HANSEN TECHNOLOGIES LIMITED — Annual Report 2010

Aug 22, 2010

HANSEN TECHNOLOGIES LTD ABN 90 090 996 455 AND CONTROLLED ENTITIES

FINANCIAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2010 PROVIDED TO THE ASX UNDER LISTING RULE 4.3A

Rule 4.3A

Appendix 4E Preliminary Final Report

Hansen Technologies Limited and its Controlled Entities

ABN or equivalent company reference: ABN: 90 090 996 455

1. Reporting period

Report for the financial year ended: 30 June 2010 Previous corresponding period is 30 June 2009 the financial year ended:

2. Results for announcement to the market

Revenues from ordinary activities Net profit after tax attributable to members	$A’000
	Up 6% to 57,766 Up 37% to 11,140
	Amount per security	Franked amount per security
Final Dividend
Final dividend for the year ended 30 June 2010	3¢	3¢
Final dividend for previous corresponding period	3¢	3¢
Payment date for the final dividend for the year ended 30 June 2010	27 September 2010
Interim Dividend
Interim dividend for the 2010 fiscal year	2¢	2¢
Interim dividend for previous corresponding period	2¢	2¢
Payment dates for the interim dividend	29 March 2010

A final dividend of 3 cents per share, fully franked, has been declared, bringing the total dividend for the year to 5 cents per share, fully franked.

For the purpose of the Company’s Dividend reinvestment plan the allotment price for this final dividend will subject to a 5% discount.

Please refer to the attached preliminary financial report for the year ended 30 June 2010 and the accompanying press release for more detail.

3. Statement of Comprehensive Income

Refer to the attached statement

4. Statement of Financial Position

Refer to the attached statement

5. Statement of Cash Flows

Refer to the attached statement

6. Dividends

Three cent final dividend – year ended 30 June 2009 Two cent interim dividend – year ended 30 June 2010 Three cent final dividend – year ended 30 June 2010	Date of payment	Total amount of dividend
	2 October 2009	$4,620,644
	29 March 2010	$3,089,315
	27 September 2010	$4,645,107

Amount per security

Amount per security
	Amount per security	Franked amount per security at % tax	Amount per security of foreign sourced dividend
Total dividend: Currentyear(interim)	2¢	30%	0¢
Current year(final)	3¢	30%	0¢
Previous year(final)	3¢	30%	0¢

Total dividend paid on all securities

Ordinary securities Total	Within the current fiscal year $A'000	Previous fiscal year $A'000
	7,710	4,584
	7,710	4,584

7. Details of dividend or distribution reinvestment plans in operation are described below

A Dividend Reinvestment Plan has been established to provide shareholders with the opportunity to reinvest dividends in new shares rather than receiving cash. The directors may alter, suspend or terminate the terms of the Dividend Reinvestment Plan at any time.

The last date for receipt of election notices for participation in the 10 September 2010 dividend or distribution reinvestment plan

8. Statement of retained earnings

	Consolidated Entity
	2010 2009
	$’000 $’000
Balance at the beginning of year	(2,041) (5,588)
Net profit attributable to members of the
parent entity	11,140 8,131
Total available for appropriation	9,099 2,543
Dividendspaid	(7,710) (4,584)
Balance at end of year	1,389 (2,041)

9. Net tangible assets per security

Net tangible asset backing per ordinary security

Current period	Previous corresponding period
13.8 cents	10.8 cents

10. The financial information provided in the Appendix 4E is based on the preliminary financial report (attached), which has been prepared in accordance with Australian accounting standards.

11. Commentary on the results for the period.

Continued strong operational performance and a 3 cent per share fully franked final dividend Hansen Technologies Limited (ASX: HSN) announces confirmation of a record operating performance for the fiscal year ended 30 June 2010.

