CPT GLOBAL LIMITED — Interim / Quarterly Report 2004

Feb 24, 2004

CPT Global Limited ABN 16 083 090 895

Appendix 4D and interim financial report Half year ended 31 December 2003

CPT Global Limited

Directors

Gerard (Gerry) Tuddenham (Executive Chairman)

Peter Corrigan (Managing Director)

Glenn Fielding (Non-executive Director)

Frederick S Grimwade (Non-executive Director)

Peter Wright (Executive Director)

Company Secretary and Chief Financial Officer

Mark Carroll

Principal Registered Office

Level 1, 4 Riverside Quay Southbank VIC 3006 Telephone +61 3 9690 3911 +61 3 9690 3206 Facsimile Internet www.CPTglobal.com

Auditors

Moore Stephens HF Level 14, 607 Bourke Street Melbourne VIC 3000

Share Registry

Computershare Investor Services Pty Ltd

Level 12, 565 Bourke Street Melbourne VIC 3000 1300 850 505 Telephone Facsimile +61 3 9611 5710

ASX Code

CGO

CPT Global on the Web

For an introduction to the company and access to company announcements, descriptions of our core business, services, and careers, visit our website at www.CPTglobal.com

Results for announcement to the market

				\$A'000
Revenues from ordinary activities	down	3%	- to	14,540
Net Profit (Loss) from ordinary activities before tax and amortisation attributable to members	up	16%	to	1,325
Net Profit (Loss) from ordinary activities before tax attributable to members	up	21%	to	1,100
Net Profit (Loss) from ordinary activities after tax attributable to members	down	17%	to	560
Dividends	Amount per security			Franked amount per security
Final Dividend for year ended 30 June 2003 (Paid 24 th September 2003)	3.0¢			3.0¢
Interim Dividend for year ending 30 June 2004 (Payable 18 th March 2004)	2.0¢			2.0¢
Record date for determining entitlements to the Interim Dividend.		$9th$ March 2004
Earnings per security (EPS)	Current period			Previous corresponding Period
Basic EPS	1.62c			1.91c
Diluted EPS	1.62¢			1.91c
NTA backing	Current period			Previous corresponding period
Net tangible asset backing per ordinary security	16¢			16¢

Brief explanation of Net profit after Tax Attributable to members:

CPT Global's net profit after tax (NPAT) for the half-year ended 31 December 2003 was \$0.56 million. This is a decrease of 17% on the corresponding prior half-year and includes an accounting adjustment to income tax expense of \$115,000 reflecting the under provision of prior years (2000, 2001, 2002 & 2003) taxation.

Reconciliation of income tax expense for the half-year ended 31 December 2003.

Prima facie tax payable on operating profit before income tax at 30%	330
Add Tax effect of:
- amortisation of goodwill	77
- other non-allowable items
- tax on overseas income at different rate	10
- under provision prior years tax	115
Income tax expense attributable to profit	540

Income tax expense attributable to profit

Directors' Report

Your directors present their report of the economic entity for the half-year ended 31 December 2003.

Directors

The names of directors in office at any time during or since the end of the half year are:

Mr Gerard F Tuddenham	Mr Glenn W Fielding
Mr Peter G Corrigan	Mr Frederick S Grimwade
Mr Peter L Wright

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Review of Operations

The half-year ended 31 December 2003 has been solid for CPT Global with net profit pre amortisation & taxation (EBITDA) increasing by 16% to \$1.3 million compared to the previous half year. This has been achieved thanks to the skill and dedication of our global team of IT professionals, management and staff.

An interim dividend of 2.0 cents per share (fully franked) has been declared, which is payable on the 18^th March 2004 with a record date of 9^th March 2004.

CPT Global's revenue for the half-year ended 31 December 2003 was \$14.5 million. This is down 3% on the previous half-year and reflects the challenging market conditions.

CPT Global's net profit before tax (EBIT) for the half-year end 31 December 2003 was \$1.1 million an increase of 21% on the prior corresponding half-year reflecting internal cost control measures.

CPT Global's net profit after tax (NPAT) for the half-year ended 31 December 2003 was \$0.56 million. This is a decrease of 17% on the prior corresponding half-year and includes an accounting adjustment of \$115,000 to income tax expense reflecting the under provision of prior years (2000, 2001, 2002 & 2003) faxation.

CPT Global's net cash flow after payment of the 2003 final dividend of \$1.03 million was \$0.2 million with a closing cash balance of \$2.9 million.

Despite offshore outsourcing of IT services in some client sectors, CPT Global remains optimistic that in the medium to long term this should provide increased opportunities for our technical and management of IT services.

