CPT GLOBAL LIMITED — Annual Report 2011

Aug 24, 2011

Appendix 4E – Preliminary Final Report Results for announcement to the market

CPT Global Limited ABN:16 083 090 895

				2011	2010
				$A'000	$A'000
Revenue	up	1%	to	38,086	37,738
Net Profit before tax attributable to members	up	147%	to	1,450	(3,102)
Net Profit after tax attributable to members	up	134%	to	1,052	(3,133)
Net Profit attributable to members	up	134%	to	1,052	(3,133)

Dividends (distributions)	Amount per	Franked amount
	security	per security
2011 interim – paid 15 April 2011	$0.015	$0.015
2011 final – declared 19 August 2011	$0.010	$0.010
Record date for determining entitlements to the final dividend:		31stOctober 2011
	Current period	Previous corresponding
Earnings per security (EPS)		Period
Basic EPS	2.87 cents	-8.53 cents
Diluted EPS	2.85 cents	-8.46 cents
NTA backing	Current period	Previous corresponding period
Net tangible asset backing per ordinary	0.16	0.16
security

Please read the above in conjunction with the attached preliminary final report for the year ended 30 June 2011. The accounts are currently in the process of being audited.

1

CPT Global Limited and Controlled Entities

ABN 16 083 090 895

Preliminary Final Report

for the year ended 30 June 2011

2

CPT Global Limited and Controlled Entities – Preliminary Final Report

Chairman’s Statement

Dear Fellow CPT Global Shareholder,

CPT Global’s performance improved in the 2011 financial year but is still to reach targeted levels. Total revenues were higher than the prior year primarily due to a stronger performance by our US business. Our Australian business has broadened its client base and a number of new customer relationships have been established. The Company’s financial position remains sound and further action has been taken to build our business development and management capabilities.

Revenue from our Australian operations fell although margins have recovered somewhat. In Victoria revenues were lower despite the growth in two key accounts which failed to offset further declines in services provided to our previous largest client. Our ACT business performed well and increased revenue. However, the revenues of our NSW operations slipped and remain of concern. Further changes have been made to our business development team in Australia in an effort to deepen and establish more new client relationships. While there has been some progress over the past year, our effort to increase revenue, improve margins and control costs will remain a major focus this financial year.

Despite the negative impact of the higher Australian dollar, CPT’s revenue from international operations was higher than the previous year due to a better performance from our US operations. In Europe revenues were similar to the prior year but margins were stronger and a number of new client relationships were established. Record revenues were generated in the US despite the higher Australian dollar and the forward pipeline is looking healthy. CPT’s market penetration in the international markets continues to develop with three of CPT’s largest six global clients now being based in the US and Europe. Some preliminary work has also been undertaken to explore exciting opportunities that have been presented to CPT in both Asia and South America.

Our revenue grew by 1.0 % in 2011 driven by the better result in the US. CPT returned to profitability delivering a net profit after tax of $1.05m compared to a loss before impairment charges of $0.7m in the prior year. As a result of the stronger performance CPT will pay dividends of 2.5 cents per share (fully franked) for the year compared to no dividend last year. CPT ended the financial year with cash of $884k and no bank debt.

Despite some positive developments, CPT continues to struggle to deliver satisfactory returns for our shareholders. Our performance in 2011 was held back by a further reduction in activity at our previous largest client and the negative impact of the strong Australian dollar on our international revenues. While CPT returned to profitability in 2011 we are still to see the full benefit of our on-going business development activities which have established relationships with some of the world’s most significant companies. Your Board remains convinced that in time CPT will capitalise on the opportunities being developed by these efforts.

CPT’s strategy remains to grow revenue in all our regions, improve margins and control costs. Our business development activities continue to be a high priority and we have been able to attract some more high quality staff to the CPT team over the past twelve months. Further action is being taken to allow our Managing Director Gerry Tuddenham to focus more time on the sales efforts in Europe and North America in order to build on the success of this high margin business.

