ACROW LIMITED — Annual Report 2019

Aug 28, 2019

==> picture [151 x 60] intentionally omitted <==

Acrow Formwork and Constructions Services Limited ABN 36 124 893 465

Registered office

Level 5, 126 Phillip Street, SYDNEY, NSW, AUSTRALIA, 2000

APPENDIX 4E PRELIMINARY FINAL REPORT Under ASX Listing Rule 4.3A

p +61 2 8072 1400 f +61 2 8072 1440 e info@acrow.com.au w www.acrow.com.au

Acrow Formwork and Construction Services Limited

ABN 36 124 893 465

Details of Reporting Period

Reporting Period 12 months ended 30 June 2019 Previous Reporting Period 12 months ended 30 June 2018

Results for announcement to the market

	2019	2018	% change
	dollars	dollars
Revenue from ordinary activities	70,129,236	15,556,001	Up 350.8%
Net profit after tax from ordinary activities attributable to	4,948,715	10,510,658	Down 52.9%
members
Significant item – Gain on bargain purchase of Acrow Holdings		(10,825,098)	Down 100.0%
Share based payments and significant costs	2,558,492	968,185	Up 164.3%
Net profit after tax from ordinary activities excluding significant	7,507,206	653,744	nm
costs
	Cents	Cents
Basic earnings per share (cents)	2.88	19.28
Diluted earnings per share (cents)	2.69	19.28
Basic earnings per share (cents) excluding significant costs	4.36	1.20
Diluted earnings per share (cents) excluding significant costs	4.08	1.20
Net tangible asset per share (cents)	24.00	23.96
Dividend distributions		Amount per security
			(Cents)
Final dividend per share (cents) – unfranked			1.0
Record date for determining entitlements to the dividend		Thursday, 24 October 2019
Dividend payment date		Friday, 15 November 2019
Dividend Reinvestment Plan is in place, last date for election to participate		Friday, 25 October 2019
The Company paid an interim for the half year ended 31 December 2018			1.0
unfranked on the 12 April 2019

1

Dividend

The Company has declared an unfranked dividend of 1.0 cent per share for the period ending 30 June 2019. The Dividend will be paid on Friday 15 November 2019 to holders on the Company’s fully paid ordinary share register on Thursday, 24 October 2019 (Record Date).

Dividend Reinvestment Plan

The Company has a Dividend Reinvestment Plan (DRP) that will be available to holders of fully paid ordinary shares (shares). The DRP allows shareholders to reinvest part or all of their dividends into new Acrow Formwork and Construction Limited shares. The issue price of the shares will be at a 2.5% discount to the Market Value which is calculated as the arithmetic average of the daily volume weighted average sale price for a Share (rounded to four decimal places) sold through a Normal Trade on ASX on the ten trading days commencing on the second trading day following the Record Date. The last date for receipt of an election notice for participation in the DRP is Friday, 25 October 2019.

Control gained over entities

On 31 August 2018 Acrow Formwork and Construction Services Limited acquired all the shares of Natform Pty Ltd Natform (QLD) Pty Ltd, a provider of screen-based formwork system which supports the construction of commercial and residential high-rise buildings and civil infrastructure in the NSW, ACT and Queensland markets. The acquisition was financed through the issue of 10,000,000 shares in Acrow Formwork and Construction Services Limited, $7,000,000 of debt and existing cash reserves. Two additional instalments of $2,250,000 are payable in September 2019 and 2020 and a further $2,000,000 is payable if certain performance targets are met.

Commentary

The Acrow business continued to perform strongly for the 12 months to 30 June 2019, with the inclusion of 10 months of the acquired Natform business.

The business continued to re-base from the highly fragmented and price sensitive residential scaffold market towards value added, highly engineered civil formwork solutions market.

On an underlying basis, the key highlights for the year included:

• Sales revenue of $71m, up 9% on the prior year reflecting solid growth in the Formwork business[1] and the contribution from the Natform acquisition,

• Underlying EBITDA of $11.6m, was up 9% and margin was flat

• Underlying net profit after tax of $7.5m

• Significant items of $2.6m primarily comprising share-based payments ($1.4m), nonrecurring acquisition related costs and finance restructuring costs

• Underlying earnings per share was 4.4cps.