CPT Global has retained all its major clients and has continued to broaden its client base. The majority of CPT Global's business remains the provision of technical IT services.

Directors' Report

Over the last two years CPT Global's management of IT services has evolved from being a entrée service focusing on strategic IT management to being a core service offering that provides total business solutions incorporating both the provision of technical IT services and management consulting for IT services. This total business solution is being marketed in both the Australian and International markets with the first overseas engagement being recently completed in the United Kingdom.

CPT Global's business strategy continues to feature:

• Continued maintenance of CPT Global's client focus, which has enabled us to rapidly respond to clients' changing requirements and priorities;
• Successful development and execution of "Risk/Reward" IT cost reduction services in the mainframe environment that have enabled CPT Global to break into new local and overseas clients, delivering significant value to these clients in a short timeframe;
• Expansion of service offerings in response to Government Sector opportunities including management of IT to assist IT organisations in becoming more productive and better aligned with the business:
• Retention of all major clients whilst securing additional blue chip private sector and Government clients;
• Gaining selection onto a number of strategic local and overseas supplier panels that will spring board CPT Global's growth and long term future in those sectors:
• Promoting the reputation of our management of IT services capabilities including the track record of work for an impressive number of Tier 1 clients that have engaged CPT to assist in their business critical strategic planning and selective sourcing operations;
• Appointment of a regional manager for the Southern Region (Melbourne) and the continued development of our business development capability in both the Australian and International markets; and
• Our success in leveraging our multi-national Australian client base to gain introductions to their overseas parents and affiliates building valuable relationships with some of the world's largest companies. This strategy has placed CPT Global in a position of strength to leverage and build a strong client base in each of our strategically targeted locations.

CPT Global is observing improvements in general market sentiment and attitude to IT spending in each of its global markets and is accordingly optimistic for the coming year.

Rounding of Amounts

The company is an entity to which ASIC Class Order 98/100 applies. Accordingly amounts in the financial statements and directors' report have been rounded to the nearest thousand dollars.

Signed in accordance with a resolution of the Board of Directors

P G CORRIGAN, Director

Dated this 25th day of February 2004.

Consolidated Statement of Financial Performance

For the half-year ended 31 December 2003

	Note	Economic Entity
		31/12/2003	31/12/2002
		\$000	\$000
Revenues from ordinary activities	$\overline{2}$	14,544	14,984
Employee benefits expense		(991)	(1,017)
Consultant benefits expense		(10, 797)	(11, 368)
Rentals - operating & finance		(276)	(293)
Other expenses from ordinary activities		(1,065)	(1,094)
Depreciation and amortisation expense		(315)	(302)
Profit from ordinary activities before income tax expense		1,100	910
Income tax expense relating to ordinary activities		(540)	(238)
Net profit		560	672
Net exchange difference on translation of financial report of self-sustaining foreign operations		(9)	(66)
Total changes in equity other than those resulting from transactions with owners as owners		551	606
Basic Earnings per share (cents per share)		1.62	1.91
Diluted Earnings per share (cents per share)		1.62	1.91

Consolidated Statement of Financial Position

As at 31 December 2003

	Economic Entity
	31/12/2003	30/06/2003
	\$000	\$000
Current Assets
Cash assets	2,852	2,667
Receivables	4,795	5,696
Inventories	21	168
Other	210	202
Total Current Assets	7,878	8,733
Non-Current Assets
Other financial assets
Property, plant and equipment	337	357
Intangibles	7,619	7,876
Deferred tax assets	81	44
Total Non-Current Assets	8,037	8,277
Total Assets	15,915	17,010
Current Liabilities
Payables	2,377	2,960
Interest bearing liabilities
Provisions	322	325
Deferred tax liabilities	$_{\rm{ref}}$	22
Total Current Liabilities	2,699	3,307
Total Liabilities	2,699	3,307
Net Assets	13,216	13,703
Equity
Contributed equity	12,077	12,077
Reserves	(147)	(135)
Retained profits	1,286	1,761
Parent entity interest	13,216	13,703
Outside equity interest
Total Equity	13,216	13,703