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The Directors are also pleased to declare a final dividend for the fiscal year;
o of 3 cents per share fully franked,
o bringing the total fully franked dividend for the year to 5 cents per share.
o the final dividend is scheduled for payment on 27 September 2010 with a Record date of Friday 10 September
2010.
o For the purpose of the Company’s Dividend Reinvestment Plan the share application price for this dividend
will be subject to a 5% discount.
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Hansen’s Chief Executive, Andrew Hansen said, “I am pleased to be announcing our 4 [th] year of consecutive year
on year growth in operational performance. The strong performance of the first half year has continued
throughout the second half, with the full year’s results highlighted by;
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o Operating revenue of $57.8 million, up 6%
o Earnings before interest, tax, depreciation and amortisation (EBITDA)
o $17.2 million, an increase of 20%.
o representing a return on revenue of 30%
o After Tax Profit of $11.1 million or 7.2 cents per share.
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With an EBITDA to revenue ratio approaching 30%, we are positioned at the high end of operating performance for an IT business. Our products are targeted at industries undergoing technological and structural change which we are ideally suited to support. We have an excellent customer base with strong annuity revenue streams. Our balance sheet is strong with a solid level of cash reserves.

This past year we have made strategic investments in our future:

• We have invested substantially in improving our internal processes to deliver both short and long term efficiencies in our software development and support activities

• o Increased our sales and marketing commitment in both the Energy and Telecommunications industries in our core geographies as well as investing in new geographies to generate partnering opportunities.

• o Enhanced our products and services to deliver the solution requirements of billing systems arising from the development in energy metering technology and energy grid optimisation initiatives.

• o Completed the full integration of the Peace Software business acquired in October 2008 while optimising the Hansen and Peace Software development methodologies.

• o Advanced our relationships with key existing customers world-wide resulting in a number of major new projects being undertaken

Accordingly in my opinion we are ideally positioned for growth in the coming years. I am genuinely excited about our company’s prospects”.

Key Indicators: Results from Continuing Operations for the year to 30 June	2010 $A million	2009 $A million
Total revenue	57.8	54.3
EBITDA	17.2	14.3
Profit before tax	14.0	10.9
Income tax expense	(2.9)	(2.8)
Net profit after tax	11.1	8.1

13. Audit of the financial report

The financial report is in the process of being audited.

14. The audit has not yet been completed

The financial report is not likely to be the subject of dispute or qualification.

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Comprehensive Income For the Year Ended 30 June 2010

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Comprehensive Income For the Year Ended 30 June 2010
Note Revenue from ongoing operations 2 Other revenues 2 Total revenues Employee expenses 3 Depreciation and amortisation expenses 3 Property and operating rental expenses 3 Contractor and consultant expenses Software licence expenses Hardware and software expenses Travel expenses Communication expenses Professional expenses Other expenses Total expenses Profit before income tax Income tax expense 4(b) Profit after income tax from ongoing operations Other comprehensive income Exchange difference on translation of foreign operations Other comprehensive income for the year Total comprehensive income for the year attributable to members of the parent Basic earnings (cents) per share for ongoing operations 15 Total basic earnings (cents) per share Diluted earnings (cents) per share for ongoing operations 15 Total diluted earnings (cents) per share	Consolidated Entity
	2010	2009
	$'000	$'000
	57,766 1,020	54,298 2,039
	58,786 (29,384) (3,913) (2,318) (1,757) (106) (2,882) (1,308) (698) (448) (1,890)	56,337 (29,045) (4,258) (2,485) (1,350) (309) (3,021) (1,421) (741) (926) (1,823)
	(44,704)	(45,379)
	14,082 (2,942)	10,958 (2,827)
	11,140	8,131
	94	(22)
	94	(22)
	11,234	8,109
	7.2	5.3
	7.2 7.2	5.3 5.3
	7.2	5.3

1

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Financial Position As at 30 June 2010

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Financial Position As at 30 June 2010
Note Current Assets Cash and cash equivalents 6 Receivables 7 Other current assets 8 Total Current Assets Non-Current Assets Plant, equipment & leasehold improvements 9 Intangible assets 10 Deferred tax assets 4 Total Non-Current Assets Total Assets Current Liabilities Payables 11 Current tax payable 4 Provisions 12 Unearned income Total Current Liabilities Non-Current Liabilities Provisions 12 Total Non-Current Liabilities Total Liabilities Net Assets Equity Share capital 13 Foreign currency translation reserve 14(a) Options granted reserve 14(b) Retained profits (accumulated losses) 14(c) Total Equity	Consolidated Entity
	2010	2009
	$'000	$'000
	23,450 8,178 2,817	20,518 7,016 1,961
	34,445	29,495
	3,441 27,497 1,075	3,588 29,012 196
	32,013	32,796
	66,458	62,291
	4,350 1,526 4,680 5,547	4,096 2,270 4,831 4,384
	16,103	15,581
	458	887
	458	887
	16,561	16,468
	49,897	45,823
	48,715 (407) 200 1,389	48,199 (501) 166 (2,041)
	49,897	45,823