CPT’s improving performance is directly attributable to the ongoing effort of its strong team of technically skilled and loyal staff and consultants who are focused on serving our clients’ interests globally. I would like to thank my fellow directors and all our staff, under the active leadership of our Managing Director, Gerry Tuddenham, for their contribution to CPT’s performance. I am hopeful that in the year ahead we will see further evidence of progress emerge from the considerable efforts of the CPT Global team through the generation of attractive shareholder returns from the more profitable operation of our businesses both in Australia and internationally.

Fred S. Grimwade Chairman

3

CPT Global Limited and Controlled Entities – Preliminary Final Report

Managing Director’s Review

Fellow Shareholders,

The 2010/11 financial year was a year of consolidation for CPT Global. After laying the foundation for the financial turnaround in the second half of 2009/10, both the local and international businesses achieved positive results, with the return to profitability, the growth of a number of new strategic accounts in the Australian market, the reduction of reliance on CPT’s largest client for many years and the growth of the international opportunity pipeline to unprecedented levels. Although overall revenues grew by only 1% on last year and profit targets were not achieved, the achievement of the financial turnaround and some key strategic objectives have set CPT up well to continue on its growth trajectory.

Operating and Financial Review

Australian revenue reduced by $1.3m or 4% from 2009/10 primarily due to a reduction of $4.9m in CPT’s previously largest client. The enhancement of new strategic accounts in the finance and government sectors reduced the impact of this and created a firm revenue base for the Australian market going forward. The Victorian and New South Wales regions fell 7% and 12% short of prior year levels, while the Federal Region revenue grew by 19%. Australian margins increased by 2% reflecting CPT’s enhanced service delivery processes.

International revenue increased by 16% compared to 2009/10, even after being negatively impacted by almost $0.9m by the strengthening Australia dollar. The North American operation increased revenues from $3.7m to $5.6m ($6.2m before currency movement) while the European operation revenues fell marginally from $6.0m to $5.7m ($6.0m before currency movement).

CPT Global’s revenue for the year ended 30 June 2011 was $38.1 million, a 1.0% increase on the previous year’s revenue of $37.7 million.

CPT Global’s net profit after tax for the year ended 30 June 2011 was $1.05 million, a significant improvement on the 30 June 2010 pre impairment loss of $0.7 million.

A fully franked final dividend of 1 cent per share has been declared.

Basic earnings per share amounted to 2.87 cents per share (diluted earnings 2.85 cents per share).

CPT Global’s balance sheet reflected net tangible assets of $5.96m as at 30 June 2011 ($5.72m 30 June 2010) with net cash holdings of $884k at 30 June 2011 ($523k 30 June 2010).

From a market development standpoint, CPT closed the year with an international opportunity pipeline of $31.4m in Europe and $16.6m in North America.

4

CPT Global Limited and Controlled Entities – Preliminary Final Report

Managing Director’s Review continued

Strategy

Our ongoing overall strategy for the Australian business is to continue growth through the ongoing provision of independent expert services to strategically selected blue chip clients and enhancing service delivery efficiencies to achieve margin expansion. The establishment of a number of key strategic clients in 2010/11 is an illustration of the success recently achieved. All existing clients have well articulated account service plans in place, targeting the continuation of this strategy.

For the International business, we plan to continue leveraging the business development investments of the past, converting many of the phase 1 exploratory cost reduction assignments already undertaken, to the more lucrative phase 2 engagements where substantial savings are identified and passed on to clients. This will ultimately lead to growing the annuity revenue base by taking on long term engagements at the completion of the phase 2 assignments to protect client cost efficiencies on an ongoing basis. We expect margins to increase as the number of phase 2 engagements increase, as these typically provide the company with its largest reward for services provided. This growth will be funded internally.

Continued growth of the Australian Capacity Planning and Performance Tuning Center of Excellence will add to the scale and flexibility of the company’s service offering by enhancing the capability of remotely providing service simultaneously to a range of overseas clients in various geographic locations.

