2024 Annual Report
ENPRISE GROUP LIMITED
Annual Report 2024
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Contents
Letter from our Board3
Our Businesses5
Board of Directors6
Financial Statements7
Independent Auditor's Report42
Corporate Governance Statement46
Other Disclosures47
Directory51
2
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Letter from our Board
The Directors are pleased to submit to shareholders their report and financial statements for the year ended 30 June 2024.
PRINCIPAL ACTIVITIES
Enprise Group Limited (Enprise) is a hi-tech software and services investment company that has two operating divisions:
▪
▪
Enprise Group has two additional strategic investments as at 30 June 2024:
▪
▪
REVIEW OF OPERATIONS AND OUTLOOK
Kilimanjaro Consulting
RevenueOperating Profit
$'000$'000
Full Year 202420,4541,245
2nd half 2024
10,8041,297
1st half 2024
9,650(52)
Full Year 202319,501362
2nd half 2023
10,604820
1st half 2023
8,897(458)
Recurring
Revenue
Contracted
Revenue
Other
Revenue
Total
Revenue
Full Year 20244,4594,7879,24611,20820,454
Full Year 20234,4814,1718,65210,84919,501
The rebrand of MYOB Advanced to MYOB Acumatica positions this product squarely in the mid-market, where Kilimanjaro has built market-
leading capability to service larger more complex organisations. Acumatica remains the fastest-growing cloud SaaS ERP system in the
world; internationally recognised and multi-award winning. Acumatica’s continued investment in AI and automation makes it an attractive
solution for mid-market organisations. Kilimanjaro is the largest player in both the MYOB Acumatica space as well as the MYOB Exo space
in Australia and New Zealand.
Marketing activity and sales effort both required additional resources to maintain our progress in difficult economic conditions, and
increased competition. In New Zealand, business owners are likening the current economic circumstances to the GFC and Covid. As our
business thrives in times of strong business confidence, the current circumstances are particularly challenging.
Good management of costs and incremental improvements in efficiency have enabled Kilimanjaro to return a significantly better result this
year than last. We are particularly proud of the high levels of productivity in our teams, our high Net Promoter Score, and our Client
Retention. Our organisational culture has been maintained despite our growth, enabling us to provide an attractive workplace for our highly
skilled people.
Kilimanjaro Consulting (Kilimanjaro), a solutions provider for MYOB Enterprise software and companion products in Australia and New
Zealand.
iSell Pty Limited (iSell), a developer/seller of a cloud-based quoting system (ITQuoter) on a Software-as-a-Service (SaaS) model to the
Managed Service Provider (MSP) market in Australia, UK/Europe, New Zealand, South Africa, and North America.
32.92% of Datagate Innovation Limited (Datagate), a developer and provider of online reporting and billing portals under a SaaS model for
MSP’s reselling telco/utility services and hosted service providers in New Zealand, Australia, Canada, USA and UK/Europe.
6.35% of Vadacom Limited (Vadacom), a developer/provider of multi-tenant cloud based VoIP solution for corporations in New Zealand and
Australia.
Changes in product margins and a shift in the business product mix led to a slight reduction in recurring revenue, however contracted
revenue increased significantly. Our Acumatica (formerly MYOB Advanced) base now exceeds 300 clients. As the transition from Exo to
Acumatica continues, the product mix margin will be restored.
The cooperation between Kilimanjaro and MYOB drives our success and our relationship has benefitted from a renewed focus by MYOB on
their partner channel.
As signalled in our interim report, general economic conditions in
both Australia and New Zealand remain tough. Leveraging off our
ability to improve efficiency through the use of technology, our
clients continued to invest modestly. Coupled with productivity
improvements and management of costs, Kilimanjaro was able to
return a much-improved performance in the second half of the
year.
Total Recurring
& Contracted
Revenue
The Directors are pleased to report that the group has delivered a much-improved
performance with a welcome return to profitability. Despite the prevalent economic
headwinds, the Directors are confident that the improvements made across all business
units will sustain this performance.
Total comprehensive income for the year ended 30 June 2024 was $0.019m, compared
to a loss of $10.967m in 2023. In the prior year, Kilimanjaro had been severely impacted
by the write-off of goodwill, based on a worst-case scenario of the dispute with MYOB.
We have successfully renegotiated our bank loan.
Group Revenue grew by $1.114m (5.4%), to $21.865m.
2021202220232024
Revenue Growth
3
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Letter from our Board
iSell
Datagate
Vadacom
FUTURE PLANS
Nicholas Paul - DirectorRonald Baskind - Director
Independent Non-Executive ChairpersonManaging Director
27 September 2024
27 September 2024
HubSpot is an AI-powered customer platform with software, integrations, and resources to connect marketing, sales, and customer service.
The two businesses operate in the same market space and have similar ethics and culture. There are opportunities for cross-referrals of
clients, and cross-utilisation of skills. We welcome Recipe Marketing to the family.
The Board of Directors wishes to thank all employees of the Group, including management, for their hard work and exceptional dedication,
without which these results would not have been possible.
Off the back of success in the US markets, Datagate plans to further expand geographically, and continue to grow recurring revenue. The
Datagate board has elected to take the opportunity to build market share now, rather than throttle back growth to achieve break-even.
Enprise Group has a 6.35% investment in Vadacom Holdings. Although a smaller player in the VOIP telecommunications space, Vadacom
continues to deliver dividends to the Group and provide a good return on our investment.
As a quoting tool for Managed Service Providers (MSP’s), ITQuoter provides an elegant solution for the quote-to-procurement cycle, with
data feeds from the major suppliers. The addition of customer portals is expected to make the product more competitive and more
marketable to large MSP’s.
Following several years of development in changing from on-premise software to the cloud, we now have a solid and stable product and are
getting some notable wins in the market. Aggressive cost-cutting has reduced the losses. Total revenue growth was 14.5%.
Growth in recurring revenue in Datagate was 24.8%.
Subsequent to year end, Enprise Group subscribed to a further 35,714 shares at $2.80 per share in an oversubscribed Datagate rights
issue.
A major change in the accounting treatment of the Datagate numbers is the application of IFRS2 to the employee share options. A cost of
approximately $0.312m was booked to Datagate to recognise the cost of these options, and Enprise has recognised our share of that in
these accounts.
If Enprise Group’s 2,446,738 shares in Datagate (post the rights issue) were valued at the August 2024 rights issue price of $2.80 per share,
the value of our investment would be $6,850,866.
Our recently announced acquisition of a 52% share in Recipe Marketing, an award-winning HubSpot Platinum Solutions Partner, brings
expertise in an area closely aligned to our MYOB business.
4
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Our Businesses
Kilimanjaro Consulting is MYOB’s number one
partner in Australia and New Zealand and is the
leading trans-Tasman provider of solutions based on
the MYOB Acumatica and MYOB Exo software
platforms. It offers a companion product range to
extend the power and functionality of MYOB Advanced
and MYOB Exo. Kilimanjaro hosts, implements,
integrates, manages and supports all of the software it
sells. Kilimanjaro services clients in a range of
industries through branches in Australia and New
Zealand.
iSell is a primary provider of business systems to the
IT reseller market through its ITQuoter software. iSell
databases contain over 4.5 million products
representing more than 2000 vendors available from
100+ distributors. The products are sent automatically
to hundreds of IT Resellers daily, across Australia, New
Zealand, UK & Europe, South Africa and USA.
Datagate offers one-stop SaaS telecom billing.
Datagate has everything required to make billing
telecommunications easy, quick, profitable and
compliant, in a single SaaS package. The Datagate
online billing portal enables IT Managed Service
Providers (MSPs) to bill telecom services optimally at
minimal time and cost. Datagate is the online billing
portal that integrates with software that’s important to
MSPs, including ConnectWise and other professional
services automation software, tax engines and popular
accounting systems like QuickBooks and Xero.
Vadacom specialises in phone system software
development and unified communications solutions for
Australian and New Zealand businesses. Vadacom is
one of New Zealand’s leading developers of open
source technology and Voice over IP (VoIP) based IP
telecoms solutions to businesses of all sizes.
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ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Board of Directors
Aaron Ridgway is an Enprise Group Independant Non-Executive Director. Aaron is a proven
entrepreneur with over twenty years of commercial experience whichincludes founding and providing
major start-up funding to a cloud-technology company and leading it, as CEO, through growth, NZTE
funding, IPO, globalisation, rationalisation and successful exit to a Silicon Valley corporation.
Currently CEO, investment generator, largest stakeholder and Director of Vadacom Holdings Limited.
Nick Paul is the Independant Non-Executive Chairperson of Enprise Group. He is an accomplished senior
leadership professional with over 30 years of achievement and success driving sales growth in highly
competitive technology related markets.
Nick has held senior roles in the Telco industry including Vodafone, Spark and CEO of Leading Edge
Communications. Nick established The Sales Factory in 2015 and focuses on providing sales and
distribution growth support to mid-sized companies in Australasia.
Ronnie Baskind is the Enprise Group Managing Director. He has more than 30 years’ experience as an
entrepreneur, management consultant, senior executive, director and agribusiness professional. Ronnie is
CEO of the Enprise Group division, Kilimanjaro Consulting.
Ronnie’s diverse background, combined with strong analytical and facilitation skills, has given him a deep
insight into businesses across most industry sectors and in various stages of development. Ronnie is the
founder of Kilimanjaro Consulting Pty Limited, Australia’s largest implementer of MYOB’s enterprise-level
business management solutions.
Lindsay Phillips is an Enprise Group Non-Executive Director. He has been involved in private equity for
over 35 years, commencing in 1987 with M.J.H. Nightingale & Co. Limited in London/New York and
subsequently Australia since 1995. Lindsay's experience includes seven years (1980-87) with Price
Waterhouse and thirty seven years in investment banking/private equity in the United Kingdom, Europe,
USA and Australia including five years (2007-12) as Managing Director of Lazard Australia Private Equity.
Lindsay is currently Managing Director of two investment funds – Phoenix Development Fund and
Nightingale Partners – focused on providing patient expansion capital to family companies. He serves as a
Director of most of the companies in which the funds are invested.
Elliot Cooper is Finance Director of the Enprise Group. He is also co-founder and Executive Director of
Enprise Group, and formerly held the Enprise Group CEO role.
In addition to his financial expertise Elliot has extensive experience in the financial software business. He is
a qualified accountant with deep experience in financial accounting and financial controller roles.
Elliot was one of the original creators of Exonet Finance (now renamed MYOB Exo), alongside Mark
Loveys. Like Mark, Elliot has been involved with the product every step of the way since its inception at
PC Direct in the 1990s.
6
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Financial Statements
for the year ended 30 June 2024
CONTENTS
Statement of Comprehensive Income8
Statement of Financial Position9
Statement of Changes in Equity10
Statement of Cash Flows11
Notes to the Financial Statements12
7
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Statement of Comprehensive Income
for the year ended 30 June 2024
30 June 202430 June 2023
Note$'000$'000
Revenue from contracts with customers321,86520,751
Other operating income4(a)89-
Employee expense5(d)(16,015)(15,784)
Other operating costs5(c)(6,350)(7,403)
Other gains/(losses) - net5(a)113(77)
Operating profit/(loss)(298)(2,513)
Equity earnings/(losses) from associates and joint ventures14(220)(330)
Other gains/(losses) related to associates and joint ventures149-
Impairment of intangible assets17293(6,786)
Finance cost - net5(b)(203)(219)
Net profit/(loss) before income tax(419)(9,848)
Income tax benefit6(a)373(904)
Net profit/(loss) after tax for the period(46)(10,752)
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation differences65(40)
Items that will not be reclassified to profit or loss
Changes in the fair value of investments through other comprehensive income15- (175)
Total other comprehensive income/(loss) for the period, net of tax65(215)
Total comprehensive income/(loss) for the period
19(10,967)
Profit/(loss) for the period is attributable to:
Non-Controlling Interest(39)(473)
Owners of Enprise Group Limited(7)(10,279)
(46)(10,752)
Total comprehensive income/(loss) for the period is attributable to:
Non-Controlling Interest(39)(473)
Owners of Enprise Group Limited58(10,494)
19(10,967)
Earnings per share from profit/(loss) for the period attributable to ordinary shareholders of the Enprise Group Limited:
Basic and diluted earnings/(loss) per share (cents) 7(0.04) (60.82)
8
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Statement of Financial Position
as at 30 June 2024
30 June 202430 June 2023
Note
$'000$'000
ASSETS
Current
Cash and cash equivalents
19
1,7371,178
Trade and other receivables
8
3,5403,911
Contract assets
9
635669
Current tax assets
6(c)
124
Staff receivables
2612
Total current assets
5,9395,794
Non-current
Investments in associates, joint ventures14701912
Investments in other entities15452452
Staff receivables - non current2617
Property plant and equipment16383388
Intangible assets172,7922,948
Right-of-use assets - non-current182,2321,098
Deferred tax asset6(d)1,7101,267
Loans to related parties - non current22(e)- 32
Other non-current assets1036436
Total non-current assets
8,6607,150
Total assets
14,59912,944
LIABILITIES
Current liabilities
-
Trade and other payables
11
3,3823,430
Provisions
12
2,0631,985
Contract liabilities
13
1,9551,689
Borrowings
19
4072,096
Lease liabilities
20
203498
Total current liabilities
8,0109,698
Non-current liabilities
Provisions - non-current
12
310356
Borrowings - non current
19
242-
Lease liabilities - non-current
20
2,194734
Deferred tax liability
6(d)
739710
Total non-current liabilities
3,4851,800
Total liabilities
11,49511,498
Net assets3,1041,446
EQUITY
Share capital
21(a)
13,39212,080
Foreign exchange translation reserve
376311
Financial assets at FVOCI reserve
353353
Retained earnings / (accumulated losses)
(10,701)(10,985)
Equity attributable to the owners of Enprise Group Limited3,4201,759
Non-controlling interests
23(316)(313)
Total equity3,1041,446
- -
These financial statements have been authorised for issue by the Directors.
