EXPERIENCE CO LIMITED — Annual Report 2016

Aug 28, 2016

ACN 167 320 470

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APPENDIX 4E
PRELIMINARY FINAL REPORT
For the year ended 30 June 2016
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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Appendix 4E - Preliminary Final Report for the year ended 30 June 2016

Results for announcement to the market

	Year ended	Year ended
	30-Jun-16	30-Jun-15	Variance
	$'000	$'000	%
Revenue from ordinary activities	58,473	26,320	122.2%
Earnings before interest, taxes, depreciation and amortisation (EBITDA)*	13,458	6,025	123.4%
Net profit after tax	7,158	2,468	190.0%
Profit after tax attributable to members of the parent entity	7,158	2,468	190.0%
Earnings per share (cents)
- Basic	2.10	1.13	85.6%
- Diluted	2.04	1.10	85.1%
Cash and cash equivalents	12,819	9,235	38.8%

Dividends

On 30 October 2015, a fully franked dividend of $0.01 per share was paid out of retained profits at 30 June 2015, amounting to $2,937,297.

The Directors have declared a final and fully franked dividend of $0.01 per share, amounting to $3,963,014, payable on 30 September 2016 out of retained profits at 30 June 2016. For the purposes of determining any entitlement to the dividend, the record date has been set as 20 September 2016.

Acquisition of NZone Skydive

On 30 October 2015, Skydive (New Zealand) Ltd, a wholly-owned subsidiary, acquired all the shares in Skydive Queenstown Ltd, Skydive Glenorchy Ltd and Parachute Adventure Queenstown Ltd, being companies registered and trading within New Zealand and collectively known and marketed as NZone Skydive, for the consideration of NZ$17million, including the purchase of loan accounts of NZ$2,021,902.

Commentary on the Results

As at 30 June 2016, Skydive the Beach Group Limited operated 15 skydiving drop zones in Australia and 2 in New Zealand. In Australia, the skydiving drop zones are across New South Wales, Queensland, Victoria and Western Australia, while the two New Zealand skydiving drop zones are located in Queenstown and Glenorchy.

• EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (“AAS”) and represents the profit under AAS adjusted for specific non-cash and significant items. The directors consider EBITDA to reflect the core earnings of the consolidated entity. A reconciliation between EBITDA and profit after income tax for the financial year ended 30 June 2016 is included below.

Less: Depreciation and amortisation Less: Finance costs Profit before tax Income tax expense Net profit for the year after tax Earnings before interest, taxes, depreciation and amortisation (EBITDA)	Year ended Year ended 30-Jun-16 30-Jun-15 $'000 $'000 13,458 6,025 (3,599) (1,388) (669) (582)
	9,189 4,055 (2,031) (1,587)
	7,158 2,468

1

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Appendix 4E - Preliminary Final Report for the year ended 30 June 2016

The EBITDA for the year ended 30 June 2016 increased by 123.4% when compared to the year ended 30 June 2015. When comparing the EBITDA for the 12 months to 30 June 2016 set out below is the number of months trading from acquisitions year on year:

	30-Jun-16	30-Jun-15
Australia Skydive Pty Ltd purchased on 31 March 2015	12 months	3 months
NZone Skydive purchased on 30 October 2015	8 months	NIL
Net Tangible Assets
	30-Jun-16	30-Jun-15
Net Assets (cents per share)	0.18	0.11
Net Tangible Assets (cents per share)	0.13	0.09

Events After the End of the Period

On 1 July 2016, the Group acquired all the share capital and assets of Skydive Wanaka Limited, being a skydiving operation in Wanaka, New Zealand. Consideration for this acquisition was NZ$10.4 million (of which AU$9.948 million was paid as a deposit prior to 30 June 2016, refer note 10).

Preliminary Final Report

The preliminary final report of Skydive the Beach Group Limited for the year ended 30 June 2016 is attached.

Audit status

The report is based on accounts that are in the process of being audited. It is not expected that the report is likely to contain an independent audit report that is subject to a modified opinion, emphasis of matter or other matter paragraph.