More specifically our 2 main overall areas of focus remain:

1) Market coverage

a) Continue the enhancement of CPT’s service offering to satisfy emerging market requirements

b) Continue to grow the Melbourne market organically

c) Expand our market coverage to new Federal Government Agencies through our presence on two major ICT panels in Canberra

d) Increase our presence in the Sydney market through increased business development activities

e) Transition current international clients into annuity relationships

f) Offer a broader range of CPT services internationally, including mid-range and testing services

g) Expand international client base including government

h) Access to new markets via additional international alliance partners

2) Services positioning

a) Greater alignment with business outcomes

b) Expand Data Centre optimization services into the Cloud environment and Green IT outcomes

c) Consolidate and improve existing services

• d) Provide new services that leverage existing competencies

e) Development of Oracle tools continue and focus on SAP with European clients

f) Test coverage across mid-range

5

CPT Global Limited and Controlled Entities – Preliminary Final Report

Managing Director’s Review continued

CPT Worldwide Market by Sector and Line of Business

CPT remains in the same markets and lines of business as prior years, although the current year has seen a shift when compared to 2009/10 predominantly due to a shift in the mix of Australian clients. The reduction in activity in CPT’s previously largest client in the telecommunication industry and enhancement of some major strategic clients in the banking and finance sector has seen a move of approximately 10% of the Company’s global revenue from Telecommunications sector to the Banking and Finance sector.

==> picture [137 x 9] intentionally omitted <==

----- Start of picture text -----

Revenue by Sector (Worldwide)
----- End of picture text -----

==> picture [450 x 228] intentionally omitted <==

This shift has also led to a change in the revenue earned from CPT’s various lines of business, where the provision of Project and Program Management Services and Technical Support Services reduced by 8% and 4% year on year, with a resultant increase in Performance Tuning and Capacity Management Services of 5% and 4%.

This is testament to the flexibility of the CPT resource base which is able to scale up and down as required to suit changing client requirements.

6

CPT Global Limited and Controlled Entities – Preliminary Final Report

Managing Director’s Review continued

Revenue by Line of Business (Worldwide)

==> picture [457 x 261] intentionally omitted <==

Key Highlights

The following key highlights were achieved in 2010/11:

• 1) The establishment of a number of key strategic accounts in the financial services sector of the Australian marketplace

• 2) The growth of the Australian based Capacity Planning and Performance Tuning Centre of Excellence to drive the remote provision of services to overseas locations on a scalable basis.

• 3) The growth of the International opportunity pipeline to approximately $48m

• 4) The expansion of the North American business to Canada and the hire of CPT’s first Canadian business developer

• 5) The return to profitability in a year when international revenues were negatively impacted by approximately $0.9m due to the strengthening of the Australian dollar

• 6) The commencement of two large phase 2 success fee engagements which will lead to a significant revenue increase in 2011/12.

• 7) The successful transition of CPT’s cost minimisation methodologies from the mainframe to the mid range environment.

7

CPT Global Limited and Controlled Entities – Preliminary Final Report

Managing Director’s Review continued

Our People

In 2010/2011 CPT increased its capability of responding to the growing global opportunities. In Europe and the USA we employed more local resources to expand local service delivery capabilities and establish a resource pool to facilitate a flexible workforce which grows to the size of CPT’s project requirements. In Australia we enhanced CPT’s capability to simultaneously deliver services to various geographies through dedicated training programs focused on enhancing the Capacity Planning and Performance Tuning Centre of Excellence. In addition, CPT’s available resource pool grew through the re engagement of previously used contractors and associates.

This coupled with the continued investment in skills enhancement programs has led to our enhanced ability to deliver a better service more efficiently on a global scale.

Outlook

The Australian business is expected to grow steadily in the near term in each of the regions. We have confidence that the enhancement of new strategic relationships and service offerings will lead to increased demand for our services and as such business development teams will be increased by approximately 25% in 2011/12 to drive this activity.

The International business is expected to grow at a faster rate over the next few years based on CPT’s proven value proposition and very strong opportunity pipeline. Margins will remain strong due to (1) the increased number of phase 2 engagements to be taken on as the success fee remuneration is CPT’s most rewarding remuneration and (2) increased resource scalability as the level of services provided off shore by the Australian Centre of Excellence increases.

