CPT GLOBAL LIMITED — Interim / Quarterly Report 2021

Feb 18, 2021

==> picture [202 x 142] intentionally omitted <==

==> picture [85 x 132] intentionally omitted <==

ASX ANOUNCEMENT

CPT GLOBAL LIMITED (ASX: CGO)

19 February 2021

APPENDIX 4D & FINANCIAL REPORT FOR THE HALF YEAR ENDED 31

DECEMBER 2020

CPT Global Limited is pleased to provide the following information for the financial period ended 31 December 2020:

1. Appendix 4D Half Year Report; and

2. Financial Report for the Half Year Ended 31 December 2020.

This ASX Announcement has been approved for release by the Board of CPT Global Limited.

For further information please contact:

Gerry Tuddenham Managing Director T: +61 3 9684 7900 E: gtuddenham@cptglobal.com http://www.cptglobal.com/

Forward looking statements

Any forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause CPT’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Neither CPT, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. In addition, please note that past performance is no guarantee or indication of future performance.

Investors should consult with their own professional advisors in connection with any acquisition or dealing of securities.

==> picture [17 x 15] intentionally omitted <==

==> picture [16 x 16] intentionally omitted <==

==> picture [15 x 16] intentionally omitted <==

==> picture [596 x 20] intentionally omitted <==

+61 3 9684 7900

3/818 Bourke Street, Docklands, VIC 3008

www.cptglobal.com

1

==> picture [202 x 142] intentionally omitted <==

==> picture [85 x 132] intentionally omitted <==

Appendix 4D: CPT Global Limited

RESULTS FOR ANNOUNCEMENT TO THE MARKET

==> picture [495 x 284] intentionally omitted <==

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

|||||||||
|---|---|---|---|---|---|---|---|
|Key Information|Half-year Ended|Half-year Ended|
|31 December 2020|31 December 2019|
|A $000's|A $000's|
|Revenues from ordinary activities|up|50.0%|to|$18,090|$12,058|
|Net Profit (Loss)|before tax|attributable to members|up|165.7%|to|$2,981|($4,540)|
|Net Profit (Loss)|after tax|attributable to members|up|159.8%|to|$2,267|($3,788)|
|DIVIDENDS PAID AND PROPOSED|Amount per|Franked|Tax rate for|Record Date|
|Security|Amount per|franking|
|Security|
|FY 2020 Final dividend paid 16 November 2020|1.25 cents|1.25 cents|27.50%|11 September 2020|
|FY 2021 Interim dividend payable 29 March 2021|2.00 cents|2.00 cents|26%|5 March 2021|
|DIVIDEND DETAILS|Half-year Ended|Half-year Ended|
|31 December 2020|31 December 2019|
|A $000's|A $000's|
|Ordinary share capital:|
|Final dividend paid|$478|$189|
|Interim dividend payable|$786|N/A|

----- End of picture text -----

DETAILS OF DIVIDEND REINVESTMENT PLAN IN OPERATION

The Company's Dividend Reinvestment Plan (DRP) provides for a 2.5% discount on the Volume Weighted Average Price of ordinary shares for the 5 trading days immediately preceeding the record date.

The last date for receipt of election notices for participation in the DRP for the FY2021 interim dividend is 15 March 2021

==> picture [495 x 105] intentionally omitted <==

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

||||
|---|---|---|
|EARNINGS PER SHARE (EPS)|Half-year Ended|Half-year Ended|
|31 December 2020|31 December 2019|
|Basic EPS|5.77 cents|(9.89) cents|
|Diluted EPS|5.77 cents|(9.81) cents|
|NTA BACKING|
|Net tangible asset backing per ordinary security|$0.11|$0.06|

----- End of picture text -----

==> picture [17 x 15] intentionally omitted <==

==> picture [15 x 15] intentionally omitted <==

==> picture [15 x 16] intentionally omitted <==

==> picture [596 x 20] intentionally omitted <==

+61 3 9684 7900 Info@cptglobal.com

February, 2021

www.cptglobal.com

==> picture [202 x 142] intentionally omitted <==

==> picture [87 x 132] intentionally omitted <==

CPT Global Limited

ABN 16 083 090 895

Financial Report For the half year ended 31 December 2020

==> picture [17 x 15] intentionally omitted <==

+61 3 9684 7900 Info@cptglobal.com www.cptglobal.com

==> picture [15 x 15] intentionally omitted <==

==> picture [15 x 15] intentionally omitted <==

1

==> picture [111 x 79] intentionally omitted <==

Contents

==> picture [59 x 97] intentionally omitted <==

Contents
Directors’ Report	3
Auditors Independence Declaration	8
Consolidated Statement of Profit or Loss and Other Comprehensive Income	9
Consolidated Statement of Financial Position	10
Consolidated Statement of Changes in Equity	11
Consolidated Statement of Cash Flows	12
Notes to the Financial Statements	13
Directors’ Declaration	18
Independent Audit Report	19

CPT Global Limited – Financial Report

2

==> picture [111 x 79] intentionally omitted <==

Directors’ Report

==> picture [59 x 97] intentionally omitted <==

Your directors submit the financial report of the consolidated group for the half year ended 31 December 2020.