• A final dividend of 1.0cps (unfranked) was declared, up from a maiden final dividend of 0.5cps in FY18

• Balance sheet remains strong with net gearing at 8%

• Operating cash profit of $8.8m was flat on the prior year.

The business maintains a strong balance sheet including a net debt position of $3.6m with significant headroom on its facility with Westpac.

1 Formwork business unit comprises Formwork hire and Formwork Sales and Consumables segments.

2

Acrow Formwork and Construction Services Limited ACN 124 893 465

Preliminary Financial Report 30 June 2019

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Consolidated Statement of Comprehensive Income

For the year ended 30 June 2019

In dollars Note Revenue 3 Other income 4 Personnel expenses Sub-contract labour costs Inventory purchased, net of changes in finished goods Property costs Depreciation Other expenses 5 Results from operating activities Finance income Finance cost Net finance income/(expense) Profit/(loss) before income tax Income tax expense 6 Profit/(loss) for the year Other comprehensive income Items that may be reclassified to profit or loss Foreign operations - foreign currency translation differences Total comprehensive income for the year Earnings per share 9 Basic earnings / (loss) per share (cents) Diluted earnings / (loss) per share (cents)	2019 2018 70,129,236 15,556,061 881,092 11,086,185 (22,589,627) (6,398,775) (18,005,200) (3,575,132) (10,390,596) (2,291,490) (4,203,517) (803,861) (3,261,936) (445,754) (6,587,715) (2,402,890)
	5,971,738 10,724,344
	11,261 34,076 (975,131) (247,762)
	(963,870) (213,686)
	5,007,868 10,510,658 (59,153) -
	4,948,715 10,510,658
	(256) (39)
	4,948,458 10,510,619
	Cents Cents 2.88 19.28 2.69 19.28

The above statement should be read in conjunction with the accompanying notes.

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Consolidated Statement of Financial Position

As at 30 June 2019

In dollars Note Assets Cash and cash equivalents Other financial assets Receivables Inventories Prepayments and other assets Assets held for sale Total current assets Property, plant & equipment Intangibles Other financial assets Total non-current assets Total assets Liabilities Trade payables Other payables Employee benefits Borrowings Current tax liabilities Liabilities held for sale Total current liabilities Other payables Employee benefits Borrowings Provisions Deferred tax liabilities Total non-current liabilities Total liabilities Net assets Share capital 8 Reserves Retained earnings / (accumulated losses) Total equity	2019 2018 3,289,617 4,917,837 - 491,827 13,498,306 10,548,983 3,413,361 2,111,446 708,663 125,106 71,296 67,650
	20,981,243 18,262,849
	46,992,624 31,710,998 7,301,902 - - 311,583
	54,294,526 32,022,581
	75,275,769 50,285,430
	10,098,831 7,298,117 2,308,652 - 2,962,801 3,095,040 2,103,192 - 556,301 - 65,878 62,508
	18,095,654 10,455,665
	2,128,080 - 456,609 331,597 4,835,900 - 452,474 452,474 1,683,999 -
	9,557,063 784,071
	27,652,717 11,239,736
	47,623,052 39,045,694
	34,814,339 29,377,927 2,062,063 679,297 10,746,650 8,988,470
	47,623,052 39,045,694

The above statement should be read in conjunction with the accompanying notes.

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Consolidated Statement of Changes in Equity

