Accordant Group FY24 Annual Report
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Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at June 2023
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Results for announcement to the market
Name of issuer Accordant Group Limited
Reporting Period 12 months to 31 March 2024
Previous Reporting Period 12 months to 31 March 2023
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$212,385 -6.6%
Total Revenue $212,385 -6.6%
Net profit/(loss) from
continuing operations
-$10,008 -606.2%
Total net profit/(loss) -$10,008 -606.2%
Interim/Final Dividend
Amount per Quoted Equity
Security
Not Applicable. No Final Dividend is proposed.
Imputed amount per Quoted
Equity Security
Not Applicable.
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
-$0.62203747
-$0.61745279
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer Annual Report
Authority for this announcement
Name of person
authorised
to make this announcement
Rod Hyde
Contact person for this
announcement
Rod Hyde
Contact phone number 09 526 8797
Contact email address rod.hyde@accordant.nz
Date of release through MAP
29/05/2024
[Audited/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
NZX release
29 May 2024
Accordant Group reports return to growth for AWF, Public Sector spending affects white collar
businesses.
• Revenue $212.4 million and NPAT of $(10.0) million post goodwill impairment
• Net operating cashflow $2.3m
• 7.9% growth in AWF revenue
• Public sector revenue down 12.4%
Accordant Group Limited [NZX:AGL] today announces an after-tax loss of $10.0 million for the year
ended 31 March 2024.
In line with the Market Update of 4 March 2024, Group revenue was $212.4m being 6.6% lower than
the prior year (FY23: $227.4 million).
Accordant Group CEO Jason Cherrington said the New Zealand economic environment and labour
market have remained inconsistent and challenging through calendar 2024.
Interest rate pressures, rising business costs, a fall in hiring demand and a curb on public sector
spending all contributed to a contraction in labour markets.
The Group’s white-collar businesses felt the effects of the downturn most noticeably in the government
sector and in response operating costs have been appropriately reduced in some areas.
Madison Recruitment had a highly challenging financial year with demand from Government slowing
materially, compounded by a more widespread slowdown in entry level and support roles.
Accordant has therefore impaired the carrying goodwill of the business as at 31 March 2024 by $6.5m.
Madison continues to seek growth through a strategic focus on mid-senior specialist, management and
leadership roles at levels below the tiers currently serviced by Hobson Leavy and JacksonStone &
Partners.
The refocusing of AWF towards the civil and infrastructure sectors paid off with a 7.9% lift in annual
revenue. This accelerated to 16% in the final quarter, supporting AWF’s strategy of targeting higher-
margin work in resilient sectors.
The decision to impair AWF’s goodwill by $4.5m reflects a prudent approach to the uncertainty of New
Zealand’s rate of growth and its impact on the sector in the medium term.
Cherrington said “AWF’s performance bucked the macro market trend and was evidence that clients
are choosing its methodologies, candidate care and commitment to Health and Safety excellence over
its competitors”.
Accordant Group Limited
Level 6, 51 Shortland Street, Auckland
PO Box 105 675, Auckland 1143
Tel 09 526 8770
accordant.nz
Hobson Leavy completed its first 12 months as part of the Group. Whilst a more challenging second
half of the year eventuated, they were less impacted than other areas of the group due to the nature of
executive search and recruitment. This lower performance and a recalibration of expectations for FY25
resulted in the earnout payable to the vendors being reduced.
JacksonStone & Partners was adversely affected by the post-election slowdown in hiring in the
Wellington public sector and adapted by further diversifying the business's focus outside its core
central government channel. JSP expects demand to return in the medium term to support the delivery
of new government initiatives and broader private sector opportunities.
Absolute IT was affected by the trend in New Zealand and globally for organisations to slow their tech
recruitment following buoyant hiring in 2021 and 2022.
Many organisations have paused digital transformation plans and tech upgrades, but Absolute IT is
well-placed to capitalise as these are reinstated to solve productivity issues.
Cherrington points to collaborative efforts in sector targeting and opportunities to build new revenue
channels as examples of both the uniqueness and strength of the Group.
“Despite the tough year all teams across the Group have navigated, they remain focused on today’s
opportunities and are positioning for future need”.
The Board has resolved to suspend dividend payment during the current economic climate where a
good portion of clients exercise restraint in hiring.
Accordant Board Chair Simon Bennett said that “while there is currently restraint in hiring, New
Zealand will resume its growth and Accordant’s breadth of revenue streams positions the Group to
deliver upon pent up demand and long-term talent needs”.
ENDS
Jason Cherrington For the Board:
Group CEO Simon Bennett, Chair
For further information contact Jason Cherrington +64 21 781 389.
---
Annual Report 2024
FINANCIAL HIGHLIGHTS 2
ACHIEVEMENTS 3
CHAIR’S REPORT 4
CEO’S INSIGHTS 6
WHAT DRIVES US 10
OUR DIFFERENCE 11
OUR BUSINESSES 12
OUR LOCATIONS 13
RETHINKING LEADERSHIP 14
NAVIGATING DIGITAL INNOVATION 16
CLIMATE CHANGE 18
BOARD OF DIRECTORS 20
FINANCIAL COMMENTARY 23
INDEPENDENT AUDITOR’S REPORT 24
FINANCIAL STATEMENTS 26
NOTES TO THE FINANCIAL STATEMENTS 30
COMPANIES ACT 1993 DISCLOSURES 69
DIRECTORY 79
Jason Cherrington,
Group CEO
With our long history
and experience of
market fluctuations
we remain confident in
seeing more buoyant
conditions that follow
a period of contraction,
and furthermore our
broad capability to
deliver within it.
1
Financial Highlights
$212.4m
Revenue
FY2023, $227.4 million
$(10.0)m
Net Profit / (Loss) After Tax
FY2023, $2.0 million
$22.6m
Shareholders' Funds
FY2023, $34.6 million
$2.3m
Net Operating Cash Flow
FY2023, $4.7 million
$24.4m
Net Bank Debt
FY2023, $21.5 million
2ACCORDANT GROUP ANNUAL REPORT 2024
Achievements
2,064
Training outcomes delivered.
14,600+
Temporary and contract
assignments filled across
New Zealand.
27,000+
Safety engagements with
our temporary employees.
Hours worked by
TWC participants across
82 client partners.
AWF achieved Impac Prequal
5 star certification and Totika
PreQual Gold Member status.
Accordant Group achieved
Toitu carbonreduce
certification.
61,788
8
,0681,609
Candidates placed into
a temporary, contract or
permanent role.
The Work Collective won
the RCSA Industry Award for
Excellence in Social Purpose for
the second consecutive year.
Organisations
partnered with to deliver
recruitment services.
ACCORDANT GROUP ANNUAL REPORT 20243
C h a i r ’s R e p o r t
Simon Bennett, Chair
4ACCORDANT GROUP ANNUAL REPORT 2024
After the disruptions of recent years, our teams
have been working resolutely in pursuit of
momentum. Now with the added backdrop of
economic recession and a prolonged recovery
hindering their progress, I would characterise this
period as one of the toughest trading conditions
we have operated in for quite some time.
So whilst this report details FY24, it is reflective of a moment
in time. Our businesses have rich and long histories of trading
through economic cycles. Experience tells us significant
opportunities follow soon after the bottoming out period.
Therefore, whilst we are removing costs wherever we can, we
are reticent to reduce our capability by down sizing our highly
talented delivery teams.
AWF has been successful in this regard. The identification,
investment and targeting of market opportunity in relative
stable sectors is paying off. They have turned the corner
and the momentum is already evident in their FY24 results.
Our conservative approach protected us when the previous
government loosened immigration settings.
Indeed, our white-collar business units are encouraged by
AWF’s trajectory, as they currently wear the impact of sluggish
hiring from the public sector and certain pockets of the private
sector as well. In FY24, this segment’s revenue dropped by 14.2%.
It indicates the turbulence in the market, but importantly we are
buoyed that a heavy majority of revenue has been sustained.
Absolute IT and Madison have had the most challenging
conditions in FY24. JacksonStone & Partners and Hobson Leavy,
while not delivering at their usual levels, have been less impacted
due to the nature of executive search and selection.
I unhappily report a loss after-tax of $10m in FY24, largely
on account of the decision to impair the carrying goodwill
of Madison and AWF. As mentioned, the current trajectory in
AWF is positive, however we are taking a cautious approach to
the growth rate considering New Zealand’s macroeconomic
settings. For Madison, the impairment recognises that the
volume of work in some of Madison’s core revenue channels has
changed. The MBIE Jobs Online data for example, shows that
“Clerical and Administration” job advertisements in March 2024
have slumped down to 2014 levels with the only other period
lower than this being the onset of the pandemic in March 2020.
The opportunity ahead for Madison is in increasing its share of
mid-senior specialist recruitment and plans are afoot.
Having paid a 3.0 cent interim dividend during the year, the
Board of Directors have resolved to suspend the payment of
dividends during the current economic climate where a good
portion of our clients continue to exercise restraint in hiring.
New Zealand will resume its growth – we are already
hearing anecdotes of pent-up demand. Furthermore, there
are more nuanced long-term issues such as underlying
productivity, to solve.
Last year I referred to our strategy of optimisation, expansion
and diversity of earnings remaining relevant and achievable.
This is our long-term strategy, and it remains unchanged.
Accordant has been, and will return to, being a reliable
dividend stock.
Your Board is supporting Jason and the management team as
they remain cognisant of market movements. We test ourselves
hard on where to stay the course and where to adapt – this
agility is paramount to success.
On behalf of the Board, I would like to recognise our entire
team for their immense efforts at a time where resilience is
tested. Remember that every interaction you make today
has a cumulative effect, and when multiplied across our entire
Group, the difference is significant. In buoyant times and tough
times, remember the positive impact you have on the individual,
the organisation, and our country.
I would also like to thank Laurissa Cooney for her four years
of service as a Board Director and Chair of the Audit & Risk
Committee. She has been an active contributor and strong
supporter of the team. We farewell her at the end of May and
have appreciated the smooth transition to Bella Takiari-Brame
who we welcomed to the Board in January.
We look forward to introducing both Bella and our newly
appointed Chief Financial Officer, Rod Hyde at our annual
shareholder meeting later in the year.
For the Board,
Simon Bennett, Chair
ACCORDANT GROUP ANNUAL REPORT 20245
CEO’s Insights
Jason Cherrington, Group CEO
6ACCORDANT GROUP ANNUAL REPORT 2024
With Accordant’s revenue generated from various industries
across the country within both the public and private sectors,
we are somewhat a barometer for the peaks, troughs, and
general economic state of the country. We notice trending
movements in hiring intentions and job application numbers
usually ahead of the officially reported unemployment rate,
with the pace of decision making that we see leading up to and
throughout the search and selection process a reflection of
business confidence and also an indication of the job seeker’s
appetite to covet a new role or hunker down and stay put.
New Zealand’s economic environment and labour market per se
has remained inconsistent and challenged through FY24, where
the impact of higher interest rates, increasing business costs, a
fall in hiring demand and a coalition government determined to
tackle Government spending at pace all contributing to labour
market contraction. Unemployment rose to 4.3% in the March
2024 quarter, a trend that is expected to continue well into FY25.
As the largest provider of labour and talent solutions in New
Zealand it is perhaps unsurprising that our resulting revenues in
the public sector have been impacted in the short term, down
12.4% vs prior year. The uncertainty and slowdown in decision
making that existed prior to the October 2023 general election
remained, albeit with a sense of pent-up demand that has been
unfulfilled and where skills shortages remain in some specialist
areas and senior role appointments that will need to be met at
the back end of this current cycle. We did however expect the
private sector to rally faster than the current trends suggest,
and two consecutive quarters of negative GDP growth further
impacted business confidence.
At the half year we continued to have cautious optimism for the
second half performance, where events such as the general
election and other economic factors signalled potential recovery.
Clearly however, New Zealand’s economic recovery is taking
longer than anticipated and this adversely impacted the second
half performance and full year result, with total revenue down by
6.6% on the prior year.
Due to uncertainty in the medium term and performance below
expectations in FY24, we have taken the decision to impair the
goodwill held on our balance sheet for Madison Recruitment
and AWF by $6.5m and $4.5m respectively. Whilst these
adjustments are non-cash, they do make up a large portion of
the NPAT loss of $10m for the year.
Whilst we have swiftly responded to these fluctuations with a
necessity to reduce operational costs, our core capability has
not been compromised in order to maximise the opportunities
that still exist today, and those expected to return in the short to
medium term.
We have adapted operating models, doubled down on the
growth success we have seen in our blue-collar business this
year, and maximised conversions elsewhere to offset the pauses
in some clients’ hiring activity, whilst laying down the groundwork
for the medium term when hiring activity returns to normal levels.
With our long history and experience of market fluctuations we
remain confident in seeing more buoyant conditions that follow
a period of contraction, and furthermore our broad capability
to deliver within it. We’ve also taken the opportunity to further
develop our talent pool across the business.
MADISON RECRUITMENT
Madison Recruitment had a highly challenging year. Roles
within the salary banding that Madison typically recruits for (entry
level to mid-level corporate roles) saw a significant decline.
In today’s world of work it is a reality that some types of roles
have disappeared completely, and some are being recruited
direct more easily. As indicated in the MBIE Jobs Online data from
March 2024, “Clerical and Administration” job advertisements
have slumped to 2014 levels. We have noted the volume of white-
collar temp roles has reduced since 2020, although Madison
maintains a strong market share and capability in this space. This
includes a number of ongoing partnerships with key government
clients that continue to benefit from our ability to deliver quality
volume temp staffing solutions at pace. The use of external
recruitment agencies for hiring has materially slowed in the last
six months, and while we expect central government changes
will create opportunity, part of that market is unlikely to return to
previously seen levels.
ACCORDANT GROUP ANNUAL REPORT 20247
We have therefore concluded that the carrying goodwill for
Madison needs to be appropriately reduced, specifically by $6.5m.
The outlook for Madison does however remain positive as its
breadth and nature of services evolves. We have a specific
focus on supporting clients to recruit more mid-senior
specialist, management and leadership roles. These areas are
forecast to see noticeable movement this coming year as the
push for greater productivity across the country continues
and the leadership competencies required evolve. In an area
of the market that sits below the tier that Hobson Leavy and
JacksonStone & Partners would normally service, it is not only
an opportunity to capitalise on but one that they can help
Madison unlock.
ABSOLUTE IT
Within our interim report I highlighted the underperformance
of Absolute IT, and a need to adapt our operating model.
After a particularly buoyant market for IT professionals in 2021
and 2022, Absolute IT saw a significant decline in the demand
for candidates in FY24. A trend that has been echoed globally.
Having increased the size of their technology departments of the
previous years, we saw a trend of many organisations slowing
their tech recruitment significantly or, in some cases, reduced the
size of their tech teams.
Absolute IT has also transitioned through restructure to ensure
that the business is fit for the future. The plans that have been
paused for many organisations around digital transformation and
efficiencies enabled by technology have not gone away – the
economy is somewhat depending on these activities picking up
and Absolute IT is well-placed to capitalise on that – even more
so in its evolved form.
HOBSON LEAVY
With Hobson Leavy completing its first year as part of the
Group, I have very much enjoyed getting to know the team and
learning first-hand the key ingredients for their high reputation.
With the work they do with executives, Boards and leadership
assessment, they uncover talent needs where they may
confidently introduce our other business units for a connected
client solution. The sharing of leads has been organic, and we
look forward to further embedding the team in the upcoming
year. The effects of economic slowdown did eventually impact
the final quarter of the year and we have adjusted the fair
value of the business in line with that movement. With Boards
and Executive teams reviewing capability more frequently in
the current climate it is expected they will benefit from this
movement over the forthcoming year.
JACKSONSTONE & PARTNERS
With a large portion of JacksonStone & Partners’ revenue
coming from the public sector in Wellington, results were
negatively impacted. The year began on a strong note, building
upon a record result from the previous year. Favourable market
conditions initially supported our growth trajectory. Uncertainty
post-election culminated in many of our central government
clients pausing hiring decisions, and more specifically their
appetite to hire or extend existing contractors. In response to
the decrease in revenue, we adapted by further diversifying the
business's focus outside of our core central government channel.
Our financial performance gradually improved toward the
end of year, positioning us on a positive path as we approach
FY25. Whilst not immune to current economic conditions, we
have also seen the continued growth of our Maori recruitment
practice throughout FY24. The breadth and depth of our many
historic relationships has been instrumental in navigating these
challenges and seizing opportunities as the market continues
to evolve.
AWF
To recognise the uncertainty in New Zealand’s rate of growth
in the medium term, we have taken a more prudent approach
to assessing AWF’s carrying goodwill. This has led to an
impairment of $4.5m.
However, despite challenges at the macroeconomic level,
AWF’s results are positive. AWF’s growth has bucked the
labour hire market trend and has been contributed to by our
early conservative approach to the construction sector where
bad debt and overexposure to migrant labour costs have seen
multiple competitors close branches and/or fall victim to
insolvency proceedings.
After a slow start to the year AWF’s revenue finished more
than 7% up on prior year with an accelerating 16% in the final
quarter, largely off the back of a targeted focus in the civil and
infrastructure sectors as well as specific manufacturing and
engineering clients.
Worker retention and satisfaction remains high, as does growth
in share of key blue-chip clients who continue to value AWF’s
resolute commitment to Health & Safety excellence as well as
best practice recruitment methodologies.
While pleasing to see the results following a purposeful change
of focus, we now have an opportunity to build on this momentum
and I am excited to see the business continue to demonstrate
how a positive and high level of care for labour workers can
make a tangible difference to our results and market position.
New Zealand’s economic
environment and labour market
per se has remained inconsistent
and challenged through FY24
8ACCORDANT GROUP ANNUAL REPORT 2024
SOCIAL & ENVIRONMENTAL IMPACT
The Work Collective’s unique model and its mission was once
again recognised and crowned the winner of the Excellence in
Social Purpose category at the 2023 RCSA Awards. We were also
finalists in Excellence in Diversity, Equity, Inclusion and Belonging
and finalists also at the SEEK SARA awards for Outstanding
Progress in Diversity, Equity & Inclusion. In FY24, The Work
Collective has focused on supporting youth, Maori and Pasifika
job seekers who have been facing challenges fully accessing
the employment market. The work has resulted in 162 individuals
placed into a mix of temporary and permanent positions.
With the social impact it delivers, The Work Collective remains
a key part of Accordant’s Environmental, Social and Corporate
Governance strategy.
We are also pleased to report that Accordant is now a Toitu
carbonreduce certified organisation, having measured our
operational emissions in accordance with ISO 14064-1 and the
GHG Protocol. With our base year emissions now verified, we
will be rolling out initiatives this year to assist us in our reduction
journey and intend to measure our progress annually.
GROUP COLLABORATION EXPANDS
In the last six months, we have made strides in cross-unit
collaboration. Accordant’s continued success will be in each
business unit thriving, whilst identifying and then harnessing
additional ways in which the sum of the parts is greater. And so,
the FY25 year is a theme of amplifying our collective impact.
Our positioning within the infrastructure sector is growing.
In particular, AWF and JacksonStone & Partners have joined
forces and now represent the only recruitment members in the
Infrastructure New Zealand (INZ) Association.
Although our brands already serve the health sector with
their existing services, there is vast opportunity that remains
untapped. In our history we have acquired and divested of
a health business, and in recent times have also assessed
acquisition opportunities. We have ascertained that the path
forward now is to build rather than acquire. We have existing
infrastructure, experience and expertise across our Group that
is being tapped into and assembled, with potential to deliver a
significant standalone revenue channel in this area.
LEADERSHIP DEVELOPMENT
Investment into our leaders has remained important for us
through these uncertain times, with many undertaking a blended
leadership programme across the Group. The programme not
only brings together leaders from across all functions and
business units but is also an invaluable way of strengthening
ties when presenting our overall broad capability and market
knowhow.
