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 2021
THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 232 30 June 2021
Corporate directory
Current Directors
Andrew Jensen Executive Chairman and Chief Operating Officer
Paul Niardone Managing Director
Matthew LaHood Executive Director
Adam Davey Non-executive Director
Company Secretary
Stuart Usher
Registered Office and Head Office Share Registry
Street: 68 Milligan Street 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
Hall Chadwick WA Audit Pty Ltd Australian Securities Exchange
(formerly known as Bentleys Audit & Corporate (WA) Pty Ltd) Level 40, Central Park, 152-158 St Georges Terrace
283 Rokeby Road Perth WA 6000
SUBIACO WA 6008 Telephone: 131 ASX (131 279) (within Australia)
Telephone: +61 (0)8 9426 0666 Telephone: +61 (0)2 9338 0000
Facsimile: +61 (0)2 9227 0885
Solicitors Website: www.asx.com.au
Steinepreis Paganin ASX Code AU1
Level 4, The Read Buildings
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 2021 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 23 30 June 2021
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)
70 90
Up 68% Y-o-Y
Up 39% Y-o-Y 80
60
70
50
60
40 50
58.38 80.7
30 40
20 41.86 30 47.9
28.3 20 37.9
10 16.8 28.8
9.6 10 3.8
0
0
FY17 FY18 FY19 FY20 FY21
FY17 FY18 FY19 FY20 FY21
NUMBER OF EXCHANGES (#) VALUE OF EXCHANGES ($B)
Up 58% Y-o-Y Up 66% Y-o-Y
6000 6
4,964 4.8
5000 5
4000 4
3,147 2.9
3000 2,409 3 2.4
1,540 1.8
2000 2
1000 667 1
0.2
0 0
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
NUMBER OF NEW LISTINGS (#)
Up 30% Y-o-Y
6,000
5,137
5,000
3,957
4,000 3,430
3,000
1,776
2,000
1,000 639
-
FY17 FY18 FY19 FY20 FY21
The Agency delivered strong operating results for FY2021 with all key metrics increasing during the year across our
businesses as demonstrated above. The results further reinforce the sustained growth the business has been able to
achieve year on year for the past three years. This is despite the ongoing impact of the COVID-19 pandemic and resultant
restrictions on the real estate sector nationally during the reporting period.
P a g e |1
APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2021 ABN 52 118 913 232
Company Update
For FY2021, the Group reported Annual Group Revenue of $58.38 million, a 39.46% increase year-on-year (FY2020: $41.86
million), which further highlights the effectiveness of the Company’s model.
The increase in revenue was primarily due to a 68% increase year-on-year in Combined Gross Commission Income to
$80.7 million (FY2020: $47.9 million). This figure was bolstered by 4,964 sales (up from 3,147 sales for FY2020) and
$4.8 billion worth of property sold across the combined group for FY2021 (FY2020: $2.9 billion). Pleasingly, the 57.7% year-
on-year increase in The Agency’s transaction numbers was considerably more than the 40.7% market growth for the same
period.
Property management has 3,517 Properties Under Management as at 30 June 2021, this is 27% down on prior year due to
the disposal of the WA rent roll in September 2020. This rent roll generates $7 million revenue annually.
The Company also witnessed growth in its Mortgage Solutions Australia (MSA) business with home loan approvals for
FY2021 up 24% year-on-year from $137.4 million to $170.6 million.
As at 30 June 2021, The Agency was comprised of a combined 308 sales agents (East Coast: 163, West Coast: 145), with
average Gross Commission Income (GCI) by agent increasing by over 57% 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 $71.57 million for the FY2021, a 68.29% year-on-year increase (FY2020: $42.53
million).