2

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Changes in Equity For the Year Ended 30 June 2010

Consolidated Entity Note Balance as at 1 July 2008 Profit for the year Exchange differences on translation of foreign operations Total comprehensive income for the year Transactions with owners in their capacity as owners: Employee share plan 13 Options exercised 13 Employee share options Capital issued under dividend reinvestment plan 13 Share buy back 13 Dividends paid 5 Total transactions with owners in their capacity as owners Balance as at 30 June 2009 13 & 14 Consolidated Entity Note Balance as at 1 July 2009 Profit for the half-year Exchange differences on translation of foreign operations Total comprehensive income for the year Transactions with owners in their capacity as owners: Employee share plan 13 Options exercised 13 Employee share options Capital issued under dividend reinvestment plan 13 Share buy back 13 Dividends paid 5 Total transactions with owners in their capacity as owners Balance as at 30 June 2010 13 & 14	Consolidated Entity	Consolidated Entity	Consolidated Entity	Consolidated Entity
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	47,916 0 0	(342) 0 (22)	(5,588) 8,131 0	41,986 8,131 (22)
	0	(22)	8,131	8,109
	126 21 0 188 (52) 0	0 0 29 0 0 0	0 0 0 0 0 (4,584)	126 21 29 188 (52) (4,584)
	283	29	(4,584)	(4,272)
	48,199	(335)	(2,041)	45,823
	Consolidated Entity
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	48,199 0 0	(335) 0 94	(2,041) 11,140 0	45,823 11,140 94
	0	94	11,140	11,234
	130 117 0 308 (39) 0	0 0 34 0 0 0	0 0 0 0 0 (7,710)	130 117 34 308 (39) (7,710)
	516	34	(7,710)	(7,160)
	48,715	(207)	1,389	49,897

3

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Cash Flows For the Year Ended 30 June 2010

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Cash Flows For the Year Ended 30 June 2010
Note Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Income tax paid Net cash provided by operating activities Cash flows from investing activities Payment for acquisition of business Payment for plant and equipment Payment for capitalised research and development Net cash used in investing activities Cash flows from financing activities Proceeds from share issue 13 Payments for share buy back 13 Proceeds from options exercised 13 Dividends paid net of dividend re-investment Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of the year 6	Consolidated Entity
	2010	2009
	$'000	$'000
	60,509 (44,136) 615 (4,566)	60,901 (46,048) 927 (3,230)
	12,422	12,550
	0 (1,212) (1,103)	(7,465) (1,134) (1,003)
	(2,315)	(9,602)
	130 (39) 117 (7,383)	126 (52) 21 (4,396)
	(7,175)	(4,301)
	2,932	(1,353)
	20,518	21,871
	23,450	20,518

4

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Notes to the Financial Statements 30 June 2010

1 Statement of significant accounting policies

The preliminary financial report covers Hansen Technologies Ltd and controlled entities as a consolidated entity. Hansen Technologies Ltd is a company limited by shares, incorporated and domiciled in Australia.

The following is a summary of material accounting policies adopted by the consolidated entity in the preparation and presentation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

(a) Basis of preparation of the financial report

Compliance with IFRS Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards.

Historical Cost Convention

The financial report has been prepared under the historical cost convention.

(b) Principles of consolidation

The consolidated financial statements are those of the consolidated entity, comprising the financial statements of the parent entity and of all entities, which the parent has the power to control the financial and operating policies of, so as to obtain benefits from its activities.

The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using consistent accounting policies.

All inter-company balances and transactions, including any unrealised profits or losses have been eliminated on consolidation.

(c) Revenue

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Risks and rewards of ownership are considered passed to the buyer at the time of delivery of the goods to the customer. Revenue from the provision of services to customers is recognised upon delivery of the service to the customer.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

All revenue is stated net of the amount of goods and services tax (GST).

(d) Cash and cash equivalents

Cash and cash equivalents include cash on hand and at banks, and short term deposits with an original maturity of three months or less held at call with financial institutions.