For and on behalf of the Board:
Nicholas Paul - DirectorRonald Baskind - Director
Independent Non-Executive ChairpersonManaging Director
27 September 2024
27 September 2024
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ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Statement of Changes in Equity
for the year ended 30 June 2024
Share
capital
Foreign
exchange
translation
reserve
Financial
assets at
FVOCI
reserve
Non-
controlling
interests
Total equity
$'000$'000$'000$'000$'000$'000
BALANCE AT 1 JULY 202312,080 311 353 (10,985) (313) 1,446
Transactions with shareholders in their capacity as owners
Dividends paid- - - - - -
New shares issued (note 21)1,312 - - - - 1,312
Transactions with non-controlling interests
(note 23)
- - - 291 36 327
Total transactions with shareholders1,312 - - 291 36 1,639
Comprehensive income
-
Profit/(loss) for the period- - - (7) (39) (46)
Other comprehensive income/(loss)- 65 - - - 65
Total comprehensive income/(loss)
net of tax
- 65 - (7) (39) 19
Balance at 30 June 202413,392 376 353 (10,701) (316) 3,104
Share
capital
Foreign
exchange
translation
reserve
Financial
assets at
FVOCI
reserve
Non-
controlling
interests
Total equity
$'000$'000$'000$'000$'000$'000
BALANCE AT 1 JULY 202211,010 351 528 (696) 161 11,354
Transactions with shareholders in their capacity as owners
Dividends paid- - - - - -
New shares issued (note 21)1,070 - - - - 1,070
Transactions with non-controlling interests
(note 23)
- - - (10) (1) (11)
Total transactions with shareholders1,070 - - (10) (1) 1,059
Comprehensive income
Profit for the period- - - (10,279) (473) (10,752)
Other comprehensive income/(loss)- (40) (175) - - (215)
Total comprehensive income/(loss)
net of tax
- (40) (175) (10,279) (473) (10,967)
Balance at 30 June 202312,080 311 353 (10,985) (313) 1,446
Retained
earnings /
(accumulated
losses)
Retained
earnings /
(accumulated
losses)
10
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Statement of Cash Flows
for the year ended 30 June 2024
Note
30 June 202430 June 2023
$'000$'000
OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers25,027 21,616
Interest received6 6
Dividends Received1 -
Income tax refund received111 -
Cash was applied to:
Payments to suppliers & employees(23,133) (22,105)
Interest paid(215) (239)
Income tax paid(1) (3)
Net cash inflow/(outflow) from operating activities24 1,796 (725)
INVESTING ACTIVITIES
Cash was provided from:
Loans repaid by staff4 2
Loans repaid by related parties32 42
Cash was applied to:
Purchase of property, plant and equipment(91) (77)
Software development costs(523) (516)
Investment in equity accounted investment- (434)
Term deposits(317)
Net cash inflow/(outflow) from investing activities(895) (983)
FINANCING ACTIVITIES
Cash was provided from:
Proceeds from issue of shares1,312 1,040
Proceeds from bank borrowings- 723
Proceeds from issue of shares in iSell Pty Limited to non-controlling interests301 -
Cash was applied to:
Dividends paid- -
Purchase of shares in iSell Pty Limited from non-controlling interests- (11)
Repayment of lease liabilities(532) (595)
Repayment of bank borrowings(498) (388)
Repayment of other borrowings- (42)
Net cash inflow/(outflow) from financing activities583 727
Net increase/(decrease) in cash and cash equivalents held1,484 (981)
Net foreign exchange differences24 (6)
Cash and cash equivalents at beginning of the period229 1,216
Net cash and cash equivalents at end of the period
19
1,737 229
Represented by:
Cash and cash equivalents 1,737 1,178
Bank overdraft- (949)
Net cash and cash equivalents at end of the period1,737 229
- -
- -
11
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
1BASIS OF PREPARATION
(a)Reporting entity
(b)Compliance statement
(c)Basis of preparation
(d)Principles of consolidation
The consolidated financial statements comprise the financial statement of the company and its subsidiaries.
Percentage ownership
30 June 202430 June 2023
Kilimanjaro Consulting Limited New ZealandSoftware sales and solutions100.00 100.00
Kilimanjaro Consulting Pty LimitedAustraliaSoftware sales and solutions100.00 100.00
Enprise LimitedNew ZealandSoftware sales and solutions100.00 100.00
Global Bizpro LimitedNew ZealandNon-trading100.00 100.00
iSell Pty LimitedAustraliaSoftware sales and solutions72.51 75.25
IT Quoter LimitedNew ZealandNon-trading72.51 75.25
IT Quoter North America IncUnited StatesNon-trading72.51 75.25
iSell Philippines IncPhilippinesSoftware development72.51 75.25
(e)Business combinations
On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic conditions, the consolidated entity's operating or
accounting policies and other pertinent conditions in existence at the acquisition-date.
Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed to, or
has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. Subsidiaries are consolidated from the date on which control is transferred to the Company. They are deconsolidated from the
date that control ceases.
Intercompany transactions, balances and unrealised gains or losses on transactions between Group companies are eliminated.
Accounting policies of subsidiaries are changed when necessary to ensure consistency with the policies adopted by the Company.
Name of EntityPrincipal activity
Enprise Group Limited (the company) and its subsidiaries (together the Group) is a high-tech software and services investment company.
The company is a limited liability company incorporated and domiciled in New Zealand and is listed on the New Zealand Stock Exchange
(NZX). The Group is registered under the Companies Act 1993 and is a FMC Reporting Entity under Part 7 of the Financial Markets
Conduct Act (FMCA) 2013. The address of its registered office is 16 Hugo Johnston Drive, Penrose, Auckland.
These consolidated financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice
(NZ GAAP), the Companies Act 1993, the FMCA 2013 and NZX listing rules. They comply with New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS), other New Zealand accounting standards and authoritative notices that are applicable to
entities that apply NZ IFRS. The consolidated financial statements also comply with International Financial Reporting Standards (IFRS).
The Group is a for-profit entity for the purposes of complying with NZ GAAP.
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets and
liabilities at fair value.
The consolidated financial statements are presented in New Zealand dollars which is the Company's functional currency and the Group's
presentation currency. All financial information has been prepared in thousands, unless otherwise stated.
The principal accounting policies adopted in the preparation of the financial report are set out in the accompanying notes and indicated
by the shaded text. These policies have been consistently applied to all the periods presented, unless otherwise stated.
Country of
incorporation
The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other
assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or
liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For
the iSell Pty Limited business combination, the non-controlling interest in the acquiree is measured at the proportionate share of the
acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.
These financial statements should be read in conjunction with the Auditor's report.
12
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
1BASIS OF PREPARATION (CONTINUED)
(e)Business combinations (continued)
(f)Foreign currency translation
(g)Financial instruments
Financial assets
Classification of financial assets
Financial assets that meet the following conditions are measured subsequently at amortised cost:
Financial assets that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVOCI):
By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).
- the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling the financial assets; and
- the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual
cash flows; and
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-
end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss.
Financial assets and financial liabilities are recognised in the Group’s statement of financial position when the Group becomes a party to
the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition
or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets are recognised
immediately in profit or loss.
Financial assets are classified into the following specified categories: 'fair value through other comprehensive income' and 'amortised
cost'. The classification depends on the business model and contractual terms of the financial assets and is determined at the time of
initial recognition. All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace.
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
The consolidated financial statements are presented in New Zealand dollars, which is the Group’s presentation currency. Items included
in the financial statements of each of the subsidiaries are measured using the currency of the primary economic environment in which
the entity operates (“the functional currency”).
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the
acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised
as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired,
being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-
date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the
acquiree, if any, the consideration transferred and the acquirer's previously held equity interest in the acquirer.
The results and financial position of entities that have a different functional currency are translated to NZD as follows: assets and liabilities
are translated at the exchange rate at balance date and income statement items are translated at the average exchange rates for the
year. Exchange differences are recognised in other comprehensive income as a currency translation reserve movement.
Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest in the
acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in
profit or loss.
These financial statements should be read in conjunction with the Auditor's report.
13
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
1BASIS OF PREPARATION (CONTINUED)
(g)Financial instruments (continued)
Effective interest method
Income is recognised on an effective interest basis for debt instruments.
Impairment of financial assets
Measurement and recognition of expected credit losses
Derecognition of financial assets
Financial liabilities
Derecognition of financial liabilities
(h)Critical accounting judgements and estimates
Judgements and estimates which are material to the financial statements are found in the following notes:
(a) Revenue recognition (note 3).
(b) Taxation (note 6(d)).
(c) Intangible assets (note 17).
(d) Investments in other entities (note 15).
(e) Lease liabilities (note 20).
(f) Impairment (note 17).
(g) Going concern assumption.
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if
there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical
data adjusted by forward‑looking information as described above.
Financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the
effective interest method.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the
financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor
retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks
and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a
collateralised borrowing for the proceeds received.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the debt instrument, or (where appropriate) a shorter period, to the net carrying amount on initial
recognition.
On derecognition of a financial asset, the difference between the asset's carrying amount and the sum of the consideration received
and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity, is
recognised in profit or loss.
The Group recognises a loss allowance for expected credit losses on financial assets that are measured at amortised cost and contract
assets. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition
of the respective financial instrument.
In the process of applying the Group's accounting policies and the application of accounting standards, a number of estimates and
judgements have been made. The estimates and underlying assumptions are based on historical experience and adjusted for current
market conditions and other factors, including expectations of future events that are considered to be reasonable under the
circumstances. If outcomes within the next financial period are significantly different from assumptions, this could result in adjustments
to carrying amounts of the asset or liability affected.
The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or have expired.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is
recognised in profit or loss.
These financial statements should be read in conjunction with the Auditor's report.
14
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
1BASIS OF PREPARATION (CONTINUED)
(i)Going concern assumption
- Achievement of targeted operational performance
- Maintenance of contractual arrangements with MYOB
The Group prepares its financial statements on a going concern basis and expects to be able to realise its assets and meet its financial
obligations in the normal course of business.
The Group is in the process of restoring the profitability of its Kilimanjaro business segment following the resolution of the MYOB dispute
early in the year. However, despite the second half turnaround in performance, The Group still reported a loss for the year ended 30
June 2024 of $0.05 million (30 June 2023 $10.8 million), net current liabilities of $2.1 million (30 June 2023 $3.9 million) and cash and
cash equivalents of $1.7 million (30 June 2023 $1.1 million).
The Group has maintained a focus on cost control, retaining cash and gradually repaying outstanding debt facilities whilst continuing to
grow revenues across its business segments. The Group has also sought to re-establish a positive working relationship with MYOB, its
key business partner in the Kilimanjaro business segment.
The Group currently projects positive operating cash flows in both FY25 and FY26, largely consistent with those reported in FY24.
The Group’s Kilimanjaro business segment’s profitability is highly dependent upon the maintenance of existing contractual
remuneration arrangements relating to the sale of MYOB software to end-users.
The forecast’s assumptions have been stress tested against a range of scenarios including a revenue miss of 5% to budget, which
demonstrates that while the cashflow forecast is sensitive to changes in key growth assumptions, the Group will have adequate cash
resources without needing to resort to further capital raising.
Should the Group be unable to achieve the forecast cash flows mentioned above, the Group may have insufficient liquid assets to be
able to continue as a going concern for a period of at least 12 months from the issuance of these financial statements.
Therefore, a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern and therefore that the
Group may be unable to realise its assets and discharge its liabilities in the normal course of business.
The Directors consider the Group to be a going concern and believe the Group will achieve its financial forecasts to the extent necessary
to ensure the Group will have sufficient liquidity to continue as a going concern and meet its financial obligations for the foreseeable
future.