A key driver to the success over the next financial year will be the timing of engagement commencements. Any delays in project starts will hold up growth to a later time in the year, whilst many starts at the same time may create challenges to gear up for each engagement. We believe that our resourcing model can gear up quickly to respond to the opportunities as they arise. Your Board understands the formula for success and is confident it will deliver on the objectives of the next year of CPT’s strategic plan.

==> picture [185 x 48] intentionally omitted <==

Gerry Tuddenham Managing Director

8

CPT Global Limited and Controlled Entities – Preliminary Final Report

Contents

Results for announcement to the market	1
Operational Review
-Chairman’s Statement	3
-Managing Director’s Review	4
Consolidated Statement of Comprehensive Income	10
Consolidated Statement of Financial Position	11
Consolidated Statement of Changes in Equity	12
Consolidated Statement of Cash Flows	13
Notes to the Preliminary Final Report	14
Compliance Statement	15

9

CPT Global Limited and Controlled Entities - Preliminary Final Report

Consolidated Statement of Comprehensive Income

YEAR ENDED 30 JUNE 2011 Notes	Economic Entity 2011 2010 $'000 $'000
Revenue Other income Salaries and employee benefits expense Consultants benefits expense Depreciation and amortisation expenses Impairment losses on Goodwill Insurance expense Finance costs Lease expenses Other expenses PROFIT/(LOSS) BEFORE INCOME TAX EXPENSE INCOME TAX EXPENSE PROFIT/(LOSS) AFTER INCOME TAX Other Comprehensive Loss: Exchange differences on translating foreign controlled entities Total Other Comprehensive Loss for the year, net of tax TOTAL COMPREHENSIVE INCOME/(LOSS) PROFIT/(LOSS) ATTRIBUTABLE TO MEMBERS OF CPT GLOBAL LIMITED TOTAL COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO MEMBERS OF CPT GLOBAL LIMITED Basic earnings per share (cents per share) 3 Diluted earnings per share (cents per share) 3	38,086 37,738 22 141 (3,000) (3,117) (28,818) (30,709) (129) (175) - (2,400) (240) (212) (110) (182) (432) (409) (3,929) (3,777)
	1,450 (3,102) (398) (31) 1,052 (3,133) (313) (814)
	(313) (814)
	739 (3,947)
	1,052 (3,133)
	739 (3,947)
	2.87 (8.53) 2.85 (8.46)

The Consolidated Statement of Comprehensive Income is to be read in conjunction with the Notes to the Preliminary Final Report.

10

CPT Global Limited and Controlled Entities - Preliminary Final Report

Consolidated Statement of Financial Position

AT 30 JUNE 2011	Economic Entity 2011 2010
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other financial assets Current tax asset Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Deferred tax assets Property, plant and equipment Intangible assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Borrowings Current tax liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Trade and other payables Deferred tax liabilities Other long term provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Retained earnings/(accumulated losses) TOTAL EQUITY	884 1,050 6,852 8,249 3,199 1,869 - 10 - 112 475 454
	11,410 11,744 425 366 246 293 7,321 7,350
	7,992 8,009 19,402 19,753
	5,524 5,838 - 527 148 -
	5,672 6,365 28 - - 53 426 267
	454 320 6,126 6,685
	13,276 13,068
	12,075 12,075 321 614 880 379
	13,276 13,068