(e) Plant, equipment & leasehold improvements

Cost and valuation

All classes of plant, equipment and leasehold improvements are stated at cost less depreciation.

Depreciation

The depreciable amounts of all fixed assets are depreciated on a straight-line basis over their estimated useful lives commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The useful livesforeachclass ofassets are:	The useful livesforeachclass ofassets are:	The useful livesforeachclass ofassets are:
	2010	2009
Plant, equipment & leasehold improvements: Leased plantand equipment:	2.5 to 12 years 2.5to12years	2.5 to 12 years 2.5to12years

5

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

(f) Leases

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and benefits incidental to ownership.

Finance Leases

Leases of fixed assets, where substantially all of the risks and benefits incidental to ownership of the asset, but not the legal ownership, are transferred to the consolidated entity are classified as finance leases. Finance leases are capitalised, recording an asset and liability equal to the present value of the minimum lease payments, including any guaranteed residual values. The interest expense is calculated using the interest rate implicit in the lease.

Leased assets are depreciated on a straight line basis over their estimated useful lives when it is likely the consolidated entity will obtain ownership of the asset, or over the term of the lease. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Operating Leases

Lease payments for operating leases are recognised as an expense on a straight line basis over the term of the lease.

(g) Intangibles

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the consolidated entity's share of net identifiable assets of the acquired entities at the date of acquisition.

Goodwill is not amortised but is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is carried at cost less accumulated impairment losses.

Trademark and licences

Trademark and licences are recognised at cost and are amortised over their estimated useful lives, which range from 5 to 10 years. Trademarks and licences are carried at cost less accumulated amortisation and any impairment losses.

Research and Development

Expenditure on research activities is recognised as an expense when incurred.

Expenditure on development activities is capitalised only when technical feasibility studies identify that the project will deliver future economic benefits and these benefits can be measured reliably. Capitalised development expenditure is stated at cost less accumulated amortisation. Amortisation is calculated using a straight-line method to allocate the cost of the intangible asset over its estimated useful life commencing when the intangible asset is available for use. Other development expenditure is recognised as an expense when incurred.

(h) Impairment

Assets with an indefinite useful life are not amortised but are tested annually for impairment in accordance with AASB 136. Assets subject to annual depreciation or amortisation are reviewed for impairment whenever events or circumstances arise that indicate that the carrying amount of the asset may be impaired. An impairment loss is recognised where the carrying amount of the asset exceeds its recoverable amount. The recoverable amount of an asset is defined as the higher of its fair value less costs to sell and value in use.

(i) Income tax

Current income tax expense or revenue is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities.

A balance sheet approach is adopted under which deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred tax asset or liability is recognised in relation to temporary differences arising from the initial recognition of an asset or a liability if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for temporary differences and unused tax losses only when it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

Tax Consolidation

The parent entity and all eligible Australian controlled entities have formed an income tax consolidated group under the tax consolidation legislation. The parent entity is responsible for recognising the current tax liabilities and the deferred tax assets arising in respect of tax losses, for the tax consolidated group. The tax consolidated group has also entered a tax funding agreement whereby each company in the group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.

6

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

(j) Provision

Provisions are recognised when the consolidated entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(k) Employee benefits

Liabilities arising in respect of wages and salaries, annual leave, long service leave and any other employee benefits expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled. All other employee benefit liabilities are measured at the present value of the estimated future cash outflow to be made in respect of services provided by employees up to the reporting date.

Defined contribution superannuation plan

The consolidated entity makes contributions to defined contribution superannuation plans in respect of employee services rendered during the year. These superannuation contributions are recognised as an expense in the same period when the employee services are received.

Share-based payments

The consolidated entity operates an employee share option plan and an employee share scheme. The fair value of the equity to which employees become entitled is measured at grant date and recognised as an expense over the vesting period, with a corresponding increase to an equity account. The fair value of shares is ascertained as the market bid price. The number of shares and options expected to vest is reviewed and adjusted at each reporting date such that the amount recognised for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest.

(l) Financial instruments

Classification

The consolidated entity classifies its financial instruments in the following categories: loans and receivables and financial liabilities. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its financial instruments at initial recognition.

Loans and Receivables

Loans and receivables are measured at fair value at inception and subsequently at amortised cost using the effective interest rate method.

