Appendix 4E & Preliminary Final Report
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THE AGENCY GROUP AUSTRALIA LTD
ABN 52 118 913 232
and its controlled entities
APPENDIX 4E
Preliminary Final Report
30 June 2020
THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232 30 June 2020
Corporate directory
Current Directors
Andrew Jensen Executive Chairman
Paul Niardone Managing Director
Adam Davey Non-executive Director
Matthew LaHood Executive Director
Company Secretary
Mr Stuart Usher
Registered Office Share Registry
Street: 68 Milligan St Advanced Share Registry Limited
PERTH WA 6000 Street + Postal: 110 Stirling Highway
Postal: PO Box 7768 NEDLANDS WA 6009
CLOISTERS SQUARE WA 6850 Telephone: 1300 113 258 (within Australia)
Telephone: +61 (0)8 9204 7955 +61 (0)8 9389 8033 (International)
Facsimile: +61 (0)8 9204 7956 Facsimile: +61 (0)8 6370 4203
Email: info@theagencygroup.com.au Email: admin@advancedshare.com.au
Website: theagencygroup.com.au Website: www.advancedshare.com.au
Auditors Securities Exchange
Bentleys Audit & Corporate (WA) Pty Ltd Australian Securities Exchange
Level 3, 216 St Georges Terrace Level 40, Central Park, 152-158 St Georges Terrace
PERTH WA 6000 Perth WA 6000
Telephone: +61 (0)8 9226 4500 Telephone: 131 ASX (131 279) (within Australia)
Telephone: +61 (0)2 9338 0000
Solicitors Facsimile: +61 (0)2 9227 0885
Steinepreis Paganin Website: www.asx.com.au
Level 4, The Read Buildings ASX Code : AU1
16 Milligan Street
Perth WA 6000
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2020 ABN 52 118 913 232
Contents
Company Update ................................................................................................................................................................... 1
Results for announcement to the Market ............................................................................................................................. 5
Consolidated statement of profit or loss and other comprehensive income ........................................................................ 8
Consolidated statement of financial position ....................................................................................................................... 9
Consolidated statement of changes in equity ..................................................................................................................... 10
Consolidated statement of cash flows ................................................................................................................................. 11
Notes to the Appendix 4E preliminary final report .............................................................................................................. 12
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232
Company Update
1. Operating and financial review
1.1. Nature of Operations Principal Activities
The principal activity of the Group for the financial year was real estate services and related activities. There were no
significant changes in the nature of the Group’s principal activities during the financial year.
1.2. Operations Review
a. Key Metrics
ANNUAL GROUP REVENUE ($m) GCI ($m)
60
Up 48% Y-o-Y 50
Up 26% Y-o-Y
45
40 40
35
30 30
25 47.9
20 41.86 20 37.9
15 28.3 28.8
10 10
16.8
5 9.6 3.8
0
0
FY17 FY18 FY19 FY20
FY17 FY18 FY19 FY20
NUMBER OF NEW LISTINGS (#) NUMBER OF PUM (#)
Up 15% Y-o-Y Up 12%Y-o-Y
5000 6,000
3957 4,838
4000 5,000
3430 4,337
4,000 3,347
3000
3,000
1776
2000
2,000
1000 639
1,000
0 0
FY17 FY18 FY19 FY20 FY18 FY19 FY20
VALUE OF EXCHANGES ($B)
3.5 Up 21% Y-o-Y
2.9
3
2.4
2.5
2 1.8
1.5
1
0.5 0.2
0
FY17 FY18 FY19 FY20
P a g e |1
APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2020 ABN 52 118 913 232
Company Update
All key metrics increased during the year across our businesses as demonstrated above, reinforcing the sustained growth
the business has been able to achieve year on year for the past three years. This is despite the impact of the COVID-19
pandemic and resultant impact from restrictions on the real estate sector nationally during the latter part of the March
and June Quarters 2020. The Agency delivered strong operating results for FY2020 including its first full year EBITDA profit
since inception.
For FY2020, the Group reported Annual Group Revenue of $41.86 million, a 48% increase year-on-year (FY2019 1: $28.34
million), which further highlights the effectiveness of the Company’s model.
