CPT GLOBAL LIMITED — Interim / Quarterly Report 2012

Feb 27, 2012

CPT Global Limited

Appendix 4D - Half-Year Report December 2011

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Key Information				Half-year Ended	Half-year Ended
				31 December 2011	31 December 2010
				A $000's	A $000's
Revenues from ordinary activities	up	3.83%	to	$20,304	$19,555
Net Profit (Loss)before taxattributable to members	down	-14.61%	to	$906	$1,061
Net Profit (Loss)after taxattributable to members	up	30.28%	to	$796	$611
DIVIDENDS PAID AND PROPOSED					Franked Amount per
				Amount per	Security at 30% of
				Security	Tax
2011 final - paid 18 November 2011				1.0 cents	1.0 cents
2012 interim - declared 28 February 2012				1.5 cents	1.5 cents
Record date for determining entitlements to the interim dividend:
Ordinary shares				30th April 2012
DIVIDEND DETAILS				Half-year Ended	Half-year Ended
				31 December 2011	31 December 2010
				A $000's	A $000's
Ordinary share capital:
Final dividend paid				$367	-
Interim dividend payable				$551	$551
An interim fully franked ordinary dividend was declared on 28 February 2012 of
1.5 cents per share. The dividend is payable on 18th May 2012.

EARNINGS PER SHARE (EPS)	Half-year Ended	Half-year Ended
	31 December 2011	31 December 2010
Basic EPS	2.17 cents	1.66 cents
Diluted EPS	2.17 cents	1.65 cents
NTA BACKING
Net tangible asset backing per ordinary security	$0.18	$0.16

CPT Global Limited ABN 16 083 090 895

Half-Year Financial Report

for the Half-Year ended 31 December 2011

CPT Global Limited & Controlled Entities - Half-Year Report

Corporate Information

ABN 16 083 090 895

Directors

Fred S Grimwade (Non-Executive Chairman) Gerard (Gerry) Tuddenham (Managing Director) Peter Wright (Executive Director) Alan Baxter (Non-Executive Director)

Company Secretary

Elliot Opolion

Registered Office

Level 1, 4 Riverside Quay Southbank Melbourne, Victoria 3006 +61 3 9684 7900

Solicitors

Gadens Lawyers

Bankers

ANZ Banking Group Limited

Share Register

Computershare Investor Services Pty Ltd Yarra Falls, 452 Johnston Street Abbotsford Vic 3067 Telephone: 1300 850 505 Facsimile: +613 94732500

Auditors

Moore Stephens

Internet Address

www.cptglobal.com

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	CPT Global Limited & Controlled Entities - Half-Year Report
	Contents
	Directors' Report			3
	Auditor’s Independence Declaration			5
	Consolidated Statement of Comprehensive Income			6
	Consolidated Statement of Financial Position			7
	Consolidated Statement of Changes in Equity			8
	Consolidated Statement of Cash Flows			9
	Notes to the Financial Statements			10
	Directors' Declaration			12
	Independent Audit Report			13
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CPT Global Limited & Controlled Entities - Half-Year Report

Directors' Report

Your directors submit the financial report of the consolidated group for the half-year ended 31 December 2011.

DIRECTORS

The names and details of the company's directors in office during the half year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

• Fred S Grimwade (Non Executive Chairman)

• Gerard (Gerry) Tuddenham (Managing Director)

• Peter Wright (Executive Director)

• Alan Baxter (Non Executive Director)

REVIEW AND RESULTS OF OPERATIONS

FINANCIAL REVIEW

CPT ’s revenue for the half year ended 31 December 2011 was $20.3 million, a 4% increase on the prior corresponding half year’s revenue of $19.6 million. Australian Revenue decreased 2% to $13.8 million (2010: $14.1m) and international revenue increased 18% to $6.5 million (2010: $5.5m). EBITDA for the half year was $1.0 million (2010: $1.2 million).

CPT’s cash position of $2.3 million was strengthened by $1.4 million compared to the prior corresponding period by the more efficient usage of supplier credit and enhanced treasury management practices.

CPT’s net profit after tax for the half year ended 31 December 2011 was $0.8 million, (2010: $0.6m), benefiting from the recognition of a deferred tax asset in the USA where CPT is now making sustainable profits.

Earnings per share and diluted earnings per share was 2.17 cents per share (2010: 1.66 cents and 1.65 cents respectively).

Based on the first half results CPT Global Limited will pay a fully franked dividend of 1.5 cents per share which is in line with its policy of a high dividend payment ratio on net profit after tax.