Financial Liabilities

Financial liabilities include trade payables, other creditors and loans from third parties including inter-company balances.

(m) Foreign currencies translations and balances

Functional and presentation currency

The financial statements of each of the entities in the consolidated group are measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the consolidated entity’s functional and presentation currency.

Transactions and Balances

Transactions in foreign currencies of entities within the consolidated group are translated into functional currency at the rate of exchange ruling at the date of the transaction.

Foreign currency monetary items that are outstanding at the reporting date (other than monetary items arising under foreign currency contracts where the exchange rate for that monetary item is fixed in the contract) are translated using the spot rate at the end of the financial year.

Resulting exchange differences arising on settlement or re-statement are recognised as revenues and expenses for the financial year.

Entities that have a functional currency different to the presentation currency are translated as follows:

• Assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;

• Income and expenses are translated at actual exchange rates or average exchange rates for the period, where appropriate; and

• All resulting exchange differences are recognised as a separate component of equity.

Exchange differences arising on translation of foreign operations are transferred directly to the group's foreign currency translation reserve as a separate component of equity in the balance sheet.

7

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

(n) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cashflows are presented in the statement of cashflows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cashflows.

(o) Comparatives

Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures.

(p) Rounding amounts

The parent entity and the consolidated entity have applied the relief available under ASIC Class Order CO 98/0100 and accordingly, amounts in the consolidated financial statements and the directors' report have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar.

(q) New accounting standards and interpretations

A number of accounting standards and interpretations have been issued at the reporting date but are not yet effective. The directors have not yet assessed the impact of these standards or interpretations

2 Revenue

Revenues from continuing operations Revenue from sale of goods and services Other income: From operating activities Interest received Net foreign exchange gains / (losses) Other income Total other revenues Total revenue from continuing operations	Consolidated Entity	Consolidated Entity
	2010	2009
	$'000	$'000
	57,766	54,298
	57,766	54,298
	823 (259) 456	927 1,054 58
	1,020	2,039
	58,786	56,337

3 Profit from continuing operations

Note Profit from continuing operations before income tax has been determined after the following specific expenses: Employee benefit expenses Wages and salaries Superannuation costs Share based payments Total employee benefit expenses Depreciation of non-current assets Plant, equipment & leasehold improvements 9 Total depreciation of non-current assets Amortisation of non-current assets Plant and equipment under finance lease 9 Patents, contracts & software 10 Research and development 10 Total amortisation of non-current assets Property and operating rental expenses Rental charges Total property and operating rental expenses	Consolidated Entity	Consolidated Entity
	2010	2009
	$'000	$'000
	27,238 2,112 34	26,989 2,027 29
	29,384	29,045
	1,287	1,434
	1,287	1,434
	12 333 2,281	14 290 2,520
	2,626	2,824
	2,318	2,485
	2,318	2,485

8

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

4 Income tax

(a) Components of income tax expense: Current tax Deferred tax Under / (over) provision in prior years Total Income tax expense (b) Prima facie tax payable The prima facie tax payable on profit before income tax is reconciled to the income tax expense as follows: Prima facie income tax payable on profit before income tax at 30% Add/(less) tax effect of: Research and development allowances Non deductible share based payments Current year losses not brought to account Losses brought forward Non assessable income Under / (over) provision in prior years NZ deferred research and development expenditure utilised NZ deferred research and development expenditure recognised Investment allowance Prior year losses not brought to account Other non allowable items Income tax expense attributable to profit (c) Current tax liability Current tax relates to the following: Current tax liabilities / (assets) Opening balance Prior year under / (over) provision Income tax Tax payments (d) Deferred tax Deferred tax relates to the following: Deferred tax assets balance comprises: Difference in depreciation and amortisation of plant and equipment for accounting and income tax purposes Other payables Employee benefits Provisions Losses available for offset against future taxable income NZ deferred research and development expenditure recognised Other Deferred tax liabilities balance comprises: Research and development expenditure capitalised Other income not yet assessable Net deferred tax (e) Deferred income tax (revenue) / expense included in income tax expense comprises: Decrease / (increase) in deferred tax assets Decrease in deferred tax liabilities (f) Deferred tax assets not brought to account Capital losses	Consolidated Entity	Consolidated Entity
	2010	2009
	$'000	$'000
	3,680 (879) 141	2,992 (429) 264
	2,942	2,827
	4,224 (92) 10 0 0 (105) 141 (985) (527) (24) (79) 379	3,287 (107) 9 15 44 0 264 0 0 (39) (1,630) 984
	2,942	2,827
	2,270 141 3,680 (4,565)	2,244 264 2,992 (3,230)
	1,526	2,270
	24 303 1,193 0 228 527 20	17 341 1,142 2 161 0 43
	2,295 (1,146) (74)	1,706 (1,499) (11)
	(1,220)	(1,510)
	1,075	196
	(589) (290)	15 (444)
	(879)	(429)
	2,824	2,824
	2,824	2,824

