ASX - My Net Fone Limited | ABN 37 118 699 853 Results for … · 2014. 2. 12. · December 2012, being GoTalk Wholesale and Internex (Australia) Pty Ltd as well as CallStream, which

My Net Fone Limited | ABN 37 118 699 853 Appendix 4D: Half year report for the period ended 31 December 2013

Current reporting period: 1 July 2013 to 31 December 2013 Previous corresponding reporting period: 1 July 2012 to 31 December 2012

Results for announcement to the market

% Change $000 Revenue from ordinary activities

+ 55%

to

28,476

Profit after tax from ordinary activities attributable to members

+ 58%

to

2,375

Net profit for the period attributable to members

+ 58%

to

2,375

Dividends

Amount per security Franked amount per security

2013 interim dividend 1.5 cents 1.5 cents2013 final dividend 2.0 cents 2.0 cents 2014 interim dividend 2.0 cents 2.0 cents

The record date for determining entitlements to the interim dividend is 26 February 2014. The payment date of the interim dividend is 12 March 2014.

There is no dividend re‐investment plan in place.

Review of operations Consolidated group earnings before interest, tax, depreciation and amortisation (EBITDA) for the 6 months to 31 December 2013 was $3.7M and net profit after tax (NPAT) was $2.4M. This represents an increase of 85% and 58% respectively over the previous corresponding period. The increase in revenue and net profit for the period versus the prior year corresponding period is largely attributable to the inclusion for the whole period of the results from the GoTalk Wholesale customer base and Internex (Australia) Pty Limited, both of which were acquired on 31 December 2012. In addition the half year results include a full 6 months of trading from the Callstream customer base, which was acquired on 14 November 2012. In October 2013 the company acquired the business assets of Pennytel Pty Limited (in provisional liquidation); this addition did not have a material impact on the revenue or profit reported for the period.

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My Net Fone Limited | ABN 37 118 699 853 Appendix 4D: Half year report for the period ended 31 December 2013

Net tangible assets per security As at 31 December

2013 2012 Net tangible assets per security

0.31 cents (3.42) cents

Independent review The Appendix 4D and accompanying financial report have been reviewed and are not subject to any disputes or qualifications.

Details of entities over which control has been gained during the period On 1 November 2013, the company registered a new entity, Pennytel Australia Pty Limited.

Additional Appendix 4D disclosure requirements can be found in the Financial Report for the half‐year ended 31 December 2013 lodged with this document.

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My Net Fone Limited | ABN 37 118 699 853

Financial report for the half‐year ended 31 December 2013

This report is to be read in conjunction with the 30 June 2013 Annual Financial Report

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My Net Fone Limited Financial Report for the half‐year ended 31 December 2013

Contents:

Half‐year financial report Directors’ report.................................................................................................................. 3 Auditor’s independence declaration................................................................................... 5 Consolidated statement of profit or loss and other comprehensive income...................... 6 Consolidated statement of financial position...................................................................... 7 Consolidated statement of changes in equity..................................................................... 8 Consolidated statement of cash flows................................................................................. 9 Notes to the financial statements....................................................................................... 10 Directors’ declaration.......................................................................................................... 15 Independent auditor’s review report to the members....................................................... 16

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Directors’ report

The Directors are pleased to present their report on the consolidated entity of My Net Fone Limited for the half‐year ended 31 December 2013

Directors

Period of directorship

Terry Cuthbertson Non‐executive Director & Chairman

Director since March 2006

Michael Boorne Non‐executive Director

Director since December 2006

Andy Fung Non‐executive Director


Rene Sugo Executive Director & CEO


Company Secretary

Catherine Ly Appointed July 2006

Rounding off

The Group is of a kind referred to in ASIC Class order 98/100 dated 10 July 1988 and in accordance with that Class Order, amounts in the consolidated financial statements and Directors’ Report have been rounded off to the nearest thousand dollars, unless otherwise stated.

Review and results of operations

The company has been executing its business operations effectively in the first half reporting period with strong year‐on‐year growth recorded.

Consolidated group earnings before interest, tax, depreciation and amortisation (EBITDA) for the 6 months to 31 December 2013 was $3.7M and net profit after tax (NPAT) was $2.4M. This represents an increase of 85% and 58% respectively over the previous corresponding period.

These results include six months revenue and contribution from the acquisitions completed on 31 December 2012, being GoTalk Wholesale and Internex (Australia) Pty Ltd as well as CallStream, which was acquired in November 2012.

Dividends

The Directors have recommended a fully franked interim dividend of 2.0 cents per share for the period ending 31 December 2013.

