COMMS GROUP LTD — Annual Report 2021

Aug 25, 2021

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APPENDIX 4E

PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2021

The following sets out the requirements of Appendix 4E with the stipulated information provided here.

1. COMPANY DETAILS

Comms Group Limited and its controlled entities (“the Group”) ACN 619 196 539 Reporting period: 30 June 2021 Previous corresponding reporting period: 30 June 2020

2. RESULTS FOR ANNOUNCEMENT TO THE MARKET

	FY20 $’000	Increase/ (Decrease)	Change %	FY21 $’000
Revenue from continuing operations	19,340	5,889	30.4	25,229
Profit (loss) from ordinary activities after tax attributable to	2,575	(2,007)	(77.9)	568
members
Net Profit (loss) for the period attributable to members	2,589	(2,007)	(77.5)	582

Dividend

No dividend has been declared.

Operating and Financial Review

Whilst the Group’s Net profit after tax of $0.6m has decreased from the profit of $2.6m recorded in the prior year, this is a result of a significant tax benefit recorded in the prior year for tax losses recognised for the first time and transaction costs recognised for the acquisitions completed during the year. At an underlying level the result has improved as a result of the acquisitions completed and further cost savings realised during the year.

Group Result

Total revenue for the year ended 30 June 2021 is $25.2m and Underlying EBITDA of $3.2m is at the upper end of guidance given during the year.

A reconciliation of Underlying EBITDA from continuing operations to the reported profit before tax from continuing operations in the consolidated statement of comprehensive income is tabled below:

	FY21 $M	FY20 $M
Revenue	25.2	19.3
Reported profit before tax	0.7	1.3
Add: net finance costs(1)	0.1	0.1
Add: depreciation and amortisation(1)	1.1	0.8
EBITDA	1.9	2.2
Add: share based payments	0.3	0.1
Add: restructuring costs	-	0.2
Add: property rent paid(2)	0.1	-
Add: business acquisition and integration costs	0.9	-
Underlying EBITDA	3.2	2.5

(1) Includes lease interest and depreciation as per AASB 16

(2) Rent of acquired businesses, expensed within 12 months of lease expiration

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Earnings per share for the period is as follows:

per share for the period is as follows:
	FY21	FY20
Net profit (loss) after tax ($m)	0.58	2.59
Earnings per share (cents)	0.22	1.39
Diluted earnings per share (cents)	0.22	1.39

3. NET TANGIBLE ASSET PER SECURITY

Net tangible assets per ordinary share: 1.26 cents per share. The Group has positive net tangible assets as at 30 June 2021.

4. ENTITIES OVER WHICH CONTROL HAS BEEN GAINED DURING THE PERIOD

Next Telecom Pty Ltd, Binary Networks Pty Ltd and Binary Wholesale Pty Ltd.

5. ANY OTHER SIGNIFICANT INFORMATION NEEDED BY AN INVESTOR TO MAKE AN INFORMED ASSESSMENT OF THE GROUP’S FINANCIAL PERFORMANCE AND FINANCIAL POSITION

None

6. FOR FOREIGN ENTITIES, WHICH SET OF ACCOUNTING STANDARDS IS USED IN

COMPILING THE REPORT

Not applicable.

7. COMMENTARY ON THE RESULTS

Refer to the attached financial report for Comms Group Limited and its controlled entities for the period to 30 June 2021.

8. STATUS OF AUDIT

The financial statements have been audited.

9. DISPUTE OR QUALIFICATION IF NOT YET AUDITED

Not applicable.

10. DISPUTE OR QUALIFICATION IF AUDITED

None.