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Anthony Boucaut Chief Executive Officer

Anthony Ritter Chief Financial Officer

29 August 2016

2

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2016

Note Revenue 4 Cost of sales 5 Gross profit Other income 4 Administration and corporate expenses Occupancy expenses 5 Depreciation and amortisation expenses 5 Marketing, advertising and agents commission Repairs and maintenance expenses Finance costs 5 Other expenses Profit before income tax Income tax expense 6 Net profit for the year Other comprehensive income/(losses), net of tax: Items that will not be reclassified to profit or loss: Revaluation of property, plant and equipment, net of tax Exchange differences on translation of foreign operations Total other comprehensive income Total comprehensive income for the year Earnings per share From continuing operations: Basic earnings per share (cents) 19 Diluted earnings per share (cents) 19	30 June 2016 30 June 2015 $000 $000 58,473 26,320 (31,739) (13,737) Consolidated Group
	26,734 12,583 1,262 666 (11,294) (2,888) (1,692) (711) (3,599) (1,388) (1,347) (2,913) (176) (271) (669) (582) (29) (441)
	9,189 4,055 (2,031) (1,587)
	7,158 2,468 (458) 2,844 (101) -
	(559) 2,844
	6,599 5,312
	2.10 1.13 2.04 1.10

The accompanying notes form part of these financial statements.

3

Skydive the Beach Group Limited and Controlled Entities

ACN: 167 320 470

Consolidated Statement of Financial Position as at 30 June 2016

Note ASSETS Current assets Cash and cash equivalents 7 Trade and other receivables 8 Inventories 9 Other current assets 10 Total current assets Non-current assets Trade and other receivables 8 Other financial assets Property, plant and equipment 11 Intangible assets 12 Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables 13 Deferred revenue 14 Borrowings 15 Provisions 16 Current tax liabilities 17 Total current liabilities Non-current liabilities Borrowings 15 Deferred tax liabilities 17 Provisions 16 Total non-current liabilities Total liabilities Net assets Equity Issued capital 18 Retained earnings Reserves Total equity	30 June 2016 30 June 2015 $000 $000 12,819 9,235 2,483 1,979 1,486 1,244 11,999 417 Consolidated Group
	28,787 12,875
	1,495 1,735 27 27 39,503 26,883 17,996 7,624
	59,021 36,269
	87,808 49,144
	2,662 2,297 202 668 2,049 1,401 606 391 3,078 1,021
	8,597 5,778
	8,297 8,218 793 1,930 74 33
	9,164 10,181
	17,761 15,959
	70,047 33,185
	65,231 32,039 6,689 2,468 (1,873) (1,322)
	70,047 33,185

The accompanying notes form part of these financial statements.

4

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Consolidated Statement of Changes in Equity for the year ended 30 June 2016

Note Consolidated Group Balance at 1 July 2014 Comprehensive income Profit for the year Other comprehensive income for the year Total comprehensive income for the year Transactions with owners, in their capacity as owners, and other transfers Shares issued during the year 18 Transaction costs, net of tax impact Common control group reorganisation Employee share options issued Total transactions with owners and other transfers Balance as at 30 June 2015 Balance at 1 July 2015 Comprehensive income Profit for the year Other comprehensive income for the year Total comprehensive income for the year Transactions with owners, in their capacity as owners, and other transfers Shares issued during the year 18 Transaction costs, net of tax impact Dividends paid during the year 2 Employee share options issued Total transactions with owners and other transfers Balance as at 30 June 2016	Issued Capital Retained Earnings Asset Revaluation Reserve Common Control Reserve Share Option Reserve Foreign Currency Translation Reserve Total $000 $000 $000 $000 $000 $000 $000 27 - - - - - 27 - 2,468 - - - - 2,468 - - 2,844 - - - 2,844
	- 2,468 2,844 - - - 5,312
	33,428 - - - - - 33,428 (1,416) - - - - - (1,416) - - - (4,171) - - (4,171) - - - - 5 - 5
	32,012 - -(4,171) 5 - 27,846
	32,039 2,468 2,844(4,171) 5 - 33,185
	32,039 2,468 2,844 (4,171) 5 - 33,185 - 7,158 - - - - 7,158 - -(458) - -(101) (559)
	- 7,158(458) - -(101) 6,599
	35,058 - - - - - 35,058 (1,866) - - - - - (1,866) - (2,937) - - - - (2,937) - - - - 8 - 8
	33,192(2,937) - - 8 - 30,263
	65,231 6,689 2,386(4,171) 13(101) 70,047

The accompanying notes form part of these financial statements.