The increase in revenue was primarily due to a 26% increase year-on-year in Combined Gross Commission Income to
$47.9 million (FY19: $38 million). This figure was bolstered by 3,153 sales (up from 2,419 sales for FY19) and $2.9 billion
worth of property sold across the combined group for the FY2020 (FY19: $2.5 billion).
Property management continues to grow with The Agency reporting a record total of 4,838 Properties Under Management
as at 30 June 2020, up 12% on the prior corresponding period, generating ≈$9 million revenue annually.
The company also witnessed growth in its Mortgage Solutions Australia (MSA) business with home loan approvals for
FY2020 up 11% year-on-year from $124.2 million to $137.4 million.
As at 30th June, The Agency was comprised of a combined 283 sales agents (East Coast: 142, West Coast: 141), with average
Gross Commission Income (GCI) increasing by over 20% over the past twelve months. The Agency’s model of allowing our
high-quality agents to focus on sales and providing support is being demonstrated by the year-on-year increase in GCI.
The Agency will be looking to boost agent numbers in the coming quarters. Based on the company’s existing platform and
cost structure, which is largely fixed, any future recruitment will directly contribute to EBITDA performance.
The Agency Group reported cash receipts of $42.53 million for the FY2020, a 42% year-on-year increase (FY2019: $29.93
million).
Pleasingly, The Agency rebounded in June across key metrics as COVID-19 restrictions eased in major markets. Results
delivered in June are now flowing through with a strong sales pipeline into Q3 2020.
Please see below table highlighting year-on-year growth across key metrics:
The Agency Group FY20 FY19 % Change
Revenue ($M) 41.86 28.3 +48%
EBITDA ($M) 2.66 (4.25) +161%
EBITDA - pre AASB16 ($M) 0.71 (4.25) +116%
GCI ($M) 47.92 37.97 +26%
PUM 4,838 4,337 +12%
Home Loan Approvals (MSA) ($M) 137.4 124.2 +11%
1.3. Financial Review
The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.
The Agency continued its growth during FY2020 delivering three quarters of positive EBITDA as well as positive cash flow,
a first for the company. For FY2020, the Group recorded EBITDA profit of approximately $2.66 million. EBITDA was
calculated as provided below:
1 Note: FY19 reflects six months of operating results of Top Level Pty Ltd
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232
Company Update
EBITDA calculation 2020 2019
$ $
Loss before tax (10,357,057) (9,255,448)
Interest income (17,988) (12,958)
Depreciation and amortisation 6,038,609 2,266,548
Impairment 5,230,330 1,378,379
Interest and finance costs 1,769,193 1,242,675
Share-based payments - 133,663
EBITDA 2,663,087 (4,247,141)
AASB16 Leases impact (1,951,373) -
EBITDA (pre-AASB16 Leases impact) 711,714 (4,247,141)
EBITDA was $2.66 million. Pre-adoption of the new AASB16 Leases standard, which was applied during FY2020, EBITDA
profit for the year came to $711,714 which compares to an EBITDA loss of $4.25 million for FY2019, a $4.96 million
turnaround.
The Group’s revenue for the year ended 30 June 2020 was recorded at $41.86 million as compared with the previous year
ended 30 June 2019 which recorded $28.34 million.
The net assets of the Group have increased from 30 June 2019 by $2.58 million to $11.61 million at 30 June 2020 (2019:
$9.03 million).
The Group incurred a net loss before tax for the year of $10.36 million (2019: $9.26 million loss). It is important to note
that this was primarily impacted by depreciation and amortisation ($6.04 million) and impairment of goodwill ($5.23
million).
The Board has taken a conservative view on the review of its goodwill on historical acquisitions and believed it was
appropriate to impair by $5.23 million for FY2020, in light of market uncertainty as a result of COVID.