DIRECTORS

The names and details of the company's directors in office during the financial period 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)

• Nigel Sandiford (Non-Executive Director)

OPERATING AND FINANCIAL REVIEW

The $2.27m profit after tax for the 6 month period to 31 December 2020 is CPT’s best half-year result in 22 years as an ASX listed company. Only 2 of the last 21 full financial years have produced a better result. That we were able to deliver this result during a global pandemic and without any government support from JobSeeker (Australia) and the Paycheck Protection Program (USA) makes it all the more extraordinary.

The seeds of this remarkable 6 months were planted in FY2019 when we made a subtle shift in our focus back to our core business and strengths, helping clients solve their complex and technical challenges as they transform their IT environments. This proved critical during the pandemic as it was our core business that was in demand in our core industries. The first shoots of this strategy appeared in February 2020 and the momentum has continued to build into FY2021.

The table below shows the performance of the business over the last 3 reporting periods reconciled to net profit after tax.

==> picture [399 x 167] intentionally omitted <==

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

HY2021 FY2020 HY2020
m’s m’s m’s
Revenue 18.1 24.9 12.1
Profit before tax & impairment 3.0 0.9 (0.3)
Goodwill impairment - (4.2) (4.2)
Profit before tax 3.0 (3.3) (4.5)
Tax expense 0.7 (0) 0.8
Profit after tax but before impairment 2.3 0.9 0.5
Net profit 2.3 (3.3) (3.8)
----- End of picture text -----

The key drivers of our performance in the first half of FY2021 were:

1. the growth in revenue in the USA. Revenue is up 27% on HY2020 as we expanded our footprint in our largest client, a global bank, and completed the first risk/reward stage of a contract at a national insurance company.

2. the growth in revenue in Australia. Revenue is up 71% up on HY2020. Projects at a University and Victorian statutory authority that started in FY2020 ran at full capacity throughout the first half and have been extended to April 2021 and June 2021 respectively. The contract at our largest Australian client was extended from 1 July 2020 to 31 December 2020 at the head count we had grown the business to in the second half of FY2020. This contract has subsequently been extended to 30 June 2021, albeit at a slightly reduced head count. Contracts that came up for renewal during the half year were consistently extended.

3. tight control over discretionary costs; and

4. net cost savings from moving to remote working, particularly costs associated with employees travelling interstate and internationally.

CPT Global Limited – Financial Report

3

==> picture [111 x 79] intentionally omitted <==

Directors’ Report

==> picture [59 x 97] intentionally omitted <==

Margins and profit were helped across the business with our consultants and sales teams unable to travel and the early success of a risk/reward engagement at a national insurance company in the USA. While travel restrictions are still in place, particularly in Australia and North America, we will benefit financially.

We managed our European, Canadian and Asian regions opportunistically in the first half of the financial period as we focussed our resources on the growth opportunities in Australia and the USA. Our consultants and sales teams in Europe and Canada continued to support the USA.

CPT could not have achieved this result without the professionalism, flexibility and resilience of our employees and contractors demonstrated in 2020. The momentum they generated from the second half of FY2020 while working from home and keeping a global business running efficiently and effectively was extraordinary.

The quality of our client base played a big part in our ability to grow during a pandemic. Our clients include some of the largest and most recognised brands in the financial services, insurance and government sectors. These are organisations that play critical roles in delivering important services and products within national and the global economies. They will continue to be critical in the post-pandemic economic recovery. The services we provide in these industries tend to be on business critical systems and projects. This expertise, our status as trusted advisors and our experience and expertise providing services remotely were strengths that allowed us to continue to provide seamless service and advice at a critical time for clients.

Our shareholders have been through a lean period with CPT as our performance did not allow us to pay regular dividends and the share price hit historic lows. We are committed to, and focussed on, ensuring CPT’s performance and dividends are sustainable.