5

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Consolidated Statement of Cash Flows for the year ended 30 June 2016

Note Cash flows from operating activities Receipts from customers Payments to suppliers and employees Finance costs Income tax paid Net cash provided by operating activities 20 Cash flows from investing activities Payments for property, plant and equipment Proceeds/(payments) for other non-current assets Proceeds from disposal of plant and equipment Payments for business acquisitions 1 Cash acquired in the group reorganisation Cash acquired in business acquisitions Net cash used in investing activities Cash flows from financing activities Proceeds from issued capital Transaction costs associated with share issue Dividends paid Loans to related parties Loan repayments from related parties Repayment of borrowings Proceeds from borrowings Net cash provided by financing activities Net increase in cash held Cash at beginning of the year Cash at end of the year 7	Year Ended Year Ended 30 June 2016 30 June 2015 $000 $000 59,219 25,317 (50,213) (20,115) (669) (582) (1,050) (1,273) Consolidated Group
	7,289 3,347
	(12,288) (5,049) 183 (253) 1,060 60 (23,662) (8,621) - 1,192 243 195
	(34,464) (12,476)
	34,522 25,000 (1,803) (2,023) (2,937) - (256) (1,445) 507 - (1,609) (4,781) 2,335 1,596
	30,759 18,347
	3,584 9,218 9,235 17
	12,819 9,235

The accompanying notes form part of these financial statements.

6

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the year ended 30 June 2016

1 Acquisition of Controlled Entities

• (i) On 30 October 2015, Skydive (New Zealand) Ltd, a wholly-owned subsidiary, acquired all the shares in Skydive Queenstown Ltd, Skydive Glenorchy Ltd and Parachute Adventure Queenstown Ltd, being companies registered and trading within New Zealand and collectively known and marketed as NZone Skydive, for the consideration of NZ$17 million, including the purchase of loan accounts of NZ$2,021,902.

Fair value of purchase consideration:

Consisting of: - Cash consideration - Shares issued Total consideration Cash consideration Cash outflow Assets and liabilities held at acquisition date: - Current assets - Non-current assets - Current liabilities - Non-current liabilities Goodwill on consolidation Non-controlling equity interests in acquisition	13,714 473
	14,187
	13,714
	13,714
	542 11,459 (521) (1,822)
	9,658
	4,529 -
	14,187

(ii) On 30 June 2016, a deposit of AU$9.948 million was paid for the acquisition of Skydive Wanaka Limited, being a skydiving operation in Wanaka, New Zealand, which was effective from 1 July 2016 (refer note 10 and note 25).

2 Dividends

A final fully franked dividend of $0.01 per share was paid on 30 October 2015 out of retained profits at 30 June 2015, amounting to $2,937,297.

The Directors have declared a final and fully franked dividend of $0.01 per share, amounting to $3,963,014, payable on 30 September 2016 out of retained profits at 30 June 2016. For the purposes of determining any entitlement to the dividend, the record date has been set as 20 September 2016.

3 Net tangible assets per share Net Assets Net Assets (cents per share) Net Tangible Assets Net Tangible Assets (cents per share) 4 Revenue and Other Income Revenue Sale of goods and services Other income Interest received Other income 5 Profit for the Year Profit before income tax from continuing operations includes the following specific expenses: Cost of sales Finance costs Occupancy costs Depreciation and amortisation expenses	30-Jun-16 30-Jun-15 $000 $000 70,047 33,185 0.18 0.11 52,051 25,560 0.13 0.09 58,473 26,320 140 72 1,122 594 Consolidated Group
	1,262 666
	31,739 13,737 669 582 1,692 711 3,599 1,388

