant.
We are proud of this work and are starting
to make a real impact.
We are therefore pleased to be able to
announce an interim dividend of 6.5 cents
per share.
I would like to thank the team for their
significant efforts and commend the
progress made in the first half of the year.
The doubling down on our activities to
ensure continued momentum indicates a
bright outlook for the full year.
Jason Cherrington,
CEO
Workers continue to
push the boundaries of
traditional employment,
seeking flexibility of time
and place of work, along
with type of work.
6
CEO’S REPORTACCORDANT GROUP INTERIM REPORT FY23

Financial
Statements.
FINANCIAL STATEMENTS
7
ACCORDANT GROUP INTERIM REPORT FY23

Accordant Group Limited
Condensed consolidated statement of comprehensive income
For the six month period 30 September 2022 (unaudited)
GROUP
6 months to
30 September
2022
(unaudited)
6 months to
30 September
2021
(unaudited)
(restated)
$’000$’000
Revenue from contracts with customers
122,994110,447
Investment revenue
12–
Direct costs
(1,029)(1,273)
Employee benefits expense
(64,079)(58,171)
Contractor costs
(47,427)(40,849)
Depreciation and amortisation expense
(2,287)(2,473)
Other operating expenses
(4,556)(4,077)
Finance costs
(651)(549)
Fair value loss on contingent consideration
–(585)
Profit before tax
2,9772,470
Income tax expense
(883)(944)
Profit for the period
2,0941,526
Other comprehensive income for the period
––
Total comprehensive income for the period
2,0941,526
Profit for the period income is attributable to equity holders of the Group
2,0941,526
Total comprehensive income is attributable to equity holders of the Group
2,0941,526
Earnings per share
Total basic earnings per share (cents/share)
6.24.5
Total diluted earnings per share (cents/share)
6.24.5
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
8

Accordant Group Limited
Condensed consolidated statement of financial position
As at 30 September 2022 (unaudited)
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
GROUP
30 September
2022
(unaudited)
30 September
2021
(unaudited)
(restated)
31 March 2022
(Audited)
$’000$’000$’000
Assets
Non-current assets
Property, plant and equipment2,6003,2882,907
Right of use assets5,9788,1507,020
Intangible assets – goodwill38,06838,06838,068
Intangible assets – other11,83913,17012,487
Total non-current assets58,48562,67660,482
Current assets
Cash and cash equivalents2,5174,9894,972
Trade and other receivables24,92523,13525,868
Contract assets19217097
Total current assets27,63428,29430,937
Total assets86,11990,97091,419
Equity and liabilities
Non-current liabilities
Deferred tax liabilities1,3082,0161,651
Borrowings15,00018,00018,000
Lease liabilities4,5146,6055,525
Total non-current liabilities20,82226,62125,176
Current liabilities
Trade and other payables24,39822,38124,382
Contract liabilities345247285
Taxation payable1,0354952,250
Provisions437400400
Lease liabilities2,1802,2772,231
Contingent consideration–1,134–
Total current liabilities28,39526,93429,548
Total liabilities49,21753,55554,724
Net assets36,90237,41536,695
Capital and reserves
Share capital30,86830,86830,868
Treasury shares(804)(804)(804)
Group share scheme reserve325225282
Retained earnings6,5137,1266,349
Total equity36,90237,41536,695
For and on behalf of the Board who authorise the issue of the financial statements on 26 October 2022:
SIMON BENNETT, Chair LAURISSA COONEY, Chair, Audit & Risk Committee
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
9

Accordant Group Limited
Condensed consolidated statement of changes in equity
For the six month period 30 September 2022 (unaudited)
GROUP
Share
capital
Treasury
shares
Group share
scheme
reserve
Retained
earnings
(restated)
Total
equity
$’000$’000$’000$’000$’000
Period ended 30 September 2021
Balance at 31 March 2021 (Reported)
30,868–2048,93740,009
Restatement due to IFRS Interpretations
Committee’s April 2021 agenda decision
of Software-as-a-Service (SaaS)
arrangements
–––(472)(472)
Balance at 1 April 2021 (Restated)
30,868–2048,46539,537
Comprehensive income
Profit for the period
–––1,5261,526
Other comprehensive income
–––––
Total comprehensive income
–––1,5261,526
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 2021
30,868(804)2257,12637,415
Period ended 30 September 2022
Balance at 1 April 2022
30,868(804)2826,34936,695
Comprehensive income
Profit for the period
–––2,0942,094
Other comprehensive income
–––––
Total comprehensive income
–––2,0942,094
Transactions with shareholders
Dividends paid
–––(1,987)(1,987)
Restricted shares redeemed
––(57)57–
Share based payments
––100–100
Total transactions with shareholders
––43(1,930)(1,887)
Balance at 30 September 2022
30,868(804)3256,51336,902
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
10