Indeed, for our leaders, as it is for leaders across our client base,
there are a plethora of skills and aptitude required to lead during
tough economic times. At the same time we are confronted with
accelerating changes as the future of work evolves with AI and
other significant advances in technology. In our spotlight on
Leadership on page 14, we share insights into what has and has
not changed. Following this is our spotlight on Navigating Digital
Innovation and the Future of Work. In a people-based company
like ours, trust and authenticity are huge drivers of loyalty and
so ours will be a journey of utilising technology in a way that
would make those drivers flourish. We are here to partner as
organisations seek to take advantage of the opportunities
change brings and also mitigate the risks.
AGILITY, ADAPTABILITY & MOMENTUM
Often repeated but possibly more pertinent than ever before
– Accordant has an enviable diversification of services across
many sectors. This means that whilst we are not immune, we are
better positioned than many to weather pockets of turbulence,
challenging as they may be. Past downturns have seen some
competitors contract and others exit altogether. Nevertheless,
our yardstick must be that of continuous improvement and agility
to meet our customers’ evolving needs.
Clearly, we have experienced an unsatisfactory year of trading
and whilst we can benchmark our results against macro
environmental conditions, it does not change the net result
nor my unrelenting determination to see the business return to
a better financial performance. For my part I will continue to
ensure we focus our resources in the places that give us the
best opportunity for return and get us back to more sustainable
underlying earnings.
Just as we are attuned to declining market confidence as
we have experienced over the past few months, we are also
sensitive to improvements in business and job hunter confidence
long before official statistics validate this. We are proactively
working to ensure momentum is sustained.
There are many in our organisation who have previously traded
through tough economic times and whilst they acknowledge
that the current trading conditions are unique, their longstanding
experience tells them demand always bounces back. They also
serve as pathfinders for those who have not experienced such
inconsistent times.
And so, I thank all my team for remaining resolute in fluid
conditions, for their adaptability and resilience in changed times.
We continue to stay close and relevant to our broad and loyal
customer base, while seeking opportunities to further enhance
it. The continued efforts of my team are essential to ensuring
this is a success. Finally, I’d like to thank the Board for their
continued and consistent energy, wisdom, and support in all our
endeavours.
Jason Cherrington, Group Chief Executive
Investment into our leaders has
remained important for us through
these uncertain times, with many
undertaking a blended leadership
programme across the Group.
ACCORDANT GROUP ANNUAL REPORT 20249
Our VisionOur Belief
We believe
it is people
that drive
our country
forward.
To grow our impact
as New Zealand’s
leading recruitment,
resourcing and people
solutions partner for
the benefit of our
people, customers,
finances and country.
Our People
At the heart of our business is a group
of curious, resilient, capable and engaged
people who are driving us forward.
Their determination to do better empowers
us to contribute more additively to the
lives of New Zealanders and the success
of New Zealand.
Our Customers
We will choose and partner with our
clients wisely, adding value through quality,
expertise, efficiency, relationships and
customised solutions.
Our Finances
We will drive strong dividend and earnings
growth through continued performance
and improvement initiatives to create
sustainable shareholder value.
Our Country
Our unique position enables us to provide
proactive solutions to address structural
challenges in the employment market,
making an impact by growing and shaping
our workforce for the current and future
needs of New Zealand.
What Drives Us
10ACCORDANT GROUP ANNUAL REPORT 2024
ENABLING
GROWTH
Strong metro
and regional
representation to
enable productivity
and growth
CONNECTING
PEOPLE
Building networks
and relationships
across New Zealand
DIVERSITY &
INCLUSION
Growing capability
and nurturing a
diverse and inclusive
workforce
INNOVATIVE
SOLUTIONS
Delivering innovation
and insights that
help shape the
employment market
Our Difference
ACCORDANT GROUP ANNUAL REPORT 202411
The Work Collective is an
employment initiative that delivers
social impact through connecting
employers, employment support
organisations and Accordant’s
businesses with candidates who
face barriers to employment,
providing them access to
meaningful work opportunities.
Launched in 2019, The Work
Collective offers organisations
a way to achieve social impact
through their staffing supply chain.
Madison Recruitment was
established in 1998 and has become
the recruitment partner to a wide
variety of organisations across the
private, public, and not-for-profit
sectors. Madison’s services span
entry level and support roles through
to professional and managerial
positions. Each year, hundreds of
permanent positions are filled by
candidates who have been sourced
and matched to meet specific
business requirements and, every
day, hundreds more employees
work on temporary and contract
assignments across the country.
Since 1988, AWF has had a proud
history of supplying entry-level,
semi-skilled and skilled workers
to a range of sectors, spanning
infrastructure, construction,
transport, logistics, manufacturing,
primary industries and many
more. From Kaitaia in the north
to Invercargill in the south,
AWF’s network of 21 branches
provide hundreds of enterprises
throughout New Zealand with
the human capital necessary to
complete major projects, meet
increased demand in goods and
services, and fill the skills gap in
permanent workforces.
Founded in 2006, Hobson Leavy
is a retained executive search firm
operating exclusively in the ‘C Suite’,
successfully leading hundreds of
executive searches and appointing
some of the country’s most senior
leaders at Board, CEO and Executive
level. With an extensive track record
in both the public and private sectors
Hobson Leavy has built a substantial
network of clients and contacts.
They are also a founding member
of Panorama, a global network of
independent executive search firms.
Founded in 2000, Absolute IT
caters to the specific recruitment
needs of the technology and digital
sectors. Absolute IT’s specialist
recruiters provide permanent and
contractor staffing services
New Zealand-wide from their offices
in Auckland, Hamilton, Wellington
and Christchurch. From resourcing
large transformation programmes
in the public sector, to sourcing the
right fit for large corporates and
attracting world class talent for
New Zealand start-ups, Absolute IT
is relied upon for its expertise and
extensive networks.
JacksonStone & Partners is an
executive search and recruitment
consultancy, specialising in
permanent and interim professional
placements. Established in 2011,
JacksonStone works across all
disciplines up to Chief Executive level
and including board appointments,
for organisations in the public,
private and not-for-profit sectors.
JacksonStone offers global search
reach through their membership
of the CFR Global Executive
Search alliance. Their experienced
consultants have the capability
to identify and place talent both
nationally and internationally.
Our Businesses
12ACCORDANT GROUP ANNUAL REPORT 2024
ABSOLUTE IT LOCATION
AWF LOCATION
JACKSONSTONE LOCATION
MADISON LOCATION
SELECT LOCATION
HOBSON LEAVY LOCATION
KEY
Kaitaia
Kerikeri
Whangarei
Auckland
Waihi
Tauranga
Rotorua
Hawke's Bay
Palmerston North
Petone
Wellington
Christchurch
Invercargill
Dunedin
New Plymouth
Whanganui
Nelson
Blenheim
Hamilton
Our Locations
Our national presence, coupled with our
local knowledge, allows us to deliver more
for both our candidates and clients.
ACCORDANT GROUP ANNUAL REPORT 202413
Our Group’s capability continues to expand across the broad
scope of leadership appointments, so we can provide the best
possible support to organisations who are facing significant
change. Following the tumultuous events of recent years,
many New Zealand organisations are shining a spotlight on
what successful leadership is for them, and how they ensure
it continues to be effective. This includes reflecting on the
qualities and capabilities needed in their executive team today,
and into the future.
Speaking to Hobson Leavy’s founding partners Carrie Hobson
and Stephen Leavy, it’s evident that despite a strong recovery
from the COVID pandemic, organisations are faced with a
range of challenges in today’s shifting economic and social
environment. They’re looking to their leaders to chart a course
forward and harness the opportunities in front of them, from
new technologies and innovation to talent infrastructure design
and access to skills.
Effective leaders must employ a range of styles depending
on the circumstances or situation. This agility is important in
an increasingly complex world of work. Psychologist and
author Daniel Goleman describes six leadership styles
based on different aspects of emotional intelligence:
authoritative, pacesetting, affiliative, democratic, coaching and
coercive. When leaders are well versed in several leadership
styles, and can alternate between them dependent on the
circumstances, their businesses can perform better and they
build a stronger culture.
For example, in times of difficulty when decisions need to be
made and organisations need to be reorientated, a leader may
be more authoritative or visionary in their approach. Once the
pathway forward is clear, the leader may switch their focus.
This could be towards an affiliative leadership style where they
build a work environment emphasising personal connections
and positivity, a coaching leadership style focusing on the
personal development of their team, or a more democratic style
of leadership where every member of the team has a voice and
provides feedback to management.
We were delighted to welcome
executive search specialists Hobson
Leavy to the Accordant Group in
January 2023, adding to our capability
with their presence in Auckland and
Wellington, and their long history
of commitment to quality work
as an executive search specialist.
With their location and client base,
they complement JacksonStone &
Partners, who joined the Group in 2019.
JacksonStone & Partners specialises
in permanent and interim professional
placements up to chief executive and
board level across the public, private
and not-for-profit sectors.
Rethinking
Leadership
– the increasing
importance of
resilience and
adaptability.
14ACCORDANT GROUP ANNUAL REPORT 2024
Regardless of style, effective leadership builds trust and
improves employee satisfaction, which in turn positively impacts
organisational performance. Following the height of the COVID
pandemic, authentic leadership has risen in prominence. This
means leaders who are self-aware, who can bring their whole
selves to work, and who inspire the same within their workforce,
are most in demand. These leaders also show other strengths
such as resilience, curiosity and nimbleness – as well as an innate
ability to manage the risks their organisation or market faces,
acting with pace to mitigate and respond to them.
One style of leadership that’s become less tolerated over the
last 20 years is siloed leadership. All members of an Executive
Leadership team must work together, support each other, and
contribute to the business as a whole rather than focusing
exclusively on their specific area of direct responsibility.
Executive teams are also reshaping as their markets and
customer needs evolve. There is evidence of newer roles
increasingly holding a seat at the executive table, such as Chief
Digital Officers, Chief People Officers, and Chief Sustainability
Officers. Organisations are aware that these more specialist
skillsets complement the broad skills of a traditional leadership
team, helping manage both risks and opportunities.
So then, how do organisations get their leadership right, or
wrong? The key is ensuring that the executive team and the
board are always holding up a mirror to their strengths and
weaknesses. It is also acknowledging that what worked last
year may not work again this year. Market dynamics shift, and
customer needs evolve. The organisations getting it right
understand this and act accordingly.
It is important to recognise that employee needs change over
time too. A widely accepted fundamental tenet of success is
where employees feel a sense of purpose and understand
their ‘why’ behind coming to work. This is top of mind around
today’s leadership table.
Organisations are planning for their future talent needs, and
as part of this are identifying the skills, capability and capacity
that ensures their ways of working are sustainable long into the
future. Skilful workforce planning looks at what needs to happen
next week, next year, and in five years’ time. The question that
needs to be genuinely considered is “what are the needs of,
and the requirements for, our future workforce?”.
With the economic and technological environments changing
so quickly, many of the coming risks and opportunities, not to
mention roles in the future workplace, may not even be visible
yet. That’s why flexibility will be just as key to leaders as to
employees. That also requires changing the traditional approach
to how leaders are chosen and trained. Rather than someone
who’s best at their current role, the focus must shift towards
someone who can adapt to anything, and who is willing to keep
changing the model.
There’s been a resurgence in the belief in Kiwi ingenuity and our
ability as a nation to ‘punch above our weight’ on a global stage.
New Zealanders have an inherent pioneering spirit. With a focus
on resilience and adaptability, this ethos will serve organisations
well as they focus on the future of work in their industry or sector.
Above all, creating a unifying vision for success in a fast-
changing and ambiguous environment will be vital for an
effective leader. Strong leaders will continue to bring diverse
groups of people together who are aligned to a common goal,
even as the pathways to get there change.
Effective leadership builds
trust and improves employee
satisfaction, which in
turn positively impacts
organisational performance.
ACCORDANT GROUP ANNUAL REPORT 202415
The challenge for employers will be keeping up with the
speed of change, to ensure they’re giving their people the best
possible experiences. Our belief has always been that everyone
has the right to participate in rewarding work, which smart
technologies can now enable better than ever, for example
acting as coaches and assistants for new starters and those with
diverse abilities. Studies have shown it can level the playing field
by boosting everyone’s performance.
This opens up both significant risks and opportunities for
employers and workers alike. Microsoft’s Work Trend Index
shows New Zealand workers are among the strongest
adopters of generative AI in the workplace, with 84% using
the technology at work, higher than the global average. Four in
five AI users in New Zealand are bringing their own AI tools to
work. This is challenging employers to quickly introduce training
and cohesive AI strategies and frameworks to ensure workers
are delivering the most value to their organisations without
compromising their security.
In this environment, it’s increasingly important for employers to
consider how to share knowledge faster and better across their
organisations. It’s not uncommon for employees spanning four
generations to be working alongside one another, and there’s an
increasing trend towards later retirement.
With AI evolving faster than any technology to date, this could
exacerbate issues such as frustration and conflict arising from
intergenerational communications, and certain generations being
left behind. What’s considered ‘native’ for one generation may be
‘novel’ for another, as anyone in today’s workplace could attest.
This will require even more focus on strong communication
principles and ways of working to encourage knowledge-sharing
and collaboration.
Digital exclusion is also shaping into a significant issue that
employers need to be mindful of. We have observed that some
employers are increasingly favouring those with AI skills when
recruiting or restructuring. The risk is that it creates an unequal
job market, with the “haves” possessing AI expertise and the
“have nots” struggling to find fulfilling or full-time roles.
It will be important for employers to upskill their people to help
avoid this scenario and maintain a healthy workforce in future
years, alongside jobseekers actively seeking out training to
improve their career opportunities. While finding the resources
to do this is a challenge in the current economic environment,
we expect to see skilling increase over the next few years as
When you think about the future of
work in Aotearoa New Zealand, digital
investment and innovation are even
more important than ever. Significant
advances in generative AI are literally
happening overnight, benefitting
organisations by automating repetitive
tasks, enhancing creativity, improving
decision-making, increasing customer
satisfaction, and facilitating better
human-machine collaboration.
Navigating
Digital
Innovation
& The Future
of Work .
16ACCORDANT GROUP ANNUAL REPORT 2024
businesses try to remain competitive and battle for talent
skilled in AI. Change management will also be at the top of
businesses’ agenda, as employers consider the impact of
new tech investments on their people and prepare them for
the future of work.
In Accordant’s own sphere of people solutions, we see that
AI is also having an impact on the recruitment process.
Common use cases include writing job ads, matching jobs
and candidates, screening, testing, scheduling appointments,
recording interview transcripts, checking references, and
writing personalised replies to applicants. There is enormous
potential for significant cost and time efficiency gains, creativity,
competitive advantage, fewer errors and improvement to
workflows and processes. We continue see the benefits and
efficiency gains of our own investment in technology, which
supports our people with the tools they need to succeed and
deliver more for our clients and candidates.
However, there are also several reasons that are holding both
external and internal recruiters back from AI adoption. Bias in AI
tools has been well-reported, with learning models reflecting
the unconscious biases of the humans that train them. Fears or
misconceptions around security and privacy, as well as the lack
of access to resources and training (especially as generative AI is
still evolving and few specialists are available). Developing those
resources will be a focus for our industry, and we’ll be keeping an
eye on developments overseas.
While New Zealand is yet to issue its own guidance, the UK
government recently introduced guidelines for ‘Responsible AI
in recruitment’. With organisations now realising benefits from
using a range of AI-enabled technologies across virtually every
stage of the recruitment process, the UK government identified
that these technologies also pose risks such as “perpetuating
existing biases, digital exclusion, and discriminatory job
advertising and targeting”. The guide focuses on identifying
potential ethical risks and providing assurance of good practices,
and more frameworks like this can be expected as AI adoption
ramps up.
There’s no doubting that the future of work will be powered by
AI. More and more organisations will be looking for guidance
to prepare their workforces and learn from leading examples.
Starting small, testing, inviting feedback and iterating to enable
greater scale provides a sustainable approach for many. There is
significant opportunity for employers to harness the productivity
gains that AI and other advancing technologies deliver and then,
rather than simply cutting costs, use these gains to power other
areas where these technologies aren’t as effective as people.
At Accordant we remain committed to our own technology
journey, and our focus remains on supporting our people and the
diverse range of candidates and clients we partner with.
We continue see the benefits
and efficiency gains of our
own investment in technology,
which supports our people
with the tools they need to
succeed and deliver more for
our clients and candidates.
ACCORDANT GROUP ANNUAL REPORT 202417
To upskill key decision makers in the business, we engaged
a Climate Change specialist and through engagements with
the Board and ELT this resource has helped to build internal
understanding and capabilities on climate-related matters.
We also benefited from the input of Laurissa Cooney, Chair of
the Audit & Risk Committee, who is on the steering group of
Chapter Zero New Zealand.
For our initial climate-related financial assessment, we
conducted a thorough analysis of our value chain to uncover
potential risks and opportunities related to both physical impacts
and transitioning to a low-emissions economy. We utilised
various sources, including a consideration of historical impacts,
sector-based climate scenario reports from New Zealand, and
future climate projections. Building on this initial assessment
managers can introduce new risks or opportunities through our
risk management framework.
While Accordant has not experienced any material impacts in
the last financial year from climate change, we acknowledge the
effects of both Cyclone Gabrielle and the Auckland Anniversary
flooding events, which occurred in the previous financial
year. This primarily related to the impact on our people and
candidates, disruptions to infrastructure projects and the flow-on
impact on labour resourcing countered by an increased demand
for labour associated with recovery works. Neither event created
a material impact being restricted to our AWF business in a
specific geographic area.
This illustrates that although physical risks may have a flow on
impact upon revenue and cost to service clients, our strategy of
maintaining a diversity of both market segments and operating
across different regions provide a buffer against any short term
and regionalised impacts.
We have identified medium to long-term opportunities, such as
the increase in infrastructure projects to enable adaptation to the
physical impacts of climate change or labour demand generated
by the shift to a low emissions economy. To capitalise on these
opportunities, we will stay well-informed about our clients' short,
medium, and long-term plans that necessitate labour.
While Accordant is not considered
a Climate Reporting Entity under
Aotearoa New Zealand’s climate-
related disclosure framework,
we have advanced our work on
understanding the implications of
climate change for our business.
This year’s focus has been on
upskilling and preparing ourselves,
conducting an initial assessment of
the value chain and measuring our
carbon footprint.
Climate Change
– upskilling,
preparation
and our initial
assessment.
18ACCORDANT GROUP ANNUAL REPORT 2024
Accordant was recently certified by Toitu Envirocare as a Toitu
carbonreduce organisation. This has required Accordant to
measure our annual greenhouse gas emissions since 1 April
2021 and implement and track emission reduction projects.
Toitu’s carbon certification has been issued in accordance with
international standard for measurement (ISO 14064-1), as well as
aligning with GHG Protocol Standards. The Toitu carbonreduce
program is endorsed by, and Toitu Envirocare accredited by,
the Joint Accreditation System of Australia and New Zealand,
and the audits have been conducted in conformance with
international standards.
FY22 emissions were measured at 375.27 tCO2e and FY23
emissions (which included Hobson Leavy) were measured at
382.71 tCO2e.
Having completed our first carbon footprint, we have
confirmed that our impact is relatively small. We have begun
identifying reduction projects and will be finalising reduction
targets in FY25.
Accordant was recently
certified by Toitu Envirocare
as a Toitu carbonreduce
organisation.
19ACCORDANT GROUP ANNUAL REPORT 2024
Bella
Takiari-Brame
Simon
Bennett
Simon
Hull
Bella joined the Board as a Non-
Executive Director on 1 January
2024. She brings global experience
in oil and gas and has led national
and regional initiatives in energy
and economic development. Bella
is a Fellow Chartered Accountant
and Chartered Member of the
Institute of Directors. She holds a
Masters in Management Studies
with Distinction from Waikato
University. Bella, who has Iwi
affiliations to Waikato-Maniapoto,
is passionate about empowering
communities through infrastructure,
wellbeing, and workforce
development at a regional level.
She holds Governance roles in Iwi,
Commercial and Crown entities.