FY2021 FY2020 % Change
Revenue ($M) 58.38 41.86 +39%
EBITDA ($M) 6.37 2.66 +139%
EBITDA - pre AASB16 ($M) 4.57 0.71 +544%
GCI ($M) 80.66 47.92 +68%
PUM 3,517 4,838 -27%
Home Loan Approvals (MSA) ($M) 170.6 137.4 +24%
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 FY2021 delivering three quarters of positive EBITDA as well as positive cash flow,
a first for the Company. For FY2021, the Group recorded EBITDA profit of approximately $6.37 million. EBITDA was
calculated as provided below:
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 23 30 June 2021
Company Update
EBITDA calculation 2021 2020
$ $
Loss after tax (1,856,455) (9,065,337)
Income tax benefit (1,894,024) (1,291,720)
Loss before tax (3,750,479) (10,357,057)
Interest income (18,724) (17,988)
Depreciation and amortisation 5,465,814 6,038,609
Embedded derivative non-cash financing costs 2.1 2,243,784 -
Impairment 400,000 5,230,330
Interest and finance costs 2,010,936 1,769,193
Profit on Sale of Assets1 (200,612) -
Share-based payments 215,946 -
EBITDA 6,366,665 2,663,087
AASB 16 Leases impact2 (1,793,866) (1,951,373)
EBITDA (pre-AASB16 Leases impact) 4,572,799 711,714
EBITDA was $6.37 million. After adjusting for AASB 16 Leases impact, positive EBITDA for the year was $4.57 million which
compares to positive EBITDA of $0.71 million for FY2020, a $3.86 million improvement.
The net assets of the Group have increased from 30 June 2020 by $2.53 million to $14.14 million at 30 June 2021 (2020:
$11.61 million).
The Group incurred a net loss after tax for the year of $1.86 million (2020: $9.07 million loss). It is important to note that
this was primarily impacted by the embedded derivative non-cash financing cost ($2.24 million), interest and finance costs
($2.01 million), and depreciation and amortisation ($5.47 million).
As at 30 June 2021, the Group's cash and cash equivalents increased from 30 June 2020 by $2.37 million to $5.10 million at
30 June 2021 (2020: $2.72 million).
Appendix 4E 2020
$’000s $
Cash at bank (reference 4E Note 4.1) 5,096
Cash classified as
◼ Bank Guarantees 613
Reporting in the 30 June 2021 Appendix 4C 5,709
Government incentives and related grants have been received during the year and were used to also support employee
sales agents in Perth. These have been included in operational cash flows.
1 Sale of West Coast rent roll assets to Managex. Includes profit on sale of net assets disposed of $123K plus gain on exit of lease of $77K
2
AASB 16 Leases was adopted from 1 July 2019. The above demonstrates finance costs and amortisation, which prior to the adoption AASB
16 was recognised as rent expense.
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2021 ABN 52 118 913 232
Company Update
1.4. Future Developments, Prospects and Business Strategies
With the Group having achieved a profitable scale, The Agency’s national focus has now shifted to quality agent recruitment
for driving growth while maintaining a sustainable financial framework and continuing to identify and implement
efficiencies into its business.
The Company has continued to work proactively with its primary bank debt provider, Macquarie Bank, regarding a
reduction in funding costs as well as the release of personal guarantees on its secured debt facilities, both of which have
been approved by the debt provider and announced on the 4th August 2021.
The Agency is active in pursuing new business channels and entering new markets, along with new 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 $8 million per annum. Total estimated market asset value
of the rent roll and loan book is estimated to be greater than $25 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 23 30 June 2021
Results for announcement to the Market
for the year ended 30 June 2021
1 REPORTING PERIOD (item 1)
◼ Report for the financial year ended: 30 June 2021
◼ Previous corresponding period is the year months ended: 30 June 2020
Movement Percentage Amount
2 RESULTS FOR ANNOUNCEMENT TO THE MARKET
% $
◼ Increase in revenues from ordinary activities (item 2.1) 39.46 to 58,380,590
◼ Decrease in loss from ordinary activities after tax
79.52 to (1,856,455)
attributable to members (item 2.2)
◼ Decrease in loss after tax attributable to members (item 2.3) 79.52 to (1,856,455)
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):
The loss after tax includes an embedded derivative non-cash financing cost of $2,243,784 relating to the issue of
convertible notes. 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 2021 ABN 52 118 913 232
Results for announcement to the Market
for the year ended 30 June 2021
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 (1,856,455) (9,065,337)
Net assets 14,137,261 11,611,346
Less: Intangible assets (including net deferred tax balances) and right of use (27,778,071) (31,770,901)
assets
Net tangible assets (13,640,810) (20,159,555)
No. No.