11

CPT Global Limited and Controlled Entities - Preliminary Final Report

Consolidated Statement of Changes in Equity

YEAR ENDED 30 JUNE 2011 Balance at 1 July 2009 Comprehensive Income Loss for the year Other comprehensive loss Total comprehensive loss for the year Transactions with owners, in their capacity as owners Share based payments Dividends paid or provided for Total transactions with owners, in their capacity as owners Other Transfers to and from exchange reserve Total other Balance at 30 June 2010 Balance at 1 July 2010 Comprehensive Income Profit for the year Other comprehensive loss Total comprehensive income/(loss) for the year Transactions with owners, in their capacity as owners Share based payments Dividends paid or provided for Total transactions with owners, in their capacity as owners Other Transfers to and from exchange reserve Total other Balance at 30 June 2011	$'000 $'000 $'000 Issued capital Retained Equity Ordinary Earnings Reserve	$'000 $'000 Foreign Currency Translation Reserve Total
	12,075 4,602 1,426 - (3,133) - - - -	(230) 17,873 - (3,133) (814) (814)
	- (3,133) -	(814) (3,947)
	- - 244 (1,102)	- 244 (1,102)
	- (1,102) 244	- (858)
	- 12 -	(12) -
	- 12 -	(12) -
	12,075 379 1,670	(1,056) 13,068
	$'000 $'000 $'000 Issued capital Retained Equity Ordinary Earnings Reserve	$'000 $'000 Foreign Currency Translation Reserve Total
	12,075 379 1,670 - 1,052 - - - -	(1,056) 13,068 - 1,052 (313) (313)
	- 1,052 -	(313) 739
	- - 20 (551)	- 20 (551)
	- (551) 20	- (531)
	- - -	- -
	- - -	- -
	12,075 880 1,690	(1,369) 13,276

12

CPT Global Limited and Controlled Entities - Preliminary Final Report

Consolidated Statement of Cash Flows

YEAR ENDED 30 JUNE 2011

YEAR ENDED 30 JUNE 2011	Economic Entity 2011 2010 $'000 $'000
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Finance costs Income tax paid NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment and software Purchase of property, plant and equipment, software NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Repayments of borrowings Payment of dividends on ordinary shares NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS HELD Add opening cash & cash equivalents brought forward Effects of exchange rate changes on cash and cash equivalents CLOSING CASH AND CASH EQUIVALENTS CARRIED FORWARD	40,713 39,473 (39,192) (37,864) 1 - (110) (182) (248) (869)
	1,164 558
	- 4 (55) (49)
	(55) (45)
	(46) (32) (551) (1,102)
	(597) (1,134)
	512 (621) 523 1,245 (151) (101)
	884 523

13

CPT Global Limited and Controlled Entities - Preliminary Final Report

Notes to the Preliminary Final Report

YEAR ENDED 30 JUNE 2011

1. DIVIDENDS PAID OR PROVIDED FOR ON ORDINARY SHARES (a) Dividends paid during the year Current year interim Franked dividends (1.5c per share) (2010: 0.0c per share) Previous year final Franked dividends (0.0c per share) (2009: 3.0c per share) (b) Dividends proposed and not recognised as a liability  Franked dividends (1.0c per share) (2010: 0.0c per share)	Economic Entity 2011 2010 $'000 $'000 551 - - 1,102	Economic Entity 2011 2010 $'000 $'000 551 - - 1,102
	551	1,102
	367	-

2. EVENTS AFTER THE BALANCE SHEET DATE

(a) On 22[nd] August 2011 CPT Global Limited announced its intention to extend the on-market share buy back for a further twelve months until 27[th] August 2012. A maximum of 3,000,000 shares may be bought back during the buy back period, which will run from 27th August 2009 until 27th August 2014.

3. EARNINGS PER SHARE (a) The following reflects the income and share data used in the calculations of basic and diluted earnings per share: Net profit Adjustments: Earnings used in calculating basic and diluted earnings per share Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of options outstanding Adjusted weighted average number of ordinary shares used in calculating diluted earnings per share	2011 2010 $'000 $'000 1,052 (3,133) - -
	1,052 (3,133)
	Number of shares Number of shares 36,716,364 36,746,364 199,996 299,996 36,916,360 37,046,360

14

CPT Global Limited and Controlled Entities - Preliminary Final Report

Compliance Statement

This preliminary final report has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.

The preliminary final report covers the economic entity of CPT Global Limited and Controlled Entities, and CPT Global Limited as an individual parent entity. CPT Global Limited is a listed public company, incorporated and domiciled in Australia.

The preliminary final report of CPT Global Limited and Controlled Entities, and CPT Global Limited as an individual parent entity have been prepared in accordance with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety. This report, and the accounts on which it is based, use the same accounting policies.

This report gives a true and fair view of the matters disclosed.

This report is based on accounts which are in the process of being audited.

CPT Global Limited has a formally constituted audit committee.

==> picture [251 x 40] intentionally omitted <==

Elliot Opolion (Company Secretary)

25 August 2011

15