Simon is an experienced business
leader and director. He believes
that our people are central to our
productivity which a successful
economy is built upon. Simon
has been a director of several
businesses and is on the Board of
Trustees for the Ice Foundation
(a charitable trust which owns
business incubator The Icehouse)
and is also a Director of The
Icehouse and Metro Performance
Glass. Simon joined the Board in
June 2021 and was appointed
Chair in January 2022.
Simon founded the Allied Work
Force business in 1988. He was
AWF Managing Director for 27
years and is Accordant Group’s
largest shareholder. He has been
instrumental in growing what is
now the Accordant business from
a single office in Penrose to its
current market leading position.
Before founding Allied Work Force,
Simon was involved in farming,
horticulture, and small business
management. He continues to
be involved in marine-focussed
businesses as well as pursuing his
onshore and offshore yacht racing
passion. Simon is a non-executive
(“non-independent”) Director.
Board of Directors
20ACCORDANT GROUP ANNUAL REPORT 2024
Nick
Simcock
Richard
Stone
Laurissa
Cooney
Nick joined the Board as an
independent Director in January 2018
after 15 years in Managing Director
roles in New Zealand, Australia, and
Asia/Pacific with Korn Ferry. Nick
brings deep industry expertise in
recruiting, outsourcing, consulting
and talent management. Nick was the
CEO and Director of a start-up SaaS
payments business Wrap It Up, which
was sold in 2017. He is a Trustee on
the Wellington Creative Capital Arts
Trust and was formerly on the Otago
University Business School Board
of Advisors. Nick is a Member of the
Institute of Directors.
Richard joined the human resources
consulting industry in 1987,
and went on to co-found three
successful firms, the most recent
of which was JacksonStone &
Partners where he was Executive
Chair. Richard has held a number
of governance roles. He has been
Chair of UNICEF NZ, President
of the Wellington Chamber of
Commerce, a Council member
of Business NZ and a Director of
Wellington NZ. Presently, he is
the Chair of LifeFlight, Chair of
Commerce Building Limited and
a Director of Cape Horn Land
Company Limited. Richard is now
an independent Director.
Laurissa, who is of Te Ati Hau Nui a
Papa Rangi (Whanganui) descent,
joined the Board as an independent
Director in August 2020. Laurissa has
previously held senior management,
auditing and consulting roles
with Deloitte in New Zealand, and
Deloitte Touche in London, and was
the CFO for Te Whare Wananga o
Awanuiarangi. She currently serves
as a Co-Chair of the Aotearoa Circle,
and she is an Independent Director
for Air New Zealand and Goodman
(NZ). She is also a Chair for the Ngai
Tai ki Tamaki Audit & Risk Committee
and a member of the Chapter Zero
steering committee. Laurissa is a
Chartered Member of the Institute
of Directors and a fellow of the
Chartered Accountants Australia
and New Zealand Institute.
ACCORDANT GROUP ANNUAL REPORT 202421
22ACCORDANT GROUP ANNUAL REPORT 2024
REVENUE
Group Revenue of $212.4m is down 6.6%
on the prior year Revenue of $227.4m.
AWF Revenue is up $6.0m (7.9%) on the
prior year.
Revenue sourced from the provision of
services to Commerce (Madison Recruitment,
Absolute IT, JacksonStone & Partners &
Hobson Leavy) was down $21.5m (14.2%).
New Zealand’s economic environment and
labour market has been and continues to be
inconsistent and volatile. Impacted by higher
interest rates, high cost of living, increasing
business costs, two consecutive quarters of
negative GDP growth, a fall in hiring demand
and a coalition government determined to
tackle Government spending, all contributing
to a labour market contraction.
NET LOSS AFTER TAX
A loss after-tax of $10.0m for the year after
providing impairment writedowns of $6.5m
on Madison Recruitment, $4.5m on AWF
and recognising a fair value adjustment
gain of $1.865m on the deferred contingent
consideration payable to the vendors of
Hobson Leavy. The Board expects that
more buoyant market conditions will return
generating demand that will need to be met.
DIVIDEND
The Directors have resolved not to declare
a final dividend for the year ended 31 March
2024 (2023: 3.00 cps). The interim Dividend
paid 1 December 2023 was 3.0 cps
(2023: 6.5 cps).
CASH FLOW
Cash flow from operating activities of
$2.3m was down $2.4m on the prior year
operating cash flow due to lower net cash
from operations $2.0m, increased Bank
interest $0.95m, offset by lower government
grants $0.55m, and lower Taxation paid
of $1.1m.
NET BANK DEBT
Net Bank Debt at $24.4m was up $2.9m
on the prior year $21.5m.
Financial Commentary
ACCORDANT GROUP ANNUAL REPORT 202423
24ACCORDANT GROUP ANNUAL REPORT 2024INDEPENDENT AUDITOR’S REPORT
Opinion
We have audited the consolidated financial statements of
Accordant Group Limited and its subsidiaries (the ‘Group’),
which comprise the statement of financial position as at 31
March 2024, and the statement of comprehensive income,
statement of changes in equity, and statement of cashflows for
the year then ended, and notes to the consolidated financial
statements, including material accounting policy information.
In our opinion, the accompanying consolidated financial
statements, on pages 26 to 68, present fairly, in all material
respects, the consolidated financial position of the Group as
at 31 March 2024, and its consolidated financial performance
and cash flows for the year then ended in accordance with
New Zealand Equivalents to IFRS Accounting Standards (‘NZ
IFRS’) as issued by the External Reporting Board and IFRS
Accounting Standards (‘IFRS’) as issued by the International
Accounting Standards Board.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (‘ISAs’) and International Standards
on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities
under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial
Statements section of our report.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
We are independent of the Company in accordance with
Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and
the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants
(including International Independence Standards), and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
Other than in our capacity as auditor and an awards
sponsorship arrangement, we have no relationship with or
interests in the Company or any of its subsidiaries.
Audit materiality
We consider materiality primarily in terms of the magnitude of
misstatement in the financial statements of the Group that in our
judgement would make it probable that the economic decisions
of a reasonably knowledgeable person would be changed or
influenced (the ‘quantitative’ materiality). In addition, we also
assess whether other matters that come to our attention during
the audit would in our judgement change or influence the
decisions of such a person (the ‘qualitative’ materiality). We use
materiality both in planning the scope of our audit work and in
evaluating the results of our work.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
consolidated financial statements of the current period.
These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion
on these matters.
Key audit matterHow our audit addressed the key audit matter
Impairment testing of goodwill and other indefinite life intangible
assets for AWF, Madison Recruitment and Absolute IT
Goodwill of $31.6 million (2023: $42.6 million) and other indefinite life
intangible assets (brand names) of $12.1 million (2023: $12.1 million) are
recognised in the consolidated financial statements at 31 March 2024, as
detailed in notes B4 and B3 respectively. This also includes an impairment
of $6.5 million and $4.5 million relating to the Madison Recruitment and
the AWF cash generating units (CGU) respectively.
Goodwill and other indefinite life intangible assets are tested for
impairment annually or whenever there are indicators that these assets
may be impaired.
For the purpose of impairment testing, the goodwill and other indefinite
life intangible assets are allocated to CGUs. The recoverable amount
of each CGU is determined through a value in use calculation, which
reflects significant unobservable inputs, including forecasted financial
performance, discount rates and growth rates (including terminal growth
rate).
The AWF, Madison and Absolute IT CGUs are more sensitive to changes
in the financial performance assumptions and judgements involved in
determining their recoverable amounts. These CGUs include goodwill
and indefinite life intangibles of $6.7 million, $14.2 million and $9.8 million
respectively.
The key judgements underpinning their future cashflows include sales
and terminal growth rates, discount rates applied as well as increases in
temporary staff per day specifically for AWF.
We have included the impairment considerations of goodwill and other
indefinite life intangibles for AWF, Madison Recruitment and Absolute IT
as a key audit matter because these CGUs are more sensitive to changes
in the performance assumptions.
We have audited the value in use calculations for these cash- generating
units (CGU). Our procedures included, amongst others:
• Testing the value in use calculations for arithmetic accuracy;
• Comparing the forecast performance with the approved 2025
financial year budget;
• Assessing the historical accuracy of the Group’s previous forecasts
by comparing prior period budgets to actual performance;
• Challenging Management’s assumptions used in the forecasted
financial performance, by utilising our knowledge of the Group,
the past performance of the CGUs, and their customers;
• Performing sensitivity analysis on the forecasted financial
performance, growth rates, discount rates and terminal growth
rates to determine the extent to which any changes in these inputs
would result in impairment to AWF, Madison Recruitment and
Absolute IT CGUs;
• Involving our internal valuation specialists in assessing the discount
and terminal growth rates for reasonableness in comparison to
market data. We also referenced external market data to challenge
the growth forecasts applied for specific industries in which the
CGUs operate.
• Evaluating the sufficiency of related disclosures with regards to
the requirements of NZ IAS 36 Impairment of Assets.
To the Shareholders of Accordant Group Limited
Independent Auditor’s Report
ACCORDANT GROUP ANNUAL REPORT 202425INDEPENDENT AUDITOR’S REPORT
Other information
The directors are responsible on behalf of the Group for
the other information. The other information comprises
the information in the Annual Report that accompanies the
consolidated financial statements and the audit report.
Our opinion on the consolidated financial statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
Our responsibility is to read the other information and consider
whether it is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated. If so, we are
required to report that fact. We have nothing to report in this
regard.
Directors’ responsibilities for the consolidated
financial statements
The directors are responsible on behalf of the Group for
the preparation and fair presentation of the consolidated
financial statements in accordance with NZ IFRS and IFRS,
and for such internal control as the directors determine is
necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether
due to fraud or error.
In preparing the consolidated financial statements, the
directors are responsible on behalf of the Group for assessing
the Group’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either
intend to liquidate the Group or to cease operations, or have
no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated
financial statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with ISAs
and ISAs (NZ) will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated
financial statements.
A further description of our responsibilities for the audit of
the consolidated financial statements is located on the
External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/
auditors-responsibilities/audit-report-1
This description forms part of our auditor’s report.
Restriction on use
This report is made solely to the Company’s shareholders, as a
body. Our audit has been undertaken so that we might state to the
Company’s shareholders those matters we are required to state to
them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company’s shareholders as a body, for
our audit work, for this report, or for the opinions we have formed.
Bryce Henderson, Partner
for Deloitte Limited
Auckland, New Zealand
29 May 2024
FINANCIAL STATEMENTS26ACCORDANT GROUP ANNUAL REPORT 2024
Accordant Group Limited
Statement of comprehensive income
For the year ended 31 March 2024
GROUP
20242023
NOTE$’000$’000
Revenue from contracts with customersA2212,385227,371
Investment revenueA311465
Fair value gain on contingent considerationG11,865–
Direct costs(2,271)(2,186)
Employee benefits expenseA1,F1(120,314)(119,883)
Contractor costsA1(73,342)(86,503)
Depreciation and amortisation expenseA4,B1,B2,B3(4,947)(4,628)
Impairment of goodwillB4(11,000)–
Impairment of right of use assetsB2–(109)
Other operating expenses(9,852)(8,988)
Finance costsA4(2,791)(1,683)
Business acquisition expenses –(379)
(Loss) / Profit before income tax(10,153)3,077
Tax benefit/(expense)
A5145(1,100)
Net (Loss) / Profit after income tax(10,008)1,977
Other comprehensive income for the year––
Total comprehensive income(10,008)1,977
Earnings per share
Total basic earnings per share (cents/share)C3(29.2)5.8
Total diluted earnings per share (cents/share)C3(29.2)5.8
The notes to the Group financial statements form an integral part of these financial statements
FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202427
Accordant Group Limited
Statement of financial position
As at 31 March 2024
GROUP
20242023
NOTE$’000$’000
Assets
Non-current assets
Property, plant and equipmentB11,9462,730
Right of use assetsB26,3717,038
Intangible assets – goodwillB431,55342,553
Intangible assets – otherB315,21416,612
Total non-current assets55,08468,933
Current assets
Cash and cash equivalentsC52,0921,954
Trade and other receivablesC621,03723,992
Total current assets23,12925,946
Total assets78,21394,879
Equity and liabilities
Non-current liabilities
Deferred tax liabilitiesA52,5042,929
BorrowingsC726,50023,500
Lease liabilitiesB24,2965,374
Contingent considerationG19442,648
Total non-current liabilities34,24434,451
Current liabilities
Trade and other payablesC817,69621,399
Contract liabilitiesA2225314
Taxation payableA5541,108
ProvisionsF2686582
Lease liabilitiesB22,6732,439
Total current liabilities21,33425,842
Total liabilities55,57860,293
Net assets22,63534,586
Capital and reserves
Share capitalC130,86830,868
Treasury sharesC2(804) (804)
Group share scheme reserve658 448
Retained earnings(8,087) 4,074
Total equity22,635 34,586
For and on behalf of the Board who authorised the issue of the financial statements on 29 May 2024:
SIMON BENNETT, ChairLAURISSA COONEY, Chair, Audit & Risk Committee
The notes to the Group financial statements form an integral part of these financial statements
FINANCIAL STATEMENTS28ACCORDANT GROUP ANNUAL REPORT 2024
GROUP
Share
capital
Treasury
shares
Group share
scheme
reserve
Retained
earnings
Total
equity
NOTE$’000$’000$’000$’000$’000
Balance as at 1 April 202230,868(804)2826,34936,695
Profit for the year–––1,9771,977
Comprehensive income for the year–––––
Total comprehensive income for the year–––1,9771,977
Transactions with owners in their
capacity as owners:
Dividends paidC4–––(4,309)(4,309)
Restricted shares lapsedF1––(57)57–
Share based paymentsF1––223–223
Total transactions with owners in their
capacity as owners––166(4,252)(4,086)
Balance as at 31 March 202330,868(804)4484,07434,586
Balance as at 1 April 202330,868(804)4484,07434,586
Loss for the year–––(10,008)(10,008)
Comprehensive income for the year–––––
Total comprehensive income for the year–––(10,008)(10,008)
Transactions with owners in their
capacity as owners:
Dividends paidC4–––(2,153)(2,153)
Restricted shares lapsedF1– ––––
Share based paymentsF1– –210 –210
Total transactions with owners in their
capacity as owners––210(2,153)(1,943)
Balance as at 31 March 202430,868(804)658(8,087)22,635
The notes to the Group financial statements form an integral part of these financial statements
Accordant Group Limited
Statement of changes in equity
For the year ended 31 March 2024
FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202429
Accordant Group Limited
Statement of cashflows
For the year ended 31 March 2024
GROUP
20242023
NOTE$’000$’000
Cash flow from operating activities
Receipts from customers215,112230,322
Payments to suppliers, contractors and employees(208,981)(222,193)
Net cash (used in)/generated from operations6,1318,129
Net receipts from government grants55614
Interest paid on bank overdraft and loans(2,233)(1,277)
Interest paid on lease liabilitiesB2(305)(318)
Income taxes paid(1,334)(2,433)
Net cash provided by operating activitiesC52,3144,715
Cash flow from investing activities
Proceeds from disposal of property, plant and equipment344
Payment for property, plant and equipmentB1(233)(733)
Net cash paid on acquisition of Hobson Leavy–(5,750)
Net cash used in investing activities(230)(6,439)
Cash flow from financing activities
Dividends paid to share holders of the parentC4(2,154)(4,309)
Proceeds from borrowingsC84,0008,500
Repayment of borrowingsC8(1,000)(3,000)
Payment of principal on lease liabilitiesB2(2,792)(2,485)
Net cash used in financing activities(1,946)(1,294)
Net (decrease)/increase in cash and cash equivalents held during the year138(3,018)
Cash and cash equivalents as at the beginning of the year1,9544,972
Cash and cash equivalents as at the end of the yearC52,0921,954
The notes to the Group financial statements form an integral part of these financial statements
NOTES TO THE GROUP FINANCIAL STATEMENTS30ACCORDANT GROUP ANNUAL REPORT 2024
IN THIS SECTION
The notes to the financial statements include information
that is considered relevant and material to assist the reader
in understanding changes in Accordant Group Limited
and its controlled entities (“the Group”) financial position
or performance.
• the amount is significant because of its size and nature;
• it is important for understanding the results of the Company;
• it helps explain changes in the Company’s business; or
• it relates to an aspect of the Company’s operations that is
important to future performance.
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 annual report. The principal
services of the Group are the supply of temporary staff,
contractor resource and recruitment of permanent staff.
BASIS OF PREPARATION
These 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 New Zealand Generally Accepted
Accounting Practices in New Zealand (‘GAAP’). For the
purposes of complying
• with NZ GAAP the Group is a for profit entity. They comply
with New Zealand equivalents to IFRS Accounting Standards
(‘NZ IFRS’), IFRS Accounting Standards (‘IFRS’) and other
applicable Financial Reporting Standards as appropriate for
profit-orientated entities;
• in accordance with the requirements of the Financial Market
Conduct Act 2013, the Companies Act 1993, and the NZX
listing rules;
• on the basis of historical cost, as modified by revaluations
to fair value for certain classes of assets and liabilities as
described in the accounting policies;
• on a going concern basis, which contemplates continuity of
normal business activities and the realisation of assets and
the settlement of liabilities in the ordinary course of business;
and
• in New Zealand dollars (which is the Group’s functional and
presentation currency), with values rounded to thousands
($000) unless otherwise stated.
The financial statements were authorised for issue by the
directors on 29 May 2024.
Adoption of new and revised Standards and Interpretations
New standards and amendments and interpretations to
existing standards that came into effect during the current
accounting period
All mandatory new standards and amendments and
interpretations to existing standards that came into effect
during the current accounting period have been adopted in the
current year. None of the new and amendments to standards
and interpretations have had a material impact on the Group.
New standards and amendments and interpretations to
existing standards that are not yet effective for the current
accounting period
The Group has not early adopted any new standards,
amendments and interpretations that have been issued but are
not yet effective.
There are a number of new standards and amendments to
standards and interpretations that are not yet effective for
the year beginning 1 April 2024. 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.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202431
OTHER ACCOUNTING POLICIES
Accounting policies that are relevant to an understanding of
the financial statements (other than those provided throughout
the notes to the financial statements) are set out below:
Fair value measurement
For financial reporting purposes, ‘fair value’ is the price that
would be received to sell an asset, or paid to transfer a liability,
in an orderly transaction between market participants (under
current market conditions) at the measurement date, regardless
of whether that price is directly observable or estimated using
another valuation technique.
When estimating the fair value of an asset or liability, the
entity uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs. Inputs to
valuation techniques used to measure fair value are categorised
into three levels according to the extent to which the inputs
are observable:
• Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity can
access at the measurement date.
• Level 2 inputs are inputs other than quoted prices included
within Level 1 that are observable for the asset or liability,
either directly or indirectly.
• Level 3 inputs are unobservable inputs for the asset
or liability.
Goods and services tax (GST)
All revenue and expense transactions and cashflows are
recorded exclusive of GST and other value added taxes. Assets
and liabilities are similarly stated exclusive of GST, with the
exception of receivables and payables, which are stated with
GST included.
Impairment of tangible and intangible assets
excluding goodwill
At the end of each reporting period, the Group reviews the
carrying amounts of its tangible (notes B1 and B2) and intangible
assets (note B3) to determine whether there is any indication
that those assets have suffered an impairment loss. If any
such indication exists (and at least annually for indefinite
life intangible assets) the recoverable amount of the asset is
estimated in order to determine the extent of the impairment
loss (if any).
The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. In assessing value in use,
the estimated cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific
to the asset for which the estimates of future cash flows have
not been adjusted.
If the recoverable amount of an asset is estimated to be less
than its carrying amount, the carrying amount of the asset
is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying
amount of the asset is increased to the revised estimate of
its recoverable amount, but the increased carrying amount
does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for
the asset in prior periods. A reversal of an impairment loss is
recognised immediately in profit or loss.
Financial instruments
Financial assets and financial liabilities are recognised on
the Group’s Statement of Financial Position when the Group
becomes a party to the contractual provisions of the instrument.
All of the financial assets of the Group, which include trade and
other receivables (note C6), are classified as financial assets at
amortised cost.