Financial Performance

CPT Global’s revenue for the half year ended 31 December 2020 was $18.1m, a 50% increase on the comparative period revenue of $12.1m. CPT Global’s net profit after tax for the half year ended 31 December 2020 was $2.3m compared to the $3.8m loss in the comparative period.

The results were due to the factors discussed above. Other movements in the Statement of Profit and Loss are

explained as follows:

• other expenses were $0.96m less than the comparative period. Most of this reduction in cost was due to lower travel costs and software licence costs. Travel costs are often billed to the client at cost with this reflected in revenue. Therefore. the impact on the profit of the business is limited to travel costs: 1. of the non-billable employees; and 2. related to clients where our contract does not allow for reimbursement of travel. The software licences are on sold to clients with a small margin so the reduction in the cost is matched by a reduction in revenue from licence fees.

• foreign currency losses arose on the strengthening Australian dollar, particularly against the US dollar.

• tax expense of $0.7m was incurred. This is an effective tax rate of 24% and is a result of: (a) the profitability of the Australian and USA businesses; (b) the income tax rate in Australia of 26% in FY2021 compared to 27.5% in FY2020; and (c) deferred tax revenue of $0.3m booked on unrealised FX losses in the USA as the Australian dollar strengthened against the US dollar during the second quarter.

Basic earnings per share amounted to 5.77 cents per share (diluted earnings 5.77 cents per share).

The FY2020 comparative result of a loss after tax of $4.5m includes an impairment charge against goodwill allocated to the Australian CGU of $4.2m. Goodwill was impaired as the revenue and operating profit of the Australian CGU in the first half of the financial year were below budget and were seen as unlikely to meet budget for the full financial year.

Financial Position

CPT Global’s performance has seen a strengthening of the balance sheet with net tangible assets of $4.4m as at 31 December 2020 compared to $2.7m at 30 June 2020. CPT no longer has any material intangible assets on the balance sheet after goodwill was fully impaired in FY2020.

CPT Global Limited – Financial Report

4

==> picture [111 x 79] intentionally omitted <==

Directors’ Report

==> picture [59 x 97] intentionally omitted <==

Movements in the balance sheet:

• Contract asset (WIP) has increased by $0.5 million as we recognised $0.9m in risk/reward revenue in the first half. This will be invoiced in the second half of the year. $0.3m in risk/reward revenue at 30 June 2020 has been realised.

• Trade and other receivables decreased $0.3m. Revenue in December 2020 was $0.3 higher than revenue in June 2020 despite the Christmas and New Year holiday periods. However, $0.4m of revenue was risk/reward and recorded in WIP in December rather than in debtors. Furthermore, conversion of debtors to cash continues to be a strength of the business. At 31 December 2020, 86% of debtors are under 30 days and only 0.2% are over 60 days.

• The current tax asset in FY2020 has been converted to cash and a current tax liability recognised for the current period as our Australian, USA and Canadian business generated taxable profits.

• Other assets have increased by $0.5m. This is the normal cycle of prepayments, particularly our global business insurance which we renewed in late October 2020.

• Trade and other payables decreased by $1.5m. This was the result of a business decision to provide our people with a small reward by paying them their January payroll and invoices early so they had the extra cash over the Christmas and New Year period. As these payments are made in arrears in January, trade and other payables is lower than at 30 June 2020. This also resulted in the cash balance being lower at the end of the period despite the profit. The amount paid in advance was $1.7m.

• Borrowings at year end relate to the debtor funding facility provided by Scottish Pacific and the lease liability recognised on the head office.

Cash Flow

CPT had $3.8 million in cash as at 31 December 2020 ($3.1 million 30 June 2020) and a net cash inflow of $0.8 million for the half year.

The increase in cash is significantly less than the profit for the half as we elected to make all payments due to employees and contractors that were due in January 2021 during the Christmas and New Year holiday period as noted above. A total of $1.7m was paid in advance. Furthermore, there is $0.9m in WIP at period end related to risk/reward projects, an increase of $0.6m on 30 June 2020.

Capital Management

An interim dividend of 2.0 cents per share has been declared for the half year to 31 December 2020. This is an increase of 0.75 cents over the FY2020 final dividend and a yield of 6.1% (8.2% including franking credits) on a share price of $0.33.

The total value of the dividend is $785,538 and will be paid on 29 March 2021.

With the ongoing uncertainty in our markets and the strategic opportunities that are available to us, we have held the pay out ratio at 35% for the interim dividend. The final dividend and total dividend pay out ratio for FY2021 will depend upon the performance of the business in the second half and strategic decisions we make in the coming months.