Accordant Group Limited
Condensed consolidated statement of cashflows
For the six month period ended 30 September 2022 (unaudited)
GROUP
6 months to
30 September
2022
(unaudited)
6 months to
30 September
2021
(unaudited)
(restated)
$’000$’000
Cashflows from operating activities
Receipts from customers
124,370110,693
Payments to suppliers and employees
(117,843)(103,956)
Net cash generated from operations
6,5276,737
Net receipts from government grants
4171,729
Interest paid on bank overdrafts and loans
(469)(318)
Interest paid on lease liabilities
(170)(218)
Income taxes paid
(2,441)(2,498)
Net cash from operating activities
3,8645,432
Cashflows from investing activities
Purchase of property, plant and equipment
(185)(398)
Net cash (used in)/from investing activities
(185)(398)
Cashflows from financing activities
Repurchase of issued share capital
–(804)
Dividends paid to shareholders
(1,987)(2,865)
Proceeds from borrowings
–3,000
Repayment of borrowings
(3,000)–
Payment of principal on lease liabilities
(1,147)(1,171)
Net cash from/(used in) financing activities
(6,134)(1,840)
Net increase/(decrease) in cash held
(2,455)3,194
Cash and cash equivalents at start of the period
4,9721,795
Net cash and cash equivalents at end of the period
2,5174,989
The notes to the interim condensed consolidated financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
11

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2022 (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, 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
26 October 2022.
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 2022.
The accounting policies used in preparation of these
interim condensed consolidated financial statements
are consistent with those used in the Group’s annual
financial statements for the year ended 31 March
2022, except for the adoption of any new standards
effective as of 1 April 2022, and the early adoption of
any other standard, interpretation or amendment
that has been issued but is not yet effective.
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.
There are a number of new standards and
amendments to standards and interpretations
that are not yet effective for the year beginning
interpretations that are not yet effective for the year
beginning 1 April 2022.
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.
In the Group’s annual financial statements for
the year ended 31 March 2022, the IFRIC agenda
decision on configuration and customisation costs
for Software-as-a-Service (SaaS) arrangements
(described next), resulted in a retrospective
restatement of comparative financial information as
at 1 April 2020 and for the year ended 31 March 2021.
A similar retrospective restatement of comparative
financial information has been made in these interim
condensed financial statements as at 1 April 2021 and
for the six month period ended 30 September 2021.
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.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
12

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2022 (unaudited)
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 required 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. The Group has reviewed
these accounting judgements and made adjustments
retrospectively as a change in accounting policy (refer
to note ‘change in accounting policies’).
GLOBAL PANDEMIC OF CORONAVIRUS
DISEASE 2019
The Group continues to monitor developments
and initiate plans to mitigate adverse impacts and
maximise opportunities.
These interim condensed consolidated financial
statements have been prepared based upon
conditions existing at the end of the reporting period,
30 September 2022, 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 FY23
13

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2022 (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.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
14

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2022 (unaudited)
Segment revenueSegment profit
6 months
to 30
September
2022
(unaudited)
6 months to
30 September
2021
(unaudited)
(restated)
6 months to
30 September
2022
(unaudited)
6 months to
30 September
2021
(unaudited)
(restated)
SEGMENT REVENUE AND RESULTS$’000$’000$’000$’000
Continuing operations
AWF38,50139,688328505
Madison, Absolute IT and JacksonStone
& Partners84,49370,7594,5613,629
Total for continuing operations122,994110,4474,8894,134
Investment revenue12–
Central administration costs and directors fees(1,273)(1,115)
Finance costs(651)(549)
Profit/(loss) before tax2,9772,470
Income tax expense(883)(944)
Profit for the year2,0941,526
Revenue reported above represents revenue generated from external customers. Inter-segment sales in the
year were $56,000 (2021: $146,000) and have been eliminated from the above table.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
15