7

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the year ended 30 June 2016

6 Tax Expense

6	Tax Expense
		Consolidated Group
		30-Jun-16	30-Jun-15
		$000	$000
	The components of tax expense comprise:
	Current tax	2,970	1,176
	Deferred tax	(939)	355
	Under provision of tax from prior years	-	56
		2,031	1,587
	Deferred tax included in income tax expense comprises:
	Movement in deferred tax assets	(11)	(8)
	Movement in deferred tax liabilities	(928)	363
		(939)	355
	The prima facie tax payable on profit before income tax is reconciled to the income tax expense as follows:
	Prima facie tax payable on profit before income tax at 30% (2015: 30%)	2,757	1,216
	Add tax effect of:
	Non-deductible depreciation and amortisation	182	7
	Deductible acquisition costs	91	-
	Assessable income received in advance	31	-
	Deductible maintenance costs	(63)	-
	Other non-allowable items	21	19
		3,019	1,242
	Under provision of tax from prior years	-	56
	Recognition of deferred tax balances	(937)	286
	Impact of foreign exchange differences	8	-
	Impact of lower tax rates applicable to New Zealand subsidiaries	(59)	-
	Cancellation of prior year losses	-	3
	Income tax attributable to the group	2,031	1,587
7	Cash and Cash Equivalents
	Cash at bank and on hand	12,796	4,235
	Short-term bank deposits	23	5,000
		12,819	9,235
	Reconciliation of cash
	Cash at the end of the financial year as shown in the statement of cashflows is reconciled to the items in the statement of
	financial position as follows:
	Cash and cash equivalents	12,819	9,235
8	Trade and Other Receivables
	CURRENT
	Trade receivables	1,229	1,534
	Provision for impairment	(3)	(16)
		1,226	1,518
	Amounts due from other related parties	288	300
	Other receivables	969	161
		2,483	1,979
	NON CURRENT
	Amounts due from other related parties	1,495	1,735
		1,495	1,735
9	Inventories
	CURRENT
	Raw materials, spares and stores - at cost	1,486	1,244
10	Other Current Assets
	Prepayments	1,693	180
	Deposit paid for business combinations	9,948	-
	Other current assets	358	237
		11,999	417

8

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the year ended 30 June 2016

11 Property, Plant and Equipment

Plant and equipment: At cost Accumulated depreciation Leasehold improvements: At cost Accumulated depreciation Aircraft: At revalued amounts Accumulated depreciation Motor vehicles: At cost Accumulated depreciation Office equipment: At cost Accumulated depreciation Land At cost Accumulated depreciation Buildings At cost Accumulated depreciation Total property, plant and equipment a) Movements in Carrying Amounts Plant & Equipment Leasehold Improvements Aircraft Motor Vehicles Office Equipment Land $000 $000 $000 $000 $000 $000 Opening balance 1 July 2015 6,041 636 19,066 1,011 129 - Additions through business combinations 99 8 5,397 55 2 - Additions 1,513 68 8,454 515 88 340 Revaluations (677) - 26 (71) - - Disposals (162) - (552) (30) - - Transfers between classes (1,363) 14 816 7 136 - Depreciation expense (592) (51) (1,951) (175) (129) - Closing balance 30 June 2016 4,859 675 31,256 1,312 226 340 Opening balance 1 July 2014 - - - - - - Assets acquired in group re- organisation 2,704 287 6,489 452 51 Additions through business combinations 1,853 316 6,109 300 64 - Additions 1,919 51 2,699 344 36 - Revaluations - - 4,606 - - - Disposals - - (60) - - - Depreciation expense (435) (18) (777) (85) (22) - Closing balance 30 June 2015 6,041 636 19,066 1,011 129 -	Plant and equipment: At cost Accumulated depreciation Leasehold improvements: At cost Accumulated depreciation Aircraft: At revalued amounts Accumulated depreciation Motor vehicles: At cost Accumulated depreciation Office equipment: At cost Accumulated depreciation Land At cost Accumulated depreciation Buildings At cost Accumulated depreciation Total property, plant and equipment a) Movements in Carrying Amounts Plant & Equipment Leasehold Improvements Aircraft Motor Vehicles Office Equipment Land $000 $000 $000 $000 $000 $000 Opening balance 1 July 2015 6,041 636 19,066 1,011 129 - Additions through business combinations 99 8 5,397 55 2 - Additions 1,513 68 8,454 515 88 340 Revaluations (677) - 26 (71) - - Disposals (162) - (552) (30) - - Transfers between classes (1,363) 14 816 7 136 - Depreciation expense (592) (51) (1,951) (175) (129) - Closing balance 30 June 2016 4,859 675 31,256 1,312 226 340 Opening balance 1 July 2014 - - - - - - Assets acquired in group re- organisation 2,704 287 6,489 452 51 Additions through business combinations 1,853 316 6,109 300 64 - Additions 1,919 51 2,699 344 36 - Revaluations - - 4,606 - - - Disposals - - (60) - - - Depreciation expense (435) (18) (777) (85) (22) - Closing balance 30 June 2015 6,041 636 19,066 1,011 129 -	As at As at 30-Jun-16 30-Jun-15 $000 $000 6,367 7,168 (1,508) (1,127) Consolidated Group
		4,859 6,041
		1,029 935 (354) (299)
		675 636
		34,135 19,239 (2,879) (173)
		31,256 19,066
		1,788 1,248 (476) (237)
		1,312 1,011
		696 429 (470) (300)
		226 129
		340 - - -
		340 -
		844 - (9) -
		835 -
		39,503 26,883
		Buildings Total $000 $000 - 26,883 237 5,798 607 11,585 - (722) - (744) - (390) (9) (2,907)
	4,859 675 31,256 1,312 226 340	835 39,503
	- - - - - - 2,704 287 6,489 452 51 1,853 316 6,109 300 64 - 1,919 51 2,699 344 36 - - - 4,606 - - - - - (60) - - - (435) (18) (777) (85) (22) -	- - 9,983 - 8,642 - 5,049 - 4,606 - (60) - (1,337)
	6,041 636 19,066 1,011 129 -	- 26,883

