CPT GLOBAL LIMITED — Annual Report 2005

Sep 4, 2005

Company Announcement

CPT Global Limited - 2005 Financial Results

BUSINESS MODEL CONSOLIDATED, POSITIONED FOR LEVERAGED GROWTH

• 12% increase in net profit after tax to \$1.8 million
• 27% increase in normalised core operating net profit after tax*
• Record total dividend of 5.5 cents fully franked
• Revenue \$29 million
• Increased client footprint globally
• Increased CPT Global brand recognition by marketplace
• Expansion of client base and repeat business
• Growing reputation and recognition of management of IT, midrange and mainframe technical services
• Focused company culture of independence and client side consulting
• Refinement of Risk/Reward model
• Strengthened business development capability via specialised account managers

OPERATING AND FINANCIAL REVIEW

The year ended 30 June 2005 for CPT Global has been one of consolidation of both its client and consultant base globally. CPT Global has strengthened its market position and committed substantial energy to the continued development of its international operations. CPT Global finished the year in a strong financial and operating position and believes it is well positioned to deliver organic revenue and profit growth in the coming year.

CPT Global's revenue for the year ended 30 June 2005 was \$29 million, in line with the previous year's result of \$28.8 million. CPT Global has continued the development of its management of iT consulting services and is becoming accepted as an industry leader in assisting clients through the process of selective sourcing and IT operational governance. Management of IT consulting services now comprises 21% of CPT Global's worldwide revenue while representing 24% of total Australian revenue. Revenue for the majority of our international operations was generated in cost reduction services which fall within technical consulting services.

General market conditions and confidence continues to improve. CPT Global has made positive inroads into its targeted international markets and is well placed in these regions to capitalise on these efforts during the coming year.

CPT Global's net profit after tax for the year ended 30 June 2005 was \$1.8 million, an increase of 12% on the prior year. Net profit before tax pre amortisation was \$3.3 million. CPT Global's net profit after tax pre amortisation was \$2.3 million. All costs including those associated with the expansion of international operations as well as new product development were expensed. It is also important to note that the profit in 2004 included a once off payroll tax refund of \$0.3 million, no such item is included in the 2005 profit. Resulting in a 27% increase in normalised core operating net profit after tax.*

A final dividend of 3.0 cents per share (fully franked) has been declared, which is payable on 10th October 2005, with a record date of 23rd September 2005. Total dividend declared and payable for the year ended 30 June 2005 was 5.5 cents per share (fully franked) an increase of 10% on the prior year. Earnings per share amounted to 5.3 cents per share whilst earnings per share (pre amortisation) amounted to 6.7 cents per share. CPT Global maintained its strong balance sheet position with net tangible assets at 30 June 2005 amounting to \$6.8 million (\$6.4 million at 30 June 2004).

REVIEW OF OPERATIONS

• CPT Global applied the market focus model during FY2005 which has seen it consolidate its client footprint globally with engagements undertaken in fifteen countries. In 2006 repeat engagements are proposed in all fifteen localities with additional locations to include Denmark, Finland, Sweden and Luxembourg.
• CPT Global performed Risk/Reward assignments in Germany, United Kingdom, Switzerland, Netherlands, Spain, Belgium and USA as well as undertaking the initial investigative phase with a number of new and existing clients internationally. These assignments are expanding the breadth of overseas activities as these clients refer CPT Global to other organisations. Furthermore, successful Risk/Reward engagements act as an introduction for CPT Global and free up client IT budgets, potentially leading to the take-up of other CPT Global services.

Whilst the impact on revenues and profits has been minimal in FY2005 and will remain so for the first half FY2006, CPT Global believes this model will significantly contribute to profits over the next two years for the following reasons:

• Australia utilises approximately 1.7% of the world's mainframe processing power overseas CPT Global now $1.$ works with single clients that utilise 1% of the world's mainframe processing power;
• 1. the profit margin on these engagements increases as the client's savings increase; and
• 1. introduction of Risk/Reward model to midrange cost reductions assignments,

• CPT Global continued focusing on its culture of independence and client side consulting services. CPT Global continues to leverage its proven services and experienced consultant base to expand the current client base through increased market penetration both locally and internationally.

• With the maturing of quality control processes, CPT Global also achieved quality certification under ISO9001:2000 to $\blacksquare$ worldwide operations.

While continuing the recruitment of highly skilled consultants and leading industry experts, CPT Global repositioned its consultant engagement model with the introduction of permanent employment for selected consultants. It also strengthened its business development capability via the employment of specialised account managers with a focus on client sector and line of business.

At the heart of CPT Global's culture is an underlying focus on consultant care. CPT Global values the strong working relationship it enjoys with its consultants and staff.

The CPT board would like to formally recognise and thank all of its consultants, management and staff for their dedication and commitment to CPT Global over the years and is confident of being able to maintain and enhance that relationship going forward.

OUTLOOK

Market conditions

CPT Global continues to observe improvements in the general market sentiment and attitude to IT spending in each of its global markets. CPT Global is encouraged by its clients' increased focus on revenue generating IT expenditure as well as continued focus on IT and business cost reduction.

Clients are continuing the process of establishing multi-sourcing relationships with their trusted suppliers (moving away from large, single sourcing relationships) and this is presenting CPT Global with opportunities to compete directly for work within its core service lines.

Many clients in the market are facing the significant challenge to perform a company wide technology refresh of their IT operations. Arising from CPT Global's growing reputation in the provision of management of IT consulting services, its core technical consulting services as well as its independence, it is well placed to be selected to assist clients in this work.

In addition, Sarbanes Oxley and Basel II are driving information access and system compliance requirements for financial clients which should lead to new engagements across both our management of IT consulting services and core technical consulting services.

CPT Global Strategy

CPT Global's focus is to expand the current client base through increased market penetration locally and internationally leveraging its proven services and experienced consultants base as demonstrated by our future market positioning strategy. CPT Global's strategy continues to focus within its main core service lines, but it will also continue to develop and expand these service offerings to meet the challenges of its clients.

CPT Global will maintain its key focus of combining IT management consulting with technical consulting to create unique solutions for clients while increasing the independent client side delivery services to clients throughout all lines of business.

CPT Global's business model can continue to scale up to support additional clients and consultants globally and therefore growth in revenue and improved profitability is expected over the coming financial year from all regions with the majority of the growth expected in the second half year.

Internationally a stronger forward load and consistency of work now exists and the outlook for these regions is positive.

CPT Global is positioned with 45% of its global annual revenue budget sitting as contracted forward load which is a marked improvement on prior years contracted forward load.

CPT Global is committed to maintaining the strategies which have consolidated its FY2005 results as the key foundations for growth during the coming year. CPT Global is committed to increasing financial returns from the substantial investment it has made in the development of all markets.

For further information please contact:

• Mr Gerry Tuddenham, Managing Director or
• Mr Peter Wright, Executive Director

Telephone +61 3 9690 3911

For company profile and information refer to: www.cptglobal.com