As at 30 June 2020, the Group's cash and cash equivalents increased from 30 June 2019 by $126,843 to $2.72 million at
30 June 2020 (2019: $2.60 million).
Appendix 4E 2020
$’000s $
Cash at bank (reference 4E Note 4.1) 2,724
Cash classified as
Cash on deposits 482
Cash on deposit with funder plus bank guarantees 770
Convertible Note funds 1,000
Reporting in the 30 June 2020 Appendix 4C 4,976
Government incentives and related grants have been received during the last quarter of the year and were used to also
support employee sales agents in Perth. These have been included in operational cash flows.
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2020 ABN 52 118 913 232
Company Update
1.4. Future Developments, Prospects and Business Strategies
The Group remains focussed on maintaining a sustainable financial framework and continues to identify and implement
efficiencies into its business.
To this end, the Group is currently finalising arrangements to bring bank debt down to a manageable level.
The Company continues to work proactively with its primary bank debt provider and other parties regarding a resolution
of its current financing facility on or before 30 September 2020.
The Agency is active in pursuing a range of strategic partnerships and JV opportunities it believes will drive agent
recruitment and sales revenue in the coming reporting periods.
There remain significant intangible assets off the balance sheet, these include the rent roll and the Mortgage Book. These
assets contribute an annuity income to the business in excess of $10 million per annum. Total estimated market asset value
of the rent roll and loan book is approx. $27 million.
Other likely developments, future prospects and business strategies of the operations of the Group and the expected
results of those operations, not otherwise disclosed in this report, have not been included in this report as the Directors
believe that the inclusion of such information would be likely to result in unreasonable prejudice to the Group.
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232
Results for announcement to the Market
for the year ended 30 June 2020
1 REPORTING PERIOD (item 1)
Report for the financial year ended: 30 June 2020
Previous corresponding period is the year months ended: 30 June 2019
Movement Percentage Amount
2 RESULTS FOR ANNOUNCEMENT TO THE MARKET
% $
Increase in revenues from ordinary activities (item 2.1) 47.72 to 41,861,521
Increase in loss from ordinary activities after tax attributable
15.77 to (9,065,338)
to members (item 2.2)
Increase in loss after tax attributable to members (item 2.3) 15.77 to (9,065,338)
a. Dividends (item 2.4) Amount per Franked amount
Security per security
₵ %
Interim dividend nil n/a
Final dividend nil n/a
Record date for determining entitlements to the
n/a
dividend (item 2.5)
b. Brief explanation of any of the figures reported above necessary to enable the figures to be understood (item 2.6):
Refer to Company Update on page 1 of this Preliminary Final Report.
3 PRELIMINARY FINAL REPORT
a. Statement of comprehensive income (item 3):
Refer to Consolidated statement of profit or loss and other comprehensive income on page 8
b. Statement of financial position (item 4):
Refer to Consolidated statement of financial position on page 9
c. Statement of cash flows (item 5):
Refer to Consolidated statement of cash flows on page 11
d. Statement of changes in equity (item 6):
Refer to Consolidated statement of changes in equity on page 10
4 DIVIDENDS (item 7) AND RETURNS TO SHAREHOLDERS INCLUDING DISTRIBUTIONS AND BUY BACKS (item 14.2)
Nil.
a. Details of dividend or distribution reinvestment plans in operation are described below (item 8):
Not applicable
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2020 ABN 52 118 913 232
Results for announcement to the Market
for the year ended 30 June 2020
Previous
5 RATIOS
Current corresponding
period period
a. Financial Information relating to 5b and 5c: $ $
Earnings for the period attributable to owners of the parent (9,065,338) (7,830,605)
Net assets 11,611,345 9,031,007
Less: Intangible assets (including net deferred tax balances) and right of use (31,770,901) (34,368,355)
Assets
Net tangible assets (20,159,556) (25,337,348)
No. No.
Fully paid ordinary shares 298,954,431 103,810,047
Weighted average number of ordinary shares outstanding during the year used 251,793,328 61,610,752
in calculation of basic EPS
₵ ₵
b. Net tangible assets backing per share (cents) (item 9): (6.743) (24.407)
c. Earnings per share attributable to owners of the parent (cents) (item 14.1): (3.600) (12.710)
The Group does not report diluted earnings per share, as dilution is not applied
to annual losses generated by the Group. During the 2020 financial year the
Group had 102,181,760 unissued shares under option which are anti-dilutive.