The Board-approved financial forecasts for FY25 and FY26 project sufficient cash available to satisfy all financial obligations which arise
in the next 15 months from 30 June 2024. The forecast cash flows are dependent on the key assumptions outlined below.
These financial statements should be read in conjunction with the Auditor's report.
15
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
2SEGMENT INFORMATION
(a)Operational performance
RevenueOperating profit
BUSINESS SEGMENTS
30 June 202430 June 202330 June 202430 June 2023
$'000$'000$'000$'000
Kilimanjaro Consulting20,454 19,501 1,245 362
iSell1,375 1,201 (434) (2,125)
Corporate36 49 (1,109) (750)
#-
21,865 20,751 (298) (2,513)
Equity earnings of associates and joint ventures(211) (330)
Impairment of intangible assets293 (6,786)
Net interest expense(203) (219)
#-
Profit/(loss) before taxation(419) (9,848)
#-
Income Tax373 (904)
#-
Net profit/(loss) attributable to shareholders(46) (10,752)
Revenue
GEOGRAPHIC SEGMENTS
30 June 202430 June 2023
$'000$'000
New Zealand6,762 6,868
Australia14,916 13,711
EMEA*159 154
North America28 16
Asia- 2
#-
21,865 20,751
#* Europe, Middle East and Africa-
(b)Interest, deprecation and amortisation
30 June 202430 June 202330 June 202430 June 202330 June 202430 June 2023
$'000$'000$'000$'000$'000$'000
New Zealand5 17 180 200 288 290
Australia3 3 31 39 1,453 2,515
8 20 211 239 1,741 2,805
#- - - -
(c)Balance sheet information
Non Current Asset
30 June 202430 June 202330 June 202430 June 202330 June 202430 June 2023
$'000$'000$'000$'000$'000$'000
Kilimanjaro Consulting4,122 3,011 11,605 9,727 11,459 9,937
iSell1,285 1,424 1,555 1,618 1,354 1,998
Corporate701 912 3,763 4,417 1,006 2,381
6,108 5,347 16,923 15,762 13,819 14,316
Inter-segment elimination (Enterprise Asset)Inter-segment elimination- - (2,324) (2,818) (2,324) (2,818)
#
6,108 5,347 14,599 12,944 11,495 11,498
#
New Zealand2,707 3,059 6,821 8,018 3,545 4,906
Australia3,401 2,288 9,408 7,145 9,580 8,811
6,108 5,347 16,229 15,163 13,125 13,717
Inter-segment elimination (AU Asset)Inter-segment elimination- - (1,630) (2,219) (1,630) (2,219)
#-
6,108 5,347 14,599 12,944 11,495 11,498
#- - - - - - -
Non-current assets other than
financing and deferred tax
Depreciation and
amortisation expense
The Group is organised into three reportable operating segments based on the business segments. These segments form the basis of
internal reporting used by management and the Board of Directors to monitor and assess performance and assist with strategic
decisions. The Board of Directors is the Group's chief operating decision maker (CODM). Management has determined the operating
segments based on the information reviewed by the Board of Directors and the Chief Executive Officer for the purposes of allocating
resources and assessing performance.
Interest expenseInterest revenue
Total assets
Total liabilities
These financial statements should be read in conjunction with the Auditor's report.
16
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
3REVENUE
Revenue from contracts with customers
- Enterprise software licence revenue - Support services revenue
- Implementation and consulting revenue - iSell revenue
- Other fees such as hosting fees and hardware sales
Support contract revenue is recognised at a point in time as the services are delivered.
The contract is between the customer and Enprise, as principal.
Revenue from providing support services is recognised in the accounting period in
which the services are rendered. Revenue is calculated based on time and cost
incurred, a fixed monthly charge or a combination of both.
Recognition is determined based on the contract with the customer. This can be:
- actual labour hours spent to resolve the query,
- an agreed monthly charge plus actual labour hours spent to resolve the query not
covered by the monthly agreed charge, or
- an agreed monthly charge.
Customers are typically invoiced monthly when the job has been closed. Consideration
is payable when invoiced and corresponds directly to the performance completed to
date in respect to this revenue stream.
Software licence revenue under NZ IFRS 15 is recognised through an agency
arrangement and therefore the agency revenue margin is recognised in the statement of
comprehensive income. The revenue is calculated based on commission margin
percentages agreed between the Group and the third-party licenser.
The agency commission is recognised at a point in time when the customer gains
access to the software or is provided with continued use of the software, generally
through providing a code to enable continued access.
Customers are typically invoiced annually (but sometimes monthly) for recurring
software licences and commissions are recognised once the performance obligation has
been satisfied.
Revenue is recognised during the period in which the services have been rendered or
the goods supplied.
Services and support revenue
- Support contracts
iSell revenue - Other - Onboarding
fees
Revenue is recognised during the period in which the services have been rendered or
the goods supplied.
ExoHosted revenue
iSell revenue - Software
licence revenue legacy
system
Closure of
support query
or standing
ready to provide
support
Revenue is recognised throughout the licence period and in the period in which the
service occurs.
Customers are typically invoiced in arrears for usage rendered. The revenue is shown
as a contract asset on the balance sheet as the performance obligation has been met
and released to the statement of comprehensive income but the client has not yet been
invoiced. Clients invoiced annually are held on the balance sheet and the revenue
released monthly as the performance obligation occurs.
Other fees
Revenue is recognised at a point in time, and in the period in which the software has
been invoiced.
Customers are typically invoiced for a period of time for expected upcoming usage as
they are typically not yet able to use or be migrated to the new cloud system. Annual
charges for legacy system customers invoiced after 1 January 2021 comes with the
promise of a credit if the customer transitions to the new cloud system during the
invoiced period. Revenue with this promise is deferred and recognised monthly.
- Training
- Hardware
Revenue is recognised during the period in which the services have been rendered or
the goods supplied.
- Hosting
services
iSell revenue - Software
licence revenue cloud system
Revenue is recognised at a point and time when the solution has been delivered.
Revenue provided from services is recognised in the accounting period in which the
solution has been provided.
Recognition is determined based on the contract, either a fixed price or actual labour
hours spent. Revenue is recognised in full at the end of the project when go-live has
occurred.
Customers are typically invoiced throughout the project and consideration is payable
when invoiced. The invoiced amount is shown as a contract liability on the balance
sheet until such time as the performance obligation has been met and recognised in
revenue.
Services and support revenue
- Implementation and
consulting revenue
At completion of
data
conversions,
user
acceptance
testing (UAT) or
specific solution
provided.
Revenue stream
Performance
obligation
Timing of recognition
Initial access or
continued
access to the
software
Right to access
the software
Enterprise software licence
revenue
Each of the above streams delivered to customers are considered separate performance obligations, even though for practical
reasons they may be governed by a single legal contract with the customer. Revenue recognition for each of the above revenue
streams is as follows:
The Group's primary activity is providing software solutions within Australia and New Zealand. From these activities the Group
generates the following streams of revenue:
Right to use the
software
These financial statements should be read in conjunction with the Auditor's report.
17
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
3REVENUE (CONTINUED)
30 June 202430 June 2023
$'000$'000
#-
Revenue from enterprise software and licences
5,578 5,298
#-
Revenue from services and support
12,894 12,488
#-
Revenue from iSell
1,375 1,201
Revenue from hosting services
2,015 1,762
#-
Revenue from other fees
3 2
#- 21,865 20,751
Software and licencesServices and supportITQuoter RevenueExoHostedother fees
(a)Revenue by geographical location
30 June 2024
$'000$'000$'000$'000$'000$'000
#
New Zealand
1,926 3,883 201 750 2 6,762
#
Australia
3,652 9,011 987 1,265 1 14,916
#
EMEA*
- - 159 - - 159
#
North America
- - 28 - - 28
#
Asia
- - - - - -
#- 5,578 12,894 1,375 2,015 3 21,865
* Europe, Middle East and Africa
30 June 2023
$'000$'000$'000$'000$'000$'000
#
New Zealand
1,605 4,379 179 703 2 6,868
#
Australia
3,693 8,109 850 1,059 - 13,711
#
EMEA*
- - 154 - - 154
#
North America
- - 16 - - 16
Asia
- - 2 - - 2
#- 5,298 12,488 1,201 1,762 2 20,751
(b)Revenue by operating segment
30 June 202430 June 2023
$'000$'000
Recurring revenue from enterprise software licences
4,739 4,481
Contracted revenue from hosting and support agreements
4,787 4,171
Revenue from other services
10,928 10,849
20,454 19,501
- -
30 June 202430 June 2023
$'000$'000
Recurring revenue from iSell software licences
1,178 1,097
Revenue from other services
197 104
1,375 1,201
- -
30 June 202430 June 2023
$'000$'000
Revenue from services
36 49
36 49
Critical accounting judgements and estimates
The group does not expect to recognise any revenue on existing contracts outside the 12 months post year end.
Revenue from
other fees
iSell
Revenue from
iSell
Total
Revenue from
software and
licences
Revenue from
services and
support
Revenue from
software and
licences
Revenue from
services and
support
Some contracts include multiple deliverables, such as software licences and implementation services. However, because the
implementation does not include material customisation to the software and could be provided by another party, the implementation
services are accounted for as a separate performance obligation from software licences. In this case, the transaction price will be
allocated to each performance obligation based on the standalone selling prices.
Revenue from
other fees
Revenue from
hosting
services
Revenue from
hosting
services
Total
Kilimanjaro Consulting
Revenue from
iSell
Corporate
These financial statements should be read in conjunction with the Auditor's report.
18
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
4OTHER INCOME
(a)Other operating income
Dividend income
30 June 202430 June 2023
$'000$'000
Research and development tax credit
88 -
Dividend income
1 -
#- 89 -
5OPERATING EXPENSES
(a)Other gains and losses
30 June 202430 June 2023
$'000$'000
Net gain/(loss) on provisions
142 -
Net foreign exchange gains/(losses)
(29) (77)
#- Other gains/(losses)113 (77)
(b)Finance income and costs
Interest income
Interest expense
30 June 202430 June 2023
$'000$'000
Finance income
Interest from financial assets held for cash management purposes
6 5
Interest from loans to related parties
- 14
Interest from other loans and receivables
2 1
8 20
Finance costs
Interest on bank overdrafts and loans
(127) (161)
Interest on lease liabilities
(84) (78)
(211) (239)
#- Net finance income and costs(203) (219)
Interest costs are expensed in the period in which they are incurred.
Dividend income is recorded in the profit or loss when the Group's right to receive the dividend is established.
Interest income is recognised in the statement of comprehensive income using the effective interest method. The effective interest
method calculates the amortised cost of a financial asset or liability and allocates the interest income over the relevant period.
These financial statements should be read in conjunction with the Auditor's report.
19
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
5OPERATING EXPENSES (CONTINUED)
(c)Other operating expenses
Low-value and short-term lease costs
30 June 202430 June 2023
$'000$'000
Advertising and marketing
362 338
Amortisation
976 1,965
Auditors' remuneration
178 136
Bad and doubtful debts expense
- 120
Communications
147 161
Depreciation
765 840
Hosting costs
1,202 1,351
Insurance
94 86
Legal fees
271 330
Low-value and short-term lease costs
177 141
Professional services
100 134
Subcontractors
621 662
Travel expenses
272 245
Other operational expenses
1,185 894
#- 6,350 7,403
30 June 202430 June 2023
$'000$'000
Amortisation of software (note 17)733 1,719
Amortisation of customer relationships (note 17)178 181
Amortisation of intellectual property (note 17)65 65
976 1,965
- -
30 June 202430 June 2023
$'000$'000
For auditing the Group financial statements
RSM Hayes Audit- 31
UHY Haines Norton176 103
Other Services
Audit of iSell Philippines (R.P. Mora Accounting and Law Office)2 2
178 136
- -
30 June 202430 June 2023
$'000$'000
Bad debts recognised23 1
Bad debts recovered- -
Changes in provision for bad and doubtful debts(23) 119
- 120
- -
30 June 202430 June 2023
$'000$'000
Property plant and equipment (note 16)204 234
Right-of-use assets (note 18)561 606
765 840
- -
(d)Employee benefit expense
30 June 202430 June 2023
$'000$'000
Wages and salaries
14,809 14,668
Superannuation
1,114 1,028
Directors fees
92 88
#- 16,015 15,784
Leases that are not classified as a right-of-use asset have been classified as low-value and short-term leases. Payments associated
with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term
leases are leases with a lease term of 12 months or less. Low-value assets comprise of IT equipment and small items of office furniture.
Other operating expenses include
(iv) Depreciation
(ii) Auditors' remuneration
(iii) Bad and Doubtful Debts
(i) Amortisation and impairment
These financial statements should be read in conjunction with the Auditor's report.
20
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
6TAXATION
(a)Income tax recognised in profit or loss
Temporary differences that can reasonably be foreseen in the next accounting period have been recognised as a deferred tax asset.