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2022 (unaudited)
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
2022
(unaudited)
30 September
2021
(unaudited)
(restated)
31 March
2022
(Audited)
SEGMENT ASSETS
$’000$’000$’000
AWF
24,43125,28525,947
Madison, Absolute IT and JacksonStone & Partners
60,87362,76362,511
Total segment assets
85,30488,04888,458
Unallocated assets
8152,9222,961
Total assets
86,11990,97091,419
For the purposes of monitoring segment performance and allocating resources between segments,
the chief operating decision maker monitors the tangible, intangible and financial assets attributable to
each segment. All assets are allocated to reportable segments other than cash, cash equivalents and
tax assets of the parent.
30 September
2022
(unaudited)
30 September
2021
(unaudited)
(restated)
31 March
2022
(Audited)
SEGMENT LIABILITIES$’000$’000$’000
AWF8,2839,0849,175
Madison, Absolute IT and JacksonStone & Partners25,02020,69521,551
Total segment liabilities33,30329,77930,726
Unallocated liabilities15,91423,77623,998
Total liabilities49,21753,55554,724
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 FY23
16

6 months to
30 September
2022
(unaudited)
6 months to
30 September
2021
(unaudited)
(restated)
6 months to
30 September
2022
(unaudited)
6 months to
30 September
2021
(unaudited)
(restated)
OTHER SEGMENT INFORMATION$’000$’000$’000$’000
Depreciation
and amortisationImpairment
AWF
708865––
Madison, Absolute IT and JacksonStone
& Partners
1,5791,608––
Unallocated
––––
Total
2,2872,473––
Non-current
assets
Net additions to
non-current assets
AWF
14,92316,243851,153
Madison, Absolute IT and JacksonStone
& Partners
43,56246,43315535
Unallocated
––––
Total
58,48562,6762401,188
Employee
benefits
Contractor
costs
AWF
34,44435,4967214
Madison, Absolute IT and JacksonStone
& Partners
28,11621,26347,35540,835
Unallocated
1,5191,412––
Total
64,07958,17147,42740,849
Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2022 (unaudited)
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
17

GROUP
6 months to
30 September
2022
(unaudited)
6 months to
30 September
2021
(unaudited)
REVENUE FROM CONTRACTS WITH CUSTOMERS
$’000$’000
Revenue earned on temporary placements
– AWF
37,05338,824
– Madison, Absolute IT and JacksonStone & Partners
65,24952,158
Total revenue earned on temporary placements
102,30290,982
Revenue earned on permanent placements
– AWF
854677
– Madison, Absolute IT and JacksonStone & Partners
6,0535,953
Total revenue earned on permanent placements
6,9076,630
Revenue earned on a retained basis
– Madison, Absolute IT and JacksonStone & Partners
2,8962,706
Total revenue earned on a retained basis
2,8962,706
Other service revenue
– AWF
593105
– Madison, Absolute IT and JacksonStone & Partners
10,29610,024
Total other service revenue
10,88910,129
Total revenue
122,994110,447
GEOGRAPHICAL INFORMATION
The Group operates in one geographical area,
New Zealand (country of domicile). All revenues from
external customers, and non-current assets other
than financial instruments, deferred tax assets and
post-employment benefit assets are attributable to
the Group’s country of domicile.
INFORMATION ABOUT CUSTOMERS
No one customer accounts for more than 10.0% of
the Group’s revenue and therefore the Group does
not have a reliance on its major customers (for the
six month period ended 30 September 2021, no one
customer accounted for more than 10.0% of the
Group’s revenue and therefore the Group does not
have a reliance on its major customers)
Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2022 (unaudited)
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 2022 (unaudited)
GROUP
RECONCILIATION OF NET PROFIT AFTER TAX TO CASH FLOWS
FROM OPERATING ACTIVITIES
6 months to
30 September
2022
(unaudited)
6 months to
30 September
2021
(unaudited)
(restated)
$’000$’000
Net profit after income tax
2,0941,526
Adjustments for operating activities non-cash items:
Depreciation and amortisation
2,2862,473
Loss/(Gain) on disposal of property, plant and equipment
(5)2
Movement in doubtful debts provision plus bad debt write off
in current year
(1)45
Movement in deferred tax
(342)(220)
Equity-settled share-based payments
10021
Interest on contingent consideration to the vendor of JacksonStone
& Partners
–13
Fair value loss on contingent consideration
–585
Total non-cash items
2,0382,919
Movements in working capital
(Increase)/decrease in trade and other receivables, and contract assets
849116
Increase/(decrease) in trade and other payables, contract liabilities
and provisions
982,201
Increase/(decrease) in taxation payable
(1,215)(1,330)
Total movement in working capital
(268)987
Cash flow from operating activities
3,8645,432
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
19

Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2022 (unaudited)
DIVIDENDS
On 26 October 2022 the directors resolved to declare
a fully imputed interim dividend for the year ended
31 March 2023 of 6.5 cents per share (total dividend
$2,321,686) to be paid on 1 December 2022 to all
shareholders registered on 18 November 2022.
The dividend reinvestment plain is not offered on
this distribution.
On 25 May 2022 the directors approved the payment
of a fully imputed final dividend for the year ended
31 March 2022 of 5.6 cents per share (total dividend
of $1,987,062) to be paid on 30 June 2022 to all
shareholder registered on 17 June 2022. The dividend
reinvestment plan was not offered on this distribution.
On 27 October 2021 the directors approved the
payment of a fully imputed interim dividend for
the year ended 31 March 2022 of 6.5 cents per
share (total dividend of $2,306,412) to be paid on
1 December 2021 to all shareholder registered on
19 November 2021. The dividend reinvestment plan
was not offered on this distribution.
FINANCIAL INSTRUMENTS
The carrying amounts of financial instruments at
balance date approximate the fair value at that date.
CONTINGENT LIABILITIES
The Bank has issued five guarantees on behalf of
the Group totaling $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 2022 or 30 September 2021.
CHANGES IN ACCOUNTING POLICIES
Software as a Service 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
IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors.
Management undertook an assessment of whether
its previously recognised computer software assets
included SaaS arrangements, and concluded that
there were several items of computer software assets
that were SaaS arrangements. As a result, a prior
period retrospective restatement of comparative
financial information as at 1 April 2021, for the period
ended and as at 30 September 2021 was required.
In accordance with the disclosure requirements of IAS
8, the change in accounting policy has been applied
by restating comparative amounts for each of the
affected financial statement lines for prior periods as
it is considered material. The following summarises
the impacts on the Group’s financial statements. In
addition to the impact on the prior years Statement of
Financial Position and Statement of Comprehensive
Income, the adjustments have impacted Statement
of Cash Flows, Reconciliation of Net Profit after
Tax to Cash Flows from Operating Activities and
Segment Performance.
Statement of statement of comprehensive
income for the period ended 30 September 2021
• Amortisation of intangible assets – computer
software (included in Depreciation and
amortisation expense) had been overstated
by $100k; and Computer software expenses
(included in Other operating expenses) had been
understated by $237k.
Statement of financial position as at
30 September 2021
• Closing retained earnings was overstated
by $609k; Computer softwware (included in
Intangable assets – other) was overstated by
$749k; Fixtures and equipment (included in
Property, plant and equipment) was overstated
by $43k; Taxation payable was overstated by
4k; and Deferred tax assets (included in in net
Deferred tax liabilities) were understated by $179k.
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY23
20

Statement of cash flows for the period ended
30 September 2021
• Payments to suppliers and employees (included
in Cashflows from operating activities) had been
understated by $222k; Purchases of property,
plant and equipment had been overstated
by $114k; and Purchases of intangible assets
(included in Cashflows from investing activities)
had been overstated by $108k.
Reconciliation of net profit after tax to cash
flows from operating activities for the period
ended 30 September 2021
• Adjustments for operating activities non-cash
items:
– Depreciation and amortisation had been
overstated by $100k.
– Movement in deferred tax had been
overstated by $4k.
• Movements in working capital:
– Decrease in trade and other receivables, and
contract assets had been understated by $15k.
– Decrease in trade and other payables, and
contract liabilities had been overstated by $4k.
EVENTS SUBSEQUENT TO REPORTING DATE
Interim dividend
On 26 October 2022 the directors approved
the payment of a fully imputed interim dividend
of $2.322 million (6.5 cents per share) to be paid
on 1 December 2022.
Other
There were no other material events subsequent
to reporting date.
Accordant Group Limited
Notes to the interim condensed consolidated financial statements
For the six month period ended 30 September 2022 (unaudited)
FINANCIAL STATEMENTSACCORDANT GROUP INTERIM REPORT FY22
21

Directors
Simon Bennett (Chairperson and
Non-independent Director)
Simon Hull (Non-independent Director)
Wynnis Armour (Independent Director)
Nicholas Simcock (Independent Director)
Laurissa Cooney (Independent Director)
Richard Stone (Non-independent Director)
Auditor
Deloitte Limited
Deloitte Centre
80 Queen Street
PO Box 33
Auckland
Phone: +64 9 309 4944
Fax: +64 9 309 4947
ACCORDANT GROUP INTERIM REPORT FY23
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
Ph: +64 9 526 8770
22
Directory.

Registered Office of
Accordant Group Limited
Level 6, 51 Shortland St
PO Box 105 675
Auckland 1143
Ph: 09 526 8770
accordant.nz