The Group’s trade and other payables (note C8) and deferred
consideration (note G1) arising from business combinations are
classified as financial liabilities at amortised cost.
The Group’s contingent consideration amounts arising from
business combinations (note G1) are classified as a financial
liability at fair value through profit or loss. Contingent
consideration is categorised within Level 3 of the fair value
hierarchy.
Financial liabilities and equity instruments issued by the Group
are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial
liability and an equity instrument. An equity instrument is any
contract that evidences a residual interest in the assets of the
Group after deducting all of its liabilities.
Equity instruments
Ordinary share capital (note C1) is classified as equity when
there is no obligation to transfer cash or other assets.
Incremental costs directly attributable to the issue of new
shares are shown in equity as a deduction, net of tax, from
the proceeds.
Costs which are not directly attributable to the issue of new
shares are shown as an expense and included in other operating
expenses expenses in the Statement of Comprehensive Income
Government grants
Government grants are not recognised until there is reasonable
assurance that the Group will comply with the conditions
attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on
a systematic basis over the periods in which the Group
recognises as expenses the related costs for which the grants
are intended to compensate.
Government grants that are receivable as compensation for
expenses or losses already incurred or for the purpose of giving
immediate financial support to the Group with no future related
costs are recognised in profit or loss in the period in which they
become receivable.
NOTES TO THE GROUP FINANCIAL STATEMENTS32ACCORDANT GROUP ANNUAL REPORT 2024
KEY JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY
In the process of applying the Group’s accounting policies
and the application of accounting standards, Management
are required to make a number of judgements, estimates
and assumptions about the carrying amounts of assets and
liabilities that are not readily available from other sources. These
estimates and associated assumptions are based on historical
experience and various other matters that are considered to be
appropriate under the circumstances. Actual results may differ
from these estimates.
Judgements and sources of estimation uncertainty that are
considered material to understand the performance of the
Group are found in the following notes:
Note – A2
Expectation of refund liabilities and rebates to customers.
Note – C6
Expected credit losses from trade and other receivables
Note – B2
Estimate of the future right of use assets and lease liabilities.
Note – B3
Estimating the remaining useful lives of identifiable customer
relationships and restraint of trade assets and testing the
carrying value of brand assets.
Note – B4
Impairment testing of the carrying value of goodwill and
indefinite life intangible assets.
Note – F2
Rehabilitation under the ACC Partnership programme.
Note – G1
Estimation of the earn-out contingent consideration in a
business combination.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202433
This section explains the financial performance of the Group,
providing additional information about individual items in the
Statement of Comprehensive Income, including:
(a) accounting policies, judgements and estimates that are
relevant for understanding items recognised in revenue.
(b) analysis of the Group’s performance for the year by
reference to key areas including: performance by segment,
revenue, expenses and taxation.
A1 SEGMENT PERFORMANCE
The Chief Operating decision maker is the Group Chief Executive.
The Group has two defined Reporting Segments:
• Allied Work Force (‘AWF’) and The Work Collective –
Contingent Blue Collar Labour Hire associated with
infrastructure, logistics, manufacturing, technical and
construction. TWC provides opportunities for those who
face barriers to employment.
• Madison Recruitment, Absolute IT, JacksonStone & Partners,
and Hobson Leavy – White Collar Contingent temporary
employees and contractors together with Permanent
Recruitment and Executive Search associated with
professional and managerial positions including technology
and digital business sectors.
Within the White-Collar Reporting Segment are four (4)
operating segments:
• Madison Recruitment
• Absolute IT
• JacksonStone & Partners
• Hobson Leavy
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 four brands.
The Group’s reportable segments have been identified as
follows:
• AWF and TWC
• Madison, Absolute IT, JacksonStone & Partners
and Hobson Leavy
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 and The Work Collective
The 'Blue Collar' 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. The Work Collective leverages off
AWF’s infrastructure and network.
Madison, Absolute IT, JacksonStone & Partners
and Hobson Leavy
The ‘White Collar’ segment operates branches under the
brand names Madison Recruitment, Madison Force, Absolute
IT, JacksonStone & Partners and Hobson Leavy in major cities
throughout New Zealand. These brands derive their revenues
from staffing services across temporary, contract, permanent
and executive search, principally in the commerce sector.
All revenues from external customers, and non current assets
other than financial instruments, deferred tax assets, post
employment benefit assets, and rights arising under insurance
contracts are attributed to the Group’s country of domicile.
A. Financial Performance
IN THIS SECTION
NOTES TO THE GROUP FINANCIAL STATEMENTS34ACCORDANT GROUP ANNUAL REPORT 2024
Segment revenueSegment profit
2024202320242023
SEGMENT REVENUE AND RESULTS$’000$’000$’000$’000
Continuing operations
AWF and The Work Collective82,30475,825(3,543)321
Madison, Absolute IT, JacksonStone & Partners
and Hobson Leavy130,081151,541(1,207)7,726
Total for continuing operations212,385227,366(4,750)8,047
Other income11465
Central administration costs and directors fees5(2,726)(2,973)
Finance costs(2,791)(1,683)
Business aquisition expenses–(379)
Total212,385227,371(10,153)3,077
Income tax expense145(1,100)
Total for the year212,385227,371(10,008)1,977
Revenue reported above represents revenue generated from external customers. Inter-segment sales in the year were $56,059
(2023: $107,002) and have been eliminated from the above table. Inter-segment sales were eliminated from the originating
segment. No one customer accounts for more than 10% of the Group’s revenue (2023: No one customer accounts for more than
10% of the Group’s revenue).
The accounting policies of the reportable segments are the same as the Group’s accounting policies described in this report.
Segment profit represents the profit earned by each segment without allocation of central administration costs and directors’
fees, investment revenue, finance costs, and income tax expense. This is the same measure reported to the chief operating
decision maker for the purpose of resource allocation and assessment of segment performance.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202435
20242023
SEGMENT ASSETS$’000$’000
Continuing operations
AWF and The Work Collective21,52224,831
Madison, Absolute IT, JacksonStone & Partners and Hobson Leavy54,82468,419
Total segment assets76,34693,250
Unallocated assets1,8671,629
Total assets78,21394,879
For the purposes of monitoring segment performance and allocating resources between segments, the chief operating decision
maker monitors the tangible, intangible and financial assets attributable to each segment. All assets are allocated to reportable
segments other than cash, cash equivalents and tax assets of the parent.
20242023
SEGMENT LIABILITIES$’000$’000
Continuing operations
AWF and The Work Collective9,6438,192
Madison, Absolute IT, JacksonStone & Partners and Hobson Leavy15,19821,780
Total segment liabilities24,84129,972
Unallocated liabilities30,73730,321
Total liabilities55,57860,293
For the purposes of monitoring segment performance and allocating resources between segments, the chief operating decision
maker monitors the liabilities attributable to each segment. All liabilities are allocated to reportable segments, other than bank loans
and tax liabilities of the parent.
NOTES TO THE GROUP FINANCIAL STATEMENTS36ACCORDANT GROUP ANNUAL REPORT 2024
OTHER SEGMENT INFORMATION
Depreciation and amortisationImpairment
2024202320242023
NOTE$’000$‘000$‘000$‘000
AWF and The Work Collective1,3761,5054,500109
Madison, Absolute IT, JacksonStone &
Partners and Hobson Leavy3,5673,1236,500–
Unallocated4–––
Total4,9474,62811,000109
Non-current assetsNet additions to non-current assets
2024202320242023
$’000$’000$’000$’000
AWF and The Work Collective10,94515,3851,5331,361
Madison, Absolute IT, JacksonStone &
Partners and Hobson Leavy44,13053,548650638
Business combinationsG1–––11,081
Unallocated9–13–
Total55,08468,9332,19613,080
Employee benefitsContractor costs
2024202320242023
$’000$’000$’000$’000
AWF and The Work Collective73,31667,802475197
Madison, Absolute IT, JacksonStone &
Partners and Hobson Leavy44,21949,30872,86786,306
Unallocated2,7792,773––
Total120,314119,88373,34286,503
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202437
A2 REVENUE FROM CONTRACTS WITH CUSTOMERS
Accounting policy
Revenue recognition from contracts with customers
Revenue is measured at the fair value of the consideration
received or receivable. Revenue is recognised once value
has been received by the customer, when the performance
obligations have been satisfied and control has transferred.
This is typically on successful placement of a candidate.
The transaction price is allocated to performance obligations
based on their relative standalone selling prices.
Revenue earned on temporary placement – over time
Revenue from temporary placements, represents amounts billed
from the supply of semi-skilled and skilled temporary staff,
including the wage cost of these staff and is recognised when
the service has been provided. Revenue is recognised over time
as services are provided. Performance completed to date is
based on the number of hours worked.
The factors considered by Management on a contract by
contract basis when concluding the Group is acting as principal
rather than agent are as follows:
• Whether the customer has a direct relationship with
the Group;
• Whether the Group has the primary responsibility for
providing the services to the client, and engages and
contracts directly with the temporary worker or other
recruitment companies; and
• Whether the Group has latitude in establishing the rates
directly or indirectly with all parties.
Revenue earned on permanent placement – point in time
Revenue from permanent placements, represents amounts
billed from the placement of permanent candidates. Revenue
is typically based on a percentage of the candidate’s
remuneration package, this income being recognised at the
date an offer is accepted by a candidate and where a start date
has been determined.
In general, where a candidate fails to remain in the position for
greater than twelve weeks a guarantee is provided to replace
the candidate.
Revenue earned on a retained basis – point in time
Where the Group is engaged on a retainer basis, revenue
recognised is typically based on a percentage of candidate’s
remuneration package, this income being recognised on the
completion of defined stages of work. The defined stages
are: on confirmation of vacancy and after job briefing; on
presentation of shortlist; and candidate placement.
Revenue earned as other services are provided – point in time
Where the Group is engaged to provide payroll related services
to manage the administration of contractors sourced by its
customers directly, revenue is recognised when the underlying
performance obligation is satisfied – upon the provision of
services, charged at hourly or daily rates.
Where the Group is engaged to provide contractors, they are
covered by the Group’s indemnity insurance cover. A fee for this
indemnity insurance cover is recognised when the underlying
performance obligation is satisfied – upon the provision of
cover, charged at hourly rates.
Where the Group is engaged to provide other employee related
services, such as psychometric assessments, advertising and
candidate background checks, revenue is recognised when
the underlying performance obligation is satisfied – upon the
provision of services, charged at agreed rates.
Variable consideration
The Group pays customer rebates (for revenue from temporary
and permanent placement), provides credit notes and
warranties over the contract period for certain recruitment
services (for revenue on a retained basis). Revenue is
constrained to the extent that recognition would result in
a significant reversal of revenue. When the uncertainty is
resolved, the consideration is recognised.
Significant financing component
Payment is typically due within 30 – 60 days from the invoicing
of a contract. There is no significant financing component in any
of the Group’s contracts with customers.
NOTES TO THE GROUP FINANCIAL STATEMENTS38ACCORDANT GROUP ANNUAL REPORT 2024
20242023
REVENUE FROM CONTRACTS WITH CUSTOMERS$’000$’000
Revenue earned on temporary placements
AWF and The Work Collective80,52673,285
Madison, Absolute IT, JacksonStone & Partners and Hobson Leavy96,320115,441
Total revenue earned on temporary placements176,846188,726
Revenue earned on permanent placements
AWF and The Work Collective9851,504
Madison, Absolute IT, JacksonStone & Partners and Hobson Leavy9,76913,545
Total revenue earned on permanent placements10,75415,049
Revenue earned on a retained basis
AWF and The Work Collective––
Madison, Absolute IT, JacksonStone & Partners and Hobson Leavy6,3963,279
Total revenue earned on a retained basis6,3963,279
Other service revenue
AWF and The Work Collective7931,036
Madison, Absolute IT, JacksonStone & Partners and Hobson Leavy17,59619,281
Total other service revenue18,38920,317
Total revenue212,385227,371
KEY JUDGEMENTS AND ESTIMATES – EXPECTATION OF REFUND LIABILITIES AND REBATES TO CUSTOMERS.
Refund guarantees
For revenue on a retained basis, Management estimates the
expected refund guarantees to customers based on historical
experience of candidates leaving within the guarantee period.
The estimate is updated for key reporting periods. Refund
guarantees relate to the placement of individual candidates.
Rebates
Management estimates the expected rebates to customers
on inception of the contract based on past precedent and
future expected sales. The estimate is updated for key
reporting periods. Rebates relate to the placement of a
portfolio of candidates and the discount is applied to all
qualifying placements.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202439
20242023
REVENUE FROM CONTRACTS WITH CUSTOMERS BY CLIENT INDUSTRY CATEGORY$’000$’000
AWF and The Work Collective revenue from contracts with customers
– Construction & civil30,55229,287
– Engineering & technical16,88913,713
– Manufacturing & logistics34,86332,825
Total AWF and The Work Collective revenue from contracts with customers82,30475,825
Madison, Absolute IT, JacksonStone & Partners and Hobson Leavy revenue
from contracts with customers
– Administration & other services333828
– Arts & recreation services1,4531,891
– Construction and trades2,2862,138
– Education and training4,6786,588
– Financial and insurance services13,90516,627
– Government, defence and public safety66,82776,266
– Healthcare and social assistance14,11414,643
– Information technology4,2866,504
– Logistics (transport, postal & warehousing)2,4593,314
– Manufacturing1,2601,694
– Media & telecommunications148538
– Primary (agriculture, forestry, fishing, mining)4,7564,930
– Professional, scientific and technical services5,8224,706
– Property/rental and hiring services725670
– Retail trade & hospitality1,9393,065
– Utilities (electricity, gas, water, waste)3,9643,547
– Wholesale trade1,1263,597
Total Madison, Absolute IT, JacksonStone & Partners and Hobson Leavy revenue
from contracts with customers130,081151,546
Total revenue212,385227,371
NOTES TO THE GROUP FINANCIAL STATEMENTS40ACCORDANT GROUP ANNUAL REPORT 2024
20242023
CONTRACT LIABILITIES$’000$’000
Rebate liabilities209176
Guarantee refund liabilities16122
Revenue in advance–16
Total contract liabilities225314
Classified as:
Current 225314
Non-current––
Total contract liabilities225314
CONTRACT LIABILITIES
Contract guarantees
For revenue on a retained basis, the Group’s standard contract
terms for under permanent placement revenue contracts,
includes a guarantee that the candidate placed will remain in the
role for more than 12 weeks. If the candidate does not remain
in the role for more than 12 weeks, the Group will endeavour
to replace the candidate with another individual at no further
cost to the customer. If the Group is unable to replace the
candidate then the customer is entitled to a credit against the
customer’s account.
Upon placement, a refund liability is recognised with a
corresponding adjustment to revenue. This refund liability is
measured using a rate derived utilising the Group’s historical
experience of candidates who have left before 12 weeks. This
historical experience rate is measured using the portfolio
approach permitted by NZ IFRS 15 Revenue from Contract
with Customers. This estimate is updated regularly at each
reporting period.
Contract rebates
For revenue from temporary and permanent placements, under
the Group’s contract terms with certain customers, a rebate is
payable/applied to customers based on agreed percentages
of amounts billed over a specified period. These agreed
percentages can either be a single fixed rate or incremental
based on thresholds.
At the beginning of the specified period, a rebate liability is
recognised with a corresponding adjustment to revenue.
This rebate liability is measured using a rate derived utilising
the Group’s expectation of the amounts to be billed to the
customer over the specified period. This expectation is based
on historical experience with the customer adjusted to reflect
forecast estimates of the placements required by the customer
over the specified period.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202441
KEY JUDGEMENTS AND ESTIMATES – GUARANTEE AND REBATE LIABILITIES
Guarantee refund liabilities
Management has reviewed and assessed the historical
experience rate for refund guarantees that represent the
best estimate of expected candidates leaving within the
guarantee period.
Rebate liabilities
Management has reviewed and assessed the past precedent
and future expected sales for individual customers and the
contract liabilities for rebates that represent the best estimate
of expected rebates to customers.
A3 INVESTMENT REVENUE
Accounting Policy
Dividend and interest revenue is presented as investment
revenue in the statement of comprehensive income.
Dividend revenue
Dividend revenue from investments is recognised when the
shareholder’s right to receive payment has been established.
Interest revenue
Interest revenue is accrued on a time basis using the effective
interest method.
20242023
INVESTMENT REVENUE$’000$’000
Interest received11465
Total investment revenue11465
NOTES TO THE GROUP FINANCIAL STATEMENTS42ACCORDANT GROUP ANNUAL REPORT 2024
A4 EXPENSES
20242023
EXPECTED CREDIT LOSS$’000$’000
Impairment losses recognised22(35)
Impairment losses recovered(2)1
Changes in the expected credit loss provision100(247)
Total expected credit losses120(281)
20242023
DEPRECIATION AND AMORTISATION EXPENSENOTE$’000$’000
Depreciation of property, plant and equipmentB19081,046
Depreciation of right of use assetsB22,6412,443
Amortisation of intangible assetsB41,3981,139
Total depreciation and amortisation expense4,9474,628
20242023
FINANCE COSTS$’000$’000
Financial liabilities measured at amortised cost
Interest on bank overdrafts and loans2,3471,343
2,3471,343
Financial liabilities measured at fair value through profit or loss
Interest on contingent consideration13922
13922
Lease liabilities
Interest on lease liabilities305318
305318
Total finance costs2,7911,683
20242023
AUDITOR’S REMUNERATION TO DELOITTE FOR:$’000$’000
Audit of the financial statements
Audit of the financial statements312334
Total auditor’s remuneration to Deloitte312334
The Group’s Audit and Risk Committee monitor the independence of Deloitte Limited and ensure Audit Partner rotation occurs
after 5 years. These financial statements are the Deloitte Audit Partner’s fifth year.
The Group (via Hobson Leavy) has an awards sponsorship arrangement with Deloitte Limited. The total value of this
arrangement is $20,000.
OTHER ITEMS
Political donations
There have been no donations to any political party during the financial year (2023: $Nil).
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202443
A5 TAXATION
Accounting Policy – current tax
Income tax expense represents the sum of the tax currently
payable and deferred tax.
Taxable profit differs from profit before tax reported in the
income statement as it excludes items of income and expense
that are taxable or deductible in other years and also excludes
items that will never be taxable or deductible.
Current and deferred tax are recognised as an expense or
income in profit or loss, except when they relate to items
recognised in other comprehensive income or directly in
equity, in which case the tax is also recognised in other
comprehensive income or directly in equity, or where they arise
from the initial accounting for a business combination. In the
case of a business combination, the tax effect is taken into
account in calculating goodwill or in determining the excess
of the acquirer’s interest in the net fair value of the acquiree’s
identifiable assets, liabilities and contingent liabilities over the
cost of the business combination.
Income tax expense is the income assessed on taxable profit
for the year.
Current tax liabilities are calculated using tax rates that have
been enacted at balance date, being 28% (2023: 28%) for
New Zealand.
20242023
INCOME TAX EXPENSE$’000$’000
Current tax
In respect of current year3481,071
In respect of prior year(68)187
2801,258
Deferred tax
In respect of current year(471)7
In respect of prior year46(165)
(425)(158)
Total tax expense(145)1,100
Reconciliation to profit before tax
(Loss) / Profit before income tax(10,153)3,077
Income tax at 28%(2,843)862
Tax effect of expenses that are not deductible in determining taxable profit2,698238
Income tax expense / (benefit)(145)1,100
Effective tax rate for the year(1.4%)35.7%
20242023
CURRENT TAX ASSETS AND LIABILITIES$’000$’000
Current tax liabilities
Income tax (receivable)/payable541,070
Business combinations–38
Total current tax liabilities541,108
NOTES TO THE GROUP FINANCIAL STATEMENTS44ACCORDANT GROUP ANNUAL REPORT 2024
Accounting policy – deferred tax
Deferred tax is recognised on differences between the carrying
amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognised for
all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits
will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from goodwill or from the initial
recognition (other than in a business combination) of other
assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries, except
where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will
not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the assets to be recovered.