30 June 202430 June 2023
$'000$'000
Current tax
Current tax on profits for the year
- -
Adjustments for current tax on prior periods
- -
Total current tax expense
- -
Total deferred tax expense/(benefit)
(373) 904
- Total income tax expense/(benefit)(373) 904
(b)Reconciliation of income tax expense to prima facie tax payable
30 June 202430 June 2023
$'000$'000
Profit before income tax
(419) (9,848)
Tax at the New Zealand domestic tax rate of 28%
(117) (2,757)
Adjusted for the tax effect of:
Non deductible expenses
195 637
Non assessable income
(3) -
Difference in overseas tax rates
35 (29)
Impairment of intangible assets
(82) 1,900
Reversal of previously recognised tax losses
- 783
Other unrecognised timing differences and tax losses
(401) 370
Total deferred tax expense/(benefit)
(373) 904
-
- Total income tax expense/(benefit)(373) 904
(c) Current tax assets and liabilities
30 June 202430 June 2023
$'000$'000
Current tax assets
Income tax refundable/(payable)
1 24
#- 1 24
Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to be recovered.
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid
to the taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the reporting date.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all
taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences and unutilised tax losses to
the extent that it is probable that taxable profits will be available against which those deductible temporary differences and unutilised
tax losses can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial
recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.
These financial statements should be read in conjunction with the Auditor's report.
21
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
6TAXATION (CONTINUED)
(d)Deferred tax balances
30 June 202430 June 2023
$'000$'000
The balance comprises temporary differences attributable to:
Future benefit of losses incurred
- -
Future benefit of provisions and accruals
217 234
Employee benefits
576 453
Contract liabilities
297 250
Lease liabilities
620 330
#-
Total deferred tax asset
1,710 1,267
30 June 202430 June 2023
$'000$'000
The balance comprises temporary differences attributable to:
Customer relationships
(19) (58)
Contract asset
(145) (155)
Future liability of provisions and accruals
- (204)
Right-of-use asset
(575) (293)
#-
Total deferred tax liability
(739) (710)
Movements
$'000$'000$'000$'000$'000
At 1 July 2022
35 (99) 783 822 1,541
(Charged)/credited
to profit or loss
2 41 (783) (244) (984)
#
At 30 June 2023
37 (58) - 578 557
- - - -
Movements
$'000$'000$'000$'000$'000
At 1 July 2023
37 (58) - 578 557
(Charged)/credited
to profit or loss
8 39 - 367 414
#
At 30 June 2024
45 (19) - 945 971
- - - -
Critical accounting judgements and estimates
(e) Imputation credits available for use
30 June 202430 June 2023
$'000$'000
New Zealand imputation credits available
1 10
The Group has recognised a deferred tax asset on its statement of financial position as at the reporting date. Significant judgement is
required in determining if the utilisation of deferred tax assets is probable. The recognition of deferred tax assets is based upon
whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of
temporary differences can be deducted. To determine the future taxable profits, reference is made to the latest forecasts of future
earnings of the Group. Where the temporary differences are related to losses, relevant tax law is considered to determine the
availability of the losses to offset against the future taxable profits.
Judgement is required to assess the deferred tax asset in relation to losses available. The balance represents the reasonable benefit
that the Group is expected to utilise in the next two financial years. The Directors have not recognised the benefit of unutilised tax
losses beyond two years due to uncertainty with regards to future shareholder continuity. This assessment was determined based on
the budgeted profitability of the Group.
Customer
relationships
Right-of use
assets & lease
liabilities
Right-of use
assets & lease
liabilities
Subject to the provisions of the Income Tax Act 2007, the benefit of these credits may be passed to the shareholders as imputed tax paid
on future dividends.
Provisions
& accruals
inc employee
Tax lossesTotal
Customer
relationships
Tax lossesTotal
Provisions
& accruals
inc employee
Deferred tax liability
Deferred tax asset
Subject to the various income tax legislations being met the losses carried forward at 30 June 2024 are estimated to be $3,385,391 [NZ
$3,385,391; AU$nil] (last year: $5,024,567) of which $nil has been recognised as a deferred tax asset (last year: $nil). Deferred tax
losses are not recognised in relation to iSell Pty Limited, which has an estimated AU$4,067,132 of losses to carry forward (last year:
AU$4,860,965).
These financial statements should be read in conjunction with the Auditor's report.
22
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
7EARNINGS PER SHARE
There are no instruments that could potentially dilute earnings per share.
30 June 202430 June 2023
Earnings for the purpose of basic and diluted earnings per share:
Net profit/(loss) attributable to shareholders ($'000)
(7) (10,279)
Weighted average number of ordinary shares for basic earnings per share (000s)
19,412 16,901
Basic and diluted earnings per share (cents)
(0.04) (60.82)
8TRADE AND OTHER RECEIVABLES
30 June 202430 June 2023
$'000$'000
Trade receivables
2,887 2,756
Related party receivable (note 22(d)).
4 3
Other receivables
560 1,057
Provision for impairment
(218) (241)
3,233 3,575
Prepayments
307 336
#- 3,540 3,911
Allowance for impairment loss
The average credit period on sales of licences and services is 40 days. No interest is charged on outstanding trade receivables.
Bad debts are written-off when they are considered to have become uncollectable.
The aging of the receivables and allowance for expected credit losses provided for above are as follows:
Expected credit loss rateCarrying amountAllowance for impairment
30 June 202430 June 202330 June 202430 June 202330 June 202430 June 2023
$'000$'000$'000$'000
0-30 days
1.0%1.0%
2,223 2,037
2220
31-60 days
5.0%5.0%
364 425
1821
61-90 days
50.0%50.0%
200 93
10047
+91 days
75.0%75.0%
104 204
78153
2,891 2,759 218 241
- - - -
30 June 202430 June 2023
$'000$'000
Balance at the beginning of the period(241) (122)
Additional provisions recognised3(125)
Receivables written off during the year206
#- Balance at the end of the period(218) (241)
The Group measures the loss allowance on the balance of trade receivables at an amount equal to lifetime expected credit losses
(ECL). The ECL on trade receivables are estimated using a provision matrix referring to past default experience of the debtors and an
analysis of the debtors' current financial position, adjusted for factors that are specific to the debtors, general economic conditions in
which the debtors operate and an assessment of both the current and forecast direction of conditions at the reporting date.
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Company by the weighted average
number of shares on issue during the year. Diluted earnings per share assumes conversion of all dilutive potential ordinary shares in
determining the denominator.
Trade and other receivables are recognised at cost less any provision for impairment. All trade and other receivables have been
classified as current assets.
Movements in the provision for impairment loss were as follows:
These financial statements should be read in conjunction with the Auditor's report.
23
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
9CONTRACT ASSETS
30 June 202430 June 2023
$'000$'000
#-
Contract assets
635 669
The reconciliation of the values at the beginning and end of the current and previous financial year are set out below:
30 June 202430 June 2023
$'000$'000
Balance at the beginning of the period
669831
Transfer from contract assets to expenses
(669)(831)
Costs incurred for work performed but not yet recognised
635669
Balance at the end of the period635 669
10OTHER ASSETS
30 June 202430 June 2023
$'000$'000
#- Security deposits364 36
Classified as
Current - -
Non-current364 36
364 36
11TRADE AND OTHER PAYABLES
30 June 202430 June 2023
$'000$'000
Trade payables
1,336 1,516
Related party payables (note 22(d)).
11 19
Payroll taxes and other statutory liabilities
753 658
Other payables and accruals
1,282 1,237
#- 3,382 3,430
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The
amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities
unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest method.
A contract asset is recognised for amounts relating to services rendered but not yet recognised. The costs recognised as contract
assets are released to the statement of comprehensive income when the related revenue for the contract is released.
These financial statements should be read in conjunction with the Auditor's report.
24
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
12PROVISIONS
Wages, salaries, annual leave, long service leave
30 June 202430 June 2023
$'000$'000
#Employee benefits
2,2192,180
Leasehold make good provision
154161
#- 2,373 2,341
Classified as
#- Current 2,063 1,985
#- Non-current310 356
#- 2,373 2,341
13CONTRACT LIABILITIES
30 June 202430 June 2023
$'000$'000
Contract liabilities
1,724 1,452
Deposits from customers
231 237
#- Contract liabilities1,955 1,689
The reconciliation of the values at the beginning and end of the current and previous financial period are set out below:
30 June 202430 June 2023
$'000$'000
Balance at the beginning of the period
1,6892,582
Decrease due to revenue recognised from performance obligations satisfied
(1,689)(2,582)
Invoices raised for work performed but not yet recognised
1,9551,689
Balance at the end of the period1,955 1,689
Liabilities for wages and salaries, including non-monetary benefits, and annual leave are recognised in respect of employees’ services
up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities recognised
in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to
be made by the Group in respect of services provided by employees up to the reporting date.
A contract liability is recognised for amounts received or due relating to services performed or expected to be performed. The Group's
revenue recognition policy is stated at Note 3 which details when each class of revenue is released to the profit and loss.
These financial statements should be read in conjunction with the Auditor's report.
25
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
14INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
30 June 202430 June 2023
$'000$'000
Carrying amount at the beginning of the period912 285
New investment in joint ventures and associates- 957
-
Equity earnings/(losses) from associates and joint ventures
(220) (330)
#-
Other gains/(losses) related to associates and joint ventures
9 -
#- 701 912
30 June 202430 June 2023
$'000$'000
Investment in equity accounted joint venture
Datagate Innovation Limited701 912
#- 701 912
(a)Joint ventures and associates
Percentage ownership
30 June 202430 June 2023
Datagate Innovation LimitedNew ZealandSoftware sales32.92 32.96
The Group's joint venture and associates at 30 June 2024 are set out below. The country of incorporation or registration is New Zealand,
their principal places of business are New Zealand and North America.
Investments in joint ventures and associates are accounted for using the equity method and are measured in the statement of financial
position at cost adjusted for the Group's share of the profit or loss and other comprehensive income of the associate or joint venture.
Goodwill relating to associates and joint ventures is included in the carrying amount of the investment.
If the carrying amount of the equity accounted investment exceeds its recoverable amount, it is written down to the latter. When the
Group's share of accumulated losses in an associate or joint venture equals or exceeds its carrying value, the Group does not recognise
further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.
The requirements of NZ IAS 36 are applied to determine whether it is necessary to recognise any impairment loss with respect to the
Group’s investment in an associate or a joint venture. When necessary, the entire carrying amount of the investment (including goodwill)
is tested for impairment in accordance with NZ IAS 36 as a single asset by comparing its recoverable amount (higher of value in use and
fair value less costs of disposal) with its carrying amount. Any impairment loss recognised is not allocated to any asset, including goodwill
that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with NZ IAS
36 to the extent that the recoverable amount of the investment subsequently increases.
Principal Activity
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the
joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about
the relevant activities require unanimous consent of the parties sharing control.
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture.
Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies.
On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of the
net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying
amount of the investment.
Carrying amount of joint ventures and associates
Country of
incorporation
Name of Entity
Investment by joint venture or associate
These financial statements should be read in conjunction with the Auditor's report.
26
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
14INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (CONTINUED)
(b)Summary financial information
30 June 202430 June 2023
$'000$'000
Net assets/(liabilities)(113)227
Proportion of the Group's ownership interest in the equity accounted investment(37)75
Goodwill738837
Carrying amount of the Group's interest in the equity accounted investment701 912
30 June 202430 June 2023
$'000
$'000
Assets and liabilities of joint ventures are as follows:
Current assets
696 1,032
Non-current assets
17 18
Current liabilities
(388) (388)
Non-current liabilities
(438) (435)
(113) 227
Results of equity accounted investment
Revenue
3,928 3,169
Losses after taxation
(687) (1,032)
Total comprehensive income
(687) (1,032)
Group share of loss(221) (330)
The Enprise Group recorded the following within its statement of comprehensive income for the period related to Datagate :
Gain on dilution9 -
Share of operating loss(221) (330)
Total recognised within the group's profit(212) (330)
30 June 202430 June 2023
$'000
$'000
Balance sheet
Cash and cash equivalents
177 586
Trade and other receivables
513 444
Trade and other creditors
(124) (388)
Property, plant and equipment
16 16
Intangible assets
2 2
Profit and loss
Depreciation and amortisation
6 25
Interest income
(20) (10)
Interest expense
3 -
Income tax expense or benefit
- -
Datagate Innovation Limited (Datagate) is a software company which provides online billing solutions for telecommunication services and
other usage based services.