9

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the year ended 30 June 2016

12 Intangible Assets

Goodwill: At cost Accumulated impaired losses Trademarks, trade names and licences: At cost Accumulated amortisation and impairment losses

Computer software: At cost Accumulated amortisation and impairment losses

Customer relationships and other intangible assets: At cost Accumulated amortisation

Total property, plant and equipment

	Consolidated Group	Consolidated Group
	As at	As at
	30-Jun-16	30-Jun-15
	$000	$000
	7,911	3,569
	-	-
	7,911	3,569
	5,344	2,000
	-	-
	5,344	2,000
	813	301
	(491)	(54)
	322	247
	4,815	1,831
	(396)	(23)
	4,419	1,808
	17,996	7,624

a) Movements in Carrying Amounts

Amortisation expense Opening balance 1 July 2015 Additions through business combinations Additions Closing balance 30 June 2016 Opening balance 1 July 2014 Additions through business combinations Additions Amortisation expense Closing balance 30 June 2015 Opening revaluation adjustment Transfers between classes Additions through group re-organisation	Goodwill Trademarks, trade names & licences Computer Software Customer relationships and other Total $000 $000 $000 $000 $000 3,569 2,000 247 1,808 7,624 4,550 3,344 7 2,303 10,204 - - 159 519 678 (208) - - - (208) - - 210 180 390 - - (301) (391) (692)
	7,911 5,344 322 4,419 17,996
	- - - - - 1,544 - 26 - 1,570 2,025 2,000 45 1,820 5,890 - - 204 11 215 - - (28) (23) (51)
	3,569 2,000 247 1,808 7,624

13 Trade and Other Payables

CURRENT Trade payables Sundry payables and accrued expenses

14 Deferred Revenue

CURRENT Income received in advance

15 Borrowings

CURRENT Secured liabilities Bank loans Finance lease liabilities Total current borrowings

NON-CURRENT Secured liabilities Bank loans Finance lease liabilities

Unsecured liabilities Vendor finance loan Total non-current borrowings Total borrowings

Consolidated Group	Consolidated Group
30-Jun-16	30-Jun-15
$000	$000
1,085	1,312
1,577	985
2,662	2,297
202	668
64	64
1,985	1,337
2,049	1,401
763	697
5,330	5,289
6,093	5,986
2,204	2,232
8,297	8,218
10,346	9,619