Deferred tax is calculated at the tax rates that are expected
to apply in the period when the liability is settled or the
asset realised based on tax rates that have been enacted or
substantively enacted by the end of the reporting period. The
measurement of deferred tax liabilities and assets reflects the
tax consequences that would follow from the manner in which
the Group expects, at the reporting date, to recover or settle the
carrying amounts of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes
levied by the same taxation authority and the Group intends to
settle its current tax assets and liabilities on a net basis.
Lease
liabilities
Right of use
assets
Employee
benefits
Other
provisions
Intangible
assetsTotal
$’000$’000$’000$’000$’000$’000
As at 1 April 20222,168(1,984)1,145517(3,497)(1,651)
Prior period adjustment ––166(1)–165
Business combination––––(1,436)(1,436)
Charge (credit to profit or loss for the year)514(237)(71)282(7)
As at 31 March 20232,173(1,970)1,074445(4,651)(2,929)
As at 1 April 20232,173(1,970)1,074445(4,651)(2,929)
Prior period adjustment––(81)35–(46)
Charge (credit to profit or loss for the year)(270)2286458391471
As at 31 March 20241,903(1,742)1,057538(4,260)(2,504)
20242023
IMPUTATION BALANCES$’000$’000
Imputation credits available for subsequent reporting periods at 28%12,13513,474
The above amounts represent the balance of the imputation account as at the end of the reporting period at 28%, adjusted for,
imputation credits that will arise from the payment of the amount of the provision for income tax; and imputation debits that have
arisen from the payment of dividends recognised as a liability at the reporting date. The consolidated amounts include imputation
credits that would be available to the parent entity if subsidiaries paid dividends. The imputed portions of the final dividends
recommended after reporting date will be imputed out of existing imputation credits or out of imputation credits arising from the
payment of income tax in the next reporting period.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202445
The following diminishing value rates are used for the depreciation of property, plant and equipment
• Motor vehicles 25 to 36%
• Fixtures and equipment 10 to 60%
• Leasehold improvements 4 to 14%
Motor
Vehicles
Fixtures and
equipment
Leasehold
improvementsTotal
PROPERTY, PLANT AND EQUIPMENTNOTE$’000$’000$’000$’000
Cost1,8054,2522,0198,076
Less accumulated depreciation(697)(3,215)(1,257)(5,169)
Net book value at 1 April 20221,1081,0377622,907
Additions125375233733
Business combinations–64101165
Disposals – cost(97)(33)(44)(174)
Depreciation expenseA4(338)(379)(329)(1,046)
Eliminations on disposal – depreciation752248145
Net book value at 31 March 20238731,0867712,730
Additions–132102234
Disposals – cost–(80)(189)(269)
Depreciation expenseA4(262)(365)(281)(908)
Eliminations on disposal – depreciation–6792159
Net book value at 31 March 20246118404951,946
Cost1,8344,9112,2559,000
Less accumulated depreciation(1,224)(4,070)(1,760)(7,054)
Net book value at 31 March 20246108414951,946
B. Assets used to generate income
This section shows the assets the Group uses to generate
operating income. In this section of the notes there is
information about:
In this section there is information about:
(a) property, plant and equipment
(b) intangible assets
(c) goodwill
B1 PROPERTY, PLANT AND EQUIPMENT
Accounting policy
Fixtures and equipment, motor vehicles and leasehold
improvements are stated at cost less accumulated depreciation
and any accumulated impairment losses.
Depreciation is charged so as to write off the cost of assets,
over their estimated useful lives using the diminishing
value method.
The gain or loss arising on the disposal or retirement of an
item of property, plant and equipment is determined as the
difference between the sales proceeds and the carrying
amount of the asset and is recognised in the Statement of
Comprehensive Income.
IN THIS SECTION
NOTES TO THE GROUP FINANCIAL STATEMENTS46ACCORDANT GROUP ANNUAL REPORT 2024
B2 RIGHT OF USE ASSETS AND LEASES LIABILITIES
Accounting policy
The Group leases various properties (including offices), motor
vehicles and computer equipment. Property lease contracts
are typically made for fixed periods of 3 to 9 years but may
have extension options as described below. Motor vehicle and
computer equipment leases are typically made for fixed periods
of 1 to 5 years without extension options.
Lease terms are negotiated on an individual basis and contain
a wide range of different terms and conditions. The lease
agreements do not impose any covenants, but leased assets
may not be used as security for borrowing purposes.
Leases are recognised as a right-of-use (‘ROU’) asset and a
lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, and
subsequently at cost less any accumulated depreciation and
impairment losses, and adjusted for certain remeasurements of
the lease liability.
Costs included in the measurement of the right-of-use asset
comprise the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement
date; less any lease incentives received; and
• any initial direct costs incurred by the lessee.
Depreciation is charged so as to write off the cost of assets,
over the lease term using the straight-line method or where
shorter than the useful life of the right of use asset.
The lease liability is initially measured at the present value of
the future lease payments over the lease term that are not paid
at the commencement date, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined,
the lessee’s incremental borrowing rate, being the rate that the
lessee would have to pay to borrow over a similar term, and
with a similar security, the funds necessary to obtain an asset
of a similar value to the right-of-use asset in a similar economic
environment with similar terms and conditions.
Generally, the Group uses the lessee’s incremental borrowing
rate as the discount rate.
Lease payments included in the measurement of the lease
liability comprise the following:
• the exercise price under a purchase option that the Group is
reasonably certain to exercise that option; and
• lease payments in an optional renewal period if the Group is
reasonably certain to exercise an extension option.
There are no leases with variable lease payments which depend
on an index or rate as at the commencement date.
The lease liability is measured at amortised cost using the
effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an
index or rate, if there is a change in the Group’s estimate of
the amount expected to be payable under a residual value
guarantee, if the Group changes its assessment of whether it
will exercise a purchase, extension or termination option or if
there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount
of the right-of-use asset, or is recorded in profit or loss if the
carrying amount of the right-of-use asset has been reduced
to zero.
The Group has elected not to recognise right-of-use assets and
lease liabilities for short-term leases that have lease terms of
12 months or less and leases of low value assets.
The Group recognises the lease payments associated with
these leases within operating expenses on a straight line basis
over their lease terms.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202447
KEY JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY – ESTIMATE OF THE FUTURE RIGHT OF USE ASSETS
AND LEASE LIABILITIES
Extension and termination options
Extension and termination options are included in a number
of leases across the Group. These terms are used to maximise
operational flexibility in terms of managing contracts. The
majority of extension and termination options held are
exercisable only by the Group and not by the respective lessor.
Extension and termination options
Critical judgements in determining the lease term
In determining the lease term, management considers
all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a
termination option.
Extension options (or periods after termination options) are only
included in the lease term if the lease is reasonably certain to be
extended (or not terminated).
The assessment is reviewed if a significant event or a significant
change in circumstances occurs which affects this assessment
and that is within the control of the lessee.
The following factors are normally the most relevant:
• If there are significant penalties to terminate (or not extend),
the Group is typically reasonably certain to extend (or
not terminate).
• If any leasehold improvements are expected to have a
significant remaining value, the Group is typically reasonably
certain to extend (or not terminate).
• Otherwise, the Group considers other factors including
historical lease durations and the costs and business
disruption required to replace the leased asset.
Incremental borrowing rates
The lease payments are discounted using the interest rate
implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases in the Group, the lessee’s
incremental borrowing rate is used, being the rate that the
individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use
asset in a similar economic environment with similar terms,
security and conditions.
Critical judgements in determining the incremental
borrowing rate
To determine the incremental borrowing rate, the Group:
• where possible, uses recent third-party financing (currently,
the Group’s sole term facility provider, ASB Bank Limited)
received by the individual lessee as a starting point, adjusted
to reflect changes in financing conditions since third party
financing was received;
• uses a build-up approach that starts with a risk-free
interest rate adjusted for credit risk for leases held by
Group subsidiaries, which does not have recent third party
financing; and
• makes adjustments specific to the lease, e.g. term, location,
and security.
PropertyMotor vehicles
Computer
EquipmentTotal
RIGHT OF USE ASSETSNOTE$’000$’000$’000$’000
Cost13,3171342313,474
Less accumulated depreciation(6,308)(124)(22)(6,454)
Net book value at 1 April 20227,0091017,020
Additions/lease liability remeasurements2,19024432,257
Business combinations1,167––1,167
Disposals – cost(1,387)(39)(23)(1,449)
Depreciation expenseA4(2,419)(17)(7)(2,443)
Eliminations on disposal – depreciation4253823486
Net book value at 31 March 20236,98516377,038
Additions/lease liability remeasurements2,203252–2,455
Disposals – cost(1,764)––(1,764)
Depreciation expenseA4(2,509)(123)(9)(2,641)
Eliminations on disposal – depreciation1,283––1,283
Net book value at 31 March 20246,198145286,371
Cost15,7232764216,041
Less accumulated depreciation(9,525)(131)(14)(9,670)
Net book value at 31 March 20246,198145286,371
NOTES TO THE GROUP FINANCIAL STATEMENTS48ACCORDANT GROUP ANNUAL REPORT 2024
20242023
LEASE LIABILITIES$’000$’000
Property6,7957,760
Motor vehicle14416
Computer equipment3037
Total lease liabilities6,9697,813
Classified as:
Current2,6732,439
Non-current4,2965,374
Total lease liabilities6,9697,813
Maturity analysis – contractual undiscounted cashflows:
Less than 1 year2,9872,781
Later than 1 year and not later than 5 years inclusive4,2765,268
More than 5 years451964
Total undiscounted lease liabilities 31 March7,7149,013
Amounts recognised in Statement of Comprehensive Income:
Interest on lease liabilities(305)(318)
Expenses relating to short term leases(723)(578)
Impairment of right of use assets–(109)
Total amounts recognised in the Statement of Comprehensive Income(1,028)(1,005)
Cash outflows recognised in the Statement of Cashflows:
Recognised within cash flows from operating activities
Interest elements of lease payments(305)(318)
Total recognised within cash flows from operating activities(305)(318)
Recognised within cash flows from financing activities
Principal elements of lease payments(2,792)(2,485)
Total recognised within cash flows from financing activities(2,792)(2,485)
Total recognised within the Statement of cashflows(3,097)(2,803)
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202449
B3 INTANGIBLE ASSETS
Accounting policy
Intangible assets acquired in a business combination are
identified and recognised separately from goodwill where they
satisfy the definition of an intangible asset and their fair values
can be measured reliably. The cost of such intangible assets is
their fair value at the acquisition date.
Intangible assets acquired separately with finite useful lives are
carried at cost less accumulated amortisation and accumulated
impairment losses. Amortisation is recognised on a straight-line
basis over their estimated useful lives (48–72 months).
The estimated useful life and amortisation method are
reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for on a
prospective basis.
Intangible assets acquired separately with indefinite useful lives
are not amortised and are reviewed for impairment on an annual
basis and whenever there is an indication that the asset may be
impaired as per NZ IAS 36 Impairment of Assets (refer also B4).
Other intangible assets (excluding goodwill) represent the value of client relationships, brand names and restraints of trade acquired
through business combinations (where the economic value can reliably be assessed) and computer software.
Customer
Relationships
Brand
Name
Restraint
of TradeTotal
NOTE$’000$’000$’000$’000
Cost15,75010,4742,71028,934
Less accumulated depreciation(14,240)–(2,207)(16,447)
Net book value at 1 April 20221,51010,47450312,487
Business combinations1,0721,6072,5855,264
Amortisation expenseA4(704)–(435)(1,139)
Net book value at 31 March 20231,87812,0812,65316,612
Amortisation expenseA4(576)–(822)(1,398)
Net book value at 31 March 20241,30212,0811,83115,214
Cost16,82312,0815,29534,199
Less accumulated depreciation(15,521)–(3,464)(18,985)
Net book value at 31 March 20241,30212,0811,83115,214
The amortisation expense has been included in the line item
“depreciation and amortisation expense” in the Statement of
Comprehensive Income.
Brand names of:
• $7.465 million identified and recognised from the Madison
acquisition are allocated to the Madison Group cash
generating unit.
• $1.980 million identified and recognised from the Absolute IT
acquisition are allocated to the Absolute IT cash generating
unit.
• $1.029 million identified and recognised from the
JacksonStone & Partners acquisition are allocated to the
JacksonStone & Partners cash generating unit.
• $1.607 million identified and recognised from the Hobson
Leavy acquisition are allocated to the Hobson Leavy cash
generating unit.
KEY JUDGEMENTS AND ESTIMATES – ESTIMATING THE
REMAINING USEFUL LIVES OF IDENTIFIABLE CUSTOMER
RELATIONSHIPS AND RESTRAINT OF TRADE ASSETS AND
TESTING THE CARRYING VALUE OF BRAND ASSETS
Brand assets are indefinite life non-financial assets. Determining
whether brand assets are impaired requires an estimation of the
value in use of the cash generating unit to which brand relates
to. The impairment testing of brand is undertaken in conjunction
with the impairment testing of goodwill related to the cash
generating unit (refer to note B4 for further information).
The impairment assessment of customer relationships and
restraint of trade assets requires a judgement and estimation of
the expected remaining useful life of these assets.
NOTES TO THE GROUP FINANCIAL STATEMENTS50ACCORDANT GROUP ANNUAL REPORT 2024
B4 GOODWILL
Accounting policy
Goodwill arising on the acquisition of a subsidiary is recognised
as an asset at the date that control is acquired (the acquisition
date). Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non-controlling
interest in the acquiree and the fair value of the acquirer’s
previously held equity interest (if any) in the acquiree over the
fair value of the identified net assets recognised.
Goodwill is not amortised, but is reviewed for impairment at
least annually. For the purpose of impairment testing, goodwill is
allocated to each of the Group’s cash generating units (‘CGUs’)
expected to benefit from the synergies of the combination.
Cash generating units to which goodwill and indefinite life
intangible assets have been allocated are tested for impairment
annually, or more frequently when there is an indication that the
unit may be impaired. The recoverable amount is the higher of
fair value less cost to sell and the value in use. If the recoverable
amount of the cash generating unit is less than the carrying
amount of the unit, the impairment loss is allocated first to
reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rata on the basis of
the carrying amount of each asset in the unit. Any impairment
loss on goodwill is recognised immediately in profit or loss and
is not subsequently reversed.
20242023
NOTE$’000$’000
As at 1 April42,55338,068
Business combinations – Hobson Leavy–4,485
Impairment Madison Recruitment(6,500)–
Impairment AWF(4,500)–
As at 31 March31,55342,553
Allocation to cash generating units
• AWF6,71211,212
• Madison Recruitment6,72313,223
• Absolute IT7,8367,836
• JacksonStone & Partners 5,7975,797
• Hobson Leavy4,4854,485
Total goodwill31,55342,553
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202451
Annual test for impairment
The Group tests goodwill and other indefinite life intangible
assets annually for impairment or more frequently if there are
indications that goodwill might be impaired.
The recoverable amount of each cash generating unit is
determined from value in use calculations which use a
discounted cash flow analysis. The key assumptions for the
value in use calculations are those regarding the discount rates,
growth rates and forecast financial performance.
Management estimates discount rates using rates that reflect
current market assumptions of the time value of money and
risk specific to the cash generating units. The growth rates are
based on management’s best estimate. Forecast revenues,
direct and indirect costs, are based on historical experience/
past practices and expectation of future changes in the markets
the Group operates and services.
Impairment testing of goodwill and other intangible assets is
an area where estimates and judgements have a significant
risk of causing a material adjustment to the carrying amount
of the Group’s goodwill and other indefinite life intangible
asset balances.
When there is an impairment, i.e., the recoverable amount of
the cash generating unit is less than the carrying amount of the
unit, the impairment loss is allocated first to reduce the carrying
value amount of any goodwill allocated to the cash generating
unit and thereafter, pro rata against the carrying value of other
assets (including intangible assets and net assets).
The value in use calculation uses post tax cash flow projections
over a 5-year period based on the budgeted financial year to
2025 and thereafter financial forecasts prepared by management
and approved by the Board. Cash flows beyond the 5-year period
are extrapolated using a terminal growth rate of 2.5%.
New Zealand’s economic environment and labour market has
been and continues to be inconsistent and volatile. Impacted
by higher interest rates, high cost of living, increasing business
costs, two consecutive quarters of negative GDP growth, a fall
in hiring demand and a coalition government determined to
tackle Government spending, all contributing to a labour market
contraction.
In determining the value in use for each CGU (excluding Hobson
Leavy) the Group has applied a post-tax discount rate (‘WACC’)
of 11.51% after making adjustments to reflect the cash flow risks
inherent in the forecasts. The WACC rate applied to Hobson
Leavy is 19.5% reflective of this specific CGU.
AWF and Madison Recruitment
Year end testing has determined that an impairment of $6.5m on
Madison Recruitment and $4.5m on AWF was required following
changes in the economic environment in which these CGUs
operate. Following these impairments, the carrying amount
of the Madison Recruitment and AWF CGUs respectively are
$16.2m and $13.9m.
This impairment was determined through the value in use
calculations with the following assumptions:
• Madison Recruitment has applied zero sales growth for
FY26 recognising the investment cost in the evolution of its
service delivery strategy returning to standard sales growth
of 2.5% (2023: 2.5%) thereafter.
• AWF has forecast sales growth of 9.0% for FY26 and FY27 as
a result of an increase in average temporary staff per day of
2.4% for FY26 and FY27. Annual sales growth returns to 2.5%
per annum for FY28 and thereafter.
• Terminal year sales growth assume 2.5% (2023: 2.5%).
Both the AWF and Madison CGUs are sensitive to changes in
financial performance given the impairment recognised in the
current year.
For AWF, in the event of a 1% decrease in growth rates
(subsequent to its FY25 budget) an impairment of $0.4m would
be recognised. In the event of a 1% increase in the WACC rate
applied, an impairment of $1.3m would be recognised.
For Madison, a 1% decrease in growth rates (subsequent to its
FY25 budget) an impairment of $0.3m would be recognised.
In the event of a 1% increase in the WACC rate applied, an
impairment of $1.2m would be recognised.
Absolute IT
The Absolute IT CGU is sensitive to changes in financial
performance assumptions. Absolute IT’s performance in FY24
has been constrained following a downturn in the IT sector, and
wider economic uncertainty. Absolute IT is forecast to achieve
annual growth of 2.5% post its FY25 budget, with a terminal
year sales growth starting in FY30 at a constant rate of 2.5%
(2023:2.5%).
As noted above Absolute IT is sensitive to changes in it’s
financial performance assumption, specifically the achievement
of the FY25 budget. The CGUs recoverable amount is similar to
it’s carrying amount.
In the event of a 1% decrease in growth rates (subsequent to its
FY25 budget) an impairment of $0.25m would be recognised.
In the event of a 1% increase in the WACC rate applied, an
impairment of $0.9m would be recognised.
JacksonStone & Partners
JacksonStone & Partners recoverable amount exceeds
its carrying value, with an estimated sales growth of 2.5%
subsequent to its FY25 budget.
A sensitivity analysis performed on this CGU including reducing
the estimated growth rates by 1.0% and increasing the discount
rate by 1.0% does not result in any impairment.
Hobson Leavy
Hobson Leavy recoverable amount exceeds its carrying value,
with an estimated sales growth of 2.5% subsequent to its
FY25 budget.
A sensitivity analysis performed on this CGU including reducing
the estimated growth rates by 1.0% and increasing the discount
rate by 1.0% does not result in any impairment.
KEY JUDGEMENTS AND SOURCES OF ESTIMATION
UNCERTAINTY - IMPAIRMENT TESTING OF THE
CARRYING VALUE OF GOODWILL AND INDEFINITE LIFE
INTANGIBLE ASSETS
Determining whether goodwill is impaired requires an
estimation of the value-in-use of the group of cash generating
units to which goodwill has been allocated. The value-in-use
calculation requires Management to estimate the future cash
flows expected to arise from those cash generating units and a
suitable discount rate in order to calculate present value.