Datagate Innovation Limited
Datagate is a limited liability company whose legal form confers separation between the shareholders and the company itself. Datagate is
governed by a Shareholder Agreement. The Shareholders Agreement states that at least 75% of the board of directors are required to
approve all relevant activities. Up to March 2021, Enprise had the ability to appoint one out of three directors and therefore previously
had joint control. Furthermore, the parties to the joint arrangement have rights to the net assets of the arrangement on wind up. As a
result of an additional director being appointed to the Board in March 2021, Enprise is no longer considered to have joint control, but
retains significant influence over this investment. The investment remains accounted for under the equity method.
The Board is comfortable that there is no impairment to the carrying value of Datagate. Recent share trades at $2.80 per share would
value Datagate at $20,509,073 (last year: $2.486 per share totalling $18,182,492). Enprise's share would have an implied value of
$6,750,867 (last year: $5,993,806) which would be substantially higher than the carrying value. If the Board decided to liquidate this
asset the recovery is expected to be significantly higher than the carrying value.
Summary of joint venture's financial statements
Other key financial information
Datagate has been involved in a number of capital raising events, the last being in November 2022 where the Group acquired an
additional 92,610 shares. No further shares were acquired during this financial year.
These financial statements should be read in conjunction with the Auditor's report.
27
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
15INVESTMENTS IN OTHER ENTITIES
30 June 202430 June 2023
$'000$'000
Carrying amount at the beginning of the year452 627
#- Changes in fair value of other investments- (175)
#- 452 452
30 June 202430 June 2023
$'000$'000
#- Vadacom Holdings Limited452 452
Range of inputs
20242023
Recurring revenue ($'000)2,297 2,276
Non recurring revenue ($'000)761 897
Recurring revenue multiple2.77x3.05x
1.00x1.00x
Carrying amount of investments in other entities
Non recurring revenue
multiple
Relationship of unobservable inputs to fair value
Increasing recurring revenue, non recurring revenue, the recurring
revenue multiple, and the non recurring revenue multiple each by
5% would increase fair value by $46,370 (last year: 5%; $51,020).
Lowering each of the above inputs by 5% would decrease fair value
by $44,100 (last year: 5%; $48,530).
During the 2021 financial year Vadacom Limited purchased back shares through a share buy back. Enprise considers this repayment a
recovery of part of the cost of the investment. The balance of the buyback was repaid during this financial year.
The Group has made a decision to adopt NZ IFRS 9 to measure the equity investment in Vadacom Holdings Limited at fair value through
other comprehensive income (FVOCI).
Management continues to hold the assets for the medium to long term and the assets are therefore recognised as non-current. The
Group revalued the investments at fair market value at the end of the financial year.
At 30 June 2024, the shares in Vadacom Holdings Limited have been valued at $9.55 (last year: $9.55) resulting in no change in value
(last year: loss of $175,365). Gains/losses are recognised as other comprehensive income when they occur.
In November 2017, the Group acquired a 6.49% shareholding in Vadacom Holdings Limited, a cloud based VOIP phone and virtual PABX
provider. Subsequent changes in shares since has resulted in a reduction of Enprise's shareholding to 6.35% at balance date.
The table below summarises the quantitative information about the significant unobservable inputs used in this level 3 fair value
measurement.
Unobservable inputs
These financial statements should be read in conjunction with the Auditor's report.
28
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
16PROPERTY PLANT AND EQUIPMENT
Computer equipment20-50%
Furniture and fittings10-50%
Office equipment10-50%
$'000$'000$'000$'000
At 1 July 2022
Cost622 297 143 1,062
Accumulated depreciation(387) (219) (108) (714)
Net book value235 78 35 348
Period ended 30 June 2023
Opening net book value amount235 78 35 348
Additions183 62 - 14 259
Depreciation charge(85) (119) (14) (16) (234)
Foreign exchange gain/(loss)- 16 - (1) 15
Closing net book value98 194 64 32 388
At 30 June 2023
Cost183 700 295 156 1,334
Accumulated depreciation(85) (506) (231) (124) (946)
- Net book value98 194 64 32 388
Year ended 30 June 2024
Opening net book value amount98 194 64 32 388
Additions108 88 - 6 202
Disposals- (3) - - (3)
Depreciation charge(86) (92) (13) (13) (204)
Gain/loss on disposal- - - - -
Foreign exchange gain/(loss)(2) 2 - - -
Closing net book value118 189 51 25 383
At 30 June 2024
Cost137 787 295 162 1,381
Accumulated depreciation(19) (598) (244) (137) (998)
#Net book value118 189 51 25 383
- - - -
Total
Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Such
costs include the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is incurred. The cost is
recognised in the carrying amount of the plant and equipment as a replacement only if it is eligible for capitalisation. All other repairs and
maintenance are recognised in the statement of comprehensive income as incurred.
Computer
equipment
Furniture
and fittings
Office
equipment
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year end.
Leasehold
Improvement
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from
its use.
Depreciation on fixed assets is calculated using the diminishing value method to allocate their costs, net of their residual values over their
estimated useful lives as follows:
These financial statements should be read in conjunction with the Auditor's report.
29
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
17INTANGIBLE ASSETS
Goodwill
Customer relationships
Software
$'000$'000$'000$'000$'000
At 1 July 2022
Cost325 3,474 1,276 7,720 12,795
Accumulated amortisation and impairment(65) (688) (811) - (1,564)
Net book value260 2,786 465 7,720 11,231
Period ended 30 June 2023
Opening net book value amount260 2,786 465 7,720 11,231
Additions- 517 - - 517
Exchange differences- (42) (7) - (49)
Amortisation charge(65) (1,719) (181) - (1,965)
Impairment charge- (165) (128) (6,493) (6,786)
Closing net book value195 1,377 149 1,227 2,948
At 30 June 2023
Cost325 3,949 1,269 7,720 13,263
Accumulated amortisation and impairment(130) (2,572) (1,120) (6,493) (10,315)
- Net book value195 1,377 149 1,227 2,948
Year ended 30 June 2024
Opening net book value amount195 1,377 149 1,227 2,948
Additions- 524 - - 524
Exchange differences- 4 (1) - 3
Amortisation charge(65) (733) (178) - (976)
Impairment charge reversal- 165 128 - 293
Closing net book value130 1,337 98 1,227 2,792
At 30 June 2024
Cost325 4,477 1,268 7,720 13,790
Accumulated amortisation and impairment(195) (3,140) (1,170) (6,493) (10,998)
#Net book value130 1,337 98 1,227 2,792
"In-house" developed or acquired software costs are capitalised on completion and amortised on a straight-line basis over the period
of their expected benefit, being their finite life of 3-5 years. Employment costs associated with developing the software are capitalised
when the costs are incurred. The amount of the charges capitalised is based on the proportionate time each employee spends on
developing the software.
Intellectual
Property
Goodwill is assessed as having an indefinite useful life and is not amortised but is subject to impairment testing annually or whenever
there are indications of impairment.
The amortisation of the intangible asset, Software has been made which reflects the boards view that the estimated useful life of the
internally generated asset is 4 years not 10 years as used in financial statements up to and including 30 June 2022.
Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration paid above the fair value of the net
identifiable assets, liabilities and contingent consideration acquired.
Software
Customer
relationships
Goodwill
Intellectual property is pre-purchased developed software costs and amortised on a straight-line basis over the remaining period of
their expected benefit.
For the purpose of impairment testing, goodwill has been allocated to the cash-generating units (CGU). The impairment test is based
on either an estimated recoverable amount (value in use) or the fair value less costs. Estimated future cash flow projections are based
on the Group's five-year business plan for the business units.
Customer relationship costs are carried at cost (being assessed from value on acquisition) less accumulated amortisation and
accumulated impairment losses. This intangible asset has been assessed as having a finite life and is amortised using the straight line
method over a period of 5 years. The amortisation has been recognised in the statement of comprehensive income within
depreciation and amortisation expense. If an impairment indication arises, the recoverable amount is estimated and an impairment
loss is recognised to the extent that the recoverable amount is lower than the carrying amount.
Total
These financial statements should be read in conjunction with the Auditor's report.
30
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
17INTANGIBLE ASSETS (CONTINUED)
Significant intangible assets held are as follows:
Carrying amount
$'000
Customer relationships - Kilimanjaro Consulting Pty Limited76 6 months
Customer relationships - iSell Pty Limited22 11 months
Software - ITQuoter1,237 12-48 months
Intellectual Property130 24 months
30 June 202430 June 2023
$'000$'000
Kilimanjaro Consulting - New Zealand
1,227 1,227
Kilimanjaro Consulting - Australia
- -
iSell
- -
#- 1,227 1,227
(a)Impairment Testing - Kilimanjaro
Australian cash generating unit
30 June 202430 June 2023
Recoverable amount 6,065 270
Carrying amount 1,729 5,869
Impairment - (5,599)
Key assumptionValueBasis for determining value assigned to key assumptions
Growth rate5.40%
Weighted average cost of capital (WACC)13.47%
Growth rate4.77%Decrease by 3%No impairment loss
Weighted average cost of capital (WACC)12.04%Increase by 1%Decrease in recoverable amount by $62,740
An assessment of the fair value of the Kilimanjaro cash generating units (CGU's) was conducted at year end, for the purpose of
considering the fair value less cost of disposal of the CGU. The Level 3 fair value estimate was lower than the carrying value of the
Kilimanjaro AU cash generating unit, but higher than the NZ cash generating unit. Information pertaining to each CGU is presented
below.
The valuation technique has been adjusted from a earnings multiple valuation methodology in the years up to and including 30 June
2022, to a discounted cash flow methodology in the previous and current year. This revised methodology was adopted to more
accurately capture expected future changes in the various revenue streams of the entity, and their divergent impact on profitability.
Reasonably
possible change
Remaining
amortisation period
The details below summarises the quantitative information about the significant unobservable inputs used in this level 3 fair value
measurement.
The discounted cash flow valuation used to determine the CGU's recoverable amount in the current period uses 5 years of projected
cash flows and a terminal value.
Current
value
The carrying amounts of goodwill allocated to the cash generating units are outlined below:
Determined based on historical trend growth and management's future
expectations
Determined primarily based on external sources of information, adjusted
for entity specific risks.
Sensitivity analysisImpact of change
These financial statements should be read in conjunction with the Auditor's report.
31
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
17INTANGIBLE ASSETS (CONTINUED)
(a)Impairment Testing - Kilimanjaro
New Zealand cash generating unit
Key assumptionValueBasis for determining value assigned to key assumptions
Growth rate3.40%
Weighted average cost of capital (WACC)11.72%
Sensitivity analysis
Current valueReasonably possible change
Growth rate3.40%No reasonably possible change which would cause an impairment loss
Weighted average cost of capital (WACC)11.72%No reasonably possible change which would cause an impairment loss
(b)Impairment Testing - iSell Pty Limited
30 June 202430 June 2023
Recoverable amount 2,101 2,039
Carrying amount 1,259 3,620
Impairment - (1,581)
The table below summarises the quantitative information about the significant inputs used in this level 2 fair value measurement.
Key assumption
ValueBasis for determining value assigned to key assumptions
Value per share
A$0.12Determined based on the latest capital raise
Sensitivity analysis
Impact of change
Value per share
A$0.12Decrease by 10%No impairment loss
The table below summarises the quantitative information about the significant unobservable inputs used in this level 3 fair value
measurement.
Determined based on historical trend growth and management's future
expectations
Determined primarily based on external sources of information, adjusted
for entity specific risks.
Current
value
Reasonably
possible change
The valuation technique has been adjusted from a earnings multiple valuation methodology in the prior year to a comparable sales
methodology in the current year. This revised methodology was adopted as a capital raising conducted after year end provided more
direct and comparable valuation evidence as to the value of iSell shares.
An independent assessment of the fair value of the iSell cash generating unit (CGU's) was conducted at 30 June 2023, for the purpose of
considering the fair value less cost of disposal of the CGU. The Level 2 fair value estimate was lower than the carrying value of the cash
generating unit. Information pertaining to each CGU is presented below.
These financial statements should be read in conjunction with the Auditor's report.
32
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
18RIGHT-OF-USE ASSETS
PropertyTotal
$'000$'000
At 1 July 2022
Cost2,296 2,296
Accumulated depreciation(956) (956)
Net book value1,340 1,340
Year ended 30 June 2023
Opening net book value amount1,340 1,340
Additions373 373
Exchange differences(9) (9)
Depreciation charge(606) (606)
Closing net book value1,098 1,098
At 30 June 2023
Cost2,648 2,648
Accumulated amortisation and impairment(1,550) (1,550)
#Net book value1,098 1,098
Year ended 30 June 2024
Opening net book value amount1,098 1,098
Additions1,677 1,677
Exchange differences18 18
Depreciation charge(561) (561)
#Closing net book value2,232 2,232
At 30 June 2024
Cost3,617 3,617
Accumulated amortisation and impairment(1,385) (1,385)
#Net book value2,232 2,232
Changes to leases during the year were as follows:
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12
months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
Kilimanjaro Consulting Pty Limited entered into a 76 month lease at 100 Arthur Street, North Sydney. This lease takes over from the
previous occupancy at Walker Street. The lease includes a four month rent free period with an additional rental incentive for fitout,
with any unused portion to be amortised over the remaining life of the lease.