Our previously announced intention to grow dividends and increase the pay out ratio over time and as cash allows have not changed.

$0.3 million was drawn against our debtor funding 31 December 2020 and a further $0.5 million was available to draw on.

During 2021 our focus is on building our cash reserves to fund the growth of the business and to increase the dividend payout ratio.

CPT Global Limited – Financial Report

5

==> picture [111 x 79] intentionally omitted <==

Directors’ Report

==> picture [59 x 97] intentionally omitted <==

THE OUTLOOK

Building on the momentum we have generated in 2020 is our focus in 2021. Despite the continued uncertainty and risks in our markets, we are optimistic that CPT can continue to grow revenue and profit for shareholders.

As we continue to address the challenges of Covid-19, build on the momentum we have generated and grow the business, our strategy is to:

• concentrate our resources in the Australian and USA markets where the growth in 2020 came from and where we see the greatest opportunities for further growth;

• continue to leverage our experience and expertise delivering high quality services to clients remotely across all our service lines;

• expand our use of digital marketing and sales to generate new business and start new conversations with our clients;

• start to refocus our sales effort and resources on new accounts and selling to former clients, contacts and sponsors as we roll out our digital marketing capability;

• continue to grow within existing clients by expanding into new projects and additional services;

• preserve margins by maintaining control of delivery costs;

• have a laser focus on controlling discretionary costs; and

• provide our employees with the services and support they need to work remotely and maintain a healthy work and personal life.

93% of our Australian forecast revenue to 30 June 2021 is contracted. 70% of the USA forecast revenue is contracted to 30 June 2020 with a significant majority of the balance being extensions to existing contracts that are in the final stages of being signed. This is as strong a position as CPT has been in at this point in the financial year for many years and provides a strong base upon which to continue building the business.

Whilst the proportion of revenue contracted is high, we remain cautious. There is still significant uncertainty and risk in the second half of FY2021 which could impact on our ability to deliver our services and earn the revenue that has been contracted. The significant risks and uncertainties are:

• the proportion of contracted risk/reward revenue that may be recognised in the second half of the financial year and the margins earnt on that revenue. The timing of revenue recognition and the margins we earn are dependent on factors that are not always within our control;

• the uncertainty in the markets in which we operate due to Covid-19. The situation in Europe and North America is particularly uncertain; and

• the political situation in the USA.

While we do not expect revenue and profit growth in the business to continue at the rate it has since March 2020, the rate of growth has been unparalleled in CPT’s history and has been reliant on existing clients and a new risk/reward contract. We will continue to drive new business in these areas but the next stage of growth for the business is in new accounts in Australia and the USA and rebuilding the Canadian and European businesses. Vaccination programs and countries ongoing management of Covid-19 are critical to unlocking the potential growth we see.

Revenue and profit in the second half may not reach the highs of the first half. We still expect to deliver a profitable half on par with our strongest years, the first half benchmark is just very high. The reasons for this are:

• risk/reward revenue we expected to earn in the third quarter was booked in the first half and the margins were at the high end for this type of engagement. This has no impact on the full year results and has created an opportunity to secure additional revenue due to our performance;

• clients in the USA and Australia are seeking discounts and reductions in head count due to internal budgetary pressures because of declining revenue. This mostly applies to contract renewals but also existing contracts where clients have been hit particularly hard by Covid-19. The banking and finance and higher education sectors have been the most prominent sectors in this regard. We have been able to keep discounts to 5% or less and while individual contracts have had reductions in head count, our overall consultant headcount has not declined; and

• a major project in Australia is scheduled to finish by mid-April 2021. Our challenge is to engage the CPT consultants on new projects with minimal downtime.

CPT Global Limited – Financial Report

6

==> picture [111 x 79] intentionally omitted <==

Directors’ Report

==> picture [59 x 97] intentionally omitted <==

With travel restrictions in place and face-to-face meetings an uncommon occurrence, we have invested in building a digital marketing capability to assist our sales teams by generating qualified leads at businesses we are targeting. The first campaign launched in North America in January 2021 and two further campaigns are in the planning phase.

Covid-19 continues to drive business practices around the globe and we are working on the assumption that we will continue to deliver our services remotely in most regions for the balance of the financial year and move to hybrid remote/office delivery as clients reopen. We expect our Australian clients to begin reopening offices over the coming months with most adopting a hybrid approach. We do not expect our North American or European clients to begin the process of reopening until later in 2021. International travel is not likely to recommence until 2022.