The Board in determining the WACC rate to be applied
considered the findings of a Corporate Advisory firm. They
assessed the Group’s weighted average cost of capital taking
into consideration the risk-free rate based on New Zealand
Government Bonds, a market risk premium and an equity beta
based on a selection of comparable recruitment companies.
NOTES TO THE GROUP FINANCIAL STATEMENTS52ACCORDANT GROUP ANNUAL REPORT 2024
This section explains the Group’s reserves and working
capital. In this section there is information about:
(a) equity and dividends
(b) net debt; and
(c) receivables and payables
C. Managing funding
IN THIS SECTION
C1 SHARE CAPITAL
2024202320242023
ORDINARY SHARE CAPITALNo of SharesNo of Shares$’000$’000
As at 1 April34,325,54234,325,54230,86830,868
As at 31 March34,325,54234,325,54230,86830,868
The share capital reflected in the following note represents the ordinary share capital of Accordant Group Limited. All ordinary
shares carry rights to dividends and distribution on wind-up.
C2 TREASURY SHARES
2024202320242023
TREASURY SHARESNo of SharesNo of Shares$’000$’000
As at 1 April517,289517,289804804
As at 31 March517,289517,289804804
Treasury shares were acquired to provide flexibility under the equity-settled share based incentive scheme.
The treasury shares were acquired progressively over the period 28 May 2021 to 7 July 2021 at a weighted average cost of $1.5545
per share at a cost of $804k.
C3 EARNINGS PER SHARE
20242023
EARNINGS PER SHARE$’000$’000
Comprehensive income for the year net of tax ($’000)(10,008)1,977
Number of ordinary shares as at 31 March34,325,54234,325,542
Weighted average number of shares for basic earnings per share34,325,54233,808,253
Total basic earnings per share (cents per share)(29.2)5.8
Weighted average number of shares for diluted earnings per share34,325,54233,808,253
Total diluted earnings per share (cents per share)(29.2)5.8
The restricted shares detailed in Note F1 could also potentially dilute earnings per share in the future, but currently are anti-dilutive
(2023: were anti-dilutive).
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202453
C4 DIVIDENDS
Accounting policy
Dividend distributions to the Group’s shareholders are recognised as a liability in the Group’s financial statements in the period in
which the dividends are approved.
20242023
$’000Total $’000
Recognised amounts:
Prior year final dividend3.01,0715.61,987
Interim dividend3.01,0826.52,322
2,1534,309
Declared amounts:
Final dividend declared––3.01,071
Dividends
Prior year final dividend
On 29 May 2023 the Directors resolved to approve the
payment of a fully imputed final dividend of 3.0 cents per
share (total dividend of $1,071,248) paid on 30 June 2023 to
all shareholders registered on 16 June 2023. The dividend
reinvestment plan was not offered on this distribution.
Current year interim dividend
On 27 October 2023 the Directors resolved to approve the
payment of a fully imputed final dividend of 3.0 cents per share
(total dividend of $1,082,348) paid on 1 December 2023 to all
shareholders registered on 17 November 2023. The dividend
reinvestment plan was not offered on this distribution.
Subsequent event
On 29 May 2024 the directors resolved not to declare
a final dividend for the year ended 31 March 2024 due to
economic uncertainty and market volatility.
NOTES TO THE GROUP FINANCIAL STATEMENTS54ACCORDANT GROUP ANNUAL REPORT 2024
C5 CASH AND CASH EQUIVALENTS
Accounting policy
Cash and cash equivalents
Cash and cash equivalents comprise of cash held by the Group
and short-term bank deposits with an original maturity of
less than three months. The carrying amount of these assets
approximates their fair value.
For the purpose of the statement of cash flows, cash and
cash equivalents include cash on hand and in banks and
investments in money market instruments, net of outstanding
bank overdrafts.
Statement of cash flows
The following terms are used in the Group’s statement of
cash flows:
• Operating activities are the principal revenue producing
activities of the Group and other activities that are not
investing or financing activities;
• Investing activities are the acquisition and disposal of long
term assets and other investments not included in cash
equivalents; and
• Financing activities are activities that result in changes in
the size and composition of the contributed equity and
borrowings of the entity.
Interest paid and interest received may be classified as
operating cashflows because they enter into the determination
of profit or loss.
Cash payments for the interest portion of a financial liability
or lease liability, have been classified as part of operating
activities and cash payments for the principal portion for
financial liability or lease liability, have been classified as part of
financing activities.
Interest received on cash at bank have been classified as part of
operating activities.
20242023
CASH AND CASH EQUIVALENTS$’000$’000
Cash at bank2,0921,954
Total cash and cash equivalents2,0921,954
RECONCILIATION OF NET PROFIT AFTER TAX TO CASH FLOWS
FROM OPERATING ACTIVITIES
20242023
$’000$’000
Net profit after income tax(10,008)1,977
Adjustments for operating activities non-cash items:
Depreciation and amortisation4,9474,628
Impairment(11,000)109
(Gain)/loss on disposal of property, plant and equipment and intangible assets108(16)
Movement in expected credit loss provision120(281)
Movement in deferred tax(425)(158)
Equity-settled share-based payments210223
Interest on contingent consideration to the vendor of Hobson Leavy13922
Fair value movement on contingent consideration to the vendor of Hobson Leavy(1,865)–
Total non-cash items14,2344,527
Movements in working capital excluding movements relating to purchase of subsidiaries:
(Increase)/decrease in trade and other receivables, and contract assets2,8902,666
Increase/(decrease) in trade and other payables, and contract liabilities(3,749)(3,236)
Increase/(decrease) in taxation payable(1,053)(1,219)
Total movement in working capital(1,912)(1,789)
Cash flow from operating activities2,3144,715
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202455
C6 TRADE AND OTHER RECEIVABLES
Accounting policy
Trade and other receivables are measured on initial recognition
at fair value and subsequently at amortised cost using the
effective interest method.
Appropriate allowances for expected irrecoverable amounts
are recognised in profit and loss which are measured using
the simplified approach permitted by NZ IFRS 9 Financial
Instruments, which requires lifetime expected losses for trade
and other receivables to be recognised from initial recognition
of the receivable.
There are no trade and other receivables with a significant
financing component.
The Group determines the expected credit losses by
calculating:
• a probability weighted amount that is determined by
evaluating a range of possible outcomes;
• time value of money;
• reasonable and supportable information that is available at
the reporting date about past events, current conditions and
forecasts of future economic conditions.
When reassessing expected credit losses the Group also
considers any change in the credit risk and quality of the
receivable from the date credit was initially granted up to the
end of the reporting period, referring to past default experience
of the counterparty and an analysis of the counterparty’s
current financial position.
The Group determines the expected credit losses for all trade receivables and other receivables (including those that are past due
and neither past due) by using a provision matrix, estimated based on historical credit loss experience based on shared credit risk
characteristics and the days past due status of the debtors. The expected loss rates are based on the payment profiles of sales
over a period of 60 months. The historical loss rates are adjusted to reflect current conditions and estimates of future economic
conditions affecting the ability of the debtors to repay the receivables.
An allowance of $200,000 (2023: $100,000) has been made for expected credit losses arising from trade and other receivables.
Before accepting a new customer, the Group conducts reference checks using external sources. Customer checks and approval of
credit limits are performed independently of the sales function, and are reviewed on an ongoing basis.
The credit period on sale of services is between 7 and 30 days, unless otherwise agreed. No interest is charged on trade
receivables for the first 30 days from the date of invoice. Thereafter, interest can be charged at 1.5 per cent per month on the
outstanding balance.
Included in trade receivables are debtors with a carrying value of $1.9 million (2023: $2.6 million) which are overdue at the reporting
date. Included in other receivables are debtors with a carrying value of $Nil (2023: $Nil) which are overdue at the reporting date. The
Group does not hold any collateral over these balances.
The Group writes off a receivable when there is information indicating that the debt is in severe financial difficulty and there is
no realistic prospect of recovery, e.g. when the debtors has been placed under receivership or liquidation, or has entered into
bankruptcy proceedings. NZ IFRS 9 includes a rebuttal presumption that a loss event has occurred if debtors are aged greater than
90 days. Impairment losses on trade and other receivables are presented as ‘direct expenses’ in the Statement of Comprehensive
Income. Any revisions to this amount are credited to the same line item.
20242023
TRADE AND OTHER RECEIVABLES$’000$’000
Trade receivables20,55323,008
Provision for expected credit loss(200)(100)
Total trade receivables20,35322,908
Other receivables6841,084
Total other receivables6841,084
Total trade and other receivables21,03723,992
Other receivables include Contract Assets that were previously disclosed under Note A2.
Contract Assets at 31 March 2024 were $135,000 (2023: $221,000).
NOTES TO THE GROUP FINANCIAL STATEMENTS56ACCORDANT GROUP ANNUAL REPORT 2024
20242023
PROVISION FOR IMPAIRMENT $’000$’000
PROVISION FOR EXPECTED CREDIT LOSS FOR TRADE RECEIVABLES
As at 1 April100381
Impairment losses reversed100(247)
Impairment losses recognised–(34)
As at 31 March200100
EXPECTED LOSS RATES FOR TRADE RECEIVABLESCurrent
1–30
days
30–60
days
60–90
days
90+
daysTotal
2024
Expected loss rate (%)0.0%0.0%60.9%100.0%100.0%1.1%
Gross trade receivables ($’000)18,6121,662202671020,553
Provision for impairment of trade receivables ($’000)–(123)(67)(10)(200)
Net trade receivables18,6121,66279––20,353
2023
Expected loss rate (%)0.0%0.0%5.1%51.4%98.4%0.5%
Gross trade receivables ($’000)20,3932,1323251223623,008
Provision for impairment of trade receivables ($’000)––(15)(54)(31)(100)
Net trade receivables20,3932,13231068522,908
EXPECTED LOSS FOR OTHER RECEIVABLES
Management has reviewed and assessed other receivables and
the provision for impairment $Nil (2023: $Nil) represents the
best estimate of the expected credit losses based on historical
credit loss experience adjusted to reflect current conditions and
estimates of future economic conditions. The expected loss
rate (%) is calculated on a GST inclusive basis.
Other information about customers
The Group has no customers making up more than 10% of the
2024 Group revenue (2023: none).
The concentration of credit risk is limited due to the size of the
customer base.
KEY JUDGEMENTS AND ESTIMATES – EXPECTED CREDIT
LOSSES FROM TRADE AND OTHER RECEIVABLES
Management has reviewed and assessed debtors on a branch-
by-branch basis and the provision for impairment represents the
best estimate of the expected credit losses based on historical
credit loss experience adjusted to reflect current conditions and
estimates of future economic conditions.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202457
C7 BORROWINGS
20242023
BORROWINGS
$’000$’000
Bank loans26,50023,500
Total borrowings26,50023,500
Classified as:
Current––
Non-current26,50023,500
Total borrowings26,50023,500
Summary of borrowing arrangements
During the financial year the Group changed the composition of the ASB Bank Facilities and extended the facilities to 31 October 2025.
The total Facility Limit has been reduced to $35.0m (2023: $38.0m). The Revolving Credit Facility was reduced to $18.0m from
$23.0m and the Trade Finance Facility increased to $17.0m from $15.0m.
Facility usage at 31 March 2024 was: Revolving Credit $18.0m (2023: $18.0m) and Trade Finance $8.5m (2023: $5.5m). Cash at Bank
at 31 March 2024 was $2.092m ($2023: $1.954m).
The loan facilities are secured by first ranking General Security Deeds with cross guarantees and indemnities executed by all Group
entities (refer note E1). The banking facilities request the Group to operate within defined financial undertakings. The Group has
complied with all covenants requirements during the year.
The revolving loan is drawn in tranches which are financed for durations of 90,120 and 150 days. The trade finance loan is drawn in
30 day tranches, repayable at the company’s election with interest calculated for the duration utilised.
The weighted average cost of interest including bank margin and line fee (excluding bank facility fee) was 7.24% (2023: 4.26%).
Reconciliation of liabilities arising from financing activities
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash
changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the
Group’s statement of cash flows as cash flows from financing activities:
Opening
balance
Financing
cash flows
Non-cash
changes
Closing
balance
NOTE$’000$’000$’000$’000
For the year ended 31 March 2024
Borrowings
Bank loans – ASB Bank Limited
(i)
23,5003,000–26,500
Other financial liabilities from financing activities
Lease liabilities
(ii)
B27,813(3,097)2,2536,969
Hobson Leavy contingent considerationG12,648–(1,704)944
Total33,961(97)54934,413
For the year ended 31 March 2023
Borrowings
Bank loans – ASB Bank Limited
(i)
18,0005,500–23,500
Lease liabilities
(ii)
B27,756(2,803)2,8607,813
Hobson Leavy contingent considerationG1––2,6482,648
Total25,7562,6975,50833,961
(i) The cash flows make up the net amount of proceeds/(payment) from borrowings, repayments of borrowings and repayment of other financial
liabilities in the statement of cash flows.
(ii) Non-cash changes comprise new leases entered into during the year of $1,649,000 (2023: $2,492,000) and remeasurement of existing leases
during the year of $604,000 (2023: $368,000).
NOTES TO THE GROUP FINANCIAL STATEMENTS58ACCORDANT GROUP ANNUAL REPORT 2024
C8 TRADE AND OTHER PAYABLES
Accounting policy
Trade and other payables are initially measured at fair value, and
subsequently measured at amortised cost, using the effective
interest rate method.
Income, expenses, assets and liabilities are recognised net of
goods and services tax (“GST”), except:
• where the amount of GST incurred is not recoverable from
the taxation authority, it is recognised as part of the cost of
acquisition of an asset or as part of an item of expense; or
• for receivables and payables which are recognised inclusive
of GST where invoiced.
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
20242023
TRADE AND OTHER PAYABLES$’000$’000
Trade payables5,1018,431
Goods and services tax (GST) payable2,1321,980
PAY E2,3242,450
Other payables and accruals8,1398,538
Total trade and other payables17,69621,399
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202459
This section explains the financial risks the Group faces,
how these risks affect the Group’s financial position and
performance and how the Group manages these risks.
D1 FINANCIAL RISK MANAGEMENT
The Group is exposed to a variety of financial risks comprising:
– credit risk;
– liquidity risk;
– market risk
– interest rate risk; and
– capital risk.
D. Financial instruments used to manage risk
IN THIS SECTION
Credit risk
Credit risk is the risk that one party to a financial instrument will
cause a financial loss to the other party by failing to discharge
an obligation.
The Group’s principal financial assets are cash and cash
equivalents, and trade and other receivables.
The credit risk on cash and cash equivalents is limited because
the counterparty is a bank with a high credit-rating assigned by
international credit-rating agencies. The maximum credit risk on
other balances is limited to their carrying values without taking
into account any collateral held.
The Group’s credit risk is primarily attributable to its trade
and other receivables. The amounts presented in the
Statement of Financial Position are net of allowances for
doubtful receivables.
The Group has no significant concentration of credit risk as its
exposure is spread over a large number of customers other than
outlined in note C6.
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty
in meeting obligations associated with financial liabilities.
The Group manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities
by continuously monitoring forecast and actual cash flows
and matching the maturity profiles of financial assets and
financial liabilities.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows
of a financial instrument will fluctuate as a result of changes in
market interest rates.
The Group’s exposure to interest rate risk arises mainly from its
interest earning cash deposits and its interest bank borrowings.
The Group is exposed to interest rate risk to the extent that
it invests for a fixed term at fixed rates or borrows for a fixed
term at fixed rates. The Group’s policy is to obtain the most
favourable term and interest rate available.
Capital risk management
The Group manages its capital to ensure that the entities in
the Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation
of the debt and equity balance. The Group’s overall strategy
remains unchanged from the prior year.
The capital structure of the Group consists of debt, which
includes the borrowings disclosed in note C7, cash and cash
equivalents disclosed in note C5 and equity attributable to
equity holders of the Group, comprising issued share capital as
disclosed in note C1 and retained earnings.
The Directors and Management review the capital structure
on a periodic basis. As part of this review the Directors
and Management consider the cost of capital and the risks
associated with each class of capital. The Directors and
Management will balance the overall capital structure through
payment of dividends, new share issues, and share buy backs as
well as the issue of new debt or the redemption of existing debt.
Fair value of financial instruments
The carrying amounts of financial instruments at balance date
approximate the fair value at that date.
NOTES TO THE GROUP FINANCIAL STATEMENTS60ACCORDANT GROUP ANNUAL REPORT 2024
Liquidity and interest rate risk management
The following table details the Group’s remaining contractual maturity for its financial assets and liabilities. The table has been
drawn up based on the undiscounted cash flows of financial assets and liabilities based on the earliest date on which the Group can
be required to receive or pay. The table includes both interest, bank facility fees and principal cash flows. To the extent that interest
cash flows are at floating rates, the undiscounted cash flows are derived from interest rates at 31 March.
Weighted average
effective interest rate
Less than
1 month
1–3
months
3–12
months
1–5
years
5+
yearsTOTAL
%$’000$’000$’000$’000$’000$’000
2024
Financial assets
Non-interest bearing-%21,037––––21,037
Floating interest4.50%2,092––––2,092
Financial liabilities
Non-interest bearing-%(5,843)(1,440)(2,508)(5,221)(451)(15,463)
Floating interest8.21%(181)(362)(1,631)(27,587)–(29,761)
17,105(1,802)(4,139)(32,808)(451)(22,095)
2023
Financial assets
Non-interest bearing-%23,992––––23,992
Floating interest2.13%1,954––––1,954
Financial liabilities
Non-interest bearing-%(9,376)(2,409)(2,262)(7,916)(964)(22,927)
Floating interest5.18%(101)(203)(913)(24,109)–(25,326)
16,469(2,612)(3,175)(32,025)(964)(22,307)
The analysis includes all financial assets and liabilities. In relation to the financial liabilities, this excludes tax related balances and
employee benefits, as these are not financial instruments.
Sensitivity analysis
The sensitivity analysis has been based on the exposure to interest rates for borrowings and cash and cash equivalents at 31 March.
A 50 point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents
management’s assessment of the reasonably possible change in interest rates.
20242023
INTEREST RATE +/– 50 bps$’000$’000
Impact on profit and equity133117
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202461
This section provides information to help readers understand
the Group’s structure and how it affects the financial position
and performance of the Group.
E1 SUBSIDIARIES
Accounting policy
Basis of consolidation
The Group financial statements comprise the financial
statements of the company and entities (including structured
entities) controlled by the company and its subsidiaries. Control
is achieved when the Group:
• has power over the investee;
• is exposed, or has rights, to variable returns from its
involvement with the investee; and
• has the ability to use its power to affect its returns
The Company reassesses whether or not it controls an investee
if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above.
E. Group structure
IN THIS SECTION
SUBSIDIARIES
Place of
incorporation
and operation
Proportion of
ownership interest
held
Proportion
of voting
power held
Principal
activity
AWF LimitedNew Zealand100%100%Labour hire
Madison Recruitment LimitedNew Zealand100%100%Recruitment
Absolute IT LimitedNew Zealand100%100%
Recruitment and
Payroll Services
Probity NZ LimitedNew Zealand100%100%Dormant
Accordant Group Services LimitedNew Zealand100%100%Group Services
JacksonStone & Partners LimitedNew Zealand100%100%Recruitment
JacksonStone Consulting LimitedNew Zealand100%100%Dormant
The Work Collective LimitedNew Zealand100%100%Social Enterprise
Hobson Leavy LimitedNew Zealand100%100%Executive Search
The results of subsidiaries acquired or disposed of during
the year are included in profit or loss from the effective date
of acquisition or up to the effective date of disposal, as
appropriate. Where necessary, adjustments are made to the
financial statements of subsidiaries to bring the accounting
policies used into line with those used by other members of
the Group.
All intra-group transactions, balances, income and expenses are
eliminated in full on consolidation.
The consolidated financial statements include the financial
statements of Accordant Group Limited and the subsidiaries
listed below. Subsidiaries are entities controlled, directly or
indirectly, by Accordant Group Limited.