Fully paid ordinary shares 428,575,916 298,954,431
Weighted average number of ordinary shares outstanding during the year used 353,288,916 251,793,328
in calculation of basic EPS
₵ ₵
b. Net tangible assets backing per share (cents) (item 9): (3.183) (5.189)
c. Earnings per share attributable to owners of the parent (cents) (item 14.1): (0.525) (3.600)
The Group does not report diluted earnings per share, as dilution is not applied
to annual losses generated by the Group. During the 2021 financial year the
Group had 333,333 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) The Agency Property Management WA Pty Ltd
◼ Date(s) of loss of control (item 10.2) 29 September 2020
c. Contribution to consolidated profit (loss) from ordinary activities after $51,579
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 $1,823
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 23 30 June 2021
Results for announcement to the Market
for the year ended 30 June 2021
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 2021 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 2021 ABN 52 118 913 232
Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2021
Note 2021 2020
$ $
Continuing operations
Revenue 1.1 58,380,590 41,861,521
Other income 1.2 1,510,869 1,012,487
59,891,459 42,874,008
Advertising and promotion expenses (1,639,614) (1,242,399)
Computers and information technology expenses (1,407,621) (1,330,334)
Consultancy fees (2,048,190) (1,918,495)
Depreciation and amortisation (5,465,814) (6,038,609)
Embedded derivative non-cash financing costs 2.1 (2,243,784) -
Impairment 2.2 (400,000) (5,230,330)
Interest and finance costs (2,010,936) (1,769,193)
Legal and professional fees (1,328,244) (998,384)
Occupancy costs (570,823) (984,139)
Salaries and employment costs 2.3 (44,182,308) (31,070,020)
Share-based payments expense (215,946) -
Other expenses (2,128,658) (2,649,162)
Loss before tax (3,750,479) (10,357,057)
Income tax benefit 3.1 1,894,024 1,291,720
Net loss for the year (1,856,455) (9,065,337)
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 (1,856,455) (9,065,337)
6,366,665 2,663,087
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 23 30 June 2021
Consolidated statement of financial position
as at 30 June 2021
Note 2021 2020
$ $
Current assets
Cash and cash equivalents 4.1 5,096,435 2,724,142
Trade and other receivables 4.2.1 7,953,403 4,601,222
Financial assets 4.3.1 - 1,600,000
Other current assets 4.4.1 723,438 550,476
Total current assets 13,773,276 9,475,840
Non-current assets
Trade and other receivables 4.2.2 163,010 269,655
Financial assets 4.3.2 612,860 170,388
Property, plant, and equipment 5.1 1,577,659 2,039,814
Right of use asset 5.2.1 4,894,370 4,645,320
Intangible assets 5.3 24,240,451 30,376,355
Total non-current assets 31,488,350 37,501,532
Total assets 45,261,626 46,977,372
Current liabilities
Trade and other payables 4.5.1 11,194,122 9,773,151
Borrowings 4.6.1 - 13,843,235
Provisions 5.4.1 2,565,406 2,286,835
Leases 5.2.2 1,828,270 1,979,900
Total current liabilities 15,587,798 27,883,121
Non-current liabilities
Borrowings 4.6.2 5,000,000 -
Financial liabilities 4.7.1 4,882,672 -
Provisions 5.4.2 280,245 337,054
Leases 5.2.2 4,016,900 3,895,077
Deferred tax liabilities 3.3 1,356,750 3,250,774
Total non-current liabilities 15,536,567 7,482,905
Total liabilities 31,124,365 35,366,026
Net assets 14,137,261 11,611,346
Equity - -
Issued capital 6.1.1 43,635,166 39,395,942
Reserves 6.4 1,071,861 928,715
Accumulated losses (30,569,766) (28,713,311)
Total equity 14,137,261 11,611,346
(2,120,270) (18,414,917)
(13,640,810) (15,514,235)
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 2021 ABN 52 118 913 232
Consolidated statement of changes in equity