10

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the year ended 30 June 2016

16 Provisions

Provisions Property, plant and equipment Other Opening balance CURRENT Employee benefits NON-CURRENT Employee benefits Total provisions Capital raising costs Tax CURRENT Income tax payable Intangible assets NON-CURRENT LIABILITIES Deferred tax liabilities Future income tax benefits attributable to tax losses Movements: Closing balance Deferred tax liabilities acquired in group reorganisation Charged/(credited) to income statement Charged/(credited) to equity Under/over provision from prior year Foreign exchange differences	30-Jun-16 30-Jun-15 $000 $000 606 391 Consolidated Group
	74 33
	680 424
	3,078 1,021
	1,501 2,658 (94) - (185) (204) (358) (497) - (31) (71) 4
	793 1,930
	1,930 - - 421 (72) 355 (197) 1,154 (867) - (2)
	793 1,930

17	CURRENT Employee benefits NON-CURRENT Employee benefits Total provisions Tax

18 Issued Capital

Balance at the end of the year Shares issued during the year 396,301,350 (2015: 293,729,700) fully paid ordinary shares At the beginning of the year	30-Jun-16 30-Jun-15 $000 $000 65,231 32,039 Consolidated Group
	No. No. 293,729,700 26,618,080 102,571,650 267,111,620
	396,301,350 293,729,700

On 20 October 2015, 62,042,836 shares were issued at $0.30 each to shareholders and institutional investors on the basis of 2 shares for every 9 shares held. On 30 October 2015, 1,576,974 shares were issued at $0.30 each as part of the acquisition of skydiving operations in New Zealand. On 2 November 2015, 3,230,431 shares were issued at $0.30 each to retail shareholders on the basis of 2 shares for every 9 shares held. On 20 June 2016, 35,721,409 shares were issued at $0.42 each to institutional investors.

Earnings Per Share Weighted average number of shares used in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Options granted Weighted average number of shares used in calculating diluted earnings per Profit after tax attributable to members of the parent entity Basic earnings per share (cents) Diluted earnings per share (cents)	30-Jun-16 30-Jun-15 $000 $000 7,158 2,468 Consolidated Group
	No. No. 341,351,567 219,124,111 10,300,000 4,322,466
	351,651,567 223,446,577
	2.10 1.13 2.04 1.10

19 Earnings Per Share

11

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the year ended 30 June 2016

Cash Flow Information Profit after income tax Non-cash flows in profit: Depreciation and amortisation expense Share option expense Unrealised foreign currency exchange gains/losses Changes in assets and liabilities: (Increase)/decrease in trade and other receivables Reconciliation of cash flow from operations with profit after income tax Increase/(decrease) in provisions (Increase)/decrease in other current assets (Increase)/decrease in inventories Increase/(decrease) in trade and other payables Increase/(decrease) in income taxes payable Increase/(decrease) in deferred taxes payable (Increase)/decrease in derivative assets

30-Jun-16 30-Jun-15 $000 $000 7,158 2,468 3,599 1,388 9 5 (101) - (348) (378) (3,472) 21 - - (112) (239) (683) (435) 2,118 (41) (1,136) 355 257 203 Consolidated Group

7,289 3,347

20 Cash Flow Information

21 Share Options

A summary of the movements of all company options issued is as follows:

**21 **	Share Options A summary of the movements of all company options issued is as follows:
		Consolidated Group
			Weighted
			average exercise
		Number	price
	Options outstanding as at 30 June 2015	10,300,000	0.25
	Options outstanding as at 30 June 2016	10,300,000	$0.25
	Options exercisable as at 30 June 2016:	4,966,666
	Options exercisable as at 30 June 2015:	Nil
**22 **	Interests in Subsidiaries
	The subsidiaries listed below have share capital consisting of ordinary shares which are held directly by the Group. The proportion of ownership interests held
	equals the voting rights held by Group.