Governance and procurement processes continue to be strengthened and expanded by clients around contracting and spending and budgeting decisions. Longer term projects are being funded over shorter periods to give clients greater flexibility in uncertain times. This has resulted in an increase in the time it takes from sale to commencing an engagement and an increase in back office support to the sales team. This also gives rise to a risk that contracts that come up for renewal will not be renewed on existing terms.

We do not expect to see a material change in our Canadian or Asian regions in the second half of the financial year and they will be managed opportunistically. Our consultants and sales team in Canada will continue to support the USA.

Our European business will see some growth from a contract with a South African bank. The initial 8 week assignment will be completed this financial year with the potential to grow into a major client.

Our medium-term goal is to increase the dividend payout ratio to historic levels of between 70% and 90% of net profit. The timing of this will be contingent upon the business’s cash requirements for investment in profitable growth and to build cash reserves.

DIVIDEND

A fully franked interim dividend of 2.0 cents per share has been declared for the half year to 31 December 2020. The dividend will be franked at the Australian tax rate of 26% and will be paid on 29 March 2021.

AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration for the half year ended 31 December 2020 has been received and can be found on page 8 of the directors’ report.

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 Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. The company is an entity to which the Class Order applies.

Signed in accordance with a resolution of the directors.

==> picture [162 x 41] intentionally omitted <==

Gerry Tuddenham Managing Director Melbourne, 19 February 2021

CPT Global Limited – Financial Report

7

Take the lead

==> picture [129 x 47] intentionally omitted <==

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE

CORPORATIONS ACT 2001 TO THE DIRECTORS OF CPT GLOBAL LIMITED

As lead auditor, I declare that, to the best of my knowledge and belief, during the half-year ended 31 December 2020 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.

==> picture [160 x 57] intentionally omitted <==

ShineWing Australia

Chartered Accountants

==> picture [134 x 48] intentionally omitted <==

Rami Eltchelebi Partner

Melbourne, 19 February 2021

Brisbane Melbourne Sydney Level 14 Level 10 Level 8 12 Creek Street 530 Collins Street 167 Macquarie Street Brisbane QLD 4000 Melbourne VIC 3000 Sydney NSW 2000 T + 61 7 3085 0888 T + 61 3 8635 1800 T + 61 2 8059 6800 F + 61 3 8102 3400 F + 61 2 8059 6899

==> picture [46 x 46] intentionally omitted <==

ShineWing Australia ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. ShineWing Australia is an independent member of ShineWing International Limited.

shinewing.com.au

8

==> picture [111 x 79] intentionally omitted <==

==> picture [59 x 97] intentionally omitted <==

Consolidated Statement of Profit or Loss and Other Comprehensive Income

HALF YEAR ENDED 31 DECEMBER 2020 Notes

Income HALF YEAR ENDED 31 DECEMBER 2020 Notes
	31 Dec 20 31 Dec 19 $’000 $’000
Revenue Other income Salaries and employee benefits expense Consultants benefits expense Depreciation and amortisation expenses Insurance expense Finance costs Occupancy Costs Other expenses Foreign currency losses Impairment loss PROFIT/(LOSS) BEFORE INCOME TAX INCOME TAX BENEFIT/(EXPENSE) PROFIT/(LOSS) AFTER INCOME TAX Other Comprehensive Loss: Items that may be subsequently reclassified to comprehensive income Exchange differences on translating foreign controlled entities Total Other Comprehensive Income for the year, net of tax TOTAL COMPREHENSIVE PROFIT / (LOSS) FOR THE YEAR PROFIT/(LOSS) ATTRIBUTABLE TO MEMBERS OF CPT GLOBAL LIMITED TOTAL COMPREHENSIVE PROFIT (LOSS) ATTRIBUTABLE TO MEMBERS OF CPT GLOBAL LIMITED Basic earnings per share (cents per share) Diluted earnings per share (cents per share)	18,090 12,058 51 7 (1,322) (1,271) (12,256) (8,636) (94) (177) (181) (155) (121) (102) (108) (158) (897) (1,853) (179) (21) - (4,232)
	2,981 (4,540) (715) 752 2,267 (3,788) (320) (157)
	(320) (157)
	1,947 (3,945)
	2,267 (3,788)
	1,947 (3,945)
	5.77 (9.89) 5.77 (9.81)

The Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the Notes to the Financial Statements.