For the year ended 30 June 2019

For the year ended 30 June 2019
In dollars Balance at 1 July 2017 Total comprehensive income for the period Profit/(loss) for the period Other comprehensive income Total comprehensive income Transactions with owners of the Company Shares issued net of costs Equity settled share base payments Options exercised Balance at 30 June 2018 Balance at 30 June 2018 as previously reported Adjustment from adoption of AASB 9 net of tax Restated balance at 1 July 2018 Total comprehensive income for the period Profit/(Loss) for the period Other comprehensive income Total comprehensive income Transactions with owners of the Company Shares issued, net of costs Dividends paid to shareholders Equity settled share base payments Options exercised Balance at 30 June 2019	Share capital Share based payments reserve Foreign currency translation reserve Retained earnings / (accumulated losses) Total equity 1,865,819 66,502 56,325 (1,522,188) 466,458 - - - 10,510,658 10,510,658 - - (39) - (39)
	- - (39) 10,510,658 10,510,619 26,760,233 - - - 26,760,233 - 558,384 - - 558,384 751,875 (1,875) - - 750,000
	29,377,927 623,011 56,286 8,988,470 39,045,694
	29,377,927 623,011 56,286 8,988,470 39,045,694 - - - (584,486) (584,486)
	29,377,927 623,011 56,286 8,403,984 38,461,209
	- - - 4,948,715 4,948,715 - - (256) - (256)
	- - (256) 4,948,715 4,948,458
	5,249,028 - - - 5,249,028 - - - (2,606,047) (2,606,047) - 1,420,406 - - 1,420,406 187,384 (37,384) - - 150,000
	34,814,339 2,006,033 56,030 10,746,652 47,623,054

The above statement should be read in conjunction with the accompanying notes.

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Consolidated Statement of Cash Flow

For the year ended 30 June 2019

In dollars Note Cash flows from operating activities Receipts from customers Payments to suppliers and employees Cash generated from operations Significant costs Finance income Net cash from operating activities Cash flows from investing activities Proceeds from disposal of property, plant and equipment Purchase of property, plant and equipment Consideration paid for controlled entities net of cash acquired Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Capital raising costs Proceeds from exercise of options Proceeds from borrowings Repayment of borrowings Dividends paid Finance costs paid Net cash from financing activities Net increase/(decrease) in cash and cash equivalents Effect of exchange rate fluctuations on cash held Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June	2019 2018 66,519,403 17,341,219 (57,078,524) (12,402,054)
	9,440,879 4,939,165 (896,610) (968,185) 11,261 34,076
	8,555,531 4,005,056
	2,151,417 338,154 (9,784,502) (1,086,382) (6,729,486) (9,576)
	(14,362,571) (757,804)
	- 27,400,000 - (1,902,991) 150,000 750,000 8,091,239 800,000 (1,152,147) (25,607,095) (2,107,019) - (803,254) (247,762)
	4,178,819 1,192,512
	(1,628,222) 4,439,764 2 (2,647) 4,917,837 480,720
	3,289,617 4,917,837

The above statement should be read in conjunction with the accompanying notes.

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Notes to the Financial Statements

1. Reporting Entity

Acrow Formwork and Construction Services Limited (Acrow or the Company) is a limited company whose shares are quoted on the Australian Securities Exchange under the issuer code “ACF”. The consolidated financial statements of Acrow for the year ended 30 June 2019 comprise of the Company and its controlled entities (the Group). The Group is a for-profit entity and is primarily involved in the hire and sale of formwork and construction related services. Acrow’s Consolidated Annual Financial Report for previous reporting periods are available upon request from the Company’s registered office at Level 5, 126 Phillip Street, SYDNEY, NSW, AUSTRALIA, 2000 or at www.acrow.com.au.

2. Basis of Preparation

(a) Basis of accounting

The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001 for the purpose of fulfilling the Group’s obligation under the Australian Securities Exchange (ASX). They were authorised for issue by the Board of Directors on 29 August 2019.

Following the acquisition of Natform Pty Limited and Natform (QLD) Pty Limited on 31 August 2018, the preliminary financial statements include those subsidiaries results from 1 September 2018 to 30 June 2019.

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for derivatives that are measured at fair value.

(c) Functional and presentation currency

These financial statements are presented in Australian dollars, which is the Group’s functional currency.