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Consolidated statement of profit or loss and other comprehensive income

Consolidated Group For the half‐year ended: 31 December 2013 31 December 2012 Note $’000 $’000Continuing operations Revenue 3 28,476 18,429 Cost of Sales (17,379) (11,629)Gross Profit 11,097 6,800 Finance revenue 3 43 81Other income 3 34 46 Employee expenses (5,535) (3,604)Marketing expenses (586) (458)Occupancy expenses (239) (140)Technology and support expenses (341) (72)Depreciation expense (405) (211)Distribution expenses (85) (58)Other expenses (693) (596)Interest expense (32) ‐Profit before income tax 3,258 1,788 Income tax expense (883) (285) Profit from continuing operations 2,375 1,503 Net profit for the period 2,375 1,503 Other comprehensive income for the period net of tax ‐ ‐ Total comprehensive income for the period 2,375 1,503

Earnings per share from continuing operations ‐ Basic earnings per share (cents) 7 3.81 2.65‐ Diluted earnings per share (cents) 3.79 2.63

The accompanying notes form part of these consolidated financial statements

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Consolidated statement of financial position

Consolidated Group As at: 31 December 2013 30 June 2013 Note $’000 $’000Assets Current assets Cash and cash equivalents 3,653 4,813Trade and other receivables 7,396 6,612Inventory 239 251Other financial assets 298 426Total current assets 11,586 12,102 Non‐current assets Property, plant and equipment 1,753 1,561Deferred income tax asset 372 275Consolidated goodwill 9,219 9,219Other intangible assets 8 2,673 2,280Total non‐current assets 14,017 13,335Total assets 25,603 25,437 Liabilities Current liabilities Trade and other payables 9,012 9,544Deferred revenue 2,656 1,145Deferred consideration 10 ‐ 2,350Income tax payable 721 501Finance lease liability 175 175Provisions 521 515Total current liabilities 13,085 14,230 Non‐current liabilities Finance lease liability 14 104Provisions 418 326Total non‐current liabilities 432 430Total liabilities 13,517 14,660Net assets 12,086 10,777 Equity Issued capital 6 9,508 9,371Share based payment reserve 1,156 1,110Retained earnings 1,422 296Total equity 12,086 10,777


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Consolidated statement of changes in equity

Attributable to owners of the company

Ordinary

share capital

Share‐based payment

reserve

Retained earnings

Total

$’000 $’000 $’000 $’000

Balance at 1 July 2012 4,361 1,099 (2,905) 2,555 Total comprehensive income for the period

‐ ‐ 1,503 1,503

Dividends paid ‐ ‐ (7) (7)Proceeds from issue of shares 4,975 ‐ ‐ 4,975 Balance at 31 December 2012 9,336 1,099 (1,409) 9,026 Ordinary

share capital

Share‐based payment

reserve

Retained earnings

Total

$’000 $’000 $’000 $’000

Balance at 1 July 2013 9,371 1,110 296 10,777 Total comprehensive income for the period

‐ ‐ 2,375 2,375

Dividends paid ‐ ‐ (1,249) (1,249)Proceeds from issue of shares 137 ‐ ‐ 137Share based payment transactions ‐ 46 ‐ 46 Balance at 31 December 2013 9,508 1,156 1,422 12,086


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Consolidated statement of cash flows

Consolidated Group For the half‐year ended: 31 December

2013 31 December

2012 $’000 $’000 Cash flows from operating activities Receipts from customers 31,120 22,059Payments to suppliers and employees (27,439) (20,797)Interest received 43 81Interest paid (32) ‐Income tax paid (761) 9Net cash from operating activities 2,931 1,352 Cash flows from investing activities Purchase of property, plant and equipment (347) (304)Decrease in other financial assets 128 ‐Payment for acquisition of subscriber bases (320) (1,985)Acquisition of subsidiary net of cash acquired ‐ (4,460)Payment of deferred consideration for subsidiary acquired

(2,350) (2,350)

Net cash (used in) investing activities (2,889) (9,099) Cash flows from financing activities Proceeds from issue of share capital 137 4,975Dividends paid (1,249) (836)Repayment of finance lease liability (90) ‐ Net cash (used in)/from financing activities (1,202) 4,139 Net (decrease) in cash and cash equivalents (1,160) (3,608)Cash and cash equivalents at beginning of period 4,813 5,980 Cash and cash equivalents at end of period 3,653 2,372


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Notes to the Financial Statements

1. Corporate information

The condensed financial report for My Net Fone Limited for the half‐year ended 31 December 2013 was authorised for issue in accordance with a resolution of the directors on 13 February 2014.

My Net Fone Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange.

2. Basis of preparation This general purpose condensed financial report for the half‐year ended 31 December 2013 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. The half‐year financial report does not include all notes of the type normally included within the annual financial report. As such, this report should be read in conjunction with the annual financial report for the year ended 30 June 2013 and any public announcements made by My Net Fone Limited during the interim reporting period in accordance with the continuous disclosure requirements of the ASX Listing Rules. Changes in accounting policy The accounting policies applied by the Group in this condensed half‐year financial report are the same as those applied by the Group in its consolidated annual financial report as at and for the year ended 30 June 2013. In the current period, the Group has adopted all new and revised Standard and Interpretations issued by the Australian Accounting Standards Board (AASB) that are effective for the current interim reporting period and relevant to the Group. The adoption of these amendments has not resulted in any changes to the Group’s accounting policies and has had no effect on the amounts reported for the current or prior periods. Going concern The Directors believe that the Group will be able to continue as a going concern as such, the financial report has been prepared on a going concern basis. This basis presumes that funds will be available to finance future operations and the realisation of assets and settlement of liabilities will occur in the normal course of business. The Directors believe that the going concern basis of accounting is appropriate due to the expected cash flows to be generated by the Group over the next twelve months and that the company will be able to pay its debts as and when they fall due. Notwithstanding the above, the directors acknowledge that there are a number of risk factors that could materially affect the Group's future profitability and cash flows. These risk factors were fully disclosed in the June 2013 annual financial statements.