6 DETAILS OF ENTITIES OVER WHICH CONTROL HAS BEEN GAINED OR LOST DURING THE PERIOD: (item 10)
a. Control gained over entities
Name of entities (item 10.1) Nil
Date(s) of gain of control (item 10.2)
b. Loss of control of entities
Name of entities (item 10.1) Nil
Date(s) of loss of control (item 10.2) N/A
c. Contribution to consolidated profit (loss) from ordinary activities after Nil
tax by the controlled entities to the date(s) in the current period when
control was gained / lost (item 10.3).
d. Profit (loss) from ordinary activities after tax of the controlled entities for Nil
the whole of the previous corresponding period (item 10.3)
7 DETAILS OF ASSOCIATES AND JOINT VENTURE: (item 11)
Name of entities (item 11.1) Nil
Percentage holding in each of these entities (item 11.2) n/a
Previous
corresponding
Current period Period
$ $
Aggregate share of profits (losses) of these entities (item 11.3) N/A N/A
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232
Results for announcement to the Market
for the year ended 30 June 2020
8 Any other significant information needed by an investor to make an informed assessment of the entity’s financial
performance and financial position. (item 12):
Refer to commentary update accompanying this 4E
9 The financial information provided in the Appendix 4E is based on the preliminary final report (attached), which has been
prepared in accordance with Australian Accounting Standards (item 13)
10 A COMMENTARY ON THE RESULTS FOR THE PERIOD (item 14)
Refer to Company Update on page 1 .
11 The preliminary final report has been prepared based on the 30 June 2020 accounts which are in the process of being
audited by an independent Audit Firm in accordance with the requirements of s.302 of the Corporations Act 2001 (Cth).
(item 15)
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2020 ABN 52 118 913 232
Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2020
Note 2020 2019
$ $
Continuing operations
Revenue 1.1 41,861,521 28,337,806
Other income 1.2 1,012,487 177,891
42,874,008 28,515,697
Advertising and promotion expenses (1,242,399) (670,123)
Computers and information technology expenses (1,330,334) (1,006,107)
Consultancy fees (1,918,495) (1,195,372)
Depreciation and amortisation (6,038,609) (2,266,548)
Impairment 2.1 (5,230,330) (1,378,379)
Interest and finance costs (1,769,193) (1,242,675)
Legal and professional fees (998,384) (1,907,502)
Occupancy costs (984,139) (2,178,362)
Salaries and employment costs 2.2 (31,070,020) (24,024,002)
Share-based payments expense 7 - (133,663)
Other expenses (2,649,162) (1,768,412)
Loss before tax (10,357,057) (9,255,448)
Income tax expense 3.1 1,291,719 1,424,843
Net loss for the year (9,065,338) (7,830,605)
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss - -
Items that may be reclassified subsequently to profit or loss: - -
Other comprehensive income for the period, net of tax - -
Total comprehensive income attributable to members of the parent entity (9,065,338) (7,830,605)
2,663,087 (4,247,141)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232
Consolidated statement of financial position
as at 30 June 2020
Note 2020 2019
$ $
Current assets
Cash and cash equivalents 4.1 2,724,142 2,597,299
Trade and other receivables 4.2.1 4,601,222 4,079,873
Financial assets 4.3.1 1,000,000 -
Other current assets 4.4.1 550,476 413,492
Total current assets 8,875,840 7,090,664
Non-current assets
Trade and other receivables 4.2.2 269,655 282,772
Financial assets 4.3.2 770,388 1,142,387
Property, plant, and equipment 5.1 2,039,814 2,577,550
Right of use asset 5.2.1 4,645,320 -
Intangible assets 5.3 30,376,355 39,036,212
Total non-current assets 38,101,532 43,038,921
Total assets 46,977,372 50,129,585
Current liabilities
Trade and other payables 4.5.1 9,773,152 13,555,575
Borrowings 4.6.1 13,843,235 21,126,603
Provisions 5.4.1 2,286,835 1,112,833
Leases 5.2.2 1,979,900 -