(d) Use of estimates and judgements

The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in:

• note 7 – utilisation of tax losses

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Notes to the Financial Statements (continued)

3. Revenue In dollars Revenue from hire of equipment, provision of labour and contracting services Sale of goods 4. Other Income In dollars Net gain on disposal of property, plant and equipment Significant item - gain on bargain purchase 5. Other Expenses In dollars Significant items Freight costs Motor vehicle expenses IT and telecommunication expenses Insurance expenses Plant & equipment operation expenses Consumables Travelling expenses Others 6. Income Tax (Expense)/Benefit In dollars Profit/(loss) before income tax Income tax (expense)/benefit using the Company’s domestic tax rate (30%) (Increase)/decrease in income tax expense due to: Non-deductible/(taxable) amounts (Increase)/decrease in income tax expense due to: Origination and reversal of temporary differences Tax losses not brought to account Recognition of tax losses not previously brought to account Income tax (expense)/benefit	2019 2018 54,945,620 12,513,163 15,183,616 3,042,898
	70,129,236 15,556,061
	881,092 261,087 - 10,825,098
	881,092 11,086,185
	(896,610) (968,185) (810,466) (307,812) (825,575) (225,025) (876,211) (245,924) (593,153) (160,688) (647,904) (130,641) (318,622) (66,592) (425,853) (77,636) (1,193,322) (220,388)
	(6,587,715) (2,402,891)
	5,007,868 10,510,658
	(1,502,360) (3,153,197) (456,930) 3,247,530 1,775,998 (170,995) (174,591) - 298,730 76,662
	(59,153) -

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Notes to the Financial Statements (continued)

7. Unrecognised Deferred Tax Assets and Liabilities In dollars Deferred tax assets have not been recognised in respect of the following items: Revenue tax losses Capital losses Temporary differences	2019 2018 13,654,771 13,083,920 202,441 202,441 (2,911,668) (1,088,873)
	10,945,544 12,197,488

While tax losses and temporary differences do not expire under current tax legislation, deferred tax assets have not been recognised in respect of these items as the Group has experienced a number of years without taxable income and therefore recovery is not considered probable.

The potential benefit of the deferred tax asset in respect of tax losses carried forwards will only be obtained if:

• (i) The Group continues to derive future assessable income of a nature and an amount sufficient to enable the benefit to be realised;

• (ii) The Group continues to comply with the conditions for deductibility imposed by the law;

• (iii) No changes in tax legislation adversely affect the Group in realising the asset; and

• (iv) The Group passes the continuity of ownership test, or the same business test as outlined by the Australia Taxation Office.

8. Share Capital Number of shares On issue of 1 July Issue of shares (i) Share consolidation (ii) Issue of shares for cash (iii) Issue of shares in exchange for debt (iv) Exercise of share options (v)	2019 2018 162,982,615 313,328,147 11,273,839 25,000,000
	174,256,454 338,328,147 - (321,411,654)
	174,256,454 16,916,493 - 136,000,000
	174,256,454 152,916,493 - 6,316,122 750,001 3,750,000
	175,006,455 162,982,615

• (i) 10,000,000 shares under 12 month escrow were issued on 31 August 2018 to as part of the consideration for the acquisition of the Natform companies at $0.475 fair value per share; 380,348 shares were issued at $0.51 per share following dividend declaration on 28 August 2018 pursuant to the Dividend Reinvestment Plan (DRP); 893,491 shares were issued at $0.34 per share following FY2019 interim dividend declaration on 12 April 2019 also pursuant to the Dividend Reinvestment Plan (DRP);

• (ii) Consolidation of shares on 22 March 2018 at a conversion rate of 20:1;

• (iii) 136,000,000 shares were issued on 27 March 2018 at $0.20 per share;

• (iv) 6,316,000 shares were issued at $0.20 per share to extinguish existing debt; and

• (v) All ACFOP2 options, being 750,001 units (post share consolidation) were exercised at $0.20 per share.

The holders of these shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company.

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Notes to the Financial Statements (continued)

Dividends

A final unfranked dividend of $864,917 for the year ended 30 June 2018 was paid on 22 October 2018 at 0.5 cent per share, with 380,348 new shares issued as part of the DRP.

An interim unfrank dividend of $1,741,130 for FY 2019 was paid on 12 April 2019 at 1.0 cent per share, with 893,491 new shares issued also as part of the DRP.

Subsequent to balance date the Directors declared an unfranked dividend of 1.0 cent per share on 29 August 2019.

9. Earnings Per Share

Basic Earning per Share (EPS) is calculated by dividing profit for the year attributable to ordinary equity holders of the Parent by the weighted average number of ordinary shares outstanding during the year.