REVIEW OF OPERATIONS

Australia

Performance of the Australian operations has remained consistent with prior periods. The growth which has occurred in the Melbourne and Sydney markets (2% and 26% respectively) has been offset by revenue reductions in the Canberra market where a number of client projects have been completed. A series of business development initiatives have been undertaken to replace these projects and a number of opportunities exist to rebuild revenue in the second half of the year.

As in prior years, the Australian business has played a vital role in supporting the growth of the international business by providing staff expertise to North America and Europe.

International

International operations continue to grow as CPT’s value proposition gains further recognition overseas. The opportunity pipeline is strong and several new clients have engaged CPT to assist in the management of their IT infrastructure spend.

During the period CPT completed many small engagements (Phase 1) at Fortune 500 Companies, with three clients committing to the more lucrative Phase 2 projects, where CPT shares in the financial success provided to the client. There are many clients in Europe and North America currently considering the potential to proceed to Phase 2 on a risk / reward basis. We anticipate that a number of these clients will proceed at some stage over the next 12 months, leading to further expansion of the International business. In addition, a number of long term contracts with CPT’s larger International clients have been renewed again.

Although profitable, CPT is still awaiting a more substantial return on the business development investments made over the past few years. The economic slowdown in Europe has delayed many opportunities and CPT has incurred significant cost in attempts to close a number of these prospects.

A substantial investment has been made in the enhancement of CPT’s service centre to support the expected growth in the international business. The company’s capability has been built to achieve scalable productivity as the centre will be able to service many overseas clients simultaneously from Australia using CPT’s proven methodologies.

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CPT Global Limited & Controlled Entities - Half-Year Report

We believe that CPT’s growth opportunities and ability to deliver in a cost effective manner are strong. Whilst the economic environment has had an impact on the speed in which growth occurs, CPT is well placed to handle the growth when and as it occurs.

OUTLOOK

The Australian operation is solid, with growth opportunities in each of CPT’s geographical markets. The Melbourne market will continue to grow as a number of the company’s tier 2 clients have increased their demand for CPT services, lifting their relationship to a more strategic level. The Sydney presence will also grow as the number of CPT clients continues to build while CPT’s activity in Canberra will increase as new client projects commence.

The International operation is likely to grow at a faster pace given the number and size of the opportunities currently in the pipeline. We plan to expand the International management team early in 2012 to deal with the expected growth.

CPT is positive about the outlook for the second half of the 2012 financial year and our financial position remains sound.

ROUNDING

The amounts contained in this report and in the financial report have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

AUDITORS DECLARATION

The lead auditors independence declaration under section 307C of the Corporations Act 2001 is set out on page 5 of the halfyear report ended 31 December 2011.

Signed in accordance with a resolution of the directors.

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Gerard (Gerry) Tuddenham Managing Director Melbourne, 28 February 2012

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Level 10, 530 Collins Street Melbourne VIC 3000 T +61 (0)3 8635 1800 F +61 (0)3 8102 3400

www.moorestephens.com.au

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 to the directors of CPT Global Limited and Controlled Entities

I declare that, to the best of my knowledge and belief, during the half-year ended 31 December 2011 there have been:

• (i) No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review, and

• (ii)

• No contraventions of any applicable code of professional conduct in relation to the review.

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MOORE STEPHENS Chartered Accountants

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S David Pitt Partner

Melbourne, 28 February 2012

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Moore Stephens ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. An independent member of Moore Stephens International Limited – members in principal cities throughout the world. The Melbourne Moore Stephens firm is not a partner or agent of any other Moore Stephens firm. And is a separate partnership in Victoria.

CPT Global Limited & Controlled Entities - Half-Year Report

Consolidated Statement of Comprehensive Income

HALF-YEAR ENDED 31 DECEMBER 2011

HALF-YEAR ENDED 31 DECEMBER 2011
	31 Dec 11 31 Dec 10 $'000 $'000
Revenue Other income Salaries and employee benefits expense Consultants benefits expense Depreciation and amortisation expenses Insurance expense Finance costs Lease expenses Foreign exchange losses Other expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE PROFIT AFTER INCOME TAX Other comprehensive income/(loss): Exchange differences on translating foreign controlled entities Other Comprehensive Income/(Loss) for the period, net of tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD PROFIT ATTRIBUTABLE TO MEMBERS OF CPT GLOBAL LIMITED TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO MEMBERS OF CPT GLOBAL LIMITED Basic earnings per share (cents per share) Diluted earnings per share (cents per share)	20,297 19,544 6 11 (1,645) (1,563) (15,075) (14,570) (83) (63) (120) (113) (40) (66) (237) (207) (35) (257) (2,162) (1,655)
	906 1,061 (110) (450) 796 611 50 (312)
	50 (312) 846 299
	796 611
	846 299
	2.17 1.66 2.17 1.65

The Consolidated Statement of Comprehensive Income is to be read in conjunction with the Notes to the Financial Statements.