9

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

5 Dividends

2010

A 3 cent per share fully franked final dividend was declared on 23 August 2010. The amount declared has not been recognised as a liability in the accounts of Hansen Technologies Ltd as at 30 June 2010.

2009

A 3 cent per share fully franked final dividend was paid on 2 October 2009.

A 2 cent per share fully franked interim dividend was paid on 29 March 2010.

Dividends provided for or paid during the year

• 3 cent per share final dividend paid 2 October 2009

• 1 cent per share final dividend paid 17 October 2008

• 2 cent per share interim dividend paid 29 March 2010

• 2 cent per share interim dividend paid 26 March 2009

Consolidated Entity	Consolidated Entity
2010	2009
$'000	$'000
4,621 0 3,089 0	0 1,527 0 3,057
7,710	4,584

6 Cash and cash equivalents

Current Cash at bank and on hand Term deposits

Consolidated Entity	Consolidated Entity
2010	2009
$'000	$'000
1,514 21,936	5,121 15,397
23,450	20,518

7 Receivables

Current Trade receivables Less: Provision for impairment Term and sundry debtors	Consolidated Entity	Consolidated Entity
	2010	2009
	$'000	$'000
	7,683 0	6,588 (13)
	7,683 495	6,575 441
	8,178	7,016

8 Other current assets

Current Prepayments Accrued revenue

Consolidated Entity	Consolidated Entity
2010	2009
$'000	$'000
1,134 1,683	1,089 872
2,817	1,961

10

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

9 Plant, equipment & leasehold improvements

Plant, equipment & leasehold improvements
Plant, equipment & leasehold improvements, at cost Accumulated depreciation Plant and equipment under finance lease, at cost Accumulated amortisation Total plant, equipment & leasehold improvements	Consolidated Entity
	2010	2009
	$'000	$'000
	14,686 (11,245)	16,175 (12,599)
	3,441	3,576
	3,566 (3,566)	3,566 (3,554)
	0	12
	3,441	3,588

(a) Reconciliations Reconciliations of the carrying amounts of plant, equipment & leasehold improvements at the beginning and end of the current financial year. Plant, equipment & leasehold improvements Carrying amount at 1 July 2009 Additions Disposals Depreciation expense Net foreign currency movements arising from foreign operation Carrying amount at 30 June 2010 Plant and equipment under finance lease Carrying amount at 1 July 2009 Amortisation expense Carrying amount at 30 June 2010	Consolidated Entity	Consolidated Entity
	2010	2009
	$'000	$'000
	3,576 1,212 (1) (1,287) (59)	3,299 1,740 (31) (1,434) 2
	3,441	3,576
	12 (12)	26 (14)
	0	12

10 Intangibles Goodwill, patents, contracts at cost Accumulated amortisation & impairment Software research and development, at cost Accumulated amortisation Total intangible assets Reconciliation of goodwill, patents and contracts at cost Opening amount Increase due to acquisition Closing amount Accumulated amortisation & impairment at beginning of year Amortisation of patents and contracts Amortisation adjustment Accumulated amortisation & impairment at end of year Reconciliation of software research and development at cost Opening amount Expenditure capitalised in current period Closing amount Accumulated amortisation at beginning of year Current year charge Accumulated amortisation at end of year
	Consolidated Entity
	2010	2009
	$'000	$'000
	28,928 (5,249)	28,928 (4,912)
	23,679	24,016
	24,724 (20,906)	23,621 (18,625)
	3,818	4,996
	27,497	29,012
	28,928 0	17,935 10,993
	28,928	28,928
	(4,912) (333) (4)	(4,625) (290) 3
	(5,249)	(4,912)
	23,621 1,103	22,618 1,003
	24,724	23,621
	(18,625) (2,281)	(16,105) (2,520)
	(20,906)	(18,625)