Total current liabilities 27,883,122 35,795,011
Non-current liabilities
Trade and other payables 4.5.2 - 35,308
Provisions 5.4.2 337,054 600,402
Leases 5.2.2 3,895,077 -
Deferred tax liabilities 3.3 3,250,774 4,667,857
Total non-current liabilities 7,482,905 5,303,567
Total liabilities 35,366,027 41,098,578
Net assets 11,611,345 9,031,007
Equity - -
Issued capital 6.1.1 39,395,942 27,765,049
Reserves 6.3 928,715 583,426
Accumulated losses (28,713,312) (19,317,468)
Total equity 11,611,345 9,031,007
(19,007,282) (28,704,347)
(20,159,556) (25,337,348)
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2020 ABN 52 118 913 232
Consolidated statement of changes in equity
for the year ended 30 June 2020
Note Contributed Accumulated Options Total
equity Losses Reserve equity
$ $ $ $
Balance at 1 July 2018 11,480,382 (11,486,863) 566,430 559,949
Loss for the year attributable owners of the parent - (7,830,605) - (7,830,605)
Other comprehensive income for the year attributable owners
of the parent - - - -
Total comprehensive income for the year attributable owners of
the parent - (7,830,605) - (7,830,605)
Transaction with owners, directly in equity
Shares issued during the year (net of costs) 6.1.1 16,284,667 - - 16,284,667
Options granted during the year 6.2 - - 16,996 16,996
Balance at 30 June 2019 27,765,049 (19,317,468) 583,426 9,031,007
Balance at 1 July 2019 27,765,049 (19,317,468) 583,426 9,031,007
Change in accounting policy – effect of AASB 16 Leases - (330,506) - (330,506)
Restated total equity at the beginning of the financial year 27,765,049 (19,647,974) 583,426 8,700,501
Loss for the year attributable owners of the parent - (9,065,338) - (9,065,338)
Other comprehensive income for the year attributable owners
of the parent - - - -
Total comprehensive income for the year attributable owners of
the parent - (9,065,338) - (9,065,338)
Transaction with owners, directly in equity
Shares issued during the year (net of costs) 6.1.1 11,630,893 - - 11,630,893
Share-based payments during the year 6.2 - - 345,289 345,289
Balance at 30 June 2020 39,395,942 (28,713,312) 928,715 11,611,345
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232
Consolidated statement of cash flows
for the year ended 30 June 2020
Note 2020 2019
$ $
Cash flows from operating activities
Receipts from customers 42,529,458 29,931,578
Payments to suppliers and employees (40,821,013) (34,970,655)
Interest received 17,988 12,958
Finance costs (1,391,729) (1,405,068)
Net cash used in operating activities 334,704 (6,431,187)
Cash flows from investing activities
Purchase of property, plant and equipment (282,527) (241,107)
Advancement of bank guarantee (481,498) (600,000)
Return of bank guarantee 346,078 -
Purchase of intangibles (192,758) -
Deferred purchase consideration paid (15,000) (75,000)
Purchase of subsidiary, net of cash acquired - 594,258
Net cash used in investing activities (625,705) (321,849)
Cash flows from financing activities
Proceeds from issue of shares 5,611,773 8,400,000
Share issue costs (397,861) (277,200)
Repayments of borrowings (2,731,516) (44,352)
Proceeds from borrowings - 250,000
Leases payments (2,064,552) -
Net cash provided by financing activities 417,844 8,328,448
Net increase in cash and cash equivalents held 126,843 1,575,412
Cash and cash equivalents at the beginning of the year 2,597,299 1,021,887
Cash and cash equivalents at the end of the year - 4.1 2,724,142 2,597,299
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
P a g e | 11
APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2020 ABN 52 118 913 232
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2020
Note 1 Revenue and other income Note 2020 2019
$ $
1.1 Revenue
Commissions 27,523,456 18,430,266
Fees 5,056,193 4,919,575
Management fees 9,281,872 4,987,965
41,861,521 28,337,806
1.2 Other Income
Interest income 17,988 12,958
Other income 994,499 164,933
1,012,487 177,891
Note 2 Loss before income tax 2020 2019