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CPT Global Limited & Controlled Entities - Half-Year Report

Consolidated Statement of Financial Position

AT 31 DECEMBER 2011

AT 31 DECEMBER 2011
	AS AT 31 DECEMBER 2011 $'000	AS AT 30 JUNE 2011 $'000
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Unbilled revenue 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 Current tax liabilities TOTAL CURRENT LIABILITILES NON-CURRENT LIABILITIES Trade and other payables Other long term provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Retained earnings TOTAL EQUITY	2,284 6,919 3,193 106 360	884 6,852 3,199 116 385
	12,862	11,436
	567 194 7,325	425 246 7,321
	8,086	7,992
	20,948	19,428
	6,453 384	5,645 174
	6,837	5,819
	4 352	28 305
	356	333
	7,193	6,152
	13,755	13,276
	12,075 371 1,309	12,075 321 880
	13,755	13,276

The Consolidated Statement of Financial Position is to be read in conjunction with the Notes to the Financial Statements.

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CPT Global Limited & Controlled Entities - Half-Year Report

Consolidated Statement of Changes in Equity

Balance at 1 July 2010 Comprehensive income Profit for the period Other comprehensive income for the period Total comprehensive income for the period 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 Balance at 31 December 2010 Balance at 1 July 2011 Comprehensive income Profit for the period Other comprehensive income for the period Total comprehensive income for the period Transactions with owners, in their capacity as owners Dividends paid or provided for Total transactions with owners, in their capacity as owners Balance at 31 December 2011	$000 $000 $000 $000 $000 Issued Capital Retained Earnings Equity Reserve Foreign Currency Translation Reserve Total 12,075 379 1,670 (1,056) 13,068 611 611 (312) (312)
	- 611 - (312) 299
	- - 9 - 9 - - - - -
	- - 9 - 9
	12,075 990 1,679 (1,368) 13,376
	12,075 880 1,690 (1,369) 13,276 796 796 50 50
	- 796 - 50 846
	- (367) - - (367)
	- (367) - - (367)
	12,075 1,309 1,690 (1,319) 13,755

The Consolidated Statement of Changes in Equity is to be read in conjunction with the Notes to the Financial Statements.

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CPT Global Limited & Controlled Entities - Half-Year Report

Consolidated Statement of Cash Flows

HALF-YEAR ENDED 31 DECEMBER 2011

HALF-YEAR ENDED 31 DECEMBER 2011
	31 Dec 11 31 Dec 10 $'000 $'000
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Finance costs paid Income tax paid NET CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment, software NET CASH FLOWS USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings Payment of dividends on ordinary shares NET CASH FLOWS USED IN FINANCIAL ACTIVITIES NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS HELD Add opening cash and cash equivalents brought forward Effects of exchange rate changes on cash and cash equivalents CLOSING CASH AND CASH EQUIVALENTS CARRIED FORWARD	21,028 19,501 (19,186) (20,040) (40) (66) (32) (288)
	1,770 (893)
	(35) (20)
	(35) (20)
	(25) (23) (367) -
	(392) (23)
	1,343 (936) 884 523 57 401
	2,284 (12)

The Consolidated Statement of Cash Flows is to be read in conjunction with the Notes to the Financial Statements.

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CPT Global Limited & Controlled Entities - Half-Year Report

Notes to the Financial Statements

HALF-YEAR ENDED 31 DECEMBER 2011

NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

Basis of Preparation

These general purposes interim financial statements for the half-year reporting period ended 31 December 2011 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting.

The interim financial report is intended to provide users with an update on the latest annual financial statements of CPT Global Limited and its controlled entities (referred to as the Group). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2011, together with any public announcements made during the following half-year.

Accounting Policies

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements, except in relation to the matters discussed below.

Critical Accounting Estimates and Judgments

The critical estimates and judgments are consistent with those applied and disclosed in the June 2011 annual report.

NOTE 2: DIVIDENDS Distributions paid (a) Aggregate dividends payable Declared interim fully franked ordinary dividend of 1.5 (2011: 1.5) cents per share franked at the tax rate of 30% (2011: 30%). (b) Aggregate dividends declared and paid not previously recognised as a liability Final fully franked ordinary dividend of 1.0 (2011: 0.0) cents per share franked at the tax rate of 30%	Consolidated 31 Dec 11 $000 31 Dec 10 $000 551 551 367 -
	918 551

NOTE 3: CONTINGENT ASSETS AND LIABILITIES

Since the last annual reporting date, there has been no material change of any contingent liabilities or contingent assets.