CPT Global Limited – Financial Report

9

==> picture [111 x 79] intentionally omitted <==

==> picture [59 x 97] intentionally omitted <==

Consolidated Statement of Financial Position AT 31 DECEMBER 2020

Consolidated Statement of Financial Position AT 31 DECEMBER 2020
Notes	31 Dec 20 30 June 20 $’000 $’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 3 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Borrowings 5 Current tax liabilities Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Deferred tax liability Other long term provisions Borrowings TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Retained earnings TOTAL EQUITY	3,815 3,133 2,713 3,251 1,427 1,115 - 645 590 139
	8,545 8,283 1,061 1,092 614 702 - -
	1,675 1,794
	10,220 10,077
	3,708 5,164 622 818 220 - 807 775
	5,357 6,757 123 86 - - 322 491
	445 577
	5,802 7,334
	4,418 2,743
	12,602 12,396 1,018 1,337 (9,202) (10,990) 4,418 2,743

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

CPT Global Limited – Financial Report

10

==> picture [111 x 79] intentionally omitted <==

==> picture [59 x 97] intentionally omitted <==

Consolidated Statement of Changes in Equity HALF YEAR ENDED 31 DECEMBER 2020

Notes Balance at 1 July 2019 Comprehensive Income Profit/(loss) for the year Other comprehensive Income Total comprehensive income/(loss) for the year Transactions with owners, in their capacity as owners Share based payments Dividends paid or provided for Dividend re-investment Issue of Shares Total transactions with owners, in their capacity as owners Balance at 31 December 2019 Balance at 1 July 2020 Comprehensive Income Profit/(loss) for the year Other comprehensive Income Total comprehensive income/(loss) for the year Transactions with owners, in their capacity as owners Share based payments Dividends paid or provided for Dividend re-investment Issue of Shares Total transactions with owners, in their capacity as owners Balance at 31 December 2020	$’000 $’000 $’000 $’000 $’000 Issued Retained Equity Foreign Currency Translation Capital Earnings Reserve Reserve Total
	12,308 (7,456) 1,706 (189) 6,369 - (3,788) - - (3,788) - - - (157) (157)
	- (3,788) - (157) (3,945)
	- - - - - - (189) - - (189) 91 - - - 91 - - - - -
	91 (189) - - (98)
	12,399 (11,433) 1,706 (346) 2,326
	12,396 (10,990) 1,706 (369) 2,743 - 2,267 - - 2,267 - - - (320) (320)
	- 2,267 - (320) (1,947)
	- - - - - - (478) - - (478) 206 - - - 206 - - - - -
	206 (478) - - (272)
	12,602 (9,202) 1,706 (688) 4,418

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

CPT Global Limited – Financial Report

11

==> picture [111 x 79] intentionally omitted <==

==> picture [59 x 97] intentionally omitted <==

Consolidated Statement of Cash Flows HALF YEAR ENDED 31 DECEMBER 2020

Consolidated Statement of Cash Flows HALF YEAR ENDED 31 DECEMBER 2020
Notes	31 Dec 20 31 Dec 19 $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Finance costs Income tax (paid)/refunded 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 Repayments of borrowings Payment of dividends on ordinary shares NET CASH FLOWS FROM FINANCING ACTIVITIES NET INCREASE 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	19,254 17,557 (18,083) (15,146) 12 2 (60) (56) 280 (892)
	1,403 1,465
	(6) (6)
	(6) (6)
	(364) (405) (272) (99)
	(636) (504)
	761 955 3,133 1,653 (79) (92) 3,815 2,516

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

CPT Global Limited – Financial Report

12

Notes to the Financial Statements Half-Year Ended 31 December 2020

==> picture [111 x 79] intentionally omitted <==

==> picture [59 x 97] intentionally omitted <==

1. Basis of Preparation of the Half-Year Financial Report

Basis of Preparation

These general purpose interim financial statements for the half-year reporting period ended 31 December 2020 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 2020, 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. The changes in accounting policies specified below only apply to the current period.

Critical Accounting Estimates and Judgements

The critical estimates and judgements made by management in preparing this half year financial report are consistent with those applied and disclosed in the June 2020 annual report.