NOTES TO THE GROUP FINANCIAL STATEMENTS62ACCORDANT GROUP ANNUAL REPORT 2024
F. Other
IN THIS SECTION
This section includes the remaining information relating to the
Group’s financial statements that is required to comply with
financial reporting standards.
F1 EMPLOYEE BENEFITS AND SHARE BASED PAYMENTS
Accounting policy
Provision is made for benefits accruing to employees in respect
of wages and salaries, annual leave, long service leave, and sick
leave when it is probable that settlement will be required and
they are capable of being measured reliably.
Provisions made in respect of employee benefits expected
to be settled within 12 months are measured at their nominal
values using the remuneration rate expected to apply at the time
of settlement.
Provisions made in respect of employee benefits which are not
expected to be settled within 12 months are measured as the
present value of the estimated future cash outflows to be made
by the Group in respect of services provided by employees up
to reporting date.
The Group pays contributions to superannuation plans, such
as Kiwisaver. The Group has no further payment obligations
once the contributions have been paid. The contributions are
recognised as an employee benefit expense when they are due.
20242023
EMPLOYEE BENEFITS
$’000$’000
Employee benefits117,408116,866
Employer contribution to Kiwisaver2,6962,794
Equity-settled share-based payments210223
Total employee benefits expense120,314119,883
Government grants of $55,000 (2023: $614,000) have been offset against employee benefits.
20242023
COMPENSATION OF KEY MANAGEMENT PERSONNEL (Excludes Directors)$’000$’000
Salaries and short-term benefits3,2403,144
Employer contribution to Kiwisaver9794
Equity-settled share-based payments7574
Total key management personnel compensation3,4123,312
The remuneration of directors and key executives is determined by the Remuneration and Nomination Committee having regard to
the performance of individuals and market trends. Directors fees expensed during the year was $461,000 (2023: $395,000).
Gross dividends paid during the year to key management who hold restricted shares was $75,000 (2023: $103,000).
Prepaid contributions are recognised as an asset to the extent
that a cash refund or a reduction in the future payments
is available.
The Group operates an equity-settled share based incentive
Scheme for senior staff and directors that is settled in ordinary
shares. The fair value of these share-based payments is
calculated on the grant date using an appropriate valuation
model. The fair value is included in employee benefits expense
on a straight line basis over the vesting period, based on the
Group’s estimate of the number of equity instruments that will
eventually vest.
The same amount is credited to shareholders equity. At each
balance date, the Group re-assesses its estimates of the number
of equity instruments expected to vest. The impact of the
revision of original estimates, if any, is recognised in employee
benefits expense immediately, with a corresponding adjustment
to shareholders equity.
The Group is not party to any Golden parachute clauses.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202463
Employee share schemes
The Group has an ownership-based compensation scheme
for senior employees of the Group. In accordance with the
provisions of the restricted share scheme, as approved
by shareholders, senior employees and directors may, at
the discretion of the Board, be granted the opportunity of
purchasing restricted shares at a price determined by the Board
under the rules of the scheme.
Invited participants purchase the shares by way of an interest
free loan from the Group. Participants may convert their shares
from the vesting date and only when they have repaid the loan
from the Group. The shares issued to participants are held as
security for the loan until such time the loan has been repaid.
Restricted shares are entitled to all the rights as ordinary shares,
including dividends and full voting rights, but are not tradable
until they are converted to ordinary shares based on the terms
of the scheme.
A total of 420,000 restricted shares were issued to senior staff
during the year under the terms of the Group share scheme
(2023: 490,000). At the same time an interest free loan was
provided to staff to purchase these shares pursuant to the
terms of the scheme.
No restricted shares were exercised during the year (2023: No
restricted shares were exercised during the year).
No restricted shares expired during the year (2023: 150,000)
and 119,000 restricted shares were forfeited during the year
(2023: 105,000). The corresponding interest free loan provided
to staff was also cancelled.
At 31 March 2024, there were 2,211,000 (2023: 1,910,000)
shares held by staff members and corresponding loans to the
value of $3,827,340 (2023: $3,418,440).
The following share-based payment arrangements were in existence at 31 March 2024.
Number
Grant
date
Vesting
date
Expiry
date
Issue
price
Fair value at
grant date
of the option
RESTRICTED SHARE SERIES$$
H Shares 2019 Grant159,8001/11/20181/01/20241/01/20251.900.55
H Shares 2020 Grant31,20018/06/20191/01/20241/01/20251.850.46
I Shares 2021 Grant150,00018/09/20201/07/20231/07/20241.500.37
J Shares 2021 Grant250,00018/09/20201/01/20251/01/20261.500.41
K Shares 2022 Grant364,0001/10/20211/01/20241/01/20251.900.43
L Shares 2022 Grant396,0001/10/20211/01/20251/01/20261.900.48
M Shares 2023 Grant220,00014/10/20221/10/20251/10/20261.800.50
N Shares 2023 Grant220,00014/10/20221/10/20261/10/20271.800.56
O Shares 2024 Grant210,00013/11/20231/10/20261/10/20271.500.28
P Shares 2024 Grant210,00013/11/20231/10/20281/10/20291.500.35
Total2,211,000
The rules of the restricted share scheme (which for accounting purposes are treated as share options) allow participants to hand
back to the Group restricted shares issued to them at the grant date (or during the exercise period) should the market price of the
shares be below the exercise price. If the restricted shares are handed back to the Group, the loan from the Group is cancelled. Due
to the nature of the restricted share scheme, the scheme has been treated as a share option scheme under NZ IFRS 2 Share-based
Payments and a value placed on each restricted share in accordance with the standard.
Restricted shares are valued using Black-Scholes pricing model. Where relevant, the expected life used in the model has been
adjusted based on management’s best estimate for the effects of non-transferability, exercise, and behavioural considerations.
Expected volatility is based on the historical share price volatility over the expected term of the option. The valuation assumes that
senior employees and directors will exercise the options at the end of the allowed one-year loan repayment period.
NOTES TO THE GROUP FINANCIAL STATEMENTS64ACCORDANT GROUP ANNUAL REPORT 2024
RESTRICTED
SHARE SERIES
Term to vestingExpected life
Risk
Free Rate
Annualised
VolatilityOption Value
(Days)(Years) % %$
H Shares 2019 Grant1,8875.202.20%26.70%$0.55
H Shares 2020 Grant1,6584.501.30%24.70%$0.46
I Shares 2021 Grant1,0162.800.27%33.60%$0.37
J Shares 2021 Grant1,5664.300.37%31.20%$0.41
K Shares 2022 Grant8222.301.22%36.80%$0.43
L Shares 2022 Grant1,1883.301.40%35.20%$0.48
M Shares 2023 Grant1,0833.004.44%37.10%$0.50
N Shares 2023 Grant1,4484.004.45%35.80%$0.56
O Shares 2023 Grant1,0532.905.03%39.20%$0.28
P Shares 2023 Grant1,7844.905.03%35.40%$0.35
The weighted average fair value of the restricted shares granted under the restricted share scheme during the year was
$0.44 (2023: $0.47).
The following reconciles the outstanding restricted shares granted under the restricted share scheme at the beginning
and end of the year:
GROUP
20242023
Option
Weighted average
exercise priceOption
Weighted average
exercise price
Number$Number$
Balance at 1 April1,910,000$1.791,675,000$1.80
Granted during the year420,000$1.50490,000$1.80
Exercised during the year–$-–$-
Expired during the year–$-(150,000)$1.89
Forfeited during the year(119,000)$1.86(105,000)$1.90
Balance at 31 March2,211,000$1.731,910,000$1.79
The number of restricted share options exercisable at 31 March 2024 is Nil (2023: Nil).
The restricted shares outstanding at 31 March 2024 had a weighted average contractual life from inception of 911 days
(2023: 1,251 days).
During the year ended 31 March 2024 the share based payments expense recognised by the Group was a charge of
$209,838 (2023: charge of $222,215).
There were no restricted share options exercised during the year (2023: none).
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202465
F2 PROVISIONS
Accounting policy
Provisions are recognised when the Group has a present
obligation as a result of a past event, and it is probable that
the Group will be required to settle that obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation
at the end of the reporting period taking into account the risks
and uncertainties surrounding the obligation. Where a provision
is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those
cash flows.
20242023
PROVISION FOR WAGES, MEDICAL AND REHABILITATION COSTS$’000$’000
As at 1 April582400
Change in claims provision104182
As at 31 March686582
Classified as:
Current686582
Non-current––
Total provisions686582
AWF Limited continues to participate in the ACC Partnership
Discount Plan. Under this plan AWF Limited, as employer
undertakes injury management with the assistance of
its appointed agent and accepts financial responsibility
for employees who incur work-related injuries for the
12 month cover period and subsequent 12 month claims
management period.
KEY JUDGEMENTS AND ESTIMATES – REHABILITATION
UNDER THE ACC PARTNERSHIP PROGRAMME
Provisions represent management’s best estimate of the
Group’s liability for ongoing wages, medical and rehabilitation
costs for open claims in terms of the partnership agreement
with Accident Compensation Corporation, based on past
experiences and the nature of the open claims.
NOTES TO THE GROUP FINANCIAL STATEMENTS66ACCORDANT GROUP ANNUAL REPORT 2024
F3 RELATED PARTIES
Controlling entity
The SA Hull Family Trust No.2, which holds 18,194,598 (2023:
18,194,598) shares is the ultimate controlling entity of the Group,
having a 53.01% (2023: 53.01%) holding.
Transactions
During the year, Group entities entered into the following
trading transactions with a related party that is not a member of
the Group:
20242023
RELATED PARTY TRANSACTIONS
$’000$’000
Mr Simon Bennett – Consultancy services90120
Accordant Group Services Limited has entered a consultancy arrangement with Mr Simon Bennett (Chairman and Director)
commencing 1 January 2022 at the rate of $120,000 per annum for a defined scope of work. This arrangement concluded
31 December 2023.
At 31 March 2024, Group entities do not have any amounts owed or owing to a related party that is not a member of the Group
(2023: $ Nil).
F4 COMMITMENTS
20242023
CAPITAL EXPENDITURE COMMITMENTS
$’000$’000
Property, plant and equipment6279
Total capital expenditure commitments6279
F5 CONTINGENT ASSETS AND LIABILITIES
ASB Bank Limited has issued seven guarantees (2023: seven) on behalf of the Group totalling $910,575 (2023: $888,000) in
support of property leases (six) and a surety bond to the NZX.
The Group has no other contingent assets or liabilities at 31 March 2024 (2023: $Nil).
F6 EVENTS AFTER THE REPORTING DATE
No subsequent events have occurred since reporting date that would materially impact the Group’s financial statements as at
31 March 2024.
NOTES TO THE GROUP FINANCIAL STATEMENTSACCORDANT GROUP ANNUAL REPORT 202467
G. Significant matters in the financial year
Significant matters which have impacted the Group's financial
performance.
G1 BUSINESS COMBINATIONS
Accounting policy
Business combinations are accounted for using the acquisition
method.
The consideration transferred in a business combination is
measured at fair value, which is calculated as the sum of the
acquisition-date fair values of assets transferred by the Group,
liabilities incurred by the Group to the former owners of the
acquiree and the equity interest issued by the Group (if any) in
exchange for control of the acquiree.
Acquisition-related costs are recognised in profit or loss as
incurred. When the Group acquires a business, it assesses
the financial assets and liabilities assumed for appropriate
classification and designation in accordance with the
contractual terms, economic circumstances and pertinent
conditions as at the acquisition date.
At the acquisition date, the identifiable assets acquired and
the liabilities (including contingent liabilities) assumed are
recognised at their fair value at the acquisition date, except
that deferred tax assets or liabilities or assets related to
employee benefit arrangements are recognised and measured
in accordance with NZ IAS 12 Income Taxes and NZ IAS 19
Employee Benefits respectively.
Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer’s
previously held equity interest in the acquiree (if any) over the
net of the acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed. If, after reassessment,
the net of the acquisition-date amounts of the identifiable
assets acquired and liabilities assumed exceeds the sum
of the consideration transferred, the amount of any non-
controlling interests in the acquiree and the fair value of the
acquirer’s previously held interest in the acquiree (if any), the
excess is recognised immediately in profit or loss as a bargain
purchase gain.
IN THIS SECTION
The Group’s goodwill policy is set out in note B4.
When the consideration transferred by the Group in a business
combination includes a contingent consideration arrangement,
the contingent consideration is measured at its acquisition-date
fair value and included as part of the consideration transferred
in a business combination.
Changes in fair value of the contingent consideration that
qualify as measurement period adjustments are adjusted
retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments
that arise from additional information obtained during the
‘measurement period’ (which cannot exceed one year from the
acquisition date) about facts and circumstances that existed at
the acquisition date.
The subsequent accounting for changes in the fair value of the
contingent consideration that do not qualify as measurement
period adjustments depends on how the contingent
consideration is classified. Contingent consideration that is
classified as equity is not remeasured at subsequent reporting
dates and its subsequent settlement is accounted for within
equity. Other contingent consideration is remeasured to fair
value at subsequent reporting dates with changes in fair value
recognised in profit or loss.
If the initial accounting for a business combination is incomplete
by the end of the reporting period in which the combination
occurs, the Group reports provisional amounts for the items for
which the accounting is incomplete. Those provisional amounts
are adjusted during the measurement period (see below), or
additional assets or liabilities are recognised to reflect new
information obtained about facts and circumstances that
existed as of the acquisition date that, if known, would have
affected the amounts recognised as of that date.
Purchase of Hobson Leavy
Effective 31 January 2023, Accordant Group Limited acquired the shares of Hobson Leavy Limited (‘Hobson Leavy’). Hobson Leavy is
one of New Zealand’s market leaders in retained executive search, operating exclusively in the “C” suite market and across both the
public and private sectors. The acquisition accelerates the group’s capability in the search market, and especially in Auckland.
The goodwill and identifiable intangible assets are not deductible for income tax purposes.
NamePrincipal Date of acquisition
Proportion
acquired %
Cost of acquisition
$’000
Hobson LeavyRetained executive “C suite” search31/1/2023100%8,795
NOTES TO THE GROUP FINANCIAL STATEMENTS68ACCORDANT GROUP ANNUAL REPORT 2024
Contingent consideration
As part of the purchase agreement, a contingent consideration
arrangement was agreed.
Under the contingent consideration arrangement, there will be
an additional cash payment to the previous owners of Hobson
Leavy, where the Group is required to pay:
• Two Earn-outs based on performance in FY24 (‘Earn-out
tranche 1’) and FY25 (‘Earn-out tranche 2’) above a specified
and defined calculation of Earnings before Interest, Tax,
Depreciation and Amortisation (‘EBITDA’); and
• The Group will pay $2.00 for every one additional $1.00 of
EBITDA achieved over an agreed minimum threshold.
At acquisition date, the potential undiscounted amount of all
future payments that the Group could be required to make
under the contingent consideration arrangement was $1.284m
for Earn-out tranche 1 and $1.628m for Earn-out tranche 2.
• The fair value of Earn-out tranche 1 of $1.196m, was
estimated by applying a discount factor of 5.30% to the
undiscounted earn out amount of $1.284m. The minimum
EBITDA threshold for FY24 was not exceeded. The fair value
of Earn-out tranche 1 of $1.196m together with discount
interest of $76,000 has been released to the Statement of
Comprehensive Income in the year ended 31 March 2024.
• The fair value of Earn-out tranche 2 of $1.452m, was
estimated by applying a discount factor of 4.91% to the earn
out amount of $1.628m. There has been a material change
in the Group's estimate of the probable EBITDA under the
contingent consideration arrangement for Earn-out tranche
2. The potential undiscounted future amount that the Group
could be required to pay has been revised down to $1.0m
(2023: $1.628m). The future liability has decreased by a total
of $0.628m. The fair value gain of $0.508m and discount
interest of $85,000 has been released to the Statement of
Comprehensive Income for the year ended 31 March 2024.
Fair value measurement
Contingent consideration is the Group’s only item measured at
fair value. Contingent consideration is categorised within Level
3 of the fair value hierarchy. The following is information about
how the fair value of contingent consideration is determined (in
particular, the valuation technique(s) and inputs used).
• Valuation
technique and
key inputs:
Discounted cash flow method was used
to capture the present value of the Group
arising from the contingent consideration.
• Significant
unobservable
inputs:
Discount rate
• Relationship
and sensitivity
of unobservable
inputs to
fair value:
The higher the discount rate, the lower
the fair value. If the discount rate was 1%
higher/lower while all other variables
were held constant, the carrying amount
would decrease/increase by $12,000
(2023: $48,000).
ACCORDANT GROUP ANNUAL REPORT 202469COMPANIES ACT 1993 DISCLOSURES
Companies Act 1993 disclosures
Corporate Governance Information
Accordant’s governance framework is guided by the principles and recommendations described in the NZX Corporate Governance
Code dated April 2023 (Code). Accordant has reported against the Code in its separately published Corporate Governance
Statement which, together with the detailed information on the Company’s Board of Directors and corporate governance policies,
can be viewed on the Corporate Governance section on the Accordant website
(www.accordant.nz/corporate-governance).
Variance to NZX Corporate Governance Code
We believe that the Company’s corporate governance practices for the financial year ended 31 March 2024 are materially in line
with the Code. Those areas of variance from the Code are set out in the table below:
NZX Code
principle
NZX Code
recommendation
Key
differenceStatus
Board composition
and performance
2.5: The Board should set
measurable objectives
for achieving diversity.
The Company has
adopted a Diversity and
Inclusion Policy, a copy
of which is available on
the Company’s website.
However, the Board
has not set measurable
objectives under the
Policy for achieving
diversity.
Whilst the Board considers authentic diversity
outcomes can be achieved without measurable
objectives, the small size of the Board is limiting
when seeking to label individual diversity.
Although no alternative governance practices
have been adopted in lieu of recommendation
2.5, the Board has been particularly mindful of
its Policy in making its most recent appointment
to the Board.
Board composition
and performance
2.9: The Chair of the
Board should be an
independent director.
Simon Bennett as
Chair of the Board is
not independent due
to Simon having been
employed as the CEO of
the Company within the
last three years.
The Board and ARC maintain an independent
composition majority. This enables a non-
independent Chair, who brings deep industry,
sector and organisational knowledge.
No alternative governance practices
have been adopted specifically in lieu of
recommendation 2.9.
Remuneration5.2: An issuer should
have a remuneration
policy for executives
which outlines the
relative weightings
of remuneration
components and relevant
performance criteria.
The Company’s
remuneration policy does
not specifically address
the exact weightings
of remuneration
components and relevant
performance criteria.
The Company’s Annual Report contains
disclosures with respect to the weightings and
performance criteria as these are dynamic from
year to year. The Board’s practice, rather than
setting specific criteria and weightings in the
Remuneration Policy, is to set these annually
according to the needs of the business and
the specific short and long term goals that are
considered at the time to be appropriate.
Directors
The following persons were Directors of Accordant Group Limited as at 31 March 2024:
NAME OF DIRECTOR
Nature of directorshipDate appointed
Simon BennettNon independent Chair21 June 2021
Simon HullNon independent Director4 February 2005
Nicholas SimcockIndependent Director1 January 2018
Laurissa CooneyIndependent Director1 August 2020
Richard StoneIndependent Director25 January 2022
Bella Takiari-BrameIndependent Director1 January 2024
The Board has assessed the independence of each of the Directors by reference to the definition of the term ‘Disqualifying
Relationship’ in the NZX listing rules and by having regard to the factors described in the NZX Corporate Governance Code that
may impact on director independence. As a consequence of that assessment, the Board has determined that all of the directors are
independent Directors other than Simon Hull and Simon Bennett.
Simon Hull has been determined by the Board to be a non independent director because he is a substantial shareholder in the
Company and has been a director since incorporation (appointed 4 February 2005) while Simon Bennett has been determined to be
a non independent director because within the last three years, he was the Chief Executive Officer of the Company.
None of the Directors has been appointed pursuant to listing rule 2.4.
Laurissa Cooney has resigned as a director, with effect from 29 May 2024.