for the year ended 30 June 2021
Note Contributed Accumulated Options Total
equity Losses Reserve equity
$ $ $ $
Balance at 1 July 2019 27,765,049 (19,317,468) 583,426 9,031,007
Change in accounting policy - (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 - (9,065,337) - (9,065,337)
Other comprehensive income for the year attributable
owners of the parent - - - -
Total comprehensive income for the year attributable
owners of the parent - (9,065,337) - (9,065,337)
Transaction with owners, directly in equity
Shares issued during the year (net of costs) 6.1.1 11,630,893 - - 11,630,893
Options granted during the year 6.2 - - 345,289 345,289
Balance at 30 June 2020 39,395,942 (28,713,311) 928,715 11,611,346
Balance at 1 July 2020 39,395,942 (28,713,311) 928,715 11,611,346
Loss for the year attributable owners of the parent - (1,856,455) - (1,856,455)
Other comprehensive income for the year attributable
owners of the parent - - - -
Total comprehensive income for the year attributable
owners of the parent - (1,856,455) - (1,856,455)
Transaction with owners, directly in equity
Shares issued during the year (net of costs) 6.1.1 3,552,768 - - 3,552,768
Options granted during the year 6.2 - - 437,946 437,946
Options exercised during the year 686,456 (294,800) 391,656
Balance at 30 June 2021 43,635,166 (30,569,766) 1,071,861 14,137,261
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 23 30 June 2021
Consolidated statement of cash flows
for the year ended 30 June 2021
Note 2021 2020
$ $
Cash flows from operating activities
Receipts from customers 71,571,138 42,529,458
Payments to suppliers and employees (65,947,300) (40,821,013)
Interest received 18,440 17,988
Finance costs (998,889) (1,391,729)
Net cash used in operating activities 4,643,389 334,704
Cash flows from investing activities
Purchase of property, plant, and equipment (242,158) (282,527)
Advancement of bank guarantee - (481,498)
Return of bank guarantee - 346,078
Purchase of intangibles - (192,758)
Deferred purchase consideration paid - (15,000)
Loans to other entities (225,000) -
Net cash received on disposal of asset group 2,623,330 -
Net cash used in investing activities 2,156,172 (625,705)
Cash flows from financing activities
Proceeds from issue of shares - 5,611,773
Proceeds from exercise of options 391,656 -
Share issue costs (60,000) (397,861)
Repayments of borrowings (7,843,235) (2,731,516)
Proceeds from borrowings 5,000,000 -
Payment of principal portion of lease liabilities (1,915,689) (2,064,552)
Net cash provided by financing activities (4,427,268) 417,844
Net increase in cash and cash equivalents held 2,372,293 126,843
Cash and cash equivalents at the beginning of the year 2,724,142 2,597,299
Cash and cash equivalents at the end of the year - 4.1 5,096,435 2,724,142
The consolidated statement of cash flows 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 2021 ABN 52 118 913 232
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2021
Note 1 Revenue and other income Note 2021 2020
$ $
1.1 Revenue
Commissions 45,342,382 27,523,456
Fees 5,563,760 5,056,193
Management fees 7,474,448 9,281,872
58,380,590 41,861,521
1.2 Other Income
Interest income 18,724 17,988
Gain on disposal of assets 123,225 -
Gain on exit of lease 77,387 -
Other income 567,121 994,499
Government grants received – Cash Flow Boost 724,412 -
1,510,869 1,012,487
Note 2 Loss before income tax 2021 2020
$ $
The following significant revenue and expense items are relevant in explaining the
financial performance:
2.1 Embedded derivative non-cash financing costs:
◼ Embedded Derivative - Finance cost 256,796 -
◼ Embedded Derivative - Fair value adjustment 1,986,988 -
2,243,784 -
2.2 Impairment:
◼ Doubtful debts expense / (recovered) 400,000 (74,050)