$ $
The following significant revenue and expense items are relevant in explaining the
financial performance:
2.1 Impairment:
Doubtful debts (recovered) / expense (74,050) 208,728
Impairment of goodwill and other intangibles 5,304,380 1,169,651
5,230,330 1,378,379
2.2 Salaries and employment costs 2020 2019
$ $
Commissions 19,558,045 14,062,716
Director fees 535,980 484,000
Salary and wages 8,475,768 6,353,731
Superannuation 1,369,231 1,567,847
Other employment related costs 2,210,996 1,555,708
Government grants received in connection with employment costs (1,080,000) -
31,070,020 24,024,002
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2020
Note 3 Income tax Note 2020 2019
$ $
3.1 Income tax benefit
Current tax (1,291,719) (1,424,843)
(1,291,719) (1,424,843)
3.2 Deferred tax assets
Employee benefits 465,221 365,843
Accrued expenses 918,680 795,960
Provisions 52,397 41,250
AASB16 Leases - Lease Liability 154,253 -
Other 141,261 -
1,731,812 1,203,053
Set-off deferred tax liabilities 3.3 (1,731,812) (1,203,053)
Net deferred tax assets - -
3.3 Deferred tax liabilities
Intangible Asset - Rent Roll 4,875,336 5,870,910
Accrued income 107,250 -
4,982,586 5,870,910
Set-off deferred tax assets 3.2 (1,731,812) (1,203,053)
Net deferred tax liabilities 3,250,774 4,667,857
Note 4 Financial assets and financial liabilities
4.1 Cash and cash equivalents 2020 2019
$ $
Cash at bank 2,724,142 2,597,299
2,724,142 2,597,299
4.2 Trade and other receivables 2020 2019
$ $
4.2.1 Current
Trade debtors 3,528,812 3,189,133
Recoverable commissions/wages 876,861 871,650
Provision for non-recovery of trade debtor and commissions/wages (190,534) (258,728)
Other receivables 386,083 277,818
4,601,222 4,079,873
4.2.2 Non-current
Receivables 269,655 282,772
269,655 282,772
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2020 ABN 52 118 913 232
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2020
Note 4 Financial assets and financial liabilities (cont.)
4.3 Financial assets 2020 2019
$ $
4.3.1 Current
Restricted cash 1,000,000 -
1,000,000 -
4.3.2 Non-current
Bank guarantees and restricted cash 770,388 1,085,476
Financial assets carried at FVOCI – Listed shares - 56,911
770,388 1,142,387
4.4 Other assets 2020 2019
$ $
4.4.1 Current
Prepayments 7,636 397,285
Other deposits 542,840 16,207
550,476 413,492
4.5 Trade and other payables 2020 2019
$ $
4.5.1 Current
Unsecured
Trade payables 2,483,388 4,179,473
Employees’ remuneration – commissions payable 1,869,045 1,177,955
Payroll tax 1,152,496 1,121,583
Superannuation – employees 401,358 577,520
Sundry creditors and accrued expenses 843,601 2,017,403
Lease incentive - 719,158
GST and PAYG payable 2,916,649 3,255,827
Retention payable - 506,656
Other 106,615 -
9,773,152 13,555,575
4.5.2 Non-current
Other - 35,308
- 35,308
4.6 Borrowings 2020 2019
$ $
4.6.1 Current
Loans 750,000 1,350,000
Bank loans 12,093,235 12,593,235
Shareholder loans - 7,157,366
Convertible note 1,000,000 -
Other - 26,002
13,843,235 21,126,603
P a g e | 14
THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2020
Note 5 Non-financial assets and financial liabilities
5.1 Property, plant, and equipment 2020 2019
$ $
Plant and equipment – at cost 1,187,451 1,150,163
Accumulated depreciation (614,867) (467,186)
572,584 682,977
Leasehold improvements – at cost 3,407,145 3,317,312
Accumulated amortisation (1,939,915) (1,422,739)
1,467,230 1,894,573
Total plant and equipment 2,039,814 2,577,550
5.2 Leases 2020 2019#
$ $
5.2.1 Right of use assets
Properties 3,500,419 -
Printing equipment 1,144,901 -
4,645,320 -
5.2.2 Lease liabilities
Current 1,979,900 -
Non-current 3,895,077 -
5,874,977 -
# In the previous year, the group only recognised lease assets and lease liabilities in relation to leases that were classified as ‘finance
leases’ under AASB 117 Leases. The assets were presented in property, plant and equipment and the liabilities as part of the group’s
borrowings.