CPT Global Limited – Financial Report

13

==> picture [111 x 79] intentionally omitted <==

Notes to the Financial Statements

==> picture [59 x 97] intentionally omitted <==

Half-Year Ended 31 December 2020

2. DIVIDENDS

(a) Dividends paid during the year  Prior year final Franked dividends (1.25c per share) (2019: 0.50c per share) (b) Aggregate dividends declared post period end Fully franked interim dividend of 2.00 cents per share (2019: 0.00 cents per share). 3. INTANGIBLE ASSETS Goodwill at cost Accumulated impairment losses Total goodwill Intellectual Property at cost Accumulated impairment losses Total intellectual property Software at cost Disposals Write back of accumulated amortisation on disposals Accumulated amortisation Total software Total intangible assets	As at 31 Dec 20 As at 31 Dec 19 $'000 $'000 478 189
	478 189
	786 - 786 -
	31 Dec 20 30 June 20 $'000 $'000 9,659 9,659 (9,659) (9,659)
	- -
	75 75 (75) (75)
	- -
	750 750 - - - - (750) (750)
	0 0 0 0

The following information relates to the comparative period and explains the impairment of goodwill as at 31 December 2019.

At 31 December 2019 there was an impairment indicator asset assessment undertaken of the intangible assets allocated to the Australian CGU. As the Australian CGU had not achieved its revenue budget for the 6 month period to 31 December 2019, an indicator of impairment existed and a valuation of intangible assets was performed to determine the recoverable amount.

The valuation confirmed that the balance of goodwill and intellectual property were impaired and an impairment loss of $4.2 million recognised in the Statement of Profit and Loss. The impairment loss results in goodwill and intellectual property being impaired to zero in the Statement of Financial Position.

4. CONTINGENT LIABILITIES

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

CPT Global Limited – Financial Report

14

==> picture [111 x 79] intentionally omitted <==

Notes to the Financial Statements Half-Year Ended 31 December 2020

==> picture [59 x 97] intentionally omitted <==

5. BORROWINGS

5. BORROWINGS
Note CURRENT Secured borrowings 5(a) Lease liability 5(b) Total current borrowings NON- CURRENT Lease liability 5(b) Unutilised financing facilities Credit facility Amount secured utilised 5(a)	As at 31 Dec 20 As at 30 June 20 $'000 $'000 303 592 319 226
	622 818
	322 491
	5,000 5,000 (303) (592)
	4,697 4,408

(a) The parent entity has a debtors financing facility in place. The facility is secured by a first registered company charge (mortgage debenture) over the carrying value of the total assets of the parent entity, which totalled $1.4m at the end of the reporting period. Interest is charged at a 5.5% margin above the 90 day Bank Bill Swap Rate. The maximum facility is $5m with the available facility based on the value of the Australian debtor book. At 31 December 2020, the available funding under the facility was $0.5m.

• (b) The Group has a lease contract for the use of property. The lease has a term of 5 months remaining with a 3 year option. The weighted average incremental borrowing rates used to measure lease liabilities is 7%.

6. OPERATING SEGMENTS

Segment Performance

==> picture [511 x 260] intentionally omitted <==

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

Australia Europe North America Consolidated
Dec-20 Dec-19 Dec-20 Dec-19 Dec-20 Dec-19 Dec-20 Dec-19
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
REVENUE
External Sales 10,417 6,077 333 220 7,340 5,762 18,090 12,058
Miscellaneous Revenue - -
Total Group Revenue 18,090 12,058
Segment Gross Profit before tax 2,988 1,636 177 76 3,905 2,330 7,122 4,051
Reconciliation of segment result to
group profit/loss before tax
Unallocated Items
- Overheads (4,141) (4,359)
- Impairment loss - (4,232)
Profit/ (Loss) before tax 2,981 (4,540)
----- End of picture text -----

CPT Global Limited – Financial Report

15

==> picture [111 x 79] intentionally omitted <==

Notes to the Financial Statements Half-Year Ended 31 December 2020

==> picture [59 x 97] intentionally omitted <==

6. OPERATING SEGMENTS (cont.)

Segment Assets

==> picture [496 x 515] intentionally omitted <==

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

Australia Europe North America Consolidated
Dec-20 Jun-20 Dec-20 Jun-20 Dec-20 Jun-20 Dec-20 Jun-20
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Segment Assets 1,697 2,877 243 41 2,105 1,353 4,046 4,271
Segment asset increases
for the period:
- Capital Expenditure - - - - - - - -
1,697 2,877 243 41 2,105 1,353 4,046 4,271
Reconciliation of segment
assets to group assets
Unallocated assets:
- Goodwill - - - - - -
- Property, plant & 614 702
equipment
- Other Assets 5,560 5,104
Total Group Assets 10,220 10,077
Segment Liabilities
Australia Europe North America Consolidated
Dec-20 Jun-20 Dec-20 Jun-20 Dec-20 Jun-20 Dec-20 Jun-20
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Segment Liabilities 5,052 6,162 595 440 (775) (129) 4,882 6,472
Segment liability increases
for the period:
- - - - - - - - -
5,052 6,162 595 440 (775) (129) 4,882 6,472
Reconciliation of segment
liabilities to group liabilities
Unallocated liabilities:
- Provisions 827 786 - - 102 76 930 862
- Other Liabilities - - - - - - - -
Total Group Liabilities 5,802 7,334
----- End of picture text -----

