COMMS GROUP LTD — Annual Report 2022

Aug 24, 2022

25 August 2022 Comms Group Limited (ASX: CCG)

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APPENDIX 4E

PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2022

The following sets out the requirements of Appendix 4E as required to be presented under Listing Rule 4.3A for the 12-month period ending 30 June 2022.

1. COMPANY DETAILS

Comms Group Limited and its controlled entities (“the Group”) ACN 619 196 539 Reporting period: 30 June 2022 Previous corresponding reporting period: 30 June 2021

2. RESULTS FOR ANNOUNCEMENT TO THE MARKET

.RESULTS FOR ANNOUNCEMENT TO THE MARKET
Revenue from continuing operations	Up 63.9% to $41.3m
Underlying EBITDA1	Up 28.1% to $4.1m
Profit (loss) from ordinary activities after tax attributable to members	Down 219.2% to $(0.7)m
Net Profit (loss) for the period attributable to members	Down 221.0% to $(0.7)m

1 Underlying EBITDA excludes net interest, tax, non-cash share-based payments, depreciation, amortisation and business acquisition, integration and restructuring costs. The Directors believe that this measure is useful in further explaining the underlying performance of the Group.

Group Result

Revenue and Underlying Earnings have increased significantly during the year as a result of further acquisitions made during the year and inclusion of a full year of operations of acquisitions completed in the prior year.

Whilst the Group has recorded a Net loss after tax of $0.7m for the full year, this is after incurring acquisition, integration and restructuring costs of $1.4m, share based payments $0.7m, amortisation of intangibles $1.4m including for existing and acquired brands and customer contracts and interest expense $0.5m (new Term Loan and interest on revalued Vendor loans).

Earnings per share for the period is as follows:

	FY22	FY21
Net profit (loss) after tax ($m)	(0.68)	0.58
Earnings per share (cents)	(0.19)	0.22
Diluted earnings per share (cents)	(0.19)	0.22

Dividend

No dividend has been declared.

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3. NET TANGIBLE ASSET PER SECURITY

Net tangible liabilities per ordinary share: 4.2 cents per share (30 June 2021 net tangible assets 1.26 cents per share). The Group has negative net tangible assets as at 30 June 2022.

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

On Group Holdings Pty Ltd, Tango Technology Pty Ltd, OnPlatinum ICT Pty Ltd and OnPlatinum ICT Pty Pte 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 2022.

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.