◼ Impairment of goodwill and other intangibles - 5,304,380
400,000 5,230,330
2.3 Salaries and employment costs
◼ Commissions 31,656,030 19,558,045
◼ Director fees 144,000 535,980
◼ Salary and wages 7,899,320 8,475,768
◼ Superannuation 2,146,579 1,369,231
◼ Other employment related costs 3,746,379 2,210,996
◼ Government grants received in connection with employment costs (1,410,000) (1,080,000)
44,182,308 31,070,020
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 23 30 June 2021
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2021
Note 3 Income tax Note 2021 2020
$ $
3.1 Income tax benefit
Deferred tax (1,894,024) (1,291,720)
(1,894,024) (1,291,720)
3.2 Deferred tax assets
Employee benefits 558,583 465,221
Accrued expenses 1,747,300 918,680
Provisions 177,161 52,397
AASB16 Leases - Lease Liability 182,453 154,253
Other 309,093 141,261
2,974,590 1,731,812
Set-off deferred tax liabilities 3.3 (2,974,590) (1,731,812)
Net deferred tax assets - -
3.3 Deferred tax liabilities
Intangible Asset - Rent Roll 4,331,340 4,875,336
Accrued income - 107,250
4,331,340 4,982,586
Set-off deferred tax assets 3.2 (2,974,590) (1,731,812)
Net deferred tax liabilities 1,356,750 3,250,774
Note 4 Financial assets and financial liabilities
4.1 Cash and cash equivalents 2021 2020
$ $
Cash at bank 5,096,435 2,724,142
5,096,435 2,724,142
4.2 Trade and other receivables 2021 2020
$ $
4.2.1 Current
Trade debtors 6,272,604 3,677,980
Recoverable commissions/wages 1,125,019 876,861
Provision for non-recovery of trade debtor and commissions/wages (150,000) (339,702)
Other receivables 705,780 386,083
7,953,403 4,601,222
4.2.2 Non-current
Receivables 163,010 269,655
163,010 269,655
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2021 ABN 52 118 913 232
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2021
Note 4 Financial assets and financial liabilities (cont.)
4.3 Financial assets 2021 2020
$ $
4.3.1 Current
Restricted cash - 600,000
Working capital – trust account - 1,000,000
- 1,600,000
4.3.2 Non-current
Bank guarantees and restricted cash 612,860 170,388
612,860 170,388
4.4 Other assets 2021 2020
$ $
4.4.1 Current
Prepayments 305,748 7,636
Other deposits 817,690 542,840
Less: provision for impairment (400,000) -
723,438 550,476
4.5 Trade and other payables 2021 2020
$ $
4.5.1 Current
Unsecured
Trade payables 2,552,376 2,483,388
Employees’ remuneration – commissions payable 3,706,455 1,869,045
Payroll tax payable 353,739 1,152,496
Superannuation – employees 392,778 401,358
Sundry creditors and accrued expenses 2,512,237 843,601
GST and PAYG payable 1,676,537 2,916,649
Other - 106,614
11,194,122 9,773,151
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 23 30 June 2021
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2021
Note 4 Financial assets and financial liabilities (cont.)
4.6 Borrowings 2021 2020
$ $
4.6.1 Current
Loans - 750,000
Bank loans - 12,093,235
Convertible note - 1,000,000
- 13,843,235
4.6.2 Non-current
Bank loans 5,000,000 -
5,000,000 -
4.7 Financial liabilities 2021 2020
$ $
4.7.1 Non-current
Convertible note:
◼ Debt component 895,101 -
◼ Derivative financial liability conversion option 3,987,571 -
4,882,672 -
Note 5 Non-financial assets and financial liabilities
5.1 Property, plant, and equipment 2021 2020
$ $
Plant and equipment – at cost 1,253,362 1,187,451
Accumulated depreciation (725,387) (614,867)
527,975 572,584
Leasehold improvements – at cost 3,447,970 3,407,145
Accumulated amortisation (2,398,286) (1,939,915)
1,049,684 1,467,230
Total plant and equipment 1,577,659 2,039,814
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2021 ABN 52 118 913 232
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2021
Note 5 Non-financial assets and financial liabilities (cont.)