5.3 Intangible assets 2020 2019
$ $
Goodwill 17,077,617 17,849,242
Impairment charge 5.3.1 (5,304,380) (771,625)
11,773,237 17,077,617
Rent Roll 24,348,146 24,026,310
Accumulated amortisation (5,930,600) (2,067,715)
18,417,546 21,958,595
Others 381,968 194,664
Accumulated amortisation and impairment (196,396) (194,664)
185,572 -
Total intangibles 30,376,355 39,036,212
5.3.1 At 30 June 2020, management performed an impairment assessment on goodwill which resulted in an impairment loss
of (5,304,380) on the Group’s Top Level Real Estate Sales Business
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2020 ABN 52 118 913 232
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2020
Note 5 Non-financial assets and financial liabilities (cont.)
5.4 Provisions 2020 2019
$ $
5.4.1 Current
Employee entitlements 1,228,979 752,815
Future fund referrals 1,057,856 360,018
2,286,835 1,112,833
5.4.2 Non-current
Employee entitlements 61,377 329,638
Make good provisions 165,000 150,000
Future fund referrals 110,677 120,764
337,054 600,402
Note 6 Equity
6.1 Issued capital Note 2020 2019 2020 2019
No. No. $ $
Fully paid ordinary shares at no par value 298,954,431 103,810,047 39,395,942 27,765,049
2020 2019 2020 2019
6.1.1 Ordinary shares No. No. $ $
At the beginning of the year 103,810,047 683,793,034 27,765,049 11,480,382
Shares issued during the year:
Bonus issue of shares - 410,275,820 - -
Sub-total 1,094,068,854 -
Effect of share consolidation 30:1 - (1,057,598,807) -
Shares after consolidation - 36,470,047 -
Acquisition of Top Level Pty Ltd - 35,000,000 - 7,566,667
Acquisition of Vicus Residential Pty Ltd - 2,666,667 - 453,333
Lead manager shares - 840,000 - 252,000
Issued for cash 85,913,817 28,000,000 5,584,398 8,400,000
Share-settled payments 107,008,316 833,333 6,955,540 116,667
Conversion of performance
shares 2,222,251 - - -
Transaction costs relating to share issues - (909,045) (504,000)
At reporting date 298,954,431 103,810,047 39,395,942 27,765,049
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 6 Equity (cont.)
2020 2019 2020 2019
6.2 Options No. No. $ $
Options 102,181,760 5,588,912 928,715 583,426
At the beginning of the year 5,588,912 186,742,739 583,426 566,430
Options issued/(lapsed) during the
year:
Effect of share consolidation 30:1 - (180,517,958) - -
Options after consolidation - 6,224,781 - -
Expiry of options - (969,202) - -
Issued to director 333,333 16,996
Attaching options pursuant to
Placement 8,461,539 - - -
Attaching options pursuant to
the Entitlement Issue 79,440,194 - - -
Lead Managers options 12,899,074 - 258,192 -
Repayment of Kalonda debt 714,286 - 14,297 -
Financing costs in respect to the
convertible note options 6.2.1 - 72,800
Expiry of options (4,922,245) - - -
At reporting date 102,181,760 5,588,912 928,715 583,426
6.2.1 During the year, 2,000,000 options were granted as part of the convertible note. These options were not issued until
subsequent to year end.
6.3 Reserves 2020 2019
$ $
Share-based payment reserve 928,715 583,426
928,715 583,426
Note 7 Share-based payments Note 2020 2019
$ $
7.1 Share-based payments:
Recognised as Share-based payment expense - 133,663
Gross share-based payments - 133,663
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