		2016	2015
	Country of incorporation	%	%
Aircraft Maintenance Centre Pty Ltd	Australia	100	100
Australia Skydive Pty Ltd	Australia	100	100
B & B No 2 Pty Ltd	Australia	100	100
Bill & Ben Investments Pty Ltd	Australia	100	100
Skydive Holdings Pty Ltd	Australia	100	100
Skydive the Beach and Beyond Airlie Beach Pty Ltd	Australia	100	100
Skydive the Beach and Beyond BB Pty Ltd	Australia	100	100
Skydive the Beach and Beyond Central Coast Pty Ltd	Australia	100	100
Skydive the Beach and Beyond Great Ocean Road Pty Ltd	Australia	100	100
Skydive the Beach and Beyond Hunter Valley Pty Ltd	Australia	100	100
Skydive the Beach and Beyond Melbourne Pty Ltd	Australia	100	100
Skydive the Beach and Beyond Newcastle Pty Ltd	Australia	100	100
SBB Trading Pty Ltd (formerly known as Skydive the Beach and Beyond Perth Pty Ltd)	Australia	100	100
Skydive the Beach and Beyond Sydney Wollongong Pty Ltd	Australia	100	100
Skydive the Beach and Beyond Yarra Valley Pty Ltd	Australia	100	100
Skydive.com.au Pty Ltd	Australia	100	100
STBAUS Pty Ltd	Australia	100	100
Skydive International Holdings Pty Ltd	Australia	100	-
Skydive Investments Pty Ltd	Australia	100	-
Skydive (New Zealand) Limited	New Zealand	100	-
Skydive Queenstown Limited	New Zealand	100	-
Skydive Glenorchy Limited	New Zealand	100	-
Parachute Adventure Queenstown Limited	New Zealand	100	-

12

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the year ended 30 June 2016

23 Segment information

Identification of reportable segments

The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of directors in assessing performance and in determining the allocation of resources.

The Group's financial performance is examined primarily from a geographical perspective and operating segments have therefore been determined on the same basis.

The Group has identified the following reportable segments:

• Australia

• ● New Zealand

The following is an analysis of the Group's revenue and results by reportable operating segment for the period under review:

(i) Segment performance

(i)	Segment performance
(ii) (iii)	30 June 2016	Australia New Zealand Total $000 $000 $000
	Revenue Sales revenue Inter-segment elimination Other income Inter-segment elimination Reconciliation of segment result to group net profit/loss before tax Segment net profit/(loss) loss before tax Inter-segment elimination Net profit/(loss) before tax from continuing operations Income tax expense Total profit/(loss) after tax Finance costs Inter-segment elimination Total finance costs Depreciation and amortisation expense 30 June 2015	48,709 10,180 58,889 (416)
		48,709 10,180 58,473
		1,710 30 1,740 (478)
		1,710 30 1,262
		6,246 2,943 9,189 -
		6,246 2,943 9,189 (1,136) (895) (2,031)
		5,110 2,048	7,158
		688 460	1,148 (478)
		688 460	669
		3,112 487	3,599
	Revenue Sales revenue Other income Reconciliation of segment result to group net profit/loss before tax Segment net profit/(loss) loss before tax Income tax expense Total profit/(loss) after tax Finance costs Depreciation and amortisation expense Segment assets 30 June 2016	26,320 - 666 - 4,055 - (1,587) -	26,320 666 4,055 (1,587)
		2,468 -	2,468
		(582) - (1,388) -	(582) (1,388)
	Segment assets Inter-segment eliminations 30 June 2015	84,717 27,091	111,808 (24,000)
			87,808
	Segment assets Segment liabilities 30 June 2016	49,144 -	49,144
	Segment liabilities Inter-segment eliminations 30 June 2015	16,617 19,121	35,739 (17,978)
			17,761
	Segment liabilities	15,959 -	15,959

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the year ended 30 June 2016

24 Contingent Assets and Contingent Liabilities

The Group had no contingent assets or contingent liabilities as at 30 June 2016.

25 Events After the End of the Period

On 1 July 2016, the Group acquired all the share capital and assets of Skydive Wanaka Limited, being a skydiving operation in Wanaka, New Zealand. Consideration for this acquisition was NZ$10.4 million (of which AU$9.948million was paid as a deposit prior to 30 June 2016, refer note 10).

26 Company Details

The registered office and principal place of business is:

• 1/51 Montague Street NORTH WOLLONGONG NSW 2500

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