Kilimanjaro Consulting Pty Limited entered into a 25 month lease at 10 Darcy Street, Paramatta. This lease takes over from the
previous Paramatta site.
Kilimanjaro Consulting Limited entered into a new 3 year lease at 276 Lambton Quay in Wellington. This occupancy was formally a
sub-lease, Kilimanjaro is now the main tenant on this lease.
From 1 April 2019, leases are recognised as a right-of-use asset and a lease liability at the lease commencement date.
The Group's right-of use assets consist only of property leases which up until 31 March 2019 were classified as operating leases.
Payments made under operating leases (net of any incentives received from the lessor) were charged to profit or loss on a straight-line
basis over the period of the lease.
No other leases came up for renewal during the year, there are no leases that require negotiation or renewal during the upcoming
financial year.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset,
whichever is the shorter. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the
initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any
lease incentives received, and any initial direct costs incurred by the lease.
These financial statements should be read in conjunction with the Auditor's report.
33
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
19BORROWINGS
Cash on hand and at bank
#- For the purposes of the statement of cash flows, cash and cash equivalents consist of cash on hand and at bank.
Borrowings
30 June 202430 June 2023
$'000$'000
Current cash on hand / (borrowings)
#-
Cash on hand and at bank
1,737 1,178
Bank overdraft
- (949)
Cash and cash equivalents
1,737 229
-
Bank borrowings
(407) (1,147)
-
Other borrowings
- -
Current net cash equivalents (borrowings)
1,330 (918)
Non-current borrowings
Bank borrowings - non current
(242) -
Other borrowings - non current
- -
#-
Non-current borrowings
(242) -
Net cash on hand1,088 (918)
(a)Summary of borrowing arrangements
- An overdraft facility of $1,000,000
(b)Reconciliation of liabilities arising from financing activities
$'000$'000$'000
At 1 July 2022812 41 1,465
Non-cash changes- - 373
Financing cash inflows723 - -
Financing cash outflows(388) (42) (595)
Exchange differences- 1 (11)
#
Balance as at 30 June 2023
1,147 - 1,232
Non-cash changes- - 1,677
Financing cash inflows- - -
Financing cash outflows(498) - (532)
Exchange differences- - 20
#Balance as at 30 June 2024649 - 2,397
- - -
- A commercial loan of $947,680 of which $200,000 is available to redraw at 30 June 2024 (last year: $nil). The loan matures on
24 April 2026 and requires quarterly principal payments of $98,720. The bank's debt is secured by PPSR over all the assets of
Enprise Group Limited, Kilimanjaro Consulting Pty Limited and Kilimanjaro Consulting Limited.
Cash and cash equivalents in the statement of financial position are comprised of cash at bank and in hand and short term deposits
with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the net proceeds and the redemption amount is recognised in the profit and loss over the
period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12 months after the balance date.
The 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:
The Bank of New Zealand (BNZ) has provided the following facilities to Enprise Group Limited:
Bank
borrowings
Other
borrowings
Lease liabilities
These financial statements should be read in conjunction with the Auditor's report.
34
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
20LEASE LIABILITIES
30 June 202430 June 2023
$'000$'000
#- Lease liabilities2,397 1,232
Classified as
#- Current 203 498
#- Non-current2,194 734
#- 2,397 1,232
(a)Remaining contractual cash flows
Maturity analysis of the contractual undiscounted cash flows are as follows:
30 June 202430 June 2023
$'000$'000
Not later than one year 383 551
Later than one year but not later than 5 years2,094 821
Later than 5 years 532 -
3,009 1,372
(b)Amounts recognised in statement of comprehensive income
30 June 202430 June 2023
$'000$'000
Interest on lease liabilities84 78
Expenses relating to short term leases177 146
261 224
(c)Amounts recognised in statement of cash flows
30 June 202430 June 2023
$'000$'000
Interest element of lease payments
84 78
Cash outflows recognised within cash flows from financing activities
Principal elements of lease payments
532 595
- -
(d)Critical accounting judgements and estimates
Lease Term
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future
lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the
Group estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-
use asset, with similar terms, security and economic environment.
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the
lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be
readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives
receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees,
exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination
penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Cash outflows recognised within cash flows from operating activities
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a
change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty
of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of
use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is exercised
in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be
exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In
determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option, or not to
exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the
asset to the Group's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties;
existence of significant leasehold improvements; and the costs and disruption to replace the asset. The Group reassesses whether it is
reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant
change in circumstances.
These financial statements should be read in conjunction with the Auditor's report.
35
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
21EQUITY
(a)Share capital
Number of authorised sharesShare capital
Contributed equity - ordinary shares
30 June 202430 June 202330 June 202430 June 2023
sharesshares$'000$'000
Opening ordinary shares17,430,061 16,157,699 12,080 11,010
Rights issue2,637,996 1,210,662 1,312 1,017
Staff share issue- 61,700 - 53
#- 20,068,057 17,430,061 13,392 12,080
(b)Dividends
30 June 202430 June 202330 June 202430 June 2023
cents per sharecents per share$'000$'000
Final dividend for the period ended 30 June 2022- - - -
Interim dividend for the period ended 30 June 2023- - - -
Final dividend for the period ended 30 June 2023- - - -
Interim dividend for the period ended 30 June 2024- - - -
#- - - - -
22RELATED PARTY TRANSACTIONS
(a)Interest in other entities
(b)Ultimate parent
The ultimate parent entity and controlling party is Enprise Group Limited. The Parent is domiciled in New Zealand.
(c)Transactions with related parties
During the period, the Group entered into the following trading transactions with related parties.
Sale of services Purchase of services
Name of entity
30 June 202430 June 202330 June 202430 June 2023
$'000$'000$'000$'000
Vadacom Limited*42 36 - -
Next Telecom*- - 30 35
Datagate Innovation Limited- 13 - -
42 49 30 35
* Vadacom Limited and Next Telecom Limited are subsidiaries of Vadacom Holdings Limited
(d)Outstanding balances arising from sales/purchases of goods and services
The following balances are outstanding at the end of the reporting period in relation to transactions with related parties.
Amounts owed by related partiesAmounts owed to related parties
Name of entity
30 June 202430 June 202330 June 202430 June 2023
$'000$'000$'000$'000
Next Telecom Limited- - 3 7
Vadacom Limited4 3 - -
Ridgway Investments (Aaron Ridgway)- - 2 -
The Sales Factory (Nicholas Paul)- - 4 -
Global CFO Solutions (Anessha Varghese-Cowan)- - 2 -
Nightingale Partners (Lindsay Phillips)- - - 12
4 3 11 19
All shares on issue are fully paid. All ordinary shares rank equally with one vote attached to each fully paid ordinary share and have
equal dividend rights and no par value.
On 29 September 2023, the group issued 2,637,996 shares under the rights issue at $0.50 per share.
The Group's principal subsidiaries are set out in note 1(d). Unless otherwise stated, they have share capital consisting solely of ordinary
shares that are held directly by the Group. The country of incorporation or registration is also their principal place of business.
Share capital comprises of ordinary shares only. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
These financial statements should be read in conjunction with the Auditor's report.
36
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
22RELATED PARTY TRANSACTIONS (CONTINUED)
(e)Loans to/from related parties
Amounts owed by related partiesAmounts owed to related parties
Name of entity
30 June 202430 June 202330 June 202430 June 2023
$'000$'000$'000$'000
Vadacom Holdings Limited- 32 - -
- 32 - -
#- Current- - - -
Non-Current- 32 - -
- 32 - -
(f)Key management personnel
Key management compensation to directors of the Group was as follows:
30 June 202430 June 2023
$'000$'000
Salaries, bonuses and commissions550 517
Superannuation41 36
Other long term employee benefits5 8
Consultancy fees- -
Directors' fees92 88
688 649
Key management did not receive any termination benefits during the period (last year: nil).
Key management received post-employment or long term benefits of $46,794 (last year: $43,146).
(g)Directors' fees
Directors received director's fees as detailed below:
30 June 202430 June 2023
$'000$'000
L Phillips25 25
G Cooper- -
N Paul40 35
R Baskind- -
M Fong- 13
Dr A Varghese-Cowan25 15
A Ridgway2 -
#- 92 88
Under the company’s constitution, directors may be paid a fee for ordinary services performed as a director. The maximum amount of
remuneration that may be paid to non-executive directors has been set at $150,000 and this may only be increased with the prior
approval from the company at a general meeting. This remuneration may be divided among the non-executive directors in such fashion
as the board may determine.
The following balances are outstanding at the end of the reporting period.
These financial statements should be read in conjunction with the Auditor's report.
37
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
23SUBSIDIARIES WITH NON CONTROLLING INTERESTS
iSell Pty Limited
Transactions with non-controlling interests recognised in equity
$'000 $'000 $'000
Purchase from non-controlling interests- - -
Proceeds from rights issue in iSell Pty Limited to non-controlling interests291 36 327
Total transactions with non-controlling interests291 36 327
- -
(a)Summary of financial position
30 June 202430 June 2023
$'000$'000
Assets
Cash and cash equivalents
43 44
Trade and other receivables
118 73
Contract assets
74 68
Staff receivables - non current
26 -
Property plant and equipment
26 39
Intangible assets
1,259 1,385
Deferred tax asset
5 4
Other non-current assets
5 5
Total assets1,556 1,618
Liabilities
Trade and other payables
(153) (445)
Contract liabilities
(297) (175)
Provisions - non-current
(211) (201)
Related party payable
(693) (1,175)
Total liabilities(1,354) (1,996)
Net assets202 (378)
(b)Summary of financial performance
30 June 202430 June 2023
$'000$'000
Revenue from contracts with customers
1,375 1,201
Employee expense
(360) (541)
Other operating costs
(1,327) (2,402)
Other gains/(losses) - net
6 (12)
Finance cost - net
(1) (1)
Net profit/(loss)(307) (1,755)
Other comprehensive income
(21) 9
Total comprehensive income/(loss)(328) (1,746)
30 June 202430 June 2023
24.75% -27.49%
24.97% - 24.75%
$'000$'000
#Total comprehensive income/(loss) attributable to NCI(39) (473)
(c)Summary of statement of cash flows
Enprise Group Limited consolidates 100% of iSell's results and presents the portion of profit/(loss) and other comprehensive income
attributable to a non-controlling interest (NCI).
During the year iSell Pty Limited incurred total operating cash inflows of AU$128,960 (last year: outflows of AU$69,948) total investing
outflows of AU$407,742 (last year: outflows of AU$493,459) and total financing inflows of AU$276,000 (last year: inflows of AU$539,442).
Attributable to
the parent
Total
Non-
controlling
Enprise Group Limited acquired a controlling stake in iSell on 27 May 2020. Subsequent to this date, Enprise has purchased shares
from non controlling interests and engaged in rights issues that have changed Enprise's shareholding in iSell, ultimately resulting in a non-
controlling interest percentage of 27.49% at 30 June 2024 (last year: 24.75%).
These financial statements should be read in conjunction with the Auditor's report.
38
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
24CASH FLOW RECONCILIATION
30 June 202430 June 2023
$'000$'000
Profit/(loss)
(46) (10,752)
Adjustments for:
Depreciation on property plant and equipment
204 234
Depreciation clawback
(142) -
Depreciation on right-of-use assets
561 606
Amortisation on intangible assets
976 1,965
Net loss/(gain) on foreign exchange19 20
Impairment of intangible assets(293) 6,786
Share of loss from equity accounted investments211 330
Movement in current and deferred tax(373) 904
Movements in working capital
(Increase)/decrease in trade and other receivable
371 (826)
(Increase)/decrease in contract assets
34 95
(Increase)/decrease in income taxes receivable23 (43)
Increase/(decrease) in trade and other payables(47) 435
Increase/(decrease) in provisions32 133
Increase/(decrease) in contract liabilities266 (612)
#-
Net cash inflow/(outflow) from operating activities
1,796 (725)
-
25CONTINGENT LIABILITIES
There were no material contingent liabilities or assets at balance date (last year: nil).
26SUBSEQUENT EVENTS AFTER BALANCE DATE
Reconciliation of net profit to net cash flows from operations:
On 26 August 2024, the Group through its subsidiary Kilimanjaro Consulting, has acquired 52% of RECIPE Marketing Limited. RECIPE
marketing is an award winning HubSpot Platinum Solutions Partner practice specialising in strategic consulting and advanced application
solutions for front-office management and revenue operations providing further synergies within the Enterprise suite.
Enprise Group invested an additional $99,999 in the recent rights issue for Datagate. This resulted in an additional 35,714 shares being
issued on 30 August 2024.
Cash flows are included in the statement of cash flows on a gross basis and includes the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as part of operating cash
flows.