11

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

11 Payables

Payables
Current Trade payables Other payables	Consolidated Entity
	2010	2009
	$'000	$'000
	941 3,409	863 3,233
	4,350	4,096

12 Provisions

Current Employee benefits Onerous lease Other Non-current Employee benefits Onerous lease (a) Aggregate employee benefits liability (b) Number of employees at year end Reconciliations Movements in provisions other than employee benefits: Provisions Onerous Lease - current Carrying amount at beginning of year Provisions made during the year Provisions released during the year Carrying amount at end of year Provisions Onerous Lease - non current Carrying amount at beginning of year Provisions made during the year Provisions released during the year Carrying amount at end of year Other- current Carrying amount at beginning of year Net provisions(payments) made during the year Carrying amount at end of year	Consolidated Entity	Consolidated Entity
	2010	2009
	$'000	$'000
	4,253 378 49	4,101 523 207
	4,680	4,831
	273 185	248 639
	458	887
	4,526	4,349
	264	296
	523 0 (145)	0 523 0
	378	523
	639 0 (454)	0 639 0
	185	639
	207 (158)	155 52
	49	207

• The onerous lease arose upon the acquisition of the Peace Software business due to vacant office space not being fully utilised.

12

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

13 Contributed Equity

a) Issued and paid up capital

Ordinary shares, fully paid

Consolidated Entity	Consolidated Entity
2010	2009
$'000	$'000
48,715	48,199

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

b) Movements in shares on issue

Balance at beginning of the financial year Shares issued under dividend reinvestment plan Shares issued under employee share plan Options exercised Share buy back Balance at end of the financial year

Consolidated Entity	Consolidated Entity	Consolidated Entity	Consolidated Entity
2010	2010	2009	2009
No of Shares	$'000	No of Shares	$'000
153,575,594 477,358 216,060 645,000 (77,111)	48,199 308 130 117 (39)	152,654,389 580,530 359,982 115,000 (134,307)	47,916 188 126 21 (52)
154,836,901	48,715	153,575,594	48,199

14 Reserves and retained earnings Note Foreign currency translation reserve 14 (a) Options granted reserve 14 (b) Retained profits (Accumulated losses) 14 (c) (a) Foreign currency translation reserve This reserve is used to record the exchange differences arising on translation of a foreign entity. Movements in reserve Balance at beginning of year Movement during the year Balance at end of year (b) Options granted reserve This reserve is used to record the fair value of options issued to employees as part of their remuneration. Movements in reserve Balance at beginning of year Movement during the year Balance at end of year (c) Retained profits (Accumulated losses) Balance at the beginning of year Dividends paid Other comprehensive income Net profit attributable to members of Hansen Technologies Ltd Balance at end of year
	Consolidated Entity
	2010	2009
	$'000	$'000
	(407)	(501)
	200	166
	1,389	(2,041)
	(501) 94	(479) (22)
	(407)	(501)
	166 34	137 29
	200	166
	(2,041) (7,710) (94) 11,234	(5,588) (4,584) 22 8,109
	1,389	(2,041)

13

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

15 Earnings per share

Reconciliation of earnings used in calculating earnings per share: Basic earnings - ordinary shares Diluted earnings - ordinary shares Weighted average number of ordinary shares used in calculating basic earnings per share: Number for basic earnings per share - ordinary shares Number for diluted earnings per share - ordinary shares Basic earnings (cents) per share from continuing operations Total basic earnings (cents) per share Diluted earnings (cents) per share from continuing operations Total diluted earnings (cents) per share	Consolidated Entity	Consolidated Entity
	2010	2009
	$'000	$'000
	11,140	8,131
	11,140	8,131
	2010	2009
	no. shares	no. shares
	154,359,555	152,973,482
	155,947,884	154,597,002
	Centsper share	Centsper share
	7.2	5.3
	7.2 7.2	5.3 5.3
	7.2	5.3

Classification of securities as potential ordinary shares

The securities that have been classified as potential ordinary shares and included in diluted earnings per share only, are options outstanding under the Employee Share Option Plan.