Subsidiary Company Directors
The following were directors of subsidiary companies as at 31 March 2023. Employee directors of subsidiary companies do not
receive directors’ fees, remuneration, or other benefits in their capacity as directors. The remuneration and other benefits of such
employees, received as employees, are included in the relevant bands for remuneration disclosed elsewhere in this Additional
Information section.
NAME OF SUBSIDIARY COMPANY
Directors
Hobson Leavy LimitedSimon Bennett, Jason Cherrington, Carrie Hobson, Stephen Leavy
Accordant Group Services LimitedJason Cherrington, Tony Staub, Shereen Low
AWF LimitedJason Cherrington, Tony Staub, Shereen Low
Madison Recruitment LimitedJason Cherrington, Tony Staub, Shereen Low
Absolute IT LimitedJason Cherrington, Tony Staub, Shereen Low
JacksonStone & Partners LimitedJason Cherrington, Tony Staub, Shereen Low
JacksonStone Consulting LimitedJason Cherrington, Tony Staub, Shereen Low
The Work Collective LimitedJason Cherrington, Tony Staub, Shereen Low
Probity NZ LimitedJason Cherrington, Tony Staub, Shereen Low
Tony Staub has resigned as Group Chief Financial Officer with effect from 29 May 2024 and will, accordingly, be removed as
a director of the above subsidiary companies. Rod Hyde has been appointed as Group Chief Financial Officer commencing
20 May 2024.
COMPANIES ACT 1993 DISCLOSURES70ACCORDANT GROUP ANNUAL REPORT 2024
Entries recorded in the Interests Register
In accordance with section 140(2) of the Companies Act 1993 the Company maintains an interests register in which Directors’
interests are recorded. The table below sets out the particulars of general disclosures of interest made by Directors holding office
as at 31 March 2024. The director will be regarded as interested in all transactions between Accordant and the disclosed entity.
DIRECTOR
Name of business and nature of interest
Simon HullTrustee – S.A. Hull Family Trust
Trustee – S.A. Hull Family Trust No. 2
Director – Hull Properties Limited
Director – Nano Imports Limited
Director – Multihull Ventures Limited
Director – Marlborough Developments (2007) Limited
Director – Zhik Pty Limited
Director – The Garage Club Limited
Simon BennettTrustee – Ice Foundation
Director – The Icehoue Limited
Director – Peak Partners Limited
Director – Metro Performance Glass limited
Nicholas SimcockTrustee – Wellington Creative Arts Trust
Director – Simcorp Limited
Director – Just Property Management Limited
Director – GW Trustee (2023) Limited
Laurissa CooneyChair of the Audit & Risk Committee – Ngai Tai ki Tamaki Commercial Investment
Director – Air New Zealand Limited
Director – Goodman (NZ) Limited
Director – Goodman Property Aggregated Limited
Director – Goodman Property Services (NZ) Limited
Director – GMT Bond Issuer Limited
Director – Le Rissa Limited
Co-Chair – The Aotearoa Circle
Steering Committee Member – Institute of Directors Chapter Zero
Richard StoneTrustee – Embassy Theatre 2020
Chair – Life Flight Trust Limited
Chair – Commerce Building Limited
Director – Bolton Holdings Limited
Director – Cape Horn Land Company Limited
Director – Central Air Ambulance Rescue Services Limited
Bella Takiari-BrameTrustee – Tiratu ̄ Iwi Ma ̄ori Partnership Board
Director – Luana Limited
Board Member – Accident Compensation Corporation (ACC)
Director – Braemar Hospital Limited
Director – Crown Infrastructure Partners Limited
Director – NZ Healthcare Investments Limited
Deputy Chair – Te Nehenehenui Trust
Chair – The Lines Company
Director & Shareholder – Te Ohu Kai Moana Trustee Limited
Shareholder – Te Putea Whakatupu Trustee Limited
Shareholder – Te Wai Ma ̄ori Trustee Limited
Director – Aotearoa Fisheries Limited trading as Moana New Zealand
Panel Member – University Advisory Group
COMPANIES ACT 1993 DISCLOSURESACCORDANT GROUP ANNUAL REPORT 202471
Information used by Directors
During the financial year ended 31 March 2024 there were no notices from Directors of the Company requesting to disclose
or use Company Information received in their capacity as Directors.
Indemnity and insurance
In accordance with section 162 of the Companies Act 1993 and the constitution of the Company, Accordant has continued to
indemnify and insure its directors, executives and employees acting on behalf of the Company, against potential liability or
costs incurred in any proceeding, except to the extent prohibited by law. The insurance does not cover liabilities arising from
criminal actions.
Directors’ Shareholding Interests
As at 31 March 2024 the Directors of the Company had the following relevant interests in the Company’s shares.
NAME OF DIRECTOROrdinary shares
Restricted shares held under the
Company’s long term incentive scheme*
Simon Bennett280,007960,000
Simon Hull18,194,598–
Nicholas Simcock10,000–
Laurissa Cooney––
Richard Stone––
Bella Takiari-Brame––
* These Restricted Shares were issued to Simon Bennett during his tenure as CEO. Further information about the terms of the long-term incentive
scheme that governs these Restricted Shares is set out in note F to the financial statements.
Directors and Senior Manager share dealings
In accordance with the Companies Act 1993, between 1 April 2023 and 31 March 2024 the Board received the following
disclosures from Directors and Senior Managers of acquisitions and dispositions of shares in the Company, with such particulars
having been duly entered in the Company’s interests register.
Director/Senior
Manager
TransactionNumber of securitiesPrice per securityDate
Jason CherringtonPurchase of shares55,153$1.4519 June 2023
Jason CherringtonPurchase of shares24,940$1.1615 September 2023
Jason CherringtonPurchase of shares3,774$1.2125 September 2023
Jason CherringtonPurchase of shares4,000$1.172 October 2023
Diversity and inclusion
The gender breakdown of Accordant Group Limited’s Board of Directors and Officers as at 31 March 2024 is set out in the
table below:
Directors31 Mar 2024 31 Mar 2023Officers*31 Mar 202431 Mar 2023
Female2 (33%)1 (25%)Female4 (44%)6 (50%)
Male4 (67%)4 (80%)Male5 (56%)6 (50%)
Gender Diverse––Gender Diverse––
Total65Total912
* Officers for these purposes means any leader who is concerned with or takes part in the management of the Company and who also reports
to the Board or the CEO.
The Board is satisfied with the initiatives being implemented with respect to the Group’s diversity policy.
COMPANIES ACT 1993 DISCLOSURES72ACCORDANT GROUP ANNUAL REPORT 2024
Remuneration of Directors
The Director fee pool is $450,000. The last increase in the director pool was approved by shareholders at the Annual Shareholders
meeting held on 26 July 2017. Directors’ fees for the year ended 31 March 2024 totalled $461,083. The payment of fees in excess
of the $450,000 cap was made under and in accordance with listing rule 2.11.3 because: (a) there was an increase in the number
of directors (five to six) from the number in office at the conclusion of the shareholders’ meeting in 2017 at which the fee cap was
approved; and (b) the amount paid to Bella Tikiari-Brame did not exceed the amount necessary to enable her to be paid the average
amount then being paid to each non executive director (excluding the Chairperson).
The Company has arranged a policy of Directors’ and Officers’ liability insurance. This policy covers the Directors and Officers so
that any monetary loss suffered by them, as a result of actions undertaken by them as Directors or Officers, is insured to specific
limits (and subject to legal requirements and/or restrictions).
The Board Charter states that no retirement allowances are payable to Directors and no similar payments or benefits have been paid
or are intended to be paid to any director upon cessation of office.
The table below sets out the total remuneration and the value of other benefits received by each Director during the financial year
ended 31 March 2024.
DirectorAnnual $'000Fees paid in year $'000
Simon Bennett*136136
Simon Hull8179
Nicholas Simcock8179
Laurissa Cooney8179
Richard Stone7170
Bella Takiari-Brame7118
521461
* In addition to the above Simon Bennett was paid $90,000 (2023: $120,000) by way of a consultancy fee for services provided to the Company for
specific work undertaken over and above and separate from his role as a Director and Chair. He also received gross dividends of $40,000 in respect
of Restricted Shares held under the Company’s long-term incentive scheme.
Directors are eligible to participate in the Group’s equity-settled share-based incentive scheme.
Attendance at Board and Committee meetings during FY24
DirectorBoardAudit & Risk CommitteeRemuneration & NominationsHealth & Safety
Total meetings held9729
Meetings attended:
Simon Bennett9729
Simon Hull85**8
Laurissa Cooney979
Nick Simcock8628
Richard Stone97**29
Bella Takiari-Brame*22**2
*Bella Takiari-Brame was appointed a Director on 1 January 2024 and appointed to the Audit & Risk Committee on 27 March 2024.
**Attended as observers rather than as members of the Committee.
COMPANIES ACT 1993 DISCLOSURESACCORDANT GROUP ANNUAL REPORT 202473
CEO remuneration FY24
Salary
and fees
Taxable
benefits
Subtotal
– fixed
remuneration
Short Term
Incentive
STI
LTI – Gross
Dividends on
Restricted Shares
Subtotal
– pay for
performance
Total
remuneration
$532,211$15,966$548,177TBA$31,250$31,250$579,427
The FY23 short term incentive was $Nil. The FY24 Short Term incentive is yet to be determined.
As at the date of this Annual Report the Board has not yet determined whether the CEO has earned a Short Term Incentive in respect
of the financial year ended 31 March 2024.
CEO remuneration FY23
Salary
and fees
Taxable
benefits
Subtotal
– fixed
remuneration
Short Term
Incentive
STI
LTI – Gross
Dividends on
Restricted Shares
Subtotal
– pay for
performance
Total
remuneration
$528,653*$15,860$544,513$56,135$22,569$78,704$623,217
The Short-Term Incentive paid in FY23 relates to the CEO’s performance in FY22.
Short-Term incentives are determined after year end and are paid in the subsequent financial year.
The following five-year summary aligns the Short-Term incentive to the year in which it relates to.
Five-year summary – CEO remuneration
Financial YearCEOSingle figure fixed remunerationSTI – Percentage against maximum
2024Jason Cherrington$548,177Yet to be determined
2023Jason Cherrington$544,513$Nil
2022Jason Cherrington$401,10658.1%
2022Simon Bennett$394,6666.7%
2021Simon Bennett$643,667100.0%
2020Simon Bennett$589,36840.0%
Explanation of the above items
1. Taxable benefits comprise a matching superannuation contribution of 3% of gross taxable earnings.
2. Short Term Incentive includes a matching superannuation contribution of 3%.
3. On 21 June 2021 the Company appointed Jason Cherrington to take over from Simon Bennett as the Chief Executive Officer.
Breakdown of pay for performance FY (2024)
DescriptionPerformance measures
STI – Set at 25% of fixed remuneration if all performance
targets are achieved. The measures used in determining the
quantum of the STI are set annually.
Targets relate to Company financial performance 60%,
individual leadership targets 20% and Strategic initiatives 20%.
The STI performance for the 2024 financial year has yet to
be determined.
LTI – The CEO is eligible for a grant of Restricted Shares under
the Company’s long-term incentive scheme.
250,000 Restricted Shares were issued to the CEO in the
FY24 financial year. Further information about the terms of
the Restricted Shares, including the performance measures,
is set out in note F to the financial statements.
The CEO did not exercise any Restricted Share options
during the financial year.
COMPANIES ACT 1993 DISCLOSURES74ACCORDANT GROUP ANNUAL REPORT 2024
Restricted Share Scheme interests awarded to the CEO
Table A below sets out Options to acquire restricted shares issued under the Company’s long term incentive scheme to the
Company’s CEO Jason Cherrington.
Table B below sets out Options to acquire restricted shares previously issued under the Company’s long-term incentive scheme to
the Company’s former CEO Simon Bennett.
Note F1 to the financial statements contains an explanation of how the long-term incentive scheme operates as well as further
information regarding, in respect of each series of Restricted Shares issued under that Scheme, the term to vesting, expected life,
the risk-free rate (%), annualised volatility and option value (and basis of calculation). The CEO did not exercise any restricted share
options during FY24.
Table A – interests awarded during the 2024 financial year.
Jason Cherrington
Date of awardType of Scheme interestNumber
Exercise
price
Vesting date
(May be exercised within
12 months of the vesting date)
2 October 2022Options to acquire restricted M shares125,000$1.801 October 2025
2 October 2022Options to acquire restricted N shares125,000$1.801 October 2026
13 November 2023Options to acquire restricted O shares125,000$1.501 October 2026
13 November 2023Options to acquire restricted P shares125,000$1.501 October 2028
Table B – interests awarded to the former CEO.
Simon Bennett
Date of awardType of Scheme interestNumber
Exercise
price
Vesting date
(May be exercised within
12 months of the vesting date)
1 November 2018Options to acquire restricted H shares60,000$1.901 July 2024
18 September 2020Options to acquire restricted I shares150,000$1.501 July 2023
18 September 2020Options to acquire restricted J shares250,000$1.501 January 2025
1 October 2021Options to acquire restricted K shares250,000$1.901 January 2024
1 October 2021Options to acquire restricted L shares250,000$1.901 January 2025
COMPANIES ACT 1993 DISCLOSURESACCORDANT GROUP ANNUAL REPORT 202475
Employee Remuneration
The table below sets out the number of employees (not being directors of the Company) who, during the financial year ended
31 March 2024, received remuneration and other benefits in their capacity as employees that exceeded a value of $100,000 per
annum. The remuneration amounts include all monetary amounts and benefits actually paid during the year, including the face value
of any incentives that vested during the year including the Gross Taxable value of Dividends paid on Restricted Shares.
Number of Employees
Remuneration
20242023
$100,000–$109,9991818
$110,000 –$119,9991916
$120,000 –$129,999119
$130,000 –$139,000113
$140,000 –$149,999108
$150,000 –$159,99996
$160,000 –$169,99924
$170,000–$ 179,99933
$180,000 –$189,99931
$190,000–$ 199,99925
$200,000 –$209,999–3
$210,000 –$219,9992–
$220,000 –$229,9993–
$230,000 –$239,9992–
$240,000 –$249,99913
$250,000 –$259,999–1
$260,000 –$269,99911
$270,000 –$279,9991–
$280,000 –$289,99911
$290,000 –$299,99911
$300,000 –$309,9991–
$310,000 –$319,999–3
$320,000 –$329,9992–
$340,000 –$349,99911
$350,000 –$359,999––
$360,000–$369,99911
$370,000–$379,0003–
$390,000 –$399,99912
$400,000 –$409,999––
$410,000 –$419,999–1
$430,000 –$439,999–1
$440,000 –$449,999–1
$470,000 –$479,999––
$500,000 –$509,999––
$510,000 –$519,999––
$550,000 –$559,999–1
$570,000 –$579,9991–
$580,000 –$589,99911
$590,000 –$599,9991–
$620,000 –$629,999–1
11296
COMPANIES ACT 1993 DISCLOSURES76ACCORDANT GROUP ANNUAL REPORT 2024
Long term incentive Scheme
The Group operates a long-term incentive scheme for senior employees and directors that is settled in ordinary shares. A detailed
explanation of the scheme is set out in Note F to financial statements in this Annual Report.
Distribution of holders of quoted shares
The table below sets out the spread of the Company’s shareholders as at 31 March 2024.
Size of holding
Number of fully
paid ordinary
shareholdersPercentage
Number of fully
paid sharesPercentage
1 – 100011415.92%57,2730.17%
1,001 – 5,00026537.01%764,8772.23%
5,001 – 10,00012417.32%967,3762.82%
10,001 – 50,00017524.44%3,732,08510.87%
50,001 – 100,000192.65%1,312,4363.82%
100,001 and Over192.65%27,491,49580.09%
716100.00%34,325,542100.00%
Substantial product holders
According to the Company’s records, and disclosures made pursuant to section 280(1)(b) of the Financial Markets Conduct Act
2013 the persons set out in the table below were substantial product holders as at 31 March 2024. The total number of voting
securities (fully paid ordinary shares) of the Company as at 31 March 2024 was 34,325,542. The total number of Restricted Shares
of the Company as at 31 March 2024 was 2,211,000. Accordingly, for the purposes of section 293(1)(c) of the Financial Markets
Conduct Act 2013, the total number of ‘voting products’ of the Company on issues as at 31 March 2024 was 36,536,542.
Number of shares in which relevant interest is held
Name of substantial product holderNumberPercentageDate of notice
Simon Alexander Hull & David John Graeme Cox18,194,59853.01%5/02/2018
Masfen Securities Limited2,404,5927.01%1/06/2021
COMPANIES ACT 1993 DISCLOSURESACCORDANT GROUP ANNUAL REPORT 202477
Twenty largest holders of quoted equity securities
The table below sets out the names and holdings of the twenty largest registered shareholders in the Company as at 30 April 2024.
InvestorTotal UnitsPercentage
Simon Alexander Hull & David John Graeme Cox18,194,59853.01%
Masfen Securities Limited2,404,5927.01%
Russell John Field & Anthony James Palmer1 ,115,9303.25%
Ma Janssen Limited1,109,2643.23%
New Zealand Central Securities Depository Limited892,8732.60%
Accordant Group Limited517,2891.51%
Susanne Rhoda Webster426,7501.24%
New Zealand Depository Nominee426,5671.24%
Peter Abe Hull & Antoinette Ngaire Edmonds372,6961.09%
Wynnis Ann Armour & Jocelyn Patricia Dutton354,7031.03%
Ross Barry Keenan300,0000.87%
Philip John Talacek & Brenda Ann Talacek300,0000.87%
Simon James Bennett280,0070.82%
Kevin James Hickman & Joanna Hickman200,0000.58%
Elizabeth Mary Keenan150,0000.44%
Lay Dodd Trustee Services Limited & Patricia Anne Neal129,3800.38%
Derek Arthur Andrews110,4870.32%
Jennifer Margaret Cherrington Mowat104,0590.30%
Margaret Elizabeth Price & Thomas Edward Price102,3000.30%
James Michael Robert Syme100,0000.29%
Auditor fees
The amount of fees paid by the Company and its subsidiaries to the Group’s independent auditor, Deloitte Limited, in the last two
financial years is set out in the table below.
Services provided $000’sFinancial year ended 31 March 2024Financial year ended 31 March 2023
Audit of the full year financial statements314334
Other services$Nil$Nil
Donations
The Company does not donate to political parties. The Company did not make any donations during the financial year.
NZX waivers and exercise of powers
There were no waivers granted by NZX or relied on by Accordant in the 12 months preceding 31 March 2024.
NZX has not taken any disciplinary action against Accordant during the financial year ended 31 March 2024, and there was no
exercise of powers by NZX under listing rule 9.9.3 (relating to powers to cancel, suspend or censure an issuer) with respect to
Accordant during the reporting period.
Credit rating
The Company does not currently hold a credit rating from an accredited rating agency.
COMPANIES ACT 1993 DISCLOSURES78ACCORDANT GROUP ANNUAL REPORT 2024
Directory
Registered Office
Level 6, 51 Shortland Street
Auckland 1010
Ph: 09 526 8770
Mailing address
PO Box 105 675
Auckland 1143
Directors
Simon Bennett (Chairman and Non-independent Director)
Simon Hull (Non-independent Director)
Nicholas Simcock (Independent Director)
Laurissa Cooney (Independent Director)
Richard Stone (Independent Director)
Bella Takiari-Brame (Independent Director – appointed 1 January 2024)
Auditor
Deloitte Limited
Deloitte Centre
L15-20, 1 Queen Street
PO Box 33
Auckland
Phone: +64 9 303 0700
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
PWC Tower
L30, 15 Custom St West
Auckland
New Zealand
PO Box 91976
Ph: +64 9 375 5998
COMPANIES ACT 1993 DISCLOSURESACCORDANT GROUP ANNUAL REPORT 202479
Registered Office of
Accordant Group Limited
Level 6, 51 Shortland St
PO Box 105 675
Auckland 1143
Ph: 09 526 8770
accordant.nz
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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