Diluted EPS is calculated by dividing the net profit attributable to ordinary equity holders of the Parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

The following table reflects the income and share data used in the basic and diluted EPS computations:

In dollars Earnings reconciliation Profit excluding significant items Net share-based payments and significant items* Net profit	2019 2018 7,507,206 653,745 (2,558,492) 9,856,913
	4,948,715 10,510,658

* includes share-based payments of $1.4m, finance restructuring costs and significant items per note 5.

	Number of	shares
Number of ordinary shares
Weighted average number of ordinary shares used in the	172,002,461	54,503,462
calculation of basic EPS
Weighted average number of ordinary shares used in the	183,997,435	54,503,462
calculation of dilutive EPS
Basic EPS excluding significant items (cents per share)	4.36	1.20
Diluted EPS excluding significant items (cents per share)	4.08	1.20
Basic earnings / (loss) per share (cents)	2.88	19.28
Diluted earnings / (loss) per share (cents)	2.69	19.28

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Notes to the Financial Statements (continued)

10. Acquisition of Natform Pty Ltd and Natform (QLD) Pty Ltd

On 31 August 2018 Acrow acquired 100% of the issued shares of Natform Pty Ltd and Natform (QLD) Pty Ltd (collectively Natform). Natform is a supplier of screen-based formwork systems which support the construction of commercial and residential high-rise buildings and civil infrastructure across the NSW, ACT and QLD markets.

The consideration comprised of $7,105,341 in cash, 10,000,000 Acrow shares valued at $0.475 each, escrowed for 12 months from 31 August 2018, two instalments of deferred consideration of $2,250,000 due on 7 September 2019 and 7 September 2020 respectively, and contingent payments of $1,000,000 cash or an equivalent number of shares based on a price of $0.40 per share should Natform EBITDA reach $4,600,000 between 1 September 2018 and 31 August 2019 and a further $1,000,000 cash or an equivalent number of shares based on a price of $0.60 per share should EBITDA reach $5,000,000 between 1 September 2019 and 31 August 2020. As the contingent consideration EBITDA target was not considered probable, no amounts have been included in the consideration.

The following table represents the amounts recognised for assets acquired and liabilities assumed at the date of acquisition.

Natform Pty Ltd and Natform (QLD) Pty Ltd

In dollars Assets Cash and cash equivalents Receivables Inventory Property, plant and equipment Other Total assets Liabilities Trade and other payables Provisions Provision for income tax Deferred tax liabilities Total liabilities Net assets Goodwill on acquisition Purchase consideration transferred	$ 375,854 1,194,304 346,987 9,505,123 368,841
	11,791,109
	257,347 496,444 252,601 2,044,875
	3,051,267
	8,739,842 7,301,902
	16,041,744

The valuation techniques used for measuring the fair value of material assets acquired were as follows:

Asset Acquired Valuation Technique Hire equipment Depreciated replacement cost as determined by Acrow’s management following a self-assessment. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence.

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Notes to the Financial Statements (continued)

11. Intangibles

Goodwill

All business combinations are accounted for by applying the acquisition method. Goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired. Goodwill is stated at costs less any accumulated impairment losses.

Acrow annually tests goodwill with indefinite useful lives for impairment. An asset that does not generate independent cash flows and its individual value-in-use cannot be estimated is tested for impairment as part of a cash generating unit (CGU).

Where there is an impairment loss, it is recognised in the income statement when the carrying amount of an asset exceeds its recoverable amount. The asset’s recoverable amount is estimated based on the higher of its value-in-use and fair value less costs to sell.

Impairment testing on Natform companies

Goodwill of $7,301,902 is recorded at 31 August 2018 with respect to the acquisition of Natform Pty Ltd and Natform (QLD) Pty Ltd. The recoverable amount of CGU is supported on a fair value less costs to sell basis with reference to the market price paid to acquire the business. No indicators of impairment have arisen since the acquisition date.

Allocation to CGU Groups Natform companies	2019 2018 7,301,902 -
	7,301,902 -

The recoverable amount of a CGU is determined based on a value-in-use calculation. This calculation uses discounted cash flow projections based upon management’s projected EBITDA and financial budgets approved by the board of directors covering a five-year period. Cash flows beyond the five-year period are extrapolated using the cash flows for year 5 and the estimated long-term growth rates.