NOTE 4: BORROWINGS

The economic entity has a financing facility of $1,832,000 provided by its bank on an ongoing basis. The financing facility is secured by a first registered company charge (mortgage debenture) over the carrying value of the total assets of the parent entity. Interest is charged at 1.0% above the reference rate. At the end of the reporting period this facility was not utilised.

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CPT Global Limited & Controlled Entities - Half-Year Report

NOTE 5: OPERATING SEGMENTS

	Segment Performance
	REVENUE External Sales Reconciliation of segment revenue to group revenue - Miscellaneous Revenue Total Group Revenue	Australia	Europe	United States	Consolidated
		Dec-11 Dec-10 $’000 $’000	Dec-11 Dec-10 $’000 $’000	Dec-11 Dec-10 $’000 $’000	Dec-11 Dec-10 $’000 $’000
		13,830 14,099	3,654 2,904	2,813 2,541	20,297 19,544 6 11 20,303 19,555
	Segment Gross Profit **before tax **	3,602 4,440	1,752 1,713	1,309 1,387	6,669 7,551
	Reconciliation of segment result to group profit/loss before tax Unallocated Items - Overheads				5,763 6,490
	**Profit/ (Loss) before tax **				906 **1,061 **

Segment Assets

Segment Assets
	Australia	Europe	**USA **	Consolidated
	Dec-11 Dec-10 $’000 $’000	Dec-11 Dec-10 $’000 $’000	Dec-11 Dec-10 $’000 $’000	Dec-11 Dec-10 $’000 $’000
Segment Assets Segment asset increases for the period: - Capital Expenditure	4,809 6,131 26 22	2,730 1,915 - -	2,673 2,637 - -	10,212 10,683 26 22
	4,835 6,153	2,730 1,915	2,673 **2,637 **	10,238 10,705
Reconciliation of segment assets to group assets Unallocated assets: - Goodwill - Property, plant & equipment - Other Assets				7,261 7,261 258 338 3,191 1,458
Total Group Assets				20,948 **19,762 **

NOTE 6: SUBSEQUENT EVENTS

There have been no events subsequent to reporting date.

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CPT Global Limited & Controlled Entities - Half-Year Report

Directors' Declaration

In accordance with a resolution of the directors of CPT Global Limited, the directors of the company declare that:

• (1) The financial statements and notes, as set out on pages 6 to 11 are in accordance with the Corporations Act 2001 including:

• (i) complying with Accounting Standard AASB: 134: Interim Financial Reporting; and

• (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and of 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.

On behalf of the Board

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Gerard (Gerry) Tuddenham Managing Director Melbourne, 28 February 2012

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Level 10, 530 Collins Street Melbourne VIC 3000 T +61 (0)3 8635 1800 F +61 (0)3 8102 3400

www.moorestephens.com.au

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF CPT GLOBAL LIMITED AND CONTROLLED ENTITIES

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of CPT Global Limited and controlled entities (“the consolidated entity”) which comprises of the Statement of Financial Position as at 31 December 2011, the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the half-year ended on that date, notes comprising of a summary of significant accounting policies, other selected explanatory information and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 , and for such control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Australian Auditing Standards on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the financial report is not presented fairly, in all material respects, in accordance with the Corporations Act 2001. As the auditor of the consolidated entity, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

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Moore Stephens ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. An independent member of Moore Stephens International Limited – members in principal cities throughout the world. The Melbourne Moore Stephens firm is not a partner or agent of any other Moore Stephens firm. And is a separate partnership in Victoria.

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Conclusion

Based on our review, which is not an audit, nothing has come to our attention that causes us to believe that the half-year financial report of CPT Global Limited and controlled entities is not in accordance with the Corporations Act 2001 including:

• (i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and

• (ii) complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001.

Matters Relating to the Electronic Publication of the Audited Financial Report

This review report relates to the financial report of CPT Global Limited and controlled entities for the period ended 31 December 2011 included on the company’s website. The directors are responsible for the integrity of the company’s website. We have not been engaged to report on the integrity of the CPT Global Limited’s website. This review report refers only to the half-year report identified above. It does not conclude on any other information which may have been hyperlinked to/from this report. If users of the financial report are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the half-year financial report to confirm the information contained in this website version of the financial report.

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MOORE STEPHENS Chartered Accountants

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S David Pitt Partner

Melbourne, 28 February 2012

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Moore Stephens ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. An independent member of Moore Stephens International Limited – members in principal cities throughout the world. The Melbourne Moore Stephens firm is not a partner or agent of any other Moore Stephens firm. And is a separate partnership in Victoria.