These financial statements should be read in conjunction with the Auditor's report.
39
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
27FINANCIAL RISK MANAGEMENT, OBJECTIVES AND POLICIES
(a)Interest rate risk
The local operational bank accounts do not earn interest.
ProfitEquity
30 June 202430 June 202330 June 202430 June 2023
$'000$'000$'000$'000
+1% (100 basis points)8 (6) 8 (6)
- 1% (100 basis points)(8) 6 (8) 6
(b)Credit risk
The Group does not hold any credit derivatives to offset its credit exposure.
(c)Liquidity risk
Contractual maturity analysisless than 6 mths6 - 12 months1 - 3 years> 3 yearsTotal
30 June 2024$'000$'000$'000$'000$'000
#
Trade and other payables3,382
- - - 3,382
Bank overdraft-
- - - -
Term loan407 - 242 - 649
Lease liabilities40 343 1,691 935 3,009
Total3,829 343 1,933 935 7,040
The Group’s exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying
amount of these instruments. Exposure at balance date is addressed in each applicable note. The carrying amount of financial assets
represents the maximum credit exposure.
The Group’s exposure to market interest rates relates primarily to the Group’s cash deposited in interest-bearing call accounts, the bank
overdraft and term loans. Interest rates are monitored although there is generally no significant variation in interest rates offered by the
different major banks.
At 30 June 2024, if interest rates had moved, as illustrated in the table below, with all other variables held constant, post-tax profit and
equity would have been affected as follows:
Management have reviewed the customer base for industry segments based on SIC codes and have evaluated the credit risk for each
segment. There are no significant concentrations of trade receivable counterparties.
Funds with financial institutions are held on call or short term deposits. The majority of funds are held across three major Australasian
trading banks all with a Standard and Poor's credit rating of AA-.
The Group trades only with recognised, creditworthy third parties and as such collateral is not requested nor is it the Group’s policy to
securitize its trade and other receivables.
Liquidity risk is the risk of an unforeseen event or miscalculation in the required liquidity level that will result in the Group foregoing
investment opportunities or not being able to meet its obligations in a timely manner, and therefore gives rise to lower investment income
or to higher borrowing costs than otherwise. Prudent liquidity risk management includes maintaining sufficient cash, and ensuring the
availability of adequate amounts of funding from credit facilities.
The table below analyses the Group's financial liabilities collated/grouped into relevant maturity bands, based on the remaining period
from balance date to the contractual maturity date.
It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures including an
assessment of their independent credit rating, financial position, past experience and industry reputation. Risk limits are set for each
individual customer in accordance with parameters set by the board. These risk limits are regularly monitored.
The Group manages its exposure to key financial risks, including interest rate, liquidity risk and currency risk in accordance with the
Group’s financial risk management policy. The objective of the policy is to support the delivery of the Group’s financial targets whilst
protecting future financial security.
The Board reviews and agrees policies for managing each of the risks identified below, foreign currency and interest rate risk, credit
allowances, and future cash flow forecast projections.
These financial statements should be read in conjunction with the Auditor's report.
40
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Notes to the Financial Statements
for the year ended 30 June 2024
27FINANCIAL RISK MANAGEMENT, OBJECTIVES AND POLICIES (CONTINUED)
(c)Liquidity risk (continued)
Contractual maturity analysisless than 6 mths6 - 12 months1 - 3 years> 3 yearsTotal
30 June 2023$'000$'000$'000$'000$'000
-
Trade and other payables3,430 -
- - 3,430
Bank overdraft949 -
- - 949
Term loan1,147 - - - 1,147
Lease liabilities277 274 496 325 1,372
Total5,803 274 496 325 6,898
(d)Financial instrument classification
30 June 202430 June 2023
$'000$'000
Financial asset at fair value through other comprehensive income452 452
Amortised cost
Cash and cash equivalents1,737 1,178
Trade receivables (excluding prepayments)3,233 3,575
Staff and related party receivables52 61
5,474 5,266
30 June 202430 June 2023
$'000$'000
Trade and other payables3,382 3,430
Borrowings407 2,096
3,789 5,526
(e)Foreign currency risk
Each entity in the Group conducts the majority of its transactions in its functional currency.
ProfitEquity
Australian dollars30 June 202430 June 202330 June 202430 June 2023
$'000$'000$'000$'000
+10% (1000 basis points)58 (127) 25 (42)
- 10% (1000 basis points)(58) 127 25 42
At 30 June 2024, if currency rates had moved, as illustrated in the table below, with all other variables held constant, post-tax profit and
equity would have been affected as follows:
The net exposure is not significant due to the size of the foreign operations and is mitigated by the regular transfer of small advances to
spread the currency risk over time. Although each subsidiary or geographic segment is subject to variations in foreign currency rates, the
value to each segment is not material.
The currency exposure of the Group arises from the effect of any substantial movements in currency rates on the transfer of funds
(predominantly in Australian dollars) to the local currency of the subsidiary to fund operations. The sensitivity analysis includes only
outstanding foreign currency denominated monetary items and adjusts their translation at year-end for a 1 per cent change in foreign
currency rates.
Financial liabilities at amortised cost
Financial assets
These financial statements should be read in conjunction with the Auditor's report.
41
Level | 1 York Street | Sydney | NSW | 2000
GPO Box 4137 | S ydney | NSW | 2001
t: +61 2 9256 6600 | f: +61 2 9256 6611
sydney@uhyhnsyd.com.au
www.uhyhnsydney.com.au
An association of independent Ƃ rms in Australia and New Zealand and a member
of UHY International, a network of independent accounting and consulting Ƃ rms.
UHY Haines Norton—ABN 85 140 758 156 NSWBN 98 133 826
Liability limited by a scheme approved under Professional Standards Legislation.
Passion beyond numbers
9
Independent Auditor’s Report
To the Shareholders of Enprise Group Limited
Opinion
I have audited the consolidated financial statements of Enprise Group Limited ( “the Company”) and
its subsidiaries (“the Group” ), which comprise:
• the consolidated statement of financial position as at 30 June 2024;
• the consolidated statement of comprehensive income, consolidated statement of changes in
equity and consolidated statement of cash flows for the year then ended; and
• the notes to the consolidated financial statements including a summary of significant
accounting policies.
I am a partner with UH Y Haines Norton Chartered Accountants Syd ney (the Firm ) and I have used the
staff and resources of the Firm to perform the audit of the Group.
In my opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as a t 30 June 2024, and its consolidated
financial performance and its consolidated cash flows for the year then ended in accordance with New
Zealand Equivalents to International Financial Reporting Standa rds ( “N Z IFRS” ) issued by the New
Zealand Accounting Standards Board.
Basis for Opinion
I conducted my audit in accordance with International Standards on Auditing (New Zealand) ( “ISAs
(N Z)” ) issued by the New Zealand Auditing and Assurance Standar ds Board. My responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of my report.
I am independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including Internati onal Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Boa rd and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code ), and I have fulfilled my other ethical
responsibilities in accordance with these requirements and the IESBA Code.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
opinion.
Other than in my capacity as auditor, neither myself, the firm or the firm’s staff have no relationship
with, or interests in, the Group.
Material uncertainty related to going concern
We draw attention to Note 1 in the consolidated financial statements, which indicates that the
Group incurred a loss of $0.05 million and had net current liab ilities of $2.1 million for the year
ended 30 June 2024. These events or conditions, along with other matters as set forth in Note 1,
indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to
continue as a going concern. Our opinion is not modified in res pect of this matter.
An association of independent Ƃ rms in Australia and New Zealand and a member
of UHY International, a network of independent accounting and consulting Ƃ rms.
UHY Haines Norton—ABN 85 140 758 156 NSWBN 98 133 826
Liability limited by a scheme approved under Professional Standards Legislation.
Passion beyond numbers
Key Audit Matters
Key audit matters are those matters that, in my professional ju dgement, were of most significance in
my audit of the consolidated financial statements of the curren t year. Except for the matter described
in the material uncertainty related to going concern, I summari se below those matters and my key
audit procedures to address those matters in order that the shareholders as a body may better
understand the process by which I arrived at my audit opinion. The procedures were undertaken in
the context of and solely for the purpose of my statutory audit opinion on the consolidated financial
statements as a whole and I do not provide a separate opinion on these matters.
Why the audit matter is significant How myaudit addressed the key audit matter
Revenue recognition
The Group has recognised revenue of
$21.9m (FY 2023: $20.8m ) (Note 3).
The Group has several revenue streams,
and the revenue recognition policy for
each stream is different. We focused on
this area because the recognition of
revenue in accordance with NZ IFR S 15
involves judgement and the outcome
has a significant impact on profit or loss
and the financial position of the Group.
Also, there is a risk of overstatement of
revenues through premature revenue
recognition or recording fictitious
revenues to meet budgets and/or
market guidance.
To address the risk associated with revenue
recognition, the following audit procedures were
performed, amongst others:
• Evaluated the design of management's internal
controls related to revenue recognition.
• Reviewed revenue recognition policies for
appropriateness and compliance with the
requirements of the relevant accounting
standard NZ IFR S 15;
• Performing substantive analytical procedures
over certain classes of revenue;
• Selected a sample of transactions and agreed
them to supporting documentation such as
customer contract, sale invoice, cash receipt
and assessed whether all criteria related to
revenue recognition has been met before
being recognised as revenue;
• Reviewed credit notes posted after year end to
ascertain correct revenue recognition during
the year;
• Performed revenue cut off procedures by
selecting revenue samples before and after
year end and testing that revenue is recorded
in the correct period;
• Tested a sample of deferred revenue balances
and agreed it to the supporting documents;
• Assessing the completeness of deferred
revenue balances;
• Reviewed manual revenue journals as part of
the journal entry testing process with the
criteria specifically targeting unusual entries to
revenue accounts; and
• Assessed the reasonability and completeness
of the revenue related disclosures to test
compliance with the requirements of the
accounting standards.
An association of independent Ƃ rms in Australia and New Zealand and a member
of UHY International, a network of independent accounting and consulting Ƃ rms.
UHY Haines Norton—ABN 85 140 758 156 NSWBN 98 133 826
Liability limited by a scheme approved under Professional Standards Legislation.
Passion beyond numbers
Why the audit matter is significant How myaudit addressed the key audit matter
Impairment of intangible assets
The Group has significant intangible
assets relating to the acquisitions made
in previous periods.
The Group has significant intangible
assets with finite useful lives including
software and customer relationships
totalling $1.57m (note 17 ) that are
amortised over their useful life.
In addition there is a significant goodwill
balance recorded of $1.23 million (note
17).
We consider this area to be significant as
balances are material to the financial
report and the significant estimates and
judgements applied in testing these
balances for impairment.
To address the risk associated with intangible balance,
the following audit procedures were performed,
amongst others:
• Assessed whether indicators of impairment
existed for the Group’s finite life intangible
assets;
• Tested the accuracy of key data inputs to
management’s impairment assessment;
• Analysed the appropriateness of the Group’s
impairment assessment with particular
emphasis on the adopted methods,
assumptions and judgements applied;
• Performed an independent recalculation of the
CGU’s recoverable amount and compared it to
management’s assessment and the relevant
carrying amount;
• Performed sensitivity testing on key
assumptions; and
• Assessed the reasonability and completeness
of the related disclosures to test compliance
with the requirements of the accounting
standards.
Information Other than the Consolidated Financial Statements and Auditor’s Report thereon
The Directors are responsible for the annual report, which includes information other than the
consolidated financial statements and auditor’s report.
My opinion on the consolidated financial statements does not cover the other information and I do
not express any form of audit opinion or assurance conclusion thereon.
In connection with my audit of the consolidated financial statements, my responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or my knowledge obtained in the audit, or otherwise
appears to be materially misstated.
If, based upon the work we have performed, we conclude that the re is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
An association of independent Ƃ rms in Australia and New Zealand and a member
of UHY International, a network of independent accounting and consulting Ƃ rms.
UHY Haines Norton—ABN 85 140 758 156 NSWBN 98 133 826
Liability limited by a scheme approved under Professional Standards Legislation.
Passion beyond numbers
Directors’ Responsibilities for the Consolidated Financial Stat ements
The Directors are responsible on behalf of the Group for the pr eparation and fair presentation of the
consolidated financial statements in accordance with N Z IFR S, 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 er ror.
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
My objective is to obtain reasonable assurance about whether th e 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 my opinion. Reasonable assurance is a high level of assurance but is not
a guarantee that an audit conducted in accordance with ISAs (N Z) 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 fin ancial statements.
A further description of the auditor’s responsibilities for the audit of the consolidated financial
statements is located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/.
This description forms part of my auditor’s report.
Restriction on use of my report
This report is made solely to the Group’s shareholders, as a bo dy. My audit work has been undertaken
so that I might state to the Group’s shareholders, as a body th ose matters which I am required to state
to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, I do
not accept or assume responsibility to anyone other than the Gr oup and the Group’s shareholders, as
a body, for my audit work, for this report or for the opinion I have formed.