The discount rate used is the Group’s weighted average cost of capital. The terminal growth rate reflects the management’s outlook on growth.

	2019	2018
Terminal growth rate	2.5%	-
Post-tax discount rate	10.0%	-

Sensitivity

Management have made judgements and estimates in respect of impairment testing of goodwill. Should these judgements and estimates not occur, the carrying value of goodwill may vary. Any reasonable change in the key assumptions on which the estimates and/or the discount rate are based would not cause the carrying amount of the CGU to exceed the recoverable amount.

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Notes to the Financial Statements (continued)

12. Operating Segments

The Group has identified its operating segments based on the internal reports that are reviewed and used by the executive management team (the chief operating decision makers) in assessing performance and in determining the allocation of resources.

The Group has the following segments:

• Formwork and Construction Services: the provision of formwork, scaffolding and related materials for hire and sales

• Mineral exploration activities

Segment Information as at 30 June 2019

Segment Information as at 30 June 2019
In dollars Segment revenue Segment operating profit Unallocated corporate overhead costs Finance costs Profit (loss) before income tax Segment assets Segment liabilities Segment Information as at 30 June 2018 In dollars Segment revenue Segment operating profit Unallocated corporate overhead costs Finance costs Gain on bargain purchase Profit (loss) before income tax Segment assets Segment liabilities	Formwork & Construction Mineral Exploration	Total
	71,010,328 - 7,955,888 (67,352) (964,029) 160 75,204,349 71,420	71,010,328 7,888,356 (1,916,619) (963,870)
		5,007,868
		75,275,769
	27,330,621 322,097	27,652,717
	Formwork & Construction Mineral Exploration	Total
	15,556,061 - 2,301,505 (59,764) 50,217,371 68,059	15,556,061 2,241,741 (2,342,497) (213,685) 10,825,099
		10,510,658
		50,285,430
	11,177,228 62,508	11,239,736

Geographical Information

The Group’s Mineral Exploration segment operates in Ghana.

Acrow Formwork and Construction Services Limited and its controlled entities Preliminary Final Report

Notes to the Financial Statements (continued)

13. Loans and borrowings

The Group entered into a $15,000,000 secured loan agreement in October 2018 for a period of 4 years. The facility consists of four sub-facilities; a $7,000,000 amortising business loan paying variable rates (balance of $5,978,000 at 30 June 2019) with a monthly principal repayment obligation of $146,000; a $5,000,000 3- year revolving equipment finance facility (balance of $961,092 at 30 June 2019); and a $3,000,000 flexible working capital / overdraft facility which had not been drawn upon at balance date.

The loans are secured by interlocking guarantees across all Group companies. Interest on the business loan facilities is variable and charged at the prevailing market rates.

Loans and Borrowings In dollars Current Non-Current 4. Net tangible assets Net tangible assets per ordinary shares (cents)	2019 2018 2,103,192 - 4,835,900 -
	6,939,092 - 2019 2018 24.00 23.96

14. Net tangible assets

15. Subsequent Events

On 29 August the Directors declared an unfranked dividend of 1.0 cent per share to be paid on Friday 15[th] November 2019. Dividend Reinvestment Plan is available for election. The dividend has not been provided for in this financial report as it was not declared until after 30 June 2019.

Subsequent to year end a trade debtor totalling $0.9m included in the 30 June 2019 balance was satisfied through entering of a sale and leaseback arrangement with a duration of two years. At entering into this arrangement, the receivable balance was reduced by the amount of this debtor and a finance lease receivable for the same amount included as an asset.

Equipment loans of $1,589,145 were drawn down subsequent to balance date under the existing Equipment Finance facility.

Share-based payments in the form of 1,200,000 options have been issued under the Employee Share Option Plan issued to a Key Management Personnel subsequent to reporting date.

Other than the above matters there has not otherwise arisen between the end of the year end period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the group, to affect significantly the operations of the Group, the results of those operations, or the state of the affairs of the Group, in future financial years.