5.2 Leases 2021 2020
$ $
5.2.1 Right of use assets
Properties 3,704,241 3,500,419
Printing equipment 1,190,129 1,144,901
4,894,370 4,645,320
5.2.2 Lease liabilities
Current 1,828,270 1,979,900
Non-current 4,016,900 3,895,077
5,845,170 5,874,977
5.3 Intangible assets 2021 2020
$ $
Goodwill 10,704,236 17,077,617
Impairment charge - (5,304,380)
10,704,236 11,773,237
Rent Roll and trail book 21,134,545 24,348,146
Accumulated amortisation (7,851,603) (5,930,600)
13,282,942 18,417,546
Trademarks 268,420 268,420
Accumulated amortisation and impairment (268,420) (268,420)
- -
Others 291,875 381,968
Accumulated amortisation and impairment (38,602) (196,396)
253,273 185,572
Total intangibles 24,240,451 30,376,355
5.4 Provisions 2021 2020
$ $
5.4.1 Current
Employee entitlements 1,406,422 1,228,979
Future fund referrals 1,158,984 1,057,856
2,565,406 2,286,835
5.4.2 Non-current
Employee entitlements 62,742 61,377
Make good provisions 149,548 165,000
Future fund referrals 67,955 110,677
280,245 337,054
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THE AGENCY GROUP AUSTRALIA LTD APPENDIX 4E
AND CONTROLLED ENTITIES Preliminary final report
ABN 52 118 913 23 30 June 2021
Notes to the Appendix 4E preliminary final report
for the year ended 30 June 2021
Note 6 Equity
6.1 Issued capital 2021 2020 2021 2020
No. No. $ $
Fully paid ordinary shares at no par value 428,575,916 298,954,431 43,635,166 39,395,942
2021 2020 2021 2020
6.1.1 Ordinary shares No. No. $ $
At the beginning of the year 298,954,431 103,810,047 39,395,942 27,765,049
Shares issued during the year:
◼ Issued for cash - 85,913,817 - 5,584,398
◼ Equity-settled payments - 107,008,316 - 6,955,540
◼ Conversion of performance shares - 2,222,251 - -
◼ Convertible note conversion 115,621,485 - 3,612,768 -
◼ Exercise of $0.027 options 12,000,000 - 546,000 -
◼ Exercise of $0.0338 options 2,000,000 - 140,456 -
Transaction costs relating to share - - (60,000) (909,045)
issues
At reporting date 428,575,916 298,954,431 43,635,166 39,395,942
6.2 Options 2021 2020 2021 2020
No. No. $ $
Options 333,333 104,181,760 1,071,861 928,715
At the beginning of the year 104,181,760 5,588,912 928,715 583,426
Options issued/(lapsed) during the
year:
◼ Attaching pursuant to a - 8,461,539 - -
Placement
◼ Attaching to an Entitlement Issue - 34,495,371 - -
◼ Equity-settled payments - 44,944,823 -
◼ Lead Managers options - 12,899,074 - 258,192
◼ Repayment of Kalonda debt - 714,286 - 14,297
◼ Financing costs in respect to the - 2,000,000 - 72,800
convertible note options
◼ Issued in connection with 12,000,000 - 222,000 -
Convertible notes
◼ Exercise of $0.027 options (12,000,000) - (222,000) -
◼ Exercise of $0.0338 options (2,000,000) - (72,800) -
◼ Granted (and to be issued) to - - 215,946 -
CEO in accordance with
employment agreements
◼ Expiry of options (101,848,427) (4,922,245) - -
At reporting date 333,333 104,181,760 1,071,861 928,715
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APPENDIX 4E THE AGENCY GROUP AUSTRALIA LTD
Preliminary final report AND CONTROLLED ENTITIES
30 June 2021 ABN 52 118 913 232
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note 6 Equity (cont.)
6.3 Performance shares 2021 2020
No. No.
Performance shares 1,555,558 1,555,558
6.3.1 The 1,555,558 performance shares failed to vest (by achieving a 20-day volume VWAP on the ASX which equals or
exceeds 3 times the re-quotation price of $0.02, at any time within 24 months of settlement) and expired. These
performance shares will convert to five only ordinary shares.
6.4 Reserves 2021 2020
$ $
Share-based payment reserve 1,071,861 928,715
1,071,861 928,715
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