Vikas Gupta
Audit Partner - UHY Haines Norton Chartered Accountants Sydney
Signed at Sydney, Australia on 27 September 2024
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Corporate Governance
The directors have complied with the corporate governance code which can be found on the following link.
https://enprisegroup.com/s/201125-eg-corporate-governance-statement-4sx6.pdf
The finance, audit and risk committee charter can be forund on the following link.
https://enprisegroup.com/s/202404-eg-Finance-Audit-and-Risk-Committee-Charter-v-April2024.pdf
Board composition
George Cooperappointed 10 April 2012
Lindsay Phillipsappointed 1 December 2013
Nicholas Paulappointed 1 December 2015
Ronald Baskindappointed 31 January 2018
Dr Aneesha Varghese-Cowanappointed 24 November 2022; resigned 22 August 2024
Aaron Ridgwayappointed 11 June 2024
Board diversity
30 June 202430 June 202330 June 202430 June 2023
%%
Male Directors
5
4
83%
80%
Female Directors
1
1
17%
20%
Tenure
30 June 202430 June 2023
Over 10 years
2 1
5 - 10 years
2 3
Less than 5 years
2 1
Attendance at board and committee meetings
Board MeetingsAudit Committee
For the year ended 30 June 2024
George Cooper111188
Lindsay Phillips1110n/an/a
Nicholas Paul111188
Ronald Baskind1111n/an/a
Dr Aneesha Varghese-Cowan111088
Aaron Ridgway
11n/an/a
DIVERSITY STATEMENT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE STATEMENT
CONTINUOUS DISCLOSURE
SHARE TRADING GUIDELINES
Enprise has adopted guidelines that prohibit trading in its shares by directors and staff who possess material price sensitive information
about the company. Subject to the overriding restrictions that persons may not deal in shares while they are in possession of material price
sensitive information, directors and key staff will only be permitted to deal in shares during certain "window periods" which are during the
three month period from the date of release of the half yearly and yearly announcements to NZX and from release of a disclosure document
offering equity securities in the company. Outside of these periods, directors and key staff are not permitted to deal in shares. Directors and
staff are required to notify the Finance Director of purchases and sales within two business days of the transaction in order to enable the
company to notify the NZX within the appropriate timeframe.
Enprise currently provides non-financial operational disclosure but not specific Environmental Social and Governance disclosure. Enprise
will keep under review the extent of non-financial reporting in future years (including considering the types of disclosures that would be most
meaningful given the nature of Enprise's business).
Enprise places a priority on communication with shareholders and is aware of the obligations it has under the Companies Act and the NZX
Listing Rules to keep the market fully informed of information which is not generally available and which may have a material effect on the
price or value of the shares. The company believes it has met its obligations under the NZX Listing Rules for continuous disclosure.
Number of
Meetings
Number
Attended
Number of
Meetings
Number
Attended
Enprise has determined not to adopt a diversity policy at this time given the nature of its business as a passive holding company for
investments in technology businesses.
46
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Other Disclosures
DIRECTOR DISCLOSURES
Directors
George Cooperappointed 10 April 2012Finance Director
Lindsay Phillipsappointed 1 December 2013Non-Executive Director
Nicholas Paulappointed 1 December 2015Independent Non-Executive Chairperson
Ronald Baskindappointed 31 January 2018Managing Director
Dr Aneesha Varghese-Cowanappointed 24 November 2022Independent Non-Executive Director
Aaron Ridgwayappointed 11 June 2024Independent Non-Executive Director
Dr Aneesha Varghese-Cowan, Nicholas Paul and Elliot Cooper comprise the members of the Audit, Finance and Risk Committee.
Directors security interests at 30 June 2024
Number of Shares
Lindsay Phillips 4,080,039
Ronald Baskind 3,526,085
George Cooper 243,242
Nicholas Paul 62,023
Dr Aneesha Varghese-Cowan -
Aaron Ridgway -
Interests register at 30 June 2024
The following entries are recorded in the period ending 30 June 2024:
Name of DirectorParticularsPosition Held
Lindsay PhillipsM.J.H Nightingale & Co Pty Limited (& S.E.A.T Project Pty Limited)Director
Ironwood Investments Pty LimitedDirector
Quintron Pty LimitedDirector
Nightingale Partners Pty LimitedDirector
Phoenix Development Fund LimitedDirector
Phoenix Management Pty LimitedDirector
Mayfield Group Holdings Limited Director
Leed Properties Pty LimitedDirector
Vadacom Holdings Limited (& Vadacom Limited)Director
Aurora Marketing Pty LimitedDirector
Monsour Legal Costs Pty LimitedDirector
Spectainer Pty LimitedDirector
Fabulate Pty LtdDirector
Chess Investors Pty LtdDirector
OK Group (APAC) Holdings Ltd (PayOK Pty Ltd, Credisense Limited)Director
iSell Pty LimitedDirector
Accountability Group Holdings Pty LtdDirector
Ronald BaskindRed Cow Investments Pty LimitedDirector
George CooperKeelan Investments LimitedDirector
Nicholas PaulThe Sales Factory LimitedDirector
Nudge Partners LimitedDirector
Silverback Surfers LimitedDirector
Director of Connector Communities Ltd (ceased 1 August 2024)Director
The Directors are pleased to submit to shareholders their report and financial statements for the year ended 30 June 2024. In order to
comply with the Companies Act 1993, the directors report as follows:
Mr Paul is considered to be an independent director as he has a small holding in Enprise. Dr Varghese-Cowan and Mr Ridgway are
considered to be independent directors as they have no shareholding in Enprise and have no other remuneration or influence which would
affect decision making in a material way.
There is no requirement for Directors to hold shares in the Company but it is encouraged in order to more strongly align their interests with
the interests of shareholders.
47
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Other Disclosures
Interests register at 30 June 2024 (continued)
Name of DirectorParticularsPosition Held
Dr Aneesha Varghese-CowanBetter World Australia Pty Limited (via FHL)Director
FACS Family Holdings Pty Limited "FHL"Director
FACS Family Nominees Pty LimitedDirector
Aviation Aerospace Australia LimitedDirector
Family Life LimitedDirector
Advisory Member
Aaron RidgwayVadacom Holdings Limited (& Vadacom Limited)Director
Next Telecom LimitedDirector
Luxury Toys NZ LimitedDirector
Ridgway Empire LimitedDirector
Ridgway Holdings LimitedDirector
Ridgway Investment and Advice LimitedDirector
Live Door LimitedDirector
REMUNERATION
Remuneration of directors
The remuneration of the Directors for the period ended 30 June 2024 is set out below:
30 June 202430 June 2023
$'000$'000
George Cooper253 248
Lindsay Phillips25 25
Nicholas Paul40 35
Ronald Baskind342 314
Dr Aneesha Varghese-Cowan25 15
Marissa Fong- 13
Aaron Ridgway2 -
687 650
Total compensation of the directors is disclosed in note 22(f).
Executive director remuneration
The following discloses the remuneration arrangements in place for executives for the period ended 30 June 2025:
Base per annumIncentiveSuperannuationTotal
$'000$'000$'000$'000
George Cooper230 20 8 258
Ronald Baskind277 69 40 386
Victoria Corporate Advisory Panel for the Chartered Accountants Australia
and New Zealand
Incentives are paid in cash and are based on KPIs and assessed by the Board based on the profitability of the company and achievement of
those KPI's.
48
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Other Disclosures
Employee remuneration
30 June 202430 June 2023
Number of employees
100,001 – 110,0008 14
110,001 – 120,00013 6
120,001 – 130,0006 7
130,001 – 140,0008 7
140,001 – 150,0005 11
150,001 – 160,0009 3
160,001 – 170,0005 6
170,001 – 180,0006 10
180,001 – 190,0004 2
190,001 – 200,0006 1
200,001 – 210,0001 -
210,001 – 220,000- 1
220,001 – 230,0001 2
230,001 – 240,0002 -
240,001 – 250,000- 1
250,001 – 260,0001 1
260,001 - 270,000- 1
270,001 - 280,000- -
280,001 - 290,0002 1
290,001 - 300,000- -
300,001 - 310,0001 1
310,001 - 320,000- 1
Management diversity
30 June 202430 June 2023
Male Officers23
Female Officers-
-
The number of employees or former employees, not being directors of the Group, that received remuneration and other benefits that
exceeded $100,000 per annum is as follows:
The remuneration figures include all monetary amounts actually paid to employees and former employees during the 2024 financial year
including: base salaries; short-term incentives (if any) paid during the year; and where required, employee KiwiSaver and superannuation
contributions. The figures do not include amounts paid after 30 June 2024 that related to the 2024 financial year.
49
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Other Disclosures
INVESTOR INFORMATION
The investor information in this section of the disclosures has been taken from the Company’s registers and is as at 14 August 2024.
Twenty largest shareholders
HoldingHolding %
Nightingale Partners Pty Limited* 4,080,039 20.33%
New Zealand Central Securities Depository Limited 3,644,522 18.16%
Red Cow Investments Pty Limited~ 2,671,276 13.31%
Reitham Finanz Gmbh & Co Kg 1,786,633 8.90%
Ronald Ivor Baskind 854,809 4.26%
Dr Jens Neiser 681,159 3.39%
Custodial Services Limited 598,246 2.98%
Amely Zaininger 479,537 2.39%
New Zealand Depository Nominee 463,917 2.31%
Bernard Israel Fridman 318,145 1.59%
Donwood Pty Limited 310,000 1.54%
Carjon Investments Pty Limited 291,071 1.45%
Savgas Pty Limited 291,071 1.45%
Deansand Pty Limited 290,692 1.45%
Net Power Solutions Limited 249,893 1.25%
George Elliot Cooper 243,242 1.21%
Bernard Fridman <Fridman Superfund> 181,767 0.91%
Sarah May Loveys 151,052 0.75%
Jason Patrick Fegan 129,864 0.65%
Roger John Williams 124,686 0.62%
*Related parties to Lindsay Phillips
~Related party to Ronald Baskind
Geographic distribution of shareholders
CountryHoldersHolder %Issued capital
Issued capital
%
New Zealand 254
64.96%
7,025,783
35.01%
Australia 107
27.37%
11,222,979
55.93%
Germany 17
4.35%
1,795,925
8.95%
USA 8
2.05%
16,263
0.08%
Great Britain 3
0.77%
6,667
0.03%
Switzerland 1
0.25%
240
0.00%
Philippines 1
0.25%
200
0.00%
Total 391 100.00% 20,068,057 100.00%
Distribution of shareholders
RangeHolders
Holding
quantity
Holding %
1 - 1,000 134 64,110
0.32%
1,001 - 5,000 143 365,149
1.82%
5,001 - 10,000 36 268,813
1.34%
10,001 - 50,000 55 1,305,784
6.51%
50,001 - 100,000 2 116,790
0.58%
Greater than 100,000 21 17,947,411
89.43%
Total 391 20,068,057 100.00%
Substantial security holders
Holding
L Phillips 4,080,039
R Baskind 3,526,085
Dr J Neiser 3,946,392
At 30 June 2024, the following security holders had given notices in accordance with the Financial Markets Conduct Act 2013 that they were
a substantial product holder in the Company. The number of shares shown below are as recorded for all the relevant interests recorded on
the Company's share register.
50
ENPRISE GROUP LIMITED__
ANNUAL REPORT 2024__
Directory
BOARD OF DIRECTORS
Nicholas Paul Independent Non-Executive Chairperson
George Cooper Finance Director
Ronald Baskind Managing Director
Lindsay Phillips Non-Executive Director
Aaron RidgwayIndependent Non-Executive Director
REGISTERED OFFICEAUDITOR
Level 2, 16 Hugo Johnston DriveUHY Haines Norton
PenroseLevel 1
Auckland 10611 York Street
Phone: +64 9 829 5500Sydney NSW 2001
www.enprisegroup.comPhone +61 2 9256 6600
Appointed 30 June 2023
CONTACT INFORMATIONSOLICITORS
PO Box 62262Hudson Gavin Martin, Auckland, New Zealand
Sylvia ParkChapman Tripp, Auckland, New Zealand
Auckland 1644Ash Street, Sydney, Australia
info@enprisegroup.com
BANKERS
SHARE REGISTRY
Bank of New Zealand Limited
Link Market Services Limited
Level 30, PwC Tower
COMPANY INFORMATION
15 Customs Street WestNZBN1562383-
Auckland, New ZealandARBN 125 825 792
Phone: +64 9 375 5990ABN 41 125 825 792
Enprise Group Limited shares are listed on the NZX. The Group's share register is maintained by MUFG Pension and Market Services
Limited. MUFG Pension and Market Services is your first point of contact for any queries regarding your investment in Enprise Group
51
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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