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Notes to the Financial Statements (continued)

3. Revenue and expenses included in the consolidated statement of comprehensive income

For the half‐year ended: 31 December 2013 31 December 2012 $’000 $’000 Revenue Rendering of service 28,476 18,429 Finance revenue Bank interest received on cash deposits 43 81 Other Revenue 34 46 Interest expense Interest on finance leases 14 ‐Related party interest paid on deferred consideration 18 ‐ 32 ‐ Deferred consideration of $2,350,000 payable to the Directors of Symbio was due on 19 September 2013. It was agreed with the Directors of Symbio to defer $1,175,000 of that payment by 3 months and that interest at a rate of 6% per annum would be paid on that amount.

4. Dividends paid and proposed

31 December 2013 31 December 2012 $’000 $’000 Dividends paid during the half‐year: Final fully franked dividend for the financial year ended 30 June 2013: 2.0 cents, paid 13 September 2013 (2012: 1.5 cents)

1,249 836

Dividends declared and not recognised as a liability:

Interim fully franked dividend for the financial year ended 30 June 2014: 2.0 cents to be paid on 12 March 2014 (2013: 1.5 cents)

1,249 934

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5. Share based payments

During the period, 270,000 options (half year ended 31 December 2012: 250,000) were granted to certain executives and staff under the Employee Option Plan.

These options have an exercise price of $1.70, a vesting date of 31 December 2014, an expiry date of 31 December 2015, and are subject to performance and vesting conditions.

No options were issued to Directors during the period.

6. Contributed equity

Movement in ordinary share capital:

2013 2012 Number $’000 Number $’000 As at 1 July 62,250,215 9,371 55,255,555 4,361 Exercise of share options 210,000 137 450,000 55 Equity issued for cash net of costs ‐ ‐ 6,294,660 4,920 As at 31 December 62,460,215 9,508 62,000,215 9,336

7. Earnings per share

Earnings and weighted number of shares used in calculating basic and diluted earnings per share is as follows:

31 December 2013 31 December 2012 $’000 $’000Net profit attributable to ordinary equity holders of the company 2,375 1,503 Number NumberWeighted average number of shares for basic earnings per share 62,398,084 56,673,763

Add effect of dilution

270,000 500,000

Weighted average number of ordinary shares for diluted earnings per share 62,668,084 57,173,763

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8. Other intangible assets

In relation to the acquisition of subscriber customer bases

31 December 2013 30 June 2013 $’000 $’000 Callstream 585 585GoTalk 1,400 1,400Buzz Corp 295 295PennyTel (refer note 9 for details) 393 ‐ 2,673 2,280

9. Business Acquisitions

PennyTel

On the 25 October 2013, the Group acquired the telecommunications related business assets and liabilities, including the customer bases of Pennytel Pty Limited (In Provisional Liquidation) and Ivoisys Pty Limited (In Provisional Liquidation) for a cash consideration of $320,000. This payment was made from free cash flow.

While the acquisition is not in itself material to the business, it is strategically important in that it removes a low cost competitor from the residential VoIP market and brings around 30,000 new customers onto our platform, from which it is expected strong synergies will be realised.

$’000 Cash consideration 320 Assets/(liabilities) acquired: Plant and equipment 250 Receivables 213 Customer prepayments (536) Net liabilities acquired (73) Intangible asset acquired 393 320

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10. Deferred consideration

31 December 2013 30 June 2013 $’000 $’000 Deferred consideration ‐ current ‐ 2,350

As at 30 June 2013, the outstanding deferred consideration in relation to the acquisition of the Symbio Group in July 2011 (as disclosed in the 2012 Financial Statements) was $2,350,000. This amount was settled in full during the period.

11. Operating segments The Group operates in one business segment being telecommunications. The geographical segments are defined based on operating business location being Australia and Singapore.

12. Contingent liabilities There are no contingent liabilities and there has been no change in contingent liabilities since the end of the last reporting date.

13. Event after balance sheet date

On 13 February 2014 the Directors of My Net Fone Limited declared an interim fully franked dividend of 2.0 cents per share in respect of the half year period ended 31 December 2013.

The total amount of the interim dividend will be $1,249,204 and will be paid on 12 March 2014.

The interim dividend has not been provided for in the 31 December 2013 financial statements.

Other than the dividend declared there have been no other significant events since the reporting date which would impact on the financial position of the Group as disclosed in the statement of financial position as at 31 December 2013 or on the cash flow of the Group for the period ended on that date.

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Documents

ASX - My Net Fone Limited | ABN 37 118 699 853 Results for … · 2014. 2. 12. · December 2012, being GoTalk Wholesale and Internex (Australia) Pty Ltd as well as CallStream, which