16 Parent entity details

Summarised presentation of the parent entity, Hansen Technologies Ltd, financial statements: (a) Summarised statement of financial position Assets Current assets Non�current assets Total assets Liabilities Current liabilities Non�current liabilities Total liabilities Net assets Equity Share capital Retained earnings Share based payments reserve Total equity (b) Summarised statement of comprehensive income Profit for the year Other comprehensive income for the year Total comprehensive income for the year	Parent Entity	Parent Entity
	2010	2009
	$	$
	69 44,542	65 48,669
	44,611	48,734
	1,487 3,821	2,657 4,257
	5,308	6,914
	39,303	41,820
	48,715 (9,612) 200	48,199 (6,545) 166
	39,303	41,820
	4,641 0	4,597 0
	4,641	4,597

(c) Parent entity guarantees

Hansen Technologies Ltd, being the parent entity, has not entered into any guarantees in relation to debts of its subsidiaries.

14

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

17 Segment Information

a) Description of segments

Business segments

The consolidated entity comprises the following main business segments, based on the consolidated entity's management reporting system:

• Billing : Represents the sale of billing applications and the provision of consulting services in regard to billing systems.

• IT Outsourcing : Represents the provision of various IT outsourced services covering facilities management, systems and operations support, network services, telehousing and business continuity support.

Other : Represents software and service provision including superannuation administration.

Geographical segments

In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets are based on the geographical location of the assets.

• The consolidated entity's business segments operate geographically as follows: Australia : Sales and services in all Australian states and territories North America : Sales and services throughout North America Europe : Sales and services throughout Europe

• Other : Sales and services throughout Asia and New Zealand

b) Segment information

2010 Segment revenue Total segment revenue Segment revenue from external source Segment result Total segment result Segment result from external source Total segment assets Total segment liabilities 2009 Segment revenue Total segment revenue Segment revenue from external source Segment result Total segment result Segment result from external source Total segment assets Total segment liabilities

2010 Financial Year	2010 Financial Year	2010 Financial Year	2010 Financial Year
Billing	Outsourcing	Other	Total
$'000	$'000	$'000	$'000
45,311	7,292	5,163	57,766
45,311	7,292	5,163	57,766
11,878	3,460	1,779	17,117
11,878	3,460	1,779	17,117
29,271	1,672	1,198	32,141
13,883	1,200	851	15,934

2009 Financial Year	2009 Financial Year	2009 Financial Year	2009 Financial Year
Billing	Outsourcing	Other	Total
$'000	$'000	$'000	$'000
42,018	6,844	5,436	54,298
42,018	6,844	5,436	54,298
10,397	3,157	2,456	16,010
10,397	3,157	2,456	16,010
33,089	1,380	1,282	35,751
13,195	1,056	862	15,113

i) Reconciliation of segment revenue from external source to the consolidated statement of comprehensive income

Segment revenue from external source Other revenue Interest revenue Total revenue	2010	2009
	$'000	$'000
	57,766 197 823	54,298 1,112 927
	58,786	56,337

Revenue from external customers attributed to individual countries is detailed as follows:

Australia North America Europe Other Total revenue	2010	2009
	$'000	$'000
	34,413 13,235 9,626 492	32,361 10,797 9,512 1,628
	57,766	54,298

15

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

ii) Reconciliation of segment result from the external source to the consolidated statement of comprehensive income

Segment result from external source Interest revenue Interest expense Depreciation & amortisation Other expense Total profit before income tax	2010	2009
	$'000	$'000
	17,117 823 (12) (269) (3,578)	16,010 927 0 (311) (5,668)
	14,082	10,958

iii) Reconciliation of segment assets to the consolidated statement of financial position

Segment assets Unallocated assets Total assets	2010	2009
	$'000	$'000
	32,141 34,317	35,751 26,540
	66,458	62,291

Non-current assets attributed to individual countries is detailed as follows:

Australia North America Europe Other Total non-current assets	2010	2009
	$'000	$'000
	46,847 1,553 3,163 14,895	42,095 3,828 3,721 12,647
	66,458	62,291

iv) Reconciliation of segment liabilities to the consolidated statement of financial position

Segment liabilities Unallocated liabilities Total liabilities	2010	2009
	$'000	$'000
	15,934 627	15,113 1,355
	16,561	16,468

16