CPT Global Limited – Financial Report

16

==> picture [111 x 79] intentionally omitted <==

Notes to the Financial Statements

==> picture [59 x 97] intentionally omitted <==

Half-Year Ended 31 December 2019

7. SHARE-BASED PAYMENTS

On 28 November 2018, 450,000 performance rights were granted to directors to take up ordinary shares. The performance rights expire on 27 November 2022, vest over a three year period in three equal tranches and are contingent upon the Company’s net profit after tax and share price reaching targets in each of the 2019, 2020 and 2021 financial years.

The performance shares hold no voting or dividend rights, are not transferrable and will lapse in the event of the resignation of a director. At the date of this report, all directors in receipt of the performance shares remain employed by CPT.

The fair value of the performance shares, at the time they were granted, was determined to be $27,863. The expense recognised for the 6 months to 31 December 2020 was $1,719.

At 31 December 2020, there were NIL (2019: NIL) performance rights vested but not exercised.

There are no other options or performance rights granted by CPT Global Limited to any other party.

8. EVENTS AFTER THE REPORTING PERIOD

No events have occurred after the reporting period that would require disclosure in these financial statements,

CPT Global Limited – Financial Report

17

==> picture [111 x 79] intentionally omitted <==

Directors’ Statement

==> picture [59 x 97] intentionally omitted <==

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 9 to 17, 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 2020 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

==> picture [162 x 41] intentionally omitted <==

Gerry Tuddenham Managing Director Melbourne, 19 February 2021

CPT Global Limited – Financial Report

18

Take the lead

==> picture [129 x 47] intentionally omitted <==

INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF CPT GLOBAL LIMITED

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of CPT Global Limited (the Company and its subsidiaries (the Group)) which comprises the consolidated statement of financial position as at 31 December 2020, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of CPT Global Limited does not comply with the Corporations Act 2001 , including:

• a. giving a true and fair view of the Group’s financial position as at CPT Global Limited and of its performance for the half-year ended on that date, and

• b. complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Responsibility of the Directors’ for the Financial Report

The directors of CPT Global Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Review of the Financial Report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at CPT Global Limited and its performance for the half-year ended on that date and

Brisbane	Melbourne	Sydney
Level 14	Level 10	Level 8
12 Creek Street	530 Collins Street	167 Macquarie Street
Brisbane QLD 4000	Melbourne VIC 3000	Sydney NSW 2000
T + 61 7 3085 0888	T + 61 3 8635 1800	T + 61 2 8059 6800
	F + 61 3 8102 3400	F + 61 2 8059 6899

==> picture [46 x 46] intentionally omitted <==

ShineWing Australia ABN 39 533 589 331. Liability limited by a scheme approved under Professional Standards Legislation. ShineWing Australia is an independent member of ShineWing International Limited.

shinewing.com.au

19

Take the lead

complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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.

==> picture [156 x 55] intentionally omitted <==

ShineWing Australia

Chartered Accountants

==> picture [138 x 53] intentionally omitted <==

Rami Eltchelebi Partner

Melbourne, 19 February 2021

20

==> picture [111 x 79] intentionally omitted <==

==> picture [59 x 97] intentionally omitted <==

Corporate Information

ACN 083 090 895 ABN 16 083 090 895

Directors

Fred Grimwade

(Non-executive Chairman)

Auditors

ShineWing Australia

Level 10, 530 Collins Street Melbourne VIC 3000

Gerard (Gerry) Tuddenham

(Managing Director)

Nigel Sandiford

(Non-executive Director)

Company Secretary

Share Register Boardroom Pty Ltd

Level 12, 225 George Street Sydney NSW 2000 Telephone: 1300 737 760 Facsimile: +61 (0)2 9290 9600

Grant Sincock

Solicitors

Principal Registered Office

Level 3, 818 Bourke Street Docklands VIC 3008 Telephone: +61 (0)3 9684 7900 Internet: www.CPTglobal.com

CPT Global on the Web

Nicholson Ryan Lawyers

Bankers

ANZ Banking Group Limited

ASX Code CGO

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

==> picture [596 x 31] intentionally omitted <==

CPT Global Limited – Financial Report

21