Consolidated Statement of Cash Flows

For the half-year ended 31 December 2003

	Economic Entity
	31/12/2003	31/12/2002
	\$000	\$000
Cash Flows From Operating Activities
Receipts from customers	15,371	18,923
Payments to suppliers and employees	(13, 544)	(17, 823)
Interest received	49	63
Income tax paid	(607)	(374)
Net cash provided by (used in) operating activities	1,269	789
Cash Flows From Investing Activities
Proceeds from sale of property, plant and equipment		2
Purchase of property, plant and equipment	(38)	(18)
Purchase of other non-current assets
Payment for outside equity interest in subsidiary
Net cash provided by (used in) investing activities	(38)	(16)
Cash Flows From Financing Activities
Repayment of borrowings		(397)
Payment to buy-back of shares	(2)
Loans to related entities		421
Payment to buy-back of shares		(239)
Dividends paid by parent entity	(1,034)	(351)
Net cash provided by (used in) financing activities	(1,036)	(566)
Net increase in cash held	195	207
Cash at 1 July 2003	2,667	3,782
Effect of exchange rates on cash holdings in foreign currencies	(11)	(66)
Cash at 31 December 2003	2,851	3,923

Notes to the Financial Statements

For the half-vear ended 30 December 2003

Note 1: Statement of Significant Accounting Policies

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2003 and any public announcements made by CPT Global Limited and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the entities in the economic entity and are consistent with those applied in the 30 June 2003 annual report.

The half-year report does not include full disclosures of the type normally included in an annual financial report.

	Note	Economic Entity
		31/12/2003	31/12/2002
		\$000	\$000
Note 2: Profit from Ordinary Activities Profit from ordinary activities before income tax has been determined after (a) Expenses:
Depreciation of non-current assets
Plant and equipment		90	69
Total depreciation		90	69
Amortisation of non-current assets
Goodwill		225	233

Notes to the Financial Statements (continued)
For the half-year ended 30 December 2003

	Economic Entity
	31/12/2003	31/12/2002
	\$000	\$000
Note 3: Dividends
Aggregate dividends payable
Interim fully franked ordinary dividend of 2.0 (2002: 2.0) cents per share franked at the tax rate of 30%	689	690
Aggregate dividends declared and paid not previously recognised as a liability
Final fully franked ordinary dividend of 3.0 (2002: 0.5) cents per share franked at the tax rate of 30%	1,034	351
Note 4: Statement of Operations by Segments (a) Primary Segment - Business Segments
CPT Global Limited operates predominantly in one business segment being the provision of information technology consulting services.
Note 5: Events Subsequent to Reporting Date
There has been no events subsequent to reporting date.
Note 6: Contingent Liabilities
There has been no change in contingent liabilities since the last annual reporting date.

Directors' Declaration

The directors of the company declare that:

• $\ddagger$ . the financial statements and notes, as set out on pages 6 to 10 are in accordance with the Corporations Act 2001:
• $(a)$ comply with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations; and
• give a true and fair view of the economic entity's financial position as at 31 December 2003 and of $(b)$ its performance for the half-year ended on that date.
• $2.$ in the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director . . . . . . . . . . . . . . . . . . . .

Peter G Corrigan

Dated this 25^th day of February 2004.

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF CPT GLOBAL LIMITED

Scope

We have reviewed the financial report of CPT Global Limited (the company) and controlled entities for the half-year ended 31 December 2003 as set out on pages 6 to 11. The financial report includes the consolidated financial statements of the consolidated entity comprising the company and the entities it controlled at the end of the half-year or from time to time during the half-year. The company's directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029: "Interim Financial Reporting" and other mandatory professional reporting requirements in Australia and statutory requirements, so as to present a view which is consistent with our understanding of the consolidated entity's financial position, and performance as represented by the results of its operations and its cash flows, and in order for the entity to lodge the financial report with the Australian Securities and Investments Commission.

Our review has been conducted in accordance with Australian Auditing and Assurance Standards applicable to review engagements. A review is limited primarily to inquiries of the consolidated entity's personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Independence

In conducting our review, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of CPT Global Limited and controlled entities is not in accordance with:

• the Corporations Act 2001, including: $(a)$
• giving a true and fair view of the entity's consolidated financial position as at $(i)$ 31 December 2003 and of its performance for the half-year ended on that date; and
• complying with Accounting Standard AASB 1029: "Interim Financial Reporting" and the $(ii)$ Corporations Regulations 2001; and

$(b)$ other mandatory professional reporting requirements in Australia.

Mare Septers 4.

MOORE STEPHENS HF Chartered Accountants

$\rightarrow \infty$

S D PITT Partner Melbourne, 25 February 2004

Moore Stephens HF ABN 39 533 589 331 14^th Floor, 607 Bourke Street, Melboarne, Victoria, 3000 Aastralia. Telephone: +61 3 9614 4444 Facsimile: +61 3 9614 6039 Email: firm@mshf.com.au Web: www.mshf.com.au

A recention of the Moure Stephens International Limited Group of Independent Firms